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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| The Market Age | LSE:TMA | London | Ordinary Share | GB0009256867 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.00 | - |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
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RNS Number:9699T
Market Age PLC
07 January 2004
Chairman and Chief Executive's Review
Highlights:
* Return from suspension with stronger balance sheet
* Despite setbacks, turnover stable for full year and interim turnover
up 55%
* Costs reduced
* Agreement to establish a low-cost offshore research bureau
* Pronet FX research gains top-five ranking for a third year
* New revenue opportunity in equities research
I am pleased to finally report on a difficult year and a half for the Company.
As a result we are issuing our audited accounts for the year ended February 28,
2003 and our unaudited interim accounts for the six months to August 31, 2003
together and this review covers both periods. Following the publication of the
annual report and interim accounts the Company's shares will restart trading on
AIM tomorrow, 8 January 2004.
Financial Results
Despite a slightly improved climate in our target marketplace compared to the
previous year and resolution of the operational problems I reported to you last
time, turnover for the year to February 28, 2003 was largely unchanged at
#241,000 (2002: #255,000). This is attributable in view of the board first, to
the failure of the key sales channel to adequately promote and market our core
service; and second, to the decision of a key prospective client to abandon
their plans to implement a graphical support service within their foreign
exchange trading portal. Turnover increased by 55% for the six months to August
31, 2003 #171,000 (2002: #110,000), as a result of a focus on alternative sales
channels to replace the key channel noted above and more fully described below.
The operating loss for the year to February 28, 2003 was #980,000 (2002:
#2,174,000) and for the six months to August 31, 2003 #216,000 (2002: #706,000).
Following the reduction in cost levels, net cash outflow has also fallen
substantially. Net cash outflow from operating activities for the year to
February 28, 2003 was #895,000 (2002: #1,876,000) and for the six months August
31, 2003 #14,000 (2002: #488,000).
Board
Together with a number of related post-balance sheet events more fully described
in later sections, I am sorry to announce that Alistair Mackintosh stepped down
from the Board on 5 December 2003. Alistair has brought his considerable
experience to bear over the last three years and we have valued and appreciated
his contribution over this time.
Operations
Customers - Pronet Analytics.com
I reported last time on bridgehead successes for the Group in winning new
business. We have continued to develop relationships with key customers and we
believe that we are now poised to substantially increase the value of contracts
with at least three amongst them. This is expected to have a significant effect
on turnover in the coming months.
In addition, I am pleased to report that we have signed a contract with Forex
Capital Markets LLC ("FXCM"), one of the leading on-line currency transactions
firms, who will be offering their clients the facility of having their
discretionary accounts managed according to trading strategies originated by
Pronet. Pronet will be remunerated by way of commission on transactions.
This represents a departure from our standard subscriptions model and is an
unproven revenue source, but substantial revenues are possible from this model
if FXCM's clients take to the idea.
Finally, during the year we negotiated a variation to the exclusivity provision
in the terms of contract for the supply of the TradeSmith service to our
original client, releasing us from the exclusivity clause. We are now able to
market this service to additional clients, and expect to begin to do so early in
2004.
Customers - WTV (Media) Limited
I reported last time on the successful introduction of seed capital funding for
our subsidiary established to serve the retail equities audience. Product
research and development has continued, and meanwhile the market for this
service has been fundamentally changed - for the better - by events in the
United States.
In late 2002, the New York Attorney General (Elliot Spitzer) together with the
SEC and NASD announced an agreed settlement of conflict of interest charges
against ten major broker-dealer firms (investment banks). As part of the
settlement these ten firms alone are obligated to spend $432.5 million during
the next five years to buy independent equities research which they will provide
to their retail clients.
Furthermore, your board believes that the effect of the Spitzer Settlement will
not be limited to these ten firms, but rather that the industry generally will
need to embrace its provisions by supplying independent research to its clients.
Over time, this development is likely to cross the Atlantic and take hold in
European investment banking culture as well.
This effectively creates a new, enlarged market for independent research, which
the directors believe that WTV (Media) Limited is well positioned to leverage.
The "Spitzer Settlement" was finally ratified on 31 October 2003 and the
participating broker-dealer firms have 270 days in which to implement its
provisions fully. In order to assist us in accessing this market, I am pleased
to report that we have agreed heads of terms with a major US firm who will be
using their existing technology to aggregate and distribute research to clients.
Finally, to better encapsulate our function and activity within this market, WTV
(Media) Ltd will change its name to Independent Global Markets Research Limited.
Sales Channel
The key sales distribution relationship that was established by the Company in
February 2002 has not produced the results expected. As a result, the board
cancelled the agreement in February 2003. The cause of the failure has been
identified and negotiations are taking place to address the situation.
Meanwhile the Company is seeking alternative arrangements through local
geographic franchising arrangements. In addition the Company has been
approached by an alternative major market data provider and exploratory talks
are underway.
Staffing and other costs
Continued reduction in staff numbers, relocation of our offices, salary cuts and
other cost reduction measures have extended the downward trend in our monthly
cash outgoings. Monthly costs for the group currently amount to #40,000 (of
which about #15,000 is depreciation).
Operational funding
At the present operating cost levels and together with continued support from
the Company's bankers, the businesses are able to continue for the foreseeable
future. However a moderate degree of investment is required to bring the
Independent Global Markets Research Limited service up to full operating
strength.
This new investment will facilitate hiring of an enlarged team of analysts. In
2000, we commissioned a company based in Mumbai, India to develop our new
software platform. This outsourcing experience proved more economical than
sourcing equivalent services on-shore, and we have now decided to extend our
offshore operations higher in the value chain to origination of the research.
I am pleased to report that we have agreed heads of terms with a firm in India
to provide these services to us, at a cost of about one-third of the on-shore
cost. This will be implemented on conclusion of the appropriate funding.
Possible divestment
For the foreseeable future the resources of the Group will be fully committed in
exploitation of the market for independent research for foreign exchange and
equities. We are seeking possible strategic sales relationships for, or
divestment of, the remaining part of the business that addresses exchange traded
derivatives. We envisage that an online broker would be able to exploit this
service commercially successfully.
ADR Program
In response to deterioration of the balance sheet the Group decided during the
year to put the ADR program on hold for the time being. This will be reviewed at
a later date.
Traderhouse
In November 2000 the Group made a small equity investment in Traderhouse Network
(UK) Limited. Investment in this firm has proved successful in that the firm is
now generating a steady flow of new business for the Group. With the recent
establishment of Traderhouse in the USA, we are hopeful that this will
accelerate over the next twelve months.
Post-balance sheet events
Part of PPM (Nominees) Limited's interest in the ordinary share capital of the
company of 4,716,981 shares will be acquired at the end of the close period by
Shane Smith, acting as agent for a number of parties, to underpin the solvency
and continued operations of the Group. The Board has decided to use these
shares as follows:
First, following a resolution passed at a meeting of Loan Note Holders on
December 2 2003, the terms of the loan note were varied with the effect of
reduction of the face value of the loan note from #703,890 to #70,389, with
interest deferred for three years. The Loan Note Holders are mainly financial
markets professionals in the City who invested in the Group in 1999. In
consideration of this 90% reduction in the nominal value of the Loan Notes, the
Loan Note Holders will receive a total of 175,977 shares.
Second, as payment in lieu of fees to a small number of professional advisers
and others.
Third, as a distribution to the directors and other key staff for a nominal
consideration to encourage their continued commitment to the success of the
Group. The interests of certain directors of the Company in the share capital
of the Company following this will be as follows:
Name Number of PPM Shares Number of ordinary shares Percentage of issued share
received and options held capital
Shane Smith 619,543 619,543 3.6%
Richard Hutchinson 1,048,576 1,533,888 8.8%
Karen Griffith 769,928 1,121,098 6.4%
Malcolm Donaldson 91,987 131,431 0.8%
Albert Maasland 64,733 99,733 0.6%
The Smith Trust* - 9,389,549 53.9%
*Trustees are Shane Smith and Karen Griffith. Beneficiaries are Shane Smith and
Kathy Smith.
Following the transaction the interest of PPM (Nominees) Limited is 1,179,245
shares, representing 6.8% of the issued share capital, and following the
reduction in holding their designated non-executive director, Alistair
Mackintosh, has stepped down from the Board.
Market recognition
I am pleased to report that in December 2003 Pronet is once again ranked in the
top five in the prestigious "Best Bank Awards" in the category of "Best Screen
Based Investment Analysis". Despite substantial diversions during the past 18
months and a focus on opportunities in the equities area, our target audience
continues to recognize Pronet's value, even when ranked against much larger and
longer established firms.
Market branding and positioning
In 2000, we chose the name of the firm from an editorial in The Wall Street
Journal, celebrating the embrace of financial market culture and opportunity by
the population at large. Three years further on, our target - and our
opportunity - is more defined. In an environment increasingly demanding an
untainted, objective and demonstrably independent view, we believe that our
services are gaining in value rapidly.
This is the area that we have chosen to develop and highlight in the coming
years, and we believe that our branding should clearly reflect this positioning.
As part of the resolutions being put to the Company's AGM will therefore be
one to change the Company's name to Independent Investment Research plc.
THE MARKET AGE PLC - FINAL RESULTS: FEBRUARY 2003
Consolidated Profit And Loss Account
For The Year Ended 28 February 2003
2003 2002
Notes # 000's # 000's
Turnover 241 255
Cost of sales (119) (126)
Gross profit 122 129
Administrative expenses (1,102) (2,303)
Operating loss (980) (2,174)
Sale of intellectual property 2 62 -
Gain on deemed disposal of part interest in subsidiary 2 159 -
Loss on ordinary activities before interest (759) (2,174)
Other interest receivable and similar income 6 57
Interest payable and similar charges (45) (44)
Loss on ordinary activities before taxation (798) (2161)
Tax on loss on ordinary activities 124 121
Loss on ordinary activities after taxation (674) (2,040)
Minority interests 28 -
Loss for the financial year (646) (2,040)
Loss per share - basic and diluted 1 4.1p 13.0p
The profit and loss account has been prepared on the basis that all operations
are continuing operations.
There are no recognised gains and losses other than those passing through the
profit and loss account.
Balance Sheet
As At 28 February 2003
Group
2003 2002
# 000's # 000's
Fixed assets
Tangible assets 511 721
Investments - -
511 721
Current assets
Debtors 96 261
Cash at bank and in hand 44 459
140 720
Creditors: amounts falling due within one year (230) (391)
Net current (liabilities)/assets (90) 329
Total assets less current liabilities 421 1,050
Creditors: amounts falling due after more than one year (731) (715)
(310) 335
Capital and reserves
Called up share capital 174 174
Share premium account 4,262 4,262
Other reserves 1,085 1,085
Profit and loss account (5,832) (5,186)
Shareholders' funds - equity interests (311) 335
Minority interests 1 -
(310) 335
Consolidated Cash Flow Statement
For The Year Ended 28 February 2003
2003 2002
# 000's # 000's # 000's # 000's
Net cash inflow/(outflow) from operating activities (895) (1,876)
Returns on investments and servicing of finance
Interest received 6 57
Interest paid (45) (44)
Net cash inflow for returns on investments and (39) 13
servicing of finance
Taxation 245 -
Capital expenditure and financial investment
Payments to acquire tangible assets (10) (632)
Receipts from sales of intangible assets 62 -
Receipts from sales of tangible assets 2 4
Receipts from sales of investments 188 -
Net cash outflow for capital expenditure 242 (628)
Net cash outflow before management of liquid (447) (2,491)
resources and financing
Financing
New long term bank loan 50 4
Repayment of long term bank loan (7) -
Capital element of hire purchase contracts (11) (19)
Net cash inflow from financing 32 (15)
(Decrease)/increase in cash in the year (415) (2,506)
Notes To The Preliminary Announcement
For The Year Ended 28 February 2003
1 Loss per share
The loss per share is based on the net loss of #646k (2002 - #2,039k) and on
15,734,377 ordinary shares (2002 - 15,720,260) being the shares in issue
excluding those owned by the Monument Trust Company Limited. The basic loss per
share and the fully diluted loss per share are identical because the exercise of
the share option would reduce the loss per share and is therefore anti -
dilutive.
2 Related party transactions
Group
Intellectual property was sold for #62,500 to a trust in which S. A. Smith is a
trustee and beneficiary on a sale and leaseback arrangement.
A relative of S A Smith subscribed #187,500 to WTV (Media) Limited to acquire
300 Ordinary Shares of #1 each being 30% of the enlarged share capital of the
company.
3 Reconciliation of operating loss to net cash outflow from operating
activities
2003 2002
# 000's # 000's
Operating loss (980) (2,174)
Depreciation of tangible assets 219 300
Profit on disposal of tangible assets (1) -
Decrease in operating debtors 44 149
(Decrease) in operating creditors (177) (151)
Net cash outflow from operating activities (895) (1,876)
4 Reconciliation of net cash flow to movement in net debt
2003 2002
# 000's # 000's
Decrease in cash in the year (415) (2,506)
Cash inflow from increase in debt (32) 15
Other - (41)
Movement in net debt in the year (447) (2,532)
Opening net (debt)/funds (271) 2,261
Closing net debt (718) (271)
5 Post Balance Sheet Events
Group
Pronet Analytics.Com Limited
In July 2003 the company moved to a new serviced office and the balance on the
leasehold property account of #65,253 is to be written off. This is considered
to be a non adjusting post balance sheet event.
The Market Age PLC
Following a resolution passed at a meeting of the Loan Note Holders on 2
December 2003, the terms of the loan note were varied with the effect of
reducing the face value of the loan note from #703,890 to #70,389, with interest
deferred for three years. In consideration of this 90% reduction in loan note
value the Loan Note Holders have agreed to accept one share for every #4 of loan
note held. Certain of the creditors have accepted equity in lieu of debt while
others have been paid by a director.
6 Status of Information
The financial information set out in this preliminary announcement does not
constitute statutory accounts but have been extracted from the statutory
accounts that are being posted to shareholders. The Company's statutory
accounts have not yet been delivered to the Registrar of Companies. Such
accounts contain an auditors report under Section 235 of the Companies Act 1985
("the Act") which report was unqualified and did not contain a statement under
Sections 237 (2) or (3) of the Act.
THE MARKET AGE PLC - INTERIM RESULTS: AUGUST 2003
Consolidated Profit & Loss Account
6 months ended 6 months ended
31 August 2003 31 August 2002
#000 #000
Turnover - continuing operations 171 110
Cost of sales (46) (58)
Gross profit 125 52
Administrative expenses (341) (758)
Operating loss (216) (706)
Interest receivable - 4
Interest payable (24) (23)
Loss on ordinary activities before taxation (240) (725)
Taxation - 124
Loss on ordinary activities after taxation (240) (601)
Minority interest 1 14
Loss attributable to Members of the Parent Company (239) (587)
Loss per ordinary share (1.52)p 3.73p
Fully diluted loss per ordinary share (1.52)p 3.73p
Consolidated statement of recognised gains and losses
Loss attributable to Members of the Parent Company (239) (587)
Gain on deemed disposal of part interest in subsidiary - 159
Total recognised losses (239) (428)
Consolidated Balance Sheet
As at As at
31 August 2003 31 August 2002
#000 #000
Tangible fixed assets 408 562
Current Assets
Debtors 42 84
Cash at bank and in hand 10 435
52 519
Creditors: amounts falling due within one year (264) (386)
Net current assets (212) 133
Total assets less current liabilities 196 695
Creditors: amounts falling due after one year (746) (773)
Minority interest - (15)
Total net assets (550) (93)
Capital and reserves
Called up share capital 174 174
Share premium account 4,262 4,262
Other reserves (4,986) (4,529)
Equity Shareholders' Funds (550) (93)
Consolidated Cash Flow Statement
6 months ended 6 months ended
31 August 2003 31 August 2002
#000 #000
Net cash outflow from operating activities (14) (488)
Returns on investments and servicing of finance (24) (19)
Tax refunds received - 245
Capital expenditure - tangible fixed assets - (5)
Capital expenditure - receipts from sales of investments - 188
Net cash outflow before financing (38) (79)
Bank loan received 25 -
Lease financing received - 63
Debt repayment (21) (8)
Decrease in cash (34) (24)
Reconciliation of net cash flow to movement in net debt
Decrease in cash (34) (24)
Bank loan received (25) -
Lease financing received - (63)
Debt repayment 21 8
Movement in net cash/(debt) (38) (79)
Net cash/(debt) at beginning of period (718) (271)
Net cash/(debt) at end of period (756) (350)
Net cash outflow from operating activities is
6 months ended 6 months ended
31 August 2003 31 August 2002
#000 #000
Operating loss (216) (706)
Depreciation 103 164
Decrease (increase) in debtors 54 56
Increase (decrease) in creditors 45 (2)
Net cash outflow from operating activities (14) (488)
Analyis of net cash/(debt)
Cash 10 435
Debt due within one year (20) (12)
Debt due after one year (746) (773)
Net cash/(debt) (756) (350)
The Market Age Plc - Notes to Interim Results: August 2003
1. This interim statement has been prepared on the basis of the accounting
policies of The Market Age PLC as set out in its statutory accounts for the
period ending 28 February 2003.
This interim statement consolidates the accounts of The Market Age PLC and all
of its subsidiary undertakings and, as the Company meets the requirements of FRS
6, the consolidation has been prepared using merger accounting.
2. Status of Information
The financial information set out in this preliminary announcement does not
constitute statutory accounts. The Company's statutory accounts for the year
ended 28 February 2003 have not yet been delivered to the Registrar of
Companies. Such accounts contain an auditors report under Section 235 of the
Companies Act 1985 ("the Act") which report was unqualified and did not contain
a statement under Sections 237 (2) or (3) of the Act.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UBUNRSURARAR
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