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Digital Animations Group plc (“DA Group”) is pleased to announce its preliminary results for the year ended 31 March 2003.
Financial Highlights:
- Turnover of £1.54m (2002: £1.42m)
- Pre-tax loss of £2.61m (2002 loss of £0.74m)
- Net asset value per share of 26.3p (2002: 35.1p)
- Cash resources of £7.51m (2002: £10.34m)
- Cash value per share of 25.3p (2002: 32.3p)
Key Points:
- Court approval obtained for the cancellation of the share premium account to allow for the proposed distribution of up to £3m to shareholders.
- DA Group held its first product launch in London on 18 June 2003.
- Results for 2003 adversely affected by significant one off costs.
FINANCIAL REVIEW
The results for the year ended 31 March 2003 show a turnover increasing by 8.4% to £1,542,220 (2002 - £1,422,450).
Administration costs in the year amounted to £3,990,081 (2002 - £2,135,444). Administration costs in the year include some one-off costs namely the impairment and amortisation of goodwill of £432,677 (2002- £66,224) and an exceptional loss in respect of compensation for loss of office and related costs of £259,047 (2002-£nil). This year also includes a full year’s costs in relation to Black ID compared with the 6 months included from the date of consolidation last year. The group continues its scheduled programme of investment in research and new product development and costs this year amounted to £929,528 (2002 - £670,012). These costs are charged to the profit and loss account as incurred.
An operating loss of £1,333,686 (2002 - £524,776) has resulted before research and development expenditure of £929,528 (2002 - £670,012), impairment and amortisation of goodwill of £432,677 (2002 - £66,224) and an exceptional loss of £259,047 (2002-£nil). Overall results show a pre tax loss for the year of £2,609,304 (2002 loss - £743,062).
The tax charge of £111,000 (2002 - £79,000) represents the write off of the balance of the deferred tax asset in our subsidiary Black ID. Consequently the loss per share was 8.53p (2002 - 2.58p).
The group continues to maintain its strong balance sheet position with net assets of £7,818,034 (2002 - £11,226,666). This represents a net asset value per share of 26.3p (2002 – 35.1p). This excludes the value of our intellectual property that is not reflected in the group balance sheet. Our cash position amounted to £7,513,663 which represents a cash value per share of 25.3p.
Proposed distribution to shareholders
Following the Extraordinary General Meeting held on 27 March 2003 at which the resolution to cancel the share premium account was approved, we are making progress with the proposed distribution of up to £3 million to shareholders. On 24 June 2003 we obtained an order from the Court of Session in Edinburgh confirming the cancellation of the share premium account of the company. This creates sufficient distributable reserves to achieve the proposed distribution. Further details regarding this proposal will be sent to shareholders during July 2003.
Dividend
Dividend policy continues to be as previously stated, with no dividend being paid.
Paul McCaffrey
Finance Director
26 June 2003
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CHIEF EXECUTIVE’S STATEMENT
GROUP PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2003
GROUP BALANCE SHEET
at 31 March 2003
GROUP STATEMENT OF CASHFLOWS
for the year ended 31 March 2003
NOTES
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