Half-yearly Report
17 August 2010
Totally Plc
("Totally" or "the Company")
Half-yearly results for the six month period ended 30 June 2010
Totally Plc (AIM: TLY), the AIM quoted publisher and digital marketing services
provider announces its half-yearly results for the six month period ended 30
June 2010.
Summary
- Group turnover of £0.89 million (2009 as restated: £0.90 million)
- EBITDA of £84,000 (2009 as restated: profit £116,000)
- Operating profit of £73,000 (2009 as restated: profit £98,000)
- Profit Before Tax of £63,000 (2009 as restated: profit £88,000)
- Upgraded proprietary content management system 'Pelorous' released
For further information:
Totally Plc
Daniel Assor T: 020 7692 6929
Chief Executive Officer
Merchant Securities Limited
Simon Clements / Virginia Bull T: 020 7628 2200
Chairman's Statement
I am pleased to present the results for the six months ended 30 June 2010.
During the period the Group made an operating profit of £73,000 (2009 as
restated: £98,000) and a profit before taxation of £63,000 (2009 as restated: £
88,000) on turnover of £0.89 million (2009 as restated: £0.90 million).
Although there has been a slight reduction in turnover in comparison with the
same period last year, the Company has performed in accordance with
management's expectations in the first half of 2010. The board is pleased that
the Company has managed to maintain its financial performance, particularly
with the backdrop of the recent economic uncertainty. Such uncertainty has
adversely affected many industrial sectors, so for a niche company like Totally
to remain both profitable and to have accurately predicted its own performance
is gratifying.
The Company has made limited investments into new products, services and staff
during the first half of 2010 and intends to maintain that level of investment
in the second half of the financial year. The board is confident that it can
continue to maintain the restricted level of investment without affecting
profits for the full financial year.
Dr Michael Sinclair
Non-Executive Chairman
17 August 2010
Chief Executive's Operational Review
In the last quarter of 2008 the board introduced a series of operational
efficiencies designed to reduce overall group costs in preparation for an
expected reduction in group revenues as a consequence of the turmoil in the
wider economy. Like so many other companies, the board had expected a drastic
reduction in revenues during 2009, looking forward to a slight improvement in
2010. Whilst 2009 revenues increased the current speculation regarding a
further worsening of the economy during the second half of the year and into
2011 has resulted in the board maintaining a tight control on its spending and
investment. The board does not believe, however, that the continuation of the
Company's restricted spending will have any effect on the business and it feels
that the efficiencies instigated in 2008 will lead to a greater visibility of
revenue generation in the future.
Software Development and Digital Marketing Division (Totally Communications)
Revenues of £350,000 (2009: £357,000) were achieved during the period under
review. New software development contracts were secured with the Health
Foundation and Solar Century.
The Health Foundation is an independent charity working to achieve high quality
for everyone. They aim to achieve this by creating space for people, teams,
organizations and systems to make lasting improvements to health services.
Solar Century is a leading solar energy company specialising in the
installation of solar panels and photovoltaic systems. It works with Commercial
Developers, Housing Developers and Public Sector organisations.
Despite the continued economic uncertainty in the wider economy, committed
divisional revenues for the remainder of 2010 suggest that an improvement on
like for sales on 2009 will be achieved.
Publishing division (Jewish News and Media Group)
Revenues of £544,000 (2009 as restated: £546,000) were achieved during the
period under review.
Whilst the regional press advertising market remains volatile current committed
divisional revenues for the remainder of 2010 indicate that a stable year on
year performance for 2010 will be achieved.
The management team are investigating new product launches for the 2nd half of
2010 and into 2011 including an online property portal and a new exhibition to
sit alongside the annual Wedding show which was launched in 2009.
The revenue impact of these initiatives is expected to occur in 2011.
Daniel Assor
Chief Executive Officer
16 August 2010
Consolidated Income Statement
For the six months ended 30 June 2010
As Restated
Six months ended Six months ended Year
30 June 2010 30 June 2009 ended
31
December
2009
(unaudited) (unaudited) (audited)
£000 £000 £000
Group turnover 894 903 1,758
Cost of sales (234) (184) (381)
Gross profit 660 719 1,377
Administrative expenses (576) (603) (1,204)
Profit before interest, tax,
depreciation and amortisation
84 116 173
Depreciation (1) (7) (5)
Amortisation (10) (11) (24)
Operating profit 73 98 144
Finance costs (10) (10) (19)
Profit before taxation 63 88 125
Taxation - - 16
Profit for the year attributable
to equity shareholders
63 88 141
Earnings per share (pence)
Basic 0.001p 0.001p 0.002p
Diluted 0.0005p 0.0005p 0.001p
Consolidated Statement of Changes in Equity
For the six months ended 30 June 2010
Period to 30 June 2010 Share Profit and Equity
premium loss shareholders
Share Other
account account funds
Capital reserve
£000 £000 £000 £000 £000
At 1 January 2010 1,124 3,353 - (4,909) (432)
Credit on issue of share - - - 3 3
options
Profit for the period - - - 63 63
At 30 June 2010 1,124 3,353 - (4,843) (366)
Balance sheet
As at 30 June 2010
As at
As at As at 31 December
30 June 2010 30 June 2009 2009
(unaudited) (unaudited) (audited)
Assets
Non-current assets
Intangible fixed assets 52 35 60
Tangible fixed assets 3 9 4
55 44 64
Current assets
Trade and other receivables 325 241 266
Cash and cash equivalents 25 32 -
350 273 266
Total assets 405 317 330
Current liabilities
Trade and other payables (278) (222) (321)
Borrowings - financial liabilities (493) (583) (441)
(771) (805) (762)
Total liabilities (771) (805) (762)
Net liabilities (366) (488) (432)
Shareholders' equity
Called up share capital 1,124 1,124 1,124
Share premium account 3,353 3,353 3,353
Translation reserve - - -
Retained earnings (4,843) (4,965) (4,909)
Equity Shareholders Deficit (366) (488) (432)
Cash Flow Statement
For the six months ended 30 June 2010
Six months ended
30 June 2009
Six months ended Year ended 31
30 June 2010 December 2009
(unaudited) (unaudited) (audited)
£000 £000 £000
Net cash outflow from operating
activities (note 4)
(15) 10 144
R&D tax credit - - 16
Net cash (used in)/generated from
operating activities
(15) 10 160
Cash flows from investing
activities
Purchase of non-current assets - (4) (2)
Purchase of intangible assets (2) - (33)
Net cash utilised by investing (2) (4) (35)
activities
Cash (outflow)/inflow before (17) 6 125
financing
Cash flows from financing
activities
Interest paid (10) (10) (19)
Net cash utilised from financing (10) (10) (19)
activities
Net decrease in cash and cash (27) (4) 106
equivalents
Cash and cash equivalents at (441) (547) (547)
beginning of period
Cash and cash equivalents at end (468) (551) (441)
of period
Notes to the Interim Results
1.Basis of preparation
Theinterim report and accounts for the six months ended 30 June 2010 has been
prepared inaccordance with the Disclosure and Transparency Rules of the
Financial Services Authority and with IAS 34 Interim financial reporting as
adopted by the European Union. The interim report and accounts should be read
in conjunction with the Group's 2009 Annual Report and Accounts which have been
prepared in accordancewith IFRSs as adopted by the European Union.
Theinterim report and accounts have been prepared on the basis of the
accounting policies set out in theGroup's 2009 Annual Report and Accounts. The
interim report and accounts do not comprise statutory accounts within the
meaning of section 434 of the Companies Act 2006. The interim accounts were
approved bythe Board of Directors on 16 August 2010. The results for the six
months to 30 June 2010 and the comparative results forsix months to 30 June
2009 are unaudited. The comparative figures for the year ended 31 December 2009
do not constitute the statutory financial statements for that year. Those
financial statements have been delivered to the Registrar of Companies and
include the auditor's report which was unqualified and did not contain a
statement either under Section 237(2) or Section 237(3) of theCompanies Act
1985.
Change in revenue recognition policy
There has been a change in the revenue recognition policy in the financial year
ended 31 December 2009, and consequently the results of this year have been
restated. The board has reviewed the accounting policy specifically with
reference to publications, where advertising revenue is generated both via
magazine advertising (print media) and online advertising. The past policy was
to recognise revenue on the earliest publication date, whether this was online
or as published via print media. The new policy is to recognise revenue on the
latest publication date, whether this is online or published via print media.
The change in policy reflects the uncertainty and subjectivity in dividing
advertising income between online and print media. The new policy provides more
relevant and reliable financial information.
The impact of the prior year adjustment on the Consolidated Statement of
Comprehensive Income has been to increase the revenue and profit reported in
the interim statement of 2009 by £48,000. There has been no impact on the tax
credit.
Disclosure of impact of new accounting standards
The following standards, amendments and interpretations to published standards
were mandatory for the financial year beginning 1 January 2010:
Revisions to IFRS 3, Business Combinations and IAS 27, Consolidated and
Separate Financial Statements issued in January 2008. These include
consequential amendments to IAS 28 and IAS 31. Under IFRS 3 (Revised) all
payments to purchase a business are recorded at fair value at the acquisition
date, with contingent payments classified as debt subsequently re-measured
through the income statement. Also, all acquisition related costs are expensed.
The revisions also change the accounting for non-controlling (minority)
interests and changes therein. On adopting IFRS 3 (Revised) an immaterial
amount of acquisition costs held on the balance sheet relating to acquisition
activity were written off. No businesses were purchased during the period ended
30 June 2010.
Within IFRS Annual Improvements 2009 there was a revision to IFRS 8 which
amended the requirement to present total assets and liabilities by segment.
Following this amendment segment disclosure of assets and liabilities are only
required when they are reviewed in total by the Chief Operating Decision Maker
(CODM). Whilst the CODM (the Board) reviews certain asset and liability
categories, a review of total assets and liabilities is not performed.
Segmental disclosures have therefore been amended accordingly.
Amendment to IAS 39 Financial Instruments: Recognition and Measurement:
Eligible Hedged Items and Amendment to IAS 39 Reclassification of Financial
Assets: Effective Date and Transition
IFRIC 17, Distributions of Non-cash Assets to Owners
Amendment to IFRIC 9 and IAS 39, Embedded Derivatives
Amendment to IFRS 2, Group Cash-settled Share-based Payment Transactions
Revised IFRS 1, First Time Adoption of IFRS and Amendments to IFRS 1,
Additional Exemptions for First-time adopters
2. Earnings per share
The basic earnings per share has been calculated by dividing the retained profit
for the period of £63,000 (2009 as restated: £88,000 profit) by the weighted
average number of ordinary shares of 91,947,934 (2009: 91,947,934) in issue
during the period. The diluted earnings per share for 2010 is based on a profit
of £63,000 (2009 as restated: £88,000 profit) and by a weighted average number
of 91,947,934 ordinary shares (2009: 91,947,934 ordinary shares), 16,943,333
outstanding options (2009: 16,943,333 outstanding options) and 100,213,012
warrants (2009: 100,213,012 outstanding warrants).
3.Dividends
No dividend is proposed for the six months ended 30 June 2010.
4. Cash flows utilised in operating activities for the six months to 30 June
2010
Six months As Restated Six
ended 30 June months ended 30 June
2010 2009 Year ended 31
December 2009
(unaudited) (unaudited) (audited)
£000 £000 £000
Cash inflow from operating
activities
Profit from continuing 73 88 144
activities
Adjustments for:
Equity settled share based 3 9 12
payment
Depreciation, amortisation 11 18 29
and impairment
Operating cash flow prior 87 115 185
to working capital
Decrease/(Increase) in (59) 49 24
trade and other
receivables
(Decrease)/Increase in (43) (154) (65)
trade and other payables
Cash (used by)/generated (15) 10 144
from operating activities
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