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World Telecom PLC (WDT)

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Friday 15 October, 1999

World Telecom PLC

Interim Results - Replacement

WORLD TELECOM PLC
15 October 1999


THE ISSUER HAS MADE THE FOLLOWING AMENDMENT TO THE INTERIM RESULTS ANNOUNCEMENT
RELEASED EARLIER TODAY AT 07:30 UNDER RNS NO 1007M.

THE FULL CORRECTED VERSION APPEARS BELOW.

===============================================================================


World Telecom plc Interim Results Correction

In the statement released earlier today the 
increase in turnover from £9.2 million in 1998 
to £15.2 million to June 1999 was incorrectly 
stated as 71%. The correct percentage increase 
was 64%. 

***************************************

                    WORLD TELECOM PLC
                            
              INTERIM RESULTS ANNOUNCEMENT
          for the six months ended 30 June 1999

World Telecom plc, the provider of value added
telecommunications services is pleased to announce its
interim results for the six months ended 30 June 1999.

Key points:
      Financials
      
      *    Turnover increased 64% to £15.2 million (1998:  £9.2
           million)
      
      *    Gross profit increased 146% to £6.8 million (1998:
           £2.7 million)
        
      *    Pre-tax losses of £3 million - decrease on same
           period last year
        
 
     Business
      
      *    Significant benefit gained from Orange contract
           during this period
      
      *    New Cable and Wireless contract awarded
      
      *    Global Calling Card service attracting major new
           customers
      
      *    Appointments strengthens management team
        

David Dey, Executive Chairman commented:

'The focus of the Board and the Management has been to
tighten considerably the controls on expenditure, improve
the revenue from our core services and to improve the
quality of service to our customers. In addition, your
Board continues to explore a number of strategic
initiatives to exploit the investment we have made, in
our value-added services, over the past eighteen months.'

For further information, please contact:

David Dey, Executive Chairman
WORLD TELECOM PLC                    Tel No: +44 (0)171 384 5000

Tim Anderson / Lisa Baderoon
BUCHANAN COMMUNICATIONS LIMITED      Tel No: +44(0) 171 466 5000

CHAIRMANS STATEMENT

I am pleased to report a satisfactory half-year for World
Telecom.

There was an increase in turnover of 64% compared to  the
first  half  of  1998.   We  benefited  from  the  Orange
contract,  which  was planned to run for fourteen  months
and  finished in the second quarter.  It had always  been
understood  that  Orange  would take  this  service  "in-
house,  as  soon as it had grown to become a substantial
part of their business.

As  the Orange contract ran down, this allowed us to take
on  the  contract with Cable and Wireless to  handle  the
administration, processing and service to  their  calling
card customers in the United Kingdom.  This included fees
for the systems development and set-up costs incurred  in
bringing this service into World Telecom.

We  won  many new major customers for our Global  Calling
Card  service,  including Bank  of  New  York,  Standard
Chartered Bank, West LB and Norton Rose.

Our  subsidiaries in Spain and Italy had a  disappointing
first  half,  where  the revenues did  not  build  up  as
quickly  as  had been planned.  The management  focus  on
these units has been considerably strengthened.

In   late  May,  Peter  Gelardi  stepped  down  as  Chief
Executive and will remain on the Board as a Non-Executive
Director  until the year end.  I have filled the position
of Executive Chairman for the past four months.

As  you  know, we brought Chris Lance on board as Finance
Director in March, and in May we brought in Steve  Hurdle
from BT as Operations Director.

The  focus  of the Board and the Management has  been  to
tighten considerably the controls on expenditure, improve
the  revenue  from our core services and to  improve  the
quality  of service to our customers.  In addition,  your
Board   continues  to  explore  a  number  of   strategic
initiatives  to exploit the investment we have  made,  in
our value-added services, over the past eighteen months.

These continue to be the focus in the second half of
1999.

UNAUDITED ACCOUNTS FOR THE SIX MONTHS TO 30 JUNE 1999
                                                         
GROUP PROFIT AND LOSS ACCOUNT 
                                       HALF YEAR TO 30 JUNE
                             Note         1999        1998
                                        £' 000       £'000
                                                      
                                                         
Turnover                                15,210       9,286
                                                         
Cost of sales                           (8,406)     (6,519)
                                                         
Gross profit                             6,804       2,767
                                                         
Administrative expenses                 (9,755)     (6,292)
                                                         
Operating loss                          (2,951)     (3,525)
                                                         
Bank interest (payable) /                
receivable                                (201)         18
                                                         
Lease finance payable                     (141)        (32)
                                                         
Loan arrangement fees                     (184)          -
                                                         
Loss on ordinary activities
before taxation                         (3,477)     (3,539)
                                                         
Tax                                          -           -
                                                         
Minority interest                          199          93
                                                         
Loss for the period                     (3,278)     (3,446)
                                                         
Loss (in pence) per             4        (13.0)p    (15.7)p
ordinary share
                                                         
                                                         
UNAUDITED ACCOUNTS FOR THE SIX MONTHS TO 30 JUNE 1999                          
      
                                                         
GROUP BALANCE SHEET                             HALF YEAR
                                               TO 30 JUNE
                             Note         1999       1998
                                         £'000      £'000
                                                         
Tangible fixed assets                    7,991      4,700
Intangible fixed assets                  1,261      1,460
                                         9,252      6,160
Current assets                                           
Debtors                         5        6,418      3,730
Cash at bank and in hand                     -      4,235
                                         6,418      7,965
                                                         
Creditors                                                
Amounts falling due            
within one year                 6       (10,226)   (7,019)
                                                         
Net current assets                      (3,808)       946
                                                         
Creditors                                                
Amounts falling due after                                
more than one year              7       (7,876)      (302)
                                                         
                                                         
Net (liabilities) / assets              (2,432)     6,804
                                                          
Capital and reserves                                     
                                                         
Share capital                   9          504        500
Share premium                           13,751     13,721
Profit and loss account                (16,402)    (7,506)
                                                         
Shareholders' funds                     (2,147)     6,715
Minority interests                        (285)        89
                                                         
                                        (2,432)     6,804
                                                         

UNAUDITED ACCOUNTS FOR THE SIX MONTHS TO 30 JUNE 1999
                                                          
GROUP CASHFLOW STATEMENT                        

                                                 HALF YEAR
                                                TO 30 JUNE
                                 Note     1999        1998
                                         £'000       £'000
Net cash outflow from                             
operating activities               10   (2,909)     (1,032) 

                                                           
Returns on investment and                             
servicing of finance
                                                           
Loan arrangement fee                     (184)           -
Interest (paid)/received                 (201)          18
Interest element of finance                             
lease rental payments                    (141)         (32)

Net cash inflow/(outflow)                                 
from returns
on investment and servicing
of finance                               (526)         (14)
                                                          
                                                          
Capital expenditure                                       
Purchase of tangible fixed          
assets                                 (2,072)      (2,565)
Sale of fixed assets                        -            -
Net cash outflow from capital                             
expenditure                            (2,072)      (2,565)
                                                          
                                                          
                                                          
Net cash outflow before          
financing                              (5,507)      (3,611)
                                                          
Financing                                                 
Drawdown on loan facility               6,763           -
                                                          
Net proceeds from issue of              
shares                                      -       4,905
Capital element of finance                             
lease rental payments                    (466)        (62)

Increase in cash                   11    (790)      1,232
                                                            
NOTES TO THE RESULTS FOR THE SIX MONTHS TO 30 JUNE 1999

1. Preparation of interim report

The  financial  information for the six months  ended  30
June  1999,  which is unaudited and does  not  constitute
statutory   accounts, as defined by s240 of the Companies
Act  1985,  has  been prepared using accounting  policies
consistent   with   those  set   out   in   the   Group's
unqualified  statutory accounts for  the  year  ended  31
December 1998. System development costs incurred  in  the
period  associated  with a customer  contract  have  been
capitalised  within tangible fixed assets and  are  being
depreciated  over  four years. The financial  information
has been reviewed by the auditors and their report is set
out  below.  All amounts in the profit and  loss  account
relate to the Group operations.

The   Group  results  consolidate  the  results  of   the
Company and its subsidiaries for the period ended 30 June
1999.   No dividends were proposed or paid in the  period
Earnings  per share have been calculated by dividing  the
loss  after  taxation  for  each  six  month  period   by
25,176,886  (1998: 21,941,795) being the weighted average
number of ordinary shares in the company.

2. Basis of consolidation
The  Group  results  consolidate  the  results  of  the
Company and its subsidiaries for the period ended 30 June
1999.

 3. Dividends
No dividends were proposed or paid in the period.

4. Earnings per share
Earnings per share have been calculated by dividing the
loss after taxation for each six month period by
25,176,886  (1998: 21,941,795) being the weighted average
number of ordinary shares in the company.

  5. Debtors                                 1999        1998
                                            £'000       £'000
                                             
Trade debtors                               4,221       2,216
     
Other debtors                                 193         299
                                  
Prepayments and accrued                     2,004       1,215
income 
      
                                            6,418       3,730
                                                             
6. Creditors                                 1999        1998
                                            £'000       £'000
Amounts falling due                                                
within one year                               
     
Bank overdraft                                514           - 
Other loans                                   406           -                  
                                          
Trade creditors                             7,180       5,970                  
           
Obligations under                                 
finance leases                                475         529   
Other creditors                                
including taxation                            286         239
Accruals and                                
deferred income                             1,365         281
                                           10,226       7,019
                                                             
7. Creditors                                 1999        1998
                                            £'000       £'000
Amounts falling due after 
more than one year
Bank loan  (note 8.)                        6,763           -
Other loans                                   384           -
Obligations under                              
finance leases                                729         302
    
  
                                            7,876         302
                                                             

8. Bank loan
On  23  December 1998 the group entered into  a  facility
agreement with The Chase Manhattan Bank. Principal  terms
are  as follows: Under the facility he group may draw  up
to  £15m,  subject  to meeting certain  financial  tests,
with  interest  at 3.5% above LIBOR. An  initial  fee  of
£638k  was  payable  on first drawdown,  which  is  being
amortised  over the life of the loan. A variable  fee  is
payable  calculated as a percentage of  the  increase  in
market  capitalisation of the group  between  1  December
1998  and termination date, which is the earlier of final
repayment of the advances or 23 December 2003. The fee is
5% if the termination date occurs before 31 December 1999
and 6.5% if after that date.

9. Share Capital                              1999         1998

   Authorised :                              £'000        £'000
                                                            
30,500,000 ordinary                            
shares of 2p each                              610          610
                                               610          610  
Allotted, called up       
and fully paid :                                                               
                       
25,176,886 ordinary    
shares of 2p each 
(1998 :                                                   
25,010,886 )                                   504          500    
                                   
10. Reconciliation of operating loss to net cash outflow from
operating activities
                                               1999         1998
                                              £'000        £'000
                                                            
Operating loss                               (2,951)      (3,525)
Depreciation                                  1,291          488
Profit on disposal of                            (4)           -
fixed assets
Decrease /                                 
(increase) in
debtors                                       2,540         (544)
(Decrease) /                               
increase in
creditors                                    (3,785)       2,549
                                                               
Net cash outflow from
operating activities                         (2,909)      (1,032)

11. (Debt) / Cash
                                                              
At beginning                                   
of period                                    (3,765)       3,003
Net cash                                    
inflow                                         (790)       1,232
Debt due within one year                        (40)           -
Due due after one year                       (6,256)           -
At end of period                             (9,271)       4,235

The  Interim  Report  will be posted to all  shareholders
and  will also be available on request from : The Company
Secretary,  World Telecom plc,  Quayside  Lodge,  William
Morris Way, London, SW6  2UZ.
                            
REVIEW REPORT BY THE AUDITORS TO
WORLD TELECOM PLC

We  have  been  instructed by the company to  review  the
financial  information  set out on pages 1 to  2  and  we
have  read the other information contained in the interim
report  and  considered whether it contains any  apparent
misstatements  or  material  inconsistencies   with   the
financial information.

The  interim  report, including the financial information
contained therein, is the responsibility of, and has been
approved  by the directors.  The AIM Rules for  Companies
require  that  the  accounting policies and  presentation
applied to the interim figures should be consistent  with
those  applied in preparing the preceding annual accounts
except  where any changes, and the reasons for them,  are
disclosed.

We  conducted  our  review  in accordance  with  guidance
contained  in  Bulletin  1999/4 issued  by  the  Auditing
Practices Board.  A review consists principally of making
enquiries  of  group  management and applying  analytical
procedures  to  the financial information and  underlying
financial  data and based thereon, assessing whether  the
accounting   policies   and   presentation   have    been
consistently  applied  unless   otherwise  disclosed.   A
review  excludes  audit  procedures  such  as  tests   of
controls  and  verification of  assets,  liabilities  and
transactions.  It is substantially less in scope than  an
audit performed in accordance with Auditing Standards and
therefore  provides a lower level of  assurance  than  an
audit.  Accordingly we do not express an audit opinion on
the financial information.

On  the  basis  of  our review we are not  aware  of  any
material  modifications  that  should  be  made  to   the
financial  information as presented for  the  six  months
ended  30 June 1999.

SMITH & WILLIAMSON
REGISTERED AUDITORS
CHARTERED ACCOUNTANTS
LONDON

15th October 1999


                                          

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