Half-yearly Report
30September 2011
Totally Plc
("Totally", "the Group"or "the Company")
Half-yearly results for the sixmonth period ended 30 June 2011
Totally Plc (AIM: TLY), the AIM quoted niche community publisher and digital
marketing services provider announces its half-yearly results for the six month
period ended 30 June 2011.
Summary
* Group turnover of £0.90 million (2010: £0.89 million)
* EBITDA profit of £15,000 (2010: £84,000)
* Operating profit of £8,000 (2010: £73,000)
* Loss before Tax of £5,000 (2010: profit £63,000)
For further information:
Totally Plc T: 020 7692 6929
Daniel Assor
Chief Executive Officer
Merchant Securities Limited T: 020 7628 2200
Simon Clements / Virginia Bull
Chairman's Statement
I am pleased to present the results for the six months ended 30 June 2011.
During the period the Group made an operating profit of £8,000 (2010: £73,000)
and a loss before taxation of £5,000 (2010: profit £63,000) on turnover of £
0.90m (2010: £0.89 million).
The Group's digital marketing division has achieved year on year growth and the
reduction in the Group's operating profit can be attributed solely to the weak
advertising conditions faced by the Group's niche community media business.
Despite the reduction in Group earnings the Board is encouraged that the
Company has managed to deliver a broadly break even position during the period
under review despite tough trading and weaker general economic conditions. The
Board remains confident that the Group will achieve an operating profit for the
third consecutive year.
Dr Michael Sinclair
Non-Executive Chairman
30 September 2011
Operational Review
Software Development and Digital Marketing Division (Totally Communications)
Revenues of £435,000 (2010: £350,000) were achieved in the period under review.
The first half of 2011 has seen strong growth for both its Software Development
and Search Marketing divisions, with revenues during the reporting period up
24% compared to the same period last year.
Despite continuing economic uncertainty in the wider economy, Totally
Communications continues to show strong growth, consolidating its position as a
leading developer of software to the charitable and voluntary sector.
To support its continued growth, this division moved into a substantially
larger office and increased its team from 10 to 15 people.
During the period under review, notable new software development project wins
within the charitable and voluntary sector included the construction of an
extensive web-based volunteer management system for the Crisis] charity and new
online propositions for Parenting UK and Kusuma Trust.
Totally Communications also constructed websites for a number of commercial
organisations including Le Cordon Bleu, Linked In, Katie Price, GTA Advertising
& Rough Hill. During the reporting period, Rise Digital has secured Search
Marketing campaigns for many companies including Ingersoll Rand (international
commercial manufacturer), Homesun Limited (solar power), Art You Grew Up With,
Celebrity Group and Paulie Clothing
Community Media division (Jewish News and Media Group)
Revenues of £464,000 (2010: £544,000) were achieved in the period under review.
Revenues for the division were down 14.7% on 2010. This was in part due to
continuing volatile advertising trading conditions and in part due to the
deferral of the publication of a magazine from Q2 into Q3.
Investment was made in the division's event business with the recruitment of a
"Head of Events" whose primary responsibility is to deliver a new initiative,
Jewish Living Expo in 2012. This event will include approximately 150 paying
exhibitors and 3,000 paying visitors and will be held at Wembley Stadium in
March 2012. The event website is www.jewishlivingexpo.com
The overall objective for this division is to reduce the reliance on
advertising revenues over the next three years by building a division with
multiple revenue streams including print, digital and events.
Daniel Assor
Chief Executive Officer
30 September 2011
Consolidated Income Statement
For the six months ended 30 June 2011
Six Six Year ended
months ended months ended 31 December
30 June 2011 30 June 2010 2010
(unaudited) (unaudited) (audited)
£000 £000 £000
Group turnover 899 894 1,882
Cost of sales (259) (234) (427)
Gross profit 640 660 1,455
Administrative expenses (625) (576) (1,308)
Profit before interest, tax, 15 84 147
depreciation and amortisation
Depreciation (1) (1) (1)
Amortisation (6) (10) (40)
Operating profit 8 73 106
Finance costs (13) (10) (20)
(Loss)/profit before taxation (5) 63 86
Taxation 0 0 10
(Loss)/profit for the year (5) 63 96
attributable to equity shareholders
Earnings per share (pence)
Basic 0p 0.1p 0.1p
Diluted 0p 0.1p 0.1p
Consolidated Statement of Changes in Equity
(Unaudited)
For the six months ended 30 June 2011
Share Other Profit and Equity shareholders
Capital reserve loss funds
account
£000 £000 £000 £000
At 1 January 2011 1,124 0 (4,798) (321)
Loss for the period - - (5) (22)
At 30 June 2011 1,124 0 (4,803) (343)
Balance sheet
As at 30 June 2011
30 June 30 June 31 December
2011 2010 2010
(unaudited) (unaudited) (audited)
£000 £000 £000
Assets
Non-current assets
Intangible fixed assets 44 52 38
Tangible fixed assets 5 3 4
49 55 42
Current assets
Trade and other receivables 563 325 374
Cash and cash equivalents 1 25 0
564 350 374
Total assets 613 405 416
Current liabilities
Trade and other payables (492) (278) (335)
Borrowings - financial liabilities (447) (493) (402)
Total liabilities (939) (771) (737)
Net liabilities (326) (366) (321)
Shareholders' equity
Called up share capital 1,124 1,124 1,124
Share premium account 3,353 3,353 3,353
Translation reserve 0 0 0
Retained earnings (4,803) (4,843) (4,798)
Equity Shareholders Deficit (326) (366) (321)
Cash Flow Statement
For the six months ended 30 June 2011
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2011 2010 2010
(unaudited) (unaudited) (audited)
£000 £000 £000
Net cash outflow from operating (28) (15) 68
activities (note 4)
R&D tax credit 10 0 10
Net cash (used in)/generated from (18) (15) 78
operating activities
Cash flows from investing activities
Purchase of non-current assets (2) 0 (1)
Purchase of intangible assets (12) (2) (18)
Net cash utilised by investing (14) (2) (19)
activities
Cash (outflow)/inflow before financing (32) (17) 59
Cash flows from financing activities
Interest paid (13) (10) (20)
Net cash utilised from financing (13) (10) (20)
activities
Net (decrease)/increase in cash and cash (45) (27) 39
equivalents
Cash and cash equivalents at beginning (402) (441) (441)
of period
Cash and cash equivalents at end of (447) (468) (402)
period
Notes to the Interim Results
1. Basis of preparation
The interim report and accounts for the six months ended 30 June 2011 have been
prepared using the recognition and measurement principles of International
accounting Standards, International Financial reporting Standards and
Interpretations adopted for use in the European Union (collectively "Adopted
IFRS").
The interim report and accounts should be read in conjunction with the Group's
2010 Annual Report and Accounts which have been prepared in accordance with
IFRSs as adopted by the European Union.
The interim report and accounts have been prepared on the basis of the
accounting policies set out in the Group's 2010 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 by the Board of Directors on 28 September 2011. The results for the
six months to 30 June 2011 and the comparative results for the six months to 30
June 2010 are unaudited. The comparative figures for the year ended 31 December
2010 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 498(2) or Section 498 (3) of the Companies Act
2006.
2. Earnings per share
The basic earnings per share has been calculated by dividing the retained loss
for the period of £5,000 (2010: profit £63,000) by the weighted average number
of ordinary shares of 91,947,934 (2010: 91,947,934) in issue during the period.
None of the share options or warrants in issue had a dilutive effect in 2011
and 2010.
3. Dividends
No dividend is proposed for the 6 months ended 30 June 2011.
4. Cash flows utilised in operating activities for the six months ended 30
June 2011
5.
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2011 2010 2010
(unaudited) (unaudited) (audited)
£000 £000 £000
Cash inflow from operating activities
(Loss)/profit from continuing (5) 73 106
activities
Adjustments for:
Equity settled share based payment 3 3 15
Depreciation, amortisation and 7 11 41
impairment
Operating cash flow prior to working 5 87 162
capital
Increase in trade and other receivables (189) (59) (108)
Increase/(Decrease) in trade and other 156 (43) 14
payables
Cash (utilised by)/generated from (28) (15) 68
operating activities