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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Rome Resources Plc | LSE:RMR | London | Ordinary Share | GB00BYY0JQ23 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -9.20 | -96.79% | 0.305 | 0.29 | 0.32 | 0.35 | 0.305 | 0.35 | 551,396,122 | 15:57:08 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:3167L
RMR PLC
9 October 2001
RMR plc
Interim Results for the six months ended 31 August 2001
RMR plc ( "RMR" or the "Company"), the specialist software provider for
e-learning, knowledge management and online events, announces its interim
results for the six months to 31 August 2001
Key points:
* Turnover #399,000 ( 2000:#1.1million)
* Loss before tax #2.8 million (2000: #2.3 million)
* Cash at 31 August #3.3 million
* Business re-positioned to be provider of technology and content
solutions to organisations with complex information needs
* Development of Elevate, e-learning software product
* Acquisition of Learning Angles Ltd. (see separate announcement)
Commenting on the results, Michael Mills, RMR Chairman said: "After a very
disappointing trading performance, we have reduced the cost base, changed the
management team and focused on increasing the revenue stream. We now have the
opportunity to build a successful business in the e-learning market place with
Elevate and our acquisition of Learning Angles. It is our intention to acquire
similar businesses that can benefit from RMR's established product range,
technical expertise, infrastructure and stock market listing".
For further information:
RMR 01865 733733
Michael Mills, Chairman
Derek Cormack, Finance Director
Weber Shandwick 0207 329 0096
John Wade
Chairman's Statement
Overview
The six months to 31 August 2001 has been characterised by mixed success for
RMR with continued progress being made in the development of the product
offering but a very disappointing trading performance.
During this period we added to our existing platforms of online conferences
and knowledge management software with the completion of Version 1 of Elevate,
an e-learning software product. However, as Elevate has only just been
completed, the first half-year revenues have relied upon sales of conference
and knowledge management software and web development work. Although a number
of conference sites and knowledge management portals were produced and
corporate relationships developed these have not been of sufficient quantity
to generate a material revenue stream. As a result a pre-tax loss of #2.807
million was incurred in the period and there was a cash outflow of #2.960
million.
The primary objectives for RMR continue to be the development of a profitable
revenue stream combined with the reduction of operating costs and cash
outflow. The Board is addressing the revenue position by considering a number
of acquisitions to grow sales and obtain better utilisation of RMR's product
offering. I am pleased to report that we are today announcing the proposed
acquisition of Learning Angles Limited, a corporate e-learning business that
produces quality rich content delivered over a number of platforms. Learning
Angles will utilise RMR's Elevate to provide integrated training solutions to
its corporate clients and will also bring us an experienced sales team. A
circular convening an Extraordinary General Meeting to approve this
acquisition will be posted to shareholders within the next few days.
In addition to the need to increase sales revenue, in the short-term we have
to lower operating costs. To this end we are in the process of implementing a
plan for a further reduction of our UK payroll costs and overheads. As part of
this process several senior management and Board changes have already been
implemented.
Further details on the current strategy and reviews of the business and
performance for the six months to 31 August 2001 are set out below.
Strategy
Since my appointment, we have reviewed all of RMR's operations and concluded
that our business proposition should be as a provider of technology and
content solutions to organisations with complex information needs. In the
first instance, RMR will use its existing Elevate, conference and website
design products of which Elevate is potentially the most promising source of
revenue. Other complementary products may be acquired and it is expected that
these acquisitions will be focused initially on e-learning products with
particular emphasis on customers in the financial sectors.
Our revenue strategy is to build a sustainable customer base that will include
well-financed organisations such as large corporates, financial institutions,
government and professional bodies. In this regard, it is the intention to
acquire similar businesses that can benefit from RMR's established product
range, technical expertise, infrastructure and stock market listing.
Our target market for training and professional development products is large,
well established and growing. Our potential customers are geographically
diverse organisations typically with distributed well-trained staff and their
own large customer base. Our software will enable them to solve their
information and training needs and reach a wider audience in a more
cost-effective way than traditional systems and as a result reduce
unproductive travelling and out-of-office time.
Business review - UK
Following the restructuring in January 2001, RMR decided to expand its
business beyond producing self-commissioned conferences to work more closely
with third parties who had existing content and community. Thus, RMR
repositioned itself to become an Application Service Provider (ASP) using its
conference and knowledge management platforms to provide online information
solutions to third parties such as conference organisers, academic
institutions and large companies.
In the six months to 31 August 2001, 8 conferences were progressed including
both self-commissioned conferences and events organised on behalf of third
parties. Self-commissioned events have included 3G2001 (www.rmr-3g2001.com)
and Corporate Travel 2001 (www.rmr-corporatetravel2001.com) which were
launched in June 2001 and July 2001 respectively. Conferences for third
parties include Supply Chain Knowledge Management (www.sck2001.com) which is
being organised in conjunction with Cranfield School of Management. On these
events, RMR's revenues have for the most part continued to be derived from the
sale of exhibition stands and sponsorship space and accordingly revenues have
been affected by the decline in demand for online advertising.
We have continued to develop high quality web and portal sites during the
period with high profile projects in the e-government
(www.energy-efficiency.gov.uk) and charity (www.autismconnect.org) sectors.
These sites are a valuable "showcase" for RMR's technical and product
strength.
In June 2001, we withdrew from producing our own self-commissioned events
concentrating instead on producing online events in closer partnership with
third parties who already have existing content and community. In addition we
continued to focus on developing knowledge management portals. This resulted
in a scaling back in conference research, editorial and sales teams reducing
employee numbers in the UK from 82 to the current level of 43. As part of this
strategy, we moved away from relying on revenues from online advertising to
receiving fees for licencing our software. The new strategic direction which
was referred to previously builds further on this approach by focusing on the
training and information needs of large organisations.
Business review - US
RMR completed its first dedicated US event in June 2001 with the launch of US
Banking (www.rmr-usbanking.com), organised in conjunction with the American
Bankers Association as primary partner. This event was based on our original
business model of producing a self-commissioned conference and deriving
revenues from the sale of virtual exhibitions stands and sponsorship space.
Although the revenues on US Banking were encouraging, the development,
production and selling of such events is extremely resource intensive and only
cash generative on achievement of a large critical mass of events. For this
reason, the Board believes that the US business should follow a similar
strategic direction to the UK. As a result the US operation was also reduced
in size during the period from 19 employees at the beginning of the year to
its current level of four employees. We believe that there are now significant
opportunities in the US, particularly in the e-learning sector, and we are
reviewing how best to capitalise on these.
Results
The turnover for the six months to 31 August 2001 was #399,000 (2000: #1.114
million) of which 74 per cent (#294,000) represented revenues generated by
online conferences and knowledge management sites, the balance being
attributable to web development (#105,000). The conference and connect sales
of #294,000 included revenues of #123,000 from the US operation.
Principally as a result of below target revenues, a pre-tax loss of #2.807
million was incurred for the six month period (2000: (#2.278 million)). This
loss includes restructuring costs of #166,000.
The cash position at 31 August 2001 was #3.310 million compared to a balance
of #6.270 million at 28 February 2001. For the six-month period, there was a
loss per share of 5.09p (2000: (4.44p)).
Board changes
Dr Michael Peagram resigned as Chairman on 7 August 2001 and Kazia Kantor and
Robert Jackson resigned as non-executive director and chief executive officer
respectively on 14 September 2001. I was appointed executive chairman with
effect from 17 September 2001. Ned Carroll has also joined the Board as a
non-executive director with effect from 8 October 2001. Ned, a chartered
accountant, was a director of RMR prior to its flotation and is familiar with
the Company and known to many of our shareholders. Dr Mark Smith, one of RMR's
co-founders, has decided to step down as an executive director with effect
from 31 October 2001 and he has agreed to provide consulting services to the
Company. We look forward to working with him in that capacity. Derek Cormack
continues in his role as Finance Director.
Prospects
The past six months have been challenging as we have restructured the
business, refined the business model and developed new products. I believe we
now have the base on which to build a successful business primarily in the
e-learning marketplace. Elevate, our e-learning product, is RMR's most
client-focused piece of software development to date and much of our future
sales effort will be centred on this product. We have a number of potential
acquisitions and strategic partnerships under active review, the first of
which is announced today. The acquisition of Learning Angles forms the first
part of RMR's new strategy of focusing on Elevate to take advantage of the
market demand for technology supported training. The Board believes that this
acquisition will provide an excellent opportunity to develop and market
Elevate in a cost-effective manner using Learning Angles' software development
and sales expertise in addition to giving us access to its "blue chip" client
base.
Michael Mills
Executive Chairman
Group Profit and Loss Account
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 August 31 August 28 February
2001 2000 2001
#000 #000 #000
Turnover 399 1,114 2,052
Cost of sales (903) (1,583) (3,606)
_______ _______ _______
Gross result (504) (469) (1,554)
_______ _______ _______
Professional costs prior to company - (255) (255)
flotation
Restructuring costs (166) - (330)
Other administrative expenses (2,257) (1,775) (4,623)
_______ _______ _______
Administrative expenses (2,423) (2,030) (5,208)
_______ _______ _______
Operating loss (2,927) (2,499) (6,762)
Net interest 120 221 446
_______ _______ _______
Loss on ordinary activities (2,807) (2,278) (6,316)
Taxation - - -
_______ _______ _______
Loss for the period (2,807) (2,278) (6,316)
===== ===== =====
Basic loss per share (pence per share) (5.09) (4.44) (11.88)
Dividends per share (pence per share) - - -
There were no recognised gains or losses other than the loss for the period.
Group Balance Sheet
Unaudited Unaudited Audited
at 31 at 31 at 28
August August February
2001 2000 2001
#000 #000 #000
Fixed Assets
Tangible fixed assets 1,070 1,241 1,235
Investments 150 - -
Current Assets
Stocks - 50 -
Debtors 263 800 603
Cash at bank and in hand 3,310 9,731 6,270
______ ______ _____
3,573 10,581 6,873
Creditors: amounts falling due within one (464) (574) (966)
year
_______ ______ ______
Net Current assets 3,109 10,007 5,907
_______ ______ ______
Total assets less current liabilities 4,329 11,248 7,142
Creditors: amounts falling due after more (49) (122) (55)
than one year
______ ______ ______
Net assets 4,280 11,126 7,087
===== ===== =====
Capital and reserves
Called up share capital 5,510 5,510 5,510
Share premium 10,650 10,650 10,650
Profit and loss account (11,880) (5,034) (9,073)
_______ ______ ______
Shareholders'funds 4,280 11,126 7,087
===== ===== =====
Group Cash Flow Statement
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 August 31 August 28 February
2001 2000 2001
#000 #000 #000
Net cash flow from operating (2,834) (2,722) (6,139)
activities
Returns on investment and servicing of
finance
Net interest 120 221 446
Capital expenditure and financial
investment
Purchase of tangible fixed assets (107) (656) (922)
Purchase of investment (150) - -
Proceeds on sale of tangible fixed 11 - 59
assets
_______ _______ _______
(246) (656) (863)
Financing
Issue of share capital - 12,823 12,823
Capital element of finance lease - (11) (73)
borrowings
Expenses paid in connection with share - (449) (449)
issues
_______ _______ _______
Net cash flow from financing - 12,363 12,301
_______ _______ _______
Movement in cash (2,960) 9,206 5,745
===== ===== =====
Notes to the Accounts
1. The results for the six months ended 31 August 2001 and 31 August 2000 and
the Balance Sheets as at those dates are unaudited. The results for the year
ended 28 February 2001 are taken from the Group's statutory accounts for that
year, which contains an unqualified audit report, which have been filed with
the Registrar of Companies.
The Group Balance Sheets presented have been adapted to incorporate the
principles of Merger Accounting.
2. The loss per share figures have been calculated on the loss on ordinary
activities and the weighted average number of shares in issue for the period
of 55,102,847 (31 August 2000: 51,300,662 and 28 February 2001: 53,186,129).
The number of shares in issue for the periods to 31 August 2001 and 28
February 2001 have been calculated using the principals of Merger Accounting.
3. The interim financial statements above do not comprise statutory accounts
for the purposes of s240 of the Companies Act 1985.
4. Reconciliation of movement in shareholders' funds
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 August 31 August 28 February
2001 2000 2001
#000 #000 #000
Loss for the period (2,807) (2,278) (6,316)
Issue of shares - 12,736 12,736
Expenses of share issues - (584) (585)
Adjustment for merger accounting - 87 87
_______ _______ _______
Net movement in shareholders' funds (2,807) 9,961 5,922
Shareholders' funds at beginning of 7,087 1,165 1,165
period
_______ _______ _______
Shareholders' funds at end 4,280 11,126 7,087
of period ===== ===== =====
Adjustment for merger accounting relates to the difference between the nominal
value of the Company's shares and the value of share capital and share premium
in its subsidiary which arises from the merger accounting method of
consolidation adopted.
5. Net cash flow from operating activities
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 August 31 August 28 February
2001 2000 2001
#000 #000 #000
Operating loss (2,927) (2,499) (6,762)
Depreciation 199 142 315
Loss on sale of tangible fixed 62 - 21
assets
Change in stocks - 20 70
Change in debtors 340 34 231
Change in creditors (508) (419) (14)
_______ _______ _______
Net cash flow from (2,834) (2,722) (6,139)
operating activities ===== ===== =====
6. Reconciliation of net cash flow to net debt
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 August 31 August 28 February
2001 2000 2001
#000 #000 #000
Increase/(decrease) in cash (2,960) 9,206 5,745
Capital element of finance leases 8 11 73
_______ _______ _______
Change in net funds resulting from (2,952) 9,217 5,818
cash flows
Inception of finance leases - (106) (88)
________ _______ ______
Movement in net funds for the period (2,952) 9,111 5,730
Net funds at 1 March 2001 6,201 471 471
_______ _______ _______
Net funds at 31 August 3,249 9,582 6,201
2001 ===== ===== =====
7. Copies of the interim accounts will be sent to shareholders. Further copies
will be available from the Company's head office at Oakfield House, Oakfield
Industrial Estate, Stanton Harcourt Road, Eynsham, Oxon, OX8 1TH for one month
from the date of this announcement. Telephone: 01865 733733 or email:
info@rmrplc.com.
9 October 2001
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