Interim Results
Toad PLC
31 July 2000
Chief Executive's Statement
I am delighted to report our interim results for the six months to 22
June 2000. The first six months of the year have again confirmed the
excellent progress made by TOAD over the last three years. Profit is up
37% to £1.37 million (6 months to June 1999: £1.0 million) and group
turnover up 5% to £16.9 million (6 months to June 1999: £16.2 million).
6 months to 6 months to
June 2000 June 1999
£'000 £'000
Turnover 16,907 16,157
Operating profit 1,703 1,301
Gross margin 43.9% 42.9%
PBT 1,374 1,002
During the period we made important changes to the business that the
directors believe will have a long-term impact on our business. These
changes highlight the diversity of the company's product range and our
ability to absorb new products and services into our existing service and
distribution structure.
www.toade.com the launch of toade.com has been a tremendous success. The
site has received universal approval from both the general
public visiting the site and from companies providing
internet based motoring services who require high quality
and credible partners. We have agreed a number of affinity
partnerships to date with major motoring portals such as
jamjar.com, autotrader.co.uk, autohit.com and
carmarkets.co.uk. In addition a number of new affinity
partnerships are currently under negotiation.
Although the site is in its first few months of
development approximately 20,000 people are visiting the
site per month and online sales are encouraging.
Due to the success of the site we have brought forward the
development of our online installation diary service that
will enable the end user to access our mobile engineer's
diaries and make a booking online. We now expect this to
be available from November this year. Obviously this will
be a major development for the company, especially in the
area of insurance reinstatement work where we intend to
work in conjunction with the major insurance companies to
move the complex audio reinstatement booking service
online.
In addition to the development of an online sales service
to the consumer we have recognised the need for easier
access to information on the company for our investors. As
a result we have today launched a new website
www.toadplc.com, specifically aimed at investor relations.
The site will offer the latest share price and trading
information, director's biographies, press releases, the
latest results in a downloadable format.
TOAD M3 During the period we successfully launched our new multi-
media range of navigation, video and TV screens for the
car. This is a new area of the market and one that the
director's believe has tremendous growth potential. We aim
to be a major player in this market and we were delighted
that one of our new M3 systems, the Video Traveller - an
easy to use TV screen and video player in a bag that plugs
into a car's cigarette lighter and enables passengers to
watch a movie on the move, was recently voted 'Car
Accessory of the Year' by the leading motoring magazine
Auto Express.
Interface cables During the period we took a controlling stake in ITI
(Integrated Technologly International Ltd) a start-up
company developing and distributing audio interface cables
that link after-market CD and MD changers to the car
manufacturers' original equipment radio head units. To
date we have invested £180,000 in ITI and anticipate a
further £20,000 in the next 12 months.
AUTOGLASS The alliance with AUTOGLASS went operational in May this
year and the benefits in terms of increased turnover will
now impact on the business and make a direct contribution
to the group's turnover and profitability in the second
half of the year.
During the period we continued to refocus a number of areas of the
business away from the less profitable sectors, such as retail and low
margin vehicle security, into sectors with higher retained profit such as
multi-media and telematics installation services. Although this had a
small impact on turnover, it has put us in a more robust position in
terms of future potential growth.
Development of the 'Spacetrac' system by Eagle Eye Tech. in America
continues and as announced in our March results, we are told to expect
delivery of the product in 2001. In addition to this we are pursuing
product opportunities in the broader vehicle management applications
market.
The NCP project continues to be progressed and NCP expect the 'vehicle
security and audio whilst you park' trial project to go live in
September.
We are delighted to announce that we have signed a Heads of Agreement
with Carglass S.A, which subject to a formal contract being signed, will
enable us to launch an internet driven audio, security and multi-media
service in Paris at the end of the year. Carglass S.A will initially have
a 20% stake in the proposed joint venture, rising to 30% in the third
year when certain performance targets are met.
It is planned that the new joint venture will operate under the toade.com
name, with toade.com display terminals placed in all of Carglass's 39
Paris branches; a call centre, mobile installation service and warehouse
operating out of Carglass's existing facilities and Carglass's sales
force promoting the audio, security and multi-media services to their
existing customer database. The director's estimate that Toad's potential
investment will amount to approximately £300,000 and that it represents
an excellent opportunity for the company, providing TOAD with a blueprint
for our expansion into other European countries.
The Vehicle Technology and In-Car Services activities continue to perform
well and current trading in the first three weeks of July is in-line with
market expectations. The director's look forward to the next six months
developing and growing the UK business and preparing for the launch into
Europe.
Issued on behalf of TOAD plc
By Tony Edwards
ANTHONY EDWARDS PUBLICITY
TEL 01932 336161
FAX 01932 336131
Mobile 041-002 5957
Consolidated Profit & Loss Account
----------------------------------
(Unaudited) (Unaudited) Year Ended
Six Months Six Months 22 December 1999
ended ended
22 June 2000 22 June 1999
£'000 £'000 £'000
Turnover
Ongoing operations 16,708 16,157 31,590
Acquisitions 199 0 349
16,907 16,157 31,939
Cost of sales
Ongoing operations (9,341) (9,223) (18,234)
Acquisitions (147) 0 (174)
Gross profit 7,419 6,934 13,531
Other operating expenses (5,716) (5,633) (10,985)
Operating profit
Ongoing operations 1,760 1,301 2,451
Acquisitions (57) 0 95
1,703 1,301 2,546
Profit on disposal of
fixed assets 8 12
Interest payable and similar
charges (337) (299) (726)
Profit on ordinary activities
before taxation 1,374 1,002 1,832
Taxation (50) (100) 125
Profit on ordinary activities
after taxation 1,324 902 1,957
Minority interests 28 0 0
Profit attributable to members
of the parent company 1,352 902 1,957
Earnings per share - basic 2.0p 1.40p 3.01p
Earnings per share - diluted 1.77p 1.13p 2.63p
Consolidated Balance Sheet
--------------------------
(Unaudited) (Unaudited) Year Ended
Six Months Six Months 22 December 1999
ended ended
Notes 22 June 2000 22 June 1999
£'000 £'000 £'000
Fixed assets
Intangible assets 1,411 1,537 1,452
Tangible assets 2,751 3,058 2,825
4,162 4,595 4,277
Current assets
Stocks 3,409 3,985 3,772
Debtors 6,421 5,375 5,271
Cash at bank and in hand 1,437 959 1,658
11,267 10,319 10,701
Creditors: amounts falling
due within one year (9,559) (10,293) (9,261)
Net current assets 1,708 26 1,440
Total assets less current
liabilities 5,870 4,621 5,717
Creditors: amounts falling
due after more than one year (2,397) (3,182) (3,615)
Minority interests 28 0 0
Net assets 3,501 1,439 2,102
Capital and reserves
Called-up share capital 7,484 6,846 6,876
Share premium account 11,350 10,373 10,450
Share capital to be issued 1,190 3,043 2,651
Profit & loss account (16,523) (18,823) (17,875)
Shareholders' funds
Equity 2,722 1,439 1,323
Non-equity 779 779
2 3,501 1,439 2,102
Consolidated Cash Flow Statement
--------------------------------
(Unaudited) (Unaudited) Year Ended
Six Months Six Months 22 December 1999
ended ended
Notes 22 June 2000 22 June 1999
£'000 £'000 £'000
Net cash inflow from 3 1,064 1,248 2,299
operating activities
Returns on investments
and servicing of finance
Interest payable and similar
charges (337) (299) (954)
Taxation
UK corporation tax received
/(paid) 14 0 (157)
Capital expenditure and
financial investment
Purchase of tangible fixed
assets (119) (652) (780)
Sale of tangible fixed assets 48 157 354
(71) (495) (426)
Acquisitions and disposals
Purchase of subsidiary
undertakings (2,590) (2,590)
Purchase of Foxguard and Code
Alarm business (331)
0 (2,590) (2,921)
Cash inflow/(outflow)
before financing 670 (2,136) (2,159)
Financing
Issue of shares (net of expenses) 8 795 795
Net movement in short term borrowings (800) 1,059 1,059
Net movement in long term borrowings 2,128 2,406
Repayment of principal under finance
leases (67) (71) (142)
(859) 3,911 4,118
(Decrease)/increase in cash in
the period 4 (189) 1,775 1,959
Notes to the interim statement
1 Basis of preparation
The interim statement has been prepared on the basis of the accounting
policies set out in the group's statutory accounts. The financial
information on the group does not constitute statutory accounts and is not
audited.
A copy of the group's 1999 statutory accounts has been filed with the
Registrar of Companies: the Auditors' opinion on those accounts was
unqualified.
The interim statement for the six months ended 22 June 2000 was approved
by the directors on 31 July 2000
2 Reconciliation of movements in shareholders' funds
(Unaudited) (Unaudited)
Six months Six months Year ended
ended ended 22 December
22 June 22 June 1999
2000 1999
£'000 £'000 £'000
Net profit for the period 1,352 902 1,957
Goodwill written off 0 (20) (127)
Shares issued 1,508 2,252 2,359
Shares to be issued (1,461) (700) (1,092)
Net movement in
shareholders funds 1,399 2,434 3,097
Opening shareholders' funds 2,102 (995) (995)
Closing shareholders' funds 3,501 1,439 2,102
3 Reconciliation of operating profit to net cash flow
from operating activities
(Unaudited) (Unaudited)
Six months Six months Year ended
ended ended 22 December
22 June 22 June 1999
2000 1999
£'000 £'000 £'000
Operating profit 1,703 1,301 2,546
Depreciation of tangible fixed assets 153 203 369
Amortisation of intangible fixed assets 42 20 80
Write off goodwill 25
Increase in working capital balances (834) (276) (721)
Net cash inflow from operating activities 1,064 1,248 2,299
4 Reconciliation of net cash flow to movement in net debt
(Unaudited) (Unaudited)
Six months Six months Year ended
ended ended 22 December
22 June 22 June 1999
2000 1999
£'000 £'000 £'000
(Decrease)/increase
in cash in the period (189) 1,775 1,959
Cash outflow/(inflow) from
(decrease)/increase in net debt 867 (3,116) (3,095)
Changes in net debt
resulting from cash flows 678 (1,341) (1,136)
New finance leases (311) (324)
Movement in net debt in the period 678 (1,652) (1,460)
Net debt at start of period (7,585) (6,125) (6,125)
Net debt at end of period (6,907) (7,777) (7,585)
5 Dividend
The directors have not declared an interim dividend
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