Final Results 31 Dec 2000

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: [phone]
Fabio Cavalli



John East & Partners Ltd                      Tel:  [phone]
Jeffrey Coburn