RNS Number:3669Q
Invox PLC
01 October 2003
This statement updates the announcement of the Company's preliminary results for
the year ended 30 June 2003, which was released on 22 September 2003 under RNS
number 9949P. The only amendments are to the column headings in the Group Profit
and Loss Account and Cashflow Statement where the period ends (30 June 2003 and
30 June 2002) had been incorrectly transposed in the original announcement.
There have been no changes to any of the figures. The full text of the
announcement, incorporating the amendments, appears below.
Invox plc ("Invox" or "the Company)
Preliminary Results for the year ended 30 June 2003
Highlights:
1. Major advance on previous year
2. Pre-tax profits #6.1 million before goodwill amortisation
3. Earnings per share 27.0p before goodwill amortisation
4. Strong cash generation
5. Annual dividend rises to 20p (2002: 7p)
6. Encouraging start to the current year
Chairman's statement
I am pleased to report that the year to 30 June 2003 was an excellent one for
the Company. We are in a very good position to achieve further progress.
Profits before tax and amortisation of goodwill were #6.1 million (2002: #3.4
million). After amortisation, profits before tax amounted to #5.0 million (2002:
#2.6 million). The 2002 results included only 10 months for TPC Telecoms
Limited, the business acquired during that year, which forms the group's main
trade. Like-for-like 12-month profits before tax and goodwill amortisation were
#6.1 million (2002: #4.4 million), an improvement of 39 per cent. Diluted
earnings per share were 27.0p before goodwill amortisation (2002: 20.3p), and
20.3p after goodwill amortisation (2002: 13.5p).
The directors are proposing a final dividend of 16p, which means that the total
dividend therefore rises to 20p, compared with 7p last year. We generated more
than #4.8 million cash in the course of the year, so even after the payment of
the final dividend costing #2.6 million we would still have had net cash of
almost #4.5 million as at the date of the year-end balance sheet: more than
enough for our anticipated needs. In future years consideration will be given to
buy-backs of the Company's shares as a means of returning cash to shareholders.
As well as producing strong financial results, the last year has also seen
significant developments in the Company's business which in the Directors'
opinion make it much stronger than it was a year ago. We see ourselves
increasingly as a home gaming company, and the results demonstrate the great
strength of our proprietary database of customers. Some three million customers
are now registered with us, giving us, we believe, the country's biggest
database of known home-gamers. Most of our profit comes from existing customers,
and our aim is to make it enjoyable and rewarding for them to participate in the
games and come back for more.
We are keen to market other home gaming products to our customers and a number
of trials are either underway or about to begin. These trials are designed to
assess the appetite of our customers for services such as paid-for internet
games, interactive TV gaming and fixed-odds betting. Our financial risk on these
trials is minimal.
The bulk of our revenue comes from premium-rate telephony, but in recent months
we have seen a growing number of customers choosing to respond to the
competitions by SMS messaging. Not only is this more convenient for some
customers, but in our opinion most of it is new, incremental business. Among our
objectives for the current year is to build one of the largest opted-in SMS
databases in the country, which should provide a number of new opportunities.
Above all, however, we are looking forward with confidence to progress in the
Company's core business. The Company's success up to now has been based on
unbranded competitions. We are only just beginning to consider the possibilities
for branded promotions linked to well-known consumer entertainments.
Shareholders
During the year we have welcomed a number of institutional investors to the
register.
Current trading
Although our trading year starts with the quieter school holiday months,
business so far has been encouraging. We are confident that the year should
bring further improvement in the core business and some interesting developments
outside the core.
Dividends
If approved by shareholders at the Annual General Meeting to be held on 07
November 2003, a final divdend of 16p per share will be paid on 28 November 2003
to shareholders who are on the register on 31 October 2003.
Stephen Hargrave 22 September 2003
Chairman
Group profit and loss account
for the year ended 30 June 2003
Year ended 15 months to
30 June 2003 30 June 2002
Note #000 #000
Turnover 18,185 13,294
Cost of sales (11,125) (8,999)
------------ ------------
Gross profit 7,060 4,295
Administrative expenses (including
goodwill
amortisation of #1,079,000 (2002: (2,112) (1,783)
#816,000))
------------ ------------
Operating profit 4,948 2,512
Interest receivable and similar 241 207
income
Interest payable (176) (130)
------------ ------------
Profit on ordinary activities before 5,013 2,589
taxation
Tax on profit on ordinary 2 (1,758) (958)
activities
------------ ------------
Profit for the financial period 3,255 1,631
Dividends 3 (3,211) (1,019)
------------ ------------
Retained profit for the period 44 612
============ ============
Earnings per ordinary share - 4 20.3p 14.7p
basic
Adjusted earnings per ordinary 4 27.0p 22.1p
share
Fully diluted earnings per ordinary 4 20.3p 13.5p
share
Adjusted fully diluted earnings per 4 27.0p 20.3p
ordinary share
============ ============
All results are from continuing operations.
The group had no recognised gains or losses in either period other than those
included in the profit and loss account.
Group balance sheet
at 30 June 2003
30 June 2003 30 June 2002
Note #000 #000 #000 #000
Fixed assets
Intangible assets 14,312 15,391
- goodwill
Tangible assets - 42
------------ ----------
14,312 15,433
Current assets
Stock - 65
Debtors 211 630
Cash at bank 9,892 5,075
---------- -----------
10,103 5,770
Creditors: amounts (9,536) (6,165)
falling due within
one year
---------- -----------
Net current assets 567 (395)
/(liabilities)
------------ ----------
Total assets less 14,879 15,038
current
liabilities
Creditors: amounts
falling due after
more than one year (204) (407)
------------ ----------
Net assets 14,675 14,631
============ ==========
Capital and
reserves
Called up share 8,028 7,278
capital
Shares to be - 1,500
issued
Share premium 1,004 1,004
account
Merger reserve 5,355 4,954
Profit and loss 288 (105)
account
------------ ----------
Equity shareholders' 5 14,675 14,631
funds
============ ==========
Group cash flow statement
for the year ended 30 June 2003
Note Year ended to 15 months
30 June 2003 30 June 2002
#000 #000
Net cash inflow from operating 6 7,635 3,520
activities
Returns on investments and servicing of 65 77
finance
Taxation (1,446) (1,574)
Acquisitions and disposals - 1,359
Equity dividends paid (1,224) (437)
------------ ------------
Net cash inflow before management of
liquid resources and financing 5,030 2,945
Management of liquid resources - (2,562)
Financing (213) -
------------ ------------
Increase in cash in the period 4,817 383
============ ============
Reconciliation of net cash flow to movement in net funds
for the year ended 30 June 2003
Year ended 15 months
to 30 June 2003 30 June 2002
#000 #000
Increase in cash in the period 4,817 383
Cash outflow from increase in liquid - 2,562
resources
Repayment of loan notes 213 -
------------- -------------
Changes in net funds resulting from 5,030 2,945
cash flows
Issue of loan notes on acquisition of - (3,110)
subsidiary
------------- -------------
Movement in net funds in the period 5,030 (165)
Net funds at beginning of period 1,965 2,130
------------- -------------
Net funds at end of period 6,995 1,965
============= =============
Notes to the preliminary results for the period ended 30 June 2002
1. Basis of preparation
The financial statements have been prepared in accordance with applicable
Accounting Standards and under the historical cost accounting rules.
The above financial information, which has been extracted from the audited
accounts of the Company, does not constitute statutory accounts within the
meaning of S240 Companies Act 1985.
The information relating to the period ended 30 June 2002 is extracted from
the audited accounts of the Company, which have been filed at Companies
House and on which the auditors have issued an unqualified opinion.
2. Tax on profit on ordinary activities
Year ended 15 months to
30 June 2003 30 June 2002
#000 #000
UK corporation tax
Current tax on income for the period 1,718 969
Adjustments in respect of prior periods 40 1
------------- -------------
Total current tax 1,758 970
Deferred tax
Reversal/(origination) of timing - (12)
differences
------------- -------------
Tax on profit on ordinary activities 1,758 958
============= =============
3. Dividends
Year ended 15 months to
30 June 2003 30 June 2002
#000 #000
Interim dividend of 4.0p (2002: 642 437
3.0p) per share
Final dividend of 16.0p (2002: 2,569 582
4.0p) per share
---------------- ----------------
3,211 1,019
================ ================
4. Earnings per ordinary share
Earnings per ordinary share has been calculated by dividing the profit for
the financial period of #3,255,000 (2002: #1,631,000) by the weighted
average number of ordinary shares in issue during the period, including
shares to be issued as deferred consideration from the date the condition
for their issue was met, of 16,056,667 (2002: 11,060,000 ).
The adjusted earnings per share figure excludes goodwill amortisation to
provide a more accurate assessment of the earnings of the Group. Accordingly
the figures have been given on the face of the profit and loss account and
can be reconciled to the basic earnings per share as follows:
Year ended 15 months to
30 June 2003 30 June 2002
#000 #000
Basic earnings 3,255 1,631
Goodwill amortisation 1,079 816
---------------- ----------------
Adjusted basic earnings 4,334 2,447
---------------- ----------------
Adjusted basic earnings per 27.0p 22.1p
ordinary share
================ ================
The diluted earnings per ordinary share have been calculated by dividing the
results after taxation for the period, as shown above, by the diluted
weighted average number of shares in issue during the period as follows:
Number Number
(restated
(note 22))
Weighted average number of 16,056,67 11,060,000
shares
Dilutive shares to be issued as - 1,000,000
deferred consideration
---------------- ----------------
Diluted weighted average number 16,056,667 12,060,000
of shares
================ ================
5. Reconciliation of movements in equity shareholders' funds
Group
Year ended 15 months to
30 June 30 June
2003 2002
#000 #000
Opening shareholders' funds 14,631 2,029
Profit for the financial period 3,255 1,631
Dividends (3,211) (1,019)
Share issues (net of expenses) 1,500 10,490
Shares to be issued (1,500) 1,500
--------------- ----------------
Closing equity shareholder's 14,675 14,631
funds
=============== ================
6. Reconciliation of operating profit and net cash inflow from operating
activities
Year ended 15 months to
30 June 2003 30 June 2002
#000 #000
Operating profit 4,948 2,512
Depreciation charge 42 48
Goodwill amortisation 1,079 816
Decrease in stock 65 104
Decrease/(increase) in debtors 419 (307)
Increase in creditors 1,082 347
---------------- ----------------
Net cash inflow from operating 7,635 3,520
activities
================ ================
7. Report and Accounts and Annual General Meeting
The report and accounts will be sent to shareholders shortly and copies will be
available for collection at or by writing to Invox Plc, Galbraith House, 141
Great Charles Street, Birmingham, B3 3LG.
The Annual General Meeting of Invox Plc will be held at the offices of DLA
Solicitors, Victoria Square House, Victoria Square, Birmingham B2 4DL on Friday
07 November at 10.30am.
For further information:
Stephen Hargrave Chairman 0207 242 0735
Jerry Reidy Finance Director 0121 214 9900
Allan Piper FirstCityFinancial 07050 203304
This information is provided by RNS
The company news service from the London Stock Exchange
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