Interim Results
First Property Online PLC
02 December 2002
FIRST PROPERTY ONLINE PLC
INTERIM RESULTS
For the Six Months Ended 30 September 2002
2 December 2002
First Property Online plc ('fprop'), which provides financial and technical
services to streamline property transactions, announces interim results for the
six months ended 30 September 2002.
Corporate Highlights
• Launch of a new fund management company, First Property Asset
Management Ltd (FPAM), owned at 74% by First Property Online plc and at
26% by John Nettleton
• Revenues from property transaction underwriting increasing rapidly
Financial Highlights
• £386,000 turnover for the period (2001: £90,000)
• £116,000 loss on ordinary activities before taxation and goodwill
(2001: £287,000)
Ben Habib, Chief Executive, commented: 'We continue to be pleased by the rate at
which revenue generation is increasing. We are making good progress towards our
goal of moving into profitability by 31 March 2003.'
For further information:
Ben Habib / Jeremy Phillips Marylene Guernier / Jeremy Carey
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 30 September 2002
CHIEF EXECUTIVE'S STATEMENT
Results
I am pleased to report that the Group has continued to accelerate the growth of
its revenue streams and is rapidly closing the gap on expenses. Turnover for the
six month period was £386,000 (£90,000 in the six months to 30 September 2001).
The Group made a loss on ordinary activities before taxation and goodwill
amortisation of £116,000 (loss of £287,000 in the six months to 30 September
2001).
The Group's balance sheet remains strong. Net assets amounted to £2.9 million,
including net current assets of over £2.8 million.
Review of Operations and Current Trading
Property transaction underwriting
Our underwriting activities have continued to grow at a fast rate. During the
period these activities generated revenues of £175,000 for the Group. We expect
these revenues to continue to grow for the remainder of the year.
CPD
CPD is trading satisfactorily and earned revenue of £205,000 during the period,
with website design and development work completed for more than 20 clients.
Over the coming months we will be launching a number of new marketing campaigns
and ancillary web based products to promote CPD's services to a wide prospective
user base. CPD's products and services are reviewed in more detail at
www.cpd.co.uk.
Other products and services
Our bespoke loan quote and valuation service continues to establish itself. This
service is already playing a very valuable part in our fund management
activities (see below).
We are also developing our online bidding service and have recently announced
the successful sale of another property through www.fprop.com.
First Property Asset Management
We are delighted to announce that on 1 October 2002 we launched a new fund
management company, First Property Asset Management Ltd (FPAM). The company is
74% owned by First Property Online plc and 26% owned by John Nettleton. John was
previously chief executive of Wates City plc and brings with him invaluable
experience and contacts.
The aim of the company is to utilise fprop's large property databases, combined
with our bespoke loan quote and valuation service, our in-house expertise and
that of John Nettleton, to provide a commercial property fund management service
delivering attractive rates of return to third party investors. FPAM earns fees
in return for its management services calculated with reference to gross assets
under management, together with an additional performance fee should returns
exceed a predetermined level.
FPAM has commenced business and is currently managing an initial tranche of
c£1.4 million of assets on behalf of First Property Trading Ltd (FPT).
Shareholders in FPT include a number of high net worth individuals. The Company
has made an investment of £50,000 in FPT (a 10% stake, made up of equity and
debt). I have also personally invested £25,000 in FPT (a 5% stake).
The property investments thus far undertaken by FPAM, on behalf of FPT, are
currently yielding a return on equity of 19.5% per annum before tax but after
management fees.
It is our intention to grow our fund management activities, which are a natural
adjunct to our other products. A second tranche of fund raising on behalf of FPT
has already been agreed and steps are being taken to secure the management of
funds on behalf of other third parties.
Prospects
We continue to be pleased by the rate at which revenue generation is increasing.
We are making good progress towards our goal of moving into profitability by 31
March 2003.
There are, at the moment, well publicised risks to the UK economy and, more
specifically, the property market. We would naturally not be immune to a down
turn in the property market. However, we believe that our exposure to economic
swings, one way or the other, is reduced by the type of property in which our
various services deal.
Ben Habib
Chief Executive
29 November 2002
CONSOLIDATED PROFIT & LOSS ACCOUNT
for the six months ended 30 September 2002
Six months to 30 September 2002 Six months to 30 September 2001
(unaudited) (unaudited)
N Results before Goodwill Total Results before Goodwill Total
o Good-will Amortisa-tion Results Goodwill Amortisa-tion Results
t Amortisa-tion Amortisa-tion
e £'000 £'000 £'000 £'000 £'000 £'000
s
Turnover
- continuing 386 - 386 26 - 26
operations
- acquisitions - - - 64 - 64
Total turnover 2 386 - 386 90 - 90
Cost of sales
- continuing (45) - (45) - - -
operations
- acquisitions - - - (8) - (8)
Gross profit 341 - 341 82 - 82
Net operating (442) (1,717) (2,159) (440) (1,620) (2,060)
expenses
Operating loss
- continuing (101) (1,717) (1,818) (317) (1,602) (1,919)
operations
- acquisitions - - - 41 (18) (59)
Total operating loss (101) (1,717) (1,818) (358) (1,620) (1,978)
Net interest (15) - (15) 71 - 71
(payable)/
receivable
Loss on ordinary (116) (1,717) (1,833) (287) (1,620) (1,907)
activities
before taxation
Taxation on loss on - - - - - -
ordinary activities
Loss on ordinary (116) (1,717) (1,833) (287) (1,620) (1,907)
activities
after taxation
Loss per Ordinary 3 (0.12p) (0.33p)
1p share
- basic before
goodwill
amortisation
Loss per Ordinary 3 (1.98p) (2.22p)
1p share - basic
after goodwill
amortisation
Year to 31 March 2002
(audited)
Results before Goodwill Goodwill Amortisation Total
Amortisation Results
£'000 £'000 £'000
Turnover
- continuing operations 97 - 97
- acquisitions 275 - 275
Total turnover 372 - 372
Cost of sales
- continuing operations - - -
- acquisitions (20) - (20)
Gross profit 352 - 352
Net operating expenses (1,006) (3,342) (4,348)
Operating loss
- continuing operations (686) (3,204) (3,890)
- acquisitions 32 (138) (106)
Total operating loss (654) (3,342) (3,996)
Net interest (payable)/ receivable 79 - 79
Loss on ordinary activities (575) (3,342) (3,917)
before taxation
Taxation on loss on - - -
ordinary activities
Loss on ordinary activities (575) (3,342) (3,917)
after taxation
Loss per Ordinary 1p share (0.65p)
- basic before goodwill
amortisation
Loss per Ordinary 1p share - basic after (4.41p)
goodwill amortisation
CONSOLIDATED BALANCE SHEET
as at 30 September 2002
Notes As at As at As at
30 Sept 30 Sept 31 March 2002
2002 (unaudited) 2001 (unaudited) (audited)
£'000 £'000 £'000
Fixed assets
Intangible assets 1,010 4,334 2,727
Tangible assets 38 94 58
Investments 238 238 238
1,286 4,666 3,023
Current assets
Stocks - land and buildings 3,925 1,107 1,121
Debtors 324 467 381
Cash at bank and in hand 139 2,064 1,649
4,388 3,638 3,151
Creditors: amounts falling due within one year (1,574) (679) (600)
Net current assets 2,814 2,959 2,551
Total assets less current liabilities 4,100 7,625 5,574
Creditors: amounts falling due after more than one (1,161) (843) (802)
year
Net assets 2,939 6,782 4,772
Capital and reserves
Called up share capital 5 924 910 924
Share premium 5 2,661 2,661 2,661
Merger reserve 5 5,823 5,790 5,823
Shares to be issued 5 - 47 -
Profit and loss account 5 (6,469) (2,626) (4,636)
Equity shareholders' funds 2,939 6,782 4,772
SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 September 2002
Notes Six months to 30 Sept 2002 Six months to 30 Sept 2001 Year
(unaudited) (unaudited) to 31 March
£'000 £'000 2002
(audited)
£'000
Net cash outflow from operating 6 (2,737) (1,430) (1,822)
activities
Returns on investment and
servicing of finance
Net interest (paid) / received (15) 77 96
Net cash (outflow)/ inflow from (15) 77 96
returns on investment and
servicing of finance
Capital expenditure and
financial investment
Purchase of tangible fixed (2) (9) (15)
assets
Sale of tangible fixed assets - 15
Net cash outflow from capital (2) (9) -
expenditure and financial
investment
Acquisitions and disposals
Cash consideration on - (20) (13)
acquisitions
Acquisition expenses paid - - (32)
Net cash acquired with - 15 15
subsidiary undertakings
Net cash outflow from - (5) (30)
acquisitions and disposals
Cash outflow before management (2,754) (1,367) (1,756)
of liquid resources and
financing
Management of liquid resources
Decrease in short term deposits 1,430 596 (1,158)
Financing
Issue of Ordinary share capital - - -
Issue cost of shares - (2) (2)
Loans advanced 1,244 831 831
Loans repaid - (2) (28)
Net cash inflow from management 2,674 1,423 1,959
of liquid resources and
financing
(Decrease)/ increase in cash in (80) 56 203
period
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET (DEBT)/ FUNDS
Notes Six months to 30 Sept 2002 Six months to 30 Sept 2001 Year
(unaudited) (unaudited) to 31 March 2002
£'000 £'000 (audited)
£'000
(Decrease)/ increase in cash (80) 56 203
in period
Movement in short term (1,430) (596) (1,158)
deposits
Loans acquired with - (15) (28)
subsidiaries
Hire purchase contracts - (13) -
acquired with subsidiaries
Movement in loans (1,244) (829) (803)
Movement in net funds (2,754) (1,397) (1,786)
in period
Net funds at beginning 818 2,604 2,604
of period
Net (debt)/ funds at end (1,936) 1,207 818
of period
NOTES TO THE CONSOLIDATED RESULTS
For the six months ended 30 September 2002
1. The interim accounts have been prepared on a basis which is consistent with
the accounting policies adopted for the year ended 31 March 2002.
2. Turnover consists entirely of revenue arising in the United Kingdom and
relates solely to the Group's principal activity.
3. The basic loss per Ordinary Share is calculated on the loss on ordinary
activities after taxation and on the weighted average of 92,441,254 Ordinary
Shares in issue during the period (30 September 2001: 85,979,916 and 31 March
2002: 88,879,821). 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.
4. The company has no recognised gains or losses other than those disclosed in
the profit and loss account.
5. Capital and Reserves
Share Share premium Merger reserve Shares to be issued Profit
capital £000 and loss account
£000 £000 £000 £000
At 1 April 2002 924 2,661 5,823 - (4,636)
Loss for the period - - - - (1,833)
At 30 Sept 2002 924 2,661 5,823 - (6,469)
6. Reconciliation of operating loss to net cash outflow from operating activities
Six months to 30 Sept 2002 Six months Year
(unaudited) to 30 Sept to 31 March 2002
£'000 2001 (unaudited) (audited)
£'000 £'000
Operating loss (1,818) (1,978) (3,996)
Depreciation and profit on 22 12 39
disposal of fixed assets
Amortisation 1,717 1,620 3,342
Movement in stocks (2,804) (1,107) (1,121)
Movement in debtors 57 (9) 15
Movement in creditors 89 32 (101)
Net cash outflow from operating (2,737) (1,430) (1,822)
activities
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 31 March 2002, 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
29 November 2002. 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.
END
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