RNS Number:3586T
Advance Visual Communications PLC
17 December 2003
For immediate release 17 December 2003
Advance Visual Communications Plc ("AVC" or the "Company")
Preliminary results for the year ended 30th June 2003
Chairman's Statement
Background
As mentioned in the interim report, the first half of the financial year was a
period for tidying up the Group's remaining business interests following the
closure of the last two operating subsidiaries, Advance Digital Productions
Limited and Advance London Limited, on 4 July 2002. The Head Office premises
were closed, all remaining office equipment and assets disposed of and all
related trade creditors settled. After completing these and a number of other
outstanding tasks, Andrew Cooke resigned from the Board on 31 December 2002.
Group costs have now been reduced to a minimum and there are no full time
employees in the Company. Ongoing operating costs relate principally to
maintaining the Company's trading facility on AIM. The Board consists of myself,
Graham Leask and Massoud Amiri, all non-executive directors.
Advance Visual Communications SA in Geneva made a distribution of #40,000 to AVC
in December following the sale of its business assets and operations last year.
The liquidation process for this Company is nearly complete and any further
distributions are expected to be very modest.
Results
Revenues for the twelve months ended 30 June 2003 were #Nil, which reflects the
closure of the Group's remaining operating activities at the end of the previous
year.
Losses after taxation for the year were #197,522 compared with a #4,436,058 loss
for the prior year. This reflects the greatly reduced running costs and the
second half loss from continuing operations of #54,026 is a clear indication of
the current running costs of the Company.
The UK cash balances at the end of the year were #189,000. By 30 November 2003,
these had reduced to #135,000.
Prospects
Your Board continues to assess various appropriate opportunities with a view to
seeking a new business for the Company. The criterion which the Board had set
was to identify good quality profitable businesses, the logic being that a
reverse acquisition of such a business by AVC could prove to be an attractive
route to market for the target Company and one which may allow your Board to
create value over the longer term for shareholders.
During the first half of the year, the vast majority of approaches were from
businesses at an early stage of their development and which were considered to
have an inappropriate risk profile. The level of market uncertainty also proved
to be a limiting factor affecting both the quality and the number of the
approaches received, as well as the prospects of a fundraising to support an
acquisition. There has been a distinct improvement since the ending of the Iraq
war and confidence has gradually returned to the market. We started to see a
number of better quality opportunities emerging during the summer and this
situation has continued to be the case since the year end. The prospects of a
reverse takeover being achieved have certainly improved in recent months and we
remain focussed upon succeeding in finding the right opportunity.
Barclay Douglas
Chairman of the Board
17 December 2003
Advance Visual Communications Plc
Consolidated Profit and Loss Account
Year ended 30 June 2003
Consolidated profit and loss account Note Year ended Year ended
30 June 4 July
2003 2002
# #
TURNOVER
Continuing operations - -
Discontinued operations - 1,081,102
OPERATING LOSS
Continuing operations (145,021) -
Discontinued operations (99,336) (1,795,915)
(244,357) (1,795,915)
Profit/(Loss) on disposal and liquidation of 40,070 (2,649,907)
subsidiaries
Interest receivable (bank interest) 7,052 31,750
Interest payable and similar charges (287) (10,179)
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (197,522) (4,424,251)
Tax on loss on ordinary activities - (11,807)
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION FOR THE
FINANCIAL YEAR WITHDRAWN FROM RESERVES (197,522) (4,436,058)
BASIC LOSS PER ORDINARY SHARE 2 (0.1)p (2.8)p
DILUTED LOSS PER ORDINARY SHARE 2 (0.1)p (2.8p)
Advance Visual Communications Plc
Consolidated Balance Sheet as at 30 June 2003
Consolidated Balance Sheet Note 30 June 4 July
2003 2002
# #
FIXED ASSETS
Tangible - 858
CURRENT ASSETS
Debtors 15,175 12,925
Cash at bank and in hand 200,886 410,785
216,061 423,710
CREDITORS: amounts falling due within one year (47,234) (58,219)
NET CURRENT ASSETS 168,827 365,491
TOTAL ASSETS LESS CURRENT LIABILITIES 168,827 366,349
CAPITAL AND RESERVES
Called up share capital 1,615,755 1,615,755
Share premium account 6,634,893 6,634,893
Merger reserve 1,645,924 1,645,924
Profit and loss account (9,727,745) (9,530,223)
TOTAL EQUITY SHAREHOLDERS' FUNDS 4 168,827 366,349
Advance Visual Communications Plc
Consolidated Cash Flow Statement
Year ended 30 June 2003
Consolidated cash flow statement Note Year ended Year ended
30 June 4 July
2003 2002
# #
Net cash outflow in respect of operating activities 3 (256,734) (1,692,718)
Returns on investments and servicing of finance
Interest received 7,052 31,750
Interest and interest element of finance lease (287) (10,179)
rentals
Net cash inflow from returns on investments and
servicing of finance 6,765 21,571
Purchase of tangible fixed assets - (41,480)
Net cash outflow from capital expenditure and
financial investment - (41,480)
Taxation
Overseas taxation paid - (11,807)
Acquisitions and disposals
Purchase of subsidiary undertaking - (20,856)
Net cash acquired with subsidiary/business - 2,448
Distribution from subsidiary in liquidation 40,070 -
Net cash inflow / ( outflow) from
acquisitions and disposals 40,070 (18,408)
Net cash outflow before financing (209,899) (1,742,842)
Financing
Capital element of finance lease rentals - (54,384)
Repayment of long term loans - (81,155)
Issue of ordinary share capital - 2,000
Net cash outflow from financing - (133,539)
Decrease in cash (209,899) (1,876,381)
Advance Visual Communications Plc
Consolidated Statement of Total Recognised Gains and Losses
Year ended 30 June 2003
Statement of total recognised gains and losses Year ended Year ended
30 June 4 July
2003 2002
# #
Loss for the financial year and total recognised gains and
losses relating to the year (197,522) (4,436,058)
Notes on the Preliminary Results
1. The financial information incorporated in this announcement does not
constitute full statutory accounts within the meaning of the Companies Act
1985 but is derived from those accounts. Full accounts for the year ended 4
July 2002 upon which Deloitte & Touche have given an unqualified audit
report have been filed with the Registrar of Companies. Full accounts for
the year ended 30 June 2003 upon which Deloitte & Touche LLP have given an
unqualified audit report will be filed with the Registrar of Companies in
due course. Neither report contained statements under Section 237(2) or (3)
of the Companies Act 1985.
2. The calculation of basic loss per share is based on the loss attributable to
ordinary shareholders divided by the weighted average number of shares in
issue during the period of 161,575,486 (2002: 160,683,819). FRS 14 requires
presentation of diluted earnings per share when a company could be called
upon to issue shares that would decrease net profit or increase net loss per
share. For a loss making company with outstanding share options, net loss
per share would only increase by the exercise of out-of-the-money options.
Since it is inappropriate to assume that the option holders would act
irrationally and there are no other diluting future share issues for the
current year, diluted loss per share equals basic loss per share.
3. Reconciliation of operating loss to net cash outflow from operating
activities:
Year ended Year ended
30 June 4 July
2003 2002
# #
Operating loss (244,357) (1,795,915)
Profit/(loss) on disposal and liquidation of - (2,649,907)
subsidiaries.
Loss before interest and tax (244,357) (4,445,822)
Depreciation 858 160,993
Amortisation of intangible assets - 2,322,299
Loss on disposal of tangible fixed assets - 331,228
Decrease in stock - 176,452
(Increase)/decrease in debtors (2,250) 408,634
(Decrease) in creditors (10,985) (552,000)
Non cash movement - (94,502)
Net cash outflow in respect of operating activities (256,734) (1,692,718)
4. Reconciliation of movements in consolidated equity shareholders' funds:
Year ended Year ended
30 June 4 July
2003 2002
# #
Loss for the financial year (197,522) (4,436,058)
Issue of shares - 132,625
Net reduction in equity shareholders' funds (197,522) (4,303,433)
Opening equity shareholders' funds 366,349 4,669,782
Closing equity shareholders' funds 168,827 366,349
5. The Registered Office of the Company is 1 City Square, Leeds, West Yorkshire,
LS1 2AL. Copies of the Annual Report and Accounts may be obtained from the
Company Secretary at this address.
6. This announcement has been prepared on the basis of the accounting policies
as stated in the previous years' financial statements.
Enquiries:
Advance Visual Communications Plc
Graham Leask 01628 552 000
Shore Capital
Alex Borrelli / Simon Edwards 020 7408 4090
This information is provided by RNS
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