RNS Number:8094M
Digital Animations Group PLC
26 June 2003
DIGITAL ANIMATIONS GROUP PLC
Preliminary Results
For the twelve months ended 31 March 2003
Digital Animations Group plc ("DA Group") is pleased to announce its preliminary
results for the year ended 31 March 2003.
Financial Highlights
* Turnover of #1.54m (2002: #1.42m)
* Pre-tax loss of #2.61m (2002 loss of #0.74m)
* Net asset value per share of 26.3p (2002: 35.1p)
* Cash resources of #7.51m (2002: #10.34m)
* Cash value per share of 25.3p (2002: 32.3p)
Key Points
* Court approval obtained for the cancellation of the share
premium account to allow for the proposed distribution of up to #3m to
shareholders
* DA Group held its first product launch in London on 18 June 2003
* Results for 2003 adversely affected by significant one off costs
Enquiries:
Paul McCaffrey, Finance Director 0141 582 0600
Elizabeth Lambley, Indigo PR 0131 554 1230
Chief Executive's Statement
When I last reported to you in December I felt heartened that the company was
finally moving forward with clear focus and momentum. We had redefined our
strategy and a new business plan was in place. Six months on I am happy that we
are delivering successfully against those objectives with a highly committed
team and a common sense of purpose.
Establishing that new direction for the newly branded DA Group has been a
challenge. This has been a tough year. It has taken a great deal of effort to
put things in place and implement our strategy. Ultimately the company today is
not the same business it was a year ago and whilst the figures reflect that
difficult transition, I can also report some very significant corporate
milestones, including our financial review, new appointments and the company's
first major product launch.
We have worked hard to enhance shareholder value by implementing a share
buy-back scheme which has increased the net asset value per share attributable
to remaining shareholders. Having reviewed our cash position, progress has also
been made towards our intention to distribute up to #3m to our shareholders.
The appointment of Cyril Scott as sales and marketing director, in March, is
already having a positive impact on our business strategy and market focus.
Cyril brings a wealth of experience from within a technology sales environment
and an understanding of how to take the core technologies to market through a
network of resellers, OEMs and technology partners. As well as selling our
solutions directly to end users, we are also embedding our real time animation
engine inside a variety of software applications and are similarly engaged in
detailed discussions with hardware manufacturers.
With the process of building a sales infrastructure and revenue streams for the
future now well underway, we held our first product launch on 18th June in
London. We took our virtual agents and our technology to market - actively
demonstrating the possibilities for commerce, e-learning, e-government and
mobile communications. Supported by NCR, BT, mBlox and MediaCorp we were able to
convey our message of tangible, commercial benefits through virtual agent
technology, today.
The current year's figures, therefore, must be seen in this context as
retrospective. Results were impacted by significant one-off items together with
high levels of expenditure required to achieve the product launch and our
current market position. The Board recognises that the expenditure was necessary
to develop the company and for it to have a successful future. Whilst overall
costs have risen, the underlying costs have been kept under control and we
maintain our tight fiscal policies.
So whilst times remain challenging, the past six months have not been without
their successes and we have now both the solid foundations and a springboard,
through the product launch, for the future. I would like to thank our
shareholders, staff and business partners for their continued support and
commitment to our vision for the company and our technology.
Michael Antliff
Chief Executive
26 June 2003
Results
The results for the year ended 31 March 2003 show a turnover increasing by 8.4%
to #1,542,220 (2002 - #1,422,450).
Administration costs in the year amounted to #3,990,081 (2002 - #2,135,444).
Administration costs in the year include some one-off costs namely the
impairment and amortisation of goodwill of #432,677 (2002- #66,224) and an
exceptional loss in respect of compensation for loss of office and related costs
of #259,047 (2002-#nil). This year also includes a full year's costs in relation
to Black ID compared with the 6 months included from the date of consolidation
last year. The group continues its scheduled programme of investment in research
and new product development and costs this year amounted to #929,528 (2002 -
#670,012). These costs are charged to the profit and loss account as incurred.
An operating loss of #1,333,686 (2002 - #524,776) has resulted before research
and development expenditure of #929,528 (2002 - #670,012), impairment and
amortisation of goodwill of #432,677 (2002 - #66,224) and an exceptional loss of
#259,047 (2002-#nil). Overall results show a pre tax loss for the year of
#2,609,304 (2002 loss - #743,062).
The tax charge of #111,000 (2002 - #79,000) represents the write off of the
balance of the deferred tax asset in our subsidiary Black ID. Consequently the
loss per share was 8.53p (2002 - 2.58p).
The group continues to maintain its strong balance sheet position with net
assets of #7,818,034 (2002 - #11,226,666). This represents a net asset value per
share of 26.3p (2002 - 35.1p). This excludes the value of our intellectual
property that is not reflected in the group balance sheet. Our cash position
amounted to #7,513,663 which represents a cash value per share of 25.3p.
Proposed distribution to shareholders
Following the Extraordinary General Meeting held on 27 March 2003 at which the
resolution to cancel the share premium account was approved, we are making
progress with the proposed distribution of up to #3 million to shareholders. On
24 June 2003 we obtained an order from the Court of Session in Edinburgh
confirming the cancellation of the share premium account of the company. This
creates sufficient distributable reserves to achieve the proposed distribution.
Further details regarding this proposal will be sent to shareholders during July
2003.
Dividend
Dividend policy continues to be as previously stated, with no dividend being
paid.
Paul McCaffrey
Finance Director
26 June 2003
GROUP PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2003
2003 2002
# #
Turnover 1,542,220 1,422,450
Cost of sales 507,077 548,018
--------------- ---------------
Gross Profit 1,035,143 874,432
Administration costs 3,990,081 2,135,444
Operating loss
Before research and development, amortisation of goodwill and
exceptional items
(1,333,686) (524,776)
Research and development expenditure (929,528) (670,012)
Impairment and amortisation of goodwill (432,677) (66,224)
Exceptional loss -compensation for loss of office and related (259,047) -
costs
--------------- ---------------
Operating loss (2,954,938) (1,261,012)
Interest payable and similar charges (12,850) (10,911)
Interest receivable and similar income 358,484 528,861
--------------- ---------------
Loss on ordinary activities before taxation (2,609,304) (743,062)
Tax on ordinary activities (111,000) (79,000)
--------------- ---------------
Loss for the year (2,720,304) (822,062)
--------- ---------
Loss per ordinary share (8.53)p (2.58)p
--------- ---------
Diluted loss per ordinary share (8.53)p (2.58)p
--------- ---------
Turnover and operating loss arise from continuing operations in both years.
There are no recognised gains and losses for the year other than the loss for
the year of #2,720,304 (2002 loss - #822,062).
GROUP BALANCE SHEET
at 31 March 2003
2003 2002
# #
Fixed assets
Intangible assets - 596,014
Tangible assets 415,459 543,025
Investments 156,965 127,384
--------------- ---------------
572,424 1,266,423
--------------- ---------------
Current assets
Debtors 494,401 1,103,185
Cash at bank and in hand 7,513,663 10,336,693
--------------- ---------------
8,008,064 11,439,878
Creditors: amounts falling due within one year 738,162 1,211,817
--------------- ---------------
Net Current Assets 7,269,902 10,228,061
--------------- ---------------
Total assets less current liabilities 7,842,326 11,494,484
Creditors: amounts falling due after more than one year - 163,172
Provisions for liabilities and charges 24,292 100,450
Accruals and deferred income - 4,196
--------------- ---------------
7,818,034 11,226,666
--------- ---------
Capital and Reserves
Called up share capital 5,278,486 5,503,320
Share premium account 11,876,853 11,811,856
Shares to be issued - 295,000
Capital redemption reserve 291,500 -
Profit and loss account (9,628,805) (6,383,510)
Shareholders' funds:
Equity 5,513,651 8,922,283
Non-equity 2,304,383 2,304,383
--------------- ---------------
7,818,034 11,226,666
--------- ---------
GROUP STATEMENT OF CASHFLOWS
for the year ended 31 March 2003
2003 2002
# #
Net cash outflow from operating activities (2,139,132) (1,448,371)
Returns on investments and servicing of finance 350,613 517,147
Capital expenditure and financial investment (93,858) (532,853)
Acquisitions and disposals - (38,706)
--------------- ---------------
Cash (outflow before use of liquid
Resources & financing (1,882,377) (1,502,783)
Financing (935,674) (36,261)
--------- --------
Decrease in cash in the year (2,818,051) (1,539,044)
--------- --------
Reconciliation Of Net Cash Flow to Movement in Net Funds
Decrease in cash in the year (2,818,051) (1,539,044)
Cash outflow from decrease in debt 454,308 12,622
Cash used to repay capital element of finance leases 7,230 53,754
-------------- --------------
Change in net funds resulting from cash flows (2,356,513) (1,472,668)
Loans and finance leases acquired with subsidiary - (594,318)
Translation difference (4,979) 803
-------------- --------------
Movement in net funds in the year (2,361,492) (2,066,183)
Net funds at 1 April 9,723,973 11,790,156
-------------- --------------
Net funds at 31 March 7,362,481 9,723,973
-------- --------
NOTES
1. Reconciliation of operating loss to net cash outflow from
operating activities
2003 2002
# #
Operating loss (2,954,938) (1,261,012)
Depreciation of tangible fixed assets 177,140 114,707
Amortisation of intangible fixed assets 432,677 66,224
Provision against fixed asset investments 7,463 1,369
Loss / (gain) on sale of fixed assets 7,240 (18,323)
Decrease in deferred income (4,196) (9,018)
Decrease / (increase) in debtors 497,784 (486,901)
(Decrease) / increase in creditors (226,144) 236,010
Decrease in provisions for liabilities and charges (76,158) (91,427)
-------------- --------------
Net cash outflow from operating activities (2,139,132) (1,448,371)
---------- ----------
2. Analysis of cash flows for headings netted in the cash flow
statement
2003 2002
Returns on investments and servicing of finance
# #
Interest received 358,484 528,058
Interest paid (8,642) (5,746)
Interest element of finance lease rental payments 771 (5,165)
----------- -----------
350,613 517,147
----------- -----------
Capital expenditure and financial investment
# #
Purchase of tangible fixed assets (96,472) (475,411)
Purchase of fixed asset investments (37,044) (103,522)
Disposal of tangible fixed assets 39,658 46,080
----------- -----------
(93,858) (532,853)
----------- -----------
Acquisitions
# #
Purchase of subsidiary undertaking - (32,504)
Net overdraft acquired with subsidiary undertaking - (6,202)
----------- -----------
- (38,706)
----------- -----------
Financing
# #
Issue of ordinary share capital - 30,115
Repurchase of ordinary share capital (474,136) -
Decrease in long term borrowings (454,308) (12,622)
Capital element of finance lease rental payments (7,230) (53,754)
----------- -----------
(935,674) (36,261)
----------- -----------
3. Analysis of net funds
At 1 April 2002 Cash flow Other Changes Exchange At 31 March
difference
2003
# # # #
Cash at bank and in hand 10,336,693 (2,818,051) - (4,979) 7,513,663
Debt due within 1 year (442,318) 442,318 (150,000) (150,000)
Debt due after 1 year (161,990) 11,990 150,000 -
Finance leases (8,412) 7,230 - (1,182)
--------- --------- --------- --------- ---------
9,723,973 (2,356,513) - (4,979) 7,362,481
---------- ---------- ---------- ---------- ----------
4. This statement was approved by the board on 25 June 2003. It does not constitute the Company's statutory
accounts for the year ended 31 March 2003 but is derived from those accounts. The Auditors have reported
on those accounts and their report is unqualified and did not contain statements under s237(2) or (3) of
the Companies Act 1985.
5. It is expected that full accounts for the year ending 31 March 2003 will be despatched to shareholders
during July 2003.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UNARROKRNUAR