15th Jan 2008 07:01
Travelzest plc15 January 2008 Date: 15 January 2008 On behalf of: Travelzest plc ("Travelzest" or "the Group") Embargoed until: 0700 hrs Travelzest plcPreliminary results for the year to 31 October 2007 Travelzest, the online travel group offering specialist travel programmes, isdelighted to announce its preliminary results for the year to 31 October 2007. Financial highlights • Total transaction value increased 285% to £169.9 million (2006: £44.1 million)• Turnover increased 101% to £38.5 million (2006: £19.2 million)• Gross profit margin of £20.6 million increased to 53.5% of turnover (2006: £7.3 million, 37.8%)• EBITDA (before share based payments of £0.5 million, 2006: £0.2 million) of £4.3 million - 11.1% of turnover (2006: £0.8 million - 4.5% of turnover)• Underlying profit before tax, goodwill amortisation and share based payments increased 256% to £3.2 million (2006: £0.9 million)• Normalised* fully diluted earnings per share increased by 88% to 8.1 pence (2006: 4.3 pence) Operational highlights • Excellent performance from Canadian online retailer, itravel2000.com• Strong growth achieved in UK specialist tour operators• Acquisition of four UK specialist tour operators• Development of holiday.co.uk and flight.co.uk on track * Normalised fully diluted earnings per share is before goodwill amortisation(£1.9 million), post tax share based payments charge (£0.3 million) and includesthe income effect of conversion of options and warrants (£0.4 million). Commenting on the results, Chris Mottershead, Chief Executive said "I am delighted to be able to report another year of record operating profit.This result has exceeded Management's expectations at the start of the year. Wehave demonstrated the consistent delivery of the Group's objectives and Ibelieve we are well placed to capitalise on the continued growth of onlineleisure travel and specialist niche tour operations. We will continue with ourstrategy in 2008 and look forward to the coming year with confidence." Enquiries to: Travelzest plc 01442 874322Chris Mottersheadwww.travelzestplc.com Redleaf Communications 020 7822 0200Emma Kane / Samantha Robbins / Anna Dunkin CHAIRMAN'S STATEMENT The year to 31 October 2007 has been a very successful one for Travelzest. Wehave achieved record operating profits, acquired four more tour operators,integrated our Canadian business (bought in October 2006), and substantiallyimproved our operational efficiency. The management team has proven its abilityboth to improve the underlying operations of acquired businesses and attract newbusinesses which meet our strict acquisition criteria. With our currentportfolio of eight tour operators in growth niche sectors and three onlineagencies, Travelzest has built a solid platform for future growth in earnings. Results During the year we achieved our planned improvement in the operational resultsof the business and I am pleased to report another record performance. Totaltransaction value has grown 285% from £44.1 million to £169.9 million. Turnoverhas more than doubled from £19.2 million to £38.5 million, gross profit hasgrown 184% to £20.6 million and underlying profit for the year before tax,goodwill amortisation and the impact of FRS20 (Share based payments) hasincreased by 256% from £0.9 million to £3.2 million. Normalised dilutedearnings per share (adding back goodwill amortisation (£1.9 million), the impactof FRS20 (£0.3 million) and the income effect of conversion of share options andwarrants (£0.4 million)) increased by 88% from 4.3 to 8.1 pence. Another important landmark achieved during 2007 was that Travelzest generated anoperating profit in both the first half and the second half of the year, thanksto the balanced nature of our portfolio. This balance provides our businesswith great resilience as the Group is not dependant on any one market,destination or season for its profit and cash generation. The Group will continue to invest the cash generated from operations into itsfuture development and consequently no dividend is proposed. A description of the performance of the Group's operating companies is given inthe Chief Executive's Statement. Vision We remain committed to our original vision: To be a highly profitable, fastgrowing travel group for the modern market. We will offer travellers the bestavailable online travel retail experience and a range of outstanding specialistholiday experiences. Strategy Travelzest's strategic focus is on the two fastest growing sectors in the travelmarket; online agency and specialist experience based tour operations. We usethe experience of our management team to; firstly, identify and either developor acquire good opportunities in these sectors; and then secondly, to improvethe performance of each business added to the portfolio. Having acquiredbusinesses which meet our strict acquisition criteria, we aim to: • Rapidly improve the operations of each acquired company to prepare it for growth • Grow market share and margin for each company through superior marketing and distribution • Diversify the geographic and seasonal mix of profit streams • Exploit the potential synergy benefits between the portfolio companies • Maintain low, decentralised overhead costs Customer Trends: Travelzest is Focusing on Growth Sectors The travel market continues to evolve and change significantly, creatingexciting new opportunities for growth. The internet is one of the maincatalysts for change. At one end of the spectrum, it provides opportunities forbudget travellers to buy flights and accommodation directly from the suppliers,'dynamically packaged', to suit their needs. At the other end, it providesgreater opportunities for discerning travellers to find exactly the right travelor holiday experience to suit their preferences. Customers are already dependingon the internet to research their holidays, and increasingly using it to book.This is a major opportunity for Travelzest, where we have online agencybusinesses with potential to take an increasing share of this growth sector,both in the UK and Canada. Fundamental consumer tastes are also changing, with a growing preference fordiverse types of holiday experience such as cruising, activity holidays,adventures, nature and wild life and escorted tours. City, beach and traditionalpackages will all remain important, but the higher levels of growth will be inthe more specialist holiday sectors. These sectors also tend to attract lessprice-sensitive customers, prepared to pay a premium for a great holidayexperience. Holidays like this are also less likely to be 'unbundled' and areharder to copy. This is the second major opportunity area for Travelzest, wherewe have already acquired eight specialist tour operators across a variety ofexperience types and geographical locations. The growth in online booking,combined with the underlying growth of the holiday type, make the potential ofthese businesses very appealing. Portfolio approach increases upside and minimises downside Travelzest operates two business models; the agency business that relies onvolume and cross selling, and the specialist tour operator business thatdelivers high margin on smaller volumes. Our business model is also lower riskthan traditional tour operators, in that we have almost no fixed commitments forflights and beds. We have also diversified both the source and destinationmarkets, and have an excellent balance between winter and summer seasons. Best practice operations delivers growth in earnings Most of the value being created is achieved through improving operations andmarketing, enabling profitable growth. For the tour operating businesses thismay include changes to yield management, cost reduction, bringing more salesonline, extending the product range, search engine optimisation, or invigoratingmarketing and PR. Identifying good opportunities Travelzest will continue to acquire online agency businesses and niche touroperators. We are constantly assessing potential targets using a very strictset of criteria. For tour operators, these include the clarity of their marketproposition, online presence, and, most importantly, potential to grow. Foronline agencies, we are looking for great brands (itravel2000.com is one ofCanada's leading online travel retailers), unique attributes (e.g. holiday.co.ukis one of the top free listed websites for popular holiday search terms inGoogle), and scalability. Acquisitions The Group successfully acquired four businesses during the year - TapestryCollection (November 2006), Wow House Company (December 2006), Captivating Cuba(August 2007) and JMB Travel Consultants (September 2007). Overall, I am pleasedwith the way in which these acquisitions have performed. People The Travelzest concept was created by Chief Executive Chris Mottershead early in2005. He was formerly Managing Director of TUI UK, which included ThomsonHolidays and Lunn Poly, and is a leading travel industry expert with a provenrecord of delivery. Chris has again worked tirelessly this year, leading andbuilding the business. As the company has developed in line with his originalplan, Chris has decided to waive his right to any further issues of warrants inorder to avoid dilution for new investors. Chris, together with Finance Director Colin McKinlay and Distribution DirectorNishma Robb, have extensive experience of all aspects of this business. Corecapabilities that are fundamental to Travelzest's success include financialdiscipline, marketing strategy and execution, online distribution, and a trackrecord in the UK and Canada. Their reputations and relationships across theindustry are a key asset. While excellent senior leadership is essential to deliver a successful business,the enthusiasm, passion for great customer service and commitment of everyonewho works for us is equally important. I would like to thank everybody in theGroup for their continued hard work and dedication. Outlook Our ambition for 2007 was to acquire and start businesses that had the potentialto grow quickly under our ownership, as well as improving the businesses we hadalready acquired. I am pleased that we have done this successfully. Our specialist travel businesses predominantly serve older and more affluentcustomers who are less affected by economic uncertainty. The Group also offersholidays to a broad range of destinations, and is not reliant on a singledomestic market or season. Our largest business, itravel2000.com is based inCanada, which economically is currently enjoying prosperity and providesconsiderable potential. These factors, combined with the quality of provenManagement, let us look forward with confidence to 2008. Mark T J MolyneuxChairman CHIEF EXECUTIVE'S STATEMENT I am very pleased to report that Travelzest has exceeded the board's financialexpectations for the financial year and achieved the operational objectives itset itself at the beginning of the year. Consistent with our vision, strategyand priorities for 2007, these were; first, to improve the performance of theindividual businesses within the Group; second, to identify and acquire otherbusinesses with great potential for further growth in profit; and finally, toattract and recruit the very best travel professionals in the industry. It hasbeen a very busy year for everyone involved, and I would like to thank them allfor their tremendous effort. Continuing businesses - online and agency itravel2000.com The acquisition of itravel2000.com in October 2006 significantly changed thesize and shape of the Group, accounting for 33% of turnover in 2007. It is oneof the largest pure online retailers in Canada, with great potential to expandfrom its leading position in Ontario into other provinces. The Canadian marketis counter cyclical to the UK, and as a result the business generates themajority of its profits and cash in the winter period. During 2007 itsuccessfully introduced its own dynamic packaging system and another plannedarea of growth is to create a link to the specialist content provided by the UKtour operating businesses, expanding the accessibility of specialist holidays tothe Canadian market. I am particularly pleased with the performance of thisbusiness which surpassed its maximum earnout target in 2007 and is well placedto double its profits within a 3 to 5 year period. Fair's Fare Fair's Fare was established in 1995 and is one of the UK's leading firms ofairfare analysts, offering a unique travel planning service to both private andbusiness clients. The company seeks out the very best financial options,primarily for long-haul travellers, in the first and business class cabins ofthe world's leading airlines. Travelzest acquired the business in June 2006, andits founder, Ranjit Anand, has stayed with the business to develop further thepotential opportunity. Since then, the company has won several new contracts andcontinues to grow steadily. Holiday Express Holiday Express, which operates the websites holiday.co.uk and flight.co.uk, hasundergone a year of extensive re-development. The goal for holiday.co.uk is tobecome one of the leading online travel agencies in the UK. After a significantinvestment in building the team and introducing best-in-class technology on bothsites, they will be re-launched in early 2008. This best-in-class technologywill provide online customers an excellent search, dynamic packaging, andbooking experience, which, in turn, should dramatically improve the conversionrates on both sites. Robin Sutherland joined in April 2007 as ManagingDirector. He was formerly Director of Retail at Expedia.co.uk, and brought withhim invaluable experience to define and drive our continuing development of theholiday.co.uk and flight.co.uk portals. With the right technology andmanagement now in place, a marketing campaign is planned for 2008 to grow thebusiness. Continuing businesses - tour operations VFB Holidays VFB Holidays, the Group's founding business, provides a range of specialistholidays principally to France. The core revenue of the business hastraditionally been generated from the sale of French cottage holidays, but overthe last few years the range has been expanded to include five new types ofholiday, including new destinations and river cruises. This, along with otheroperational improvements, allowed the business to improve its profit frombreakeven in 2004 to another record year in 2007. This business is nowapproaching its £1 million operating profit target set at the inception of theTravelzest concept in 2005. Best of Morocco Best of Morocco specialises in high quality, tailor-made holidays to Morocco forindividuals or small groups. It is also the premier agent for the Marathon desSables, a foot race that takes place in the Sahara in April each year. Thecombination of these activities creates a sales cycle that generates profits inthe winter and summer months. Best of Morocco was acquired in November 2005 andfollowing the appointment of a new Managing Director has completed twosuccessful years generating an increase in sales over the period of almost 20%and an increase in operating profit of 40%. Peng Travel Peng Travel was formed in 1971 to arrange naturist holidays overseas for the UKmarket. Since then, it has grown to become Britain's biggest naturist touroperator and has unrivalled experience of its market. Operating in a veryspecialised and growing niche, it enjoys exceptional repeat business from itsloyal clientele. Since its acquisition by Travelzest in May 2006 a newmanagement team has been appointed and an improved online experience hasattracted a healthy growth in new customers. Faraway Holidays Faraway Holidays, a specialist in luxury tailor-made holidays and tours toVietnam, Cambodia, Bali and Thailand, was set up by Travelzest in August 2006.Since inception Faraway Holidays has achieved turnover in excess of £1.5million. Acquisitions During the year, Travelzest added four new businesses to the portfolio of UKspecialist tour operators. These were Tapestry Collection, Wow House Company,Captivating Cuba and JMB Travel Consultants. Tapestry Collection The Tapestry Collection provides through a knowledgeable and experienced team,high quality and bespoke programmes in Turkey, Crete and Cephalonia. Thebusiness has a very strong reputation in these markets and a loyal customerbase. It is performing well and I am particularly pleased to be able to reportthat the business has generated a small profit in its first nine months ofoperation. Wow House Company Wow House Limited, trading as Wow House Company, was acquired in December 2006.It was initially set up to capitalise on the growing popularity of rentinglarge, prestigious houses for corporate events and gatherings of families andfriends, either for short durations and special occasions or longer holidays.The current portfolio consists of 25 properties across England, Scotland andIreland. Captivating Cuba Captivating Cuba, an award-winning Cuba specialist, was acquired in August 2007.Each member of the sales team has a deep knowledge of Cuba, which they use toprovide detailed advice on planning a holiday in that country. With over 200properties across the Caribbean island, holidays can be tailor-made to meetcustomer's individual requirements and ensure they have the ideal experience.Escorted tours are also available. Although it currently sells holidays only tothe UK market, Canadians represent the largest number of visitors to Cuba andthere are strong synergies with Travelzest's Canadian business, itravel2000.com.We expect to see significant operational improvements in its first full year ofoperation under the Travelzest umbrella following the launch of its new websitein January 2008. JMB Travel Consultants JMB Travel is a leading UK specialist in opera holidays offering an extensiverange of destinations noted for their opera, classical music concerts and musicfestivals. Travelzest acquired the business in September 2007. It hasunrivalled experience in catering for the particular needs of the opera andmusic lover and has connections with every major opera house and music festivalin Europe and a small number in America. Existing management will stay with thebusiness and together with VFB will extend the offering to a wider audiencethrough the VFB customer database. Group performance The increase in total transaction value of 285% to £169.9 million from £44.1million is mainly attributed to our online agency businesses which have improvedfrom £28.5 million to £151.3 million due principally to the inclusion of a fullyear's trading of our Canadian business, itravel2000.com. The remaining increasein total transaction value of £2.9 million or 18% from £15.6 million to £18.5million relates to the impact of growth in the Group's specialist tour operatorsand acquisitions during the year. Turnover has more than doubled from £19.2 million to £38.5 million with anincrease of £16.4 million or 460% coming from the Group's online agencybusinesses. Our Canadian business generated 33% of the Group's turnover. I am also pleased to report that the gross profit percentage has increased to53.5% from 37.8% in the previous year. This again reflects the inclusion of afull year of itravel2000.com and further improvements in the margins in theGroup's tour operating companies. The number of passengers carried by the Group's tour operators and bookedthrough our online distribution channels, during the period these companies werepart of the Group, increased by over 180% to over 277,000. At the end of the financial year the Group employed 308 staff compared with 126staff at the end of the previous year. Financing During the year the Group issued 1.06 million new ordinary shares for cash at apremium of 143 pence to institutional and other investors, raising approximately£1.5 million. The proceeds were used to enable the Group to continue itsstrategy of the acquisition of specialist tour operators as the opportunitiesarose. In addition the Group repaid £250,000 of its £11 million debt facility inaccordance with the terms of the facility. International Financial Reporting Standards ("IFRS") As an AIM listed business Travelzest will report under IFRS in the financialyear ending 31 October 2008 with comparative information. A detailed review hasbeen undertaken in planning for the adoption of IFRS. In 2007 the Group'sresults include for the first time the effect of FRS 20 Share based payments. Infuture years the adoption of FRS20 will introduce volatility to the Group'sreported operating profit. The normalised result before share based paymentswill be unaffected by the adoption of FRS20. The application of IFRS will result in a number of changes in accounting policymost notably: IFRS 3 "Business Combinations" prohibits the amortisation of goodwill butrequires an annual test of impairment. IAS 38 "Intangible Assets" requires that expenditure on advertising andpromotions is written off as incurred and computer software, not an integralpart of the related hardware, be treated as an intangible asset. IAS 39 "Financial Instruments" requires derivative instruments to be carried attheir fair values on the balance sheet. The forthcoming changes from the adoption of IFRS in the year ending 31 October2008 are accounting changes only and do not affect the underlying operations orcash flows of the Group. The Group will present its interim results for the six months to 30 April 2008in accordance with IFRS and further information explaining the financial impactof transition to IFRS will be presented in due course. Summary After two years of acquiring, and improving eleven businesses, our 2007 resultsdemonstrate the value of our strategy. Travelzest now has three online travelagencies which have the potential to grow substantially. We have a rapidlygrowing and profitable Canadian business. We also have a portfolio ofprofitable, high growth, specialist tour operators. Our priorities for 2008 are clear; firstly, to complete the introduction ofleading technology in our online businesses to generate strong growth; secondly,to continue to improve operations of our specialist tour operators; and thirdly,to acquire further brands in Europe and North America that fit our strategy andstrict selection criteria. We look forward to the coming year with confidence. Chris MottersheadChief Executive Consolidated profit and loss account Years ended 31 October 2007 2006 Unaudited Restated Note £000's £000's Total transaction value 2Continuing operations 167,569 26,147 - Acquisitions 2,284 17,936 ---------- ---------- 169,853 44,083Group turnover 2Continuing operations 36,183 13,840 - Acquisitions 2,284 5,349 ---------- ---------- 38,467 19,189 Cost of sales (17,903) (11,937) ---------- ----------Gross profit 20,564 7,252 Administrative expenses (19,113) (7,214) Operating profit/(loss) Continuing operations 1,936 (893) - Acquisitions (485) 931 ---------- ---------- 3 1,451 38 Net interest (payable) / receivable (577) 152 ---------- ----------Profit on ordinary activities before taxation 874 190 Tax on profit on ordinary activities 4 (1,000) (233) ---------- ----------Loss for the financial year (126) (43) ========== ========== Loss per share 5Basic (0.52)p (0.42)pDiluted - - ========== ========== Consolidated balance sheet 31 October 31 October 2007 2006 Unaudited Restated £000's £000'sFixed assetsIntangible fixed assets 36,871 36,106Tangible assets 2,735 2,016 ---------- ---------- 39,606 38,122Current assetsStock 2 2Debtors 7,921 3,496Cash at bank and in hand 10,480 10,989 ---------- ---------- 18,403 14,487Creditors: amounts falling due within one year (13,453) (8,377) ---------- ----------Net current assets 4,950 6,110 ---------- ---------- Total assets less current liabilities 44,556 44,232 Creditors: amounts falling due after more than (14,836) (18,198)one year Provisions for liabilities and chargesDeferred taxation (223) (250) ---------- ---------- 29,497 25,784 ========== ========== Capital and reservesCalled-up equity share capital 350 313Share premium account 14,233 11,632Exchangeable shares 10,365 10,003Merger reserve 2,320 2,320Profit and loss account 2,229 1,516 ---------- ----------Shareholders' funds 29,497 25,784 ========== ========== Consolidated cash flow statementYears ended 31 October 2007 2006 Unaudited Note £000's £000's Net cash inflow from operating activities 6 2,825 1,520 ---------- ----------Returns on investments and servicing of financeInterest received 382 217Interest paid (959) (65) ---------- ----------Net cash (outflow)/inflow from returns on investments and servicing of finance (577) 152 Taxation (236) (323) Capital expenditurePurchases of tangible fixed assets (1,069) (409) ---------- ----------Net cash (outflow) from capital expenditure (1,069) (409) AcquisitionsPurchase of subsidiary companies (3,604) (16,730)Net cash acquired with subsidiary 865 2,998 ---------- ---------- Net cash (outflow) for acquisitions (2,739) (13,732) ---------- ----------Cash (outflow) before financing (1,796) (12,792) FinancingIssue of equity share capital 1,537 7,317Loans (250) 10,741 ---------- ----------Net cash inflow from financing 1,287 18,058 ---------- ----------(Decrease)/increase in cash 6 (509) 5,266 ========== ========== Statement of total recognised gains and losses 31 October 31 October 2007 2006 Unaudited Restated £000's £000's Loss for the financial year (126) (43)Exchange difference arising on consolidation 358 42 ---------- ----------Total gains and losses recognised in the period 232 (1) Prior year adjustment (150) - ---------- ----------Total gains and losses recognised since the last financial statements 82 (1) ========== ========== Notes 1 Basis of preparation The preliminary financial statements have been prepared in accordance withapplicable United Kingdom accounting standards and under the historical costconvention. The principal accounting policies of the Group have remainedunchanged from those set out in the Group's 2006 annual report and financialstatements, except for the introduction of FRS 20 (Share based payments) whichhas resulted in the 2006 result being reduced by £150,000. 2 Segmental and geographical Total transaction value represents the gross value of business carried out bythe Group during the year and is derived as follows: Total transaction value 31 October 31 October 2007 2006 £000's £000's Tour operations 18,518 15,631Travel agency: Direct sales 127 349 Agency sales 151,208 28,103 ---------- ---------- 169,853 44,083 ========== ========== Turnover 31 October 31 October 2007 2006 £000's £000's Tour operations 18,518 15,631Travel agency: Direct sales 127 349 Agency sales 19,822 3,209 ---------- ---------- 38,467 19,189 ========== ========== The turnover and net assets employed were attributable to the principalactivities of the Group, which originate in: 31 October 2007 31 October 2006 Turnover Net assets Turnover Net assets Restated £000's £000's £000's £000's United Kingdom 25,901 16,397 18,658 24,650Canada 12,566 13,100 531 1,134 ---------- ---------- ---------- ---------- 38,467 29,497 19,189 25,784 ========== ========== ========== ========== 3 Operating profit Operating profit is stated after charging/(crediting): 31 October 31 October 2007 2006 £000's £000's Amortisation of goodwill 1,883 459Depreciation of owned fixed assets 547 147(Profit)/Loss on disposal of fixed assets (2) 1Auditors' remuneration - group: Audit fees 130 74 Taxation 19 12Auditors' remuneration - company: Audit fees 18 5 Taxation 3 2Net loss on foreign currency translation 58 4Operating lease costs: Office equipment - 44 Vehicles 26 14 Property 100 189 ---------- ---------- 4 Tax on profit on ordinary activities Analysis of the charge for the year 31 October 31 October 2007 2006 Restated £000's £000'sCurrent tax:UK corporation tax based on the results for the year at 30% (2006 - 30%) 149 185Overseas taxation 1,178 69(Over)/Under provision in prior year (300) 27 ---------- ----------Total current tax 1,027 281 Deferred tax:Origination and reversal of timing differences (27) (48) ---------- ----------Tax on profit on ordinary activities 1,000 233 ========== ========== 5 Loss per share Basic earnings per share is based on an equity loss of £126,000 (2006 - loss of£43,000 (restated)) and 24,231,242 (2006 - 10,282,082) shares of 2p, being theaverage number of shares in issue during the year, including exchangeableshares. The diluted earnings per share is based on average fully diluted share capitalof shares of 30,626,763 (2006 - 13,312,212 shares) derived below. Average numberIssued ordinary shares and exchangeable 24,231,242sharesShare options 1,149,075Warrants 5,246,446 --------------- 30,626,763 =============== The normalised pre share based payments earnings per share of 8.1p is based onand equity loss of £126,000, adding back amortisation of goodwill (£1,883,000),post tax share based payments (£343,000) and the income effect of conversion ofshare options and warrants (£400,000). 6 Notes to the statement of cash flows Reconciliation of operating profit to net cash inflow from operating activities 31 October 31 October 2007 2006 Restated £000's £000's Operating profit 1,451 38Amortisation 1,883 459Depreciation 547 147(Profit)/loss on disposal of fixed assets (2) 1(Increase)/decrease in stock (1) 1Decrease in debtors (3,141) (571)Share based payments 481 214Increase in creditors 1,607 1,231 ---------- ----------Net cash inflow from operating activities 2,825 1,520 ========== ========== Reconciliation of net cash flow to movement in net funds 31 October 31 October 2007 2006 £000's £000's (Decrease)/increase in cash in the period (509) 5,266Movement in bank loan 250 (10,741)Exchange adjustment (119) ---------- ----------Change in net funds (378) (5,475) Net funds at 1 November 2006 248 5,723 ---------- ----------Net debt at 31 October 2007 (130) 248 ========== ========== Analysis of changes in net funds At Exchange At 1 Nov 2006 Adjustment Cash flows 31 Oct 2007 £000's £000's £000's £000'sNet cash:Cash in hand and at bank 10,989 - (509) 10,480Bank loan (10,741) (119) 250 (10,610) ---------- ---------- ---------- ----------Net funds 248 (119) (259) (130) ========== ========== ========== ========== 7 Publication of non statutory accounts The financial information set out in this preliminary announcement does notconstitute the Group's statutory accounts for the years ended 31 October 2006 or2007. The financial information for the year ended 31 October 2006, as restated,is derived from the statutory accounts for that year which have been deliveredto the Registrar of Companies. The auditors reported on those accounts; theirreport was unqualified and did not contain a statement under s.237(2) or (3)Companies Act 1985. The statutory accounts for the year ended 31 October 2007will be finalised on the basis of the information presented by the directors inthis preliminary announcement and will be delivered to the Registrar ofCompanies. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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