RNS Number:8268M
Baydonhill PLC
28 November 2006
Baydonhill plc ("Baydonhill" or "the Group")
Interim results for the six months ended 30 September 2006
Key Points
* The Group reported a loss for the period of #159,000 compared to a profit
of #2,000 before tax in the comparable period in 2005.
* Net cash of #1.0m (2005: #0.4m).
Contacts
Baydonhill plc 020 7594 0515
Eric Peacock, Chairman
Richard Collier, Chief Executive
Corporate Synergy Plc 020 7448 4400
Oliver Cairns
Mark Houlding 07773 782 520
Rostrum Communications
Chairman's Statement
Interims
For the 6 months ended 30 September 2006 the Group made a loss before tax of
#159,144 (2005: Profit #1,617) on a turnover of #128m (2005: #168m). As at 30
September 2006 the Group had gross cash balances of #5.6m of which #1m
represented cash resources available to the Group.
Review
The Group's turnover declined by approximately 24% when compared to the same
period in the last financial year. Competition in the Foreign Currency Transfer
operations increased substantially. The decline was particularly noticeable in
the period from April 2006 through to June 2006 but levels of business since
then have increased over the same period last year although not sufficiently to
compensate for the first quarter's downturn.
The sales and marketing effort is focused on the development of relationships
with multi-introducers within the property and financial services sectors both
in the United Kingdom and in our core European markets. Whilst this will take
some time to benefit the business, the Group has met with some success in this
area albeit progress has been slower than anticipated.
We have developed an innovative and market leading website for all divisions.
This includes an online anti-money laundering verification process for customers
to open a foreign currency account and white label solutions for our partners
and web portals for them to be able to use our voice broking and settlements
package.
On 1st October 2006, the Group changed its name from The 4Less Group plc to
Baydonhill plc. The name change moving away from the 4Less brand was strongly
supported by feedback from partners and customers. Baydonhill reflects our
commitment to high level customer service and dealing with large transaction
values. We have completed the first phase of the re-brand with all marketing
materials and websites in the new livery.
Although still not making a positive contribution to the Group, the
International Mortgages division's performance improved significantly over the
period. This division's focus is on international mortgage broking in France
and Spain, with sales effort in Italy and Portugal and representative agents in
many other countries.
Having undertaken a detailed review of the insurance division, it was felt that
significant investment would need to be incurred in both technology and people
to build the division to profitability. Given our key focus is in the provision
of physical delivery foreign exchange, your Board has decided that the Group's
clients would be better served by outsourcing the provision of insurance
products. Discussions have been commenced in this regard and we anticipate that
our clients' insurance requirements will be provided by a specialist insurance
broker from the New Year. This may result in a modest exit cost.
Board
Geoff Mayhill and Sarah Collis were appointed to the Board on 1st April 2006 as
Non-Executive Directors, whilst David Haddon resigned on 31st August 2006 to
pursue personal interests.
Richard Collier has indicated his intention to step down from his position as
Chief Executive early in the New Year. The Board is considering an internal
appointment as his replacement.
Outlook
We are confident that the fresh marketing and management initiatives will enable
the Group to maintain its highly professional service in the market place and
expand into new markets. However the Board recognises the need to restructure
the Group to ensure that the infrastructure adequately supports the ongoing
activities. This does take time and has cost implications going forward which
will restrain the profitability of the business. The Directors also recognise
that to fulfil the new restructuring of the Group, additional working capital
will be required during 2007. The Board are already in discussions with certain
parties to assist in this fundraising and we look forward to updating the market
as and when these matters materialise.
Eric Peacock
Chairman
28th November 2006
INDEPENDENT REVIEW REPORT TO BAYDONHILL PLC
Introduction
We have been instructed by the company to review the financial information for
the six months ended 30 September 2006 which comprises the consolidated profit
and loss account, the consolidated balance sheet, the consolidated cash flow
statement and the related notes. We have read the other information contained in
the interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.
This report is made solely to the company in accordance with the terms of our
engagement. Our review has been undertaken so that we might state to the company
those matters we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company for our review work, for this
report, or for the conclusions we have reached.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the AIM
Rules of the London Stock Exchange which require that it must be prepared in a
form consistent with that which will be adopted in the next annual accounts
having regard to the accounting standards applicable to such annual accounts.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with International Standards on Auditing (UK and
Ireland) and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2006.
PKF (UK) LLP
London, UK
Date 28 November 2006
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Six months ended Six months ended
Twelve months ended
30th September 2006 30th September 2005
31st March 2006
(unaudited) (unaudited)
(audited)
TURNOVER 128,273,134 168,017,316
278,822,687
Cost of sales (127,095,306) (166,645,459)
(276,513,820)
GROSS PROFIT 1,177,828 1,371,857
2,308,867
Administrative expenses (1,427,389) (1,483,755)
(3,080,727)
OPERATING LOSS (249,561) (111,898)
(771,860)
Interest receivable and
similar income 90,417 113,845
183,872
Interest payable and
similar charges 0 (330)
(4,834)
PROFIT / (LOSS) BEFORE TAX (159,144) 1,617
(592,822)
TAXATION 0 0
0
(LOSS) / PROFIT FOR THE (159,144) 1,617
(592,822)
PERIOD
(Loss) / Earnings per (1.10p) 0.02p
(7.42p)
share - basic
- diluted (1.10p) 0.02p
(7.42p)
CONSOLIDATED BALANCE SHEET
At 30th September
At 30th At 31st March
2006
September 2005 2006
(unaudited)
(unaudited) (audited)
FIXED ASSETS
Tangible 104,795
178,583 119,888
104,795
178,583 119,888
CURRENT ASSETS
Debtors 435,784
627,938 311,631
Cash at Bank 5,621,706
5,139,656 5,087,488
6,057,490
5,767,594 5,399,119
CREDITORS: Amounts falling due within
one year (4,822,152)
(5,104,123) (4,019,730)
NET CURRENT ASSETS 1,235,338
663,471 1,379,389
TOTAL ASSETS LESS CURRENT LIABILITIES 1,340,133
842,054 1,499,277
CREDITORS: amounts falling due after
one year 0
0 0
NET ASSETS 1,340,133
842,054 1,499,277
CAPITAL AND RESERVES
Called up share capital 144,987
79,762 144,987
Share premium account 2,600,623
1,414,187 2,600,623
Profit and loss account (1,405,477)
(651,895) (1,246,333)
EQUITY SHAREHOLDERS FUNDS 1,340,133
842,054 1,499,277
CONSOLIDATED CASH FLOW STATEMENT
Six months ended Six months
ended Twelve months
30th September 30th
September ended
2006
2005 31st March 2006
(unaudited)
(unaudited) (audited)
Reconciliation of operating loss to net
cash (outflow) from operating
activities
Operating loss (249,561)
(111,898) (771,860)
Depreciation of tangible fixed assets 73,970
75,097 147,891
(Increase) / Decrease in debtors (124,153)
(30,545) 220,812
(Increase) / Decrease in creditors 802,419
(494,006) (1,578,398)
Net cash inflow/ (outflow) from
operating activities 502,675
(561,352) (1,981,555)
CASH FLOW STATEMENT
Net cash inflow/(outflow) from 502,675
(561,352) (1,981,555)
operating activities
Returns of investment & servicing of 90,417
113,515 179,038
finance
Taxation 0
0 64,950
Capital expenditure (58,874)
(6,596) (20,695)
Cash inflow/(outflow) before financing 534,218
(454,433) (1,758,262)
Financing:
Proceeds of the placing 0
0 1,500,180
Less associated costs of the placing 0
0 (248,519)
Increase/(Decrease) in cash for the
period 534,218
(454,433) (506,601)
Reconciliation of net cash flow to
movement in net funds
Increase/(Decrease) in cash in the
period 534,218
(454,433) (506,601)
Change in net funds 534,218
(454,433) (506,601)
Net funds at 1 April 2006 5,087,488
5,594,089 5,594,089
Net funds at 30 September 2006 5,621,706
5,139,656 5,087,488
1. Nature of Information
The interim accounts for the six months ended 30th September 2006 and the
comparative figures for the six months ended 30th September 2005 are unaudited
but have been reviewed by the Company's auditors. The comparative figures for
the twelve months ended 31st March 2006 are not the Company's statutory accounts
within the meaning of section 240 of the Companies Act 1985 but are abridged
from such accounts which have been reported on by the Company's auditors and
delivered to the Registrar of Companies. The report of the auditors on such
accounts was unqualified and did not contain any statement under Sections 237(2)
or 237(3) of the Companies Act 1985.
The interim accounts and the comparative figures are prepared on the basis of
the accounting policies set out in the accounts of the Group for the twelve
months ended 31st March 2006.
2. Segmental Information
An analysis of turnover and profit before tax by class of business is given
below:
Six months ended Six
months Twelve months ended
ended 31st March 2006
30th September 30th
September
2006
2005
(unaudited)
(unaudited) (audited)
Turnover
Provision of foreign currency 128,144,355
167,950,580 278,675,148
Arranging property finance 115,752
50,672 111,567
Arranging of insurance 13,027
16,064 35,972
Total Turnover 128,273,134
168,017,316 278,822,687
All turnover arose within the United Kingdom
Profit / (Loss) before tax
Provision of foreign currency (133,165)
59,504 (428,392)
Arranging property finance (12,682)
(56,079) (148,807)
Arranging of insurance (13,297)
(1,808) (15,623)
Total Profit / (Loss) before tax (159,144)
1,617 (592,822)
3. Taxation
Based on the results of the period, the Group believe that no provision for
taxation is required.
4. Dividends
The Directors do not recommend the payment of a dividend.
5. Copies of this interim announcement will be available from the
Company's registered office, 160 Brompton Road, London, SW3 1HW.
www.baydonhill.com
This information is provided by RNS
The company news service from the London Stock Exchange
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