Interim Results
November 24 2003 - 6:43AM
UK Regulatory
RNS Number:4079S
City Of London Group PLC
24 November 2003
RELEASED ON BEHALF OF: Monday
CITY OF LONDON GROUP PLC November 24, 2003
CITY OF LONDON GROUP Plc - interim Report for period to September 30, 2003
(A printed copy of the full Interim Statement will be sent to shareholders
within 7 days)
CITY OF LONDON GROUP REPORTS END-SEPTEMBER NET ASSETS OF 55p A SHARE AFTER
PREVIOUSLY ANNOUNCED RCHIVE-IT.COM WRITEDOWN PROVISION
* Sale Of Email Archiving Business To Americans Now Completed
* 10p.c. Placing At 65p A Share Raises #564,000
* Investment Portfolio Shows Useful Recovery
* Half-time Profits Of #214,000 Before #1.31m Provision
City of London Group Plc, the mining PR specialist and portfolio and technology
investor, reports end-September net assets of #4.75m (including investments at
market value), equivalent to 55p a share, after deducting a #1.31m writedown
provision on the investment in 91p.c.-owned Rchive-it.com Ltd following the sale
of its business to US-based Connected Corporation.
With COLG shareholders approving the Rchive-it disposal at the EGM on November
7, the sale has now been completed and the first payment of $700,000 (#420,000)
of the $2.45m guaranteed minimum purchase price (plus a one per cent equity
stake in Connected Corporation) has been received by Rchive-it.com. Once
received from Rchive-it in loan repayments, COLG will use the funds to reduce
group borrowings. The writedown provision is based on the difference between the
guaranteed minimum purchase price and the book value of COLG's investment.
Following the EGM approval of the Rchive-it deal, COLG announced that it had
made a placement of 868,970 shares to Savoylane Ltd, a London-based investment
company, at 65p a share to raise #564,830 which would allow a further reduction
of bank borrowings and improve the length and terms of its banking facility. The
placing represented a 10p.c. issue, as permitted by a renewed resolution at
July's AGM. It brings aboard further new shareholders.
The quoted investment portfolio made a useful recovery in the period to
end-September, having a market worth of #6.33m at that date, #786,000 greater
than net book value. This surplus over book value compares with an end-March
shortfall of #23,000 on book value, after the end-March writedown of #1.25m
against book value. Notable gainers included core holdings First Choice Holidays
and Signet. The general portfolio recovery has continued since then, boosted by
further smart rises in African Eagle, Dragon Mining, Proteome Sciences and
Ofex-listed Britannia Finance Holdings.
Before the writedown provisions, group pre-tax profits in the six months to
end-September 2003 amounted to #214,000 (#260,000). After provisions, the first
half loss was #1.10m, which compares with #2.34m in the first six months of
2002-03 when the #2.6m costs of the ECeurope.com Ltd and DBC Ltd investments
were written off.
COLG's first half profits before the writedown provisions were made up of a PR
operating loss of #59,000 (loss #26,000) on sales of #136,000 (#204,000),
unchanged investment income of #121,000, interest payable of #82,000 (#43,000),
and realised capital gains of #234,000 (#208,000), this last amount largely
resulting from additional sales of Oxiana Resources shares to contribute
further realised gains of #218,000.
At end-September, after deducting bank borrowings of #3.05m, portfolio
investments (at market value and including unlisted holdings) amounted to
#3.57m, equivalent to 41p per share. In addition, the Rchive-it.com investment
(including loans), based on the guaranteed minimum purchase price of the
business, was worth #1.36m, equivalent to an additional 15.6p per share.
Net asset value per share currently stands at 61p.
Chairman John Greenhalgh commented: "We remain with an interesting investment
in the email archiving business but no longer burning cash. Connected have a
customer base of 600 global corporates to market to - a great advantage.
Management attention which has had to keep an ever watchful eye on this business
in the past can be concentrated back into the neglected PR area as well as
giving business stimulus elsewhere. COLG is a changing group and is well
prepared to make changes when this can add value for shareholders. I have
every confidence that we will be in good shape by the year end and, with this
regained strength, addressing new horizons."
Further info: John Greenhalgh, Chairman Peter Doye, Deputy Chairman
City of London Group Plc 020 7628 5518
070500 39678 - Mobile
UNAUDITED INTERIM RESULTS
City of London Group plc
Profit & Loss Account
6 mths to 30/09/03 6 mths to 30/09/02 6 mths to 30/09/01 Yr to 31/03/03
#000 #000 #000 #000
Turnover 136 204 272 372
Operating Profit/(Loss) (59) (26) 35 (49)
Interest Receivable 0 5 13 10
Dividends Receivable 121 116 135 235
Interest Payable (82) (43) (16) (113)
(20) 52 167 83
Profit on disposal of Subsidiary 0 0 190 0
Profit/(Loss) on disposal of 234 208 (7) (3,574)
Investments
Provision for diminution in value (1,315) (2,604) 0 0
of investments
Profit before taxation (1,101) (2,344) 350 (3,491)
Taxation (21) (43) (56) (18)
Profit attributable to (1,122) (2,387) 293 (3,509)
shareholders
Dividend 0 0 (182) 0
Profit retained (1,122) (2,387) 112 (3,509)
Earnings per share (12.91p) (27.81)p 3.45p (40.62)p
Rate of Dividend 0.00p 0.00p 2.13p (40.62)p
Notes
1. Because the charge for taxation is for a period of less than one year, the
provision is based on the best estimate of the effective rate for the full
year.
2. The calculation of earnings per Ordinary Share is based on the loss after
taxation of #1,122,000 (2002 #2,387,000) and on the number of shares in
issue being the weighted average number of shares in issue during the
period of 8,689,730 (2002 8,584,155).
3. The information given as comparative figures for the financial year ended
31st March 2003 was extracted from the Company's statutory accounts for
that financial year. Statutory accounts for that financial year have been
reported on by the Company's auditors and delivered to the Registrar of
Companies. The report of the auditors was unqualified.
4. The interim report, including the financial information contained therein,
is the responsibility of, and has been approved by the directors. The
Listing Rules of the London Stock Exchange require that the accounting
policies and presentation applied to the interim figures should be
consistent with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are disclosed.
UNAUDITED INTERIM RESULTS
City of London Group plc
Balance Sheet
6 mths to 30/09/03 6 mths to 30/09/02 Yr to 31/03/03
#000 #000 #000
Investments 5,791 8,970 5,843
Fixed Assets 7 10 8
5,798 8,980 5,851
Current Assets:
Current asset investments 1,359 0 2,392
Debtors 89 66 61
Cash 1 16 209
1,449 82 2,662
Creditors:amounts
falling due within 1 yr (3,334) (2,909) (3,478)
Net Current Assets (1,885) (2,827) (816)
Total Assets less
current liabilities 3,913 6,153 5,035
Provision for liabilities 0 0 0
and charges
Net Assets 3,913 6,153 5,035
Share Capital 869 869 869
Share Premium 4,201 4,198 4,201
P&L Reserves (1,157) 1,086 (35)
3,913 6,153 5,035
UNAUDITED INTERIM RESULTS
City of London Group plc
Cashflow
6 mths to 30/09/03 6 mths to 30/09/02 Yr to 31/03/03
#000 #000 #000
Cashflow from Operating Activities (364) (35) (958)
Returns on Investments & Servicing of Finance
Interest Paid (82) (43) (113)
Interest Received 0 5 10
Dividends Received 132 129 249
Net Cash inflow from returns on 50 91 146
investments and servicing of finance
Taxation 0 0 (186)
Capital Expenditure & Financial
Investment
Purchase of tangible fixed assets 0 (2) (3)
Purchase of Investments (44) (839) (496)
Sale of Investments 325 442 591
Payments made under loan guaranteed 0 0 (300)
Net Cash outflow from capital expenditure
and financial investment 281 (399) (208)
Acquisitions and disposals
Sale of subsidiary 0 0 0
Equity Dividends paid (58) (312) (401)
Increase in Bank loans 0 559 1,722
Repayment of bank loans (132)
Issue/(Costs) of Ordinary Share 0 (6) 0
Capital
(190) 241 1,321
(223) (102) 115
Reconciliation of operating profit to net cashflow
from operating activities
Operating profit (59) (26) (49)
Depreciation charged 1 3 7
(Increase)/Decrease in current asset (278) 0 (937)
investments
(Increase)/Decrease in debtors (39) 12 17
Increase/(Decrease) in creditors 11 (24) 4
(364) (35) (958)
This information is provided by RNS
The company news service from the London Stock Exchange
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