TIDMTOU
RNS Number : 5000Z
Touch Group PLC
23 September 2009
TOUCH GROUP PLC
('Touch' or 'the Group')
Unaudited Interim Report for the Six Months Ended 30 June 2009
Change of registered address
Touch Group plc, the international business-to-business publishing group, today
announces its unaudited interim results for the six-month period ended 30 June
2009.
Highlights
+----------------------------+--------------+--+----------------+--+
| | 2008 | | 2009 | |
+----------------------------+--------------+--+----------------+--+
| Turnover | GBP2,905,000 | | GBP2,386,000 | |
+----------------------------+--------------+--+----------------+--+
| Trading loss* | (GBP386,000) | | (GBP793,000) | |
+----------------------------+--------------+--+----------------+--+
| Net loss | (GBP386,000) | | (GBP1,031,000) | |
+----------------------------+--------------+--+----------------+--+
| Orders carried forward | 1,465,000 | | 1,451,000 | |
+----------------------------+--------------+--+----------------+--+
* "Trading loss" refers to operating loss before the impact of investment
impairments, fixed asset impairments, share based payment charges and credits
and other operating income.
Chairman's Statement
Dear Shareholders
In our last Report and Accounts, I made the statement that in the year 2009 we
would make our maiden profit, and I set out many of the reasons explaining how.
It has now become clear to us that this target will not be met, primarily
because more time is required to complete the sales cycle. The focus of our
business has moved to a more sustainable income stream from adverts to content
in line with the needs and requirements of the pharmaceutical industry.
Many of you, in fact the vast majority, have been shareholders of Touch for a
considerable period of time. You have seen massive change in our business and
the divestation of three companies:
Moneybox plc, the ATM Company, which was demerged in 2004 and
GBP29million returned to
shareholders.
In September 2005, Touch Vision, a company providing audio visual facilities to
retailers, which we sold for the best part of GBP3million. GBP800,000 in cash,
the balance in shares of the purchasing company.
The third company divested was, in 2006, the business called Touch Local, an
internet directory business. We took the view that Touch Local, to be
successful, would require massive investment, which we were not prepared to
seek. A venture capitalist company invested GBP7million in Touch Local,
leaving us with a stake of 27.5% and we subsequently sold substantially all of
this stake for GBP2 million.
This GBP2 million has been invested exclusively in our Medical and Energy
publishing business (in print and online) and building a Medical Communication
Division to enable us to initiate content deals.
In May this year we relocated our offices as a result of a compulsory purchase
order being served on the business. Whilst we expect the full cash cost of this
move to the new property to be met by the Government we have incurred a non-cash
fixed asset impairment charge of GBP230,000. Going forward the move will
benefit the Company with a lower rent cost and the release of the GBP575,000
rental deposit which was received in May.
Today the Company has a substantial infrastructure and is clearly operating in
the right arenas, has built and established a talented and motivated management
team and, notwithstanding the economy which we have factored in, is poised to
achieve positive results which we believe are scaleable. Thank you for your
patience and your support - the best is yet to come and the real value of your
Company will be properly recognised.
VINCENT ISAACS
EXECUTIVE CHAIRMAN
23 September 2009
Chief Executive Officer's Summary
At the beginning of this year we calculated what our results would be - we said
that 2009 would see the deliverance of our first net profit. During the first
half, as part of our calculations, we were scheduled to make a net loss of
GBP500,000. However, during the course of this financial year there has been a
significant publishing realignment of journals (bringing our sales process and
book schedules into sync) and major readjustments (closing of content deals
earlier in the sales cycle) that also cost us revenue and increased the deficit
to GBP790,000. The benefits from lower rent and the reorganisation and
outsourcing of certain functions will be realised in the second half.
We continue to grow the intrinsic value of the business, by focussing on
delivering profitability on a product mix that will keep pace with the needs of
the major players in our markets:
* Clinical therapeutic journals are published and distributed in print and
digitally. Revenue is derived from content support, advertising and reprints.
* The mix of energy journals, also distributed in print and digitally, has been
augmented with the launch of Modern Energy Review, which consolidates content
and advertising in the alternative energy sector, particularly wind. Revenue is
derived from advertising.
* Our energy online community, Touch Oil and Gas, continues to generate revenue
from the sale of supplier profiles.
* We have six online clinical communities, with content from and links to a
variety of sources, including our own journals, the Cleveland Clinic Journal,
the Mayo Clinic, Cambridge University Press and all relevant media partners.
These communities are now being monetised, principally as distribution outlets
for medical communication from major players in the pharmaceutical industry. We
have a further ten communities which are being developed and nourished awaiting
to emerge, at present residing in the Touch Briefings website.
* Our Medical Communications team, comprised of medical writers and project
managers, has expanded in line with the demands of pharmaceutical companies for
outsourcing their healthcare communications. Our capability in Medical
Communications has brought to Touch a compelling customer proposition: we create
content for our clients, and promote across our print and online channels.
Having our own distribution channels differentiates us from pure medcomms
competitors, and having a medcomms capability differentiates us from pure
journal publishers. The proof of the success of this custom built model is
starting to be evidenced by an increase in composite deals: contracts with
pharma companies that require delivery of content across online, print and
scheduled journals.
All product and revenue drivers are backed up by a publishing department that
has been restructured and refined to maximise outsourcing opportunities and to
deliver products of ever higher quality content.
DR THERESA SAKLATVALA
CHIEF EXECUTIVE OFFICER
23 September 2009
For further information please contact:
Touch Group PLC
Vincent Isaacs
Executive Chairman Tel: 020 7452 5222
Shore Capital and Corporate Limited
Nominated adviser to the Company
Dru Danford/Edward Mansfield Tel: 020 7408 4090
CONSOLIDATED INCOME STATEMENT
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| | | Unaudited | | Unaudited | | Audited |
| | | Six | | Six | | Year |
| | | months | | months | | ended |
| | | ended | | ended | | 31 |
| | | 30 June | | 30 June | | December |
| | | 2009 | | 2008 | | 2008 |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| | Notes | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| CONTINUING OPERATIONS | | | | | | |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| Revenue | 3 | 2,386 | | 2,905 | | 6,290 |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| Cost of sales | | (1,347) | | (1,457) | | (3,296) |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| GROSS PROFIT | | 1,039 | | 1,448 | | 2,994 |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| Administrative expenses | 3 | (1,832) | | (1,844) | | (3,668) |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| Other operating expenses-impairment | 3 | (230) | | - | | (99) |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| OPERATING LOSS | | (1,023) | | (396) | | (773) |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| Investment revenue | | 3 | | 31 | | 44 |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| Finance costs | | (11) | | (21) | | (40) |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| LOSS BEFORE TAX | | (1,031) | | (386) | | (769) |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| Tax | | - | | - | | - |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| LOSS FOR THE PERIOD | | (1,031) | | (386) | | (769) |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| | | | | | | |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| LOSS PER SHARE | 4 | Pence | | Pence | | Pence |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| Basic | | (0.88) | | (0.34) | | (0.7) |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| Diluted | | (0.88) | | (0.34) | | (0.7) |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
| | | | | | | |
+----------------------------------------+-------+-----------+--+-----------+--+-----------+
CONSOLIDATED BALANCE SHEET
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| | | Unaudited | | Unaudited | | Audited |
| | | As at | | As at | | As at 31 |
| | | 30 June | | 30 June | | December |
| | | 2009 | | 2008 | | 2008 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| | Notes | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| NON-CURRENT ASSETS | | | | | | |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| Intangible assets | | 407 | | 304 | | 425 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| Property, plant and equipment | | 157 | | 426 | | 434 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| Investments | | 50 | | 149 | | 50 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| | | 614 | | 879 | | 909 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| CURRENT ASSETS | | | | | | |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| Inventories | | 272 | | 344 | | 312 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| Trade and other receivables | | 2,989 | | 3,203 | | 3,162 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| Cash and cash equivalents | | 338 | | 905 | | 531 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| | | 3,599 | | 4,452 | | 4,005 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| TOTAL ASSETS | | 4,213 | | 5,331 | | 4,914 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| | | | | | | |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| CURRENT LIABILITIES | | | | | | |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| Trade and other payables | | (1,492) | | (1,669) | | (1,645) |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| Borrowings | | (725) | | (500) | | (450) |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| | | (2,217) | | (2,169) | | (2,095) |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| | | | | | | |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| NET CURRENT ASSETS | | 1,382 | | 2,283 | | 1,910 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| | | | | | | |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| NON-CURRENT LIABILITIES | | | | | | |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| Obligations under finance leases | | (26) | | (25) | | (18) |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| | | | | | | |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| NET ASSETS | | 1,970 | | 3,137 | | 2,801 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| | | | | | | |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| EQUITY | | | | | | |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| Issued share capital | 5 | 1,179 | | 1,112 | | 1,112 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| Share premium account | 5 | 4,055 | | 3,922 | | 3,922 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| Other reserve | | 300 | | 300 | | 300 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| Retained (loss) / earnings | | (3,564) | | (2,197) | | (2,533) |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
| TOTAL EQUITY | | 1,970 | | 3,137 | | 2,801 |
+---------------------------------------+--------+-------------+--+-----------+--+-----------+
CONSOLIDATED CASH FLOW STATEMENT
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| | | | Unaudited | | Unaudited | | Audited |
| | | | As at | | As at | | As at 31 |
| | | | 30 June | | 30 June | | December |
| | | | 2009 | | 2008 | | 2008 |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| | | | GBP'000 | | GBP'000 | | GBP'000 |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Operating loss for the period | | | (1,031) | | (396) | | (773) |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Adjustments for | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Depreciation of property, plant | | | 67 | | 49 | | 86 |
| and equipment | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Amortisation of intangibles | | | 18 | | 30 | | 88 |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Fixed asset impairment | | | 230 | | - | | - |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Investment impairment | | | - | | - | | 99 |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Share based payment charge / | | | 6 | | 24 | | 71 |
| (credit) | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Operating cash flows before movements in | (710) | | 293 | | (429) |
| working capital | | | | | |
+-------------------------------------------------+-----------------+--+---------------+--+------------+
| | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| (Increase) / decrease in | | | 40 | | (179) | | (146) |
| inventories | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| (Increase) / decrease in | | | 584 | | (203) | | (526) |
| receivables | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Increase / (decrease) in payables | | | (158) | | 6 | | (29) |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Cash flows from operating | | | (244) | | (669) | | (1,130) |
| activities | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Investing activities | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Interest received | | | 3 | | 31 | | 44 |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Interest and similar expenses paid | | | (4) | | (21) | | (40) |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Acquisition of plant, property and | | | (20) | | (8) | | (98) |
| equipment | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Acquisition of intangible assets | | | - | | (40) | | (219) |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Net cash used in / from investing | | | (21) | | (38) | | (313) |
| activities | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Financing activities | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| New borrowings | | | 275 | | - | | - |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Repayment of borrowings | | | - | | (150) | | (200) |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Invoice debt financing acquired | | | (411) | | - | | 364 |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Finance lease borrowings acquired | | | 13 | | - | | 56 |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Capital lease repayments | | | (5) | | (9) | | (17) |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| New shares issued | | | 200 | | - | | - |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Net cash from/(used in) financing | | | 72 | | (159) | | 203 |
| activities | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Net decrease in cash and cash equivalents | (193) | | (866) | | (1,240) |
+-------------------------------------------------+-----------------+--+---------------+--+------------+
| Cash and cash equivalents at | | | 531 | | 1,771 | | 1,771 |
| beginning of period | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
| Cash and cash equivalents at | | | 338 | | 905 | | 531 |
| period end | | | | | | | |
+------------------------------------+--+---------+-----------------+--+---------------+--+------------+
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
These accounts comply with relevant accounting standards and have been prepared
on a consistent basis using the accounting policies set out in the Annual Report
and Accounts 2008.
2. NATURE OF INFORMATION
The interim accounts for the six months ended 30 June 2009 and the comparative
figures for the six months ended 30 June 2008 are not audited by the Company's
auditors.
The financial statements for the twelve months ended 31 December 2008 have been
reported on by the Company's auditors and delivered to the Registrar of
Companies. The report of the auditors on such accounts was unqualified and did
not contain any statement under sections 237(2) or 237(3) of the Companies Act
1985.
3. BUSINESS AND GEOGRAPHICAL SEGMENTS
Business Segments
The revenue and operating loss of the Group are derived solely from continuing
operations. The directors consider that the business operates within one
business segment, that of multimedia marketing.
Included within administrative expenses is a share based payment charge of
GBP6,000 (2008 - GBP24,000)
Geographical Segments
+--------------------------------+------+-------------+---+------------+---+------------+
| | | Unaudited | | Unaudited | | Audited |
| | | Six months | | Six months | | As at 31 |
| | | ended | | ended | | December |
| | | 30 June | | 30 June | | 2008 |
| | | 2009 | | 2008 | | |
+--------------------------------+------+-------------+---+------------+---+------------+
| Revenue by destination: | | GBP'000 | | GBP'000 | | GBP'000 |
+--------------------------------+------+-------------+---+------------+---+------------+
| Rest of Europe | | 1,183 | | 1,518 | | 3,029 |
+--------------------------------+------+-------------+---+------------+---+------------+
| U.S.A | | 819 | | 1,130 | | 2,242 |
+--------------------------------+------+-------------+---+------------+---+------------+
| United Kingdom | | 318 | | 129 | | 646 |
+--------------------------------+------+-------------+---+------------+---+------------+
| Rest of World | | 66 | | 128 | | 373 |
+--------------------------------+------+-------------+---+------------+---+------------+
| | | 2,386 | | 2,905 | | 6,290 |
+--------------------------------+------+-------------+---+------------+---+------------+
| Operating loss by destination: | | | | | | |
+--------------------------------+------+-------------+---+------------+---+------------+
| Rest of Europe | | (387) | | (194) | | (372) |
+--------------------------------+------+-------------+---+------------+---+------------+
| U.S.A | | (290) | | (145) | | (296) |
+--------------------------------+------+-------------+---+------------+---+------------+
| United Kingdom* | | (328) | | (41) | | (79) |
+--------------------------------+------+-------------+---+------------+---+------------+
| Rest of World | | (18) | | (16) | | (46) |
+--------------------------------+------+-------------+---+------------+---+------------+
| | | (1,023) | | (396) | | (773) |
+--------------------------------+------+-------------+---+------------+---+------------+
| Segment assets: | | | | | | |
+--------------------------------+------+-------------+---+------------+---+------------+
| All United Kingdom | | 4,213 | | 5,331 | | 4,914 |
+--------------------------------+------+-------------+---+------------+---+------------+
*The loss in the UK of GBP328,000 includes the non-cash fixed asset
impairment of GBP230,000 due to the relocation of the
business. The relocation was required due to a compulsory purchase order being
served on the business. We expect all cash costs of the move to the new property
to be met by the Government.
The move to the new property will benefit the Company going forward with a lower
rent cost and the release of the GBP575,000 rental deposit which was received in
May.
NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued)
4. LOSS PER SHARE
The calculation of the basic and diluted earnings per share is based on the
following data:
+---------------------------------------+----+-------------+--+-------------+--+-------------+
| | | Unaudited | | Unaudited | | Audited |
| | | Six | | Six | | As at 31 |
| | | months | | months | | December |
| | | ended | | ended | | 2008 |
| | | 30 June | | 30 June | | |
| | | 2009 | | 2008 | | |
| | | | | | | |
+---------------------------------------+----+-------------+--+-------------+--+-------------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------------+----+-------------+--+-------------+--+-------------+
| The calculation of basic and diluted | | | | | |
| earnings per share is based on the | | | | | |
| following data: | | | | | |
+--------------------------------------------+-------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------------------+----+-------------+--+-------------+--+-------------+
| Earnings: | | | | | | |
+---------------------------------------+----+-------------+--+-------------+--+-------------+
| Earnings for the purposes of basic and | (1,031) | | (386) | | (769) |
| diluted earnings per share | | | | | |
+--------------------------------------------+-------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------------------+----+-------------+--+-------------+--+-------------+
| Number of shares: | | Shares | | Shares | | Shares |
+---------------------------------------+----+-------------+--+-------------+--+-------------+
| Weighted average number of shares for | | 117,673,403 | | 111,191,921 | | 111,191,921 |
| the purposes of basic and diluted | | | | | | |
| earnings per share | | | | | | |
+---------------------------------------+----+-------------+--+-------------+--+-------------+
| Some options granted to employees could potentially dilute basic earnings per share |
| in the future, but were not included in the calculation of diluted earnings per |
| share as they are anti dilutive for the period presented. |
| |
+---------------------------------------+----+-------------+--+-------------+--+-------------+
5. SHARE CAPITAL
On 6th January 2009 the Company issued 6,666,667 shares of 1 pence nominal value
at a price of 3 pence per share, raising GBP0.2 million in funding for the
business.
6. CHANGE OF REGISTERED ADDRESS
The Company has changed it registered address to Saffron House, 6-10 Kirby
Street, London EC1N 8TS.
7. AVAILABILITY OF ACCOUNTS
Copies of these interim results are available from Touch Group plc, Saffron
House, 6-10 Kirby Street, London EC1N 8TS. Alternatively a downloadable version
is available from the following web address: www.touchbriefings.com/reports.htm.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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