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Buyers Guide PLC (VRA)

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Tuesday 24 April, 2001

Buyers Guide PLC

Final Results

Buyers Guide PLC
24 April 2001


24 April 2001 UK: Buyers Guide PLC Final Results
Buyers Guide PLC

Preliminary announcement for the six months to 31 December 2000

Buyers Guide PLC, is a leading online provider of information on business
supplying products and services to local government and public services
bodies in the UK.

*    Turnover for the six months of £1,150,942
*    Sales invoices issued up 2% to £735,868 (proforma six months to
     31 December 1999 £721,065),despite considerable management
     and director time taken up by the float
*    Pre-tax Profits for the six months of £147,270
*    Cash reserves £4.1 million at 31 December 2000
*    Internal development of Marketplace Auction Technology on hold
*    Tony Caplin to be appointed Chairman

Howard Flight, Chairman commented:

'During the past six months the main event of the Company was the successful
flotation on AIM raising £4.4 million after expenses. The main objective of
the Company is the provision of B2B and GS2B (Government Spending to
Business) online procurement technology services and to become a leading
player within this niche market. With the fast changing markets of B2B and
GS2B, we have accepted the need to understand and research more fully the
online purchasing requirements of the public sector and to look at several
options to achieve our objectives before committing our resources. After
exploring several potential avenues available for the growth of the Company,
we are in discussions with several businesses. Additionally we are also
looking at ways to increase the core business.

While remaining a non-executive Director of the Company I have agreed to
stand down as Chairman to enable Mr Tony Caplin to take on the role of
leading the Company's negotiations with other businesses and leading its
strategy as Chairman.'

18 April 2001
For further information:
Buyers Guide PLC
Howard Flight MP  Tel: 020 7597 2114
Tony Caplin,      Tel: 020 8296 7000
                       07774 611611


CHAIRMAN'S STATEMENT
TRADING RESULTS
I am pleased to report a profit before taxation for the six months to 31
December 2000 of £147,270. Recognised revenue for the period is £1,150,942
consisting of sales invoices issued and recognised in the period of £531k and
revenue deferred in earlier periods recognised in this period of £620k.

Turnover recognised in the period cannot be meaningfully compared with that
of prior periods, with the change to the way invoiced sales are recognised
over the contract period following the acquisition of the business of
Buyersguide (Holdings) Limited in July 2000.  However, the amount of sales
invoices issued in the six months to 31 December 2000 showed an increase of
2% to £735,868 (proforma six months to 31 December 1999: £721,065). Given the
flotation process took up considerable management time, it is of
encouragement that during this period our performance, assessed by sales
invoices issued, improved compared to the previous year.

REVIEW OF THE PERIOD
This six month period to 31 December 2000 saw the Company achieve a
successful flotation on the Alternative Investment Market of 17,248,000
Ordinary Shares, representing 19.77% of the enlarged share capital raising
£4,386k after expenses.

With effect from 1 July 2000 the company acquired the trade, assets and
liabilities of Buyersguide (Holdings) Limited for a consideration of £200,000
satisfied by the issue of 70,000 ordinary shares of £1 each at par and of
130,000 preference shares of £1 each at par.

The Company currently generates revenues from the businesses listed on its
online service, paying fees which vary dependent on the amount of information
provided on their products and/or services. The core business of Buyers Guide
PLC is, unlike many internet related businesses, in a relatively secure
position and capable of increasing its profitability. This provides a gateway
to develop an online marketplace specific to the UK public sector, which
remains the directors' objective, although in the present climate we have
been cautious before committing financial resources.

At the end of November the Company terminated the software development,
licence and maintenance agreement with Ci4net for the development and
subsequent provision of a licence in respect of software for the Buyers
Marketplace, which it was intended would be integral to the Auction
Technology Marketplace. This termination was made following developments at
Ci4net, which led us to believe they were not in a position to fulfill their
side of the agreement. We neither paid any amounts to Ci4net nor were there
any cancellation costs associated with this termination agreement.

We have since been evaluating the options for the provision of marketplace
technology before taking any decisions on the technology and strategy that
best supports Buyers Guide's aspirations.

We have met with key suppliers in the arena and others who could assist in
supplying and supporting our needs. Our investigations have also been
extended to peripheral suppliers who provide services that are vital to
support a marketplace structure and to other businesses which have developed
electronic procurement systems.

At this point no decisions have been made, but we hope to be in a position to
move forward more rapidly in the near future. In exploring this best way
forward, so that we may exploit the potential of Buyers Guide, we are in
discussions with other businesses.

It has therefore become apparent that the Company needs the leadership of a
Chairman with the experience in this arena to evaluate and negotiate
potential partnership opportunities or acquisitions.  While remaining a non-
executive Director of the Company I have agreed to stand down as Chairman to
enable Mr Tony Caplin to very soon take on the role of leading the Company's
negotiations with other businesses and leading its strategy as Chairman.

Tony Caplin is Chairman of SEP Industrial Holdings plc and Dynamic Commercial
Finance plc, as well as a small  number of private companies.  He is also a
non-executive director of Easynet Group plc, Hansard Group plc, Just Group
plc, Mountcashel plc, Northamber plc, Tadpole Technology plc and Totally plc,
as well as a number of private companies.

Mr Caplin will devote substantial time to the affairs of the Company at this
key stage in its development and will be granted options over 2.18 million
shares in the Company at a price per share representing the lowest average
over any seven day period during the first six months Mr Caplin is Chairman.

Mr Bradshaw resigned as a non-executive director of the Company on 16 March
2001.

PERSONNEL
The flotation to market took up considerable management and director time and
I would like to offer my sincerest thanks to all those involved in the issue
whether by direct involvement or by keeping the Company's own performance on
track.

BALANCE SHEET AND CASH FLOW
As at 31 December 2000 the Company is in a healthy position to continue its
core business activity and to develop the Auction Technology Marketplace,
with cash resources of £4,133k at 31 December 2000.

The net flotation proceeds have been retained for future investment and when
added to the healthy trading performance saw the net assets of the Company at
31 December 2000 at £4,705k.

DIVIDEND
The directors do not recommend a dividend. The Company is still in an early
stage of development where it is the Company's intention to utilise its cash
reserves for the development of the business.

Howard E Flight MP
Chairman
18 April 2001


PROFIT AND LOSS ACCOUNT
for the six months ended 31 December 2000

                                          6 months          10 months
                                    to 31 December         to 30 June
                                              2000               2000
                         Notes                   £                  £
                             
TURNOVER                                 1,150,942                  -

Cost of sales                              484,332                  -
                                        ----------         ----------
GROSS PROFIT                               666,610                  -

Administrative expenses                    612,576                  -
                                        ----------         ----------
OPERATING PROFIT                            54,034                  -

Bank interest receivable                    93,236                  -
                                        ----------         ----------
PROFIT ON ORDINARY                         147,270                   
ACTIVITIES BEFORE
TAXATION

Tax on profit on             3              28,000                  -
ordinary activities                     ----------         ----------

PROFIT ON ORDINARY                         119,270                  -
ACTIVITIES AFTER
TAXATION

RETAINED PROFIT BROUGHT                          -                  -
FORWARD                                 ----------         ----------

RETAINED PROFIT CARRIED                   £119,270                 £-
FORWARD                                 ==========         ==========

Earnings per share -         4               0.16p                  -
basic and diluted

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
There are no recognised gains or losses other than the profit attributable to
shareholders of the company.  All amounts related to continuing activities
which were acquired in the period.

BALANCE SHEET
at 31 December 2000


                                       31 December            30 June
                                              2000               2000
                          Notes                  £                  £
                                                                    
FIXED ASSETS                                                         
Intangible assets                          758,715                  -
Tangible assets                             15,661                   
                                      ------------       ------------
                                           774,376                  -
                                      ------------       ------------
CURRENT ASSETS                                                       
Debtors                                    361,701                  2
Cash at bank and in hand                 4,133,153                  -
                                      ------------       ------------
                                         4,494,854                  2

CREDITORS: amounts                         561,306                  -
falling due within one                ------------       ------------
year

NET CURRENT ASSETS                       3,933,548                  2
                                      ------------       ------------
TOTAL ASSETS LESS                        4,707,924                  2
CURRENT LIABILITIES

CREDITORS: amounts due                                               
after more than one year                     2,090                  -
Deferred income                       ------------       ------------
                                        £4,705,834                 £2
                                        ==========          =========
CAPITAL AND RESERVES                                                 
Called-up share capital      5             217,250                  2
Share premium account                    4,369,314                  -
Profit and loss account                    119,270                  -
                                      ------------       ------------
SHAREHOLDERS' FUNDS                                                  
Equity                                   4,575,834                  2
Non-equity                                 130,000                  -
                                      ------------       ------------
                                        £4,705,834                 £2
                                        ==========          =========

CASH FLOW STATEMENT
for the six months ended 31 December 2000

                                       6 months to       10 months to
                                       31 December            30 June
                                              2000               2000
                          Notes                  £                  £
                             
NET CASH OUTFLOW FROM     6(a)           (457,559)                  -
OPERATING ACTIVITIES

RETURNS ON INVESTMENTS                                               
AND SERVICING OF FINANCE
Interest received                           93,236                  -

TAXATION                                         -                  -

CAPITAL EXPENDITURE                                                  
Payments to acquire                        (4,083)                  -
fixed assets

ACQUISITIONS AND                                                     
DISPOSALS
Net cash acquired with                     114,997                  -
trade

EQUITY DIVIDENDS PAID                            -                  -

MANAGEMENT OF LIQUID                                                 
RESOURCES
Payments into short-term               (4,067,291)                  -
deposits

FINANCING                                                            
Issue of ordinary share capital          5,001,920                  -
Share issue costs                        (615,538)                  -
                                        ----------         ----------
INCREASE IN CASH                           £65,862                 £-
                                        ==========         ==========


                                                                     
RECONCILIATION OF NET CASH 
FLOW TO MOVEMENT IN
NET FUNDS
                                       6 Months to       10 months to
                                       31 December            30 June
                                              2000               2000
                                                 £                  £

Increase in cash in the period              65,862                  -
Cash outflow from increase               4,067,291                  -
in liquid resources                   ------------       ------------

Movement in net funds                    4,133,153                  -

Net funds at 1 July 2000                         -                  -
                                      ------------       ------------
Net funds at 31 December  6(b)          £4,133,153                 £-
2000                                    ==========         ==========


NOTES TO THE PRELIMINARY ANNOUNCEMENT
at 31 December 2000

1. ACCOUNTING POLICIES

Accounting convention
The  accounts  are  prepared  under the historical  cost  convention  and  in
accordance with applicable accounting standards.

Depreciation
Depreciation is provided on all tangible fixed assets at rates calculated to
write off the cost, less estimated residual value of each asset evenly over
its expected useful life as follows:

Computer equipment     - 4 years straight line
Fixtures and fittings  - 4 years straight line

The carrying value of tangible fixed assets are reviewed for impairment in
periods if events or changes in circumstances indicate the carrying value may
not be recoverable.

Goodwill
Goodwill  is  capitalised, classified as an asset on the  balance  sheet  and
amortised  on  a straight-line basis over its useful economic  life  of  five
years.   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.

Leasing
Rentals  payable  under operating leases are charged in the profit  and  loss
account on a straight-line basis over the lease term.

Research and development
Research and development expenditure is written off as incurred, except  that
the  development  expenditure incurred on an individual  project  is  carried
forward when its future recoverability can reasonably be regarded as assured.
Any expenditure carried forward is amortised in line with the expected future
sales from the related project.

Deferred taxation
Deferred taxation is provided on the liability method on all timing
differences which are expected to reverse in the future, calculated at the
rate at which it is estimated that tax will be payable.

Income recognition
The company's contract revenues are derived principally from one activity,
internet advertising.

The recognition of income is in accordance with the terms and conditions of
advertising contracts. Revised terms and conditions were introduced with
effect from 1 July 2000. Under these, for advertising contracts of twelve
months, 90% of the income is recognised in the month that the advertising
copy is prepared and approved for publication by the customer.  The remaining
income is associated with the obligation to publish the advert on the
company's web site and this is recognised pro rata over the period of the
advertisement.

Revenues from renewing existing advertising contracts are recognised in the
same way, except that all revenue is deferred until the previous contract has
expired.

Revenues under contracts dated earlier than 1 July 2000 are recognised pro
rata over the period of the advertisement.

Following a review of the terms and conditions, a revised contract was used
from 1 July 2000. This allowed revenue to be recognised in accordance with
the costs incurred in generating those revenues.

Deferred income is primarily comprised of income received and receivable
under internet advertising agreements in advance of revenue recognition, and
is included within creditors.

2. TURNOVER AND SEGMENTAL ANALYSIS

In the period to 31 December 2000, the company's entire turnover was to
markets within the United Kingdom and derived from one activity, internet
advertising.

Turnover, profit on ordinary activities before tax and net assets is
attributable to one continuing activity, which was acquired during the
period.

Turnover consists of revenues recognised over the period as follows:

                                                                      £
Release  of deferred income brought forward                            
from prior periods (pre 1 July 2000)                            619,855
Recognition of income from sales in the                         531,087
period (post 30 June 2000)                                 ------------

Total turnover                                               £1,150,942
                                                             ==========

3. TAXATION

                                 6 months to               10 months to
                                 31 December                    30 June
                                        2000                       2000
                                            
Payment for group relief             £28,000                        £ -
                                  ==========                 ==========


There were no movements in deferred taxation during the current and previous
periods and no provision for deferred taxation at the balance sheet date.

4. EARNINGS PER SHARE

The calculation of basic earnings per share is based on earnings of £119,270,
being the profit for the period and on 76,345,272 ordinary shares being the
weighted average number of ordinary shares in issue during the period.

There are no dilutive shares, as the average market value in the period has
been less than the exercise price of the share options.

5. SHARE CAPITAL

                                 31 December                    30 June
                                        2000                       2000
                                           £                          £
                                                                       
Authorised                                                             

120,000,000 ordinary                                           
shares of 0.1p each                  120,000                          -

1,000 ordinary shares of £1 each           -                      1,000
                         
130,000 preference shares
of £1 each                           130,000                          -
                                  ----------                 ----------
                                    £250,000                     £1,000
                                  ==========                 ==========

Allotted, called up and                                                
fully paid                                                      

87,250,000 ordinary shares            
of 0.1p each                          87,250                          -

2 ordinary shares of £1 each               -                          2 

130,000 preference shares
of £1 each                          £130,000                          -
                                  ----------                 ----------
                                    £217,250                         £2
                                  ==========                 ==========

On 20 July 2000, the authorised share capital of the company was increased
from £1,000 to £250,000 by the creation of 119,000 new ordinary shares of £1
each ranking pari passu with the existing ordinary shares and 130,000
preference shares of £1 each.

On 20 July 2000, the business, assets and liabilities of Buyersguide
(Holdings) Limited were transferred to the company and 70,000 ordinary shares
of £1 each and 130,000 preference shares of £1 each were issued, pursuant to
the Hive Down Agreement, with an aggregate nominal value of £200,000.

On 24 July 2000, the existing ordinary shares of £1 each were subdivided into
1,000 ordinary shares of 0.1p each such that the authorised share capital  of
the  company  then  constituted £250,000 divided  into  250,000,000  ordinary
shares of 0.1p each and 130,000 preference shares of £1 each.

On 24 July 2000, the company was admitted to trade on the Alternative
Investments Market (AIM).  A further 17,248,000 ordinary shares were issued
in connection with this placing, with an aggregate nominal value of £17,248,
for a consideration of £5,001,920 before issue costs.

The  holders  of  the preference shares shall be entitled to a non-cumulative
preferential dividend at the rate equal to six monthly LIBOR minus 1 per cent
and  to a further dividend on the basis of 1p for every £1 distributed as the
dividend  per ordinary shares once the total dividend on each ordinary  share
that has been paid in any year reaches £10.

On a return of capital on winding-up or (other than on redemption or purchase
of shares) otherwise, the holders of the preference shares shall be entitled
in priority to any payment to the holders of any other class of shares to the
repayment of a sum equal to the nominal capital paid up or credited as paid
up on the preference shares held by them respectively.

The preference shares carry no votes at meetings except in respect of
resolutions modifying any rights or privileges of the preference shares.

On 24 July 2000, a share option scheme was approved for directors and
employees and a separate share option scheme for non-executive directors.

5. SHARE CAPITAL (continued)

A total of 4,200,000 shares were granted for nil consideration.  The options
are exercisable as follows:

Executive and Non-executive Directors:

On the 3rd anniversary of the grant date    25% of options granted
On the 4th anniversary of the grant date    a further 25% of options granted
On the 5th anniversary of the grant date    a further 25% of options granted
On the 6th anniversary of the grant date    all options become fully vested   
                 
Senior Managers:
On the 1st anniversary of the grant date    33% options granted
On the 2nd anniversary of the grant date    a further 33% options granted
On the 3rd anniversary of the grant date    all options become fully vested

Other Employees:
On the 1st anniversary of the grant date    25% of options granted
On the 2nd anniversary of the grant date    a further 25% of options granted
On the 3rd anniversary of the grant date    a further 25% of options granted
On the 4th anniversary of the grant date    all options become fully vested   
                        

The date of grant for all the above options was 24 July 2000.  The expiry
date of all options is 24 July 2010.

6. NOTES TO THE CASH FLOW STATEMENT

(a) Reconciliation of operating profit to net cash outflow from operating
activities

                                          6 months to       10 months to
                                          31 December            30 June
                                                 2000               2000
                                                    £                  £
                                                                        
Operating profit                               54,034                  -
Depreciation                                    2,283                  -
Amortisation of goodwill                       84,302                  -
Increase in debtors                          (64,066)                  -
Decrease in creditors                       (534,112)                  -
                                         ------------       ------------
Net cash outflow from operating            £(457,559)                 £-
activities                                 ==========         ==========

(b) Analysis of changes in net funds
 
             At 1 July           Cash                          At 31 Dec      
                   2000          flows    Acquisitions              2000
                      £              £               £                 £

Cash at               -       (49,135)         114,997            65,862
bank and
in hand

Liquid                -      4,067,291               -         4,067,291
resources 
            ------------   ------------    ------------      ------------
                     £-     £4,018,156        £114,997        £4,133,153
             ==========     ==========      ==========        ==========


7. DIVIDENDS

The directors do not recommend a dividend for the period.

8. REPORT AND ACCOUNTS

The financial information contained in this announcement does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985.  The
audit report is yet to be signed.  The audited accounts will be mailed to
shareholders shortly and filed, in due course with the Registrar of
Companies.  Copies of the accounts will be available from the company's
registered office: 1st Floor, Didsbury House, 748 Wilmslow Road, Manchester
M20 2DW.



                                  

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