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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Gemstone | LSE:GOA | London | Ordinary Share | GB00B05MCJ34 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.875 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:2656E
GOAL PLC
26 November 2002
GOAL PLC
Interim results
CHAIRMAN'S STATEMENT
During the first half of 2002/3 turnover was #773,000 (2001 - #188,000)
contributing to a loss before taxation of #627,000 (2001 - #1,283,000). A
research and development tax credit of #168,000 brings the loss after tax to
#459,000. This represented a loss per share of 1.9p (2001 - 5.2p). At the end
of the period cash reserves stood at #2.9m (2001 - #4.35m).
Sales revenues contracted at 30 September 2002 but attributable to future
periods stand at #292,000 for the second half of 2002/3 and #385,000 for future
years.
Market Overview
The market for education support products and services in schools is
increasingly influenced by a number of seasonal factors. Sales opportunities in
the first half of the year are limited from the examinations period in June
through the Summer holiday period and during September as schools gear up for
the new academic year.
Despite increased government investment in the IT infrastructure in schools and
in e-learning systems, changes in the budgeting arrangements for schools this
year have led to uncertainties that have translated into a temporary reduction
in spending across the sector. Further uncertainties surround the timing of the
introduction of the Department for Education and Skills (DfES) Curriculum Online
initiative and the wider impact of the proposed BBC digital curriculum service.
However, DfES has now announced that #30m of the #50m e-learning credits budget
for this year will be released ahead of the formal launch of the Curriculum
Online portal. Schools will only be able to spend their e-learning credits
allocation on products and services provided by organisations that are
registered with DfES as approved content providers under Curriculum Online. We
received confirmation of our registration at the end of October.
While these factors continue to represent challenges for GOAL's approach to
marketing and selling they disguise real opportunities for innovative products
and services which contribute to schools achieving their development priorities.
In particular, uncertainties are around traditional approaches to testing and
examinations, and the continued emphasis of government and education authorities
on performance management provide a positive backdrop for the promotion of the
GOAL assessment system and, in particular, our School Continuous Improvement
(SCI) Programme.
SCI Programme
Over the past six months we have continued to refine our item bank of test
questions and our technology platform while building our support capacity. The
planned development of our Professional Register of independent consultants -
experienced educationalists we can call on to deliver training and undertake
support and demonstration visits to schools - has moved on apace. By mid
November 76 individuals have been recruited and trained. This national network
greatly increases our capability to respond to interest in the SCI programme and
deliver high quality customer support services in a flexible way without the
costs associated with running a large team of full time staff.
The Company has continued to respond to customer feedback and changing market
conditions. We have now developed a fully integrated marketing, sales and
customer support function built around a strengthened team of administrative
staff and a field sales force who co-ordinate the involvement of the part-time
consultant network.
Our experience continues to confirm the long lead times for sales into schools,
groups of schools, LEAs and EAZs and education authorities. This is accentuated
by the fact that the SCI programme, whilst in line with the thrust of government
policy, is a new approach and schools have to go up a learning curve to
implement it. It also directly impacts on the management and education
philosophy of a school. Buying decisions are often influenced by professional
endorsement and with this in mind we are continuing to develop our close working
relationships with the National Association of Head Teachers, Secondary Heads
Association and the Technology Colleges Trust.
In addition to our continued regular attendance at education shows and events,
and tactical advertising in education journals, from mid-October a direct
mailing campaign commenced aimed at the Head Teachers of the approximately
25,000 primary and secondary schools across the United Kingdom.
Numbers of customer schools for the SCI programme have risen by 348 to 485 since
31 March, in addition, a further 315 schools continue to use the old GOAL 'tests
only' system.
With steady growth in the SCI programme customer base we plan to test demand for
new services, to provide schools with practice National Curriculum tests online
and a 'taster' service focused on ICT tests. These developments reflect the
pattern of test usage through the SCI programme and would provide a
stepping-stone for schools which feel unable to commit to the full SCI programme
at this stage.
Powered by GOAL
We continue to make strong progress in developing the market for our services
through research and development projects with public and private sector
partners.
The major development during the period was the Company's success in securing
its first government contract when the Qualifications and Curriculum Authority
('QCA') awarded GOAL a project to reconfigure Key Skills and Adult Literacy and
Numeracy tests. This project had a value of just under #300,000. The work has
already been successfully completed and the contract has been extended to cover
the development of a number of Key Skills examination papers for Application of
Number and Information Technology. Discussions are also underway with QCA in
relation to further Key Skills test development and maintenance work.
Linked to this, pilot work is well advanced with LCCIEB on the development of an
online delivery system for Key Skills tests. This has led to discussions with
three other awarding bodies about the possibility of their using the GOAL
system.
Another important development project is underway with LCCIEB to deliver its
English Language Skills Assessment (ELSA) service online. Trialling and
piloting will begin shortly.
Work with the Connexions service to develop a decision making readiness audit is
also now at an advanced stage. This is an important piece of work designed to
enable Connexions service personal advisers to have reliable feedback on the
ability of thirteen year olds, sixteen year olds and adults to make informed
decisions about learning and careers opportunities. Discussions are underway
with a view to establishing a feasibility project to test how the GOAL platform
could be customised to meet the particular requirements of the Connexions
service.
Project plans to apply GOAL test development and technology skills are also at
an advanced stage with a major publisher.
Acquisition of the London Chamber of Commerce and Industry Examinations Board
('LCCIEB')
GOAL has also announced today that it has entered into a conditional agreement
to acquire the business and certain assets and liabilities of LCCIEB for a
consideration to be satisfied by the issue of 24,014,851 new ordinary shares to
the London Chamber of Commerce and Industry Commercial Education Trust (or as it
directs) of which LCCIEB is a trading division. The new ordinary shares will be
issued credited as fully paid and represent 49.5 per cent. of the enlarged share
capital. The closing share price on 20 November 2002, being the day before the
shares were suspended from trading was 9.25p, equating to a value for the new
Ordinary Shares of #2.22 million at that date.
Further details of the proposed acquisition are contained in a circular that has
been posted to shareholders today.
Prospects
The Summer period has provided an opportunity to build on the experience gained
since the introduction of the SCI programme in November 2001 and strengthen our
sales and customer support capability.
While the build up of SCI programme customers continues to be at a slower rate
than expected we are continuing to develop a loyal customer base. At the same
time, GOAL's credibility continues to grow as the Company becomes established as
the leading UK developer of academic tests for delivery online. A great
strength is that our assessment, design and technical development functions are
integrated into a single team. This important feature has been recognised by
QCA, examination boards and a number of public and private sector organisations.
Although the recent DfEs announcement that all schools will have Broadband
access by 2006 is encouraging, forecasting sales of the SCI programme is
difficult, especially at a time when the education market generally is suffering
from uncertainties surrounding school budgets and the timing and level of
investment in e-learning systems. However, the developing market profile of the
SCI programme is providing opportunities for the Company to tender for other
development work in the wider education sector.
Having now established strong foundations in the education market, the Directors
believe that the acquisition of LCCIEB operation provides a broader base for
GOAL to cross sell its services and to apply its technology and expertise to
improve operational efficiency. The potential to establish strategic business
partnerships will also be enhanced. Whilst it is expected that there will be
some short term increase in costs as the integration of the two businesses is
effected, there will be opportunities for longer term savings.
The Directors believe that LCCIEB's financial performance has historically been
constrained by reason of the charitable status of the London Chamber of Commerce
and Industry Commercial Education Trust . The removal of these constraints
following the acquisition and the impact of GOAL's systems should enable new
services and markets to be developed, offering the prospect of improved future
performance in the acquired business.
GROUP PROFIT AND LOSS ACCOUNT
For the period ended 30 September 2002
Period Period Year
ended ended ended
30 Sept 30 Sept 31 March
2002 2001 2002
(6 months) (6 months)
#'000 #'000 #'000
Turnover-continuing operations 773 188 589
Cost of sales (595) (500) (958)
------- ------- -------
Gross profit/(loss) 178 (312) (369)
Administrative costs (862) (1,097) (1,902)
------- --------- ---------
Operating loss - continuing operations (684) (1,409) (2,271)
Net interest receivable 57 126 199
------- --------- ---------
Loss on ordinary activities before taxation (627) (1,283) (2,072)
Tax on loss on ordinary activities 168 - -
------- --------- ---------
Loss on ordinary activities after taxation (459) (1,283) (2,072)
==== ===== =====
Loss per share
Basic and diluted (1.9)p (5.2)p (8.5)p
------- ------- -------
Other than the figures shown above, there were no recognised gains and losses
during the period.
GROUP BALANCE SHEET
As at 30 September 2002
30 Sept 30 Sept 31 March
2002 2001 2002
#'000 #'000 #'000
Tangible fixed assets 154 260 194
Current assets
Debtors 564 291 369
Cash at bank and in hand 2,905 4,351 3,403
------- ------- -------
3,469 4,642 3,772
Creditors: Amounts falling due within one year (820) (842) (704)
------- ------- -------
Net current assets 2,649 3,800 3,068
------- ------- -------
Total assets less current liabilities 2,803 4,060 3,262
Creditors: Amounts falling due after more than one year (11) (20) (11)
------- ------- -------
Net assets 2,792 4,040 3,251
==== ==== ====
Capital and reserves
Called up share capital 245 245 245
Share premium account 9,349 9,349 9,349
Profit and loss account (6,802) (5,554) (6,343)
--------- --------- ---------
Equity shareholders' funds 2,792 4,040 3,251
==== ==== ====
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
For the period ended 30 September 2002
30 Sept 30 Sept 31 March
2002 2001 2002
#'000 #'000 #'000
Group
Opening shareholders' funds 3,251 5,323 5,323
Total recognised losses relating to the period/year (459) (1,283) (2,072)
Net proceeds of share issue - - -
------- --------- ---------
Closing shareholders' funds 2,792 4,040 3,251
==== ==== ====
GROUP CASH FLOW STATEMENT
For the period ended 30 September 2002
Period Period Year
ended ended ended
30 Sept 30 Sept 31 March
2002 2001 2002
(6 months) (6 months)
#'000 #'000 #'000
Net cash outflow from operating activities (691) (1,525) (2,539)
(see note below)
------- --------- ---------
Returns on investment and servicing of finance 57 126 199
------- --------- ---------
Taxation received 168 - -
------- --------- ---------
Capital expenditure
Payments for tangible fixed assets (32) (34) (63)
Receipts from sale of tangible fixed assets - 39 61
------- --------- ---------
Decrease in cash (498) (1,394) (2,342)
==== ===== =====
Reconciliation of Operating Loss to Net Cash Outflow from Operating Activities
Period Period Year
ended ended ended
30 Sept 30 Sept 31 March
2002 2001 2002
(6 months) (6 months)
#'000 #'000 #'000
Operating loss (684) (1,409) (2,271)
Depreciation of tangible fixed assets 72 77 151
Profit on sale of tangible fixed assets - (4) (5)
Working capital movements
Debtors (195) (65) (143)
Creditors 116 (124) (271)
------- --------- ---------
Net cash outflow from operating activities (691) (1,525) (2,539)
==== ===== =====
NOTES TO THE INTERIM RESULTS
For the period ended 30 September 2002
1. Basis of Preparation
This interim report was approved by the Board on 26 November 2002. It has been
prepared using accounting policies that are consistent with those adopted in the
statutory accounts for the year to 31 March 2002.
The figures for the year ended 31 March 2002 were derived from the statutory
accounts for the year. The statutory accounts for the year to 31 March 2002
have been delivered to the Registrar of Companies and received an audit report
which was unqualified and did not contain statements under s237(2) or (3) of the
Companies Act 1985.
2. Taxation
During the period the Group has received a tax credit of #168,000 (2001: #nil)
in respect of research and development costs incurred in prior periods.
3. Loss Per Share
Period Period Year
ended ended ended
30 Sept 30 Sept 31 March
2002 2001 2002
(6 months) (6 months) (12 months)
#'000 #'000 #'000
These have been calculated on the loss of: (459) (1,283) (2,072)
The weighted average number of shares used was: 24.5m 24.5m 24.5m
Basic (1.9)p (5.2)p (8.5)p
Diluted (1.9)p (5.2)p (8.5)p
The share options in issue have not had a dilutive effect as a result of the
loss for the period.
4. Reconciliation of Net Cash Flow to Movement in Net Funds
Period Period Year
ended ended ended
30 Sept 30 Sept 31 March
2002 2001 2002
(6 months) (6 months)
#'000 #'000 #'000
Balance brought forward 3,403 5,745 5,745
Decrease in cash in the period (498) (1,394) (2,342)
------- --------- ---------
Balance carried forward 2,905 4,351 3,403
==== ==== =====
INDEPENDENT REVIEW REPORT TO GOAL PLC
Introduction
We have been instructed by the company to review the financial information set
out above. We have also read the other information contained in the interim
report and considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
Directors' Responsibilities
The interim report (including the financial information contained therein) is
the responsibility of, and has been approved by, the Directors.
Review Work Performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of Group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied, unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.
Review Conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2002.
RSM Robson Rhodes
Chartered Accountants
Birmingham
26 November 2002
Availability of the Interim Statement
The above Interim Statement is incorporated in the Admission Document in
relation to the acquisition of LCCIEB that is being sent to all shareholders.
Copies of the Admission Document will be available, free of charge, at the
offices of Pinsent Curtis Biddle, Dashwood House, 69 Old Broad Street, London,
EC2M 1NR or from the Company's registered office.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FEDSWMSESEEF
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