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Osprey Comms. (OSPY)

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Friday 30 July, 1999

Osprey Comms.

Interim Results

OSPREY COMMUNICATIONS PLC
30 July 1999


Chairman's Statement

The results for the 6 months ended 31 March 1999 show an operating loss before
interest of £252,000 compared to a profit of £189,000 in the same period last
year.

After excluding reconstruction and non-recurring costs, the Group made an
operating loss of £91,000.

As outlined in the Group's annual report and accounts, the Board has
undertaken a fundamental overhaul of our operating procedures and instigated a
cost rationalisation programme.  This ongoing programme to date has cost
£123,000, reducing overheads, so far, by in excess of £600,000 on an
annualised basis.

The full effect of this rationalisation along with the ongoing cost benefits
attained from our new offices at Hamilton House should reduce total overheads
by in excess of £1,250,000 this financial year, compared to the year ending
September 1998.

The restructure of the 3 main London agencies, CSP, Direct and Park to form
Osprey London has been successfully completed.  This new agency, our flagship,
now provides up to 50 per cent. of Group revenues, offering clients a fully
integrated service.

RMA and Future Image have performed in line with forecasts, with Scotland
expecting to pick up in the second half of the year.

The year so far has been one of consolidation and reconstruction, the benefits
of which will only start to be realised in the latter part of this financial
year.  The Group is now on a much sounder footing with the foundations having
been laid for long-term, successful, profitable and expanding operations.

On 31 March 1999, the consultancy agreement with Mr Clive Smith was terminated
and he ceased to be a director of the Group with effect from that date.  I
wish to express the Board's appreciation for his contribution to Osprey during
his service with the Company.

The Directors will not be proposing a return to the dividend list at the
present time.

Jack Rubins FIPA
Chairman



INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 1999

                                     6 Months to   6 Months to   12 Months to
                                        31/03/99      31/03/98       30/09/98
                                      (unaudited)   (unaudited)      (audited)
                             Note          £'000         £'000          £'000

TURNOVER                                  10,948        12,671         24,313
Cost of sales                             (7,495)       (8,403)       (16,333)
                                          ------        ------         ------
GROSS PROFIT                               3,453         4,268          7,980
        
Administrative expenses                   (3,705)       (4,079)        (8,216)
                                          ------        ------         ------
OPERATING (LOSS)/PROFIT
on ordinary activities 
before interest                             (252)          189           (236)

Net interest payable                         (54)          (87)          (113)
                                          ------        ------         ------
Tax charge on (loss)/
profit on ordinary
activities                     2               -             -            (67)
                                          ------        ------         ------
(LOSS)/PROFIT FOR THE
PERIOD                                      (306)          102           (416)
                                          ======        ======         ======
Basic earnings per share       3          (1.02)p         0.34p        (1.39)p
                                          ======        ======         ======
Diluted earnings per share     3          (1.04)p          n/a         (1.41)p
                                          ======        ======         ======

A statement of total recognised gains and losses is not included as there are
no recognised gains or losses other than those disclosed above.


CONSOLIDATED BALANCE SHEET

                                     6 Months to   6 Months to   12 Months to
                                        31/03/99      31/03/98       30/09/98
                                      (unaudited)   (unaudited)      (audited)
                                           £'000         £'000          £'000

FIXED ASSETS
Tangible assets                              865           719            876
                                           -----         -----          -----
CURRENT ASSETS
Work in progress                             146           358            414
Debtors                                    3,757         4,945          4,085
                                           -----         -----          -----
                                           3,903         5,303          4,499
CREDITORS
Amounts falling due within one year       (6,236)       (6,484)        (6,548)

NET CURRENT LIABILITIES                   (2,333)       (1,181)        (2,049)
Total assets less current liabilities      -----         -----          -----
                                          (1,468)         (462)        (1,173)
CREDITORS
Amounts falling due after more than
one year                                     (13)            -             (2)
                                           -----         -----          -----
                                          (1,481)         (462)        (1,175)
                                           =====         =====          =====
CAPITAL AND RESERVES
Called up share capital                    7,516         7,516          7,516
Share premium account                        438           438            438
Shares to be issued                          250             -            250
Acquisition reserve                            -             -              -
Profit and loss account                   (9,685)       (8,416)        (9,379)
                                           -----         -----          -----
Equity shareholders' funds                (1,481)         (462)        (1,175)
                                           =====         =====          =====


SUMMARY CONSOLIDATED CASH FLOW STATEMENT

                                     6 Months to   6 Months to   12 Months to
                                        31/03/99      31/03/98       30/09/98
                                      (unaudited)   (unaudited)      (audited)
                                           £'000         £'000          £'000

Net cash inflow/(outflow) from
operating activities                         129          (304)           597

Return on investments and servicing
of finance                                   (53)          (87)          (101)

Taxation                                     (66)            -              -

Capital and financial investment             (87)          (91)          (236)

Acquisitions                                   -         1,100             (2)

Financing                                    150          (176)          (361)
                                           -----         -----          -----
Increase/(decrease) in cash                   73           442           (103)
                                           =====         =====          =====

NOTES:

1.  The unaudited interim financial statements do not comprise full financial
    statements within the meaning of Section 240 of the Companies Act 1985
    ('Act').  Statutory accounts for the year ended 30 September 1998 have
    been delivered to the Registrar of Companies and contained an unqualified
    audit report under Section 235 of the Act and did not contain a statement
    under Section 237 (2) or (3) of the Act.

2.  There is no tax charge for the six months to 31 March 1999 as a result of
    losses brought forward.

3.  Basic earnings per ordinary share for the six months ended 31 March 1999
    is based on 30,064,898 ordinary shares (31 March 1998 - 29,584,896; 30
    September 1998 - 29,841,994) being the weighted average number of shares
    in issue and on the relevant profit or loss on ordinary activities. 
    Diluted earnings per ordinary share for the six months ended 31 March 1999
    is based on 29,449,604 ordinary shares (year ended 30 September 1998 -
    29,480,802 being the relevant weighted average number of shares and also
    on the relevant profit or loss on ordinary activities.  The difference
    between the weighted average number of shares to calculate diluted
    earnings per share and basic earnings per share relate to the share
    options in issue.

4.  The Board continues to consider the impact of Year 2000 issues and are
    satisfied that the consequential costs will not be significant to the
    Group.

5.  The interim financial statements have been prepared on the basis of the
    accounting policies set out in the Group's 1998 statutory accounts which
    include the adoption of Financial Reporting Standard 10 - Goodwill and
    Intangible Assets ('FRS 10').  In accordance with FRS 10 the balance on
    the acquisition reserve was written off against the profit and loss
    account.  For comparison purposes we have adjusted prior years on the same
    basis.

6.  Copies of this statement will be sent to shareholders and will be
    available at the Company's registered office at 100 Union Street, Aberdeen
    AB10 1QR.


                                                                                                                                                          

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