Half Yearly Report
March 31 2009 - 2:01AM
UK Regulatory
TIDMNEB
RNS Number : 7643P
Net b2b2 PLC
31 March 2009
31 March 2009
Netb2b2 plc
Interim results for the six months ended 31 December 2008
Netb2b2 plc ("Netb2b2" or "the Group"), the digital communications business,
today announces its unaudited interim results for the six months ended 31
December 2008.
Enquiries, please contact:
Geoffrey Griggs
Finance Director
Netb2b2 PLC
020 7689 8800
Azhic Basirov/ Siobhan Sergeant
Smith & Williamson Corporate Finance Limited
020 7131 4000
Chairman's statement
Financial and operational review
During the six months ended 31 December 2008, the Group has continued to reduce
overhead costs although this restructuring has resulted in some non-recurring
costs in the period.
cScape has continued to build up a broad base of clients including big
corporations, government bodies and membership organisations. Trading has
continued at an acceptable level in the government and membership organisation
sectors.
However in the autumn of 2008 many large corporations took precautionary
measures in the face of the recession. This included cutting back or postponing
some of their digital plans which adversely affected cScape's business. In
response cScape cut staff costs and is currently trading profitably and working
at close to full capacity.
Blue Sky's business has remained stable and recorded a reasonable result for the
period. The business is currently looking for additional opportunities in cloud
computing and related services.
Fernhart recorded a loss during the period and ITM encountered some difficult
market conditions with the current reduction in print advertising.
The Group was comfortably within its overdraft facilities at the period end.
Outlook
The Group continues to explore ways of reducing its cost base and maximising its
revenue.
Keith Young
Chairman
31 March 2009
CONSOLIDATED INCOME STATEMENT
For the 6 months ended 31 December 2008
+----------------------------------+----------------------------------+----------+-----------+--+----------+
| | Unaudited | | Unaudited | | Year |
| | 6 Months | | 6 Months | | Ended |
| | to | | to | | 30 June |
| | 31/12/08 | | 31/12/07 | | 2008 |
+----------------------------------+----------------------------------+----------+-----------+--+----------+
| | GBP'000 | | GBP'000 | | GBP'000 |
| | | | 3,356 | | 7,433 |
| Revenue | | | (1,018) | | (2,114) |
| Existing operations | 3,457 | | | | |
| Cost of sales | (1,054) | | | | |
+----------------------------------+----------------------------------+----------+-----------+--+----------+
| Gross profit | 2,403 | | 2,338 | | 5,319 |
| Administrative expenses | (2,470) | | (2,448) | | (5,128) |
+----------------------------------+----------------------------------+----------+-----------+--+----------+
| Earnings before interest, tax, | (67) | | (110) | | 191 |
| depreciation, amortisation and | (111) | | (88) | | (218) |
| impairment losses | - | | - | | (400) |
| Depreciation | - | | - | | (1,026) |
| Provisions for liabilities | | | | | |
| Provision for impairment losses | | | | | |
+----------------------------------+----------------------------------+----------+-----------+--+----------+
| (Loss) from operations | (178) | | (198) | | (1,453) |
| Discontinuance of business and | - | | - | | 75 |
| settlement of pension | (128) | | - | | - |
| liabilities in respect thereof | | | | | |
| Restructuring costs | | | | | |
+----------------------------------+----------------------------------+----------+-----------+--+----------+
| Finance income | 5 | | - | | 24 |
+----------------------------------+----------------------------------+----------+-----------+--+----------+
| Finance cost | (30) | | (13) | | (104) |
| (Loss) before tax | | | | | |
+ +----------------------------------+----------+-----------+ +----------+
| | (331) | | (211) | | (1,458) |
+----------------------------------+----------------------------------+----------+-----------+--+----------+
| Taxation | - | | - | | - |
+----------------------------------+----------------------------------+----------+-----------+--+----------+
| (Loss) for the period | (331) | | (211) | | (1,458) |
+----------------------------------+----------------------------------+----------+-----------+--+----------+
| (Loss) per share- basic | (3.0p) | | (3.4p) | | (17.9p) |
+----------------------------------+----------------------------------+----------+-----------+--+----------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 6 months ended 31 December 2008
+-------------------------------------+--+------------+--+-----------+--+-----------+
| | | Unaudited | | Unaudited | | Audited |
| | | 6 months | | 6 months | | Year |
| | | to 31 | | to 31 | | Ended |
| | | December | | December | | 30 June |
| | | 2008 | | 2007 | | 2008 |
| | | GBP'000 | | GBP'000 | | GBP'000 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| | | | | (211) | | (1,458) |
| (Loss) for the period | | (331) | | | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Total recognised income and | | (331) | | (211) | | (1,458) |
| expenses for the period | | | | | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Shares issued in the period | | 25 | | 250 | | 500 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Share issue costs | | - | | (27) | | (39) |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Net change in equity in the period | | (306) | | 12 | | (997) |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Opening equity | | 758 | | 1,755 | | 1,755 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Closing equity | | 452 | | 1,767 | | 758 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
CONSOLIDATED BALANCE SHEET
As at 31 December 2008
+-------------------------------------+--+------------+--+-----------+--+-----------+
| | | Unaudited | | Unaudited | | Audited |
| | | 31 | | 31 | | 30 June |
| | | December | | December | | 2008 |
| | | 2008 | | 2007 | | GBP'000 |
| | | GBP'000 | | GBP'000 | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| | | | | | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| ASSETS | | | | | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Non Current Assets | | | | | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Other intangible assets | | 1,252 | | 2,278 | | 1,252 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Property, plant and equipment | | 611 | | 524 | | 631 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| | | 1,863 | | 2,802 | | 1,883 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| CURRENT ASSETS | | | | | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Inventories | | 77 | | 75 | | 77 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Trade and other receivables | | 1,289 | | 1,272 | | 1,498 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Cash and cash equivalents | | 378 | | 488 | | 409 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| | | 1,744 | | 1,835 | | 1,984 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| TOTAL ASSETS | | 3,607 | | 4,637 | | 3,867 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| | | | | | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| LIABILITIES | | | | | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Current Liabilities | | | | | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Trade and other payables | | 818 | | 921 | | 1,045 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Financial liabilities | | 568 | | 495 | | 561 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Current tax liabilities | | 1,405 | | 1,454 | | 1,009 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| | | 2,791 | | 2,870 | | 2,615 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Non-Current Liabilities | | | | | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Financial liabilities | | 14 | | - | | 94 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Provisions for liabilities and | | 350 | | - | | 400 |
| other charges | | | | | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| | | 364 | | - | | 494 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| TOTAL LIABILITIES | | 3,155 | | 2,870 | | 3,109 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| | | | | | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| EQUITY | | | | | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Share capital | | 1,131 | | 856 | | 1,106 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Share premium | | 514 | | 526 | | 514 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Capital redemption reserve | | 6 | | 6 | | 6 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| Retained earnings | | (1,199) | | 379 | | (868) |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| TOTAL EQUITY | | 452 | | 1,767 | | 758 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| | | | | | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| | | | | | | |
+-------------------------------------+--+------------+--+-----------+--+-----------+
| TOTAL LIABILITIES AND EQUITY | | 3,607 | | 4,637 | | 3,867 |
+-------------------------------------+--+------------+--+-----------+--+-----------+
CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 31 December 2008
+------------------------------------------+----------------+---------------+------------+
| | Unaudited | Unaudited | Audited |
| | 31 December | 31 December | 30 June |
| | 2008 | 2007 | 2008 |
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------+----------------+---------------+------------+
| | | | |
+------------------------------------------+----------------+---------------+------------+
| Operating activities | | | |
+------------------------------------------+----------------+---------------+------------+
| (Loss) from operations | (178) | (198) | (1,453) |
+------------------------------------------+----------------+---------------+------------+
| Impairment provision | - | - | 1,026 |
+------------------------------------------+----------------+---------------+------------+
| Depreciation | 111 | 88 | 218 |
+------------------------------------------+----------------+---------------+------------+
| Other provision | (50) | - | 400 |
+------------------------------------------+----------------+---------------+------------+
| (Profit)/Loss on sale of fixed assets | - | - | (1) |
+------------------------------------------+----------------+---------------+------------+
| Decrease/ (increase) in trade and other | 209 | 214 | (16) |
| receivables | | | |
+------------------------------------------+----------------+---------------+------------+
| Increase/(decrease) in trade and other | 42 | (79) | (185) |
| payables | | | |
+------------------------------------------+----------------+---------------+------------+
| (Increase) in inventory | - | - | (2) |
+------------------------------------------+----------------+---------------+------------+
| | | | |
+------------------------------------------+----------------+---------------+------------+
| Cash inflow/ (outflow) from operation | 134 | 25 | (13) |
+------------------------------------------+----------------+---------------+------------+
| Interest paid | (30) | (13) | (104) |
+------------------------------------------+----------------+---------------+------------+
| Interest received | 5 | - | 24 |
+------------------------------------------+----------------+---------------+------------+
| | | | |
+------------------------------------------+----------------+---------------+------------+
| Net cash inflow/ (outflow) from | 109 | 12 | (93) |
| operating activities | | | |
+------------------------------------------+----------------+---------------+------------+
| Purchase of property, plant and | (91) | (80) | (342) |
| equipment | | | |
+------------------------------------------+----------------+---------------+------------+
| Proceeds from sale | - | - | 1 |
+------------------------------------------+----------------+---------------+------------+
| Net cash used in investing activities | (91) | (80) | (341) |
+------------------------------------------+----------------+---------------+------------+
| | | | |
+------------------------------------------+----------------+---------------+------------+
| Cash flow from financing activities | | | |
+------------------------------------------+----------------+---------------+------------+
| Finance leases and hire purchase | (68) | (35) | 84 |
| obligations | | | |
+------------------------------------------+----------------+---------------+------------+
| Proceeds from share issue | 25 | 250 | 500 |
+------------------------------------------+----------------+---------------+------------+
| Expenses in connection with share | - | (27) | (39) |
| capital | | | |
+------------------------------------------+----------------+---------------+------------+
| Increase in bank loan | - | 120 | 32 |
+------------------------------------------+----------------+---------------+------------+
| Repayment of bank loans | (110) | - | - |
+------------------------------------------+----------------+---------------+------------+
| Net cash (outflow)/ received from | (153) | 308 | 577 |
| financing activities | | | |
+------------------------------------------+----------------+---------------+------------+
| Net change in cash equivalents | (135) | 240 | 143 |
+------------------------------------------+----------------+---------------+------------+
| Cash and cash equivalents at the | 209 | 66 | 66 |
| beginning of the period | | | |
+------------------------------------------+----------------+---------------+------------+
| Cash and cash equivalents at the end of | 74 | 306 | 209 |
| the period | | | |
+------------------------------------------+----------------+---------------+------------+
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 6 months ended 31 December 2008
1. FINANCIAL INFORMATION
The financial information is for the six months ended 31 December 2008 and is
neither audited nor reviewed as defined by APB Bulletin 1999/4.
The results for the year ended 30 June 2008 have been audited whilst the results
for the six months ended 31 December 2007 and 31 December 2008 are unaudited.
The financial information contained in this interim report does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. The
statutory accounts for the year ended 30 June 2008, which were prepared under
IFRS, have been filed with the registrar of Companies.The auditors' opinion on
those accounts was unqualified.
2. INTERNATIONAL FINANCIAL REPORTING STANDARDS
The consolidated financial information has been prepared using accounting
policies consistent with International Financial Reporting Standards ('IFRS') as
adopted by the European Union applied in accordance with the provisions of the
Companies Act 1985.
3.SEGMENTAL INFORMATION
The Group operates in the UK and the whole of its turnover and profit relate to
continuing activities and to the UK market.
+--------------------------------------------------+----------+------------+------------+------------+
| | | Six | Six | Year |
| | | months | months | Ended |
| | | Ended | Ended | 30.06.2008 |
| | | 31.12.2008 | 31.12.2007 | Audited |
| | | Unaudited | Unaudited | |
+--------------------------------------------------+----------+------------+------------+------------+
| | | GBP000's | GBP000's | GBP000's |
+--------------------------------------------------+----------+------------+------------+------------+
| Turnover | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| Internet | | 1,910 | 1,898 | 4,148 |
| services | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| Publishing | | 869 | 747 | 1,901 |
| and | | | | |
| Digital | | | | |
| Communication | | | | |
| Services | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| Specialist | | 431 | 438 | 842 |
| Hosting | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| Media | | 247 | 273 | 542 |
| and | | | | |
| interactive | | | | |
| technology | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| Group | | 3,457 | 3,356 | 7,433 |
| turnover | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| Loss | | | | |
| before | | | | |
| tax | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| Internet | | 40 | 95 | 447 |
| services | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| Publishing | | (65) | 13 | 11 |
| and | | | | |
| Digital | | | | |
| Communication | | | | |
| Services | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| Specialist | | 53 | 98 | 186 |
| Hosting | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| Media | | (26) | (39) | (90) |
| and | | | | |
| interactive | | | | |
| technology | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| Central | | (205) | (378) | (661) |
| and | | | | |
| other | | | | |
| costs | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| Exceptional | | (128) | - | (325) |
| costs | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| Impairment | | - | - | (1,026) |
| of | | | | |
| goodwill | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
| Group | | (331) | (211) | (1,458) |
| loss | | | | |
| before | | | | |
| tax | | | | |
+--------------------------------------------------+----------+------------+------------+------------+
4. GOODWILL
The board has assessed each subsidiary with reference to its durability, ability
to sustain future long term profitability and assessed ability to maintain
market position. Based on this assessment the board is of the opinion that the
one goodwill element has an indefinite economic life. The board has carried out
impairment reviews on this goodwill element and has concluded that its current
recoverable amount is in excess of its carrying value.
5. TAXATION
No liability to UK Corporation tax arose on ordinary activities for the period
owing to trade losses brought forward from previous periods.
6. LOSS PER ORDINARY SHARE
Basic loss per share is calculated by dividing the loss attributable to ordinary
shareholders by the weighted average number of ordinary shares during the year.
The diluted loss per share is the same as the actual loss per share.
+--------------------------------------------------+-------+------------+------------+------------+
| | | Six | Six | Year |
| | | Months | Months | Ended |
| | | Ended | Ended | 30.06.2008 |
| | | 31.12.2008 | 31.12.2007 | Audited |
| | | Unaudited | Unaudited | GBP000's |
| | | GBP000's | GBP000's | |
+--------------------------------------------------+-------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+-------+------------+------------+------------+
| Basic | | (331) | (211) | (1,458) |
| earnings | | | | |
| attributable | | | | |
| to ordinary | | | | |
| shareholders: | | | | |
+--------------------------------------------------+-------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+-------+------------+------------+------------+
| Weighted | | 11,069,902 | 6,197,549 | 8,144,902 |
| average | | | | |
| number | | | | |
| of | | | | |
| ordinary | | | | |
| shares | | | | |
+--------------------------------------------------+-------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+-------+------------+------------+------------+
| Loss | | (3.0p) | (3.4p) | (17.9p) |
| per | | | | |
| share: | | | | |
+--------------------------------------------------+-------+------------+------------+------------+
| | | | | |
+--------------------------------------------------+-------+------------+------------+------------+
7. ANALYSIS OF CHANGES IN NET (DEBT)/ FUNDS
+-------------------------------------------------+------------+--------------+------------+------------+
| | | At 1 July | Cash flow | At 31 |
| | | 2008 | | December |
| | | | | 2008 |
+-------------------------------------------------+------------+--------------+------------+------------+
| Net | | GBP000's | GBP000's | GBP000's |
| cash: | | | | |
+-------------------------------------------------+------------+--------------+------------+------------+
| Cash | | 408 | (29) | 379 |
| at | | | | |
| bank | | | | |
| and | | | | |
| in | | | | |
| hand | | | | |
+-------------------------------------------------+------------+--------------+------------+------------+
| Bank | | (199) | (106) | (305) |
| overdrafts | | | | |
+-------------------------------------------------+------------+--------------+------------+------------+
| | | | | |
+-------------------------------------------------+------------+--------------+------------+------------+
| | | 209 | (135) | 74 |
+-------------------------------------------------+------------+--------------+------------+------------+
| | | | | |
+-------------------------------------------------+------------+--------------+------------+------------+
| Debt: | | | | |
+-------------------------------------------------+------------+--------------+------------+------------+
| Bank | | (226) | 110 | (116) |
| Loan | | | | |
| (invoice | | | | |
| discounting) | | | | |
+-------------------------------------------------+------------+--------------+------------+------------+
| Hire | | (230) | 68 | (162) |
| purchase | | | | |
| agreements | | | | |
+-------------------------------------------------+------------+--------------+------------+------------+
| | | | | |
+-------------------------------------------------+------------+--------------+------------+------------+
| Total | | (247) | 43 | (204) |
+-------------------------------------------------+------------+--------------+------------+------------+
| | | | | |
+-------------------------------------------------+------------+--------------+------------+------------+
8. COPIES OF THE INTERIM REPORT
Copies of the interim report are available from www.netb2b2.com or the company
secretary at Netb2b2 Plc, Central House, 142 Central Street, London, EC1V 8AR.
This information is provided by RNS
The company news service from the London Stock Exchange
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