Osprey Communications PLC
20 July 2000
OSPREY COMMUNICATIONS PLC ('the Company')
The Company has changed its accounting reference date
from 30th September to 29th March and, accordingly, its
accounting reference period is extended so as to end on
29th March 2000. In view of this extension, the Company
has produced second unaudited interim financial
statements for the twelve month period ended 30th
September 1999, copies of which are attached to this
announcement and will shortly be circulated to
shareholders.
The Company is holding its annual general meeting on
Friday 21st July 2000. Shareholders have been advised
that, due to the unavailability of audited accounts at
present, the meeting will be immediately adjourned to a
date later in the year.
The above arrangements have been made in the context of
an overall review of the financial position of the
Company and its Group. This review is ongoing and is
being conducted in conjunction with the Company's bankers
and other advisers. The Company expects to be able make
further announcements in this regard in the near future.
UNAUDITED SECOND INTERIM RESULTS OF OSPREY
COMMUNICATIONS PLC FOR THE TWELVE MONTHS ENDED
30 SEPTEMBER 1999 AND CHANGE OF YEAR END
Results
In the twelve months ended 30 September 1999 the Group
has reduced its cost basis significantly. However given
the difficult trading conditions, losses before tax were
£957,000 (1998 - £349,000) and basic loss per share was
3.19p (1998 - 1.39p). Turnover was £18,703,000 (1998 -
£24,313,000) and at 30 September 1999 Group borrowings
were £1,617,000 (1998 - £1,660,000). No interim dividend
will be paid.
Change of Accounting Reference Date
The Board has decided to change the accounting reference
date of the Group from 30 September to 29 March and
accordingly its accounting reference period is extended
so as to end on 29 March 2000. This has been agreed with
the London Stock Exchange and Companies House.
Annual General Meeting
As required by the Companies Act 1985, the Company will
hold its annual general meeting on Friday 21st July 2000.
Shareholders have been advised that, due to the
unavailability of audited accounts at present, the
meeting will be immediately adjourned to a date later in
the year.
Reorganisation
During the period under review the Group reorganised its
London operations and combined the activities of Osprey
Direct Limited and Creative Sales Promotions Limited with
those of Osprey London Limited to create a multi-skilled
operating company capable of offering a fully integrated
service. As a result of this reorganisation there were a
number of redundancies and other costs the total of which
amounted to £330,000.
Continuing Business
The Group has faced very competitive trading conditions
over the past twelve months, and found it particularly
tough to win new business. The market is polarising fast
and the major players are able to offer clients a greater
range of services and at a lower cost than us in many
cases. The Group consequently has had to reassess its
offering and its position in the market. Negotiations
for the proposed reverse takeover announced earlier this
year were unfortunately abandoned due to the sustained
volatility of the stock market and the board is now
pursuing further strategic alternatives.
Outlook
The future prospects for Osprey remain challenging and
the Group continues with its strategic review of
operations. The Board expects to be able to make
further announcements with regard to the future strategy
of the Group in the near future.
J Rubins
Chairman
OSPREY COMMUNICATIONS PLC
Interim results for the 12 months ended 30 September 1999
12 months 12 months
ended ended
30 September 30 September
1999 1998
(unaudited) (audited)
Note £'000 £'000
Turnover 18,703 24,313
Cost of Sales (12,117) (16,333)
Gross profit 6,586 7,980
Administrative Expenses (7,433) (8,216)
Operating loss on ordinary (847) (236)
activities before interest
Net Interest Payable (110) (113)
Loss on ordinary activities (957) (349)
before taxation
Tax charge on loss on 2 (1) (67)
ordinary activities
Loss for the year (958) (416)
Basic loss per share 3 (3.19)p (1.39)p
The results of the Group for the year related entirely to continuing
operations within themeaning of Financial Reporting Standard No. 3.
A statement of total recognised gains and losses is not included as there
are norecognised gains or losses other than those disclosed above.
Consolidated Balance Sheet
As at As at
30 September 30 September
1999 1998
(unaudited) (audited)
£'000 £'000
FIXED ASSETS
Tangible assets 822 876
CURRENT ASSETS
Work in progress 221 414
Debtors 3,158 4,085
3,379 4,499
CREDITORS
Amounts falling due within (6,325) (6,548)
one year
NET CURRENT LIABILITIES (2,946) (2,049)
Total assets less current (2,124) (1,173)
liabilities
CREDITORS
Amounts falling due after (9) (2)
more than one year
(2,133) (1,175)
CAPITAL AND RESERVES
Called up share capital 7,516 7,516
Share premium account 438 438
Shares to be issued 538 250
Profit and loss account (10,625) (9,379)
Equity shareholders' deficit (2,133) (1,175)
Summary Consolidated Cash
Flow Statement
12 months 12 months
ended ended
30 September 30
1999 September
1998
(unaudited) (audited)
£'000 £'000
Net cash inflow from 436 597
operating activities
Return on investments and (110) (101)
servicing of finance
Taxation (68) -
Capital and financial (183) (236)
investment
Acquisitions (10) (2)
Financing 127 (361)
Increase/(decrease) in cash 192 (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) Tax charge on loss on 12 months 12 months
ordinary activities ended ended
30 September 30
1999 September
1998
(unaudited) (audited)
£'000 £'000
Under provision in previous 1 67
years
(3) The calculation of the basic loss per share is based on a
loss of £958,000 (1998 - loss of £416,000) and on 30,064,898 shares
(1998 - 30,064,898 shares) being the weighted average number of shares in
issue during the year. The options granted over the shares and the
deferred consideration payable in shares in respect of the
purchase of Osprey Advertising Scotland Limited are considered to be
non-dilutive.
(4) As at the date of this statement, the directors are not aware of
any significant factors in respect of Year 2000 Compliance, which have arisen
or that may arise which will affect the activities of the business.
(5) The interim financial statements have been prepared on the basis of
the accounting policies set out in the Group's 1998 statutory accounts.
(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.