Interim Results
September 24 2003 - 2:02AM
UK Regulatory
RNS Number:0951Q
TEP Exchange Group PLC
24 September 2003
Embargoed - not to be released until 7.00a.m on
24th September 2003
TEP EXCHANGE GROUP PLC
("the Company")
Interim Results for the six month period ended 30th June, 2003
Chairman's Statement
I am pleased to report the unaudited results for the six month period ended 30th
June 2003. The loss on ordinary activities after tax was #334,000 compared to a
loss of #83,000 in the first six months of last year. Turnover for the period
totalled #23,000 (2002: #422,000) resulting in an operating loss of #331,000
compared to a loss of #268,000 in the same period last year.
Whilst there has been a steady flow of new IFAs registering with the Company and
additional TEP buying interest from various companies looking to bid for
policies directly via the exchange, the general uncertainty in the traded
endowment policy market continued in the first six months of 2003. Your
directors are currently reviewing the business model given the sustained change
in market conditions and are continuing efforts to broaden both the group's
product and client base.
The implementation, in January 2003, of the outsourcing of operational
management to Surrenda-link Limited has reduced significantly the Company's cost
structure and, since payment is in the form of equity, improved its cash flow.
The loss before charging non cash items of #238,000 is #96,000 which is
considerably less than the declared loss.
Your Directors and management continue to focus their efforts on financial
viability and in the creation of shareholder value during this period of
significant change in market conditions.
Your directors are not proposing an interim dividend.
George Kynoch
Chairman
24th September, 2003
Consolidated Profit and Loss Account
for the six months ended 30th June, 2003
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Turnover 23 422 909
Cost of sales - (261) (649)
-------- -------- --------
Gross profit 23 161 260
Administrative expenses (514) (480) (1,048)
Other operating income 160 51 119
-------- -------- --------
Operating loss (331) (268) (669)
Interest receivable - 2 3
Interest payable (3) - (33)
-------- -------- --------
Loss on ordinary activities (334) (266) (699)
Before taxation
Taxation - 183 183
-------- -------- --------
Loss on ordinary activities (334) (83) (516)
after taxation
======== ======== ========
Loss per share (0.24p) (0.07p) (0.45p)
======== ======== ========
Consolidated Balance Sheet
as at 30th June 2003
Six months Six months Year
ended ended ended
30th June 30th June 31st December
2003 2002 2002
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Fixed assets
Tangible assets 27 92 59
-------- -------- --------
Current assets
Stock 3 128 13
Debtors and prepayments 140 316 164
Cash at bank and in hand 1 196 19
-------- -------- --------
144 640 196
Creditors:
amounts falling due within one year (597) (673) (629)
-------- -------- --------
Net current liabilities (453) (33) (433)
Net (Liabilities)/Assets (426) 59 (374)
======== ======== ========
Capital and reserves
Called up share capital 1,438 1,156 1,156
Share premium 3,667 3,667 3,667
Profit and loss account (5,531) (4,764) (5,197)
-------- -------- --------
(426) 59 (374)
======== ======== ========
Notes to the Interim Results
1. Basis of preparation
The Interim accounts for the six months ended 30th June, 2003, are unaudited and
do not constitute statutory accounts in accordance with section 240 of the
Companies Act 1985. The interim accounts have been prepared in accordance with
accounting policies consistent with the financial statements for the year ended
31st December, 2002.
Copies of the Interim Results will be sent to Shareholders shortly and will be
available to members of the public from the Company's registered office, 1/2
Grosvenor Court, Foregate Street, Chester CH1 1HG. Full accounts for the year
ended 31st December, 2002, on which the auditors gave an unqualified report and
contained no statement under Section 237 (2) or (3) of the Companies Act 1985,
have been delivered to the Registrar of Companies.
2. Dividends
No dividend is proposed for the six months ended 30th June, 2003.
3. Loss per Share
The loss per share has been calculated by dividing the loss after taxation for
the period of #334,000 (2002: #83,000) by the weighted average number of
ordinary shares of 140,003,082 (2002:115,625,000) in issue during the period.
Further Enquiries:
TEP Exchange Group PLC Tel: 020 8365 4666
Paul Sands/Ami Weitz
John East & Partners Limited Tel: 020 7628 2200
John East/Simon Clements
This information is provided by RNS
The company news service from the London Stock Exchange
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