19th Sep 2005 14:20
Company Health Group PLC19 September 2005 For immediate release Company Health Group plc Interim results for the six months ended 30 June 2005 Highlights •First interim results following the reverse takeover of DTC Group in April 2005. •Turnover of £585,555 representing only two months trading for the DTC businesses. Trading at increased levels for both the occupational health and insurance medical examinations businesses, comparing the six months to June 2005 with that of the same period of 2004. •Gross margin and net profit of the operating units broadly in line with management expectations. •Paramedic examinations business steadily increasing following its introduction in mid-2004. Chairmans Statement This is the first results announcement since Reversus plc's acquisition of DTCGroup, an occupational health services business, at the end of April 2005, atwhich time the financial year-end was changed to 31 December 2005. Onacquisition, Reversus plc was renamed Company Health Group plc to more accuratelyreflect the Group's continuing business operations. The inclusion of thisbusiness has reversed the previous loss making situation although the interimfigures include only two months trading of the DTC Group companies. The newGroup revenues continue to grow in accordance with our expectations. Since the period under review we have acquired Milligan & Hill, a City basedoccupational health and physiotherapy practice. This acquisition is the first inour planned expansion strategy providing the Group with new revenue streams andmarket opportunities. I am delighted to announce that the Board have appointed Moore Stephens, of StPaul's House, Warwick Lane, London EC4M 7BP, to act as auditors to all companieswithin the Group. I look forward to reporting further progress to shareholders in due course. For further information please contact: Ralph Gough, Paul Davies, Simon Hudson/Claire MellyChairman and Chief Executive Director Tavistock CommunicationsCompany Health Group Arden Partners Tel: 020 7553 8820 Tel: 020 7398 1635 Tel: 020 7920 3150 Consolidated profit and loss accountfor the six months ended 30 June 2005 6 months to 12 months to 6 months to 12 months to June 2005 June 2005 June 2004 June 2004 (unaudited) (unaudited) (unaudited) (audited) Notes £'000 £'000 £'000 £'000---------------------------------------------------------------------------------- Turnover 586 586 - -Cost of sales (316) (316) - -----------------------------------------------------------------------------------Gross Profit 270 270 - -Administrative expenses (273) (314) (43) (174)----------------------------------------------------------------------------------Operating Loss (3) (44) (43) (174)Disposal ofsubsidiary undertaking - - - (16)Net interest receivable 7 21 11 16----------------------------------------------------------------------------------Profit/(Loss) onordinary activitiesbefore taxation 4 (23) (32) (174) Taxation 2 - - - -----------------------------------------------------------------------------------Profit/(Loss) for the period 4 (23) (32) (174)----------------------------------------------------------------------------------Earnings per share(pence) - basic and diluted 3 0.02 (0.09) (0.04) (0.25)---------------------------------------------------------------------------------- There are no recognised gains or losses other than those stated in the aboveprofit and loss accounts. Consolidated balance sheetas at 30 June 2005 As at As at As at 30 June 31 December 30 June 2005 2004 2004 (unaudited) (unaudited) (audited) Notes £'000 £'000 £'000 Intangible Assets 2,615 - -Tangible Assets 166 - -----------------------------------------------------------------------------------Total fixed assets 2,781 - -----------------------------------------------------------------------------------Stocks 55 - -Debtors 666 2 6Cash at bank and in hand 534 593 604----------------------------------------------------------------------------------Total current assets 1,255 595 610----------------------------------------------------------------------------------Creditors: amounts falling duewithin one year (1,259) (50) (38)----------------------------------------------------------------------------------Net current (liabilities)/assets (4) 545 572----------------------------------------------------------------------------------Total assets less currentliabilities 2,777 545 572----------------------------------------------------------------------------------Creditors: amounts falling dueafter more than one year (61) - -----------------------------------------------------------------------------------Net assets 2,716 545 572----------------------------------------------------------------------------------Capital and reserves Called up share capital 5 2,093 1,804 1,804Share premium account 5 12,818 10,939 10,939Capital Redemption Reserve 5 9 9 9Profit and Loss Account 5 (12,204) (12,207) (12,180)----------------------------------------------------------------------------------Equity shareholders' funds 2,716 545 572---------------------------------------------------------------------------------- Consolidated cash flow statementfor the six months ended 30 June 2005 6 months to 12 months to 12 months to June 2005 June 2005 June 2004 (unaudited) (unaudited) (audited) £'000 £'000 £'000-----------------------------------------------------------------------------------Net cash outflow from operating activities (215) (240) (141)-----------------------------------------------------------------------------------Returns on investments and servicing of debtInterest paid (3) (3) -Interest received 11 25 16Interest element of finance lease (1) (1) ------------------------------------------------------------------------------------ TaxationCorporation tax repaid - - 11----------------------------------------------------------------------------------- Capital Expenditure and financial investmentPayments to acquire tangible fixed assets (5) (5) ------------------------------------------------------------------------------------Acquisitions and disposalsPurchase of subsidiary undertaking (257) (257) -Debt acquired with subsidiary undertaking (177) (177) -Disposal of subsidiary undertaking - - 709-----------------------------------------------------------------------------------Cash inflow/(outflow) before financing (648) (658) 595----------------------------------------------------------------------------------- FinancingDebt due within one year:Net (decrease)/increase in short term borrowings (20) (20) -Debt due beyond one year:Repayment of secured loans (5) (5) -Capital element of hire purchase payments (3) (3) ------------------------------------------------------------------------------------Increase/(decrease) in cash (675) (686) 595----------------------------------------------------------------------------------- Reconciliation of operating profit to net operating cash flows-----------------------------------------------------------------------------------Operating Profit (3) (44) (174)Depreciation and loss on sale of assets 6 6 -Amortisation charges 26 26 -(Increase)/decrease in stocks (1) (1) -Decrease/(increase) in debtors (159) (155) 103Increase/(decrease) in creditors (84) (72) (70)-----------------------------------------------------------------------------------Net cash outflow from operating activities (215) (240) (141)----------------------------------------------------------------------------------- Reconciliation of net cash flow to movement in net debt-----------------------------------------------------------------------------------Increase/(decrease) in cash in the period (675) (686) 595Cash outflow from decrease in debt 29 29 -Non-cash movements (1) (1) -Debt acquired (296) (296) ------------------------------------------------------------------------------------Movement in net debt in the period (943) (954) 595Net debt at 1st January 2005 593 604 9-----------------------------------------------------------------------------------Net debt at 30 June 2005 (350) (350) 604----------------------------------------------------------------------------------- Notes 1. Accounting policiesThe financial statements are prepared under the historical cost convention andin accordance with applicable accounting policies. Turnover Turnover comprises the invoiced value of goods and services supplied by thegroup derived from its ordinary activities, net of Value Added Tax and tradediscounts. Depreciation and diminution in value of assetsTangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixedassets, less their estimated residual value, over their expected useful lives onthe following bases: Leasehold improvements - 10% per annum on a straight line basisFixtures and equipment - between 10% straight line and 25% per annum on a reducing balance basisMotor vehicles - 25% reducing balance basis Intangible fixed assets have been capitalised and amortisation is provided bythe group to write off the costs incurred over their estimated useful economiclives as follows: Paramed examination development costs - at a rate of £1 per completed examinationPurchased goodwill - 5% per annum on a straight line basis StocksStocks and work in progress are valued at the lower of cost and net realisablevalue after making due allowance for obsolete and slow moving stocks. Costincludes all direct costs. Foreign exchangeAssets 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 ruling on the date of thetransaction. Exchange differences are taken into account in arriving at theoperating profit. LeasingAssets obtained under hire purchase contracts and finance leases are capitalisedas tangible fixed assets and depreciated over their useful lives. Finance leasesare those where substantially all of the benefits and risks of ownership areassumed by the company. Obligations under such agreements are included increditors net of the finance charge allocated to future periods. The financeelement of the rental payment is charged to the profit and loss account so as toproduce a constant periodic rate of charge on the net obligation outstanding ineach period. Rentals paid under operating leases are charged to the profit andloss account on a straight line basis over the term of the lease. Pension costsContributions to the employees' individual pension schemes are charged to theprofit and loss account as paid. 2. TaxationAn estimate has been made of the appropriate rate of taxation for the eighteenmonths to the end of the current financial period. On this basis, a charge totaxation of £nil has been made for the six months to 30 June 2005 (2004: £nil). 3. Earnings per share The calculation of earnings per share is based on the profit/(loss) on ordinaryactivities after taxation for the six months ended 30 June 2005 of £4,000 (2004:loss of £32,000) and on the number of ordinary shares outstanding during the sixmonths ended 30 June 2005 of 17,917,941 (2003: 72,160,707). 4. Movement in net debt Debt at Debt at 1 January Cash Flow Other Non 30 June 2005 Acquisitions Movements Cash Changes 2005 £ £ £ £ £-------------------------------------------------------------------------------------Cash in hand and at Bank 592,589 - (58,246) - 534,343Overdrafts - - (617,065) - (617,065)------------------------------------------------------------------------------------- 592,589 - (675,311) - (82,721)Debt due after 1 year - (40,000) 5,000 - (35,000)Debt due within 1 year - (215,971) 19,693 - (196,278Finance Leases - (39,481) 3,782 (868) (36,567)------------------------------------------------------------------------------------- 592,589 (295,452) (646,836) (868) (350,567)------------------------------------------------------------------------------------- 5. Statement of changes in equity Share Share Capital Profit and Total Capital Premium Redemption Loss Account Equity £ £ £ £ £---------------------------------------------------------------------------------------At 1 January 2005 1,804,018 10,938,957 8,788 (12,207,419) 544,345Profit for the period - - - 3,675 3,675Dividends - - - - -Exchange differences - - - - -Issue of share capital 289,110 1,879,216 - - 2,168,327---------------------------------------------------------------------------------------At 30 June 2005 2,093,129 12,818,173 8,788 (12,203,744) 2,716,346--------------------------------------------------------------------------------------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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