Interim Results

Web Shareshop (Holdings) PLC 07 October 2002 Announcement: 7 October 2002 - Embargoed until 4.00 pm Web Shareshop (Holdings) plc Chairman's statement Results The Board announces the Group's results for the year ended 31 July 2002 which record an operating loss of £360,027, offset by net interest of £10,597, leaving a loss before taxation for the period of £349,430. For the first six months to January 2002, this loss, as disclosed in the half year statement, amounted to £295,000; the balance of £54,000 reflects the reduction in overheads net of interest received. During the period January to July 2002, the Company supported three young investee companies with subscriptions totaling £372,500. At 31 July 2002, the company had £125,000 cash in the bank, net current assets of £484,000 and net assets of £485,000. The investments are held in the books at cost; no profits were taken during the period. Current trading Since 31 January 2002, the Board has reduced the ongoing overheads, including all regulatory costs, to approximately £120,000 per annum. During this time, it has focused on the development of the business of underwriting small company new issues and initial public offerings and supported the following: • Franconia Minerals Corporation, a mineral exploration company registered in Alberta Canada whose shares are quoted on OFEX. The company is prospecting for zinc and platinum in the United States. £112,500 subscribed. • Hidefield plc, a company which seeks to invest in undervalued mineral exploration projects. The shares are quoted on AIM. £160,000 subscribed. • Southern African Resources plc, an AIM quoted company seeking mineral exploration projects in southern Africa and which so far has invested in one platinum project. £100,000 subscribed. It is not the Group's intention to hold these investments for the long term, but to seek an early opportunity to realise a profit and so to establish a cash pool to underwrite further ventures as they become available. The stock market volatility and nervousness during 2002 has so far not allowed the Board to realise any profits. In the opinion of the Board, the conditions may not be right until the early part of 2003, but will keep the matter under constant review and act as soon as circumstances permit. At all times the Board will seek to maintain a risk profile consistent with the Group's resources and declared objectives. Based on mid market quotations, at 31 July 2002 the net assets per share were 5.7 pence, fully diluted. Funding Because of the cash limitations, the Board has sought and received approval from Members to raise further funds by way of one or more placings. After an immediate rise in the share price following an announcement on 15 July of a net asset value of 5.28 pence per share, fully diluted, market sentiment has been such that the Company's share price has since drifted down. Accordingly, the Board has decided to delay any such placing until a price of at least 5 pence per share can be achieved. Consolidated Profit and Loss Account for the year ended 31 July 2002 Year ended 18 month 31 July period 2002 ended 31 July 2001 £ £ Turnover 429 3,385 Cost of sales - (824) Gross Profit 429 2,561 Administrative expenses (360,456) (1,184,108) Operating loss on ordinary activities (360,027) (1,181,547) Interest receivable 10,609 50,456 Interest payable (12) (223) Loss on ordinary activities before taxation (349,430) (1,131,314) Tax on loss on ordinary activities - - Loss on ordinary activities after taxation (349,430) (1,131,314) Retained loss for the year (349,430) (1,131,314) Loss per share Basic and diluted (1.5p) (6.5p) Consolidated Balance Sheet as at 31 July 2002 Year ended 18 month 31 July period 2002 ended 31 July 2001 £ £ Fixed assets Intangible assets - 9,000 Tangible assets 500 31,930 500 40,930 Current assets Debtors 15,393 62,454 Trading investments 372,500 - Cash at bank and in hand 125,066 725,097 512,959 787,551 Creditors: Amounts falling due within one year (28,232) (155,074) Net current assets 484,727 632,477 Total assets less current liabilities 485,227 673,407 Capital and reserves Called-up share capital 262,291 197,791 Share premium account 1,324,515 1,227,765 Profit and loss account (1,525,989) (1,176,559) Merger reserve 424,410 424,410 Shareholders' funds - equity interest 485,227 673,407 Company Balance Sheet as at 31 July 2002 Year ended 18 month 31 July period 2002 ended 31 July 2001 £ £ Fixed assets Investments 1,427,573 144,140 Current assets Debtors 161,017 1,283,433 Net current assets 161,017 1,283,433 Total assets less current liabilities 1,588,590 1,427,573 Capital and reserves Called-up share capital 262,291 197,791 Share premium account 1,324,515 1,227,765 Profit and loss account 1,784 2,017 Shareholders' funds - equity interests 1,588,590 1,427,573 Consolidated Cash Flow Statement for the year ended 31 July 2002 Year ended 18 month 31 July period 2002 ended 31 July 2001 £ £ Net cash outflow from operating activities (694,173) (1,148,747) Returns on investments and servicing of finance 10,597 50,233 Capital expenditure and financial investment 15,000 (69,465) Cash outflow before management of liquid (668,576) (1,167,979) resources and financing Management of liquid resources 585,562 (700,562) Financing 161,250 1,432,016 Increase/(Decrease) in cash in the year/period 78,236 (436,525) Copies of the report and financial statements are available from the Company Secretary at the registered office: 123 Goldsworth Road, Woking, Surrey, GU21 1LR email: info@webshareshop.com END This information is provided by RNS The company news service from the London Stock Exchange GAM

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