Just2clicks.com PLC
22 June 2000
Just2clicks.com plc
('J2C' or 'the Company')
Interim Results for the period ended 31 March 2000
J2C (www.just2clicks.com) is totally focused on deriving
transactional revenues from B2B e-commerce worldwide and is the
UK's largest quoted operator of business-to-business ('B2B')
vertical trading communities. These vertical communities are
designed to benefit from the Internet's ability to allow
businesses in the same industries to communicate and trade with
each other on-line. Following its recent flotation on the
Alternative Investment Market, J2C today announces interim
results for the period to 31 March 2000.
HIGHLIGHTS
* Total revenue for the period of £340,000
* Low cash burn rate - net cash of £48.5 million as at 31
May 2000
* Formation of strategic partnerships with Blue Circle
Industries and TWA
* Continued aggregation of high quality, industry specific
content
* Acquisition of Tradezone, a unique e-procurement trading
platform
* Considerable progress made in developing requisite
infrastructure to become a key player in the global B2B
marketplace
Karl Watkin, Chief Executive of J2C, said today:
'We have been extremely busy building our business up to a
point where it can start to generate increased B2B transaction-
based revenue. We have been very selective in the partners we
have chosen and in the content we provide and have been careful
to conserve our resources, so as to be better placed to exploit
opportunities as they present themselves.'
22 June 2000
ENQUIRIES:
Just2clicks.com plc Tel: + 44 7808 690069
Karl Watkin, Chief Executive E-mail: [email protected]
College Hill Tel: + 44 207 457 2020
Nicola Weiner E-mail: [email protected]
Archie Berens E-mail: [email protected]
Just2clicks.com plc
Interim Results for the period ended 31 March 2000
CHIEF EXECUTIVE'S REVIEW
Results
We are pleased to announce our interim results, which cover the
period ended 31 March 2000. It should be noted that this
represents only 9 weeks' trading for the business and is
therefore not representative of a full 6 month period.
During the period under review, J2C earned revenues of
£340,000. The Company made a loss for the period of
£1,941,000, including exceptional costs of £134,000 and
amortisation of £1,651,000. The 'cash burn' of the business
during the period has been low, and our cash position remains
very strong, with £48.5 million cash in the bank as at 31 May
2000.
Review of Operations
The period since the successful flotation of J2C on 16 February
2000 has seen acquisitions and significant developments in the
existing business.
VERTICAL TRADING COMMUNITIES
Powernet (www.pmsl.net)
Powernet is an exclusive online information, communication and
e-commerce system for the power industry, broadcasting daily
news, press releases and technical data. With free membership,
Powernet provides timely, accurate information, 24 hours a day,
365 days a year. A free web-based e-mail service is also
available, enabling users to stay in touch with counterparties,
wherever they are.
Emphasis is being placed on forming alliances with new
strategic partners and providers of content, which will allow
Powernet to expand its products and services as an increasing
number of market places become established. Since the
flotation of J2C in February, Powernet has formed strategic
partnerships with Utiliparts.com (to establish an on-line
market for spare parts) and with Wood Group Light Industrial
Turbines Limited, which is due to go live in the near future.
Powernet has also entered into content agreements with entities
such as AFP, News Alert, AFX, RNS, Business Wire, PR Newswire,
the BBC and the Financial Times, thus increasing the appeal and
scope of its marketplace.
pulpandpaper.net (www.pulpandpaper.net) ('PPN')
PPN's mission is to develop, market and manage the most
comprehensive on-line community for the pulp and paper
industry. In order to achieve this goal, PPN will focus its
services on the major elements of an electronic community;
these being news and information, research, educational
content, communication and, ultimately, commerce. PPN is
focused on the provision of high quality, value added services
to the pulp and paper industry. The service mix is designed to
provide a 'one stop shop' for the information and service
requirements of participants in the pulp and paper industry.
Our content partners include Walden-Mott Corp, Wide Area
Markets Ltd, Dow Jones Newswires, Pap'Argus and Brunton
Business Publications.
Translinx (www.translinx.com)
Translinx is a fully comprehensive, interactive service
providing manufacturers, distributors and road transport
professionals with a powerful new trading tool. It offers up-
to-the minute information and business opportunities in the
area of road transport 24 hours a day and provides a unique
platform for 'Real Time Trading' between thousands of
manufactures and transport-related businesses throughout the
world. Translinx has recently launched CargoCover, an
interactive on-line cargo insurance application and has
developed an e-procurement application specifically designed
for the vehicle transportation sector. We have also been
working with Wallon plc, a Belgian transportation business, to
establish an on-line trading floor for the European car
transportation market. There are further opportunities for
partnerships with goods and service providers in several other
major sectors, such as finance, consultancy, recruitment, used
vehicles and warehousing.
Translinx is looking to develop vertical trading communities in
both Sea and Rail Transportation, in order to offer a complete
transportation solution via the Internet. Translinx is also
recruiting sales and marketing partners to further expand its
services to manufacturers as well as carriers and distributors
throughout the UK and Europe.
e-cement (www.e-cement.com)
e-cement, which was established on 9 March 2000, is a joint
venture owned 40% by J2C and 60% by Blue Circle Industries
('BCI'), one of the top five cement manufacturers in the world.
The vertical community offers the world-wide cement industry an
on-line market for capital equipment, shipping, trading and
community services. It is e-cement's intention to introduce
other partners and industry players to this marketplace. The
first auction for £300 million of coke contracts was recently
initiated and will be completed in the next few weeks. e-
cement is looking to obtain a share of the cement industry's
procurement spend, which is thought to be between US$20 to
US$30 billion annually
HORIZONTAL SERVICES
Webfreight (www.webfreight.net)
Webfreight is a horizontal, on-line provider of air cargo
products and services to 900 global destinations for both 'Door
to Airport' & 'Door to Door' options. It is marketed to UK
shippers and exporters, offering the capability of instant rate
and service access and on-line booking.
Webfreight intends to create a worldwide on-line transportation
organisation for both export and import services in the areas
of Air, Courier, Sea, Road and Rail, through the formation of
partnerships or by acquisition. Last month, Webfreight formed
the first such partnership, with TWA. Webfreight is also
hoping to set up a specialist Airline group that would extend
services to all key trading nations, with the ultimate aim of
establishing a global network of Webfreight Partner Agreements
to facilitate sales, branding and market penetration.
E-PROCUREMENT SOLUTIONS
Tradezone International Ltd ( www.tradezone.co.uk)
On 29 March 2000, we announced the acquisition of Tradezone
International Limited ('Tradezone'), an e-procurement solutions
provider, which we believe will make a significant contribution
to the future of the Company. Tradezone develops and supplies
Tradezone e-commerce technology, which is provided to
purchasers, vendors and intermediaries operating in the B2B
arena. Tradezone solutions are also licensed to third party,
vertical and horizontal marketplace operators to power on-line
trading portals.
Tradezone intends to establish strategic satellite offices in
Europe and the Asia-Pacific region and will also be launching
the BestValuezone.com portal for best value e-procurement in
the public sector, especially for local authorities. There are
also opportunities for alliances with ERP vendors, system
integrators and ASP's to complement the Tradezone offering for
complete end-to-end e-procurement.
Current Trading and Prospects
In a period of rapid change, the Directors have maintained
their focus upon developing transactional revenues from B2B on
the Internet, to take advantage of the market for B2B
transactions which is forecast to be as large as US$7 trillion
worldwide by 2005. We continue to develop our portfolio of
vertical trading communities, both through the addition of high
quality, specialised content and through the formation of
partnerships with key players in the industries on which we are
focusing. We have also been steadily recruiting staff of the
highest calibre to provide us with the necessary industrial and
technological expertise. We are confident that we have put in
place the necessary infrastructure to facilitate the
transacting of business through these communities and we
believe we are well positioned to derive commissions from such
trade.
We successfully raised £50 million (net of expenses) in
February, money which will only be used prudently and
effectively. The business is benefiting from its profile,
significant cash resources and its ability to respond quickly
to opportunities, however they arise. The Directors therefore
believe that the business is very well placed to take advantage
of developments that result from any restructurings which may
take place in the e-commerce market place.
Karl Watkin
Chief Executive
22 June 2000
Just2clicks.com plc
Interim Results for the period ended 31 March 2000
CONSOLIDATED PROFIT & LOSS ACCOUNT
Note Period to
31 March
2000
£'000
Turnover - continuing operations 340
Administrative expenses (2,609)
(including amortisation charge of
£1,651,000)
Operating loss (2,269)
Net interest receivable 328
Loss before taxation (1,941)
Taxation on loss on ordinary 3 0
activities
Loss after taxation (1,941)
Dividends 0
Loss for the financial period (1,941)
Loss per share 5 (9.96p)
Just2clicks.com plc
Interim Results for the period ended 31 March 2000
CONSOLIDATED BALANCE SHEET
Note As at
31 March
2000
£'000
Fixed assets
Goodwill 1 48,504
Tangible assets 193
Current assets
Investments 2 3,460
Debtors 698
Cash at bank and in hand 50,134
54,292
Creditors: amounts falling due (4,099)
within one year
Net current assets 50,193
Total assets less current 98,891
liabilities
Creditors: amounts falling after (100)
more than one year
Net assets 98,791
Capital and reserves
Called up share capital 87
Share premium account 100,645
Profit and loss account (1,941)
Equity shareholders' funds 98,791
Just2clicks.com plc
Interim Results for the period ended 31 March 2000
CASHFLOW STATEMENT
Period to
31 March 2000
£'000
Operating loss (2,269)
Depreciation 4
Amortisation 1,651
Increase in debtors (655)
Increase in creditors 281
Net cash (outflow) / inflow from (988)
operating activities
Return on investments and servicing 328
of finance
Capital expenditure (438)
Acquisitions and disposals 56
Cash (outflow) / inflow before (1,042)
management of liquid resources and
financing
Management of liquid resources (50,000)
Financing 51,121
Increasing in cash in period 79
Just2clicks.com plc
Interim Results for the period ended 31 March 2000
NOTES
1. The interim financial information for the period ended 31
March 2000 is unaudited and does not constitute statutory
accounts within the meaning of Section 240 of the
Companies Act 1985. The interim financial information has
been prepared on the basis of the accounting policies
expected to be adopted in the financial statements for the
period ending 30 September 2000. The most significant of
these accounting policies are as follows:
Goodwill
Purchased goodwill (representing the excess of the fair
value of the consideration given over the fair value of
the separable net assets acquired) arising in respect of
acquisitions is capitalised. Positive goodwill is
amortised to nil by equal instalments over 5 years.
Turnover
Turnover represents the amounts (excluding value added
tax) derived from the provision of services to customers.
2. Included in current asset investments is an amount of
£3,460,000 in respect of a property in London which was
being held for resale. The property was sold in April
2000 for a profit of £275,000.
3. There is no tax charge for the period due to losses
incurred.
4. The Group had no recognised gains or losses other than the
losses for the period.
5. Loss per share is calculated based on the loss on ordinary
activities after taxation divided by the weighted average
number of shares in issue, being 19,494,798.
6. Copies of the interim report are being sent to all
shareholders and will be available to the public from the
Company's registered office.
