RNS Number:4433H
Electric Word PLC
25 July 2001
ELECTRIC WORD PLC
INTERIM RESULTS
* Turnover up by 114%
* 82% of revenue from renewable subscriptions
* 95% of revenue is received in advance
* Direct marketing investment up by 250%
* Growing high margin conference business
* Subscriptions up 47% year-on-year
I am pleased to present the interim results of Electric Word for the six
months ending 31 May 2001.
Following the acquisition last year of two businesses and the launch of five
further newsletters, the objective in the first half of this year has been to
exploit the Group's direct marketing expertise by building the number of
subscriptions and developing the conference business acquired with Lottery
Monitor. This has certainly been achieved so far this year and the Board
remains confident that this can continue into the future as the Group builds
its portfolio of information services focused on education and professional
development.
The education sector
The Group has been helped by its focus on professional education, in schools,
sports science and local government. In schools, two powerful external forces
are driving an increased investment in education and professional development:
higher government spending (guaranteed to grow over the next three years) and
a series of organisational changes that devolve more management responsibility
to schools and creates the need for specialist management support.
Electric Word now publishes nine newsletters in education management for
schools, specialising in areas such as special educational needs, continuing
professional development and curriculum management. Subscriptions in the
schools titles have grown from 2,200 on acquisition in May 2000 to 5,600 in
July 2001 as new titles have become established.
In addition to the schools titles, Electric Word also publishes professional
education newsletters for sports therapists and the fitness industry.
Subscriptions Publishing
The subscriptions model has the benefit of high-quality renewable revenues,
and typically leads to greater revenue stability than advertising-based media
businesses - particularly in an uncertain economic climate. The Group's
ability to invest profitably in direct marketing to generate subscriptions is
a key indicator of its performance. In the first half of this year, that
investment has increased to #280,000 (#80,000 in H1 1999-2000). The impact of
this investment is summarised below, with increases in the number of active
subscriptions, subscriptions revenues, subscriptions cash receipts and the
subscriptions revenue deferred to future periods.
H1 2001 H1 2000
Subscriptions marketing spend #280,000 #80,000
Number of subscriptions 16,500 11,200
Subscriptions revenue 460,000 250,000
Subscriptions cash receipts 550,000 230,000
Deferred subscriptions revenue 450,000 220,000
It should be noted that the Group spreads subscription revenues across the
period of the subscription, whereas all marketing costs are expensed as they
arise.
Trading report since the end of May 2001
All three divisions have reported strong performances in June and early July.
Sports Science
Sports Injury Bulletin was launched last year as a professional development
title for sports physios and other therapists. The title is beating all
expectations and has just achieved (in June) its subscriptions target for the
end of November 2001. Peak Performance, at eleven years the oldest title in
the group, has been continuing a steady growth, with a significant increase in
new subscriptions from the internet and from outside the UK.
Optimus
Following a significant marketing investment in the second quarter, June has
seen the largest number of new orders in a single month since the business was
acquired in May 2000. Particularly encouraging have been the results from
promotions cross-selling between the nine schools products.
Lottery Monitor
It has always been Electric Word's intention to complement newsletters with
other information services that can be sold into the same market sectors, and
the acquisition of Lottery Monitor brought an established conference business
into the group. The fifth annual UK National Conference took place in June
2001 with encouraging results.
The UK National Conference in June was a great success, with the highest
attendance (500 delegates) and revenues in the event's history. Keynote
contributions from Tessa Jowell, the newly-appointed Secretary of State for
Culture and Lord Burns, the Chair of the National Lottery Commission, ensured
that the event dominated the news headlines that day.
The event also again demonstrated the high value of the customer database.
Currently, subscriptions revenues are boosted by an additional 40% of
conference revenues, taking the average revenue per subscriber to #336.
The success of the Lottery Monitor conferences has created the opportunity to
develop further conferences in other parts of the business, particularly in
education management where the first events are planned for 2002.
Acquisitions
The Group continues to explore relevant potential acquisitions, particularly
where there is an opportunity to create value by applying the Group's direct
marketing expertise.
Overall, the board is delighted with both the progress of the business to date
and the future prospects for publishing into the professional education and
local government sectors. In an environment in which many general,
advertising-driven publishers are suffering, Electric Word will continue to
benefit from its focus on niche subscription products.
Nigel Wray, Chairman
Julian Turner, Chief Executive
GROUP PROFIT AND LOSS ACCOUNT Year
6 months 6 months ending
ending ending 30 November
31 May 2001 31 May 2000 2000
(unaudited) (unaudited) (audited)
# # #
TURNOVER 557,389 260,088 639,057
Cost of sales (531,135) (165,678) (463,680)
Gross profit 26,254 94,410 175,377
Other operating expenses (net) (341,249) (123,516) (473,994)
Operating loss before goodwill (314,995) (29,106) (298,617)
amortisation
Goodwill amortisation (70,213) (2,500) (57,762)
OPERATING LOSS (385,208) (31,606) (356,379)
Interest receivable 6,843 7,408 30,298
LOSS ON ORDINARY ACTIVITIES BEFORE
TAXATION (378,365) (24,198) (326,081)
Taxation - - -
LOSS ON ORDINARY ACTIVITIES AFTER
TAXATION (378,365) (24,198) (326,081)
Basic and diluted loss per share (0.56)p (0.05)p (0.62)p
GROUP BALANCE SHEET 31 May 31 May 30 November
At 31 May 2001 2001 2000 2000
(unaudited) (unaudited) (audited)
# # #
FIXED ASSETS
Intangible assets 1,253,271 292,693 1,315,484
Tangible assets 21,734 27,003 25,925
1,275,005 319,696 1,341,409
CURRENT ASSETS
Stocks 7,368 9,200 7,368
Debtors 169,804 25,225 73,701
Cash at bank and in hand 338,307 1,332,085 574,679
515,479 1,366,510 655,748
CREDITORS: Amounts falling due within (628,080) (509,531) (464,388)
one year
NET CURRENT (LIABILITIES)/ASSETS (112,601) 856,979 191,360
TOTAL ASSETS LESS CURRENT LIABILITIES 1,162,404 1,176,675 1,532,769
CREDITORS: Amounts falling due after (40,000) - (400,000)
more than one year
NET ASSETS 1,122,404 1,176,675 1,132,769
CAPITAL AND RESERVES
Called up share capital 770,168 621,429 627,858
Share premium account 1,463,943 986,705 986,705
Merger reserve (96,227) (96,227) (96,227)
Other reserve - - 251,548
Profit and loss account (1,015,480) (335,232) (637,115)
SHAREHOLDERS' FUNDS 1,122,404 1,176,675 1,132,769
GROUP CASH FLOW STATEMENT 6 months 6 months Year
ending ending ending 30
November
31 May 2001 31 May
2000
(unaudited) 2000
(audited)
# (unaudited)
#
#
Cash outflow from operating (240,793) (74,355) (278,545)
activities
Returns on investments and 6,843 7,408 30,298
servicing of finance
Capital expenditure and financial (2,422) (21,766) (27,023)
investment
Acquisitions and disposals - 38,323 (494,234)
CASH OUTFLOW BEFORE FINANCING (236,372 ) (50,390) (769,504)
Financing - 1,286,705 1,293,134
(DECREASE)/INCREASE IN CASH IN THE (236,372) 1,236,315 523,630
PERIOD
NOTES
1. PRESENTATION OF INTERIM RESULTS
The interim report was approved by the Directors on 24 July 2001. The
results for both the current and the comparative half year have not been
audited, but were the subject of an independent review carried out by the
company's auditors, Baker Tilly. The audited results for the year ended 30
November 2000 are an abridged version of the company's report and
financial statements which have been filed with the Registrar of
Companies. The financial information contained in this interim report does
not constitute statutory accounts as defined by Section 240 of the
Companies Act 1985. All shareholders will receive a copy of the interim
report, which can also be obtained from the company's registered office at
67-71 Goswell Road, London EC1V 7EP.
2. DIVIDENDS
The directors do not recommend the payment of a dividend.
3. LOSS PER SHARE
Basic and diluted loss per share is based on the loss on ordinary
activities after taxation and on the following weighted average number
of shares in issue.
31 May 2001 67,256,912
31 May 2000 52,526,400
30 November 2000 52,575,538
Electric Word (LSE:ELE)
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Electric Word (LSE:ELE)
過去 株価チャート
から 7 2023 まで 7 2024
