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Flextech PLC (FLXT)

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Thursday 23 March, 2000

Flextech PLC

Final Results - Year Ended 31 December 1999

Flextech PLC
23 March 2000

                              Flextech plc
           Preliminary results for the year ended 31 December 1999


Flextech plc, the pay-television and new media group, today announced
preliminary results for the year ended 31 December 1999.

Financial Highlights

*    Total turnover, including Flextech's share of UKTV's revenue, increased
     6% to £161m
*    Profit before taxation of £5.1m (1998: loss of £5.1m) after exceptional
     profits of £14.8m
*    Operating loss of £14m (1998: loss of £3.5m), reflecting increased
     investment in transactional and interactive services and the costs of
     digital migration
*    Flextech's share of UKTV losses down from £12.2m to £4.4m
*    Advertising revenue (including share of UKTV's) 27% per cent higher at
     £50m
*    Flextech Interactive revenue increased fivefold to £1.8m

Operational Highlights

*    Major carriage agreements concluded with Telewest and NTL
*    Agreement signed to launch up to five shops on the Open..interactive
     shopping platform
*    SceneOne launched on CWC digital TV platform and on Orange's WAP mobile
     service
*    Acquisitions of  Minotaur International; 77.5% of Way Ahead; and 25% of
     Multimap
*    Disposal of 38% stake in TV Travel Shop (valuing the company at more
     than £50m)

Adam Singer, chairman and chief executive of Flextech plc, said:

'In 1999, Flextech made significant progress, especially in our  key
interactive division. Now, through our proposed merger with Telewest, we are
poised to create an integrated digital media group that combines our branded
content with their broadband network. Together we will aim to develop new
broadband products and services and exploit the potential for e-commerce .'

For Further Information


Adam Singer               Flextech plc              020 7299 5210
John Murray               Flextech plc              020 7299 5128
Alison Hogan              Brunswick                 020 7404 5959
                                      

Introduction

The year ended with Flextech and Telewest in talks about a possible merger
to create an  integrated digital media group, which will combine the power
of branded content and a broadband signal delivery network. Since then,
Telewest has made a recommended offer for Flextech's issued share capital
on the basis of 3.78 new  Telewest shares for each Flextech share and offer
documents have been dispatched to shareholders. The first closing date for
acceptances is 4 April  2000.

The new entity will combine content in the form of television channels,
websites, voice telephony and data, a powerful broadband network and access
to substantial cross-promotion. The new group will be in a position to
supply consumers and businesses with branded digital signal, while
providing a return path through which e-commerce transactions can flow. It
also allows for the creation of a broadband incubator in which added-value
products and services can be developed and subsequently rolled out  to
other platforms.

Review of 1999

In 1999, Flextech made considerable progress in its core business.
Carriage deals with both Telewest and NTL secured the distribution of our
wholly owned channels, while greatly improving the availability of the
UKTV channels. The multichannel universe grew 19 % in 1999 from 6.4
million subscribers to 7.6 million. The number of digital subscribers
increased by 2.3 million to end the year at 2.6 million.

UKTV, Flextech's joint venture with BBC Worldwide, made progress during
1999 not only by gaining wider distribution for its channels, but also
seeing a 42% rise in advertising revenues to £37.7m.

Flextech Interactive, the new media and e-commerce division, increased
revenues by 397% to £1.8m. The division has continued to develop products
and services, accessible over all platforms. The board believes that it is
well positioned to capitalise on the growth of internet, interactive
television and WAP mobile usage.

An agreement to launch up to five shops on the Open.. interactive shopping
platform was concluded in 1999 and SceneOne, Flextech's online
entertainment and listings guide (www.sceneone.co.uk) , was launched as a
shop on Open.. in the first quarter of 2000. It is also a content provider
to the  Orange WAP mobile telephone platform and is carried on CWC's
digital TV platform. A SceneOne video channel will be launched in the
second quarter .

Flextech Interactive's product portfolio was further enhanced by the
acquisitions of  a 25% stake in Multimap, an on-line map company
(www.multimap.com)  and a 77.5% stake in Way Ahead, a ticketing group
(www.tickets-online.co.uk).

TV Travel Shop (TVTS), the transactional holidays channel launched by
Flextech in 1998, sold holidays worth £72m in 1999. The sale of a 38 %
stake to Barclays Private Equity valued TVTS at more than £50m. Since the
year end a further 12.5 % stake was sold to Kuoni, a trade partner.

In  December 1999, Flextech agreed to buy independent distributor and
rights company Minotaur International. The deal enhances Flextech's
programming distribution, co-production and rights acquisition capability,
particularly in international markets.

Financial Review

Total turnover,  including Flextech's share of joint ventures turnover,
increased by 6% to £161m.

The turnover from our wholly-owned channels increased from £79.7m to £80.2m.
Advertising revenue for these channels increased by 19% to £31.2m, which more
than offset the lower subscription revenue that resulted from the migration
to digital.

Total transactional and interactive revenues increased by 9% to £23.8m.
Flextech Interactive revenues, incorporating our UK based interactive and new
media operations, increased by 397% to £1.8m.

Profit on ordinary activities after exceptional items and before tax was £5.1m
(1998: £5.1m loss). The disposal  of the 38% holding in TV Travel Shop to
Barclays Private Equity, produced  a profit of £13.5m. We also disposed of our
entire holding in Playboy, recognising a profit of £1.3m.

Operating loss was £14m (1998: £3.5m loss), reflecting increased investment in
transactional and interactive services, costs associated with digital
migration and corporate expenses.

The share of operating losses from the UKTV joint venture with BBC Worldwide
fell from £12.2m to £4.4m. UKTV turnover increased from £51.2m to £74.2m,
reflecting greater numbers of subscribers and strong growth in advertising
revenues.

Scottish Media Group, in which Flextech holds an 18.2 per cent stake,
continued its growth following a number of acquisitions in the year. Profit
before tax and exceptional items, increased from £46m to £50m.


The Future

The merger of Flextech with Telewest  will create a major new vertically
integrated platform and content company in the UK. It brings together
Telewest's growing network and subscriber base with Flextech's content and
branding skills with the objective of exploiting the opportunities provided by
the likely growth in demand for digital broadband products and services.

With ability to bundle telephony and content, the new company will be able to
drive broadband connections and create the platform for interactivity and e-
commerce. The directors believe that by merging Flextech's new media unit with
Telewest's interactive TV unit the combined entity will have the foremost
broadband content creation engine in the UK.

Moreover, Flextech's wholly-owned and joint venture TV channels should
continue to benefit from the growth of the multichannel television market,
which has still just reached approximately a third of TV homes. Emphasis on
the development of new channels, websites and interactive products and
services will continue strongly.

Adam N Singer, Chairman and Chief Executive
23rd March 2000



Preliminary Results
Unaudited
Consolidated Profit and Loss Account
Year ended 31 December 1999

                                       Notes      Year ended     Year ended
                                                 31 December    31 December
                                                        1999           1998
                                                       £'000          £'000
                                                  __________     __________
Turnover                                                                   
Group and share of joint ventures                                          
  Continuing activities                              160,151        149,213
  Discontinued activity                                  821          3,263
Total turnover                                       160,972        152,476
                                                  __________     __________
  Less: share of joint ventures'                    (37,102)       (25,612)
turnover
Group turnover                                       123,870        126,864
                                                  __________     __________
Cost of sales                              1(d)     (58,625)       (60,224)
Gross profit                                          65,245         66,640
                                                  ==========     ==========
                                                                           
Operating loss                                                             
  Continuing activities                             (13,428)          (730)
  Discontinued activity                                (615)        (2,795)
                                                  __________     __________
Operating loss                                      (14,043)        (3,525)
                                                  __________     __________
Share of operating (loss)/profit                                           
  Joint ventures                                     (4,416)       (12,182)
  Associated undertakings                              8,802         10,028
                                                  ==========     ==========
Profit on part disposal of continuing                                      
  activities                              1(b)         13,513             -
Profit on disposal of discontinued                                         
  activity                                1(a)          1,261             -
                                                   ==========     =========
Profit/(loss) on ordinary activities                                       
  before interest                                      5,117        (5,679)
                                                  __________     __________
Interest receivable and similar income                                     
  Group                                               12,839         11,599
  Joint ventures                                         178            210
  Associates                                              33              -
                                                  __________     __________
                                                      13,050         11,809
                                                  __________      _________
Interest payable and similar charges                                       
  Group                                              (6,222)        (5,356)
  Joint ventures                                     (5,943)        (5,411)
  Associated undertakings                              (939)          (486)
                                                  __________      _________
                                                    (13,104)       (11,253)
                                                  ==========      =========
Profit/(loss) on ordinary activities                                       
  before taxation                                      5,063        (5,123)
Tax on profit/(loss) on ordinary          1(c)                             
  activities                                            4,883       (1,438)
                                                   __________     _________
Profit/(loss) on ordinary activities                                       
  After taxation                                       9,946        (6,561)
Equity minority interests                              2,930          3,704
                                                  __________      _________
Profit/(loss) on ordinary activities                                       
  attributable to the members                         12,876        (2,857)
                                                   _________      _________
Dividends                                                  -              -
                                                   _________      _________
Retained profit/(loss) for the period                                      
  transferred to reserves                             12,876        (2,857)
                                                   =========      =========
                                                                           
Earnings per equity share                              8.17p        (1.82)p
Fully diluted earnings per equity                                          
  share                                                8.12p        (1.82)p
                                                   =========      =========
There is no material difference between the profit/(loss) as stated above
and the profit/(loss) calculated on a historical costs basis.


Preliminary Results
Unaudited
Consolidated Statement of Total Recognised Gains and Losses
Year ended 31 December 1999

                                               Year ended       Year ended
                                              31 December      31 December
                                                     1999             1998
                                                    £'000            £'000
                                               __________       __________
Profit/(loss) for the financial year               12,876          (2,857)
Foreign exchange movements                           (44)              153
                                               __________       __________
Total recognised gains and losses                                         
  relating to the year                             12,832          (2,704)
                                              ___________       __________
                                                                          

Group Activity Analysis
Year ended 31 December 1999

                                               Year ended       Year ended
                                              31 December      31 December
                                                     1999             1998
                                                    Total            Total
                                                    £'000            £'000
                                               __________       __________
Turnover                                                                  
Core business                                      99,208          101,805
Transactional and Interactive                                             
  - International                                  11,160           18,573
  - Domestic                                       12,681            3,223
Premium channel - discontinued activity               821            3,263
                                                _________        _________
                                                  123,870          126,864
                                                _________        _________
                                                                          
Operating loss                                                            
Core business                                      18,179           21,118
Transactional and Interactive                                             
  - International                                     (2)            2,355
  - Domestic                                     (18,358)         (13,266)
Corporate and development                        (13,247)         (10,937)
Premium channel - discontinued activity             (615)          (2,795)
                                                 ________         ________
                                                 (14,043)          (3,525)
                                                 ________         ________
Share of operating (loss)/profit - joint                                  
ventures
UKTV                                             (12,151)         (15,729)
UK Gold                                             9,735            5,547
Management fee                                    (2,000)          (2,000)
                                                 _________         _______
                                                  (4,416)         (12,182)
                                                 _________         _______

Core business represents the Group's basic channel portfolio together with
the provision of associated management and infrastructure services.
Transactional and Interactive represents the Group's activity in the home-
shopping, travel, interactive television markets and ticketing services.
The Premium channel represents the Group's discontinued interest in Playboy
TV. Corporate and development represents the overhead related to the
management of both the established and emerging aspects of the business.


Preliminary Results
Unaudited
Consolidated Balance Sheet
31 December 1999

                                      1999      1999        1998       1998
                                     £'000     £'000       £'000      £'000
                                  ________   _______    ________    _______
Fixed assets                                                               
Intangible assets                             10,609                     50
Tangible assets                               14,266                 13,721
Investments:                                                               
Investments in joint ventures:                                             
  Share of gross assets            29,143                19,773
  Share of gross liabilities     (129,132)             (109,581)           
                                  ________  ________    ________   ________
                                  (99,989)              (89,808)           
  Loans to joint ventures         226,384               194,581           
                                  ________  ________    ________   ________
Total investment in joint                                                  
  ventures                         126,395               104,773
Investments in associated                                                  
  undertakings                      33,731                14,861           
                                  ________  ________    ________   ________
                                             160,126                119,634
                                  ________  ________    ________   ________
                                             185,001                133,405
Current assets                                                             
Programming inventory               42,879                42,184           
Stock                                  830                   606           
Debtors (all falling due                                                   
  within one year)                  21,760                21,294
Investments                              -                   167           
Cash at bank and in hand            12,460                 6,190           
                                  ________  ________    ________   ________
                                    77,929                70,441           
Creditors: amounts falling                                                 
  due within one year             (72,951)              (65,194)           
                                  ________  ________    ________   ________
Net current assets                             4,978                  5,247
                                  ________  ________    ________   ________
Total assets less current                                                  
  liabilities                                189,979                138,652
Creditors: amounts falling                                                 
  due after more than one                                                  
  year                                      (75,465)               (37,422)
Provisions for liabilities                                                 
  and charges                                (3,569)               (10,303)
                                  ________  ________    ________   ________
Net assets                                   110,945                 90,927
                                  ________  ________    ________   ________
Capital and reserves                                                       
Called up share capital                       15,808                 15,729
Share premium account                        172,485                169,679
Merger relief reserve                          2,588                      -
Revaluation reserve                           14,505                 14,505
Other reserve                                  1,345                  1,345
Profit and loss account                     (93,773)              (106,870)
                                  ________  ________    ________   ________
Total equity shareholders'                                                 
  funds                                      112,958                 94,388
Equity minority interests                    (2,013)                (3,461)
                                  ________  ________    ________   ________
                                             110,945                 90,927
                                  ________  ________    ________   ________
                                                                           


Preliminary Results
Unaudited
Consolidated Cash Flow Statement
Year ended 31 December 1999

                                         Notes    Year ended    Year ended
                                                 31 December   31 December
                                                        1999          1998
                                                       £'000         £'000
                                                  __________    __________
Net cash (outflow)/inflow from                                            
  operating activities                       2       (6,119)         6,122
                                                  __________    __________
Dividends from joint ventures and                                         
  associates                                           3,112         3,413
                                                  __________    __________
Returns on investments and                                                
  servicing of finance                               (3,160)       (2,080)
                                                  __________    __________
Taxation                                                (87)           282
                                                  __________    __________
Capital expenditure and financial                                         
  investment                                        (30,668)      (26,790)
                                                  __________    __________
Acquisitions and disposals                             1,578             -
                                                  __________    __________
Equity dividends paid                                      -             -
                                                  __________    __________
Cash outflow before use of liquid                                         
  resources and financing                           (35,344)      (19,053)
                                                  __________    __________
Management of liquid resources                           232             -
Financing                                                                 
Issue of shares for cash                               2,868           793
Increase in debt                                      38,000        13,840
Loans from minority shareholders                         514         1,756
                                                   _________     _________
Net cash inflow from financing                        41,614        16,389
                                                   _________     _________
Increase/(Decrease) in cash in                                            
  the period                                           6,270       (2,664)
                                                   _________     _________
                                                                          

Reconciliation of Net Cash Flow to Movement in Net Debt
Year ended 31 December 1999

                                         Notes    Year ended     Year ended
                                                 31 December    31 December
                                                        1999           1998
                                                       £'000          £'000
                                                  __________     __________
Increase/(Decrease) in cash in                                             
  the period                                           6,270        (2,664)
Cash inflow from increase in                                               
  debt                                              (38,000)       (13,840)
Rolled up interest on long term                                            
  loan facility and other                                                  
  movements                                          (1,115)        (1,323)
Issue of loan stock                                  (7,119)              -
Sale of investment                                     (167)              -
Cash outflow from debt repayment                         144              -
                                                   _________      _________
Movement in net debt in the                                                
  period                                            (39,987)       (17,827)
Net debt at 1 January                               (46,066)       (28,239)
                                                   _________      _________
Net debt at 31 December                      3      (86,053)       (46,066)
                                                    ________       ________
                                                                           

Preliminary Results

Notes to the Accounts
Year ended 31 December 1999

1  Exceptional items

(a)On 31 March 1999, the Company completed the sale of its 51% interest in
Playboy TV UK/Benelux Limited to the Home Video Channel Limited recognising
a profit on disposal of £1.3 million.

(b)On 6 December 1999, Flextech plc announced its decision to sell 38% of its
holding in TV Travel Shop (reducing Flextech's holding to 49.5%) to
Barclays Private Equity for a consideration of £5.0 million. The resulting
profit on disposal of £13.5 million has been shown as an exceptional item.

(c)The deferred taxation provision of £8.3 million on the possible remittance
of overseas earnings has been released in full as it is no longer
considered likely that  this will crystallise.

(d)On 15  August 1998, after a brief illness, Flextech's Group Chief
Executive, Roger Luard died. At the same time as the announcement of his
illness, it was announced that the Board had unanimously agreed that, in
the circumstances and in recognition of his contribution to the development
of the company, it would be appropriate to offer Mr Luard a financial
package totalling £3.5 million. This agreement was approved at the Annual
General Meeting on 24 June 1998. The approved settlement and certain other
entitlements to Mr Luard's estate totalled £3.9 million. Of this total,
£0.9 million has been included in the long term incentive plan provision
made in previous years,£2.2 million has been recognised as an exceptional
item in 1998 and £0.8 million has been satisfied by the gain on the
exercise of Mr Luard's share options in 1999.

2
Reconciliation of operating loss to net        Year ended       Year ended
cash (outflow)/inflow from operating          31 December      31 December
        activities                                   1999             1998
                                                    £'000            £'000
                                              ___________       __________
Operating loss                                   (14,043)          (3,525)
Depreciation                                         3,682            2,971
Amortisation of intangible assets                     101              300
Amortisation of programming inventory              19,698           16,985
Increase in cost of programming                                           
  inventory                                      (20,393)         (22,494)
Decrease in debtors                                 1,959            5,689
Increase in stock                                   (124)             (11)
Increase in creditors                               3,001            6,204
Loss on disposal of fixed assets                        -                3
                                               __________       __________
Net cash(outflow)/inflow from operating                                   
  activities                                      (6,119)            6,122
                                               __________       __________
                                                                          

3 Analysis of changes in net        At 1        Cash     Other       At 31
debt                             January       Flows   Changes    December
                                    1999       £'000     £'000        1999
                                   £'000                             £'000
                                ________    ________   _______    ________
Cash in hand                       6,190       6,270         -      12,460
Debt due within 1 year          (15,001)         144   (8,086)    (22,943)
Debt due after 1 year           (37,422)    (38,000)     (148)    (75,570)
Current asset investment             167       (232)        65            -
                                ________    ________   _______     ________
Total                           (46,066)    (31,818)   (8,169)    (86,053)
                                ________    ________   _______    ________
                                                                          
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 December 1999 or 1998.  Statutory
accounts for 1998 have been delivered to the Registrar of Companies, and
those for 1999 will be delivered following the Company's Annual General
Meeting.  The Auditors have reported on those accounts; their reports were
unqualified and did not contain statements under section 237 (2) or (3) of
the Companies Act 1985.

                                                                                                                                                                                                                                            

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