Interim Results
June 16 2004 - 3:01AM
UK Regulatory
RNS Number:8068Z
Award International Holdings PLC
16 June 2004
Strictly embargoed until 0700 hours, 16 June 2004
Award International Holdings Plc
Interim Results for the six months ended 31 March 2004
Chairman's Statement
Award International Holdings Plc ("AIH" or "the Company") is a full service
promotional incentives company that provides merchandise, live events and
travel. It floated on the AIM market of the London Stock Exchange on 29 March
this year and raised #2.25m (pre expenses) by way of a placing. These results
constitute the Company's maiden interim results for the six months ended 31
March 2004.
AIH is a holding company which owns two trading subsidiaries, Award
International Limited ("Award") and Flexibreaks Travel Service Limited
("Flexibreaks").
AIH provides its clients with promotional goods and services designed to
increase brand awareness among consumers; corporate hospitality, event
management and corporate travel; and promotional goods and services exclusively
connected with travel and holiday accommodation.
Financial Review
Group turnover for the six months ended 31 March 2004 was #2.237m (full year
ended 30 September 2003: #3.504m).
Promotional merchandise accounted for around 90% of turnover with conferencing
and events accounting for the balance.
Operating profit for the six months ended 31 March 2004 was #140,000 (full year
ended 30 September 2003: #236,000). Pre-tax profit for the six months ended 31
March 2004 was #110,000 (full year ended 30 September 2003: #185,000) and
earnings per share amounted to 0.92p.
As it was acquired on 29 March 2004, these interim figures contain no
contribution to turnover from Flexibreaks.
As outlined in the prospectus for the Placing in March 2004, it is your Board's
intention in the medium term to seek capital growth and so no interim dividend
is being declared.
Shareholders' funds have increased from a negative figure of #160,000 as at 30
September 2003 to a positive figure of #1.949m as at 31 March 2004.
Outlook
As a result of Award's continued (non contracted) status as preferred supplier
to Pepsi Cola Beverages International ("PBI"), Pete Gilbert (Sales & Marketing
Director) has been appointed to Pepsi's global taskforce which is developing
premiums and incentives for 2005 across the PBI brands. This should enable Award
to retain its significant presence in the Pepsi premium catalogues going
forward.
In conjunction with this, Award has also been approached by PBI and bottlers in
Australia, Malaysia, Singapore and India regarding PBI brands which are new
geographic markets for Award and therefore represent incremental opportunities.
Following two promotions with Exxon Mobil on the Pepsi brand, Award has been
working on a Gatorade (PBI energy drink) sports bottle promotion with both PBI
and Exxon and is currently in discussions to extend this to Singapore, Australia
and South America.
In order to implement the strategy of further developing business with PBI's key
bottlers (both PBI and non PBI brands) it is intended to recruit two new sales
managers during the second half of the year. As an interim measure, the existing
sales force has been restructured to enable increased focus on Britvic, the UK
bottler for Pepsi, and Cantrell & Cochrane, the Irish bottler for Pepsi, as well
as PBI and bottlers in Scandinavia and Southern Europe, regions which have been
identified as key growth areas.
The additional sales resource, once appointed, will also enable Award to develop
further relationships with key agencies (who have their own large client bases)
and with third party partners such as Exxon, Shell, Texaco and Nestle.
With the experience gained from working with film distributor Buena Vista
International ("BVI"), and with a wide network of partner agencies who also work
other distributors, Award is keen to develop further the higher volume third
party promotional and DVD release opportunities within this sector.
Further integration of the events and travel departments combined with a focus
on travel promotions and incentives should also provide an increased
contribution to the Group's profits.
For further information please contact:
Award International Holdings Plc
Vic Bussey, Managing Director
Pete Gilbert, Sales & Marketing Director
Tony Searles, Finance Director
Tel: 01843 295555
Www.awardplc.com
Tavistock Communications
Katy Pratt/Lulu Bridges
Tel: 020 7920 3150
Email:kpratt@tavistock.co.uk
Seymour Pierce
Louise Carpenter
Tel: 020 7107 8000
Award International Holdings Plc
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the 6 months ended 31 March 2004
Unaudited Unaudited
6 months ended Year ended
31 March 30 September
2004 2003
#'000 #'000
TURNOVER 2,237 3,504
Cost of sales (1,572) (2,237)
_______ _______
Gross profit 665 1,267
Distribution costs (181) (319)
Administrative expenses (344) (722)
Other operating income - 10
_______ _______
OPERATING PROFIT 140 236
Interest payable (30) (51)
_______ _______
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 110 185
Taxation (20) (5)
_______ _______
PROFIT ON ORDINARY ACTIVITIES
AFTER TAXATION 90 180
======== =======
EARNINGS PER SHARE
Basic 0.92p n/a
======== =======
Diluted 0.90p n/a
======== =======
Award International Holdings Plc
CONSOLIDATED BALANCE SHEET
31 March 2004
Unaudited Unaudited
31 March 30 September
2004 2003
#'000 #'000
FIXED ASSETS
Intangible assets - positive goodwill 277 -
Intangible assets - negative goodwill (92) -
Tangible assets 154 160
_______ _______
339 160
_______ _______
CURRENT ASSETS
Stocks 331 108
Debtors 3,146 1,331
Cash at bank and in hand 27 23
_______ _______
3,504 1,462
CREDITORS
Amounts falling due within one year (1,697) (1,753)
_______ _______
NET CURRENT ASSETS/(LIABILITIES) 1,807 (291)
_______ _______
TOTAL ASSETS LESS CURRENT LIABILITIES 2,146 (131)
CREDITORS
Amounts falling due after more
than one year (182) (14)
_______ _______
1,964 (145)
PROVISIONS FOR LIABILITIES AND CHARGES
Deferred taxation (15) (15)
_______ _______
1,949 (160)
======== =======
CAPITAL AND RESERVES
Called up equity share capital 325 -
Share premium account 1,534 -
Profit and loss account 90 (160)
_______ _______
1,949 (160)
======= =======
Award International Holdings Plc
CONSOLIDATED CASH FLOW STATEMENT
for the 6 months ended 31 March 2004
Unaudited Unaudited
6 months ended Year ended
31 March 30 September
2004 2003
#'000 #'000
NET CASH FLOW FROM OPERATING
ACTIVITIES
Operating profit 140 236
Depreciation and amortisation 50 116
Movement on stocks (219) 4
Movement on debtors (1,501) (557)
Movement on creditors 204 182
_______ _______
(1,326) (19)
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest paid (30) (51)
Taxation - 10
CAPITAL EXPENDITURE AND FINANCIAL
INVESTMENT
Purchase of tangible fixed assets (22) (80)
Proceeds from sale of tangible
fixed assets 7 8
_______ _______
CASH FLOW BEFORE FINANCING (1,371) (132)
FINANCING
Loan repayments - (9)
Capital element of finance leases 17 (35)
Net proceeds from the issue of
share capital 1,713 -
_______ _______
Net cash flow from financing 1,730 (44)
_______ _______
INCREASE/(DECREASE) IN CASH
IN THE PERIOD 359 (176)
======= =======
Award International Holdings Plc
NOTES TO THE INTERIM STATEMENT
for the 6 months ended 31 March 2004
1. The interim financial information does not constitute
statutory accounts for the purpose of the Companies Act 1985.
The Group has not previously prepared audited consolidated financial statements.
It was exempt from the requirement to do so as it was deemed to be a small group
as defined by the Companies Act 1985. The figures for the year ended 30
September 2003 have been prepared specifically for this report, based on the
audited financial statements of Award International Limited and Flexibreaks
Limited for the year ended 30 September 2003.
2. The interim financial information has been prepared using the same accounting
policies as set out in the companies' accounts for the year ended 30 September
2003.
3. The basic earnings per share has been calculated based on the profit on
ordinary activities after taxation and the weighted average number of ordinary
shares of #0.01 each in issue for the period of six months to 31 March 2004.
The diluted earnings per share has been calculated by adjusting the basic
earnings per share for the effects of all dilutive potential ordinary shares
arising from the company's share option schemes.
4. A copy of the interim statement is being sent to all shareholders and copies
are available for collection from the company's registered office address as
follows:
Viking House
Cliftonville Avenue
Cliftonville
Margate
Kent CT9 2AQ
This information is provided by RNS
The company news service from the London Stock Exchange
END
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