Final Results
18 Juli 2003 - 6:32PM
UK Regulatory
RNS Number:7404N
Hansard Group PLC
18 July 2003
For immediate Release
18 July 2003
Hansard Group Plc
("Hansard or the "Group")
Final Audited Results for the Year Ended 28 February 2003
Highlights
*Increased revenue to #617,000 (2002: #454,000) 36%
*Reduced loss by #36,000 to #81,000 (2002: #117,000) 31%
*Bid approaches from two firms
*New clients won early in the current year contributing to revenue
*High probability of gains being realised from asset investments in the
current year
Adam Reynolds, Chief Executive, commented,
"I am pleased to report that, in difficult trading conditions, Hansard has
continued to grow its retained client base and commands higher annual retainer
fees than ever before. Our performance is reflected in two bid approaches for
the Group and you will be kept informed of the outcome over the coming weeks.
Our presence in the sector is becoming increasingly strong and Hansard's
services are now the preferred recommendation of several established brokerages.
Our strengths are being acknowledged and I believe that we will deliver
medium-long term value to our shareholders and clients alike."
For further information, please contact,
Adam Reynolds, Chief Executive
Paul Foulger, Finance Director
Ben Simons, Account Executive
Hansard Communications
020 7245 1100 / 0771 309 0135
Chairman's Statement
Hansard Group Plc has faced a challenging climate of uncertainty within the
financial services industry and I am pleased to report that your Company's
performance has been impressive. This is largely due to the determination of
your Chief Executive and his staff in striving to achieve the very best results
in all aspects of the business.
Hansard's retained client base has grown, as have the fees payable. It is of
importance to me that your Company remains active across a broad range of
sectors and I am delighted that we are employed by clients from the property
sector through to sports and entertainment.
As I reported last year, most new clients come to us by way of recommendation.
The sources from which these recommendations come to light have grown
significantly and Hansard Communications is now the preferred recommendation of
several established brokerages.
The Chief Executive has reviewed the activity that your Company has been
involved in during the period. This includes an acquisition that the Board feels
will bring value to the Company and its shareholders through the re-location of
head office. Costs associated with these activities have been written off in the
accounts.
When I last reported to you Hansard was beginning to make its presence known in
the market place as a respected company adviser. This development has continued
and your Company is highly regarded in the financial services industry,
supported by substantial evidence of achievements. With the IPO market showing
evidence of improvement, I am confident that Hansard will benefit in the current
year.
Tony Caplin
Non Executive Chairman
18 July 2003
Chief Executive's Review
The year 2002-2003 has been both challenging and tremendously exciting,
culminating in approaches from two companies with a view to the acquisition of
Hansard Group Plc. NWD Group Plc initially made an approach with a view to
making an offer for the Company in March 2003, but talks terminated two months
later when Sky Venture Capital Inc put forward what the Board believed to be a
more attractive proposal. These discussions are continuing and you will be kept
fully informed of the outcome over the coming weeks.
Although the economy remains uncertain, Hansard has continued to perform
strongly delivering a high quality service for its growing client base. The fact
that we can achieve these results in a challenging environment is evidence that
we are quickly establishing ourselves as a leading Financial Communications and
Investor Relations group. This success is reflected in a 35.9% increase in
turnover in the period to #617,000 (2002: #454,000) and a narrowing of the
losses from #117,000 to #81,000.
At year end the Company had twenty-six retained clients and since then has won
accounts for two companies soon to be listed on AIM. Our increasing involvement
in a wide range of corporate activities ensures that we are well placed to
provide services surrounding almost any corporate transaction. Furthermore,
Hansard is achieving higher annual retainer fees than ever before.
In October the Company made its first acquisition. Alan Bailey (Studios)
Limited, which trades as ABS Communications, is a specialist public relations
company. Since the acquisition Hansard has relocated to the offices of ABS,
providing significant cost savings from day one through more cost effective
premises, making this an astute acquisition.
Hansard Group's current asset investments have suffered due to a general
downturn in the stock market resulting in a diminution in value of #45,000.
Since the year-end, however, market conditions have improved and I am confident
that there is a high probability of gains being realised from these investments
this year.
We continue to exercise prudence with your Company's cash reserves and our
financial position remains strong. The current cash balance stands at #333,000,
with a further #148,000 of liquid resources held on short-term investments.
Outlook
New clients have already been won this year contributing to a further increase
in the Group's revenue. We have continued to improve our organisational
structure to ensure increased efficiency and professionalism and, I believe, we
are providing the highest quality and breadth of services to the small/
medium-cap sector. Our strength is now being acknowledged in the investment
community and I am confident that we will deliver medium to long-term value to
our shareholders and clients alike.
Adam Reynolds
Chief Executive Officer
18 July 2003
Consolidated Profit and Loss Account
2003 2002
#'000 #'000
Turnover 617 454
Cost of sales (33) (45)
------------ -----------
Gross profit 584 409
Administrative expenses (661) (502)
------------ -----------
Operating loss (77) (93)
Interest receivable 19 25
Amounts written off investments (45) (59)
Interest payable (3) (1)
Loss on ordinary activities before taxation (106) (128)
Taxation 25 11
------------ -----------
Retained loss for the financial year (81) (117)
============ ===========
Loss per share Pence Pence
-Basic and diluted loss per ordinary share (0.72) (1.06)
============ ===========
The profit and loss has been prepared on the basis that all operations are
continuing operations.
There were no recognised gains or losses other than those passing through the
profit and loss account.
Balance Sheets
Group Company
2003 2002 2003 2002
#'000 #'000 #'000 #'000
Fixed assets
Tangible assets 128 45 - -
Investments - - 50 50
------ ------ ------- ------
128 45 50 50
------ ------ ------- ------
Current assets
Debtors 134 142 282 76
Investments 174 42 24 19
Cash at bank and in hand 333 530 325 530
------ ------ ------- ------
641 714 631 625
Creditors: amounts falling due within one
year (238) (205) (71) (58)
------ ------ ------- ------
Net current assets 403 509 560 567
------ ------ ------- ------
Total assets less current liabilities 531 554 610 617
Provisions for liabilities and charges - (3) - -
====== ====== ======= ======
Total assets less liabilities 531 551 610 617
======= ======= ======= =======
Capital and reserves
Called up share capital 118 111 118 111
Share premium account 637 583 637 583
Merger reserve (29) (29) - -
Profit and loss account (195) (114) (145) (77)
======= ======= ======= =======
Equity shareholders' funds 531 551 610 617
======= ======= ======= =======
Consolidated Cash Flow Statement
Note 2003 2002
#'000 #'000 #'000 #'000
Net cash inflow/(outflow) from 3 15 (55)
operating activities
Returns on investments and servicing
of finance
Interest received 1 19 25
Interest paid 2 (3) (1)
------ ------
Net cash inflow for returns on 16 24
investments and servicing of
finance
Taxation paid (9)
Capital expenditure
Payments to acquire tangible assets (51) (28)
------ ------
Net cash outflow for capital (51) (28)
expenditure
Acquisition and disposals
Acquisition of subsidiary (5) -
undertaking ------ ------
Net cash outflow before management of
liquid
Resources and financing (34) (59)
Management of liquid resources
Current assets investments (177) (71)
Bank deposits 201 14
------ ------
Net cash inflow/(outflow) for
management of
Liquid resources 24 (57)
Financing
Issue of ordinary share capital - 38
------ ------
Net cash inflow from financing - 38
------ ------
Decrease in cash 4 (10) (78)
====== ======
Notes to the Consolidated Cash Flow Statement
1. Interest receivable 2003 2002
#'000 #'000
Bank interest received 19 25
2. Interest payable 2003 2002
#'000 #'000
On bank loans and overdrafts 3 1
3. Reconciliation of operating loss to net cash inflow/
(outflow) from operating activities
2003 2002
#'000 #'000
Operating loss (77) (93)
Depreciation 22 12
Decrease/(increase) in debtors 69 (33)
Increase in creditors 1 59
======== =======
Net cash inflow/(outflow) from operating activities 15 (55)
======== =======
4. Analysis of net (debt)/funds
1 March Cash Flow Non Cash Flow 28 February
Movements Movements
2002 #'000 #'000 2003
#'000 #'000
Net cash:
Cash at Bank 4 4 - 8
Bank overdrafts (58) (14) - (72)
Net funds (54) (10) - (64)
Liquid resources:
Current asset investment 42 177 45 174
-------- --------- ----------- ---------
Bank deposits 526 (201) - 325
-------- --------- ----------- ---------
568 (24) (45) 499
-------- --------- ----------- ---------
======== ========= =========== =========
Net funds/(debts) 514 (34) (45) 435
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This information is provided by RNS
The company news service from the London Stock Exchange
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