7th Jun 2005 07:02
Delling Group PLC07 June 2005 DELLING GROUP PLC FINAL RESULTS YEAR ENDING 31 DECEMBER 2004 Loss Lower than Originally Forecast by Company's Broker Delling Group Plc ("Delling Group" or "the Company"), the marketing servicesgroup, announces its final results for the period ending 31st December 2004, itsmaiden full year results since flotation on AIM last October. The Group is AIMlisted and incorporated in the UK but its principal activities are located inthe Nordic region. It is a pioneer in the application of the latest IT technology that providesoutsourced services of digital and other printing materials to the marketingdepartment 'back offices' of companies, predominantly operating in Scandinavia.Software developed by Azzet, a subsidiary of the the Company, assists in theautomation of processes of marketing departments. Another subsidiary of theCompany, Butler Systems, provides a turnkey concept in plasma screens inshopping centres. Customers in the Nordic region include Nokia, Statoil, Sony Eriksson, McDonaldsNorway and Compass Group Sweden. Subsidiaries comprise Depicta, Depicta Fame,Azzets and Butler Systems. Depicta and Depicta Fame are the drivers of thebusiness, accounting for over 90% of current sales revenue. The results are based on 9 months of operations at Depicta, Azzets and ButlerSystems and 21/2 months of operations at, Depicta Fame. Financial highlights: • Turnover £2.17m (£1.8m turnover was forecast by the Company's broker, Seymour Pierce Limited). • Pre-tax loss £2.77m (£3.5m pre-tax loss was forecast by the Company's broker, Seymour Pierce Limited). • Contracts with a revenue of £4.5m per annum were gained in the first quarter of 2005. • Two acquisitions were made in April 2005, providing approximately £1m of annual turnover and £100k of annual operating profit, for consideration equivalent to one times pre-tax profit, contributing from 1 May 2005. • Cash, including credit facilities, of £0.8m as at 31 May. • Mobile marketing established as a new Group service. • Substantial pipeline of acquisitions and sales prospects. • Board strengthened by appointments of a Finance Director and a Director of UK sales and marketing. Commenting, David Kruck, Chairman, said: "Delling Group is well positioned to take advantage of opportunities in themarket place, to build itself into a substantial international business in themarketing support services sector in Northern Europe. We believe that thecurrent financial year has the potential for strong growth in the marketsegments in which we operate, with a turn around to profitability expected in2005/2006." ENDS Contact: Delling Group PlcAksel Bradvelt, Chief Executive Officer 020 7010 8210James Robinson, Finance Director 020 7010 8210Geir Lolleng, Chief Operating Officer 020 7010 8210 Binns & Co PR LtdPeter Binns 020 7786 9600Hannah Sloane 020 7153 1480 DELLING GROUP PLC ANNUAL REPORT CHAIRMAN'S STATEMENT The last year has been an exciting year for Delling Group. From the creation ofthe Group in March 2004, with the acquisition of the three companies based inStockholm by Delling Group Plc to the listing on Aim in October 2004, followedby the acquisition of Depicta Fame, based in Oslo. The past 12 months have alsobeen geared towards building up the Group organisation and creating a basis forthe expansion of the Group. Our strategy is to grow through acquisitions and organic growth centered on ourcore offering. The space that the Group operates in is highly fragmented, with alarge number of smaller potential acquisition candidates. The outsourcing ofmarketing material production is a growing market with significant potential.The new digital channels such as screen advertising and mobile marketing areexpanding markets. The Group has positioned itself well within the differentsegments during the year. A number of contract wins, such as those with HPSweden, Beijer and Compass Group have created a solid base within our businessareas for expansion during this year. Furthermore, the successful acquisition ofDepicta Fame in Oslo has provided a template for the Group of how to implementits acquisition strategy. The flotation on AIM has enhanced the profile of the Group, increasing itscredibility in acquiring larger outsourcing contracts, created an alternativesettlement structure for acquisitions and finally provided access to additionalfunding to support our expansion strategy. At the end of last year the Group entered into an agreement with Briscan AB, asmall technology development company in Sweden, that has developed a technologyfor interactive marketing over mobile phones. The agreement has led to theestablishment of a mobile marketing unit within Delling Group, which offersadditional exciting potential. I would like to thank our staff for all their hard work over the last year. Thecompetence level within the Group has been substantially enhanced through anumber of new employees hired during the year. It is our belief that the presentorganisation will enable us to continue the rapid expansion that we haveplanned. Looking forward to the current financial year, we believe that the marketsegments we are operating in have the potential for strong growth. This is basedon the increasing demands on marketing departments to become more efficient andto get more out of their marketing spend, as well as the trend towards the useof other marketing channels such as mobile marketing and screen advertising. Ibelieve that we are well on our way to realising our vision of becoming a majorforce in Northern Europe in the marketing support services area and we willcontinue to work very hard towards achieving this objective during 2005. David KrucikChairman. DELLING GROUP ANNUAL REPORT CHIEF EXECUTIVE'S REVIEW Introduction Delling Group has made significant progress since March 2004 with the listing onAIM as well as the development of the organisation, the pipeline of salesprospects, and potential acquisitions. The Group is well positioned to takeadvantage of the opportunities in the market segments it operates in as well asfulfilling its expansion plans during 2005. Financial Results The financial results are mainly based on 9 months of operations, as three ofthe operating companies were acquired by Delling Group Plc on 31 March 2004.Furthermore, the results also include 21/2 months of contribution from DepictaFame in Oslo. Of the total turnover of £ 2.173 million last year, 71% is fromDepicta (the media production company), 24% from Depicta Fame (media productioncompany), 4% is from Azzets (IT solutions for the marketing department) and 1%from Butler Systems (turnkey concept for screen advertising). Of the pre-tax loss of £ 2.83 million, 66% was attributed to Azzets. Asmentioned below, the company was restructured at the end of the year, of whichat least 50% of the costs are non-recurring. Approximately 14% of the pre-taxloss is attributable to the start up costs of Butler Systems. Approximately 25%of the pre-tax loss is attributable to Depicta, with the build-up of the salesorganisation in Depicta representing the main component. During the year 15,785,713 shares were issued at 14p per share in the listing onAIM in October 2004, raising the number of issued ordinary shares to 58,502,717.The payment for the acquisition of Depicta Fame, at the same time, increased thenumber of ordinary shares in issue by 1,190,476 to 59,693,193, which was thenumber of ordinary shares in issue at the year end. The Group issued a further8,666,667 new ordinary shares at 15p per share in February, raisingapproximately £ 1.3 million. Business and operating review In March 2004 three business areas were organised in separate Swedish companies:Depicta, Azzets and Butler Systems were acquired by the newly establishedDelling Group Plc. Depicta produces marketing material (including videos, images, text) formarketing departments. In 2004, the company increased its resources in the salesarea resulting in a substantial increase in its pipeline of sales prospects,especially within outsourcing of production and production management. Theresult of this work were the two major outsourcing contracts for HP and thebuilding materials retail chain Beijer in Sweden. These contracts have beendeveloped favourably during the first part of 2005 and the efforts from thesales department have made the ground work for a number of potential outsourcingcontracts during 2005. In Azzets, which develops and sells software solutions for marketingdepartments, a strategic change was made in October. The company has developed adigital asset management system that is leading edge in the market. A strategicdecision was made to sell the system to a software company and retain the rightsto continue to sell it to our customers. That process will be carried out in2005. Therefore, the development department was given notice and made redundant.The company is building up a portfolio of software solutions able to cater tothe total needs of marketing departments through partners. Gartner Group isforecasting strong market growth in this area, which they call Market ResourceManagement (MRM) in the coming years. Azzets is being developed to takeadvantage of the growth opportunity. Butler Systems sells a turnkey concept for screen advertising and, despite beingin a start-up period, last year won a number of contracts, including one withCompass Group in Sweden. These contracts, and a number of sales prospects, arethe basis for the development of a profitable business in the current year. Mobile marketing became a new business area at the end of the year. Apartnership was entered into with the mobile technology company Briscan AB. Anagreement for a free trial in a limited period on Ericsson's systems in Swedenwas granted. A number of pilot projects have been developed in the first monthsof the new financial year. The technology allows a potential customer tointeract with the advertiser through a mobile phone. The response in themarketing community has been very favourable. Delling Group has the exclusiverights to market the concept worldwide. The market Delling Group is dependent on the development of the advertising market,particularly in Scandinavia, where most of the business is presently located.The advertising market in Sweden in particular has been gradually increasingfrom a historic low point. That trend is expected to continue this year.However, it is important to be aware that a major part of Delling Group'sservice concept is based on making the processes in the marketing departmentsmore efficient by outsourcing production and production management and by usingsoftware solutions that reduces costs and decreases time to market campaigns. Inthe screen advertising area and the mobile marketing area the situation isdifferent. These markets are based on the speed of adaptation of these newmarketing tools. It might take a few years before these segments become mature,however, as a leading edge marketing support services company Delling Group isone of the companies that drive the developments in these segments, and is verywell placed to take advantage of this developing market. Human resources During the year the IT business Azzets was restructured as mentioned above. Theresult was a reduction in staff by a total of 14 employees. The organisation inthe other parts of the business have been strengthened with complementarycompetencies such as mobile marketing. The expansion has been mostly in thesales function. On the management side, in the first half of this year, aFinance Director has been appointed, as well as a Director in charge of runningand developing business in the UK. Outlook In the first five months of the new financial year, contracts worth a total of£4.5 million have been announced, which includes every business area of theDelling Group. This is due to the build up of the sales force and the salespipeline during 2004. We would expect this development to continue. We have alsoannounced two acquisitions so far this year, with a combined annual turnover of£1 million with a pre-tax profit of £100,000. This is again due to theacquisition pipeline that the company started to build upon last year and whichwe are continuing to build this year. Acquisitions are a major part of ourexpansion strategy and this development is expected to continue until the Groupreaches critical mass. A Director in charge of our business in the UK has beenappointed to build our business in the UK market. Aksel BratvedtChief Executive Delling Group Plc Group Profit and Loss Account Period ended 31st December 2004 Group turnover 2 2,173Cost of sales (795) --------------------------Gross profit 1,378 Administrative expenses (4,051) --------------------------Operating loss 3 (2,673) Interest receivable 2Interest payable 6 (159) --------------------------Loss on ordinary activities before taxation (2,830) Tax on loss on ordinary activities 7 33 --------------------------Loss on ordinary activities after taxation 9 (2,797) Dividends 10 - --------------------------Loss for the financial period (2,797) ========================== Loss per share 8 (6.74)p ========================== Delling Group Plc Group Statement of Total Recognised Gains and Losses Period ended 31st December 2004 2004 £000 Loss for the financial period attributable to the shareholders of the parent company (2,797)Currency translation differences on foreign currency net investments 97 ----------------Total recognised gains and losses relating to the period (2,700) ================= Delling Group Plc Group Balance Sheet Period ended 31st December 2004 2004Note £000 Fixed assetsIntangible assets 11 2,920Tangible assets 12 674 --------------- 3,594 --------------- Current assetsStocks 14 42Debtors 15 698Cash at bank 284 --------------- 1,024Creditors: Amounts falling due within one year 16 (3,535) ---------------Net current liabilities (2,511) ---------------Total assets less current liabilities 1,083 Creditors: Amounts falling due after more than one year 17 (426) --------------- 657 =============== Capital and reservesCalled-up share capital 21 597Share premium account 22 2,700Capital reserve 60Profit and loss account 22 (2,700) --------------Shareholder funds 23 657 ============== Delling Group Plc Group Balance Sheet Period ended 31st December 2004 2004Note £000 Fixed assetsInvestments 13 1,035 --------------- Current assetsDebtors 15 2,264Cash at bank 21 --------------- 2,285Creditors: Amounts falling due within one year 16 (162) ---------------Net current assets 2,123 ---------------Total assets less current liabilities 3,158 --------------- 3,158 =============== Capital and reservesCalled-up share capital 21 597Share premium account 22 2,700Profit and loss account 22 (139) ---------------Shareholders' funds 23 3,158 =============== Delling Group Plc Group Cash Flow Statement (continued) Period ended 31st December 2004 2004 £000 Net cash outflow from operating activities (587) Returns on investments and servicing of financeInterest paid (159)Interest received 2 ---------------Net cash outflow from returns on investments and servicing of finance (157) Taxation 33 Capital expenditure and financial investmentPayments to acquire intangible fixed assets (807)Payments to acquire tangible fixed assets (148) ---------------Net cash outflow for capital expenditure and financial (955)investment AcquisitionOverdrafts acquired with subsidiaries (960) ---------------Cash outflow before financing (2,626) FinancingIssue of equity share capital 2,847 ---------------Net cash inflow from financing 2,847 ---------------Increase in cash 221 =============== Major non-cash transaction During the period the company issued 35,880,000 ordinary shares of 1p inexchange for the net assets of Azzets AB, Butler Systems AB and Depicta AB andE-Path PVT Limited. Delling Group Plc Group Cash Flow Statement (continued) Period ended 31st December 2004 Reconciliation of operating loss to net cash outflowfrom operating activities 2004 £000 Operating loss (2,673)Amortisation 297Depreciation 35Increase in stocks (42)Increase in debtors (415)Increase in creditors 2,211 ---------------Net cash outflow from operating activities (587) =============== Analysis of changes in net debt At Cash Flows At 23 31 December March 2004 2004 £000 £000 £000 Net cash:Cash in hand and at bank - 284 284Overdrafts (63) (63) ________ ________ ________ - 221 221 ====== ======= ======- Delling Group Plc Notes to the Financial Statements Period ended 31st December 2004 1. Accounting policies Basis of accounting The financial statements have been prepared under the historical costconvention and in accordance with applicable accounting standards. Basis of consolidation The consolidated financial statements incorporate the financial statementsof the company and all group undertakings. These are adjusted, whereappropriate, to conform to group accounting policies. Acquisitions are accountedfor under the acquisition method and goodwill on consolidation is capitalisedand written off over twenty years from the year of acquisition. The results ofcompanies acquired or disposed of are included in the group profit and lossaccount after or up to the date that control passes respectively. As aconsolidated group profit and loss account is published, a separate profit andloss account for the parent company is omitted from the group financialstatements by virtue of section 230 of the Companies Act 1985. Turnover Turnover comprises the value of goods and services supplied by thecompany, net of value added tax and trade discounts. Amortisation Amortisation is calculated so as to write off the cost of an asset, lessits estimated residual value, over the useful economic life of that asset asfollows: Goodwill - 5%-10% straight line Fixed assets All fixed assets are initially recorded at cost. Depreciation Depreciation is calculated so as to write off the cost of an asset, lessits estimated residual value, over the useful economic life of that asset asfollows: Plant & Machinery - 3-5 years straight line Stocks Stocks are valued at the lower of cost and net realisable value, aftermaking due allowance for obsolete and slow moving items. Foreign Currencies Assets and liabilities in foreign currencies are translated into sterling at therates of exchange ruling at the balance sheet date. Transactions in foreigncurrencies are translated into sterling at the rate of exchange ruling at thedate of the transaction. Exchange differences are taken into account inarriving at the operating profit. Investments Fixed asset investments are stated at cost less any necessary provision forimpairment. Capital instruments Shares are included in shareholders' funds. Other instruments are classified asliabilities if they contain an obligation to transfer economic benefits and ifnot they are included in shareholders' funds. The finance cost recognised inthe profit and loss account in respect of capital instruments other than equityshares is allocated to periods over the term of the instrument at a constantrate on the carrying amount. Operating lease agreements Rentals applicable to operating leases where substantially all of thebenefits and risks of ownership remain with the lessor are charged againstprofits on a straight line basis over the period of the lease. Deferred taxation Deferred 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 pay more,or a right to pay less or to receive more tax, with the following exceptions: Provision is made for tax on gains arising from the revaluation (andsimilar fair value adjustments) of fixed assets, and gains on disposal of fixedassets that have been rolled over into replacement assets, only to the extentthat, at the balance sheet date, there is a binding agreement to dispose of theassets concerned. However, no provision is made where, on the basis of allavailable evidence at the balance sheet date, it is more likely than not thatthe taxable gain will be rolled over into replacement assets and charged to taxonly where the replacement assets are sold; Deferred tax assets are recognised only to the extent that thedirectors consider that it is more likely than not that there will be suitabletaxable profits from which the future reversal of the underlying timingdifferences can be deducted. Deferred tax is measured on an undiscounted basis at the tax rates thatare expected to apply in the periods in which timing differences reverse, basedon tax rates and laws enacted or substantively enacted at the balance sheetdate. Going concern United Kingdom company law requires the company's directors to considerwhether it is appropriate to prepare the financial statements on the basis thatthe group is a going concern. In considering this matter the directors havereviewed the group's budget for 2005 and its plan for 2006. This includedconsideration of the cash flow implications of the budget and plan. Thedirectors see no reason why the group and the company should not continue inoperational existence for the foreseeable future. For this reason they haveadopted the going concern basis in preparing the group's financial statements. 2. Turnover The turnover and loss before tax are attributable to the one principalactivity of the group. An analysis of turnover is given below: 2004 £000 Europe 2,173 ==============Turnover is all in respect of operations acquired during the period 3. Operating loss Operating loss is stated after charging: 2004 £000 Amortisation 297Depreciation of owned fixed assets 35 Auditors' remuneration - as auditors 23 - non-audit services 123 ============== The audit fee to the parent company was £6,000 4. Particulars of employees The average number of staff employed by the group during the financialyear amounted to: 2004 No Management 10Sales 17Production and development 33Administrative 5 --------------- 65 =============== The aggregate payroll costs of the above were: 2004 £000 Wages and salaries 2,187Social security costs 859Other pension costs, life cover & medical costs 181 -------------------------- 3,227 ========================== 5. Directors' emoluments The directors' aggregate emoluments in respect of qualifying serviceswere: 2004 £000 Emoluments receivable - from the company 26 - from group companies 352Value of company pension contributions to money purchase schemes - --------------- 378 =============== During the year no director participated in a money purchase pensionscheme. Emoluments of highest paid director: Total emoluments (excluding pension contributions) 206 ============== 6. Interest payable and similar charges 2004 £000 Interest payable on bank borrowing 156Other similar charges payable 3 --------------- 159 =============== 7. Taxation on ordinary activities (a) Analysis of charge in the year Current tax: 2004 £000 UK Corporation tax based on the results for the year at 30% -Overseas tax credits 33 --------------- Total current tax credit 33 =============== (b) Factors affecting current tax charge The tax assessed on the loss on ordinary activities for the year is higherthan the standard rate of corporation tax in the UK. 2004 £000 Loss on ordinary activities before taxation (2,830) ============== Loss on ordinary activities by rate of tax at 30% (849)Disallowed expenditure 15Overseas tax credits (33)Losses carried forward 42Overseas losses 792 ---------------Total current tax - credit (note 7(a)) 33 =============== Deferred tax assets have not been recognised in the financial statements as thedirectors are uncertain as to when they will be utilised. 8. Loss per share 2004 PenceLoss per ordinary share (6.74) ============== The basic loss per share is calculated by dividing the loss on ordinaryactivities after tax of £2,797,000 and the weighted average number shares inissue and carrying the right to receive dividend during period ended 31 December2004 being 41,472,429. The diluted earnings per ordinary share calculation is the same as the basicearnings per share calculation. This is because no dilution arises as there isa loss. 9. Loss attributable to members of the parent company The loss dealt with in the accounts of the parent company was £139,000. 10. Dividends No dividends have been paid in respect of the period. 11. Intangible fixed assets Group Brands, licences Goodwill Total & patents £000 £000 £000 Cost Acquired in period 215 3,002 3,217 --------------- --------------- ---------------At 31 December 2004 215 3,002 3,217 =============== =============== =============== Amortisation Charge for the year 8 289 297 --------------- --------------- ---------------At 31 December 2004 8 289 297 =============== =============== =============== Net book valueAt 31 December 2004 207 2,713 2,920 =============== ============== =============== 12. Tangible fixed assets Group Plant & Total machinery £000 £000 Cost Acquired in period 709 709 --------------- ---------------At 31 December 2004 709 709 =============== =============== Depreciation Charge for the period 35 35 --------------- ---------------At 31 December 2004 35 35 =============== =============== Net book valueAt 31 December 2004 674 674 ============== ============== 13. Investments Company Total £000 CostAdditions 1,035 -------------At 31 December 2004 1,035 ============= Net book valueAt 31 December 2004 1,035 ============= Subsidiary undertaking Holding Country of Proportion of Nature of business incorporation voting rights held Name of company Directly HeldAzzets Limited Ordinary UK 100% Dormant Shares Butler Systems Limited Ordinary UK 100% Dormant Shares Depicta Limited Ordinary UK 100% Dormant SharesIndirectly HeldDepicta AB Ordinary Sweden 100% Provides outsourced Shares solutions for all types of advertising media Azzets AB Ordinary Sweden 100% Provides software for shares media management Butler Systems AB Ordinary Sweden 100% Provides equipment and Shares support services for displaying advertising media Depicta Fame AS Ordinary Norway 100% Photographic reproduction Shares Pursuant to a Share Exchange Agreement dated 31 March 2004 Delling Group Plcallotted 35,880,000 ordinary shares on 31 March 2004 to the vendors of shares inAzzets AB, Butler Systems AB and Depicta AB in exchange for the entire issuedshare capital of each company and to vendors of shares in E-Path PVT Limited inexchange for 70% of the issued share capital in that company. The directorshave subsequently decided to dispose of E-Path PVT Limited and this investmentis therefore held in current assets. On 19 October 2004 8,000,000 Norwegian Kroner were paid to incorporate DepictaFame AS. During the period the Company acquired 100% shareholding in all the abovecompanies. Net assets/liabilities acquired are considered to be at fair value. £000 Intangible assets 851Tangible assets 530Debtors 276Cash (960)Creditors (1,686)Net liabilities acquired (989)Cost-shares issued 359Goodwill arising 1,348 14. Stocks Group Company 2004 2004 £000 £000 Finished goods 42 - ============== ============== 15. Debtors Group Company 2004 2004 £000 £000 Trade debtors 342 -Shares held for disposal (note 13) 3 3Amounts owed by group undertakings - 2,227Other debtors 353 19Taxation - 15 ------------------ --------------- 698 2,264 =============== =============== 16. Creditors: Amounts falling due within one year, including convertible debts Group Company 2004 2004 £000 £000 Bank overdrafts 63 -Trade creditors 1,254 17Other taxation & social security 897 4Other creditors 1,280 100Accruals and deferred income 41 41 -------------------------- --------------- 3,535 162 ========================== =============== The overdraft of a subsidiary is secured by a fixed and floating change over theassets of that subsidiary. 17. Creditors: Amounts falling due after more than one year Group Company 2004 2004 £000 £000 Other creditors 426 - --------------- --------------- 426 - =============== =============== 18. Treasury policy and financial instruments The group operates informal treasury policies which include ongoingassessments of interest rate management and borrowing policy. The board approves all decision on treasury policy. Facilities are arranged, based on criteria determined by the board, asrequired to finance the long term requirements of the group. The group has financed its activities by the raising of funds through the placing of shares. The group has taken advantage of the exemption permitting it not to includeshort term debtors and in the disclosures required by FRS 13 'Derivatives and Other Financial Instruments: Disclosure' other than the currency disclosures. At 31 December 2004 there were no net monetary assets denominated in currenciesother than the functional currencies of the operations. There are no material differences between the book value and fair value of thefinancial assets at the year end. 19. Commitments under operating leases At 31 December 2004 the group had annual commitments under non-cancellableoperating leases as set out below. Group Group Company 2004 2004 Land and Other items Land and Other items Buildings Buildings £000 £000 £000 £000 Operating leases which expire: Within 1 year - - - 10Within 2 to 5 years - 3 - - --------------- --------------- --------------- --------------- - 3 - 10 =============== =============== =============== =============== 20. Related party transactions The company is exempt from the requirement to disclose related partytransactions with other group companies under the provisions of FinancialReporting Standard No. 8. All group transactions were eliminated onconsolidation. 21. Share capital Authorised share capital: 2004 2004 No £000 Ordinary shares of £0.01 each 200,000,000 200 ============== ============== Allotted, called up and fully paid: 2004 2004 No £000 Ordinary shares of £0.01 each 59,693,193 597 ============== ============== The following shares were issued in the period £000 No Reason March 2004 359 35,880,000 AcquisitionsOctober 2004 2,461 15,785,713 Placing on AIMOctober 2004 957 6,837,004 Settlement of loan notesOctober 2004 166 1,190,476 Acquisition ------------------------ --------------------------------------------------- 3,943 59,693,193 ====================== =================================================== Warrants Delling has two warrants in existence as follows: (1) 1% of the issued share capital at admission to AIM at the admission priceexercisable at any time over 5 years from the admission, and (2) 3% of the issued share capital at admission to AIM at the admission priceexercisable at any time over 3 years from the admission. 22. Reserves Group Share premium Profit and loss account account £000 £000 Premium arising on shares issued 3,096 -Less share issue costs (396) - --------------- -------------------------- 2,700Loss for the period (2,825)Exchange movement - 97 --------------- --------------------------Balance carried forward 2,700 (2,728) =============== ========================== Company Share premium Profit and loss account account £000 £000 Premium arising on shares issued 3,096 -Less share issue costs (396) -Retained loss for the period - (139) ----------------------- --------------------Balance carried forward 2,700 (139) ===================== ================== 23. Reconciliation of movements in shareholders' funds Group Equity shareholders' funds 2004 £000 Loss for the financial period (2,700)Related Shares:
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