Interim Results
September 30 2003 - 8:04AM
UK Regulatory
RNS Number:3437Q
Myratech.net PLC
30 September 2003
Myratech.net plc
30 SEPTEMBER 2003
Unaudited results for the six months ended 30th June 2003
INTERIM REPORT
INTRODUCTION
I am pleased to report the 2003 interim results for Myratech.
The early part of this year saw a further reduction in the number of employees
and the departure of the remaining original flotation management team.
The company's partnership with BDE Group was strengthened with the outsourcing
of technical services to BDE.
RESULTS AND FINANCE
Turnover for the first half of this year was down by 18.8% over the previous
year to #819,000 (2001 : #1,009,000). Gross margin was 31.1%(2002 : 35%).
However, following reductions in the cost base, the loss for the period was
#257,000, a further improvement over last year (2002: #330,000).
The loss includes severance and related costs of #65k in connection with the
departure of the previous management team.
The directors are mindful of the necessity to manage the business within
available cash resources.
The AGM approved the issue for cash of up to 10% of current issued share
capital.
The Directors do not intend to recommend a payment of a dividend at this stage
of the company's development.
BUSINESS DEVELOPMENT
The half-year saw Myratech focus its business on the more established market of
Sage software and IT products and services.
BOARD
Barry Welck and founder Mark Abrams left the Board during July 2003. The Board
currently comprises P D Sperry (chief executive officer), Nicholas Hamilton
(non-executive chairman) and Peter Reynolds (non-executive director). The
directors believe this is an appropriate balance at this stage of the company's
development.
FUTURE OUTLOOK
Since the period end, Myratech has concentrated on exploiting its own
intellectual property and entering into strategic partnerships encompassing
products suitable for sale to its SME customer base. Its agreement with Dynmark
International Limited announced in July for the exclusive rights to resell its
SMS technology to UK corporates was the first of several contracts under
negotiation.
The internet business continues to grow with a series of new management services
launched under the branding 'Myfuture.net'.These new services are part of
Myratech's strategy to increase its recurring revenue.
The Sage business continues to be a significant proportion of the company's
revenue. The order book for larger Line 100 deals looks promising for the last
quarter of this year.
Although cash remains tight, the directors believe that there are some grounds
for cautious optimism for the future of the business, and positive cash flow on
a regular monthly basis is within sight.
P Duncan Sperry
Chief executive officer
30 September 2003
Group Profit and Loss Account
Unaudited Unaudited Audited
six months six months Year to
to 30-06-03 to 30-06-02 31-12-02
#'000 #'000 #'000
Turnover 819 1,009 1,894
Cost of Sales (564) (658) (1,258)
--------- --------- ---------
Gross Profit 255 351 636
--------- --------- ---------
Other Operating Expenses (513) (684) (1,244)
Interest receivable 1 3 4
Interest payable - - (4)
--------- --------- ---------
Loss on Ordinary Activities Before Taxation (257) (330) (608)
Taxation - - 22
--------- --------- ---------
Loss on Ordinary Activities After tax (257) (330) (586)
--------- --------- ---------
Basic loss per share (0.9p) (1.2p) (2.1p)
Diluted loss per share (0.8p) (1.2p) (1.9p)
========= ========= =========
Group Balance Sheet
Unaudited Unaudited Audited
30-06-03 30-06-02 31-12-02
#'000 #'000 #'000
Fixed assets
Tangible assets 48 160 80
--------- --------- ---------
48 160 80
--------- --------- ---------
Current assets
Stock 46 36 59
Debtors 322 561 338
Cash at Bank and in hand 10 137 73
--------- --------- ---------
378 734 470
Creditors: Amounts falling due within one
year (792) (756) (676)
--------- --------- ---------
Net Current liabilities (414) (22) (206)
--------- --------- ---------
Creditors: Amounts falling due after more
than one year - (11) (3)
--------- --------- ---------
Net (liabilities)/assets (366) 127 (129)
--------- --------- ---------
Capital and Reserves
Called up Share Capital 309 289 289
Share Premium 4,864 4,863 4864
Merger Reserve (118) (118) (118)
Profit and Loss Account (5,421) (4907) (5164)
--------- --------- ---------
(366) 127 (129)
========= ========= =========
Group Cash Flow
Unaudited Unaudited Audited
six months six months Year to
to 30-06-03 to 30-06-02 31-12-02
#'000 #'000 #'000
Net cash outflow from operating activities (78) (275) (343)
Returns on investment and servicing of
finance 1 1 -
Capital expenditure and financial investment (1) (18) (1)
--------- --------- ---------
Cash outflow before management of liquid (78) (292) (344)
resources and financing
Financing
Issue of ordinary shares 20 58 59
Decrease in debt (5) (11) (24)
--------- --------- ---------
Decrease in cash in the period (63) (245) (309)
========= ========= =========
Notes to the unaudited interim report for the period ended 30 June 2003
Basis of preparation
The financial information contained in this interim report does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985.
The accounts for the year ended 31 December 2002 have been reported on by the
auditors, Baker Tilly, without qualification and have been delivered to the
Registrar of Companies and did not contain a statement under section 237 (2) or
(3) of the Companies Act 1985.
The financial information contained in this interim report has been prepared on
the basis of the accounting policies set out in the Group's statutory accounts
for the year ending 31 December 2002.
Basis of consolidation
The Group's financial information consolidates that of the Company and all its
subsidiary undertakings.
Loss per share
The calculation of loss per share is based on the loss for the financial period
and 28,914,779 (2002: 28,426,712) ordinary shares, being the weighted average
number of shares in issue during the period.
The calculation of diluted earnings per share assumes the conversion of all
options and warrants. It is based on the loss after tax for the period and
30,826,415 (2002: 30,338,348) ordinary shares, being the weighted average number
of shares in issue during the period.
Interim Report
Copies of the interim report will be sent to shareholders. Further copies can
be obtained from the Company's registered office at Vittoria House, 1-7 Vittoria
Street, Birmingham B1 3ND.
Trading address:
Vittoria House
1-7 Vittoria Street
Birmingham
B1 3ND
Tel: 0121 628 6000
Fax: 0121 212 1573
Email: info@myratech.net
Web Address: www.myratech.net
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR URVAROBRKOAR