Interim Results
September 30 2003 - 3:30AM
UK Regulatory
RNS Number:3163Q
10 Group PLC
30 September 2003
10 Group plc
Interim results for the six months ended 30 June 2003
Proposal for capital consolidation
Chairman's statement
As I reported in my statement for the year ended 31 December 2002 all trading
operations of the Group have now been sold or closed and we have concentrated on
managing the property liabilities of the Group with the aim of minimising losses
and cash outflow. I am pleased to report that in August 2003 we completed the
sale of our freehold premises in Birmingham for #750,000 and have repaid the
mortgages on that property. I am also pleased to report that we have now
negotiated a surrender of the lease including dilapidations with the landlord of
our premises in London. The effect of these two transactions is significantly
to reduce the monthly loss and cash outflow.
Results
However, in the six months ended 30 June 2003 we recorded a loss on ordinary
activities before taxation of #511,000 (2002: #1,092,000). This result reflects
the costs of the closure or disposal of the Group businesses and these losses
are now substantially stemmed.
Current position
We are currently seeking an appropriate acquisition to enhance shareholder value
going forward. The successful conclusion of the property disposals has cleared
the way for such an acquisition to proceed and we are presently in advanced
stage of discussions. In order to facilitate an acquisition together with a
fundraising we believe that a share consolidation should be effected to make the
Company's shares more attractive to investors.
Share consolidation
There are currently over 2.4 billion ordinary shares of 0.01p in issue. The
price of existing ordinary shares, as at the close of business on 29 September
2003 was 0.04p per share, with a bid offer spread of 0.03p to 0.05p per share.
In order, inter alia, to reduce the spread of the existing ordinary shares, it
is proposed to consolidate every 100 existing ordinary share of 0.01p into a
single consolidated share of 1p. Fractions arising from consolidation will be
aggregated and sold for the benefit of the Company.
For example, if you held 10,000 existing ordinary shares, these would be
consolidated into 100 consolidated shares of 1p each. Thus, the number of
shares would have been decreased and the nominal value increased, such that,
disregarding market price movements, the value of your holding would remain the
same.
The consolidation requires a resolution to be passed by shareholders and this
will be proposed at the Annual General Meeting to be held on 27 October 2003,
notice of which will be sent to shareholders. The consolidation will take
effect the day following the AGM subject to passing of the appropriate
resolution.
The future
Much as been achieved in the current year and we look forward to finally taking
your Group forward in the not so far future.
Neil McGowan
30 September 2003
10 GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
SIX MONTHS TO 30 JUNE 2003
6 months ended 6 months ended
30 June 30 June Year ended
2003 2002 31 December
(unaudited) (unaudited) 2002
#000 #000 (audited)
#000
Turnover 528 581 1,021
Cost of sales (811) (361) (932)
Gross (loss)/profit (282) 220 89
Administrative expenses (542) (577) (1,673)
Operating (loss) (824) (357) (1,584)
Exceptional items (323) (724) (1,117)
Profit on disposal of subsidiaries 653 - 45
(Loss) on ordinary activities before interest (494) (1,081) (2,656)
Interest and similar charges (17) (11) (32)
Loss on ordinary activities before taxation (511) (1,092) (2,688)
Minority interest - - (48)
Taxation - (40) -
Loss on ordinary activities after taxation (511) (1,132) (2,736)
Loss per ordinary share 0.03p 0.07p 0.14p
10 GROUP PLC
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2003
As at As at As at
30 June 30 June 31 December
2003 2002 2002
(unaudited) (unaudited) (audited)
#000 #000 #000
Fixed assets
Tangible assets 717 856 737
Intangible assets - 50 -
Investments - 266 5
717 1,172 742
Current assets
Stock - - 9
Investments 122 604 354
Debtors 575 761 292
Cash 65 748 501
762 2,113 1,156
Creditors: amounts falling due within one year (771) (632) (678)
Net current (liabilities)/assets (9) 1,481 478
Total assets less current liabilities 708 2,653 1,220
Creditors: amounts falling due after one year (586) (587) (586)
Net assets 122 2,066 634
Capital and reserves
Called up share capital 9,533 9,483 9,533
Share premium account 7,082 6,988 7,082
Capital redemption reserve 3,564 3,564 3,564
Profit and loss account (20,057) (17,969) (19,545)
Equity shareholders' funds 122 2,066 634
NOTES TO THE FINANCIAL STATEMENTS
1. Financial Information and comparatives
The interim results for the six months ended 30 June 2003 are unaudited and do
not constitute accounts within the meaning of section 240 of the Companies Act
1985. The interim results have been drawn up using accounting policies and
presentation consistent with those applied in the audited accounts for the
period ended 31 December 2002.
The information in respect of the year ended 31 December 2002 has been extracted
from the audited statutory accounts of that year which have been delivered to
the registrar of Companies. The report of the auditors on those statutory
accounts was unqualified.
2. Taxation
No liabilities to UK corporation tax arose on the ordinary activities of the
Company.
3. Dividend
No dividend is proposed.
4. Annual General Meeting
The Annual General Meeting will be held at 10.00 am on Monday 27 October 2003 at
the offices of Field Fisher Waterhouse, 35 Vine Street, London EC3N 2AA
5. Copies of this report together with the Notice of Annual General
Meeting have been sent to shareholders today and are available to the public at
the registered office of 10 Group plc, Radbourne, 56 Kenilworth Road, Leamington
Spa, Warwickshire CV32 6JW and at the offices of City Financial Associates
Limited, Pountney Hill House, 6 Laurence Pountney Hill, London EC4R 0BL.
This information is provided by RNS
The company news service from the London Stock Exchange
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