RNS Number:1757M
Interactive Digital Solutions PLC
11 June 2003
Interactive Digital Solutions Plc ('the Company' or 'IDS')
Interim Results for the six-months ended 31 March 2003
Interactive Digital Solutions Plc, the AIM listed digital software development and licensing company, announces its
Interim Results for the six months ended 31 March 2003.
Key Points:
* Turnover increased to #165,741 (2002: #46,323)
* Pre-tax loss reduced to (#545,498) (2002: #713,494)
* Roll-out of NHS bedside entertainment unit under IDS software licence has commenced, albeit later than
anticipated
* Products being well received with new business opportunities continuing to open including substantial local
community projects and private hospitals
* TouchPoint Solutions Inc appointed as new business partner in North America
* Content and advertising agreement signed with Narrowstep, the first supplier of web based lifestyle digital
TV channels
Gareth Pearce-Thomas CEO of IDS said: "The hospital and retail sectors continue to be our main focus of business. The
commencement by our NHS business partner of the roll-out of its bedside entertainment system powered by our software
licence, has raised our profile and led to preliminary discussions with a number of overseas hospitals. In the retail
arena, the efforts of our business partner Positive Communications has enabled us to bring forward the release of the
interactive (touch screen) version of the Media Showcase system, which is receiving positive feedback from a number of
retailers looking for customer/store interaction. As a result of our progress, I am excited about the opportunities
available to us and the direction we are taking the Company."
Contacts:
Gareth Pearce-Thomas Interactive Digital Solutions Tel: 01273 426 005
Hugo de Salis St Brides Media & Finance Tel: 020 7242 4477
Chairman's Statement
I am pleased to report to you our results for the six months ended 31 March 2003. Our diversification into new and
emerging markets is beginning to pay dividends with significant interest in our systems being shown by major blue chip
companies on a global basis. Since we last reported we have made steady progress with our business partners and
affiliates including BT, with whom we signed a Team Working Agreement, enabling them access to our software products
for the delivery of digital multimedia and broadband services. Our hospital business licensee has now commenced the
roll-out of its system to the NHS although somewhat later than we anticipated and our other licensees are generating
noteworthy leads in both the UK and overseas.
Due to the delay primarily in the NHS roll-out, the Company has continued to be loss making. However, in the six
months to 31 March 2003 turnover increased to #165,741 (2002: #46,323), and pre-tax losses reduced to #545,498 (2002:
#713,494). Because of the losses as at 31 March 2003 shareholders funds were less than half the Company's paid up
share capital. The Board is therefore convening an Extraordinary General Meeting for the purpose of considering what
steps should be taken to remedy the situation. This notice will be sent to shareholders in due course and further
equity financing is being raised so we have sufficient working capital to fund our requirements until the sales leads
we have detailed in this report begin to generate revenue and cash. We anticipate that this will be well before we
next report.
Our strategy of appointing a network of national and international business licensees and partners to market our
software is beginning to deliver revenue streams. We now have a presence in Europe, the Middle East, the Far East and
Africa and with the appointment of TouchPoint Solutions Inc, also in North America. TouchPoint, a software developer
and distributor of solutions to the US and Canadian retail and B2B markets, has agreed to market our software products
in tandem with their own. They are an established name and already have business connections in the region, which we
feel will greatly benefit us going forward. We believe that the creation of a broad base of business partners is the
optimum way to take our products to market both nationally and internationally. The leads generated and our rising
profile, in the Board's view, justifies this strategy.
The hotel and cruise line sectors are of course still a focal point for the Company and we remain committed to
generating business in these areas. In March we exhibited at the Annual Seatrade Convention in Florida, and with our
business partner Timna Telecommunications, conducted a series of promotional road shows in the Middle East. On both
occasions our products and software were well received. Despite recent events which have depressed these markets we
have positive opportunities in these specific markets which we anticipate will produce positive revenues in the near
future.
We believe we are at the forefront of the software technology market and as a result continue to attract new companies
wishing to integrate our software into their solutions under license. Furthermore, we have added additional IP based
TV channels to RISC's content provision portfolio following the signing of an agreement with Narrowstep the first
company to offer IP based lifestyle television channels via the Internet. This exciting new content format and delivery
mechanism enables the RISC system to offer an unparalleled level of entertainment channels targeted at lifestyles not
only via digital satellite and terrestrial platforms but also via the web. They have also signed an associated
advertising agreement, which we are confident will deliver additional incremental revenue streams going forward.
Finally I would like to thank Gareth Pearce-Thomas and his colleagues for all their efforts. I feel that we are now
positioned to take advantage of new opportunities and are well placed to convert the potential of our technology into
ongoing revenue. We hope, therefore, when we next report to have been able to convert all of this potential into
reality.
Dorian Marks
Chairman
11 June 2003
Consolidated profit and loss account
For the 6 months ended 31 March 2003
Unaudited Unaudited Audited year ended
6 months to 6 months to 30 September 2002
31 March 2003 31 March 2002
Note # # #
Turnover 165,741 46,323 243,032
Cost of sales (54,264) (31,701) (114,986)
Gross profit 111,477 14,622 128,046
Administrative expenses (652,580) (729,913) (1,350,041)
Operating loss (541,103) (715,291) (1,221,995)
Other income
Net interest (4,395) 1,797 1,690
Loss before tax (545,498) (713,494) (1,220,305)
Tax - - 66,868
Loss after tax transferred from
reserves (545,498) (713,494) (1,153,437)
Loss per share - basic 1 (0.33p) (0.48p) (0.73p)
There were no recognised gains or losses other than the loss for each period.
INTERACTIVE DIGITAL SOLUTIONS PLC
Consolidated balance sheet
At 31 March 2003
Unaudited Unaudited Audited
31 March 31 March 30 September
2003 2002 2002
# # #
Fixed Assets
Intangible assets 1,091,330 1,414,955 1,252,952
Tangible assets 64,883 141,707 74,986
1,156,213 1,556,662 1,327,938
Current Assets
Stocks 9,182 6,241 5,697
Debtors 136,172 58,658 186,443
Cash at bank and in hand 29,136 255,848 29,347
174,490 320,747 221,487
Creditors: amounts falling due within
one year 411,273 424,338 331,830
Net current liabilities (236,783) (103,591) (110,343)
Total assets less current liabilities 919,430 1,453,071 1,217,595
Creditors: amounts falling due after more
than one year 268,302 61,301 20,969
Net assets 651,128 1,391,770 1,196,626
Capital and Reserves
Called up share capital 1,669,330 1,568,330 1,669,330
Share premium account 832,553 688,754 832,553
Profit and loss account (1,850,755) (865,314) (1,305,257)
Shareholders' funds 651,128 1,391,770 1,196,626
Reconciliation of movement in shareholders' funds
Unaudited Unaudited Audited
6 months 6 months for the year
to to ended
31 March 31 March 30 September
2003 2002 2002
# # #
Loss for the period (545,498) (713,494) (1,153,437)
Receipts from Issue of shares - 173,017 417,816
Opening shareholders' funds 1,196,626 1,932,247 1,932,247
Closing shareholders' funds 651,128 1,391,770 1,196,626
INTERACTIVE DIGITAL SOLUTIONS PLC
Notes to the interim results
For the 6 months ended 31 March 2003
1 The calculation of loss per share is based on the loss on ordinary activities after taxation
divided by the weighted average number of shares in issue for the period which was 166,933,000
(149,830,238 for the period ended 31 March 2002 and 157,682,499 for the year ended 30 September
2002).
2 The Directors do not recommend the payment of an interim dividend.
3 The financial information contained in this document does not constitute statutory accounts within
the meaning of section 240 of the Companies Act 1985. The financial information for the year ended
30 September 2002 is extracted from the audited financial statements for that period on which the
auditors gave an unqualified report. A copy of those financial statements has been filed with the
Registrar of Companies.
4 Copies of this statement are being posted to shareholders and will be available from the Company's
Registered Office at Suite 3, Quayside Offices, Basin Road South, Portslade, East Sussex, BN41 1WF
for the next 14 days.
5 The directors approved this interim statement on 28 May 2003.
This information is provided by RNS
The company news service from the London Stock Exchange
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