EMBARGOED - NOT TO BE RELEASED UNTIL 07.00am ON 31 OCTOBER 2003
BIDTIMES PLC ("Bidtimes" or "the Company")
Interim Results for six months ended
31st August 2003
Chairman's Statement
I am pleased to present the interim results for the Group for the period ended
31 August 2003. I have now taken up the position of Chairman and Chief
Executive, following the retirement of Brian North at the Annual General
Meeting on 10 September 2003. I would like to thank Brian for his efforts and
support during his time as Chairman of the Company.
The Group has made a small profit for the period of �79, before taxation and
exceptional items, compared with a loss of �31,431 for the same period in the
previous year, which is encouraging. The write back of negative goodwill and
amounts written off investments relates entirely to the Group's investment in
SRS Technology Group Plc and, after this charge, the Group made a loss of �
135,137 (2002: �254,848). The Board does not believe that this will represent a
permanent diminution in value, but, to be prudent, we have recognised this
reduction in value in the period under review. Shareholders should note that it
is our policy to value investments at the lower of cost or net realisable
value. This results in the immediate recognition of potential losses, but not
potential gains and I would point out that the Group has a number of potential
unrealised gains, as detailed in note 6 to the balance sheet, which have not
yet been recognised.
A reduction in the overhead base of the Group, including a reduction in
directors' remuneration, was implemented towards the end of the period under
review and, in addition, the rental income from our property portfolio did not
contribute until the later part of this period. These factors will have a
greater impact in the second half of the financial year. The performance of the
investment portfolio during the period, detailed in note 6 to the interim
results, was considered to be satisfactory by the Board, although we continue
to monitor very closely the Group's investment in SRS Technology Group Plc.
With all funds currently invested in a diversified and balanced portfolio, the
Board will now focus on maximising shareholder value from the current
investment portfolio. Your directors remain optimistic in their outlook for the
Company in the medium term, as its investments mature.
Russell Stevens
Chairman and Chief Executive
31 October 2003
Consolidated Profit and Loss Account
for the six months ended 31st August 2003
Note Six months Six months Eighteen
ended month period
ended
31 August ended
31 August
2002 28 February
2003
(unaudited) 2003
(unaudited)
� (audited)
�
�
Turnover 20,000 - 13,055
Administration expenses (48,422) (45,254) (194,886)
Net rental income 20,119 - -
Interest receivable 8,382 13,823 40,865
-------- -------- --------
Profit/(loss) before exceptional 79 (31,431) (140,966)
items
Exceptional items
Amounts written off investments (135,216) (645,797) (1,402,867)
Write back of negative goodwill - 422,380 422,380
-------- -------- --------
Loss on ordinary activities (135,137) (254,848) (1,121,453)
======== ======== ========
Loss on ordinary activities before (135,137) (254,848) (1,121,453)
and after taxation
======== ======== ========
Basic loss per share (pence) 5 (0.78) (2.68) (10.27)
======== ======== ========
The Group has no other recognised gains or losses other than the losses for the
periods.
Consolidated Balance Sheet
as at 31st August 2002
Note As at As at As at
31 August 31 August 28
February
2003 2002
2003
(unaudited) (unaudited)
(audited)
� �
�
Fixed Assets
Fixed asset investments 6 1,092,060 532,933 336,447
-------- -------- --------
Current assets
Investments 290,181 - 148,055
Debtors 25,129 5,860 4,250
Cash at bank and in hand 241 519,562 314,758
-------- -------- --------
315,551 525,422 467,063
Current liabilities
Creditors (18,738) (24,454) (10,500)
-------- -------- --------
Net current assets 296,813 500,968 456,563
-------- -------- --------
Total assets less current 1,388,873 1,033,901 793,010
liabilities
Liabilities falling due after (731,000) - -
more than one year
-------- -------- --------
Net assets 657,873 1,033,901 793,010
======== ======== ========
Capital and reserves
Called up share capital 868,676 868,676 868,676
Share premium 714,948 714,948 714,948
Profit and loss account (925,751) (549,723) (790,614)
-------- -------- --------
Equity shareholders' funds 7 657,873 1,033,901 793,010
======== ======== ========
Cash Flow Statement
for the six months ended 31st August 2003
Note Six months Six months Eighteen
ended ended month period
31 August 31 August ended
2003 2002 28 February
2003
(unaudited) (unaudited)
(audited)
� �
�
Net cash outflow from 8 (41,063) `(189,661) (285,270)
operating activities
Return on investments and
servicing of finance
Net rental income 20,119 - -
Interest received 8,382 13,823 40,865
Capital expenditure and
financial investment
Fixed asset investments (890,829) (93,479) (108,270)
Current asset investments (142,126) - (148,055)
Acquisitions and disposals
Purchase of subsidiary - (121,101) (121,101)
undertaking
-------- -------- --------
Net cash outflow before (1,045,517) (390,418) (621,831)
financing
Financing
Share issue costs - (68,038) (68,037)
Term loan 731,000 - -
-------- -------- --------
Decrease in cash 9 (314,517) (458,456) (689,868)
======== ======== ========
Notes to the interim results
for the six months ended 31st August 2003
1. Accounting policies
The interim financial statements have been prepared in accordance with
applicable accounting standards and under the historical cost convention. The
principal accounting policies of Bidtimes have remained unchanged from those
set out in Bidtimes' 2003 annual report and financial statements, except for
the addition of the following accounting policy:
Investment properties
Investment properties are revalued annually and are included in the balance
sheet at their open market values. The surplus or deficit on revaluation of
such properties is transferred to the revaluation reserve. Depreciation is not
provided in respect of freehold investment properties.
This policy represents a departure from the Companies Act 1985, which requires
depreciation to be provided on all fixed assets. The directors consider that
this policy is necessary in order that the financial statements may give a true
and fair view, because current values and changes in current values are of
prime importance rather than the calculation of systematic annual depreciation.
Depreciation is only one of many factors reflected in the valuation. The
financial effect of the departure from the Companies Act is not material.
2. Basis of preparation
The financial information set out in this report does not constitute statutory
accounts as defined in Section 240 of the Companies Act 1985. The figures for
the period ended 28 February 2003, have been extracted from the statutory
financial statements, which have been filed with the Registrar of Companies.
The auditors report on those financial statements was unqualified and did not
contain a statement under Section 237(2)of the Companies Act 1985.
3. Dividends
No dividend is proposed for the six months ended 31st August 2003.
4. Taxation
On the grounds that year to date losses have been made there is no taxation
charged to the profit and loss account in this period.
5. 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 impact of the share options is anti dilutive. The loss
and weighted average number of shares used in the calculations are set out
below:
Loss Weighted Loss per
average share
�
number of (pence)
shares
Basic loss per share
6 months ended 31st August 2003 (135,137) 17,373,523 (0.78)
6 months ended 31st August 2002 (254,848) 9,524,353 (2.68)
18 months ended 28th February 2003 (1,121,453) 10,917,250 (10.27)
----------- ---------- --------
6. Fixed asset investments
Six months Six months Eighteen
ended ended months ended
31st August 31st August 28th February
2003 2002 2003
(unaudited) (unaudited)
(audited)
� �
�
Freehold property 890,829 - -
Equity investments
- SRS Technology Group Plc (see note a 92,961 439,453 228,177
below)
- Innobox Plc (see note b below) 58,270 43,480 58,270
- Blue Chip Casinos Plc (see note c 50,000 50,000 50,000
below)
--------- -------- --------
Totals 1,092,060 532,933 336,447
======== ======== ========
a. The value of the investment in SRS Technology Group Plc based on the
mid-price of an ordinary share on 31st August 2003 was �92,961. The value
of the investment at the close of business on [16 October] 2003 was �
[103,525].
b. The market value of the investment in Innobox Plc based on the mid-price of
an ordinary share at 31st August 2003 was �131,600. However, the Directors
have adopted a prudent policy and included this investment in the balance
sheet at cost. The value of the investment on [16 October] 2003 was �
[119,850].
c. The Directors' opinion of the value of this investment at 31st August 2003
was �150,000. However, the Directors have adopted a prudent policy and
included this investment in the balance sheet at cost.
7. Reconciliation of movements in shareholders' funds
Six months Six months Eighteen
ended ended months ended
31st August 31st August 28th February
2003 2002 2003
(unaudited) (unaudited)
(audited)
� �
�
Loss on ordinary activities (135,137) (254,848) (1,121,453)
Issue of ordinary share capital - 531,868 1,078,949
Less: share issue costs - (68,038) (64,849)
-------- -------- --------
Net (decrease)/increase in (135,137) 208,982 (107,353)
shareholders' funds
Shareholders' funds brought forward 793,010 824,919 900,363
-------- -------- --------
Shareholders' funds at the end of the 657,873 1,033,901 793,010
period
======== ======== ========
8. Reconciliation of operating loss with net cash flow from operating
activities
Six months Six months Eighteen
ended months ended
ended
31st August 28th February
31st August
2002 2003
2003
(unaudited) (audited)
(unaudited)
� �
�
Operating loss (28,422) (45,254) (181,831)
(Increase)/Decrease in debtors (20,879) 4,063 (381)
Increase/(Decrease)in creditors 8,238 (148,470) (103,058)
-------- -------- --------
Net cash outflow from operating (41,063) (189,661) (285,270)
activities
======== ======== ========
9. Analysis of charges in net funds
As at Cash As at
1st March Flow 31st August
2003 � 2003
(unaudited) (unaudited)
� �
Cash at bank and in hand 314,758 (314,517) 241
======== ======== ========
10. Copies of the Interim Results have been posted to shareholders today and
are available from the Company's registered office, Meriden House, 6 Great
Cornbow, Halesowen, West Midlands B63 3AB.
Enquiries:
Russell W Stevens 07860 562621
Chief Executive russell@bidtimes.com
John East/ David Worlidge 020 7628 2200
John East & Partners Limited info@johneastpartners.com
END