TIDMXPH
RNS Number : 6886U
X-Phonics plc
29 June 2009
29 June 2009
X-PHONICS PLC ("X-Phonics" or the "Company")
Interim Statement for the period ended 31st March 2009
CHAIRMAN'S STATEMENT
I present the financial statements for the six months to 31st March 2009.
It continues to be a difficult time for the music industry and there has been
little improvement in the fortunes of smaller businesses such as ours that do
not have established artists generating revenues with which to support the
development of newer artists. As stated in my previous statement the market
further deteriorated in the early part of 2009. The larger records labels,
through which we had previously jointly developed our artists, have taken on
very few new projects. Retail distribution in the high street is sparse with
those active in the market only interested in selling established artist
product. Alternative distribution channels are also concerned about taking on
developing artists and offer less attractive returns when they do so.
Financial Commentary
Sales of GBP67,712 were primarily achieved from our earlier stage artists and
from other non-music related activities that have been developed. Maeve O'Boyle
has recorded her first album which is expected to be released through Linn
Records in July 2009.
Overheads have been reduced substantially to offset, as far as is possible, the
lack of sales. The directors are not drawing salaries and do not intend to do so
under current circumstances. Other costs are being managed at a significantly
lower level than in previous periods.
As I said in my statement published in April, given the company's current
situation and its reliance upon the music industry, the directors believe that
it is in the best interest of shareholders to limit any additional exposure in
that sector other than to what is necessary to maintain the collection of cash
from existing projects.
I also said that the directors believed it sensible to seek alternative
opportunities that could make use of the company's infrastructure and listing on
AIM in market sectors where there is scale, growth and a revenue model that is
better suited to a public market. We continue to seek such opportunities and I
hope to be able to report progress upon this in due course.
Robin Davies
Chairman
29 June 2009
X-Phonics plc
Consolidated Income Statement for six months ended 31st March 2009
+---------------------------+------+-------------+--+-------------+--+------------+
| | Note | 6 months | | 6 months | |Year ended |
| | | ended | | ended | | 30 |
| | | 31 March | | 31 March | | September |
| | | 2009 | | 2008 | | 2008 |
+---------------------------+------+-------------+--+-------------+--+------------+
| | |(unaudited) | |(unaudited) | | (audited) |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | GBP | | GBP | | GBP |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
| Revenue | | 67,712 | | 53,628 | | 84,567 |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
| Cost of Sales | | (24,134) | | (58,609) | | (149,716) |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
| Gross Profit/(Loss) | | 43,578 | | (4,981) | | (65,149) |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
| Administrative expenses | | (82,077) | | (212,163) | | (739,245) |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
| Operating Loss | | (38,499) | | (217,144) | | (804,394) |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
| Finance income | | 1 | | 618 | | 653 |
+---------------------------+------+-------------+--+-------------+--+------------+
| Finance costs | | (221) | | (651) | | (882) |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
| Loss on ordinary | | (38,719) | | (217,177) | | (804,623) |
| activities before | | | | | | |
| taxation | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
| Income tax expense | | - | | - | | - |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
| Loss for the period | | (38,719) | | (217,177) | | (804,623) |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
| Basic earnings per | 3. | (0.06 | | (0.33 | | (1.22 |
| ordinary share | | pence) | | pence) | | pence) |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
| Diluted earnings per | 3. | (0.06 | | (0.33 | | (1.22 |
| ordinary share | | pence) | | pence) | | pence) |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+------------+
All of the activities of the group are classed as continuing
X-Phonics plc
Consolidated Balance Sheet as at 31st March 2009
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | 31 March | | 31 March | | 30 |
| | | 2009 | | 2008 | | September |
| | | | | | | 2008 |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | |(unaudited) | |(unaudited) | | (audited) |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | GBP | | GBP | | GBP |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Non-current assets | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Intangible Assets - | | - | | 327,639 | | - |
| Goodwill | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Property, plant and | | 27,120 | | 52,459 | | 36,782 |
| equipment | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | 27,120 | | 380,098 | | 36,782 |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Current assets | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Trade and other | | 77,777 | | 105,095 | | 84,259 |
| receivables | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Cash and cash equivalents | | 5,618 | | 21,869 | | 6,359 |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | 83,395 | | 126,964 | | 90,618 |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Total assets | | 110,515 | | 507,062 | | 127,400 |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Liabilities and Equity | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Current liabilities | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Trade and other payables | | 399,077 | | 167,679 | | 376,351 |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Obligations under finance | | 5,875 | | 1,771 | | 6,767 |
| lease | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | 404,952 | | 169,450 | | 383,118 |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Non-current liabilities | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Obligations under finance | | - | | 5,882 | | - |
| lease | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Total liabilities | | 404,952 | | 175,332 | | 383,118 |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Equity | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Called-up equity share | | 2,803,119 | | 2,803,119 | | 2,803,119 |
| capital | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Share premium account | | 743,474 | | 743,474 | | 743,474 |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Merger reserve | | (738,578) | | (738,578) | | (738,578) |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Retained earnings | | (3,102,452) | | (2,476,286) | | (3,063,733) |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Total Equity | | (294,437) | | 331,729 | | (255,718) |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| Total Liabilities and | | 110,515 | | 507,061 | | 127,400 |
| Equity | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------+------+-------------+--+-------------+--+-------------+
X-Phonics plc
Consolidated Statement of Changes in Equity as at 31st March 2009
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | Share | | Share | | Merger | | Retained | | Total |
| | Capital | | Premium | | Reserve | | Earnings | | Equity |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | GBP | | GBP | | GBP | | GBP | | GBP |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| Balance at 1 | 2,803,119 | | 743,474 | | (738,578) | | (2,259,110) | | 548,905 |
| October 2007 | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| Loss for | - | | - | | - | | (217,177) | | (217,177) |
| period | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| At 31 March | 2,803,119 | | 743,474 | | (738,578) | | (2,476,287) | | 331,728 |
| 2008 | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| Loss for | - | | - | | - | | (587,446) | | (587,446) |
| period | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| At 30 | 2,803,119 | | 743,474 | | (738,578) | | (3,063,733) | | (255,718) |
| September 2008 | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| Loss for | - | | - | | - | | (38,719) | | (38,719) |
| period | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| At 31 March | 2,803,119 | | 743,474 | | (738,578) | | (3,102,452) | | (294,437) |
| 2009 | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------+-----------+--+----------+--+-----------+--+-------------+--+-----------+
X-Phonics plc
Consolidated Cash Flow Statement for six months ended 31st March 2009
+-----------------------------------+-------------+--+-------------+--+------------+
| | 6 months | | 6 months | |Year ended |
| | ended | | ended | | 30 |
| | 31 March | | 31 March | | September |
| | 2009 | | 2008 | | 2008 |
+-----------------------------------+-------------+--+-------------+--+------------+
| |(unaudited) | |(unaudited) | | (audited) |
+-----------------------------------+-------------+--+-------------+--+------------+
| | GBP | | GBP | | GBP |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Net cash (outflow)/inflow from | 370 | | (110,261) | | (124,690) |
| operating activities | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Investing activities | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Purchases of property, plant and | - | | (1,216) | | (1,217) |
| equipment | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Net cash flow before financing | 370 | | (111,477) | | (125,907) |
| activities | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Financing activities | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Interest paid | (221) | | (651) | | (882) |
+-----------------------------------+-------------+--+-------------+--+------------+
| Interest received | 1 | | 618 | | 653 |
+-----------------------------------+-------------+--+-------------+--+------------+
| Capital element of finance leases | (891) | | (3,340) | | (4,224) |
| repaid | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Net cash used in financing | (1,111) | | (3,373) | | (4,453) |
| activities | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Net (decrease)/increase in cash | (741) | | (114,850) | | (130,360) |
| and cash equivalents | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Opening net cash and cash | 6,359 | | 136,719 | | 136,719 |
| equivalents | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Closing net cash and cash | 5,618 | | 21,869 | | 6,359 |
| equivalents | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Reconciliation of operating loss | 6 months | | 6 months | |Year ended |
| to net cash outflow/inflow from | ended | | ended | | 30 |
| operating activities | 31 March | | 31 March | | September |
| | 2009 | | 2008 | | 2008 |
+-----------------------------------+-------------+--+-------------+--+------------+
| | GBP | | GBP | | GBP |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Operating Loss | (38,499) | | (217,144) | | (804,394) |
+-----------------------------------+-------------+--+-------------+--+------------+
| Depreciation | 9,661 | | 14,198 | | 29,875 |
+-----------------------------------+-------------+--+-------------+--+------------+
| Impairment of goodwill | - | | - | | 327,639 |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Operating cash flows before | (28,838) | | (202,946) | | (446,880) |
| movements in working capital | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Decrease/(increase) in | 6,483 | | 34,818 | | 55,651 |
| receivables | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Increase/(decrease) in payables | 22,725 | | 57,867 | | 266,539 |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Net movement in working capital | 29,208 | | 92,685 | | 322,190 |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Net movement in cash flow | 370 | | (110,261) | | (124,690) |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Income taxes paid | - | | - | | - |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| Net cash (outflow)/inflow from | 370 | | (110,261) | | (124,690) |
| operating activities | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------------+-------------+--+-------------+--+------------+
Notes to the unaudited financial statements
1.Basis of prepapration
The financial information included in this report does not constitute statutory
accounts as defined in section 240 of the Companies Act 1985. The consolidated
interim financial statements for the six months ended 31 March 2009 have been
prepared under applicable International Financial Reporting Standards adopted by
the European Union ("IFRS"). The financial information for the period ended 30
September 2008 has been extracted from the statutory accounts for that period.
The auditors' report on the full statutory accounts for the period ended 30
September 2008 was unqualified with an emphasis of matter with regards going
concern. The financial information for the six months ended 31 March 2008 and 31
March 2009 has not been audited.
2.Principal Accounting Policies
The principal accounting policies adopted are consistent with those of the
annual financial statements for the year ended 30 September 2008 and are those
expected to be applied for the year ended 30 September 2009.
3.Earnings per Share
The earnings per ordinary share have been calculated on the ordinary activities
after taxation of GBP38,719 (31 March 2008 - GBP217,177, 30 September 2008 -
GBP804,623) using the weighted average number of ordinary shares in issue during
the period being 66,214,920 (31 March 2008 - 66,214,920, 30 September 2008 -
66,214,920). The weighted average number of diluted ordinary shares in issue
during the period was 66,214,920 (31 March 2008 - 66,214,920, 30 September 2008
- 66,214,920).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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