Interim Results
December 22 2003 - 11:22AM
UK Regulatory
RNS Number:5700T
Beaufort International Group PLC
22 December 2003
ANNOUNCEMENT
BEAUFORT INTERNATIONAL GROUP PLC
SIX MONTHS TO 30 SEPTEMBER 2003
CHAIRMAN'S STATEMENT
Overview
The restructuring of the Group Head Office and consolidation of the resources
from the Enterprise Solutions Division into one more clearly focused consultancy
team is now complete.
This restructuring was aimed at reducing Group overhead costs, adding more
appropriate consultancy skills and directing effort into business development
and delivery activities. The fruits of these moves are now being seen in terms
of a Group cost structure that is in line with the activities we are now
undertaking, leading to our ability to gain and deliver more profitable
business.
Financial Review
In the six months to 30th September 2003, the Group generated income of #1.5m
(2002: #1.8m) and reduced operating losses to #205,000 (2002: loss #447,000) as
it continued to rationalise its operations.
Losses before taxation for the period amounted to #696,000 (2002: loss #493,000)
after providing #470,000 of exceptional costs arising from restructuring and net
interest charges of #21,000.
In the same period last year the operating loss of #447,000 was converted to a
taxable loss of #493,000 after net interest charges of #17,000 and following the
disposal of non-core businesses which generated a loss of #29,000.
Outlook
We are at last seeing an improvement in the market for our consultancy and
project management services. Whilst it would be safe to say this was a modest
improvement the outlook for our core skills in the areas of Strategy, Solutions
Delivery and Skills enhancement is more positive.
The continued focus on recruiting highly skilled consultants to add to our
existing strengths, coupled with determined efforts in client relationship
management and business development is beginning to show dividends in terms of
utilisation levels of our resources and the pipeline of assignments under
discussion.
We continue to provide services to our longstanding clients such as the
Financial Services Authority, The Co-operative Group, Telewest Broadband,
Barclaycard and Britvic. We have also added several prestigious new clients
during this year, namely BT Global Services, Costain, National Grid Transco,
Bradford and Bingley Group and Morley Fund Management.
Our strategic partnership with Combitech Systems (a subsidiary of SAAB
Aerospace) in the innovative area of Knowledge Development has generated
considerable interest and several new assignments for this service are under
consideration by existing and prospective clients.
A further strategic partnership aimed to deliver solutions to the increasingly
onerous task of measuring, diagnosing and addressing the growing impact of
stress related absence is in the final stages of completion. Beaufort
International will be partnering with a provider of leading edge tools to help
individual employees assess their own stress levels and also equip the employer
to implement programmes and organisational changes to avoid reoccurrence or
escalation of the problem.
We firmly believe the formula and organisational structure that is now in place
in the Group, allied to continued attention to client relationship management;
business development and carefully chosen strategic partnerships will continue
to build on the successes outlined above.
The Board remain indebted to the shareholders who have continued to support the
Group through these trying times. Our staff also merit considerable thanks for
their continuing commitment to rebuilding the business and delivering quality
assignments to our clients in the face of much uncertainty.
Ken Harvey
Chairman
22 December 2003
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
6 months ended
6 months ended 30 September 2003 30 September 2002
Before Exceptional Total Total
exceptional items
items
#000's #000's #'000's #000's
Turnover
Continuing operations 1,515 - 1,515 1,547
Discontinued operations 219
1,515 - 1,515 1,766
Rechargeable expenses 5 - 5 (8)
Fee income 1,520 - 1,520 1,758
Cost of sales (1,349) (59) (1,407) (1,695)
Gross (loss) / profit 171 (59) 113 63
Operating overheads
Continuing operations (376) (411) (784) (441)
Discontinued operations - - - (69)
Operating Loss
Continuing operations (205) (470) (675) (389)
Discontinued operations - - - (58)
(205) (470) (675) (447)
Loss on disposal of subsidiaries - - - (29)
Net interest expense (21) - (21) (17)
Loss before taxation (226) (470) (696) (493)
Taxation - - - -
Loss after taxation (226) (470) (696) (493)
Minority interests - - - -
Net loss for the period (226) (470) (696) (493)
Loss per Share 0.093 0.085
Fully-diluted loss per share 0.093 0.085
UNAUDITED CONSOLIDATED BALANCE SHEET as at 30 September 2003
30 September 2003 30 September 2002
#'000 #'000
Fixed assets
Tangible fixed assets 78 134
Intangible fixed assets 796 1,794
847 1,928
Current assets
Debtors 623 1,145
Cash at bank 199 176
822 1,321
Creditors: Amounts falling due within one year (1,917) (1,544)
Net current liabilities (1,095) (223)
Total assets less current liabilities (248) 1,705
Net Liabilities (248) 1,705
Capital and reserves
Called up share capital
Share premium account 3,466 3,420
Profit and loss account 4,227 3,673
Merger reserve (6,991) (4,616)
Other reserve (950) (950)
- 178
Shareholders' funds (248) 1,705
(248) 1,705
Notes
1 The financial information contained in this interim statement does not constitute statutory accounts
as defined in section 240 of the Companies Act 1985. These statements, which are unaudited, have
been prepared under the historical cost convention using the accounting policies set out in the
audited statutory accounts or the year ended 31 March 2003.
2 A provision for taxation has not been made.
3 During the period #470k of costs of an exceptional nature were charged to the profit and loss
account. These were restructuring costs relating to redundancies (#215k), vacant property
commitments (#187k) and legal costs (#66k).
4 In accordance with Accounting Standards 2002, comparative results for discontinued businesses have
been consolidated in the balance sheet up to the date of disposal and presented as a discontinued
activity in the profit and loss account. The comparatives include an exceptional charge of #29,000
resulting from the withdrawal from operations in Sweden and the sale of a Luxembourg operation.
5 Loss per share. The loss to ordinary shareholders per share is based upon a loss of #696,000 and the
weighted average number of shares ranking for dividend during the period of 749,042,451 (2002:
580,282,884). The loss attributable to ordinary shareholders and weighted average number of ordinary
shares for the purpose of calculating the diluted earnings per ordinary share are identical to those
used for basic earnings per ordinary share as the exercise of share options would have the effect of
reducing the loss per ordinary share and therefore is not dilutive under the terms of Financial
Reporting Standard 14 "Earnings per share".
6 On 8 September 2003, The Group issued 450 million shares, raising approximately #450,000 before
expenses, to provide additional working capital.
7 On 11 December 2003, The Group issued 165 million shares, raising approximately #165,000 before
expenses, to provide additional working capital.
8 No dividend is proposed.
9 Copies of this announcement are available from:
Beaufort International Group PLC's registered office at 152 Buckingham Palace Road, London, SW1W 9TR
and the offices of City Financial Associates, Laurence Pountney Hill House, Laurence Pountney Hill,
London EC4R OBL.
22 December 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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