Alltrue Investments PLC
29 September 2006
ALLTRUE INVESTMENTS PLC
INTERIM RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2006
CHAIRMAN'S STATEMENT
OVERVIEW
We successfully completed the acquisitions of Information Exchange Limited and
Falcon Securities Holdings Limited on 1 February 2006 and 23 February 2006, as
previously announced. We are satisfied with progress on their integration into
the group. Revenue in the first six months of the year amounted to £519,000
producing a nominal Operating Profit of £1000. The Group had some £473,000 in
cash at 30 June 2006, for working capital and acquisitions; this amount has not
changed materially at the date of this report.
We consider that the Group is soundly based and has the resources to fund its
ongoing operations as well as scope for further acquisitions. No dividend is
being declared.
BUSINESS REVIEW
The Information Exchange Limited ('IX')
IX launched the first of two additional IX investor events for the year 2006 and
also put in place a series of seminars presented by Alpesh Patel, a well known
investment author and commentator, and director of the Company.
The first new event was held on 5 & 6 May at London Olympia and included a focus
on property investing strategies for private investors managing their own
portfolios. This new conference theme allowed IX to access the wide market of
property investment companies as exhibitors and also companies from the wealth
management industry. The show was successful with around 2,500 visitors
attending over the two days and plans are in place already to repeat this event
in 2007 to build the number of exhibitors and sponsors.
Looking ahead to the second half, IX will hold its annual two-day October IX
investor show again at Olympia (20 & 21 October) and exhibitor sales are
expected to be usefully ahead of last year. December 2006 will see the launch
of the second new event of the year, IX Forex Trader. Although originally
planned as an entrepreneur event, market research revealed that several other
closely related events may have increased pressure in sales and therefore IX
took the decision to launch IX Forex Trader in its place. This new one-day
event focuses on currency and future markets and follows the same educational
formats of the IX investor shows. The dedicated nature of the event, however,
allows IX to take advantage of the fast growing number of FX and futures brokers
in the UK as potential exhibitors and sponsors. We believe this new event will
attract up to 2,000 visitors, and IX has already secured the Chicago Mercantile
Exchange, the world's largest and most diverse financial exchange, as overall
sponsor.
The IX investment seminars proved a more challenging side to the business in
early 2006. While two seminars were held in the first 6 months of 2006, the
demand was seen to be lower than expected. We are now taking a cautious approach
to future seminar plans. However, there are provisional dates for three more
investment seminars to take place during the autumn which is traditionally a far
more active season for the seminar industry, while increased traffic on the
website from the two successful IX Investor shows should help sales.
IX has achieved some large steps forward in 2006, moving from a one-event
business towards organising multiple events under the IX brand. This period of
growth has seen a marked increase in revenues and the successful execution of
the first of two launch events bodes well for future growth. Given the costs
associated with launching new events that are typically loss-making in their
first-year, the Directors do not anticipate, on the basis of current trading,
that any deferred shares will be issued to the Vendors of IX. The Directors
expect IX revenues to increase in following years for both new shows now that
the costs are built into market budgets of potential clients.
Falcon Securities
Falcon has continued to develop its advisory broking business for high net worth
and experienced clients. In this regard the business now incorporates the
ability to execute client transactions through spread betting/cfd accounts as
well as in the cash market. This approach provides Falcon's clients with a wider
choice of execution capability but importantly affords Falcon the ability to
generate both commission and recurrent income on its execution business. We are
continuing to look for individuals or small teams of brokers to help grow this
side of the business.
The corporate broking activity has expanded with the focus now more on arranging
and supporting Listings on Plus Markets (Ofex) where Falcon holds seven
corporate advisorships and expects this number to grow during the second half.
Additionally Falcon is broker to seven AIM listed companies. The first half
results include one corporate transaction in this area where Falcon acted as
broker to a new AIM listing, raising £1.25m and we expect to witness increased
activity in this area during the final six months.
OUTLOOK
We expect the financial performance in the second half of the year to generally
reflect the first half's experience. We continue to look for potential
acquisitions and will keep shareholders appraised of any developments.
L.E.V. KNIFTON
Chairman
29 September 2006
ALLTRUE INVESTMENTS PLC
Unaudited Group Profit and Loss Account
For the six months to 30th June 2006
6 Months to Year to 6 Months to
30 June 2006 31 December 2005 30 June 2005
Unaudited Audited Unaudited
Note £'000 £'000 £'000
Turnover 519 - -
Cost of sales (224) - -
295 - -
Administration expenses 294 (71) (34)
Operating Profit/(Loss) 1 (71) (34)
Interest received 12 30 11
Profit/(Loss) on ordinary activities
before taxation 13 (41) (23)
Taxation - - -
Profit/(Loss) on ordinary activities
after taxation 13 (41) (23)
Dividends - - -
Retained profit/(deficit) for the
period £13 £(41) £(23)
Earnings/(loss) per shares: basic
and diluted 2 0.006p (0.044p) (0.02p)
The Group's turnover, cost of sales and operating profit arise from acquisitions
in the period.
There were no recognised gains or losses other than those recognised in the
profit and loss account above.
ALLTRUE INVESTMENTS PLC
Unaudited Group Balance Sheet as at 30 June 2006
30 June 31 December 30 June
2006 2005 2005
Unaudited Audited Unaudited
£'000 £'000 £'000
FIXED ASSETS
Intangible 1,733 - -
Tangible 43 - -
1,776 - -
CURRENT ASSETS
Debtors 186 91 6
Cash at bank and in hand 473 619 708
659 710 714
CREDITORS: amounts falling due within one year (233) (28) (14)
Net current assets 426 682 700
Net assets less current liabilities 2,202 682 700
CAPITAL AND RESERVES
Called up share capital 244 94 94
Share premium account 732 725 725
Merger relief reserve 1,350 - -
Profit and loss account (124) (137) (119)
Equity shareholders' funds 2,202 682 700
ALLTRUE INVESTMENTS PLC
Unaudited Group Cash Flow Statement
For the six months to 30 June 2006
6 Months to Year to 6 Months to
30 June 2006 31 December 2005 30 June 2005
Unaudited Audited Unaudited
£'000 £'000 £'000
Cash (outflow) from operating activities (96) (154) (46)
Return on investment and servicing of Finance 12 30 11
Acquisitions:
Purchase of subsidiaries, net of bank balances acquired (62) - -
Financing - Issue of shares net of expenses - - -
Cash (decrease) in the period (146) (124) (35)
Reconciliation of movements in shareholders' funds
£'000 £'000 £'000
Surplus/(Deficit) for the period 13 (41) (23)
New share capital issued at par 150 - -
Increase in share premium - VAT recovered on expenses 7 - -
Increase in merger relief reserve 1,350 - -
1,520 (41) (23)
Opening shareholders' funds 682 723 723
Closing shareholders' funds 2,202 682 700
ALLTRUE INVESTMENTS PLC
Notes to the Interim Report
1. Accounting Policies
The interim report has been prepared using accounting policies consistent with
those set out in the Company's Annual Report and Accounts for the year ended 31
December 2005.
They have been prepared on a going concern basis.
This interim report for the period from 1 January 2006 to 30 June 2006 has been
approved by the Board.
2. Loss per Share
6 Months to Year to 6 months to
30 June 2006 31 December 2005 30 June 2005
Pence Pence Pence
Earnings/(loss) per ordinary shares - 0.006 (0.044) (0.02)
Basic and diluted
The loss per ordinary share is based on the Group's profit for the
period of £13,000 (Company 31 December 2005 - £41,000 (loss); 30 June 2005 -
£23,000 (loss)) and a weighted average number of ordinary shares in issue of
218,476,892 (31 December 2005 - 94,167,500; 30 June 2005 - 94,167,500).
3. Reconciliation of operating loss to net cash inflow/(outflow) from operating activities.
6 Months to Year to 6 months to
30 June 2006 31 December 2005 30 June 2005
Unaudited Audited Unaudited
£'000 £'000 £'000
Operating profit/(loss) 1 (71) (34)
(Increase) in debtors (14) (87) (2)
Amortisation and depreciation 43 - -
(Decrease)/increase in creditors (126) 4 (10)
Net cash (outflow) from operating activities £(96) £(154) £(46)
4. The information for the year ended 31 December 2005 has been
extracted from the audited accounts for that period which have been delivered to
the Registrar of Companies and received an unqualified audit opinion. The
unaudited results for the six months have been prepared on a basis consistent
with the accounting policies disclosed in the Company's 2005 accounts and do not
constitute statutory accounts within the meaning of Section 240 of the Companies
Act 1985.
5. Copies of this interim statement are available from the Company at
its registered office at Finsgate, 5-7 Cranwood Street, London, EC1V 9EE.
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