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Osprey Comms. (OSPY)

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Wednesday 04 July, 2001

Osprey Comms.

Final Results

Osprey Communications PLC
4 July 2001



OSPREY COMMUNICATIONS PLC ('Osprey' or 'the Company')

Preliminary Results for the year ended 31 March 2001



CHAIRMAN'S STATEMENT

I am pleased to report a successful conclusion to the funding exercise
undertaken earlier in the year. Continuing operations made an operating profit
of £271,000 in the year ended 31 March 2001, with trading in Osprey RMA and
Osprey Scotland being buoyant.

Osprey RMA once again had a most successful year showing an operating profit
of £506,000. Osprey Scotland made an operating profit for the year of £151,000
and ended the year with several significant client gains, which augurs well
for the coming year. Osprey Communications Plc costs before interest were £
386,000, much of which related to the aftermath of the Company's earlier
problems and the subsequent tidying up operation.

The discontinued operations made an operating loss of £737,000 in the period
up to their disposal, which showed a profit of £1,239,000 over the net assets
disposed of making a net contribution to profit of £502,000. FRS 10 requires
us to make a transfer from reserves of goodwill relating to the disposed
businesses which has already been written off against profit and loss account
reserves in earlier years, as an exceptional deduction in this year's profit
and loss account, although this has no effect on the Group's overall profit
and loss account reserves, shareholders' funds and cash flow. In order to show
the position without this book entry, we have provided an additional earnings
per share calculation to show the earnings per share before the goodwill write
off.

As a result of the funding exercise, the successful trading and the profit on
the disposal of the businesses, the Group's balance sheet has been restored
from a deficit on shareholders' funds of £2,425,000 to a positive balance of £
71,000, providing a stable base from which to move forward.

As you will see from the documentation being sent with this report, subject to
Shareholders' approval, the Company will be undergoing a major change which
will be of great importance to its Shareholders and to the future of the
Company. Following intensive discussions I am pleased to announce that Osprey
Communications will purchase the whole of the share capital of 10 Alps and
Instant Party for an initial consideration of 10,920,349 new ordinary shares
of 20p each; up to a further 2,428,077 shares will be made available if
specified gross profit levels are achieved.

10 Alps is a young, dynamic Company which combined with the Osprey agencies
will then be well positioned to meet the marketing and communication needs of
a wide range of clients.

Bob Geldof KBE and Alex Connock head up a most impressive team who will be
running the new enlarged group.

I am delighted that Brian Walden has agreed to become Non-Executive Chairman.
I feel sure his knowledge and experience particularly in the world of
television will be of enormous benefit to the future of the Company.

Alex Connock will be the new Chief Executive and he will be assisted by a
number of new Directors. Details of this and other important matters will be
found in the attached documentation.

I would now particularly like to thank the Management and staff of Osprey RMA
and Osprey Scotland for their total dedication and support. I would also like
to thank Munir Samji and Stephen Barclay who will be retiring following the
acquisition. Without their support it would have been impossible to survive
the earlier difficulties and bring the Company back into profitability.

Finally, I too will be resigning once I have ensured the successful hand-over
of the Company, and I would like to thank the Shareholders, many of whom have
been extremely loyal and patient.

I leave the Company in good hands.

JACK RUBINS

Chairman

4 July 2001



CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                          Year ended 31 March 2001           18
                                                                         months
                                                                          ended
                                       Continuing  Discontinued Total  31 March
                                       Operations    Operations            2000
                                            £'000         £'000 £'000     £'000

Turnover                                    6,523         2,445 8,968    25,374
Cost of sales                               4,267         1,314 5,581    16,231
                                        _________  ____________ ______  ________
Gross profit                                2,256         1,131 3,387     9,143
Administrative expenses                     1,985         1,868 3,853    10,356
                                        _________  ____________ ______  ________
Operating profit/(loss)                       271         (737) (466)   (1,213)

Profit on disposal of                                     1,239 1,239         -

Businesses
Goodwill previously written off to
reserves written back on disposal
(*see note below)                                         (807) (807)         -
                                        _________  ____________ ______  ________
Profit/(loss) on ordinary activities          271         (305)  (34)   (1,213)
before interest
                                        _________  ____________
Net interest payable                                             (95)     (176)
                                                                ______  ________
Loss on ordinary activities before                              (129)   (1,389)
tax
Tax charge                                                          -       (1)
                                                                ______  ________
Retained loss for the year                                      (129)   (1,390)
                                                                =====   ========
                                                                   
Basic loss per share                                          (0.13p)   (2.31p)
                                                                =====   ========
                                                                  
Earnings/(loss) per share before
restatement of goodwill 
on businesses sold                                              0.68p   (2.31p)
                                                                =====   ========
                                                                   

*Note: Representing goodwill relating to disposed businesses, which was
previously written off to reserves, required by FRS 10 to be written back on
disposal and which has no effect on the overall profit and loss account
reserves, shareholders' funds and cash flow.



CONSOLIDATED BALANCE SHEET
                                             31 March 2001       31 March 2000
                                            £'000     £'000     £'000     £'000
Fixed assets
Intangible assets                                        80                   -
Tangible assets                                         140                 611
                                                  _________           _________
                                                        220                 611
Current assets
Work in progress                               34                 197
Debtors                                     1,336               2,455
Bank                                          115                   -
                                        _________           _________
                                            1,485               2,652
Creditors
Amounts falling due within one year       (1,634)             (5,688)
                                        _________           _________

Net current liabilities                               (149)             (3,036)
                                                  _________           _________
Net assets/(liabilities)                                 71             (2,425)
                                                   ========            ========

Capital and reserves
Called up share capital                                 267               7,516
Share premium account                                   527                 438
Profit and loss account                               (723)            (10,379)
                                                  _________           _________
Equity shareholders' funds/                              71             (2,425)
(deficit)
                                                   ========            ========



CONSOLIDATED CASH FLOW STATEMENT
                                                    Year ended      18 months
                                                                      ended
                                                    31 March 2001 31 March 2000

                                                   £'000    £'000  £'000  £'000
Net cash (outflow)/inflow from operating                    (979)           457
activities
Return on investments and servicing of finance               (95)         (176)
Taxation                                                        -          (68)
Capital expenditure and financial investment                 (49)         (236)
Acquisitions and disposals                                  1,135          (10)
                                                        _________     _________
Net cash inflow/(outflow) before financing                     12          (33)

Financing
Issue of ordinary share capital                    1,101               -
Capital element of finance lease rentals            (12)            (27)
Loans (repaid)/received from directors             (100)             150
Receipt of other loans                                 -             300
                                                        _________     _________
Net cash inflow from financing                                989           423
                                                        _________     _________
Increase in cash                                            1,001           390
                                                         ========     =========
Reconciliation of net cash flow movement to
movement in net debt
Increase in cash in the period                     1,001             390
Cash outflow/(inflow) from (increase)/decrease in
debt and lease financing

                                                     112           (423)
                                                  _________        _______
Change in net debt resulting from cash flows                1,113          (33)
Finance leases                                                  -          (22)
Decrease in loans from non-cash items                         717             -
                                                         _________    _________
                                                            1,830          (55)
Net (debt) at 1 April 2000                                (1,715)       (1,660)

                                                         _________    _________
Net funds/(debt) at 31 March 2001                             115       (1,715)
                                                         ========     =========



1. The results have been prepared under the historical cost convention and in
accordance with applicable accounting standards using accounting policies that
have been applied consistently.


    2. The financial information set out above does not constitute the
    Company's statutory accounts for the 12 month period ended 31 March 2001.
    The information relating to the 18 month period ended 31 March 2000 has
    been extracted from the 2000 Annual Report and Accounts which received an
    unqualified auditors' report and have been delivered to the Registrar of
    Companies.

    3. The Report and Accounts for the period ended 31 March 2001 have been
    prepared and will be mailed to shareholders today and further copies will
    be available from York House, Empire Way, Wembley, Middlesex HA9 0PA.

    4. The twentieth Annual General Meeting of Osprey Communications plc will
    be held at 10.00 a.m. on 27 July 2001 at the offices of Bright Grahame
    Murray, 124-130 Seymour Place, London W1H 1BG.


For further information please contact:

Osprey Communications plc               020 8795 4559

Jack Rubins

Munir Samji

Seymour Pierce Limited                  020 7648 8700

Jonathan Wright

Jeremy Porter

                                                                                
                           

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