("WFCA", "the Company" or "the Group")
INTERIM RESULTS
WFCA plc (AIM: WFCA.L), a leading regional advertising and marketing agency, today announces its interim results for the 6 months ended 31 December 2011.
Highlights
· Net Profit before taxation £530 (2010 H1: loss of £91,167)
· Cost cutting measures and the development of the client base showing benefits
· A number of new projects have been won with no client losses
Interim Statement
The net profit before taxation of £530 for the six months ended 31st December 2011 compares to a loss of £91,167 for the six months ended 30th December 2010. The result benefits from the inclusion of an exceptional credit of £109,926 arising from the collection of amounts previously written off and recorded in the interim statement last year.
The trading loss before tax and exceptional items of £92,341 compares to a profit of £127,073 for the comparative period in 2010. It represents a significant recovery from the £316,450 loss incurred in the second six months of the previous financial year ended 30th June. This improvement arose from cost cutting measures implemented in early 2011 and the development of our client base generally throughout the calendar year.
With client advertising budgets remaining depressed, future organic growth needs to be driven by acquiring new assignments from existing clients, and additionally by winning new clients in their own right. Since our last statement, we are pleased to report that the Group has won projects with Threadneedle Asset Management, Attwoods Solicitors, Saga Services and Central Homecare and has increased its services to a number of retained clients. No client has been lost by the Group in the last twelve months. We anticipate that this improvement, together with a series of current opportunities moving forward, will allow the Group to continue with its recovery in the current year.
The Group remains in dialogue with a series of strategic opportunities and while the acquisition of WBR (as reported in the June 2011 Annual Report) remains the only opportunity completed to date in the current financial year, we anticipate further developments in this area during 2012.
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Group Income Statement |
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For the 6 months ended 31st December 2011 |
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6 months ended |
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6 months ended |
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12 months ended |
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31st Dec 2011 |
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31st Dec 2010 |
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30th June 2011 |
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unaudited |
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unaudited |
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audited |
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£ |
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£ |
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£ |
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Revenue |
3,591,604 |
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8,073,019 |
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11,145,221 |
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Direct costs |
(2,450,155) |
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(6,302,533) |
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(8,362,536) |
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Gross profit |
1,141,449 |
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1,770,486 |
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2,782,685 |
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Other operating income |
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- |
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- |
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Operating costs before share option charge |
(1,191,862) |
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(1,580,113) |
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(2,844,067) |
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Share option charge |
(1,652) |
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(3,453) |
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(4,992) |
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(1,193,514) |
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(1,583,566) |
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(2,849,059) |
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Depreciation |
(14,310) |
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(27,576) |
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(53,936) |
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Total operating profit |
(66,375) |
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159,344 |
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(120,310) |
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(25,966) |
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(32,271) |
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(69,117) |
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Profit before taxation, exceptional items and discontinued operations |
(92,341) |
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127,073 |
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(189,427) |
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Income tax credit / (charge) |
(808) |
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(1,086) |
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83,806 |
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Profit before exceptional items and discontinued operations |
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(93,149) |
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125,987 |
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(105,621) |
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Profit / (Loss) from exceptional items |
92,871 |
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(218,240) |
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(403,388) |
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(Loss) / Profit after exceptional items and before discontinued operations |
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(278) |
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(92,253) |
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(509,009) |
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(Loss) / Profit from discontinued operations |
- |
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- |
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(3,569) |
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(Loss) / Profit for the period attributable to equity holders of the parent |
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(278) |
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(92,253) |
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(512,578) |
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Earnings per share |
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Basic earnings per share |
- |
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-0.03p |
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-0.17p |
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Diluted earnings per share |
- |
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-0.03p |
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-0.16p |
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No Group Statement of Comprehensive Income has been prepared because there were no material gains or losses for the year other than those recognised in the Group Income Statement. |
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Group Balance Sheet |
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As at 31st December 2011 |
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At |
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At |
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At |
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31st Dec 2011 |
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31st Dec 2010 |
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30th June 2011 |
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unaudited |
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unaudited |
|
audited |
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£ |
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£ |
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£ |
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Assets |
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Non-current assets |
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Property, plant and equipment |
78,563 |
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115,942 |
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92,872 |
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Goodwill |
8,760,324 |
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8,497,909 |
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8,497,907 |
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Deferred tax assets |
464,284 |
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419,630 |
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423,509 |
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9,303,171 |
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9,033,481 |
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9,014,288 |
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Current assets |
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Trade and other receivables |
1,846,611 |
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3,261,554 |
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862,187 |
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Non-current assets held for sale |
- |
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190,000 |
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142,000 |
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Cash and short term deposits |
302,951 |
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209,889 |
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704,217 |
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2,149,562 |
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3,661,443 |
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1,708,404 |
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Total Assets |
11,452,733 |
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12,694,924 |
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10,722,692 |
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Equity and liabilities |
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Share capital |
4,459,660 |
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2,684,660 |
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4,459,660 |
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Share premium |
1,331,350 |
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1,425,398 |
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1,332,706 |
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Retained earnings |
3,134,147 |
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3,551,568 |
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3,132,773 |
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8,925,157 |
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7,661,626 |
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8,925,139 |
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Non-current liabilities |
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Long term borrowings |
650,000 |
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687,500 |
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662,500 |
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Provisions for other liabilities and charges |
35,291 |
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- |
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- |
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|
685,291 |
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687,500 |
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662,500 |
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Current liabilities |
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Trade and other payables |
1,781,948 |
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4,269,903 |
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1,135,053 |
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Provisions for other liabilities and charges |
60,337 |
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- |
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- |
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Corporate income tax payable |
- |
|
75,895 |
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- |
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1,842,285 |
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4,345,798 |
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1,135,053 |
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Total liabilities |
2,527,576 |
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5,033,298 |
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1,797,553 |
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Total equity and liabilities |
11,452,733 |
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12,694,924 |
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10,722,692 |
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Group Cash Flow Statement |
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For the 6 months ended 31st December 2011 |
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6 months ended |
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6 months ended |
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12 months ended |
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31st Dec 2011 |
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31st Dec 2010 |
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30th June 2011 |
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unaudited |
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unaudited |
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audited |
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£ |
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£ |
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£ |
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Cash inflow from operating activities |
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Profit from operations before taxation |
530 |
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(91,167) |
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(592,815) |
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Share option charge for the period |
1,652 |
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3,453 |
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4,992 |
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Discontinued operations |
- |
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- |
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(3,569) |
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Depreciation of property, plant and machinery |
14,310 |
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27,576 |
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53,936 |
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Operating cashflows before movement in working capital |
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16,492 |
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(60,138) |
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(537,456) |
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Diminution in value of property |
- |
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- |
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48,000 |
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(Increase) / decrease in receivables |
(961,460) |
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(843,565) |
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1,555,800 |
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Increase / (decrease) in payables |
504,843 |
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573,711 |
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(1,794,707) |
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Cash generated / (consumed) by operations |
(440,125) |
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(329,992) |
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(728,363) |
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Income tax received |
- |
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- |
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- |
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Net cash from operating activities |
(440,125) |
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(329,992) |
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(728,363) |
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Cash (outflow) from investing activities |
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Acquisition of subsidiary |
(71,124) |
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- |
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- |
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Sale of freehold property |
142,000 |
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- |
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- |
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Purchase of property, plant and equipment |
- |
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- |
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(3,291) |
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Net cash used in investment activities |
70,876 |
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- |
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(3,291) |
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Cash (outflow) / inflow from financing activities |
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Proceeds on issue of shares |
- |
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- |
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1,775,000 |
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Costs of share issue |
(1,356) |
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(9,000) |
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(101,692) |
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Long term borrowings |
(62,500) |
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(12,500) |
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- |
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Net cash from financing activities |
(63,856) |
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(21,500) |
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1,673,308 |
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Net decrease in cash and cash equivalents |
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(433,105) |
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(351,492) |
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941,654 |
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Cash and cash equivalents at beginning of period |
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704,217 |
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(137,447) |
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(237,437) |
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Cash and cash equivalents at end of period |
271,112 |
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(488,939) |
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704,217 |
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Cash and cash equivalents as at 31st Dec 2011 |
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Represented by: |
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Cash and short term deposits |
302,951 |
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209,889 |
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704,217 |
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Bank facilities |
(31,839) |
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(698,828) |
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- |
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Total cash and cash equivalents |
271,112 |
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(488,939) |
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704,217 |
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Group Statement of Changes in Equity |
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For the 6 months ended 31st December 2011 |
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Share |
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Share |
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Retained |
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Capital |
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Premium |
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Earnings |
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Total |
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£ |
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£ |
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£ |
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£ |
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Balance at 1st July 2011 |
4,459,660 |
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1,332,706 |
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3,132,773 |
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8,925,139 |
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Charge for share options |
- |
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- |
|
1,652 |
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1,652 |
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Issue of share capital |
- |
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- |
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- |
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- |
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Issue costs |
- |
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(1,356) |
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- |
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(1,356) |
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Profit for the period |
- |
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- |
|
(278) |
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(278) |
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Balance at 31st December 2011 |
4,459,660 |
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1,331,350 |
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3,134,147 |
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8,925,157 |
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Basis of Preparation |
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This interim financial report is unaudited and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The financial statements for the year to 30th June 2011, which were prepared in accordance with International Reporting Standards ('IFRS') as adopted by the European Union and upon which the auditors have issued an unqualified report, have been delivered to the Registrar of Companies. |
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The interim financial report for the six months ended 31st December 2011 have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union. The accounting policies applied in the interim financial report are consistent with those set out and applied in the Group's Annual Report for the year to 30th June 2011. |
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The interim financial report for the six months ended 31st December 2011 which comprise the Group Income Statement, Group Balance Sheet, Group Cash Flow Statement, Group Statement of Changes in Equity and the related notes, has been reviewed by the Group's auditor. In addition, the Group's auditor has read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. |
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Further enquiries:
WFCA plc
Stephen Latter, Financial Director Tel: 01892 703 201
Daniel Stewart ∓ Company plc
David Hart ∓ James Felix Tel: 020 7776 6550
WFCA plc is a uniquely placed full service Marketing Communications Agency and positioned as the "London Agency not in London". Their role is as a different kind of Agency, with completely integrated and full service resource delivering advertising, design, direct, digital and media solutions to a wide range of blue chip Clients, but at a much lower cost than their London based competitors.
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