RNS Number:0707P
e-primefinancial PLC
27 August 2003
e-primefinancial plc
Interim results for the six months ended 30 June 2003
Chairman's Statement
Introduction
The results for e-primefinancial plc (the "Company" and collectively with the
Subsidiary Company, the "Group") reflect the six month period ending on 30 June
2003. They incorporate the results of its only subsidiary, Infinity Financial
Holdings Corporation (the "Subsidiary Company" formerly known as
e-primefinancial (USA), Inc.), which is wholly owned.
Results for the Period
The Group incurred a loss for the period, after taxation, of #636,246 after
receiving interest of #183,771 and having paid administrative expenses of
#864,566. The basic loss per share was 0.3p and 0.27p on a fully diluted basis.
The Group had cash balances of #10,385,314 at the period end.
Review of Activities
Further to our announcement in the 2002 Annual Report the closure of the US
operations should be completed by the end of this month. The results for the six
months ended 30 June 2003 incorporate a provision of approximately #200,000
against the value of assets held in the Subsidiary Company that the board of the
Subsidiary Company does not believe are recoverable. The board of the Subsidiary
Company does not anticipate any further costs associated with the closure other
than costs already provided for. The Company has also taken steps to further
reduce its costs base and now has a positive base monthly cash flow, net of
interest at current rates.
As previously announced the Board continues to be concerned with the high cost
of administering its large shareholder base. These costs are both significant
and disproportionate to a company of e-primefinancial's size. The Board is
therefore proposing to move forward with a share consolidation and a circular
outlining the proposal will be sent to shareholders in due course.
Consistent with previous statements, the Board is also continuing to evaluate a
variety of investment opportunities and is pleased to note that activity in this
area has increased over the last few months. Whilst it would be premature to
specifically mention any of these opportunities at this time we can state that
they cover a variety of sectors of industry predominately within the UK. The
Board is hoping to be in a position to provide more detailed information on
progress as events unfold.
Lance O'Neill
Chairman 27 August 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 June 2003 30 June 2002 31 December 2002
# # #
Turnover from continuing 0 0 0
operations
Cost of sales 0 0 0
--------------- --------------- ---------------
Gross profit 0 0 0
Administrative expenses (864,566) (1,094,546) (2,225,574)
--------------- --------------- ---------------
Operating loss (864,566) (1,094,546) (2,225,574)
Profit/(loss) on sale of 44,549 (636) 53,050
fixed assets
--------------- --------------- ---------------
Loss on ordinary activities (820,017) (1,095,182) (2,172,524)
before interest
Interest receivable and 183,771 310,638 604,160
investment income
--------------- --------------- ---------------
Loss on ordinary activities (636,246) (784,544) (1,568,364)
before taxation
Tax on ordinary 0 0 0
activities (note 2)
--------------- --------------- ---------------
Retained loss for the (636,246) (784,544) (1,568,364)
period
========= ========= =========
Loss per ordinary 0.5p share (note 3)
- basic (0.30)p (0.22)p (0.45)p
- diluted (0.27)p (0.20)p (0.40)p
All transactions are derived from continuing operations.
CONSOLIDATED BALANCE SHEET
Unaudited Audited
30 June 2003 31 December 2002
# #
Fixed assets
Tangible fixed assets 42,196 229,664
Current assets
Debtors 98,637 298,495
Cash at bank and in hand 10,385,314 10,779,734
--------------- ---------------
10,483,951 11,078,229
Creditors: amounts falling due within (164,035) (255,390)
one year
--------------- ---------------
Net current assets 10,319,916 10,822,839
--------------- ---------------
Total assets less current liabilities 10,362,112 11,052,503
========= =========
Capital and reserves
Called up share capital (note 4) 1,053,211 1,065,961
Share premium account (note 4) 6,830,702 6,830,702
Capital redemption reserve (note 4) 721,789 709,039
Profit and loss account (note 4) 1,900,747 2,603,080
Foreign exchange translation (note 4) (144,337) (156,279)
--------------- ---------------
10,362,112 11,052,503
========= =========
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 June 2002 30 June 2002 31 December 2002
# # #
Net cash outflow from continuing (619,549) (949,472) (1,971,464)
operating activities
Returns on investments and
servicing of finance
Interest received 183,771 310,638 604,160
Buy back
Share and warrant buy back (66,087) 0 (5,470,108)
Taxation
UK corporation tax 0 0 0
Capital expenditure and
financial investment
Purchase of tangible 0 (4,224) (12,032)
fixed assets
Receipts from sale of 107,445 0 85,102
fixed assets
--------------- --------------- --------------
107,445 (4,224) 73,070
--------------- --------------- --------------
Financing
Issue of shares net of costs 0 0 100,000
--------------- --------------- --------------
Decrease in cash in the period (394,420) (643,058) (6,664,342)
========= ========= =========
Reconciliation of operating loss
to net cash outflow from operating activities
Operating loss (864,566) (1,094,546) (2,225,574)
Depreciation and 121,168 181,100 427,307
amortisation charged
Foreign exchange revaluation 15,346 (21,962) (28,497)
adjustments
Decrease/(increase) in 199,858 (13,237) (121,267)
trade debtors
Decrease in trade creditor (91,355) (827) (23,433)
--------------- --------------- ------------
Net cash outflow from (619,549) (949,472) (1,971,464)
operating activities
========= ========= =========
NOTES
1. Basis of preparation
The interim report for the six months ended 30 June 2003 is unaudited
and does not constitute statutory accounts within the meaning of section
240 of the Companies Act 1985. It has been prepared under the historical
cost convention and on a basis consistent with the accounting policies
for the year ended 31 December 2002.
The financial information relating to the year ended 31 December 2002
has been extracted from the statutory accounts, 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.
2. Taxation
No charge to corporation tax for the period has been made due to the
expected tax losses available.
3. Loss per share
Basic and diluted loss per share are presented in accordance with FRS14
"Earnings per share" based on the loss for the period of #636,246 (year
ended 31 December 2002 - #1,568,364) and the following weighted average
number of ordinary shares.
Six months ended Year ended
30 June 2003 31 December 2002
Weighted average number of shares
Basic 212,102,337 345,040,246
Dilutive effect of share options/warrants 25,522,388 46,981,228
--------------- --------------
Weighted average number of shares - 237,624,725 392,021,474
diluted
========= =========
4. Reconciliation of shareholders funds and movement on reserves
Share Share CapitalProfit and Foreign Total
capital premiumRedemption loss currency
Reserve translation
# # # # # #
Balance at 1 1,065,961 6,830,702 709,039 2,603,080 (156,279) 11,052,503
January 2003
Loss for the 0 0 0 (636,246) 0 (636,246)
period
Tender offer 0 0 0 (3,187) 0 (3,187)
costs
Share buy back (12,750) 0 12,750 (62,900) 0 (62,900)
Foreign exchange 0 0 0 0 11,942 11,942
translation
----------- ---------- ---------- ---------- ---------- ---------
Balance at 30 1,053,211 6,830,702 721,789 1,900,747 (144,337) 10,362,112
June 2003
=========== ========== ========== ========== ========== ==========
Enquiries:
Lance O'Neill, Chairman, e-primefinancial plc 020 7499 8334
Nigel Duxbury, COO and CFO, e-primefinancial plc 020 7499 8334
Mark Percy, Seymour Pierce Limited 020 7107 8000
This information is provided by RNS
The company news service from the London Stock Exchange
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