Interim Results
First Property Online PLC
28 November 2001
FIRST PROPERTY ONLINE PLC
INTERIM RESULTS
For the Six Months Ended 30th September, 2001
28th November, 2001
First Property Online plc ('fprop'), which provides technical and financial
services to streamline property transactions, announces interim results for
the six months ended 30th September, 2001.
Corporate Highlights
The acquisition of CPD in August 2001, creating one of the largest UK property
databases
The launch of bespoke loan quote and underwriting services in June 2001
The acquisition of Propertytrade in April 2001
Post period end:
Over £100,000 of new contracts signed up
Loans being organised for properties worth over £4.4m
Strutt & Parker, a leading UK agent, chooses CPD as its commercial property
search function
Financial Highlights
£90,000 revenue for the period, the vast majority of which was generated in
the last two months of the period (Six months to 30th September, 2000: £nil)
£287,000 loss before taxation and goodwill amortisation, in line with the
business plan (Six months to 30th September, 2000: loss of £121,000)
Ben Habib, Chief Executive, said: 'Through the acquisitions and product
launches we have undertaken in the last six months, we have placed fprop as a
market leader in our field.
'We are the only company to offer such a comprehensive range of property
services.
'Since the period end, we have continued to escalate our revenue generation
with considerable success.'
For further information:
Ben Habib / Jeremy Phillips Jeremy Carey / Marylene Guernier
First Property Online plc Tavistock Communications Limited
Tel: 020 7731 2844 Tel: 020 7600 2288
www.fprop.com
UNAUDITED CONSOLIDATED INTERIM RESULTS
for the six months ended 30th September, 2001
CHAIRMAN'S STATEMENT
Results
I am pleased to report that, as indicated in our annual results released in
June 2001, the Group has moved positively towards revenue generation.
Turnover for the period was £90,000 (£nil in the six months to 30th September,
2000). The vast majority of this income was generated in the last two months
of the period.
The Group made a loss on ordinary activities before taxation and goodwill
amortisation of £287,000 (£121,000 in the six months to 30th September, 2000).
The Directors are not declaring the payment of an interim dividend.
Developments during the period
On 31st August, 2001 we completed our acquisition of Commercial Property
Database Ltd and CPD Ltd ('CPD'). Since then the businesses of these
companies have been integrated with fprop and both operations are now based at
our offices.
This acquisition, together with that of Propertytrade in April 2001, have
enabled the Group to offer a broad range of products, including property
search, web design and hosting services, supported by one of the largest
property databases in the UK.
Our bespoke loan quote and underwriting services have also gone live, with
early signs of success.
Our balance sheets in future are likely to contain properties that we have
acquired as a result of underwriting deals. The balance sheet at 30th
September, 2001 contains two properties that we acquired in this way, which we
will release back on to the market in due course. In the mean time they are
currently yielding us an excellent weighted average return on capital in
excess of 20%.
Current trading and prospects
The Group is trading in line with our expectations. We are pleased and
encouraged by the rate at which revenue generation is increasing and, subject
to market conditions, we would expect this growth to continue.
We have had a number of significant successes since the period end, including:
Two intranet and web design contracts collectively worth over £100,000, which
will be earned over the next twelve months.
Requests for loan quotes for properties with an aggregate value of over £
27.5m; of these, loans are in the process of being organised for properties
collectively worth over £4.4m.
Confirmation that Strutt & Parker, one of the UK's leading agencies, has
decided to use the CPD system as its commercial property search function for
the firm's website.
The outlook of the economic environment in the UK as a whole remains uncertain
and our revenue growth rate may be impacted if the economy continues to
weaken. However, as our interim results show, fprop is continuing to grow in
operating and financial strength.
In conclusion, I remain cautiously optimistic about the Group's prospects for
the coming year.
Alasdair Locke
Chairman
21st November, 2001
CONSOLIDATED PROFIT & LOSS ACCOUNT
for the six months ended 30th September, 2001
Six months to 30th September, Six months to 30th September,
2001 (unaudited) 2000 (unaudited)
Notes Results Goodwill Total Results Goodwill Total
before Amortisa- Results before Amortisa- Results
Goodwill tion Goodwill tion
Amortisa- Amortisa-
tion tion
£'000 £'000 £'000 £'000 £'000 £'000
Turnover
- continuing 26 - 26 - - -
operations
- acquisitions 64 - 64 - - -
Total 3 90 - 90 - - -
turnover
Cost of
sales
acquisitions (8) - (8) - - -
Gross profit 82 - 82 - - -
Net (440) (1,620) (2,060) (209) - (209)
operating
expenses
Operating
loss
- continuing (317) (1,602) (1,919) (209) - (209)
operations
- acquisitions (41) (18) (59) - - -
Total (358) (1,620) (1,978) (209) - (209)
operating
loss
Net interest 71 - 71 88 - 88
receivable
Loss on
ordinary
activities
before
taxation (287) (1,620) (1,907) (121) - (121)
Taxation on
loss on
ordinary - - - - - -
activities
Loss on
ordinary
activities
after
taxation (287) (1,620) (1,907) (121) - (121)
Loss per
Ordinary 1p
share
- basic
before
goodwill
amortisation 4 (0.33p) (0.30p)
Loss per
Ordinary 1p
share
- basic
after
goodwill
amortisation 4 (2.22p) (0.30p)
Year to 31st March, 2001 (audited)
Notes Results Goodwill Total
before Amortisation Results
Goodwill
Amortisation
£'000 £'000 £'000
Turnover
- Continuing operations - - -
- acquisitions - - -
Total turnover 3 - - -
Cost of sales
- acquisitions - - -
Gross profit - - -
Net operating expenses (547) (801) (1,348)
Operating loss
- continuing operations (547) (801) (1,348)
- acquisitions - - -
Total operating loss (547) (801) (1,348)
Net interest receivable 184 - 184
Loss on ordinary
activities
before taxation (363) (801) (1,164)
Taxation on loss on
ordinary activities - - -
Loss on ordinary
activities
after taxation (363) (801) (1,164)
Loss per Ordinary 1p
share
- basic before goodwill
amortisation 4 (0.68p)
Loss per Ordinary 1p
share
- basic after goodwill
amortisation 4 (2.18p)
CONSOLIDATED BALANCE SHEET
as at 30th September, 2001
Notes As at As at As at
30th Sept, 30th Sept, 31st March,
2001 2000 2001
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Fixed assets
Intangible assets 4,334 - 5,607
Tangible assets 94 - 42
Investments 238 238 238
4,666 238 5,887
Current assets
Stocks - land and buildings 1,107 - -
Debtors 467 372 337
Cash at bank and in hand 2,064 3,387 2,604
3,638 3,759 2,941
Creditors: amounts falling due
within one year (679) (339) (484)
Net current assets 2,959 3,420 2,457
Total assets less current 7,625 3,658 8,344
liabilities
Creditors: amounts falling due
after more than one year (843) - -
Net assets 6,782 3,658 8,344
Capital and reserves
Called up share capital 6 910 423 850
Share premium 6 2,661 2,911 2,663
Other reserves 6 5,790 - 5,550
Shares to be issued 6 47 - -
Profit and loss account 6 (2,626) 324 (719)
Equity shareholders' funds 6,782 3,658 8,344
SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30th September, 2001
Notes Six months Six months Year
to 30th Sept, to 30th Sept, to 31st March,
2001 2000 2001
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Net cash (outflow)/ inflow
from operating activities 7 (1,430) (207) 111
Returns on investment and
servicing of finance
Net interest received 77 79 185
Net cash inflow from returns
on investment and servicing
of finance 77 79 185
Capital expenditure and
financial investment
Purchase of tangible fixed (9) - (15)
assets
Net cash outflow from
capital expenditure and
financial investment (9) - (15)
Acquisitions and disposals
Cash consideration on (20) - -
acquisition
Net cash inflow/ (outflow)
from acquisitions 15 - (213)
Net cash inflow from
disposals of operations - 632 -
Net cash (outflow)/ inflow
from acquisitions and
disposals (5) 632 (213)
Cash (outflow)/ inflow
before management of liquid
resources and financing (1,367) 504 68
Management of liquid
resources
Decrease in short term 596 - 150
deposits
Financing
Loans advanced 831 - -
Loans repaid (2) - (100)
Issue of Ordinary share - 110 110
capital
Issue cost of shares (2) - (247)
Net cash inflow/ (outflow)
from financing 1,423 110 (87)
Increase/ (decrease) in cash 56 614 (19)
in period
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
Notes Six months Six months Year
to 30th Sept, to 30th Sept, to 31st March,
2001 2000 2001
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Increase/ (decrease) in 56 614 (19)
cash in period
Movement in short term (596) - (150)
deposits
Loans acquired with (15) - (100)
subsidiaries
Hire purchase contracts
acquired with
subsidiaries (13) - -
Movement in loans (829) - 100
Movement in net funds in (1,397) 614 (169)
period
Net funds at beginning 2,604 2,773 2,773
of period
Net funds at end of 1,207 3,387 2,604
period
NOTES TO THE CONSOLIDATED RESULTS
For the six months ended 30th September, 2001
1. The interim accounts have been prepared on a basis which is consistent with
the accounting policies adopted for the year ended 31 March 2001.
2. On 31st August, 2001, the company acquired 100% of the issued share capital
of CPD Limited and Commercial Property Database Limited. The total
provisional fair value of the consideration was £373,000, the provisional
fair value of the assets acquired was £46,000 and goodwill of £327,000
arose. In addition during the period the company acquired the business of
Propertytrade plc for total consideration of £20,000 and goodwill of £
20,000 arose on this acquisition.
3. Turnover consists entirely of revenue arising in the United Kingdom and
relates solely to the Group's principal activity.
4. The basic loss per Ordinary Share is calculated on the loss on ordinary
activities after taxation and on the weighted average of 85,979,916
Ordinary Shares in issue during the period (30th September, 2000:
41,011,168 and 31st March, 2001: 53,350,093). The adjusted earnings per
share has been calculated on the loss on ordinary activities after
taxation but before goodwill amortisation and based on the shares in issue
during the period as detailed in the basic earnings per share calculation.
5. The company has no recognised gains or losses other than those disclosed in
the profit and loss account.
6. Capital and Reserves
Share Share Merger Shares to Profit and
capital premium reserve be issued loss account
£000 £000 £000 £000 £000
At 1 April 2001 850 2,663 5,550 - (719)
Shares issued on acquisitions 60 - 240 47 -
Share issue costs written off
against share premium - (2) - - -
Loss for the period - - - - (1,907)
At 30 September 2001 910 2,661 5,790 47 (2,626)
7. Reconciliation of operating loss to net cash (outflow)/ inflow from
operating activities
Six months Six months Year
to 30th Sept, to 30th Sept, to 31st March,
2001 2000 2001
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Operating loss (1,978) (209) (1,348)
Depreciation 12 - 6
Amortisation 1,620 - 801
Movement in stocks (1,107) - -
Movement in debtors (9) 9 692
Movement in creditors 32 (7) (40)
Net cash (outflow)/ inflow
from operating activities (1,430) (207) 111
8. The financial information contained in this interim report does not
constitute statutory accounts within the meaning of section 240 of the
Companies Act 1985. This information has been neither audited nor
reviewed within the meaning of APB Bulletin 1999/4 by the company's
auditors. The financial statements for the year ended 31st March 2001,
incorporating an unqualified report of the auditors, have been filed with
the Registrar of Companies.
9. The Board of First Property Online plc approved these interim results on
21st November, 2001. The interim results are being circulated to all
shareholders. Further copies can be obtained from the registered office at
17 Quayside Lodge, William Morris Way, London SW6 2UZ.
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