Interim Results
31 Agosto 2004 - 2:03AM
UK Regulatory
RNS Number:4190C
CES Software PLC
31 August 2004
CES SOFTWARE PLC
("The Group")
Unaudited Interim results of CES Software Plc for the six months ended June 30,
2004.
The first 6 months of 2004 have seen major developments in the Group's business.
Since the beginning of the year, management has expended considerable effort in
establishing a European betting exchange with BETandWIN Interactive
Entertainment AG, a leading interactive bookmaker in Europe. While initial
progress in setting up the exchange has been slower than anticipated,
preparations are now for a launch of the exchange towards the end of 2004.
Additionally, the Group has continued to work at developing relationships with
new potential licensees and will continue to seek to establish relationships
with strong regional gaming operators going forward.
The Group believes that the sophistication of its exchange technology is a
critical competitive strength. To this end, the Group has devoted development
time and expense towards developing new functionality and enhancing the
performance of its application. The Group's losses in the first half of 2004
reflect its commitment to this expenditure.
The Group has completed a substantial acquisition which greatly broadens its
product offering in the person-to-person gaming market and its revenue base. On
July 30, the Group closed on its purchase of the SkillJam business,
(www.skilljam.com), a leading provider of diversified fee-based skill gaming
solutions. SkillJam's gaming offerings include pay-per-play and
subscription-based gaming products such as skill-based online games and
downloadable deluxe games which provide multiple revenue models for the business
and its network of premier affiliate distribution partners. Going forward, the
consolidation of SkillJam in the Group will introduce a significant, new revenue
stream from the regulated North American marketplace.
The Board believes that the person-to-person skill gaming and exchange betting
businesses are complementary to one another, and closely aligned, and that by
expanding its range of person-to-person product offerings, the group is better
positioned to capitalise on the significant potential of the person-to-person
gaming market.
In the remainder of 2004 and beyond, the group will continue to focus on its
core strategy of delivering the best person-to-person gaming experience to end
users in regulated markets.
Andrew Rivkin
Chairman
CES SOFTWARE PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED
30 JUNE 2004
Six months ended Six months ended Year to
Note 30 June 2004 30 June 2003 31 December 2003
(Unaudited) (Unaudited) (Audited)
#000 #000 #000
Group and
share of joint
venture
revenues 12 - -
Less: share of
joint venture
revenue (12) - -
--------- --------- ---------
Group
revenue - - -
Administrative
expenses (769) (227) (742)
--------- --------- ---------
Group
operating loss (769) (227) (742)
Share of
operating
profit and
loss in joint
venture 8 - (2)
--------- --- --------- ---------
Loss on
ordinary
activities
before
interest and
other income (761) (227) (744)
Interest
receivable and
similar income 55 1 4
--------- --- --------- --- ---------
Loss on
ordinary
activities
before
taxation (706) (226) (740)
Taxation on
loss on
ordinary
activities - - -
Loss on
ordinary
activities
after taxation
and
loss for the
financial
period (706) (226) (740)
Appropriations
(non-equity) - (18) (35)
--------- --------- ---------
Retained loss
for the period (706) (244) (775)
--------- --------- ---------
Basic Loss per
share (in
pence) 2 (3.6) (2.3) (7.0)
The results disclosed in the consolidated profit and loss accounts are on
historical cost basis.
All of the above results are from continuing operations.
CES SOFTWARE PLC
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2004
31 December
30 June 2004 30 June 2003 2003
(Unaudited) (Unaudited) (Audited)
#000 #000 #000
Fixed Assets
Intangible assets 36 68 51
Tangible assets 130 18 19
Investment in joint
ventures:
Share of gross 104 - 20
assets
Share of gross
liabilities (46) - (21)
58 - (1)
224 86 69
Current Assets
Debtors 200 90 280
Cash at bank and in
hand 2,514 149 3,437
2,714 239 3,717
Creditors:
Amounts falling due
within one year (141) (109) (273)
Net Current Assets 2,573 130 3,444
Total Assets less Current
Liabilities and
Net Assets 2,797 216 3,513
Capital and
Reserves
Called up share
capital 978 742 978
Share premium
account 3,345 134 3,345
Other reserve (298) - (298)
Capital redemption
reserve 664 - 664
Profit and loss
account (1,892) (660) (1,176)
Shareholders' Funds
- equity 2,797 216 3,513
CES SOFTWARE PLC
CONSOLIDATED CASHFLOW STATEMENT
FOR THE SIX MONTHS
ENDED 30 JUNE 2004
Six months ended Six months ended Year to
Note 30 June 2004 30 June 2003 31 December 2003
(Unaudited) (Unaudited) (Audited)
#000 #000 #000
Consolidated
cash flow
statement
Net cash
outflow from
operating
activities 3 (789) (215) (732)
Returns on
investments
and servicing
of finance 55 1 4
Capital
expenditure
and financial
investment (128) (9) (17)
Acquisitions
and disposals (58) - -
--------- --------- ---------
Cash outflow before
management of liquid
resources
and
financing (920) (223) (745)
Management of
liquid
resources - 229 350
Financing - - 3,813
--------- --------- ---------
Increase/(Decr
ease) in cash
in the period (920) 6 3,418
--------- --------- ---------
Six months ended Six months ended Year to
30 June 2004 30 June 2003 31 December 2003
(Unaudited) (Unaudited) (Audited)
#000 #000 #000
Reconciliation
of net cash
flow to
movement
net funds
Increase/(decr
ease) in cash
in the period (920) 6 3,418
Cash inflow
from decrease
in liquid
resources - (229) (350)
Translation
differences
and other
non-cash
movements (3) (3) (6)
--------- --------- ---------
Movement in
net funds in
the period (923) (226) 3,062
Net funds at
the start of
the period 3,437 375 375
--------- --------- ---------
Net funds at
the end of the
period 2,514 149 3,437
--------- --------- ---------
CES SOFTWARE PLC
STATEMENT OF TOTAL CONSOLIDATED RECOGNISED GAINS AND LOSSES
FOR THE SIX MONTHS ENDED
30 JUNE 2004
Six months ended Six months ended Year to
30 June 2004 30 June 2003 31 December 2003
(Unaudited) (Unaudited) (Audited)
#000 #000 #000
Statement of total
consolidated
recognised
gains and losses
Loss for the
financial
period:
Group (714) (227) (738)
Joint Ventures 8 - (2)
--------- --------- ---------
(706) (227) (740)
Foreign
exchange
differences (10) (3) (6)
--------- --------- ---------
Total
consolidated
recognised
gains
and losses (716) (230) (746)
--------- --------- ---------
Six months ended Six months ended Year to
30 June 2004 30 June 2003 31 December 2003
(Unaudited) (Unaudited) (Audited)
#000 #000 #000
Reconciliation
of movements in
shareholders'
funds
Loss for the
financial
period (706) (227) (740)
Appropriations - (18) (35)
--------- --------- ---------
Retained loss
for
the financial
period (706) (245) (775)
Reversal of
financing charge
on preference
shares - 18 35
New share
capital
subscribed net
of issue costs - - 3,813
Foreign
exchange
differences (10) (3) (6)
--------- --------- ---------
Net
(decrease)/
increase in
shareholders'
funds (716) (230) 3,067
Opening
shareholders'
funds 3,513 446 446
--------- --------- ---------
Closing
shareholders'
funds 2,797 216 3,513
--------- --------- ---------
CES SOFTWARE PLC
NOTES TO THE UNAUDITED
FINANCIAL STATEMENTS
FOR THE SIX MONTHS
ENDED 30 JUNE 2004
1 Basis of preparation
This interim financial information has been prepared on the basis of the
accounting policies set out in the Group's Annual Report and Accounts for
the year ended 31 December 2003.
The financial information contained in this interim report does not
constitute statutory accounts as defined in section 240 of the Companies
Act 1985. The figures for the year ended 31 December 2003 are extracted
from the statutory accounts of CES Software plc for that year. The
statutory accounts for that year have been reported on by the company's
auditors and delivered to the Registrar of Companies. The report of the
auditors, KPMG Audit Plc, was unqualified and did not contain a statement
under Section 237 (2) or (3) of the Companies Act 1985.
2 Loss per share
Six months ended Six months ended Year to
30 June 2004 30 June 2003 31 December 2003
(Unaudited) (Unaudited) (Audited)
Weighted average
numbers of shares
in issue ('000s) 19,554 10,425 11,140
Loss after tax
and preference
dividends (#000s) (706) (244) (775)
Loss per share
(in pence) :
Basic (3.6) (2.3) (7.0)
Diluted loss per share has not been presented as including all potential
ordinary shares in the calculation would be anti-dilutive.
3 RECONCILIATION OF OPERATING LOSS TO
OPERATING CASH FLOWS
Six months ended Six months ended Year to
30 June 2004 30 June 2003 31 December 2003
(Unaudited) (Unaudited) (Audited)
#000 #000 #000
Group operating
loss (769) (227) (742)
Amortisation of
intangibles 15 17 34
Depreciation 17 3 8
Decrease/
(increase) in
debtors 80 (76) (265)
(Decrease)/
increae in
creditors (132) 68 233
---------- ---------- -----------
Net cash outflow
from operating
activities (789) (215) (732)
---------- ---------- -----------
4 Post balance sheet events
4.1 SkillJam Acquisition
On 2 July 2004 the Company announced having entered into an agreement to
acquire the business of SKillJam, a person-to-person skill
gaming business, from eUniverse. The acquisition was closed on 29 July
2004, upon the passing of certain resolutions at the Company's
Annual and Extraordinary General Meetings. The SkillJam business was
acquired for US$ 8 million (approximately #4.34 million), plus
a share of revenues from future European operations on a declining scale
over 5 years. Based in Los Angeles, CA, USA, SkillJam is
the Internet's leading provider of diversified fee-based gaming
solutions.
4.2 Related financing
The acquisition was financed through a placement of 4,320,000 special
warrants and 80,000 ordinary shares. The special warrants
will convert into ordinary shares upon conditional approval for listing of
the Company's shares on the TSX (Toronto Stock Exchange).
4.3 EBEX
Since the balance sheet date of 30 June 2004, the Company has (together
with joint venture partner BETandWIN Interactive Entertainment
AG) completed its investment in The European Betting Exchange, totalling
#420,000 for a mix of ordinary shares and loan notes
convertible into ordinary shares. While initial progress in setting up the
exchange has been slower than anticipated, preparations are now
for a launch of the exchange towards the end of 2004.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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