Second Interim Report

 

TIDMTOU 
 
RNS Number : 3788J 
Touch Group PLC 
30 March 2010 
 

 
                                TOUCH GROUP PLC 
                            ('Touch' or 'the Group') 
 
   Unaudited Second Interim Report for the Six Months Ended 31 December 2009 
 
Following the change in accounting reference date to 31 March Touch Group plc, 
the international business-to-business publishing group, today announces its 
second unaudited interim results for the six-month period ended 31 December 
2009. 
 
Highlights 
 
·      Turnover down 23% GBP2,604,000 (H208: GBP3,385,000) 
 
 
·      Trading loss* up 83% GBP521,000 (H208: GBP284,000) 
 
 
·      Orders Carried Forward up 25% GBP1,755,000 (H208: GBP1,400,000) 
 
 
·      Sales Force now 39 strong up 70% from average in 2009 
 
 
·      Refocus on a balanced range of revenue streams 
 
 
·      Successful capital raising of GBP780,000 during this period has 
positioned the Group strongly for growth. 
 
 
* "Trading loss" refers to operating loss before the impact of investment 
impairments, fixed asset impairments, share based payment charges and credits 
and other operating income. 
 
Trading Review 
The period has been one of transition.  We have also established new journals, 
new clients and new marketing activities which will benefit the forthcoming 
trading year.  However, looking back, the twelve months ended 31 December 2009 
was a period of difficult trading generally and strategic change for the Company 
in particular resulting in turnover for the second six months of 2009 of 
GBP2,604,000 some 23% lower than the equivalent period in the prior year.  This 
shortfall compounded the shortfall in revenue in the first six months of 2009 
with the result that for the full year ended 31 December 2009 revenue amounted 
to GBP4,711,000, down 25% on the prior year. 
 
The revenue breakdown shows that the principal shortfall in revenue was in the 
core clinical publications where revenues were 30% lower than the prior year. 
 
+-----------------------+----------+--------------+----------+--------------+ 
|                       |          |         Year |          |         Year | 
|                       |          |     ended 31 |          |     ended 31 | 
|                       |          |     December |          |     December | 
|                       |          |         2009 |          |         2008 | 
+-----------------------+----------+--------------+----------+--------------+ 
| Clinical publications |          | GBP3,249,000 |          | GBP4,669,000 | 
|                       |          |              |          |              | 
+-----------------------+----------+--------------+----------+--------------+ 
| Energy publications   |          |   GBP536,000 |          |   GBP581,000 | 
+-----------------------+----------+--------------+----------+--------------+ 
| Barter revenues       |          |   GBP497,000 |          |   GBP788,000 | 
+-----------------------+----------+--------------+----------+--------------+ 
| Medical               |          |   GBP236,000 |          |   GBP184,000 | 
| communications        |          |              |          |              | 
+-----------------------+----------+--------------+----------+--------------+ 
| Online                |          |   GBP193,000 |          |    GBP68,000 | 
+-----------------------+----------+--------------+----------+--------------+ 
| Total Turnover        |          | GBP4,711,000 |          | GBP6,290,000 | 
+-----------------------+----------+--------------+----------+--------------+ 
 
 
The revenue shortfall compared to the prior year was across our major markets of 
the US and Europe as demonstrated below, with Europe down 24% and the USA down 
20%. 
 
+-----------------------+----------+--------------+----------+--------------+ 
|                       |          |         Year |          |   Year ended | 
|                       |          |     ended 31 |          |           31 | 
|                       |          |     December |          |     December | 
|                       |          |         2009 |          |         2008 | 
+-----------------------+----------+--------------+----------+--------------+ 
| Europe (excl UK)      |          | GBP2,313,000 |          | GBP3,029,000 | 
+-----------------------+----------+--------------+----------+--------------+ 
| USA                   |          | GBP1,801,000 |          | GBP2,242,000 | 
+-----------------------+----------+--------------+----------+--------------+ 
| United Kingdom        |          |   GBP463,000 |          |   GBP646,000 | 
+-----------------------+----------+--------------+----------+--------------+ 
| Rest of World         |          |   GBP134,000 |          |   GBP373,000 | 
+-----------------------+----------+--------------+----------+--------------+ 
| Total Turnover        |          | GBP4,711,000 |          | GBP6,290,000 | 
+-----------------------+----------+--------------+----------+--------------+ 
 
The revenue shortfall was caused by three key factors: 
 
·      A seriously depleted salesforce. From the Autumn of 2008 we lost a number 
of sales personnel which resulted in reduced sales. The retained saleforce was 
not able to increase its level of business to compensate for this. 
·      The core publications business. We became overly focussed on one revenue 
stream, that of supported content at the expense of advertising and reprint 
revenues. 
·      Underestimating the level of operational change.  We moved the business 
model to one where content support is the major revenue stream. The transition 
has created a significant period of time between the order and the delivery of 
the publication.  We are, therefore, addressing the critical need to close the 
selling for a publication much earlier, coupled with a reinforced emphasis on 
our advertising and reprint sales. 
 
Whilst we had forecast an increase in revenue in 2009 over 2008, and had a 
realistic expectation of profit, the substantial reduction in revenues of 25% 
has led to the loss for the six months of GBP590,000 and a loss for the year of 
GBP1.6 million. 
 
 
Action Taken 
We have taken the steps and continue to make further operational changes to 
address the key revenue issues and achieve our aim of producing sustainable 
profits. These steps include: 
·     Establishing and empowering strong sales leadership. 
 
·      Recruiting for and substantially increasing our Core sales force which 
includes both 
our Clinical and Energy teams.  We have been successful in attracting a very 
high quality of recruit with appropriate qualifications, a programme which is 
ONGOING. We have, as of today, a Core team of 39, up from the average level of 
23 in 2009. 
 
·      Completing the recruitment of our medical communications team. We are now 
resourced to deliver a significantly higher level of revenue than 2009 and have 
carry forward orders for 2010 worth over GBP250,000 in our Medical Communication 
Division. 
 
·      Putting in place the mechanism to ensure that we maximise our core 
medical publications revenue opportunities from advertising and reprints. 
 
In our results for the six months to 30 June 2009 we said our cost base would 
fall.  These savings have and are being redeployed into the revenue generating 
areas of our business. 
 
Whilst we have identified issues and taken action to deal with the major revenue 
issues experienced in 2009, due to the long lead time in the core medical 
business, we do not expect these actions to have a beneficial impact on the 
three months ended 31 March 2010 but they have set our year commencing 1 April 
2010 for the best start. 
 
In December 2009 the Company strengthened its balance sheet by raising 
GBP780,000 of additional equity at the mid market price from existing 
institutional shareholders. The result is that we are now well capitalised to 
implement our business plan. 
 
Our balance sheet includes Current Liabilities Trade and Other Payables of 
GBP2.584m (2008: GBP1.45m) of which GBP820,000 (2009-GBP0) relates to 
compensation received from the government relating to the property move. This 
compensation creditor is being amortised to the profit and loss account to match 
the depreciation charge on the assets acquired with compensation. 
 
On 11 February we appointed Stuart Winship as CEO, moving him from his position 
as CFO.  Stuart brings to this all important role not only his financial 
expertise honed as a former Partner with Arthur Andersen and Deloitte, but 
considerable skills in online marketing coupled with a depth of knowledge of our 
Medical and Energy publishing.  He has been given and accepted the remit to 
drive revenue growth and cash generation. 
 
In closing I would like to take this opportunity of thanking our executive team 
and all our staff in the way they are stepping up in their efforts to contribute 
to our business. 
 
 
For further information please contact: 
 
Touch Group PLC 
Vincent Isaacs 
Executive Chairman                                                 Tel:  020 
7452 5222 
 
Shore Capital and Corporate Limited 
Nominated adviser to the Company 
Andrew Raca                                                          Tel:  020 
7468 7923 
 
 
 
CONSOLIDATED INCOME STATEMENT 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
|                                  |       | Unaudited |          | Unaudited |          | Unaudited | 
|                                  |       |       Six |          |       Six |          |      Year | 
|                                  |       |    months |          |    months |          |     ended | 
|                                  |       |     ended |          |     ended |          |        31 | 
|                                  |       |        31 |          |        31 |          |  December | 
|                                  |       |  December |          |  December |          |      2009 | 
|                                  |       |      2009 |          |      2008 |          |           | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
|                                  |Notes  |   GBP'000 |          |   GBP'000 |          |   GBP'000 | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
| CONTINUING OPERATIONS            |       |           |          |           |          |           | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
| Revenue                          |  3    |     2,325 |          |     3,385 |          |     4,711 | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
| Cost of sales                    |       |   (1,057) |          |   (1,839) |          |   (2,404) | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
| GROSS PROFIT                     |       |     1,268 |          |     1,546 |          |     2,307 | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
| Administrative expenses          |  3    |   (1,816) |          |   (1,824) |          |   (3,648) | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
| Other operating                  |       |         - |          |      (99) |          |     (230) | 
| expenses-impairment              |       |           |          |           |          |           | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
| OPERATING LOSS                   |       |     (548) |          |     (377) |          |   (1,571) | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
| Investment revenue               |       |         3 |          |        13 |          |         3 | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
| Finance costs                    |       |      (45) |          |      (19) |          |      (53) | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
| LOSS BEFORE TAX                  |       |     (590) |          |     (383) |          |   (1,621) | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
| Tax                              |       |         - |          |         - |          |         - | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
| LOSS FOR THE PERIOD              |       |     (590) |          |     (383) |          |   (1,621) | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
|                                  |       |           |          |           |          |           | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
| LOSS PER SHARE                   |  4    |     Pence |          |     Pence |          |     Pence | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
| Basic                            |       |    (0.49) |          |    (0.34) |          |    (1.36) | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
| Diluted                          |       |    (0.49) |          |    (0.34) |          |    (1.36) | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
|                                  |       |           |          |           |          |           | 
+----------------------------------+-------+-----------+----------+-----------+----------+-----------+ 
 
 
 
CONSOLIDATED BALANCE SHEET 
 
+---------------------------------+-------+-----------+----------+----------+ 
|                                 |       | Unaudited |          |  Audited | 
|                                 |       |     As at |          |    As at | 
|                                 |       |        31 |          |       31 | 
|                                 |       |  December |          | December | 
|                                 |       |      2009 |          |     2008 | 
+---------------------------------+-------+-----------+----------+----------+ 
|                                 |Notes  |   GBP'000 |          |  GBP'000 | 
+---------------------------------+-------+-----------+----------+----------+ 
| NON-CURRENT ASSETS              |       |           |          |          | 
+---------------------------------+-------+-----------+----------+----------+ 
| Intangible assets               |       |       389 |          |      425 | 
+---------------------------------+-------+-----------+----------+----------+ 
| Property, plant and equipment   |       |       893 |          |      434 | 
+---------------------------------+-------+-----------+----------+----------+ 
| Investments                     |       |        55 |          |       50 | 
+---------------------------------+-------+-----------+----------+----------+ 
|                                 |       |     1,337 |          |      909 | 
+---------------------------------+-------+-----------+----------+----------+ 
| CURRENT ASSETS                  |       |           |          |          | 
+---------------------------------+-------+-----------+----------+----------+ 
| Inventories                     |       |       440 |          |      312 | 
+---------------------------------+-------+-----------+----------+----------+ 
| Trade and other receivables     |       |     2,102 |          |    3,162 | 
+---------------------------------+-------+-----------+----------+----------+ 
| Cash and cash equivalents       |       |     1,247 |          |      531 | 
+---------------------------------+-------+-----------+----------+----------+ 
|                                 |       |     3,789 |          |    4,005 | 
+---------------------------------+-------+-----------+----------+----------+ 
| TOTAL ASSETS                    |       |     5,126 |          |    4,914 | 
+---------------------------------+-------+-----------+----------+----------+ 
|                                 |       |           |          |          | 
+---------------------------------+-------+-----------+----------+----------+ 
| CURRENT LIABILITIES             |       |           |          |          | 
+---------------------------------+-------+-----------+----------+----------+ 
| Trade and other payables        |       |   (2,589) |          |  (1,645) | 
+---------------------------------+-------+-----------+----------+----------+ 
| Borrowings                      |       |     (260) |          |    (450) | 
+---------------------------------+-------+-----------+----------+----------+ 
|                                 |       |   (2,849) |          |  (2,095) | 
+---------------------------------+-------+-----------+----------+----------+ 
|                                 |       |           |          |          | 
+---------------------------------+-------+-----------+----------+----------+ 
| NET CURRENT ASSETS              |       |       940 |          |    1,910 | 
+---------------------------------+-------+-----------+----------+----------+ 
|                                 |       |           |          |          | 
+---------------------------------+-------+-----------+----------+----------+ 
| NON-CURRENT LIABILITIES         |       |           |          |          | 
+---------------------------------+-------+-----------+----------+----------+ 
| Obligations under finance       |       |       (3) |          |     (18) | 
| leases                          |       |           |          |          | 
+---------------------------------+-------+-----------+----------+----------+ 
|                                 |       |           |          |          | 
+---------------------------------+-------+-----------+----------+----------+ 
| NET ASSETS                      |       |     2,274 |          |    2,801 | 
+---------------------------------+-------+-----------+----------+----------+ 
|                                 |       |           |          |          | 
+---------------------------------+-------+-----------+----------+----------+ 
| EQUITY                          |       |           |          |          | 
+---------------------------------+-------+-----------+----------+----------+ 
| Issued share capital            |  5    |     1,619 |          |    1,112 | 
+---------------------------------+-------+-----------+----------+----------+ 
| Share premium account           |  5    |      4476 |          |    3,922 | 
+---------------------------------+-------+-----------+----------+----------+ 
| Other reserve                   |       |       300 |          |      300 | 
+---------------------------------+-------+-----------+----------+----------+ 
| Retained loss                   |       |   (4,121) |          |  (2,533) | 
+---------------------------------+-------+-----------+----------+----------+ 
| TOTAL EQUITY                    |       |     2,274 |          |    2,801 | 
+---------------------------------+-------+-----------+----------+----------+ 
 
 
 
 
CONSOLIDATED CASH FLOW STATEMENT 
 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
|                               |          |      | Unaudited |          | Unaudited |          | Unaudited | 
|                               |          |      |       Six |          |       Six |          |      Year | 
|                               |          |      |    months |          |    months |          |  ended 31 | 
|                               |          |      |     ended |          |  ended 31 |          |  December | 
|                               |          |      |        31 |          |  December |          |      2009 | 
|                               |          |      |  December |          |      2008 |          |           | 
|                               |          |      |      2009 |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
|                               |          |      |   GBP'000 |          |   GBP'000 |          |   GBP'000 | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
|                               |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Operating loss for the period |          |      |     (548) |          |     (377) |          |   (1,571) | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
|                               |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Adjustments for               |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Depreciation of property,     |          |      |        84 |          |        37 |          |       151 | 
| plant and equipment           |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Amortisation of intangibles   |          |      |        90 |          |        58 |          |       108 | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Fixed asset impairment        |          |      |         - |          |         - |          |       230 | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Investment impairment         |          |      |         - |          |        99 |          |         - | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Share based payment charge    |          |      |        27 |          |        47 |          |        33 | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Operating cash flows before movements in        |     (347) |          |     (136) |          |   (1,049) | 
| working capital                                 |           |          |           |          |           | 
+-------------------------------------------------+-----------+----------+-----------+----------+-----------+ 
|                               |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| (Increase) / decrease in      |          |      |     (168) |          |        33 |          |     (128) | 
| inventories                   |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| (Increase) / decrease in      |          |      |       313 |          |     (323) |          |       898 | 
| receivables                   |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Increase / (decrease) in      |          |      |       283 |          |      (35) |          |       124 | 
| payables                      |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Cash flows from operating     |          |      |        81 |          |     (461) |          |     (155) | 
| activities                    |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
|                               |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Investing activities          |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Interest received             |          |      |         - |          |        13 |          |         3 | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Interest and similar expenses |          |      |      (41) |          |      (19) |          |      (53) | 
| paid                          |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Acquisition of plant,         |          |      |     (820) |          |      (90) |          |     (840) | 
| property and equipment        |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Compensation received for     |          |      |       820 |          |         - |          |       820 | 
| relocation                    |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Acquisition of intangible     |          |      |      (72) |          |     (179) |          |      (72) | 
| assets                        |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Net cash used in investing    |          |      |     (113) |          |     (275) |          |     (142) | 
| activities                    |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
|                               |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Financing activities          |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| New borrowings                |          |      |         - |          |         - |          |       275 | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Repayment of borrowings       |          |      |     (365) |          |      (50) |          |     (365) | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Invoice debt financing        |          |      |       568 |          |       364 |          |       157 | 
| acquired                      |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Finance lease borrowings      |          |      |         - |          |        56 |          |        13 | 
| acquired                      |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Finance lease borrowings      |          |      |      (13) |          |         - |          |      (13) | 
| repaid                        |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Capital lease repayments      |          |      |      (10) |          |       (8) |          |      (15) | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| New shares issued             |          |      |       761 |          |         - |          |       961 | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Net cash from financing       |          |      |       941 |          |       362 |          |     1,013 | 
| activities                    |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
|                               |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Net increase/(decrease) in cash and cash        |       909 |          |     (374) |          |       716 | 
| equivalents                                     |           |          |           |          |           | 
+-------------------------------------------------+-----------+----------+-----------+----------+-----------+ 
| Cash and cash equivalents at  |          |      |       338 |          |       905 |          |       531 | 
| beginning of period           |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
| Cash and cash equivalents at  |          |      |     1,247 |          |       531 |          |     1,247 | 
| period end                    |          |      |           |          |           |          |           | 
+-------------------------------+----------+------+-----------+----------+-----------+----------+-----------+ 
 
 
 
NOTES TO THE INTERIM FINANCIAL STATEMENTS 
 
 
1. SIGNIFICANT ACCOUNTING POLICIES 
 
These accounts comply with relevant accounting standards and have been prepared 
on a consistent basis using the accounting policies set out in the Annual Report 
and Accounts 2008. 
 
 
2. NATURE OF INFORMATION 
 
The interim accounts for the six months ended 31 December 2009 and the 
comparative figures for the six months ended 31 December 2008 and the figures 
for the twelve months ended 31 December 2009 have not been audited by the 
Company's auditors. 
 
The financial statements for the twelve months ended 31 December 2008 have been 
reported on by the Company's auditors and delivered to the Registrar of 
Companies. The report of the auditors on such accounts was unqualified and did 
not contain any statement under sections 237(2) or 237(3) of the Companies Act 
1985. 
 
 
3. BUSINESS AND GEOGRAPHICAL SEGMENTS 
 
Business Segments 
 
The revenue and operating loss of the Group are derived solely from continuing 
operations. The directors consider that the business operates within one 
business segment, that of multimedia marketing. 
 
Included within administrative expenses is a share based payment charge of 
GBP27,000 for the six months to 31 December 2009, GBP47,000 for the six months 
to 31 December 2008 and GBP30,000 for the 12 months ended 31 December 2009. 
 
Geographical Segments 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
|                          |    | Unaudited | | Unaudited | | Unaudited | 
|                          |    |       Six | |       Six | |      Year | 
|                          |    |    months | |    months | |     ended | 
|                          |    |     ended | |     ended | |        31 | 
|                          |    |        31 | |        31 | |  December | 
|                          |    |  December | |  December | |      2009 | 
|                          |    |      2009 | |      2008 | |           | 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
| Revenue by destination:  |    |   GBP'000 | |   GBP'000 | |   GBP'000 | 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
| Rest of Europe           |    |     1,130 | |     1,511 | |     2,313 | 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
| U.S.A                    |    |       982 | |     1,112 | |     1,801 | 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
| United Kingdom           |    |       145 | |       517 | |       463 | 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
| Rest of World            |    |        68 | |       245 | |       134 | 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
|                          |    |     2,325 | |     3,385 | |     4,711 | 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
| Operating loss by        |    |           | |           | |           | 
| destination:             |    |           | |           | |           | 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
| Rest of Europe           |    |     (266) | |     (178) | |     (658) | 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
| U.S.A                    |    |     (231) | |     (131) | |     (495) | 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
| United Kingdom           |    |      (34) | |      (38) | |     (362) | 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
| Rest of World            |    |      (17) | |      (30) | |      (56) | 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
|                          |    |     (548) | |     (377) | |   (1,571) | 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
| Segment total assets:    |    |           | |           | |           | 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
| All United Kingdom       |    |     5,126 | |     4,914 | |     5,126 | 
+--------------------------+----+-----------+-+-----------+-+-----------+ 
 
 
NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 
 
 
 
4. LOSS PER SHARE 
 
The calculation of the basic and diluted earnings per share is based on the 
following data: 
 
+---------------------------------+--+-------------+----------+-------------+----------+-------------+ 
|                                 |  |   Unaudited |          |   Unaudited |          |   Unaudited | 
|                                 |  |         Six |          |         Six |          |        Year | 
|                                 |  |      months |          |      months |          |       ended | 
|                                 |  |       ended |          |       ended |          |          31 | 
|                                 |  |          31 |          |          31 |          |    December | 
|                                 |  |    December |          |    December |          |        2009 | 
|                                 |  |        2009 |          |        2008 |          |             | 
|                                 |  |             |          |             |          |             | 
+---------------------------------+--+-------------+----------+-------------+----------+-------------+ 
|                                 |  |     GBP'000 |          |     GBP'000 |          |     GBP'000 | 
+---------------------------------+--+-------------+----------+-------------+----------+-------------+ 
| Earnings:                       |  |             |          |             |          |             | 
+---------------------------------+--+-------------+----------+-------------+----------+-------------+ 
| Earnings for the purposes of basic |       (590) |          |       (383) |          |     (1,621) | 
| and diluted earnings per share     |             |          |             |          |             | 
+------------------------------------+-------------+----------+-------------+----------+-------------+ 
|                                 |  |             |          |             |          |             | 
+---------------------------------+--+-------------+----------+-------------+----------+-------------+ 
| Number of shares:               |  |      Shares |          |      Shares |          |      Shares | 
+---------------------------------+--+-------------+----------+-------------+----------+-------------+ 
| Weighted average number of      |  | 121,465,145 |          | 111,191,921 |          | 119,580,200 | 
| shares for the purposes of      |  |             |          |             |          |             | 
| basic and diluted earnings per  |  |             |          |             |          |             | 
| share                           |  |             |          |             |          |             | 
+---------------------------------+--+-------------+----------+-------------+----------+-------------+ 
|                                                                                                    | 
| Some options granted to employees could potentially dilute basic earnings per share                | 
| in the future, but were not included in the calculation of diluted earnings per                    | 
| share as they are anti dilutive for the period presented.                                          | 
|                                                                                                    | 
+---------------------------------+--+-------------+----------+-------------+----------+-------------+ 
 
5. SHARE CAPITAL 
 
On 6th January 2009 the Company issued 6,666,667 shares of 1 pence nominal value 
at a price of 3 pence per share, raising GBP0.2 million in funding for the 
business. 
 
On 16th December 2009 the Company raised GBP780,000 before expenses in cash by 
way of a Placing of 39,000,000 new ordinary shares of 1 pence nominal value at a 
price of 2 pence per share. In addition, Vincent Isaacs, the Company's Executive 
Chairman, converted GBP100,000 which was part of a loan previously made by him 
to the Company into 5,000,000 new ordinary shares at a price of 2 pence per 
share. 
 
6. AVAILABILITY OF ACCOUNTS 
 
Copies of these interim results are available from Touch Group plc, Saffron 
House, 6-10 Kirby Street, London EC1N 8TS. Alternatively a downloadable version 
is available from the following web address: www.touchbriefings.com/reports.htm. 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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