ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for discussion Register to chat with like-minded investors on our interactive forums.

MYH Myhome

5.00
0.00 (0.00%)
Last Updated: 01:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Myhome LSE:MYH London Ordinary Share GB0031249856 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% 5.00 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Interim Results

30/06/2008 7:02am

UK Regulatory


    RNS Number : 8030X
  Myhome International PLC
  30 June 2008
   
    Embargoed for release at 7.00 a.m.
    30 June 2008

    Myhome International plc
    ("Myhome" or the "Group")
    Interim Results For The Six Months Ended 31st March 2008

    Myhome International plc, the AIM listed franchise company, announces its unaudited interim results for the six months ended 31st March
2008.

    Highlights
    *     Turnover increased by 151.4 per cent to £4.63m from £1.84m for the comparable period.
    *     Adjusted operating profit of £479,000 compared to £742,000 for the same period last year.
    *     The Group has successfully integrated ChipsAway, which was acquired for £16.0m (before costs) in November 2007, into the Group
structure.
    *     The Directors have completed a restructuring programme which will result in future annual cost savings in excess of £500,000.
    *     The Group has been divided into two divisions to focus on accelerating organic growth
    *     Appointed new Non Executive Chairman, Jon Pither and Finance Director Neal Gossage, to strengthen the management team to take
account of the Group doubling in size during the period.  

    Current trading

    As previously reported the Group sold 77 franchises in the first half of the financial year, a number materially below management
expectations. This, coupled with the consumer slowdown and tightening of credit availability for franchisees has had a significant impact on
the business. Management has also been distracted by the reorganisation of the business into two divisions. 

    In light of these factors, management believe that turnover and profits will be materially below current market expectations for the
year ending 30 September 2008.

    Restructuring

    As a result of the increase in the size of the business, the Directors decided to restructure the Group during the period to remove cost
duplication and to streamline each of the businesses so that their focus is entirely on generating organic growth by further exploiting the
high profile brand names Myhome owns.  

    The restructuring has resulted in a number of redundancies, non-core offices being closed and write-offs being made. These changes will
provide the Group with significant future cost savings and a more focussed business which provides a strong platform for growth going
forward. The net cost to the Group of this restructuring in the period amounted to £3.3m.

    Russell O'Connell, Chief Executive of Myhome, commented: 
    "I am satisfied with the progress that the Group has made during this challenging period. We have successfully integrated ChipsAway into
the Group structure and have undertaken a major restructuring programme. Whilst this has taken up a considerable amount of management time,
it needed to be carried out to generate future benefits for the business.

    Although the Board is disappointed that adjusted operating profit has fallen against the comparable period, it is confident that the
restructuring will enable management to focus on maximising organic growth across the business. The second half of the year has started well
with over 50 new franchisees recruited between April and June 2008 compared with 77 in the first six months of the year. Whilst I am
disappointed that the business will not meet expectation for the current financial year, I am confident in the ability of the management
team to deliver profitable growth over the medium term."

    For further information, please contact:
    Myhome International plc                                         01372 471573
Russell O'Connell, Chief Executive
Neal Gossage, Finance Director
Myhome International plc
    Noble & Company Limited                                      020 7763 2200
Nick Naylor/Alastair Maclachlan 
    Bishopsgate Communications                                   020 7562 3350
Nick Rome


      Chairman's Statement


 Financial Overview              Half year ended     Half year ended     Change %
                                    31 March 2008       31 March 2007
                                        Unaudited           Unaudited            
 Revenue (£m)                                4.63                1.84       151.4
 Operating Profit before                     0.48                0.74      (35.1)
 reorganisation costs(£m)
 Operating Profit/(Loss)(£m)               (2.81)                0.74           -
 Adjusted earnings per share                 0.79                1.83      (56.8)
 Earnings per share (p)                    (6.33)                1.48           -


    Overview of Results
    The first half of 2007/8 has seen Myhome more than double in size following the acquisition of the ChipsAway Group. As a result of this
acquisition made in November 2007, Myhome now has ten businesses offering a range of home service and automotive related franchises.  

    Group turnover has increased by 151.4% with unaudited results for the six month period to 31 March 2008 showing a turnover of £4.63m
(2007: £1.84m). Adjusted operating profit for the period was £0.48m (2007: £0.74m). Adjusted earnings per share were 0.79p (2007: 1.83p).

    The first half also saw a major restructuring of the Group. The business has been divided into two distinct divisions based in Esher and
Kidderminster. The Esher division, which has its own managing director, consists of the home services business whereas the Kidderminster
division, also with its own managing director, houses the automotive services including ChipsAway which was acquired in the period.  

    This reorganisation has resulted in a number of redundancies, office closures and write offs which in turn bring significant cost
reductions and a leaner organisation for the future. In addition, a detailed review of the business was carried out in the period with help
from external advisors to ensure that assets resulting from the reorganisation are recoverable and represent fair value to the Group. The
net cost of this restructuring in the period amounted to £3.3m.

    For the half year ended 31 March 2008, the Group had an operating cash inflow of £0.3m (2007: outflow of £0.1m).

    After allowing for the reorganisation and the use of the Group's own cash resources to fund the costs of the acquisition, the net cash
outflow for the period was £2.4m.

    Acquisition
    On 6 November 2007, Myhome completed the acquisition of the ChipsAway Group for initial consideration (before costs) of £16.0m. The
acquisition was financed by the issue of 12.9m new shares together with a loan of £8.0m. This acquisition, the largest made by Myhome to
date, more than doubled the size of the Group and made Myhome the leading 'smart repair' provider in the UK. Prior to its acquisition by
Myhome, the ChipsAway Group had acquired the rights to the intellectual property of the system and paint formula for the world except North
America. This provides an opportunity to grant master franchises in over 150 countries and I am pleased to report that sales have already
been made in Russia and Croatia.

    Rebranding
    The domestic services businesses have now been rebranded under the Myhome umbrella to provide a clear identity for customers. The Group
is now clearly focussed on the seven key domestic services: residential cleaning, oven cleaning, carpet and fabric cleaning, lawn cutting
and care, plumbing, electrical and window cleaning. The former brands, NicenStripy, Ovenclean and Stainbusters will no longer be used.

    The PlumbXpress brand acquired in 2007 will be retained, as this business already has a successful model and is performing well. The
recently launched ElecXpress brand has also been well received by potential franchisees.

    The ChipsAway and car valeting brands (Autosheen and PCC) will continue to provide automotive services operating on a 'man in a van'
basis.

    The new website, myhome.com, brings all the brands together and provides for significant cross-selling opportunities. The call centre at
the Group head office in Esher is receiving record numbers of enquiries from customers as a result of the awareness created by the website.
Further work on the website will be carried out in the second half of the year to generate even more traffic.

    Strategy
    The Group is now clearly focussed on organic growth. The acquisitions made in 2007 provide a sound foundation for growth and the
emphasis on marketing of the services will continue to drive opportunities for franchisees. As franchisees' businesses continue to grow,
Myhome revenues will also grow as, for the majority of the management franchises, royalty payments are based on a percentage of franchisees'
sales. The Group now has the operational gearing to deliver strong growth from both the original businesses and from those acquired last
year.

    Board
    I am delighted to have joined the Board at a very exciting and challenging time for the Group. In the period, Neal Gossage joined the
board as Finance Director and Russell O'Connell became Chief Executive following my appointment as Chairman.  

    I would like to express my thanks to Simon McNeill-Ritchie and Jonathan Jenkins both of whom resigned from the Board in the period.

    I would also like to thank all the staff and franchisees who have contributed to the development of the Group at a very challenging
time.

    Financing
    As part of the acquisition of ChipsAway Group, the company secured a new £8 million loan facility from Lloyds TSB and a further £8
million of equity through the issue of new shares. As at 31 March 2008 the Group had net debt of £8.6 million.

    Sale of subsidiary
    In the period Myhome disposed of Increase:Decrease Limited, a subsidiary of Ferrum Group Limited for a cash consideration of £1. This
resulted in a loss on disposal of £751,000. At the time of disposal Increase:Decrease Limited was not trading. A decision was taken by
management to dispose of this business because the business was carrying out similar activities to another subsidiary of the Ferrum Group.

    Outlook
    Trading in the second half of the year has started well with over 50 new franchisees being recruited between April and June 2008
compared with 77 in the first six months of the year. However, the Board is aware of the effects of a weaker economy on Myhome's businesses.
The continued employment of the traditional 'cash rich, time poor' Myhome customers is becoming less certain and this inevitably creates
pressure on domestic budgets, which will affect the results for the second half of the financial year.

    The slowing economy coupled with the 'credit crunch' has affected the ability of potential franchisees to raise loans to finance their
businesses and only potential franchisees with very good credit histories are finding it straightforward to raise finance.
    Despite these pressures, franchisee recruitment remains strong and the prospects for organic growth in the future based on the
acquisition of new customers for franchisees and increasing royalty income, remain encouraging.

    The Group now has a strong portfolio of businesses and the Board is confident that the investments made last year provide a strong base
for profitable growth over the medium term.  

    Jon Pither
    Chairman, Myhome International plc
    30 June 2008

      Consolidated Income Statement 
    For the period ended 31 March 2008

                                          31 March 2008     31 March 2007     30 September 2007
                                             (6 months)        (6 months)           (12 months)
                                 Note              £000              £000                  £000
                                                                                               
 Revenue                            2             4,633             1,843                 5,073
 Cost of sales                                  (1,798)             (276)                 (458)
 Gross Profit                                     2,835             1,567                 4,615
                                                                                               
 Administrative expenses                        (2,356)             (825)               (3,160)
 Adjusted operating profit                          479               742                 1,455
 before reorganisation costs
                                                                                               
 Reorganisation costs                           (3,285)                 -                     -
 Operating profit                               (2,806)               742                 1,455
                                                                                               
 Finance income                                       6                43                   123
 Finance costs                                    (306)              (43)                 (120)
 Net finance costs                                (300)                 -                     3
                                                                                               
 Loss on sale of subsidiary                       (751)                 -                     -
                                                                                               
 Profit/(loss) on ordinary                      (3,857)               742                 1,458
 activities before taxation
                                                                                               
 Tax on profit on ordinary                            -             (141)                  (70)
 activities
                                                                                               
 Profit/(loss) for the period                   (3,857)               601                 1,388
                                                                                               
 Attributable to                                                                               
 Equity holders of the parent       5           (3,857)               601                 1,388
                                                                                               
 Adjusted earnings per share                                                                   
 expressed in pence per share:
 Basic                              3              0.79              1.83                  3.26
 Diluted                                           0.65              1.36                  2.56
                                                                                               
 Earnings per share expressed                                                                  
 in pence per share:
 Basic                              3            (6.33)              1.48                  3.11
 Diluted                                         (5.24)              1.10                  2.44

    The notes form part of these financial statements.
      Consolidated Statement of Recognised Income and Expense 
    For the period ended 31 March 2008

                                           31 March         31 March        30 September 
                                                2008             2007                2007
                                          (6 months)       (6 months)         (12 months)
                                 Note           £000             £000                £000
                                                                                         
 Profit/(loss) for the              5        (3,857)              601               1,388
 financial year
                                                                                         
 Total recognised income and                 (3,857)              601               1,388
 expense for the period

      Consolidated Balance Sheet
    At 31 March 2008

                                           31 March 2008     31 March 2007     30 September 2007
                                 Note               £000              £000                  £000
                                                                                                
 Assets                                                                                         
 Non-current assets                                                                             
 Intangible assets - brand                        34,091             4,378                13,182
 Intangible assets -                               1,268               417                   669
 development costs
 Property, plant and equipment                     2,363             1,942                 2,118
 Investments                                         100               100                   100
                                                  37,822             6,837                16,069
                                                                                                
 Current Assets                                                                                 
 Inventories                                         193                26                   127
 Trade and other receivables                       1,811             2,426                 3,053
 Cash and cash equivalents                           565             3,268                 2,948
                                                   2,569             5,720                 6,128
                                                                                                
 Liabilities                                                                                    
 Current liabilities                                                                            
 Trade and other payables                          5,822               925                 2,105
 Financial liabilities -                                                                        
 borrowings
   Interest bearing loans and          8                  4                 1
 borrowings                            9                  2                 4
                                                                            0
 Tax payable                                         422               160                   170
                                                   6,333             1,127                 2,415
                                                                                                
 Net current assets                              (3,764)             4,593                 3,713
 Non-current liabilities                                                                        
 Trade and other payables                          6,825               375                 4,625
 Financial liabilities -                                                                        
 borrowings
   Interest bearing loans and          9                  1                 1
 borrowings                            ,                  ,                 ,
                                       1                  6                 3
                                       7                  8                 7
                                       3                  8                 7
                                                  15,998             2,063                 6,002
                                                                                                
 Net Assets                                       18,060             9,367                13,780
                                                                                                
 Shareholders' equity                                                                           
 Called up share capital            5              3,177             2,312                 2,534
 Share premium                      5             17,392             6,503                 9,898
 Other reserves                     5                  8                 -                     8
 Retained earnings                  5            (2,517)               552                 1,340
 Total shareholders' equity                       18,060             9,367                13,780
                                                                                                
 Total equity                                     18,060             9,367                13,780

      Consolidated Cash Flow Statement
    For the period ended 31 March 2008

                                           31 March       31 March      30 September 
                                                2008           2007              2007
                                          (6 months)     (6 months)       (12 months)
                                 Note           £000           £000              £000
                                                                                     
                                                                                     
 Profit on ordinary activities               (3,857)            742             1,458
 before taxation
 Depreciation of tangible fixed                  130             35               152
 assets
 Amortisation of intangible                       61              -                 -
 fixed assets
 Loss on disposal of fixed                        81              -                 2
 assets
 Loss on disposal of subsidiary                  751              -                 -
 Net finance costs                               300           (43)               120
 Share based payments                              -              -                 7
 (Increase) in inventories                      (66)           (14)             (115)
 Decrease/(Increase) in trade                  1,242          (565)           (1,449)
 and other receivables
 Increase/(Decrease) in trade                  1,797          (254)           (2,569)
 and other payables
 Cash flows from operating                       439           (99)           (2,394)
 activities
 Net interest paid                             (144)             43             (120)
 Tax received/(paid)                               -             16               159
 Net cash generated from                         295           (40)           (2,355)
 operating activities
                                                                                     
 Cash flows from investing                                                           
 activities
 Acquisitions of businesses:                                                         
 - Consideration                    4       (16,902)              -                 -
 - Cash acquired                                 360              -                 -
 Deferred acquisition payment                      -          (375)                 -
 Purchase of Intangible Assets                 (828)          (170)           (1,491)
 Purchase of Tangible Assets                    (34)        (1,556)           (1,918)
 Net cash used in investing                 (17,404)        (2,101)           (3,409)
 activities
                                                                                     
 Cash flows from financing                                                           
 activities
 New loans in the period                       6,596          1,062               822
 Capital repayments in the                         -           (77)              (51)
 period
 Amount introduced by directors                    -              -                 1
 Share issue                                   8,137          4,156             7,132
 AIM listing fees                                  -          (540)                 -
 Payment of Finance Lease                        (7)              -                 -
 Liabilities
 Net cash from financing                      14,726          4,601             7,904
 activities
                                                                                     
 Increase/(Decrease) in cash                 (2,383)          2,460             2,140
 and cash equivalents
 Cash and cash equivalents at                  2,948            808               808
 beginning of period
 Cash and cash equivalents at                    565          3,268             2,948
 end of period

      Notes to the interim report
    31 March 2008

    *     Basis of preparation
    This interim financial information has been prepared in accordance with International Accounting Standard (IAS 34) 'Interim Financial
Reporting'. The accounting policies applied in the preparation of this financial information are consistent with those adopted in the
statutory accounts for the year ended 30 September 2007.
    The financial information shown is unaudited and does not constitute statutory accounts within the meaning of Section 240 of the
Companies Act 1985.
    The figures for the period ended 30 September 2007 were derived from the statutory accounts for that period. The statutory accounts for
the period ended 30 September 2007 have been delivered to the Registrar of Companies and received an audit report which was unqualified and
did not contain statements under Section 237(2) or (3) of the Companies Act 1985.
    This interim report was approved by the Board on 30 June 2008.

    *     Segmental analysis
    There is no activity other than the main business activity - the sale and management of franchises in the home services and automotive
sectors. The group recruits franchisees to operate under the Myhome and ChipsAway brands.
    As there is only one main business activity, there is no segmental disclosure in this interim statement.

    *     Earnings per share
                                        31 March       31 March      30 September 
                                             2008           2007              2007
                                       (6 months)     (6 months)       (12 months)
                                                                                  
 Number of shares (million)                                                       
 Weighted average number of                60.946         40.497            44.623
 shares used in basic eps
 Effect of dilutive securities             12.696         13.935            12.196
 - share options
                                                                                  
 Weighted average number of         7              5              5
 shares used in diluted eps         3              4              6
                                    .              .              .
                                    6              4              8
                                    4              3              1
                                    2              2              9
                                                                                  
 Earnings (£000)                                                                  
 Profit for the period              (              6              1
 attributable to ordinary           3              0              ,
 shareholders                       ,              1              3
                                    8                             8
                                    5                             8
                                    7
                                    )
                                                                                  
 Earnings                                 (3,857)            601             1,388
                                                                                  
 Earnings per share (pence)                                                       
 Basic                                     (6.33)           1.48              3.11
 Diluted                                   (5.24)           1.10              2.44

    *     Acquisition of subsidiary
    On 6 November 2007, the company acquired the entire share capital of Edwin Investments Limited. The initial consideration for the
acquisition (including costs) was £16,902,000.

 This was financed from:                                        £000
 Own cash resources                                              919
 Issue of new shares at 72p per share                          6,738
 Proceeds from the issue of Share Warrants                     1,400
 New bank loans                                                6,647
 Issue of Vendor loan notes                                    1,198
                                                              16,902

    The book and provisional fair values of the assets and liabilities acquired were as follows:
                                                    £000 
 Property, plant and equipment                        291
 Inventories                                          254
 Trade and other receivables                          297
 Cash and cash equivalents                            360
 Trade and other payables                           (952)
 Tax payable                                        (259)
 Bank loans                                       (4,330)
                                                  (4,339)
 Intangible assets acquired                         4,009
 Goodwill                                          21,232
                                                   20,902
                                                         
 Satisfied by:                                           
 Cash consideration                                   919
 Equity consideration                               8,138
 Loans                                              7,845
 Deferred consideration                             4,000
                                                   20,902

    Goodwill recognised above includes items that cannot individually be separated and reliably measured due to their nature. These include
the expertise of staff and synergy benefits.

    *     Statement of changes in shareholders' equity

                          Share      Share       Other    Retained       Total shareholders
                        Capital    Premium    Reserves    Earnings                   equity
                           £000       £000        £000        £000                     £000
                                                                                           
 At 1 October 2007        2,534      9,898           8       1,340                   13,780
 Profit for the period                                     (3,857)                  (3,857)
 Share based payments                                                                     0
 New shares issued          643      7,494                                            8,137
 At 31 March 2008         3,177     17,392           8     (2,517)                   18,060
                                                                                           
 At 1 October 2006        1,731      3,468           -        (49)                    5,150
 Profit for the period                                         601                      601
 Share based payments                                                                     0
 New shares issued          581      3,035                                            3,616
 At 31 March 2007         2,312      6,503           0         552                    9,367


This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
IR FKLFLVQBXBBB

1 Year Myhome Chart

1 Year Myhome Chart

1 Month Myhome Chart

1 Month Myhome Chart