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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Emondo.Com | LSE:EMO | London | Ordinary Share | GB0004635065 | ORD 5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.00 | - |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:3711P emondo.Com PLC 2 January 2002 For immediate release 2 January 2002 EMONDO.COM PLC ("Emondo", "the Company" or "the Group") Final results for the period ended 31 December 2000 Chief Executive's Statement The period ended 31 December 2000 was extremely difficult for the Company. Following the Introduction of the Company's Ordinary Shares to the Alternative Investment Market in June 2000 the Group pursued the strategy set out in the business plan outlined in the Admission Document and several commissions were successfully completed for Italian and Swiss clients. However sales of the Company's OBS 2000 software products became difficult to achieve due to a change of sentiment towards the e-retailing market and the Company's targeted customer base becoming increasingly nervous of the e-retailing concept. High start-up costs and sales of only #124,827 resulted in a loss for the period of #1,588,967. As a result of market conditions the Company's management realised that the initial business model needed to be modified and a leading firm of management consultants was engaged to identify solutions to take the Company forward. The preferred option was to merge with another IT business and, towards the year-end, the Company and BasicNet S.p.A. commenced negotiations for the acquisition by emondo.com plc of basicfactory s.r.l., the consideration to be paid in shares and accompanied by a fund-raising. Due to the considerable downturn in the valuations of IT companies the fund-raising proved to be extremely difficult and the acquisition was abandoned. Following the failure of the basicfactory s.r.l. transaction an Italian investor group offered to refinance the Company and introduce new business to it. However, after lengthy negotiations and despite repeated assurances as to the availability of funding, they were unable to put the new funds in place and therefore unable to complete the transaction. The Company has closed its operations at Greentech Ranch near Lugano and in Turin, and its Swiss, Italian and Dutch subsidiaries have been placed in liquidation. As can be seen in the accompanying unaudited Interim Report and Accounts the Company incurred a loss of #604,996 in the six months ended 30 June 2001. This was due, in the main, to the costs of the failed negotiations referred to above, relocation and redundancy costs. The second half of the current year will also show a loss. The immediate prospects of the Company are extremely uncertain and the Company will need to cease trading and enter into insolvency proceedings unless funds are forthcoming. As stated in note 1 to the financial statements a third party has indicated its interest in investing funds into the Company subject to certain conditions being met. These conditions include a settlement being agreed with the Company's creditors and the passing of certain resolutions at a General Meeting of the Company. The Board intends to convene such a General Meeting as soon as possible to consider the resolutions. The level of uncertainty regarding the satisfaction of the third party's conditions and hence the level of uncertainty regarding the release of the necessary funds to the Company is such that the auditors have not been able to form an opinion on the going concern basis of preparation of the financial statements. The Board would normally have waited until the uncertainty was resolved in order to avoid the auditors having to report that they could not form an opinion on the financial statements. However, it is a requirement of the London Stock Exchange that these financial statements be issued if the Company is to retain its trading facility on the Alternative Investment Market. Hence, the Board has concluded that it is in the best interests of the Company and the shareholders to issue the financial statements now even though that leads to the auditors reporting that they cannot form an opinion on the financial statements. The Board intends that, subsequent to the General Meeting, once the new funds have been released to the Company and once the other matters referred to in note 1 to the financial statements have been satisfied a formal statement will be issued with regard to the going concern status of the Company and the Group. The Board intends to have, and intends to request any new Board howsoever constituted likewise to have, the auditors review and report on this further statement. Fabio Cavalli Chief Executive 31 December 2001 Consolidated profit and loss account for the period 1 February 2000 to 31 December 2000 Note 2000 # Turnover 124,827 Cost of sales (229,075) -------- Gross loss (104,248) Administrative expenses (1,504,254) -------- Operating loss (1,608,502) Interest receivable and similar income 33,073 Interest payable and similar charges (17,076) -------- Loss on ordinary activities before taxation (1,592,505) Tax on loss on ordinary activities - -------- Loss on ordinary activities after taxation (1,592,505) Minority Interest 3,538 -------- Loss for the period (1,588,967) ======== Earnings per share Basic loss per share 3 15.6 pence Diluted loss per share 3 15.6 pence ======== Consolidated balance sheet at 31 December 2000 2000 # # Fixed assets Intangible assets 27,134 Tangible assets 77,810 Investments - -------- 104,944 Current assets Debtors 213,857 Cash at bank and in hand 470,164 -------- 684,021 Creditors Amounts falling due within one year (419,690) -------- Net current assets 264,331 -------- Total net assets 369,275 ======== Capital and reserves Called up share capital 700,000 Share Premium 1,275,781 Profit and loss account (1,603,026) ------- Shareholders' funds 372,755 Minority interest (3,480) ------- 369,275 ======== Consolidated cash flow statement For the period 1 February 2000 to 31 December 2000 2000 # # Net cash outflow from operating activities (1,100,814) Returns on investments and servicing of finance Interest received 33,073 Interest paid (17,076) -------- Net cash inflow from returns on investments 15,997 and servicing of finance Capital expenditure and financial investment Payments to acquire intangible fixed assets (31,136) Payments to acquire tangible fixed assets (67,438) -------- Net cash outflow from capital expenditure and financial investment (98,574) Acquisition of subsidiary undertakings (10,926) Cash acquired 57,068 -------- Net cash flow from acquisitions and disposals 46,142 -------- Net cash outflow before use of liquid resource and (1,137,249) financing Management of liquid resources Cash placed on short term deposit (448,000) Financing Issue of ordinary share capital 1,607,411 -------- Increase in cash 22,162 ======== 1 Basis of preparation of financial statements As reported in the Chief Executive's Statement, during the current year the Board recognised the need for the Company and the Group to reduce outgoings and raise additional funds. A number of actions have been taken and a decision has been made to close the activities of the Group that were in place on 31 December 2000. As such, the Company's current outgoings have been reduced to a minimal level to allow further funding options to be investigated. Despite these actions the Company still needs to secure additional funds to continue as a going concern. The Board has received an approach from a third party who has indicated an interest in the possibility of using the Company as a holding company of another technology related business. The third party has access to funds of approximately f1 million which it would be willing to invest in the company subject to certain conditions including: * the waiving by existing creditors of outstanding liabilities over and above a total of approximately #62,500; * the closure or disposal of the Company's subsidiary undertakings; * the passing of resolutions at a General Meeting in relation to increases in the authorised share capital of the Company, approval for the issue of shares in relation to the investment and in relation to the purchase of the other business; and * changes to the membership of the Board of Directors of the Company. The Board, having explored other opportunities for over seven months, considers that the proposals that it will put forward to creditors and shareholders represent the only remaining opportunity for the Company to continue as a going concern and potentially to retain its trading facility on the Alternative Investment Market. Each of the Directors has agreed that, if required, they will resign as part of the changes to the Board proposed by the third party. At the date of approval of these financial statements, the Board has yet to secure the agreement of existing creditors to the proposed settlement of outstanding debts and has yet to call the required General Meeting. As such, the funds that the third party may make available to the Company have not been released for its use. Nevertheless, the Board believes that adequate funds will become available and accordingly considers it appropriate to draw up the financial statements on a going concern basis. 2 Publication of non-statutory accounts The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The consolidated balance sheet at 31 December 2000 and the consolidated profit and loss account, consolidated cash flow statement and associated notes for the period then ended have been extracted from the Group's financial statements. Those financial statements have not yet been delivered to the Registrar of Companies. The Group requires additional funds in order to continue in business as a going concern. In respect of the Directors' plans to secure such funds, evidence available to the auditors was insufficient to determine whether there is a reasonable expectation that the Group will be able to continue as a going concern. The financial statements have been drawn up on a going concern basis. The auditors were unable to determine the changes that would be required to the financial statements were the Group not to be considered a going concern. Any adjustments would have a consequential effect on the assets and liabilities of the Group and on the Group loss for the period. Because of the possible effect of limitation in evidence available to the auditors, the auditors were unable to form an opinion as to whether the financial statements give a true and fair view of the state of the Group's affairs as at 31 December 2000 or of the Group's loss for the period then ended. In all other respects it was the opinion of the auditors that the financial statements had been properly prepared in accordance with the Companies Act 1985. 3 Loss per share The loss per share is 15.6 pence and is based on a loss of #1,588,967 and a weighted average number of shares in issue of 10,193,098. 4 Dividends The Directors are not proposing the payment of a dividend in respect of the period ended 31 December 2000. 5 Copies of the report and accounts are available from the Company's Registered Office, New Garden House, 78 Hatton Garden, London EC1N 8JA and John East & Partners Limited, Crystal Gate, 28-30 Worship Street, London, EC2A 2AH and will be posted to shareholders today. For Further Information please contact:- Emondo.com plc Tel: 0041 79 688 08 66 Fabio Cavalli John East & Partners Ltd Tel: 020 7628 2200 Jeffrey Coburn
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