Interim Results Amendment

Thomson Intermedia PLC 21 September 2004 The following replaces the Interim Results released today at 7am under RNS number 1487D. The original announcement contained incorrect information, the full amended text appears below. THOMSON INTERMEDIA PLC Interim Results for the six months to 31 July 2004 Thomson moves into profit as revenues jump 47% Thomson Intermedia is a leading provider of media information â€¢ Turnover increased by 47% to Â£2.74m (2003: Â£1.86m) â€¢ Total sales contracts increased by 40% to Â£3.1m (2003: Â£2.2m) â€¢ Deferred income of Â£2.7m (2003: Â£2.1m) â€¢ Underlying profit before tax increased to Â£248,000 (2003: Loss before tax Â£463,000)* â€¢ Profit before tax increased to Â£189,000 (2003: loss Â£468,000) â€¢ Underlying earning per share increased to 0.86p (2003: loss per share 1.44p)* â€¢ Launch of Thomson's systems into Germany â€¢ Alliance signed with dunnhumby, combining Thomson advertising intelligence with Tesco Clubcard sales data. * pre amortisation and share incentives Sarah Jane Thomson, Joint Chief Executive , commented: 'I am delighted to report our first profit. It heralds the start of period of accelerated growth for the business. Sales for the second half of the year have remained strong with a healthy pipeline of new prospects.' 'With high barriers to entry and a substantial market opportunity, we are now focused on increasing our sales penetration. The recent launch of our product into Germany, Europe's largest advertising market, is the first step in extending our business model and proprietary technology into international markets.' 'Having reached these milestones, I am confident that we have positioned ourselves to provide strong returns for shareholders.' 21 September 2004 Enquiries: Thomson Intermedia Plc 020 8466 5555 Sarah Thomson - Joint Chief Executive David Trendle - Finance Director College Hill 020 7457 2020 Kate Pope/Adrian Duffield Baird 020 7488 1212 Shaun Dobson/Adrian Hadden FINANCIAL RESULTS I am delighted to report that the Group has recorded its maiden profit since flotation. Turnover increased 47% to Â£2.74 million (2003: Â£1.86 million) with total sales contracts increasing by 40% to Â£3.11million (2003: Â£2.21 million). New business signed in this period showed substantial growth of 48% to Â£1.47m (2003: Â£0.99 million). A combination of the increase in sales and the continuing emphasis on improving Thomson Intermedia's technology has enabled the Group's productivity to sharply increase. Gross margins lifted to 68.3% (2003: 53.5%). The Group reported an underlying profit before tax of Â£248,000 (2003: loss of Â£463,000), before amortisation and share incentives. Pre-tax profit was Â£189,000 (2003: loss of Â£469,000). Underlying earnings per share were 0.86 pence (2003: loss per share of 1.44 pence). Actual earnings per share were 0.66 pence (2003: loss per share of 1.44 pence). The financial strength of our Balance Sheet continues to improve with the balance of future contracted revenues, at their highest ever level of Â£2.72m, Â£0.60m greater than at the comparable date last year. With net current assets in excess of Â£2 million there is no reduction in the emphasis placed on working capital management. Improving sales volumes mean that the business model will produce increasingly positive cash flow. The cash position at the half year end was Â£1.03 million. STRATEGY Our UK product offering is now comprehensive and unique. It relies on our proprietary databases and analytical systems to both, capture and deliver, real-time advertising data across multi media platforms. Systems provide creative executions linked to expenditure data and other metadata within minutes of advertisements airing for the first time. These are delivered to our clients in bespoke packages which enable them to understand the make up of their advertising space and react in a much more dynamic way than was previously possible. Our systems now deliver complete data across Press, TV, Radio, Direct Mail, Door Drops, Internet, Outdoor and Cinema markets, making them the most comprehensive and timely information available to advertisers in the UK market place. The tailored individual interfaces ensure that each client benefits from daily alerts and relevant aggregated data on their competitive market place. These empower our clients to review product pricing, offers and positioning of their products and therefore react to a dynamic market place. Our systems now capture the data on the entire UK advertising market incorporating over 20,000 advertisers. Currently we have only 4% of the top 5,000 advertisers in the UK as clients and therefore further penetration of this customer base will result in continued growth to the bottom line. Our vision has been to bring transparency to a complex market. The Advertising market is one of the last 'trust' markets which exists, inherently with little or no accountability of its costs. In a changing world of growing accountability and governance we have developed unique technologies and products to provide independent visibility and transparency which is increasingly becoming a necessity. Our product range now includes, real-time competitive monitoring systems, placement verification tools and systems to analyse the effectiveness of advertising. These tools empower our customers to react quickly and make strategic advertising decisions. OPERATIONAL REVIEW Our alliance with dunnhumby and the access this gives us to Tesco Clubcard sales data, is set to see a first trial of the product targeting high value FMCG markets. This initiative will combine the purchasing habits of 10 million customers with our own advertising expenditure data providing the first ever insights into the impact of advertising spend on sales. This important development is expected to increasingly contribute to the profitability over forthcoming trading periods. The recent introduction of placement verification technologies, which alerts advertisers to incidents where their adverts have failed to appear as booked, is continuing to gain momentum and is contributing to profits. The Group is working alongside a number of key organisations to establish this unique service as an essential industry standard. Our news division has benefited from further development of automatic capture technology which has enabled us to increase the acquisition of news stories from 15 publications to several hundred with minimal additional costs. Increased focus of sales resource will capitalise on the considerable opportunities this presents. The profile of the Company is allowing us to improve not only the quantity but also more importantly the overall quality of one of our most valuable assets, our people. We have recently recruited a high calibre Sales & Marketing Director whose focus will be on driving UK sales to their maximum potential, and substantively growing the number of advertisers subscribing to our services. We have implemented a new sales structure to increase individual focus and are recruiting a number of additional people who have experience from a variety of media backgrounds. This initiative will enable rapid market penetration and maximise the opportunities available to us. The recruitment of the Sales & Marketing director has further strengthened the group's management structure and has released resources to be directed towards the strategic development of the group. This has already resulted in a number of further developments most notably the replication of our business model in Germany, through our recently announced joint venture. LAUNCH INTO GERMANY The recently announced joint venture with Media Control, owned by Karlheinz Kogel in Germany is a major development for the Group. This joint venture will facilitate entry into Europe's largest advertising market with minimal risk and high potential reward. Media Control funds both start up and running costs of the joint venture and all revenues will be shared equally. This will result in our share of revenues contributing directly to the bottom line. Equally exciting is that having adapted the systems into the German language, the technology is now capable of conversion into other languages, thus creating the opportunity for successive international expansion. OUTLOOK The second half has started strongly with a healthy pipeline and improving market conditions. The contracted future revenues provide excellent forward visibility and stability for future results. The Group is now profitable from its UK core offering, net current assets are substantial and growing and there are significant benefits yet to be realised from the exciting new developments. Our entry into international markets for the first time, demonstrates the potential to leverage our IP assets in additional markets. We are therefore confident of a continuing strong performance for the full year and beyond. PROFIT AND LOSS ACCOUNT As restated Unaudited Unaudited Six months Six months Audited ended ended Year ended 31 July 2004 31 July 2003 31 January 2004 Notes Â£'000 Â£'000 Â£'000 Turnover 2,741 1,860 4,047 Direct Expenses 1 (868) (864) (1,778) Gross Profit 1,873 996 2,269 Operating Expenses 1,2 (1,699) (1,476) (2,934) Operating Profit / (loss) 174 (480) (665) Interest receivable 15 11 18 Loss on ordinary activities before taxation 189 (469) (647) Taxation 3 - 52 325 Profit / (Loss) on ordinary activities after taxation 189 (417) (322) Dividends 4 - - - Retained Profit / (Loss) transferred to reserves 189 (417) (322) Earnings / (Loss) per share, pence 5 -before amortisation & share incentives 0.86 (1.44) (0.97) -basic 0.66 (1.46) (1.12) -diluted 0.64 (1.46) (1.12) All amounts relate to continuing activities. STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES As restated Unaudited Six Unaudited Six Audited months ended months ended Year ended 31 July 2004 31 July 2003 31 January 2004 Note Â£'000 Â£'000 Â£'000 Consolidated statement of total recognised gains and losses Profit / (Loss) for the financial year 189 (417) (322) Total recognised gains and losses for the period 6 Prior year adjustment (369) (369) (786) (691) BALANCE SHEET As restated Unaudited Unaudited Audited Six months ended Six months ended Year ended 31 July 2004 31 July 2003 31 January 2004 Â£'000 Â£'000 Â£'000 Fixed assets Intangible fixed assets 37 49 43 Tangible fixed assets 560 504 451 597 553 494 Current assets Debtors 1,735 1,175 1,438 Cash at bank and in hand 1,030 667 1,229 2,765 1,842 2,667 Creditors: Amounts falling due within one year (603) (459) (637) Net Current Assets 2,162 1,383 2,030 Total assets less current liabilities 2,759 1,936 2,524 Accruals and Deferred Income (3,240) (2,732) (3,194) Net Assets (481) (796) (670) Capital and Reserves Share capital 7,186 7,155 7,186 Share premium 5,064 5,064 5,064 Merger reserve (5,250) (5,250) (5,250) Profit and loss (note 6) (7,481) (7,765) (7,670) Equity shareholders' funds (481) (796) (670) CASH FLOW STATEMENT Unaudited Unaudited Audited Six months ended Six months ended Year ended 31 July 2004 31 July 2003 31 January 2004 Â£'000 Â£'000 Â£'000 Cash outflow from operating activities (129) (270) 202 Taxation Research & development tax credit received 136 52 189 Returns on investments and servicing of finance Interest received 15 11 18 Capital expenditure Purchase of tangible fixed assets (221) (125) (185) Sale of tangible fixed assets - - 6 Net cash inflow / (outflow) before management of liquid resources and financing (199) (332) 230 Management of liquid resources Reduction in short term deposit (173) 254 91 Financing Capital element of finance lease payments - (6) (6) Increase / (decrease) in cash (372) (84) 315 (a) Reconciliation of operating loss to operating cash flow: As Restated Unaudited Unaudited Audited Six months ended Six months ended Year ended 31 July 2004 31 July 2003 31 January 2004 Â£'000 Â£'000 Â£'000 Operating Profit / (loss) 174 (480) (665) Depreciation & Amortisation 119 108 223 Loss on sale of fixed asset - 1 - Other non-cash operating expenses - - 31 (Increase) in debtors (434) (179) (306) (Decrease) / Increase in creditors (34) (74) 106 Increase in accruals and deferred income 46 354 813 Net cash flow from operating activities (129) (270) 202 NOTES TO THE CASH FLOW STATEMENT (b) Analysis of net funds Opening balance Closing balance 1 February 2004 Cash flow 31 July 2004 Â£'000 Â£'000 Â£'000 Cash 470 (372) 98 Liquid resources 759 173 932 Cash at bank and in hand 1,229 (199) 1,030 Total 1,229 (199) 1,030 NOTES TO ACCOUNTS 1. Basis of preparation The financial information set out above is extracted from the consolidated financial statements of Thomson Intermedia plc and its subsidiary Thomson Intermedia Associates Limited (together referred to as the 'Group'). The accounts of the Group for the six months ended 31st July 2004, which are unaudited, were approved by the Board on 8th September 2004. These accounts have been prepared in accordance with the accounting policies set out in the Report and Accounts of Thomson Intermedia plc for the year ended 31st January 2004. This interim statement does not constitute the company's statutory accounts. The financial information presented for the 6 months ended 31 July 2003 and 2004 has not been audited. Statutory accounts for the year ended 31 January 2004 have been delivered to the Registrar of Companies. The auditors report on those statutory accounts was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The consolidated financial statements incorporate the results of Thomson Intermedia plc and its subsidiary undertaking as at 31st July 2004 using the merger method of accounting. Goodwill is the difference between the cost of an acquired entity and the aggregate of the fair value of that entity's identifiable assets and liabilities. Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable. Acquisitions that entail significant market positions and which are of long-term strategic significance to the Group's operations are classified as strategic acquisitions, with goodwill amortised over 20 years. For acquisitions of complementary operations in markets where the Group is already established, the amortisation period for goodwill is between 5 and 10 years. 2. Director's Bonus scheme accrual Due to the greater visibility for the results for the full year the Board now consider it prudent to accrue for potential Director's bonuses in the Interim accounts. This has the effect of reducing profits by Â£136,000 in the six months ended 31 July 2004. The operating expenses for the six months ended 31 July 2003 have been restated to include 50% of the bonus due for the financial year ended 31 January 2004, which amounted to Â£87,000. 3. Taxation During the period the company received a R&D Tax credit of Â£136,000 relating to the year ended 31 January 2003. The company is currently pursuing R&D Tax credits for the year ending 31 January 2004. 4. Dividend No interim dividend is being proposed. 5. Earnings / (Loss) per share Unaudited Unaudited (as Restated) Six months ended Six months ended 31 July 2004 31 July 2003 Â£'000 Weighted Earnings Â£'000 Weighted Earnings average / (Loss) average / (Loss) number of per share number of per share shares pence shares pence Earnings / (Loss) per share before amortisation and share incentives 248 28,744,247 0.86 (411) 28,619,247 (1.44) Adjustment for amortisation (6) - (6) - Adjustment for share incentives (53) - - - Basic Earnings / (Loss) per share 189 28,744,247 0.66 (417) 28,619,247 (1.46) Effect of options - 934,966 - - Diluted earnings per share 189 29,679,213 0.64 (417) 28,619,247 (1.46) Earnings per share before amortisation and share incentives are presented as the Directors consider that this presents a meaningful measure of performance of the group. For diluted earnings per share, the weighted average number of shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares: those share options granted to employees where the exercise price is less than the market price of the Company's ordinary shares. The impact of any potential ordinary shares in the six months ended 31 July 2003 is antidilutive. 6. Prior Year adjustment On 25th March 2004 the Board approved a change in accounting policy relating to revenue recognition following the amendment to Financial Reporting Standard 5. Revenue arising from all contracts is now recognised evenly across the contractual period of those contracts. The change in policy has impacted the comparatives as shown below: Results under previous policy Movement As restated Â£'000 Â£'000 Â£'000 Turnover Six months ended 31 July 03 2,211 (351) 1,860 Deferred Income At 31 July 03 1,404 720 2,177 At 31 Jan 03 1,457 369 1,826 Profit & Loss account At 31 July 03 (6,958) (807) (7,765) Six months ended 31 July 03 (351) Relating to previous periods (369) Director's bonus accrual (87) At 31 Jan 03 (6,979) (369) (7,348) Relating to 02/03 (127) Relating to previous periods (242) The previous policy recognised a proportion of revenue on signature of the contracts to fairly reflect the delivery of the developed systems and extensive data library. The amended Financial Reporting Standard 5 'Commercial substance over legal form' (Application note G) only allows separate recognition of revenue where this is recognised contractually and those revenue components are delivered separately. The Board implemented the change in policy to comply with the amendment to this Financial Reporting Standard. 7. Interim report Copies of this interim report for the six months ended 31st July 2004 will be sent to shareholders. Further copies will be available from the Company Secretary at the registered office. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Ebiquity (EBQ)

Full Archive

UK 100

Latest directors dealings

All directors dealings today