30th Jun 2006 07:00
30 June 2006 THEMUTUAL.NET PLC (the "Company") PRELIMINARY RESULTS themutual.net announces Preliminary Results for the year ended 30 April 2006.Highlights: * Turnover trebles from ‚£3m to ‚£9m * Operating Profit before tax more than double, from ‚£733,000 to ‚£1.70m * Exceptional Profit on sale of investment of ‚£439,000 * After tax profits more than trebles from ‚£489,000 to ‚£1.54m * Earnings per share nearly trebled, from 1.2p to 3.5p * Cash in Bank ‚£1.2m having spent ‚£2.5m on acquisitions Mark Smith, CEO said: "TMN's strong performance supports the fact that onlinespend is growing rapidly but more importantly that we've adopted the rightstrategy to capitalise on this growth. The success of our recent acquisitions,integration and the recruitment of senior personnel have put us in the bestposition to take advantage of the interest in marketing, research and retailonline. With a significant investment in marketing our products, a client listwhich includes some of the most well-known brands in the UK and a strategicfocus on increasing our products and services, we look forward to the futurewith confidence."Contacts:themutual.net plc Tel: 020 7440 9310Mark Smith, Chief ExecutivePeter Coveney, Finance DirectorNotes to editors:themutual.net plc specialises in online marketing. With access to millions ofconsumers, it helps many of the UK's leading brands take advantage of the web'stransparency and cost-effectiveness to conduct marketing and research online.Its 500+ clients include a number of agencies and direct clients such as DennisPublishing, MBNA, ASDA, Reuters, Microsoft, Dell, Dixons, Morgan Stanley,Nestle and EMAP.themutual.net plc's divisions are leaders in their fields and include: * TMN Media which owns and manages some of the largest databases of email addresses in the UK and operates the UK's most popular rewarded shopping portal, * EDR, the UK's primary dedicated email advertising agency, * iD Factor which provides market research companies with online fieldwork solutions, and * Enterprise & IT which conceives and develops innovative commercial products and solutions and exploits synergies across the group's databases and technology platforms Listed on AIM since 2000 and based in central London, TMN's turnover forfinancial year ending April 30, 2006 was over ‚£9 million and is forecast toreach ‚£16m by Broker Investec in financial year 2006-7.www.tmnplc.comFor further information or images, please contact Nik Pollinger at Wide PR:[email protected] 010 9998CHAIRMAN'S STATEMENTResults for the year ended 30 April 2006I am delighted to announce the Group Results for the year ending 30th April2006, showing substantial growth in turnover and profits following theacquisition of Electronic Direct Response (EDR)in November and iD Factor inDecember 2005.Highlights:- Turnover trebles from ‚£3m to ‚£9m- Operating Profit before tax more than double, from ‚£733,000 to ‚£1.70m- Exceptional Profit on sale of investment of ‚£439,000- After tax profits more than trebles from ‚£489,000 to ‚£1.54m- Earnings per share nearly trebled, from 1.2p to 3.5p- Cash in Bank ‚£1.2m having spent ‚£2.5m on acquisitionsThe comparative results are as follows:-Profit and loss Year ended Year ended account 30/4/06 30/4/05 Increase ‚£'000 ‚£'000 Turnover 9,012 3,079 +193% Gross profit 5,072 2,733 +86% Gross profit % 56.3% 88.7% Operating profit 1,703 733 +132% Earnings per share 3.50p 1.21p +189% Earnings per share - 3.26p 1.13p +188%Diluted Balance Sheet 30/4/06 30/4/05 ‚£'000 ‚£'000 Cash at bank 1,221 1,555 Net current 973 1,772assets Shareholders' 5,810 2,100funds The integration of our two acquisitions has been implemented smoothly and, ascan be seen, with excellent results. To take account of the numerous synergies,we have now restructured the group into three distinct divisions, eachoperating in a fast growing segment of the online marketing sector:TMN Media houses the historic business along with a number of databases andwebsite services from the EDR acquisition. Over 8 million email addresses areowned or managed for our many media partners. The underlying revenue growth forthe original TMN business was 33% with our rewarded shopping portal growing by41%.EDR is now focused on being an advertising agency for the online directmarketing sector, notably in email, and showed substantial growth during the 6months of trading following acquisition, with revenues double that of theprevious 6 months.iD Factor operates in the fast growing online market research area, anddisplayed its potential in the 4 months following acquisition. In March andApril, it made a cumulative profit of over ‚£50,000, a complete turnaround fromits previous trading history.Online advertising spend continues to grow at pace, now representing over 8% ofall advertising spend, and this growth is expected to continue into the future.We are in the key areas of online growth - advertising, online retail spend andonline market research - and we feel that we are well positioned to takeadvantage of the substantial interest in all of these sectors.Our ongoing strategy is to invest in the Company, targeting similar growth inthe forthcoming year. We have recruited a number of senior personnel to furtherstrengthen our position, and we will be making further investment in marketingour products, including our original rewarded shopping engines.For the reasons outlined above and taking into account that our twoacquisitions only contributed for part of the year, we look forward to thefuture with confidence.At our last AGM we received shareholder approval to buy back up to 10% of ourshares. We spent ‚£200,000 during the year buying back 350,000 shares, and wewill be seeking shareholder approval to renew this authority at the next AGM aswe believe this is a satisfactory way of rewarding our many thousands of smallshareholders. Also at the next AGM we will be seeking shareholder approval toalter our name to TMN Group plc from themutual.net plc. This we believe is morerepresentative of a Company which is operating over numerous areas of onlinemarketing.The Board has reluctantly accepted the resignation of its non-executivedirector Ben Heaton, one of the founders of the Company. Since Ben has movedabroad and is studying to become a Doctor, his time and visits to the UK arelimited and we understand his request to stand down. Our thanks to him for allhis inspiration and dedication to the Company and we hope that he may find thetime to be involved with us in the future. We have also announced theresignation of James Morris, who joined the board with the acquisition of EDR.He is planning to follow other business interests in the UK and abroad and wewish him well also.It only remains to thank our staff for their dedication and enthusiasm and ourgrowing list of supportive shareholders, including those who have takenadvantage of earning shares under our reward system.Warren TaylerChairmanGROUP PROFIT AND LOSS ACCOUNTYEAR ENDED 30 APRIL 2006 2006 2005 Continuing Total Total operations Acquisitions Note ‚£ ‚£ ‚£ ‚£ Turnover 4,105,192 4,906,780 9,011,972 3,079,352 Cost of sales 768,259 3,171,435 3,939,694 346,847 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ GROSS PROFIT 3,336,933 1,735,345 5,072,278 2,732,505 Net operating expenses 2 2,269,957 1,099,447 3,369,404 1,999,554 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ OPERATING PROFIT 3 1,066,976 635,898 1,702,874 732,951Profit on disposal of 439,587 439,587 -trading investment ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ PROFIT ON ORDINARY 1,506,563 635,898 2,142,461 732,951ACTIVITIES BEFORE INTEREST ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Interest receivable 53,659 45,214 Interest payable and similar charges 6 (2,185) - ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ PROFIT ON ORDINARY 2,193,935 778,165ACTIVITIES BEFORE TAXATION Tax on profit on ordinary activities 7 657,346 288,780 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬ PROFIT FOR THE FINANCIAL YEAR 9 1,536,589 489,385 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Earnings per share (pence)Basic 10 3.50 1.21 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢Diluted 10 3.26 1.13 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢ The group has no recognised gains or losses other than the results for the year as set out above. All of the activities of the group are classed as continuing. The company has taken advantage of section 230 of the Companies Act 1985 not to publish its own Group Profit and Loss Account. GROUP BALANCE SHEET30 APRIL 2006 2006 2005 Note ‚£ ‚£ ‚£ ‚£FIXED ASSETSIntangible assets 11 9,475,999 456,093 Tangible assets 12 97,134 68,001 Investments 13 - 121,363 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 9,573,133 645,457CURRENT ASSETSDebtors 14 3,341,732 760,229 Cash at bank 1,221,485 1,554,764 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 4,563,217 2,314,993 CREDITORS: Amounts falling 15 3,589,881 542,547 due within one year ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ NET CURRENT ASSETS 973,336 1,772,446 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ TOTAL ASSETS LESS CURRENT LIABILITIES 10,546,469 2,417,903CREDITORS: Amounts falling 16 4,349,706 -due after more than one year ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 6,196,763 2,417,903PROVISIONS FOR LIABILITIESOther provisions 17 387,169 318,000 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 5,809,594 2,099,903 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢CAPITAL AND RESERVESCalled-up share capital 21 104,806 104,003 Share premium account 22 4,702,265 2,330,501 Other reserves 22 120,499 120,464 Profit and loss account 22 882,024 (455,065) ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ SHAREHOLDERS' FUNDS 23 5,809,594 2,099,903 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢These financial statements were approved by the directors on the 29 June 2006and are signed on their behalf by:M D Smith P N CoveneyGROUP CASH FLOWYEAR ENDED 30 APRIL 2006 2006 2005 ‚£ ‚£ ‚£ ‚£NET CASH INFLOW FROM OPERATING 1,951,910 1,267,475ACTIVITIES RETURNS ON INVESTMENTS ANDSERVICING OF FINANCEInterest received 53,659 45,214 Interest paid (2,185) - ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ NET CASH INFLOW FROM RETURNS ON 51,474 45,214INVESTMENTS AND SERVICING OF FINANCE TAXATION (511,857) -CAPITAL EXPENDITURE AND FINANCIAL INVESTMENTPayments to acquire intangible (431,055) (334,721) fixed assets Payments to acquire tangible (50,769) (34,255) fixed assets Acquisition of investments - (121,363) Disposal of investments 560,950 - ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ NET CASH INFLOW/(OUTFLOW) FOR 79,126 (490,339)CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT ACQUISITIONS AND DISPOSALSCosts of acquiring subsidiaries (137,689) - Cash paid to acquire subsidiaries (9,011,569) - Net cash acquired with subsidiary 469,949 - ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ NET CASH OUTFLOW FROM (8,679,309) -ACQUISITIONS AND DISPOSALS ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ CASH (OUTFLOW)/INFLOW BEFORE (7,108,656) 822,350FINANCING FINANCINGIssue of equity share capital 838 52 Share premium on issue of equity 2,371,764 - share capital Purchase of own equity shares (35) (91) Premium on purchase of own equity (199,465) (186,910) shares Net inflow from other long-term 4,602,235 - creditors ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ NET CASH INFLOW/(OUTFLOW) FROM 6,775,337 (186,949)FINANCING ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ (DECREASE)/INCREASE IN CASH (333,319) 635,401 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROMOPERATING ACTIVITIES 2006 2005 ‚£ ‚£Operating profit 1,702,874 732,951 Amortisation 504,627 596,442 Depreciation 72,945 44,089 Increase in debtors (966,867) (70,236) Increase/(decrease) in creditors 569,162 (95,825) Increase in provisions 69,169 60,054 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Net cash inflow from operating activities 1,951,910 1,267,475 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT 2006 2005 ‚£ ‚£ ‚£ ‚£(Decrease)/increase in cash in (333,319) 635,401 the period Net cash (inflow) from other (4,602,235) - long-term creditors ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Change in net debt resulting from (4,935,554) 635,401cash flows Net funds at 1 May 2005 1,554,764 919,363 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Net debt at 30 April 2006 (3,380,790) 1,554,764 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ANALYSIS OF CHANGES IN NET DEBT At 1 May Cash flows Other At 30 Apr 2005 changes 2006 ‚£ ‚£ ‚£ ‚£Net cash:Cash in hand and at bank 1,554,764 (333,279) - 1,221,485 Overdrafts - (40) - (40) ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 1,554,764 (333,319) - 1,221,445 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Debt:Debt due within 1 year - (252,529) - (252,529) Debt due after 1 year - (4,349,706) - (4,349,706) ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ - (4,602,235) - (4,602,235) ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Net debt 1,554,764 (4,935,554) - (3,380,790) ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ NOTES TO THE FINANCIAL STATEMENTSYEAR ENDED 30 APRIL 20061. ACCOUNTING POLICIESBasis of accountingThe financial statements have been prepared under the historical costconvention, modified to include the revaluation of financial instruments, andin accordance with applicable accounting standards.Basis of consolidationThe consolidated financial statements incorporate the results of the companyand all of its subsidiary undertakings up to 30 April 2006. Unless otherwisestated, the acquisition method of accounting has been adopted. Under thismethod, the results of the subsidiary undertakings acquired in the year areincluded in the consolidated profit and loss account from the date ofacquisition.The group financial statements consolidate the financial statements ofthemutual.net plc and its subsidiary undertakings. As permitted by Section 230of the Companies Act 1985, a separate profit and loss account is not presentedin respect of the Company.TurnoverTurnover represents the value of services provided during the year net of valueadded tax.GoodwillGoodwill is written off over 20 years, being the period over which profits areexpected to be generated.AmortisationAmortisation is calculated so as to write off the cost of an asset, less itsestimated residual value, over the useful economic life of that asset asfollows:Database - 2 to 4 years straight lineIntangible fixed assetsIntangible fixed assets represent various databases which are used within theinternet based marketing of the business.DepreciationDepreciation is calculated so as to write off the cost of an asset, less itsestimated residual value, over the useful economic life of that asset asfollows:Fixtures and fittings - 30 months straight lineOperating lease agreementsRentals applicable to operating leases where substantially all of the benefitsand risks of ownership remain with the lessor are charged against profits on astraight line basis over the period of the lease.Pension costsThe company operates a defined contribution pension scheme for employees. Theassets of the scheme are held separately from those of the company. The annualcontributions payable are charged to the group profit and loss account.Deferred taxationDeferred tax is recognised in respect of all timing differences that haveoriginated but not reversed at the balance sheet date where transactions orevents have occurred at that date that will result in an obligation to paymore, or a right to pay less or to receive more tax, with the followingexceptions:Provision is made for tax on gains arising from the revaluation (and similarfair value adjustments) of fixed assets, and gains on disposal of fixed assetsthat have been rolled over into replacement assets, only to the extent that, atthe balance sheet date, there is a binding agreement to dispose of the assetsconcerned. However, no provision is made where, on the basis of all availableevidence at the balance sheet date, it is more likely than not that the taxablegain will be rolled over into replacement assets and charged to tax only wherethe replacement assets are sold.Deferred tax assets are recognised only to the extent that the directorsconsider that it is more likely than not that there will be suitable taxableprofits from which the future reversal of the underlying timing differences canbe deducted.Deferred tax is measured on an undiscounted basis at the tax rates that areexpected to apply in the periods in which timing differences reverse, based ontax rates and laws enacted or substantively enacted at the balance sheet date.Financial instrumentsFinancial instruments are classified and accounted for, according to thesubstance of the contractual arrangement, as either financial assets, financialliabilities or equity instruments. An equity instrument is any contract thatevidences a residual interest in the assets of the company after deducting allof its liabilities.InvestmentsAll investments are initially recorded at cost, being the fair value of theconsideration given and including acquisition costs associated with theinvestment.Trade and other debtorsTrade and other debtors are recognised and carried forward at invoices amountsless provisions for any doubtful debts. Bad debts are written off whenidentified.Cash and cash equivalentsCash and cash equivalents are included in the balance sheet at cost. Cash andcash equivalents comprise cash at bank and in hand and short term deposits withan original maturity of three months or less.Interest-bearing loans and borrowingsAll loans and borrowings are recognised initially at cost, which is the fairvalue of the consideration received, net of issue costs associated with theborrowing.After initial recognition, interest-bearing loans and borrowings are measuredat amortised cost using the effective interest method. Gains or losses arerecognised in the profit and loss account when liabilities are derecognised orimpaired, as well as through the amortisation process.2. ANALYSIS OF COST OF SALES AND NET OPERATING EXPENSES Continuing Acquired Operations Operations Total ‚£ ‚£ ‚£YEAR ENDED 30 APRIL 2006Cost of sales 768,259 3,171,435 3,939,694 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢Administrative expenses 2,269,957 1,099,447 3,369,404 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Net operating expenses 2,269,957 1,099,447 3,369,404 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢YEAR ENDED 30 APRIL 2005Cost of sales 346,847 - 346,847 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢Administrative expenses 1,999,554 - 1,999,554 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Net operating expenses 1,999,554 - 1,999,554 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢3. OPERATING PROFITOperating profit is stated after charging: 2006 2005 ‚£ ‚£Amortisation 504,627 596,442 Depreciation of owned fixed assets 72,945 44,089Auditor's remuneration- as auditor 47,000 20,350 - for other services 29,500 10,700Operating lease costs:Other 52,024 16,600 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢Auditor's feesThe fees charged by the auditor can be further analysed under the followingheadings for services rendered: 2006 2005 ‚£ ‚£Audit 47,000 20,350 Audit related reporting 13,600 - Taxation compliance 4,550 2,350 Business consultancy 11,350 8,350 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 76,500 31,050 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢4. PARTICULARS OF EMPLOYEESThe average number of staff employed by the group during the financial yearamounted to: 2006 2005 No NoNumber of administrative staff 37 20 ¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢The aggregate payroll costs of the above were: 2006 2005 ‚£ ‚£Wages and salaries 1,834,709 862,174 Social security costs 215,038 94,404 Other pension costs 6,000 - ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 2,055,747 956,578 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢5. DIRECTORS' EMOLUMENTSThe directors' aggregate emoluments in respect of qualifying services were: 2006 2005 ‚£ ‚£Emoluments receivable 324,083 287,833 Value of company pension contributions to 3,000 -money purchase schemes ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 327,083 287,833 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢Emoluments of highest paid director: 2006 2005 ‚£ ‚£Total emoluments (excluding pension 125,000 100,000contributions) ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢The number of directors who accrued benefits under company pension schemes wasas follows: 2006 2005 No NoMoney purchase schemes 1 - ¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢Share optionsThe directors during the period and their beneficial interest in options topurchase ordinary shares in the company which were granted and vested duringthe period, were as follows: Date of Number of Number of Exercise Expiry date grant options options price granted exercised in period P Coveney 23 May 2000 250,000 250,000 0.01p 23 May 2010 5 April 2002 1,815,000 - 5.50p 5 April 2012 M Smith 6 April 2004 1,000,000 - 19.50p 6 April 2014Only vested options may be exercised at any time in whole or in part.6. INTEREST PAYABLE AND SIMILAR CHARGES 2006 2005 ‚£ ‚£Interest payable on bank borrowing 2,185 - ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢7. TAXATION ON ORDINARY ACTIVITIES(a) Analysis of charge in the year 2006 2005 ‚£ ‚£Current tax:In respect of the year:UK Corporation tax based on the results for 660,596 288,780the year at 30% (2005 - 30%) ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Total current tax 660,596 288,780 Deferred tax:Origination and reversal of timing differences (3,250) - ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Tax on profit on ordinary activities 657,346 288,780 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ (b) Factors affecting current tax chargeThe tax assessed on the profit on ordinary activities for the year is higherthan the standard rate of corporation tax in the UK of 30% (2005 - 30%). 2006 2005 ‚£ ‚£Profit on ordinary activities before 2,193,935 778,165taxation ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢Profit/(loss) on ordinary activities by 658,181 233,450rate of tax Expenses not deductible for tax (primarily 19,254 77,454intangible amortisation) Capital allowances in excess of 13,192 9,665depreciation Utilisation of tax losses - (16,075) Income not chargeable for tax purposes (131,876) - Adjustment in respect of chargeable gains 131,435 - Marginal relief (29,590) (15,714) ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Total current tax (note 7(a)) 660,596 288,780 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢8. DIVIDENDSNo dividend has been recommended for the year ended 30 April 2006.9. PROFIT ATTRIBUTABLE TO MEMBERS OF THE PARENT COMPANYThe profit dealt with in the accounts of the parent company was ‚£1,492,553(2005 - ‚£335,672).10. EARNINGS PER SHAREThe basic earnings per ordinary share is calculated by dividing profit for theyear less non-equity dividends and other appropriations in respect ofnon-equity shares by the weighted average number of equity shares outstandingduring the year.The diluted earnings per ordinary share is calculated by dividing profit forthe year less non-equity dividends and other appropriations in respect ofnon-equity shares by the weighted average number of equity shares outstandingduring the year (after adjusting both figures for the effect of dilutivepotential ordinary shares).The calculation of basic and diluted earnings per ordinary share is based uponthe following data:Earnings 2006 2005 ‚£ ‚£Earnings for the purposes of basic earnings 1,536,589 489,385per share ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Earnings for the purposes of diluted 1,536,589 489,385earnings per share ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢Number of shares 2006 2005 No NoBasic weighted average number of shares 43,936,311 40,507,379Dilutive potential ordinary shares:Share options 3,135,833 2,959,166 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬Weighted average number of sharesfor the purposes of diluted earnings per 47,072,144 43,466,545share ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ There have been no other transactions involving ordinary shares or potentialordinary shares since the reporting date and before the completion of thesefinancial statements.11. INTANGIBLE FIXED ASSETSGroup Goodwill Database Total ‚£ ‚£ ‚£COSTAt 1 May 2005 - 1,601,239 1,601,239 Additions 9,093,478 431,055 9,524,533 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ At 30 April 2006 9,093,478 2,032,294 11,125,772 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ AMORTISATIONAt 1 May 2005 - 1,145,146 1,145,146 Charge for the year - 504,627 504,627 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ At 30 April 2006 - 1,649,773 1,649,773 ¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢NET BOOK VALUEAt 30 April 2006 9,093,478 382,521 9,475,999 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ At 30 April 2005 - 456,093 456,093 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢The company did not hold any intangible fixed assets.12. TANGIBLE FIXED ASSETSGroup Fixtures & Fittings ‚£COSTAt 1 May 2005 239,834 Additions 50,769 Acquisition of subsidiaries 163,647 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ At 30 April 2006 454,250 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢DEPRECIATIONAt 1 May 2005 171,833 Charge for the year 72,945 Acquisition of subsidiaries 112,338 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ At 30 April 2006 357,116 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢NET BOOK VALUEAt 30 April 2006 97,134 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ At 30 April 2005 68,001 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢The company did not hold any tangible fixed assets.13. INVESTMENTSGroup Group companies ‚£COSTAt 1 May 2005 121,363 Disposals (121,363) ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ At 30 April 2006 - ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢NET BOOK VALUEAt 30 April 2006 - ¢â€¢¢â€¢¢â€¢¢â€¢ At 30 April 2005 121,363 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢Company Group Other Total companies investments ‚£ ‚£ ‚£COSTAt 1 May 2005 529,717 121,363 651,080 Additions 9,149,257 - 9,149,257 Disposals - (121,363) (121,363) ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ At 30 April 2006 9,678,974 - 9,678,974 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢LOANSAt 1 May 2005 914,307 - 914,307 Advanced in year 386,951 - 386,951 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ At 30 April 2006 1,301,258 - 1,301,258 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢NET BOOK VALUEAt 30 April 2006 10,980,232 - 10,980,232 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ At 30 April 2005 1,444,024 121,363 1,565,387 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Country of Holding Proportion Nature of business incorporation of voting rights and shares held Subsidiary undertakingsAll held by the company:Hague Limited England Ordinary 100% Permission based e-mail shares marketing Freequotes.co.uk England Ordinary 100% Permission based e-mailLimited shares marketing MutualPoints England Ordinary 100% Permission based e-mailLimited shares marketing Electronic England Ordinary 100% Permission based e-mailDirect Response shares marketingLimited iD Factor England Ordinary 100% Online market researchLimited shares Electronic Direct Response LimitedOn 15 November 2005 the group acquired Electronic Direct Response Limited for aconsideration of up to ‚£6,021,569 satisfied by cash and shares.In accordance with FRS25 the amounts shown as deferred share consideration aredisclosed as liabilities. It refers to that proportion of the acquisition costthat is deferred and contingent and which will be settled by the issue ofequity ordinary shares of ‚£0.0001 each between 2007 and 2009.With the exception of ‚£400,000, the deferred cash consideration and all thedeferred share consideration is payable upon the achievement of certain minimumtargets. The consideration shown represents the full consideration due shouldthe targets be met and is therefore the maximum liability that will be requiredto be paid, which the directors believe is the fair value. Initial estimates ofdeferred consideration will be revised as further and more certain informationregarding the targets achieved becomes available, together with correspondingadjustments to goodwill.Analysis of the acquisition of Electronic Direct Response Limited: Fair value and book value ‚£Cash 560,921 Tangible fixed assets 11,742 Debtors 1,426,704 Creditors (1,643,246) Costs of acquisition (93,240) ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 262,881 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Goodwill 5,758,688 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢Satisfied by:Cash consideration and costs 2,000,000 Deferred cash and shares 1,649,020 Shares issued 2,372,549 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 6,021,569 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢Electronic Direct Response Limited contributed ‚£1,292,763 to the group'soperating cash flows and paid ‚£99,084 in respect of taxation. Electronic DirectResponse Limited earned a profit of ‚£182,534 in the period ended 30 April 2006(2005 - ‚£23,023), of which ‚£188,579 arose in the period from 1 April 2005 to 15November 2005, the date of acquisition.The summarised profit and loss account for this period is as follows:Turnover 3,385,770 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Operating profit 265,955 Profit before tax 273,304 Taxation 84,725 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Profit for the 7.5 months ended 15 November 2005 188,579 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢iD Factor LimitedOn 23 December 2005 the group acquired iD Factor Limited for a consideration ofup to ‚£2,990,000 satisfied by cash, loan notes and shares.In accordance with FRS25 the amounts shown as deferred share consideration aredisclosed as liabilities. It refers to that proportion of the acquisition costthat is deferred and contingent and which will be settled by the issue ofequity ordinary shares of ‚£0.0001 each between 2007 and 2010.The deferred loan consideration and the deferred share consideration is payableupon the achievement of certain minimum targets. The consideration shownrepresents the full consideration due should the targets be met and istherefore the maximum liability that will be required to be paid, which thedirectors believe is the fair value. Initial estimates of deferredconsideration will be revised as further and more certain information regardingthe targets achieved becomes available, together with corresponding adjustmentsto goodwill.Analysis of the acquisition of iD Factor Limited: Fair value and book value ‚£Cash (90,972) Tangible fixed assets 39,567 Debtors 187,932 Creditors (436,868) Costs of acquisition (44,449) ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ (344,790) ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Goodwill 3,334,790 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢Satisfied by:Cash paid 130,000 Deferred loan notes and shares 2,860,000 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 2,990,000 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢iD Factor Limited contributed ‚£(301,064) to the group's operating cash flowsand paid nothing in respect of taxation. iD Factor Limited incurred a loss of ‚£(373,361 )in the period ended 30 April 2006 (2005 - Profit of ‚£31,738), ofwhich ‚£(357,003) arose in the period from 1 April 2005 to 23 December 2005, thedate of acquisition.The summarised profit and loss account for this period is as follows:Turnover 592,112 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Operating loss (374,563) Loss before tax (374,563) Taxation (17,560) ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Profit for the 9 months ended 23 December 2005 (357,003) ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢14. DEBTORS Group Company 2006 2005 2006 2005 ‚£ ‚£ ‚£ ‚£Trade debtors 3,052,614 592,168 - - Other debtors 4,500 1,219 1 1,219 Directors current accounts 373 - - - Prepayments and accrued income 284,245 166,842 2,294 - ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 3,341,732 760,229 2,295 1,219 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢15. CREDITORS: Amounts falling due within one year Group Company 2006 2005 2006 2005 ‚£ ‚£ ‚£ ‚£Bank loans and overdrafts 40 - - - Trade creditors 1,424,072 115,069 - -Other creditors including taxation and social security:Corporation tax 533,562 288,780 498,359 143,229 PAYE and social security 114,504 27,441 - - VAT 204,296 56,828 - - Other creditors 888,828 - - - Deferred cash consideration 193,215 - 193,215 - Deferred share consideration 59,314 - 59,314 - Accruals and deferred income 172,050 54,429 - - ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 3,589,881 542,547 750,888 143,229 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢In accordance with FRS25 the amounts shown as deferred share consideration aredisclosed as liabilities. It refers to that proportion of the acquisition costthat is deferred and contingent and which will be settled by the issue ofequity ordinary shares of ‚£0.0001 each between 2007 and 2010.Deferred share consideration in respect of the acquisition of Electronic DirectResponse Limited and iD Factor Limited is payable upon the achievement ofcertain minimum targets. The consideration shown represents the fullconsideration due should the targets for both companies be met and is thereforethe maximum liability that will be required to be paid, which the directorsbelieve is the fair value. Initial estimates of deferred consideration will berevised as further and more certain information regarding the targets achievedbecomes available, together with corresponding adjustments to goodwill.16. CREDITORS: Amounts falling due after more than one year Group Company 2006 2005 2006 2005 ‚£ ‚£ ‚£ ‚£Other creditors including:Deferred share consideration 2,716,372 - 2,716,372 - Deferred cash and loan note 1,533,334 - 1,533,334 -consideration Unsecured 2% loan notes 100,000 - 100,000 - ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 4,349,706 - 4,349,706 - ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢In accordance with FRS25 the amounts shown as deferred share consideration aredisclosed as liabilities. It refers to the proportion of the acquisition costthat is deferred and contingent and which will be settled by the issue ofequity ordinary shares of ‚£0.0001 each between 2007 and 2010.With the exception of ‚£400,000, the deferred cash and loan consideration andall the deferred share consideration is in respect of the acquisition ofElectronic Direct Response Limited and iD Factor Limited and is payable uponthe achievement of certain minimum targets. The consideration shown representsthe full consideration due should the targets for both acquisitions be met andis therefore the maximum liability that will be required to be paid, which thedirectors believe is the fair value. Initial estimates of deferredconsideration will be revised as further and more certain information regardingthe targets achieved becomes available, together with corresponding adjustmentsto goodwill.17. OTHER PROVISIONS Group Company 2006 2005 2006 2005 ‚£ ‚£ ‚£ ‚£Other provisions 387,169 318,000 - - ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢The provision is in respect of the redemption value of reward points accrued bymembers at the year end.18. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIESThe group holds or issues financial instruments in order to achieve three mainobjectives, being:(a) to finance its operations;(b) to manage its exposure to interest and currency risks arising from itsoperations and from its sources of finance; and(c) for trading purposes.In addition, various financial instruments (e.g. trade debtors, tradecreditors, accruals and prepayments) arise directly from the group'soperations.Transactions in financial instruments result in the group assuming ortransferring to another party one or more of the financial risks describedbelow.Credit riskThe group monitors credit risk closely and considers that its current policiesof credit checks meets its objectives of managing exposure to credit risk.The group has no significant concentrations of credit risk. Amounts shown inthe balance sheet best represent the maximum credit risk exposure in the eventother parties fail to perform their obligations under financial instruments.19. COMMITMENTS UNDER OPERATING LEASESAt 30 April 2006 the group had annual commitments under non-cancellableoperating leases as set out below.Group Land and buildings 2006 2005 ‚£ ‚£Operating leases which expire:Within 2 to 5 years 134,363 56,326 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢At 30 April 2006 the company had annual commitments under non-cancellableoperating leases as set out below.Company Land and buildings 2006 2005 ‚£ ‚£Operating leases which expire:Within 2 to 5 years 82,763 39,726 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢20. RELATED PARTY TRANSACTIONSThe company has entered into a group cross-guarantee. As a result, there is adebenture secured on the assets of the company.Included within creditors is a unsecured 2% loan note of ‚£100,000 in favour ofJ Gumbrell, a director. The loan note is redeemable between one and three yearsof the balance sheet date.During the period J Gumbrell, a director of the company, had a loan accountwith a group company. The balance outstanding at the start of the period was ‚£2,524 and the outstanding balance at the end of the period was ‚£373. Themaximum owing to the company during the period was ‚£18,125.During the period the group made sales of ‚£6,000 to Net Fluential Limited, acompany in which J Gumbrell is a director.There is no ultimate controlling party.21. SHARE CAPITALAuthorised share capital: 2006 2005 ‚£ ‚£100,000,000 Ordinary Shares shares of ‚£ 10,000 10,0000.0001 each 100,000 Deferred shares of ‚£1 each 100,000 100,000 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 110,000 110,000 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢Allotted and called up: 2006 2005 No ‚£ No ‚£Ordinary Shares shares of ‚£ 48,060,161 4,806 40,033,192 4,0030.0001 each Deferred shares of ‚£1 each 100,000 100,000 100,000 100,000 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 48,160,161 104,806 40,133,192 104,003 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Equity sharesOrdinary Shares shares of ‚£ 48,060,161 4,806 40,033,192 4,0030.0001 each Deferred shares of ‚£1 each 100,000 100,000 100,000 100,000 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 48,160,161 104,806 40,133,192 104,003 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ During the year 533,832 ordinary shares of ‚£0.0001 were issued at par and7,843,137 were issued at ‚£0.30.In March 2006 the company brought back 350,000 ordinary shares of ‚£0.0001 each.The aggregate amount paid by the company for these shares was ‚£199,050.The above share buy-back took place in order to reward shareholders, asapproved at the last AGM.The rights and restrictions attached to and imposed on the deferred shares areas follows:a) The deferred shares shall not confer upon the holders thereof as a class,the right to receive any dividend, distribution or other participation in theprofits of the company.b) The deferred shares do not entitle the holders to receive notice of or toattend and speak or vote at any general meeting of the company.c) On distribution of assets on liquidation or otherwise, the surplus assets ofthe company remaining after payments of its liabilities shall be applied:i) first in repaying to holders of the deferred shares the nominal amounts andany premiumpaid up or credited as paid up on such shares; andii) second, the balance of such assets shall belong to and be distributed amongthe holders ofthe ordinary shares in proportion to the nominal amounts paid up on theordinary shares held bythem respectively.Other share optionsAt 30 April 2006 the following share options to purchase ordinary shares in thecompany were in issue:Date of grant Number Number Exercise Expiry of options of options price date granted exercised in period 23 May 2000 298,333 250,000 0.01p 23 May 2010 31 October 2000 72,500 - 21.25p 31 October 2010 5 April 2002 1,815,000 - 5.50p 5 April 2012 16 May 2003 200,000 - 7.00p 16 May 2013 6 April 2004 1,000,000 - 19.50p 6 April 2014 15 November 1,176,470 - 0.01p 15 November2005 2015 15 November 300,000 - 30.25p 15 November2005 2015Only vested options may be exercised at any time in whole or in part.22. RESERVESGroup Share premium Capital Merger reserve Profit and account redemption on loss account reserve consolidation ‚£ ‚£ ‚£ ‚£Balance brought forward 2,330,501 90 120,374 (455,065) Profit for the year - - - 1,536,589 Other movements New equity share capital 2,371,764 - - -issued Purchase of own shares - - - (199,465) - transfer to/from - 35 - (35)capital redemption reserve ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Balance carried forward 4,702,265 125 120,374 882,024 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢Company Share premium Capital Profit and account redemption loss account reserve ‚£ ‚£ ‚£Balance brought forward 2,330,501 90 340,799 Profit for the year - - 1,492,553 Other movements New equity share capital issued 2,371,764 - - Purchase of own shares - - (199,465) - transfer to/from capital redemption - 35 (35)reserve ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Balance carried forward 4,702,265 125 1,633,852 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢23. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS 2006 2005 ‚£ ‚£ ‚£ ‚£Profit for the financial year 1,536,589 489,385 New equity share capital 838 52 subscribed Premium on new share capital 2,371,764 - subscribed ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 2,372,602 52 Purchase of own ordinary shares (35) (91) Premium on purchase of own (199,465) (186,910) ordinary shares ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ (199,500) (187,001) ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Net addition to shareholders' funds 3,709,691 302,436 Opening shareholders' funds 2,099,903 1,797,467 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Closing shareholders' funds 5,809,594 2,099,903 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ENDthemutual.net PLCRelated Shares:
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