3rd Aug 2006 07:30
GARNER PLC(FORMERLY CONSTELLATION CORPORATION PLC)INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2006Chairman's StatementYou may recall in my statement accompanying our 2005 results I remarked that2005 in many respects had been a turnaround year. I am delighted to report, asyou will see from the results for the half year, that the improvement hascontinued. Pre-tax profits of ‚£200,000 compares with losses in the same periodlast year of ‚£36,000.Turnover is up by 60%, from ‚£685,000 to ‚£1.104 million. More importantly, wecan see from current contracted income that this upward trend is continuingthrough the third quarter. Credit for this lies squarely with my colleagues,all of whom are performing well. We have another consultant and a researcherjoining in August. Our headcount then will be seven consultants and four inresearch.You are all aware of the important changes to our balance sheet that wereapproved at the recent Annual General Meeting. However, we will continue tofocus on cash generation and cash management and further debt reduction. Thesymbolism of the Company's name change and the substantial improvement in ourperformance in the first half is intended to make clear to all our shareholdersthat we have drawn a clear line under our challenging past and the Boardremains cautiously confident regarding the full year performance of theCompany. We already have two FTSE 10 volume clients, and serve eight FTSE 100companies on regular and long term contracts together with a select group ofunlisted businesses and multi-nationals and, therefore, have a sound andattractive platform to build on.J BartleChairmanCONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 30 JUNE 2006 Note Six months Six months Year ended ended ended 31 December 30 June 2006 2005 30 June 2005 (unaudited) (unaudited) (audited) ‚£'000 ‚£'000 ‚£'000 Turnover 1,104 688 1,579 Administrative expenses (852) (666) (1,425) -------- --------- --------- Total operating profit 252 22 154 Interest payable and similar (52) (58) (108)charges -------- -------- --------- Profit on ordinary activities 200 (36) 46before taxation Taxation - - - -------- -------- --------- Profit for the financial period 200 (36) 46 Dividends - (25) - -------- -------- --------- Retained profit for the financial 200 (61) 46period -------- -------- --------- Earnings per share (pence) - Basic 2 0.04p (0.01)p 0.00pand diluted -------- -------- ---------CONSOLIDATED BALANCE SHEET AT 30 JUNE 2006 At 30 June 2006 At 30 June 2005 At 31 December 2005 (unaudited) (unaudited) (audited) ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Fixed assets Tangible assets 1 2 - Investments 925 992 959 -------- -------- -------- 926 994 959 Current assets Debtors 573 309 303 Cash at bank and in hand - - 4 -------- -------- -------- 573 309 307 Creditors: amounts (3,243) (3,146) (3,105) falling due within one year -------- -------- -------- Net current liabilities (2,670) (2,837) (2,798) --------- --------- --------- Total assets less current (1,744) (1,843) (1,839)liabilities Creditors: amounts (593) (756) (678)falling due after more than one year Provisions for - - -liabilities and charges --------- --------- --------- Total assets less current (2,337) (2,599) (2,517)liabilities ====== ===== ===== Capital and reserves Called up share capital 4,795 4,795 4,795 Share premium account 3,523 3,543 3,543 Other reserve - - - Profit and loss account (10,655) (10,937) (10,855) ---------- --------- -------- Shareholders' funds (2,337) (2,599) (2,517) ====== ===== ===== CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2006 Note Six months Six months Year ended ended 30 31 ended 30 June 2005 December 2005 June 2006 (unaudited) (unaudited) (audited) ‚£'000 ‚£'000 ‚£'000 Net cash (outflow) / inflow from i (36) 34 148operating activities Returns on investments and servicing of (52) (58) (108)finance Taxation - - - Capital expenditure and financial - - -investment Acquisitions and disposals - - - ---------- ---------- ---------- Net cash flow before use of liquid (88) (24) 40resources and financing Financing 58 (30) (66) ---------- ---------- ---------- Decrease in cash ii (30) (54) (26) ====== ====== ====== NOTES TO THE CASH FLOW STATEMENTi reconciliation of operating profit to net cash FLOW Six months Six months Year ended ended 30 31 December ended 30 June 2005 2005 June 2006 (unaudited) (unaudited) (audited) ‚£'000 ‚£'000 ‚£'000 Operating profit for the period 252 22 154 Depreciation of tangible fixed assets - 4 6 Amortisation of goodwill 34 33 69 (Increase) in debtors (270) (134) (128) (Decrease) / increase in creditors (52) 109 47 --------- --------- --------- Net cash (outflow) / inflow from operating (36) 34 148activities ====== ====== ======ii Reconciliation of net cash flow to movement in net DEBT Six months Six months Year ended ended 30 31 ended 30 June 2005 December 2005 June 2006 (unaudited) (unaudited) (audited) ‚£'000 ‚£'000 ‚£'000 (Decrease) in cash in the period (30) (54) (26) Directors' loan advance (82) - (80) Net movement on secured loans 101 30 144 ---------- ---------- ---------- Change in net debt resulting from cash flows (11) (24) 38 Net debt at the beginning of the period (1,683) (1,721) (1,721) ---------- ---------- ---------- Net debt at the end of the period (1,694) (1,745) (1,683) ====== ====== ======iii Analysis of changes in net debt At 31 December Cash flow At 30 June 2005 2006 ‚£'000 ‚£'000 ‚£'000 Cash at bank and in hand 4 (4) - Bank overdraft (50) (26) (76) ----------- ---------- ----------- Total for cash at bank and in hand (46) (30) (76) Debt due within one year (564) 16 (548) Debt due after more than one year (678) 85 (593) Directors loan account (395) (82) (477) ------------ ---------- ------------ (1,683) (11) (1,694) ======= ====== =======NOTES TO THE UNAUDITED INTERIM REPORT 1. BASIS OF PREPARATION The results for the six months ended 30 June 2006, which are unaudited, havebeen prepared in accordance with the Company's accounting policies as set outin its Annual Report and Accounts to 31 December 2005 and under the historicalcost convention.The financial information set out in this document which has been neitheraudited nor reviewed does not comprise the statutory accounts of the Companywithin the meaning of section 240(5) of the Companies Act 1985.BASIS OF CONSOLIDATIONThe group financial statements consolidate those of the Company and of itssubsidiary undertaking Garner International Limited, a company incorporated inEngland and Wales. Profits or losses on intra-group transactions are eliminatedin full. 2. earnings PER ORDINARY SHARE The calculation of the earnings per share is based on the profit attributableto ordinary shareholders of ‚£200,000 (2005: ‚£61,000) and the weighted averagenumber of ordinary shares in issue during the period, being 1,167,118,360(2005: 1,167,118,360). 3. RESTATEMENT OF JUNE 2005 BALANCE SHEET Following receipt of Counsel's opinion relating to the preference shares asnoted in the Annual Report and Financial Statements for the year ended 31December 2005, the balance sheet as at 30 June 2005 has been restated. Theeffect of this restatement is to decrease shareholders' funds by ‚£1,228,000 andincrease current liabilities by the same amount. 4. COPIES OF THE UNAUDITED INTERIM REPORT Copies of this report are available on request from the Company's registeredoffice at 6 Derby Street, London, W1J 7AD.Contact details:Garner PlcAndrew GarnerTel: 020 7629 8822City Financial Associates LimitedRoss AndrewsTel: 020 7090 7800ENDGARNER PLCRelated Shares:
Norman Broadb