MILESTONE GROUP PLC
RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2010
Milestone Group PLC ("Milestone" or the "Group"), the AIM quoted (AIM:MSG)
provider of digital media and technology solutions, announces its results for
the six months ended 31 March 2010.
Highlights
* Revenue generated for the first time by the new digital solutions team
* Investment of £0.163 million made in JumpStart Wireless Inc and Ve
Interactive Ltd (year ended 30 September 2009 investments: nil)
* Trade and other payables (excluding loans) reduced to £0.318 million (year
ended 30 September 2009 trade and other payables (excluding loans): £0.373
million)
* Board exploring further fundraising and new business opportunities in line
with previous statements
* In the six months to 31 March 2010, £0.584 million raised through share
issues and loans, showing continued shareholder support, with all new share
issues for cash being at above the market price at the time of issue
* Board strengthened with the appointments of Guy van Zwanenberg as Finance
Director and Mark Hargreaves as a non-executive Director
Deborah White, Chief Executive, said:
"This is an exciting time for Milestone. All the hard work in restructuring the
Group is starting to impact positively on the business. We are starting to see
the first of the revenue streams coming through and our investments into new
patented technology have enhanced our service offering. We continue to work
towards creating shareholder value through the conversion of the new business
opportunities we continue to see."
For further information:
Milestone Group PLC
Deborah White, Chief Executive Tel: 020 7929 7826
Strand Hanson Limited
Richard Tulloch / David Altberg Tel: 020 7409 3494
Hybridan LLP
Claire Louise Noyce Tel: 020 7947 4350
CHIEF EXECUTIVE'S STATEMENT
The six months since our last report has seen the consolidation of efforts made
in 2009 to reposition Milestone from the old analogue media businesses into a
digital solutions agency with a focus on web and mobile applications.
The Board has been, and continues to focus on bringing stability to the business
by attracting key individuals and cultivating strategic alliances to help
harness and deliver revenues to the business. As detailed in our annual
accounts for the year ended 30 September 2009, following our year end the
Company entered into strategic agreements and made investments in JumpStart
Wireless and Ve Interactive. Whilst it has taken longer than expected to
generate sales, in the period ended 31 March 2010 we did generate our first
sales. Since the end of March 2010 we have completed a number of projects and
we have developed a pipeline of opportunities which we are focused on converting
into revenue.
In addition, our Board has been strengthened with the appointments of Guy van
Zwanenberg as Finance Director in December 2009 and Mark Hargreaves as a
non-executive Director in April 2010. Since the end of March, Jeff Zie has also
joined the team as Chief Operating Officer and is leading our sales initiative.
A key focus has and continues to be on managing our trade creditor position and
during the six month period ended 31 March 2010 we raised additional funds
through new subscriptions of £0.248 million (with all cash issues at above
market price) and new loans of £0.336 million to provide working capital and to
reduce our trade and other payables (excluding loans). In addition, the Company
also converted £0.143 million of liabilities into shares during the period.
This enabled the Company to reduce trade and other payables (excluding loans)
from £0.373 million as at 30 September 2009 to £0.318 million as at 31 March
2010. The Company continues to actively manage its liabilities and further
fundraisings are likely to be required in the short term to enable the Company
to meet its liabilities and to provide additional working capital. As such, the
Company is reliant on its ability to manage the timing of settlement of its
liabilities and to raise further funds going forward.
Although this has been a difficult trading period, we are seeing demand for our
services growing steadily and I would like to thank the team and our
shareholders for supporting us during this time.
Deborah White
Chief Executive Officer
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 31 March 30 Sept
2010 2009 2009
£ £ £
Revenue
7,990 - -
Cost of sales
- - -
Gross profit
7,990 - -
Other operating income
- 11,830 9,268
Administrative expenses (347,045) (170,292) (392,664)
(347,045) (158,462) (383,396)
Loss from operations
(339,055) (158,462) (383,396)
Finance expense
(37) - -
Finance income
3 18 20
Loss before taxation
(339,089) (158,444) (383,376)
Taxation expense
- - -
Loss from continuing operations
(339,089) (158,444) (383,376)
Profit/(loss) on discontinuing operations
- (8,626) (8,626)
Loss for period
(339,089) (167,070) (392,002)
Attributable to equity shareholders of
the parent (339,089) (167,070) (392,002)
There were no recognised income and expense items (2009: nil) other than those
reflected in the above income statement.
Comparatives for the 6 months ended 31 March 09 have been restated to reflect
the change in presentation of discontinuing operations adopted in the year ended
30 September 2009 statutory accounts.
CONSOLIDATED BALANCE SHEET
Note Unaudited Unaudited Audited
six months six months year
ended ended ended
31( )March 31( )March 30 Sept
2010 2009 2009
£ £ £
Non-current Assets
Property, plant & equipment 924 - -
Investments 162,824 - -
---------------------------------------
163,748 - -
Current Assets
Trade and other receivables 39.078 75,836 2,462
Cash and cash equivalents 95,272 1,792 10,325
---------------------------------------
134,350 77,628 12,787
Current Liabilities
Bank overdrafts - - -
Trade and other payables 4 (654,860) (513,755) (423,424)
---------------------------------------
(654,860) (513,755) (423,424)
---------------------------------------
Net Assets / (Liabilities)
(356,762) (436,127) (410,637)
---------------------------------------
Capital and reserves attributable to
equity holders of the company
Share capital
5 106,586 2,808,252 88,298
Share premium account 8,852,100 8,247,152 8,479,824
Merger reserve 11,119,585 11,119,585 11,119,585
Capital Redemption Reserve 2,732,904 - 2,732,904
Retained losses (23,167,937) (22,611,116) (22,831,248)
---------------------------------------
Total Equity
(356,762) (436,127) (410,637)
---------------------------------------
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 2010 31 March 2009 30 Sept 2009
£ £ £
Loss for the period (339,089) (167,070) (392,002)
Adjustments for:
Depreciation of tangible assets 182 - -
Profit on disposal of property, plant - - (597)
and equipment
Net bank and other interest charges 34 - 10
Issue of share options 2,400 - 4,800
Net loss before changes in working (336,473) (167,070) (387,789)
capital
Decrease/(increase) in trade and other (36,615) 19,690 68,690
receivables
(Decrease)/increase in trade and other 88,499 (122,364) (89,284)
payables
Cash from operations (284,589) (269,744) (408,383)
Interest received 3 - 20
Interest paid (37) - (30)
Net cash flows from operating (284,623) (269,744) (358,393)
activities
Investing Activities
Purchase of Investments (162,824) - -
Purchase of property, plant and (1,106) - -
equipment
Sales proceeds of property, plant and - - 597
equipment
Net cash flows used in investing (163,930) - 597
activities
Financing Activities
Issue of ordinary share capital 247,500 241,596 356,500
Repayment of loan - - (10,000)
New loans raised 286,000 8,375 60,000
Net cash flows from financing 533,500 249,971 406,500
activities
Net decrease in cash 84,947 (19,773) (1,296)
Cash and cash equivalents at beginning 10,325 11,621 11,621
of period
Cash and cash equivalents at end of 95,272 (8,152) 10,325
period
Comparatives for the 6 months ended 31 March 2009 have been restated to reflect
the change in presentation of the consolidated cash flow statement adopted in
the year ended 30 September 2009 statutory accounts.
NOTES TO THE INTERIM FINANCIAL INFORMATION
for the six month period ended 31 March 2010
1. General information
The principal activity of Milestone Group PLC and its subsidiaries (the Group)
is as a digital solutions agency, with a focus on web and mobile applications.
Milestone Group PLC is the Group's ultimate parent company and it is
incorporated in the United Kingdom with registration number 4689130. Milestone
Group PLC is domiciled in the United Kingdom and has its registered office at
1(st) Floor, 2 Royal Exchange, London EC3V 3DG, and this is its principal place
of business.
Milestone Group PLC's shares are quoted on the AIM market of the London Stock
Exchange.
Milestone Group PLC's consolidated financial statements are presented in Pounds
Sterling (£).
These consolidated financial statements have been approved for issue by the
Board of Directors on 8 June 2010.
2. Basis of preparation
The financial information in the half yearly report has been prepared using the
recognition and measurement principles of International Accounting Standards,
International Financial Reporting Standards and Interpretations adopted for use
in the European Union (collectively Adopted IFRSs). The principal accounting
policies used in preparing the half yearly report are those the Group expects to
apply in its financial statements for the year ending 30 September 2010 and are
unchanged from those disclosed in the Group's Director's report and consolidated
financial statements for the year ended 30 September 2009.
The financial information for the six months ended 31 March 2010 and the six
months ended 31 March 2009 is unaudited and does not constitute the Group's
statutory financial statements for those periods. The comparative financial
information for the full year ended 30 September 2009 has, however, been derived
from the audited statutory financial statement for that period. A copy of those
statutory financial statements has been delivered to the Registrar of Companies.
While the financial figures included in this half-yearly report have been
computed in accordance with IFRSs applicable to interim periods, this
half-yearly report does not contain sufficient information to constitute an
interim financial report as that term is defined in IAS 34.
Going concern
As stated in the year end accounts to 30 September 2009, the business model is
based around generating revenue from two new areas; website development and
commissions from the sale of the JumpStart Wireless and Ve Interactive products.
While the sales have been slower than anticipated, the Board has prepared
forecasts which reflect agreements that have or are expected to be entered into
to settle existing obligations of the business and the revenues and costs
anticipated from these new revenue streams based on a pipeline of anticipated
customers. These projections show the business will be profitable and cash
generative in the future. However, achieving these forecasts will be dependent
upon achieving sales in a new market place and obtaining sufficient funding to
settle existing obligations and the Board is confident of being able to achieve
this.
However, the Board continues to closely manage the timing of settlement of its
liabilities and recognises that going forward further fund raisings are likely
to be required in the short term to enable the Company to meet its liabilities
and provide additional working capital. The Board is aware that in the event
that it is unable to manage the timing of settlement of its liabilities or to
raise further funds in the short term, the Group's ability to continue as a
going concern would be impacted.
3. Loss per share
The calculation of the basic loss per share is based on the loss attributable to
ordinary shareholders divided by the average weighted number of shares in issue
during the year. The calculation of diluted loss per share is based on the basic
loss per share, adjusted to allow for the issue of shares and the post tax
effect of dividends and interest, on the assumed conversion of all other
dilutive options and other potential ordinary shares.
There were 500,000 share options outstanding at 31 March 2010 (2009: nil),
however the figures have not been adjusted to reflect conversion of these share
options as the effects would be anti-dilutive.
Loss for 6 Weighted Per share Loss for 6 Weighted Per share
months to average number amount months to average number amount
31 March 2010 of shares 31 March 2009 of shares
£ (pence) £ (pence)
(339,089) 96,774,808 (0.35) (167,070) 65,053,013 (0.26)
4. Trade and other payables
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 2010 31 March 2009 30 Sept 2009
£ £ £
Trade Creditors 302,152 415,503 257,359
Taxation and Social Security 16,708 452 20,816
Other Payables - 20,376 -
Accruals and deferred income - 31,549 95,249
Loans 336,000 45,875 50,000
-----------------------------------------------
654,860 513,755 423,424
-----------------------------------------------
5. Share Capital
31 March 30 Sept
2010 2009
Number £ Number £
Authorised
Ordinary shares of 0.1p 2,267,095,595 2,267,096 2,267,095,595 2,267,096
--------------------------------------------------
2,267,095,595 2,267,096 2,267,095,595 2,267,096
--------------------------------------------------
Allotted, called up and fully
paid
Ordinary shares of 0.1p 106,585,734 106,586 88,297,729 88,298
--------------------------------------------------
106,585,734 106,586 88,297,729 88,298
--------------------------------------------------
On 30 September 2009 the Company announced that it had agreed to issue
1,860,467 ordinary shares of 0.1p each for a settlement of outstanding trade
payables of £33,128.
On 12 October 2009 the Company announced that it had agreed to issue 6,686,665
ordinary shares of 0.1p each for a combination of cash consideration of
£130,000, settlement of outstanding trade payables of £9,550 and settlement in
lieu of repayment of loans / interest of £10,900.
On 15 December 2009 the Company announced that it had agreed to issue 1,200,000
ordinary shares of 0.1p each for a cash consideration of £30,000.
On 24 December 2009 the Company announced that it had agreed to issue 2,502,555
ordinary shares of 0.1p each for settlement of outstanding trade payables of
£45,546.
On 7 January 2010 the Company announced that it had agreed to issue 1,727,271
ordinary shares of 0.1p each for a cash consideration of £47,500.
On 17 February 2010 the Company announced that it had agreed to issue 1,090,908
ordinary shares of 0.1p each for a cash consideration of £30,000.
On 1 April 2010 the Company announced that it had agreed to issue 363,636
ordinary shares of 0.1p each on 31 March 2010 for a cash consideration of
£10,000 and 364,170 ordinary shares of 0.1p each for a settlement of outstanding
trade payables of £6,555.05.
On 9( )April 2010 the Company announced that it had agreed to issue 2,492,333
ordinary shares of 0.1p each on 31 March 2010 for the conversion of certain
outstanding loans together with associated accrued interest amounting to
£37,385.
6. Interim Report
Copies of the interim report are available to shareholders. Additional copies
may be obtained from Milestone Group PLC's registered office: 1(st) Floor, 2
Royal Exchange Steps, London EC3V 3DG or on the company's website at
www.milestonegroup.co.uk <
http://www.milestonegroup.co.uk/>.
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