RNS Number:7570O
Bidtimes PLC
18 August 2003
Bidtimes PLC (the "Company")
Preliminary results announcement for the period ended 28 February 2003
Chairman's Statement
I am pleased to present my Chairman's statement for Bidtimes PLC for the
eighteen month period to 28 February 2003.
Strategy
During the period the company's strategy was changed to that of an investment
company which, together with the investment in SRS Technology Group Plc ("SRS")
via the acquisition of Firefly Securities, was approved at an extraordinary
general meeting of the company on 11 June 2002.
During the period the company has made investments in the casino and public
house sectors, both of which are asset-backed, which we expect will show
significant capital growth in the medium term. Whilst the board believes both
of these investments increased in value in the period the directors have adopted
a prudent basis of valuation for the company's investment portfolio, being that
of the lower of cost and net realisable value.
Results
During the eighteen month period, the company incurred administration expenses
of #194,886 (year to 31 August 2001: #202,162) and made a loss before taxation,
exceptional items and the write-back of goodwill of #140,966 (year to 31 August
2001: #147,523). Administration expenses primarily comprise directors'
remuneration and professional costs incurred in running a public company. The
directors have made every effort to control costs and generate income during the
period and this is reflected by a 36.3 per cent. reduction in the loss on a pro
rata basis when compared with the previous period.
The exceptional item and the write-back of goodwill relate entirely to the
investment the group made during the period in SRS, details of which have been
provided in previous announcements made by the company. The share price of SRS
at the period end was 13.5 pence compared with 5.5 pence on 14 August 2003 and
96.5 pence at the date of the investment, the fall in the share price being
predominantly due to the announcement by SRS of results, which were below market
expectations. However, SRS announced on 22 July 2002 a placing, which the
company did not participate in, that seeks to raise #540,000 net of expenses and
which was approved by SRS shareholders at an EGM on 14 August 2003. The Board
are monitoring the investment in SRS carefully and we hope that the value of
this investment will increase as the SRS business advances beyond its
development stage.
Future prospects
Since the period end, the company has focussed its investment activities on
residential property due to the lack of attractive equity investment
opportunities which we were being presented with. The company has purchased
five show homes from Barratt, the house builders, on a sale and leaseback basis
at a total cost of #868,701. Under this arrangement the group is guaranteed a
10 per cent. gross yield on its investment. This investment has been supported
by a mortgage, amounting to approximately 85 per cent. of the cost of the
properties, which in the current climate is attractive and in addition we
believe that the properties will show good medium term capital growth prospects.
The net income arising therefrom will assist the group to reduce the impact of
the significant administrative expenses incurred in running a public company.
The company continues to consider investment opportunities but as over 90 per
cent. of our funds are now invested we do not anticipate making a large number
of additional investments in the current year and instead the board intend to
devote the majority of their time into generating value from the existing
portfolio. To reflect this change and to assist the company to reach
profitability, the directors have agreed to reduce their annual remuneration by
40 per cent. from 1 August 2003 and we have taken steps to reduce our
administration costs as much as possible.
Board changes
I have been chairman and a director of the company since its flotation on AIM in
July 2000. It is my intention to retire from these posts at the AGM on 10
September 2003 and it is not the immediate intention to appoint a replacement.
I would like to thank my colleagues for their support and wish them success in
their endeavours.
B S North
18 August 2003
Consolidated Profit and Loss Account for the period ended 28 February 2003
Note Period ended Year ended
28 February 2003 31 August 2001
(audited) (audited)
# #
Turnover 13,055 -
Administration expenses (194,886) (202,162)
----------- -----------
Operating loss (181,831) (202,162)
Amounts written off investments (1,402,867) -
Write back of negative goodwill 422,380 -
Bank interest receivable 40,865 54,639
------------ ------------
Loss on ordinary activities before taxation (1,121,453) (147,523)
Taxation - -
------------ ------------
Loss for period (1,121,453) (147,523)
------------ ------------
Basic loss per share (pence) 2 (10.27) (2.89)
------------ ------------
The company has no recognised gains or losses other than the losses for the
period.
Consolidated Balance Sheet as at 28 February 2003
Note As at As at
28 February 2003 31 August 2001
(audited) (audited)
# #
Fixed assets
Intangible fixed assets - -
Fixed asset investments 336,446 -
------------ ------------
336,446 -
Current assets
Investments 148,055 -
Debtors 4,250 3,869
Cash at bank and in hand 314,759 1,004,626
------------ ------------
467,064 1,008,495
------------ ------------
Current liabilities
Creditors (10,500) (108,132)
------------ ------------
Net current assets 456,564 900,363
------------ ------------
Net assets 793,010 900,363
------------ ------------
Capital and reserves
Called up share capital 868,676 255,000
Share premium 714,948 864,793
Profit and loss account (790,614) (219,430)
------------ ------------
Equity shareholders' funds 3 793,010 900,363
------------ ------------
Consolidated cash Flow Statement for the period ended 28 February 2003
Notes Period ended Year ended
28 February 2003 31 August 2001
(audited) (audited)
# #
Net cash outflow from operating activities 4 (285,270) (173,563)
Returns on investments and servicing of finance
Interest received 40,865 54,639
------------ ------------
Net cash inflow from returns on investments and 40,865 54,639
servicing of finance
------------ ------------
Capital expenditure and financial investment
Fixed asset investments (108,270) -
Current asset investments (148,055) -
------------ ------------
Net cash outflow from capital expenditure and (256,325) -
financial investment
------------ ------------
Acquisitions and disposals
Purchase of subsidiary undertaking (121,101) -
------------ ------------
Net cash outflow before financing (621,831) (118,924)
------------ ------------
Financing
Share issue costs (68,037) -
------------ ------------
Net cash outflow from financing (68,037) -
------------ ------------
Decrease in cash 5 (689,867) (118,924)
------------ ------------
Notes to the Preliminary Results for the period ended 28 February 2003
1 Basis of preparation
The preliminary announcement has been prepared in accordance with
applicable accounting standards
and under the historical cost convention.
The principal accounting policies of the company are set out in the annual
report and financial statements.
2 Loss per share
The calculation of the basic loss per share is based on the loss on
ordinary activities after tax and on the weighted average number of shares
in issue during the period. The loss and weighted average number of shares
used in the calculations are set out below:
Loss Weighted Loss per
average number share
# of shares (pence)
Basic loss per share:
Period ended 28 February 2003 (1,121,453) 10,917,250 (10.27)
------------ ------------ ------------
Year ended 31 August 2001 (147,523) 5,100,000 (2.89)
------------ ------------ ------------
3 Reconciliation of movements in shareholders' funds
As at As at
28 February 2003 31 August 2001
(audited) (audited)
# #
Loss on ordinary activities after taxation (1,121,453) (147,523)
Issue of ordinary share capital 1,078,949 -
Share issue costs (64,849) -
------------ ------------
Net decrease in shareholders' funds (107,353) (147,523)
Shareholders' funds brought forward 900,363 1,047,886
------------ ------------
Shareholders' funds at the end of the year 793,010 900,363
------------ ------------
4 Reconciliation of operating loss with net cash flow from operating activities
Period ended Year ended
28 February 2003 31 August 2001
(audited) (audited)
# #
Operating loss (181,831) (202,162)
(Increase)/decrease in debtors (381) 938
(Decrease)/increase in creditors (103,058) 27,661
------------ ------------
Net cash outflow from operating activities (285,270) (173,563)
------------ ------------
5 Analysis of changes in net funds
1 September 2001 Cash Flow 28 February 2003
(audited) (audited)
# # #
Cash at bank and in hand 1,004,626 (689,868) 314,758
------------ ------------ ------------
6 Publication of non-statutory accounts
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies
Act 1985. The summarised balance sheet at 28 February 2003 and the
summarised profit and loss account, summarised cashflow statement and
associated notes for the period then ended have been extracted from the
company's 2003 statutory financial statements upon which the auditors
opinion is unqualified and does not contain any statement under section 237
of the Companies Act 1985.
7 Annual General Meeting
The Annual General Meeting of Bidtimes PLC will be held at the offices of
John East & Partners Limited, Crystal Gate, 28-30 Worship Street, London,
EC2A 2AH on 10 September 2003 at 12 noon.
8 Copies of the Report and Accounts will be sent to shareholders today and
will be available from the Company's registered office Meriden House, 6
Great Cornbow, Halesowen, West Midlands, B63 3AB
Enquiries:
Russell Stevens 07860 562621
Managing Director, Bidtimes Plc Russell@bidtimes.com
David Worlidge 0207 628 2200
John East & Partners Limited david.worlidge@johneastpartners.com
This information is provided by RNS
The company news service from the London Stock Exchange
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