RNS Number:3321K
Baydonhill PLC
20 December 2007
Baydonhill plc ("Baydonhill" or "the Company")
Interim results for the six month period ended 30 September 2007
Key Points
*Continued investment in the product offering resulted in a net loss for
the period of £845,967 which was in line with expectations (2006: loss
£219,915).
*Corporate sales team recruited and operational.
*Baydonhill Online (the newly designed corporate online trading system)
became active in late November.
Contacts
Baydonhill plc Tel: 020 7594 0584
Eric Peacock, Chairman
Wayne Mitchell, Chief Executive
John East & Partners Limited Tel: 0207 628 2200
Simon Fox / Bidhi Bhoma
Rostrum Communications Tel: 07773 782 520
Mark Houlding
Chairman's Statement
Interim Results
For the six months ended 30 September 2007 the Company made a loss before tax of
£845,967 (2006: loss £219,915) on a turnover of £131,669,000 (2006 :
£128,273,000).
The major shareholder has continued to support the Company during the period,
with the result that the directors believe cash resources to be adequate to
cover the year ahead to 30 September 2008.
Review
The Company's turnover slightly increased over the same period last year,
despite strong competition in the market place which has, however, negatively
affected our margins.
The 'Private Client' division generates the majority of the Company's revenue,
although both turnover and margins have declined against the same period last
year. Competition remains very strong in this division, and there is continuing
uncertainty in the market place over house prices and interest rates, both
factors having a significant impact on the business. Our marketing activities
continue to focus on the formation of relationships with multi-introducers
within the property and financial services sectors. The 'International
Mortgages' division grew its turnover by 9 per cent under difficult market
conditions.
The 'Corporate' division started trading in February 2007 with the recruitment
of an experienced external sales team, the first transactions taking place in
May 2007. At the same time an internal sales division was established to support
the external activity. The development of our online trading platform continued
throughout the period, and became active at the end of November 2007. The online
platform provides a complete payment solution to corporate clients and the
benefits of this platform are already apparent, although the full revenue impact
will not be realised until the fiscal year 2008 / 2009.
Board
The composition of the Board remains unchanged with the exception of Tim
Sullivan, who resigned to pursue other interests on 8 June 2007.
Nominated Adviser
John East & Partners Limited became the Company's nominated adviser with effect
from 24 August 2007.
Outlook
In the period ahead we will focus on increasing our market share in the private
client sector coupled with achieving the growth of the 'Corporate' division
required to cover its cost base and in time, make a positive contribution to the
Company. The board is confident of achieving both these objectives with the aim
of achieving a break-even position month on month.
Eric Peacock
Chairman
20 December 2007
PROFIT AND LOSS ACCOUNT
Six months Six months Twelve months
ended ended ended
30 September 30 September 31 March
2007 2006 2007
(unaudited) (unaudited) (audited)
(as restated)
TURNOVER 131,668,803 128,273,134 239,767,768
Cost of sales (130,665,663) (127,095,306) (237,559,748)
------------ ------------ ----------
GROSS PROFIT 1,003,140 1,177,828 2,208,020
Administrative
expenses (1,935,982) (1,486,606) (3,269,712)
------------ ------------ ----------
OPERATING LOSS (932,842) (308,778) (1,061,692)
Interest
receivable and
similar income 97,364 90,417 184,541
Interest payable
and similar
charges (10,489) (1,554) (1,082)
------------ ------------ ----------
(LOSS) / PROFIT
BEFORE TAX (845,967) (219,915) (878,233)
TAXATION - - -
------------ ------------ ----------
(LOSS) / PROFIT
FOR THE PERIOD (845,967) (219,915) (878,233)
============ ============ ==========
(Loss) / Earnings
per share - basic (3.79p) (1.52p) (6.06p)
- diluted (3.00p) (1.50p) (6.06p)
The results for the six months ended 30 September 2006 have been restated to
accommodate adjustments required under FRS20.
BALANCE SHEET
At At 30 September At
2006
30 September (unaudited) 31 March
2007 (as restated) 2007
(unaudited) (audited)
FIXED ASSETS
Tangible 421,398 104,795 343,182
CURRENT ASSETS
Debtors 12,915,384 13,206,582 9,246,673
Cash at Bank 3,466,754 5,621,706 4,106,425
----------- ----------- ----------
16,382,138 18,828,288 13,353,098
CREDITORS: Amounts falling due
within one year (16,413,341) (17,592,950)) (12,953,699)
----------- ----------- ----------
NET CURRENT (LIABILITIES) /
ASSETS (31,203) 1,235,338 399,399
TOTAL ASSETS LESS CURRENT
LIABILITIES 390,195 1,340,133 742,581
=========== =========== ==========
NET ASSETS 390,195 1,340,133 742,581
----------- ----------- ----------
CAPITAL AND RESERVES
Called up share capital 243,841 144,987 144,987
Share premium account 3,005,551 2,600,623 2,600,623
Profit and loss account (2,859,197) (1,405,477) (2,003,029)
----------- ----------- ----------
EQUITY SHAREHOLDERS FUNDS 390,195 1,340,133 742,581
=========== =========== ==========
The Balance Sheet at 30 September 2006 has been restated to show debtors and
creditors gross.
CASH FLOW STATEMENT
Six months Six months Twelve months
ended ended ended
30 September 30 September 31 March
2007 2006
(unaudited) (unaudited) 2007
(as restated) (audited)
Reconciliation of operating loss to
net cash (outflow) from operating
activities
Operating loss (932,842) (308,778) (1,061,692)
Depreciation of
tangible fixed
assets 35,224 73,970 131,648
(Increase) in debtors (3,668,711) (9,364,495) (5,408,283)
Increase in creditors 3,459,642 10,042,764 5,403,513
Share-based payment
(credit) / expense (10,201) 60,768 121,537
----------- ----------- -----------
Net cash (outflow)/
inflow from operating
activities (1,116,888) 504,229 (813,277)
CASH FLOW STATEMENT
Net cash (outflow)/
inflow from operating
activities (1,116,888) 504,229 (813,277)
Returns of
investment &
servicing of
finance 86,875 88,863 183,459
Taxation - - 3,697
Capital
expenditure (113,440) (58,874) (354,942)
----------- ----------- -----------
Cash (outflow) /
inflow (before
use of liquid
resources (1,143,453) 534,218 (981,063)
Management of liquid resources - - -
Financing:
Proceeds of placing 531,723 - -
Less associated
costs of share
issue (27,941) - -
Management of
liquid resources - - 300,000
----------- ----------- -----------
(Decrease) /
Increase in cash
for the period (639,671) 534,218 (681,063)
Reconciliation of net cash flow to
movement in net funds
(Decrease) /
Increase in cash
in the year (639,671) 534,218 (681,063)
Cash inflow from
decrease in liquid
resources - - (300,000)
----------- ----------- -----------
Change in net
funds resulting
from cash flows (639,671) 534,218 (981,063)
Net funds at 1
April 2006 4,106,425 5,087,488 5,087,488
----------- ----------- -----------
Net funds at 30
September 2007 3,466,754 5,621,706 4,106,425
1. Nature of Information
The interim accounts for the six months ended 30 September 2007 and the
comparative figures for the six months ended 30 September 2006 are unaudited.
The interim accounts for the six months ended 30 September 2006 were reviewed by
the Company's auditors, but those to September 2007 were not. The comparative
figures for the twelve months ended 31 March 2007 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 Section
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 Company for the twelve
months ended 31 March 2007.
With effect from 31 March 2007 the two wholly-owned trading subsidiaries,
Baydonhill International Mortgages Limited and FLG Insurance Brokers Limited,
became dormant and their assets and liabilities were transferred to the parent
company, Baydonhill plc. The comparative figures for 31 March 2007 and 30
September 2006 have continued to reflect the consolidated position as the impact
of the hiving-off is not regarded as material.
2. Principal Activities
The principal activities of the Company continue to be the provision of foreign
currency exchange and related financial products and the arrangement of overseas
mortgages.
3. Taxation
Based on the results of the period, the Company believe that no provision for
taxation is required.
4. Dividends
The Directors do not recommend the payment of a dividend.
5. Loss per Share
The loss per share is calculated on the loss for the period of £845,967 based on
the weighted average number of shares in issue at 30 September 2007 of
22,331,328. The fully diluted share capital at 30 September 2007 amounted to
28,141,070.
6. Copies of this interim announcement will be available from the Company's
website at www.baydonhill.com and at 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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