RNS Number:8917P
Atlantic Global PLC
18 September 2003





For Immediate Release                                        18 September 2003

                              ATLANTIC GLOBAL PLC

             INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2003


Atlantic Global Plc, ("Atlantic Global" or "the Company"), the AIM listed
specialist developer of business and resource management software applications
to a broad range of customers, announces interim results for the six months
ended 30 June 2003.


In his statement to shareholders, Non-executive Chairman, Adrian Bradshaw said:

"The results demonstrate further organic growth and business development,
notwithstanding the Information Technology sector in general has continued to
experience difficult trading conditions. The period under review has in fact
been the most rewarding in the company's history in terms of successful product
development, with six business management products available to our customers,
including our new flagship, Corporate Vision."

Key points: Financial
                                     Six months      Six months           Year
                                          ended           ended          ended
                                   30 June 2003    30 June 2002    31 Dec 2002
                                          #'000           #'000          #'000

Sales                                       907             860          1,551
Operating profit before
goodwill and exceptional
costs
                                            288             284            390
Profit before tax                           231             230            235
Free cash flow                              101             (18)            79
Net Cash Balance                         1, 884           1,800         1, 897

Adjusted earnings per share          1.01 pence      1.03 pence     1.60 pence
Dividend payable per share                    -               -      0.5 pence


Key points: Operating


* New software released during first half include Adeo 9 in April which
includes two new modules, Contractor Management and Risk Management

* Successful development of Corporate Vision, a generic resource,
organisation planning and milestone management tool developed in conjunction
with Pfizer and Norwich Union. First contract already signed with Norwich Union.

* Continuing investment in R&D of new software products

* Blue-chip client base further expanded during period: new contracts
awarded by Telewest Communications, Aspect Communications, NEC Technologies and
Atlan.

* Recent investment in sales and marketing has produced record new
business enquiries

* Total number of supported seats at 30 June 2003 stood at 21,000



Outlook

Commenting on current trading and prospects, Mr. Bradshaw added

"The level of sales interest in our software is currently at the highest level
in the Company's history and trading since the end of June 2003 has continued
successfully. We have focused on software product development and product launch
activity in the first half of the year. Related product sales are therefore
expected to impact in the second half. Accordingly we are looking forward to a
higher profit level in the second part of the year and beyond."

                                     -ends-

Enquiries:

Eugene Blaine, Managing Director, Atlantic Global plc:  
Rupert Hutton, Finance Director, Atlantic Global plc
Today only 020 7786 9600; Thereafter 01274 863300
 
www.atlantic-global.co.uk

Paul Vann, Binns & Co PR Ltd         020 7786 9600



                              Atlantic Global PLC


                   Chairman's Statement - Interim Report 2003


1. Introduction


I am very pleased to report on the Group's interim results for the six-month
period ended 30 June 2003, my first Statement as your recently appointed
Non-executive Chairman. The results demonstrate further organic growth and
business development, notwithstanding the Information Technology sector in
general has continued to experience difficult trading conditions. The period
under review has in fact been the most rewarding in the company's history in
terms of successful product development, with six business management products
now available to our customers, including our new "flagship", Corporate Vision,
further details of which are given in the Operating Review section of this
report. The response from our existing customer base to our Corporate Vision
product has confirmed our view that it has the potential to revolutionise and
deliver major efficiency savings to large corporations.


2. Financial Review


Turnover for the period increased by 5.5% to #907,000 compared to #860,000 in
the first six months of 2002. Operating profit before amortisation of goodwill
rose slightly to #288,000, compared to #284,000 in the first six months of 2002
while profit before tax for the period was unchanged at #231,000 (2002:
#230,000).


Earnings per share (before amortisation of goodwill) of 1.01p were generated for
the six-month period, (2002:1.03p).


Profit growth has been constrained in the first half in part due to a doubling
of our marketing expenditure to #85,000 compared with #43,000 for the equivalent
period in 2002 and also by an increase in our research and development
expenditure of #16,000. However, the financial benefits of these investments
should be felt in the second half of the year and beyond.


At 30 June 2003 the Group had net cash resources of #1,884,000, being cash at
bank and on deposit (2002: #1,800,000). The free cash flow since the start of
the year has been #101,000 confirming the cash generative nature of the
business. Net cash has continued to increase since 30 June 2003 and as at 1
September 2003 stood at #2,075,000.



3. Dividend


The Directors intend to continue to pursue a progressive dividend policy. At the
present time, they believe it would be prudent to recommend dividend payments at
the year-end and therefore no interim dividend is being declared.



4. Operating Review


During the period the company has made significant progress in many areas,
notably the following:


   *The release of the Adeo 9 software at the beginning of April 2003,
    providing significant improvement and updates to the functionality of our
    Adeo suite (the core product of the business). A significantly greater
    amount of the software's administration has been transferred to web-based
    technology, increasing its flexibility. Adeo 9 also now includes two new
    modules, Contractor Management and Risk Management.


   *The Contractor Management module was based on two major existing
    installations, which have been enhanced and further developed to include
    many additional features. All of these improvements are now available
    through our Web enabled Software. This module has already been contracted
    for by Norwich Union in June 2003.

The Risk Management module has been developed in consultation with LogicaCMG and
Barclays Bank Plc and has produced a generic risk management module within Adeo
that is capable of being modelled and used to manage risk at all levels in any
organisation.


   *The development of Corporate Vision which is a generic resource,
    organisation planning and milestone management tool. This system is capable,
    through the provision and sharing of real time management information, of
    changing how an organisation operates and makes decisions. Corporate Vision
    has been developed in conjunction with Pfizer and Norwich Union. When linked
    to the other core Adeo modules, an organisation's people, milestones and
    costs will be clearly visible enabling day to day management decisions to be
    made to ensure the best use of scarce resources. We have already won a major
    contract for Corporate Vision from Norwich Union Life Services in June 2003.


   *Continued investment in the research and development of our software
    products, expenditure on which amounted to #136,000 during the period (2002:
    #120,000).


   *Our blue chip client base has been further expanded during the period
    with new contracts including:


-         Telewest Communications


-         Aspect Communications


-         Echostar International Corporation


-         Atlan


-         NEC Technologies (France and Portugal)


-         Dunnhumby


   *The recruitment of the new sales and marketing personnel is starting to
    produce results with improved focus and clearer messaging resulting in
    record interest being shown in our software products. This follows our
    recent and very successful inaugural Adeo User Group Seminar, held in
    London, hosted by the Company and attended by 64 senior managers from 37 of
    our existing and prospective customers. The objective of the seminar was to
    provide Adeo users with an insight into different customer experiences, the
    future direction of Adeo, and to introduce them to Adeo Corporate Vision.
    The event was designed to be factual, informative and, above all, to deliver
    a platform for customers to successfully network and discuss their
    experiences. Guest speakers included representatives from Norwich Union,
    Virgin Mobile and Aspect Communications, all of whom provided excellent
    presentations provoking keen interest and dialogue from the audience.


   *In June 2003 the Company was successfully reassessed for its retention of
    the Investors in People Standard with very impressive results.


   *The Group's management expertise was also independently recognised when
    Eugene Blaine, Group Managing Director, was nominated as a Northern Regional
    Finalist in the Entrepreneur of the Year Awards 2003, organised by Ernst and
    Young.



5. Board Changes


In June 2003, the Board announced that Michael Langmore, who had been
Non-executive Chairman of the Company since its flotation in June 2001, had
resigned to pursue other business activities. The Board wishes him well in his
ongoing commitments. The Company is in the process of recruiting a new
Non-executive Chairman, with relevant software industry experience, and hopes to
announce an appointment in the near future. Meanwhile, as announced, I will
continue to temporarily fulfil the role.



6. Outlook


We have focused on software product development and product launch activity in
the first half of the year. Related product sales are therefore expected to
impact in the second half. Accordingly we are looking forward to a higher profit
level in the second part of the year and beyond.


With the introduction of Corporate Vision, which is specifically targeted
towards very large blue-chip companies, we would expect that the average size of
future contracts will be larger and potentially less evenly spread than those
won in the past.


The level of sales interest in our software is currently at the highest level in
the Company's history and trading since the end of June 2003 has continued
successfully. In particular, we expect to sign contracts with a number of new
and existing customers in the near future. The total number of supported seats
of our software as at 30 June 2003 was 21,000.


Once again, it is a pleasure to be able to congratulate our people within the
Company for the continued progress, but special appreciation should be shown to
the whole of the Software Development Department for the successful creation of
the new and very sophisticated products that we have available for selling into
what is becoming for us a large and expanding market place.


The Directors believe that the Company is very well placed to increase its
market share, and that it has a committed and highly skilled team with high
quality and very competitive software products which deliver innovative business
solutions adding considerable value to our customers' organisations. Following
the recent developments within the Company, the directors believe that its
growth potential has been enhanced and that Atlantic Global can expect growth in
the years ahead.


Your Board looks forward to announcing further satisfactory progress for the
full year.




Adrian Bradshaw

Chairman

18 September 2003



Consolidated profit and loss account

for the six months ended 30 June 2003

                                   Six months to  Six months to    Year ended 31
                                       30 June        30 June    December 2002
                                          2003           2002
                         Notes
                                   (Unaudited)    (Unaudited)        (Audited)
                                         #'000          #'000            #'000

Turnover                                   907            860            1,551
Cost of sales                             (258)          (287)            (624)
                                   -----------    -----------      -----------
Gross profit                               649            573              927

Administration and                        (452)          (380)            (763)
establishment expenses
 -----------------------  -------      ---------      ---------        ---------
Operating profit before
goodwill amortisation
and exceptional costs
                                           288            284              390
Goodwill amortisation                      (91)           (91)            (181)
Exceptional costs                            -              -              (45)
-----------------------   -------      ---------      ---------        ---------
                                   -----------    -----------      -----------
Operating profit                           197            193              164
Interest receivable                         34             37               71
                                   -----------    -----------      -----------

Profit on ordinary                         231            230              235
activities before
taxation
Tax on profit on              3            (92)           (96)            (104)
ordinary activities
                                   -----------    -----------      -----------
Profit on ordinary                         139            134              131
activities after
taxation
Dividends proposed                           -              -             (114)
                                   -----------    -----------      -----------
Retained profit for the                    139            134               17
period
                                        ======         ======           ======
Adjusted earnings per         4           1.01p          1.03p            1.60p
share
Basic earnings per            4           0.61p          0.61p            0.59p
share
Diluted earnings per          4           0.56p          0.57p            0.56p
share





Consolidated balance sheet

as at 30 June 2003

                                           As at          As at          As at
                                         30 June        30 June    31 December
                           Notes            2003           2002           2002
                                     (Unaudited)    (Unaudited)      (Audited)
                                           #'000          #'000          #'000
Fixed assets
Tangible assets                               61             64             63
Goodwill                                   3,244          3,550          3,335
                                     -----------    -----------    -----------
                                           3,305          3,614          3,398
                                          ======         ======         ======
Current assets
Debtors                                      778            592            365
Cash at bank and in hand                   1,884          1,800          1,897
                                     -----------    -----------    -----------
                                           2,662          2,392          2,262

Creditors: amounts falling
due within one year
                                            (653)          (531)          (485)
                                     -----------    -----------    -----------
Net current assets                         2,009          1,861          1,777
                                     -----------    -----------    -----------
Net assets                                 5,314          5,475          5,175
                                          ======         ======         ======

Capital and reserves                 -----------    -----------    -----------
Called up share capital                    1,137          1,137          1,137
Share premium account                      1,545          1,545          1,545
Shares to be issued             6              -             87              -
reserve
Other reserves                             2,538          2,538          2,538
Profit and loss account                       94            168            (45)
                                     -----------    -----------    -----------
Shareholders' funds                        5,314          5,475          5,175
equity
                                          ======         ======         ======






Summarised group cash flow statement

for the six months ended 30 June 2003

                                    Six months to   Six months to   Year ended
                                        30 June    30 June 2002
                                           2003     (Unaudited)    31 December
                          Notes     (Unaudited)                           2002
                                                                     (Audited)
                                          #'000           #'000          #'000

Net cash (outflow)/inflow
from operating
activities
                               5             80             (31)           158
Return on investment                         34              39             72
Taxation                                      -               -           (104)
Capital expenditure                         (13)            (26)           (47)
                                     ----------      ----------     ----------
Free cash flow                              101             (18)            79
Acquisitions and
disposals - 2001 deferred
consideration paid
                                              -            (225)          (225)
Equity dividends paid                      (114)           (104)          (104)
                                         ======          ======         ======
Cash outflow before
management of liquid
resources and financing
                                            (13)           (347)          (250)
                                         ======          ======         ======
Management of liquid                          -             250            250
resources and financing
Financing                                     -               -              -
                                     ----------      ----------     ----------
Net (decrease) in cash in                   (13)            (97)             -
the period
                                         ======          ======         ======






                          Notes to the interim report


 1. The interim financial statements for the six months ended 30 June 2003 have
    been prepared using accounting policies consistent with those set out in the
    annual report and accounts of Atlantic Global Plc for the year ended 31
    December 2002.


 2. The interim financial information for the six months ended 30 June 2003 is
    unaudited and does not constitute statutory accounts within the meaning of
    Section 240 of the Companies Act 1985. The information has been reviewed by
    the Company's auditors. 


 3. The tax charge for the period is based on the anticipated effective tax rate
    for the year to 31 December 2003.




4. Earnings per share

                                         Six months    Six months   Year ended
                                            ended         ended
                                          30 June       30 June    31 December
                                             2003          2002           2002
                                            #'000         #'000          #'000
Profit after tax                              139           134            131
Adjustments
- Goodwill amortisation                        91            91            181
- Exceptional costs                             -             -             45
                                       ----------    ----------     ----------
Adjusted profits                              230           225            357
                                           ======        ======         ======
                                           Number        Number         Number
                                              000           000            000
Weighted average number of shares in
issue
                                           22,747        21,806         22,281
Dilutive effect of maximum deferred
consideration shares
                                                -           233              -
Options and warrants                        1,976         1,277          1,298
                                       ----------    ----------     ----------
Diluted number of shares                   24,723        23,316         23,579
                                           ======        ======         ======
Basic earnings per share
(based on profit after tax)                  0.61p         0.61p          0.59p

Diluted earnings per share
(based on profit after tax)                  0.56p         0.57p          0.56p

Adjusted earnings per share
(based on adjusted profits)                  1.01p         1.03p          1.60p



5. Cash inflow from operating activities

                                        Six months     Six months   Year ended
                                          ending         ending
                                         30 June        30 June    31 December
                                            2003           2002           2002
                                     (Unaudited)    (Unaudited)      (Audited)
                                            #000           #000           #000
Operating profit before goodwill
amortisation and exceptional
costs
                                             288            284            390
Goodwill amortisation                        (91)           (91)          (181)
Exceptional costs                              -              -            (45)
                                      ----------     ----------     ----------
Operating profit                             197            193            164
Depreciation                                  15             14             29
Loss on disposal of fixed assets               -              -              6
Goodwill amortisation                         91             91            181
(Increase) in debtors                       (258)          (265)           (36)
Increase/(decrease) in creditors              35            (64)          (186)
                                      ----------     ----------     ----------
Net cash (outflow)/inflow from
operating activities
                                              80            (31)           158
                                          ======         ======         ======







6. The reported figures for the six months ended 30 June 2002 included an amount
in respect of shares to be issued which it was anticipated would become due
under the terms of the deferred consideration agreement. Due to the level of
performance in the second half of 2002 being lower than anticipated the criteria
for the payment of the deferred consideration were not met and the amounts were
reversed in the reported figures for the year ended 31 December 2002.




7. Copies of this interim report are being sent to all shareholders. Further
copies of this interim report and the Company's annual report to 31 December
2002 are available from:


Mr R Hutton, Finance Director & Company Secretary, Atlantic Global Plc, Maple
House, Woodland Park, Bradford Road, Chain Bar, Cleckheaton, BD19 6BW.


Website: www.atlantic-global.co.uk                  
email:info@Atlantic-ec.co.uk












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            The company news service from the London Stock Exchange

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