MASTERMAILER HOLDINGS PLC: Half-yearly Report

Mastermailer Holdings plc ("the Company")                    


           Interim results for the six months ended 31 December 2012           

CHAIRMAN'S STATEMENT
    Financial data and operating highlights (unaudited)


 £000's                                           2012    2011    2010    
2009 
                                                                           
  Turnover                                          445     631     618     598 
Gross Profit                                      146     232     230     255 
Overheads                                       (161)   (154)   (198)   (192) 
Operating (loss) profit before exceptional       (15)      78      32      63
  items                                                                         


                                                                               

The trend of lower sales in the first three months of the year continued into
the second quarter of our half-year results to December last.  As such our
turnover fell from £630,728 in the same period of 2011 to £444,707 this time
around.  This brought about a loss for the period of £15,124 against a profit
of £78,477 last time.

In the main, the fall in sales is attributed to tough market place competition
which has necessitated lowering prices to offset any further erosion in
turnover. Unfortunately, even though we continue to cut our overhead running
costs we have been unable, as of yet, to stabilise the situation by negotiating
lower prices for our mailer products.

In addition, under exceptionals, we have been obliged to protect the Company
against threats of Patent infringement litigation at a significant cost to
ourselves in legal fees.  However the main increase in our overheads is
attributed to the start-up costs of £30,000 of our new MasterEpay business. 

We were anticipating that the legal payments, due to inherited patent matters,
would be at an end last year but they are proving difficult and we are still
having to work hard to bring them to a satisfactory conclusion. As you will be
aware all outstanding legal problems stem from the legacy left or created by
the previous Board of directors, who were dismissed from the Company back in
December 2008.

On a brighter note I am pleased to report that sales have started to recover
slightly in the third quarter of the year and we are hopeful that the trend
will continue for the next three months. However I cannot see us being able to
make-up the losses incurred in the first half of 2012-2013.

We have done a great deal of ground work on the MasterEpay venture we initiated
last year and now that the teething problems we encountered have been overcome
we are confident the next three months will see a marked improvement with a big
marketing push to potential customers starting in May this year. We already
have the agreement of several small companies to sign up with us whereby their
employees will in future receive their pay advice via email rather than by post
or the traditional hand delivered paper payslip.

The introduction of a new e-pay service is definitely the way forward though
the change of switching from hand-held payslips, to email or i-phone advice
instead, has been met with a little more reluctance than expected, it has also
come at a time of sweeping legislation, that includes real time initiative
(RTI), which will be become obligatory in April this year. This will enable the
revenue to look at the tax affairs of employees at any given time. Our e-pay
system will fit in well with this new legislation as will invoicing by way of
e-billing, which is another piece of Government red tape that all companies
will have to provide for this year.

John Cunningham
Chairman
28 March 2013

 
CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                             Six months    Six months        Year
                                            ended 31      ended 31    ended 30
                                            December      December        June
                                                2012          2011        2012
                                                                              


                                               £             £           
£ 


                                                                              
                                         (unaudited)   (unaudited)   (audited)
                                                                              
                                                                              
                                                                              
                                                                              


                                                                          
TURNOVER                                     444,707       630,728   1,361,495 
                                                                          
Cost of sales                              (298,809)     (398,752)   (880,193) 
                                                                          
GROSS PROFIT                                 145,898       231,976     481,302 
                                                                          
Administrative expenses                    (161,022)     (153,499)   (319,790) 


                                                                              
                                            (15,124)        78,477     161,512


                                                                          
Exceptional item                            (94,247)      (62,570)   (116,954) 
                                                                          
OPERATING PROFIT/(LOSS)                    (109,371)        15,907      44,558 
                                                                          
Interest payable and similar                (20,260)      (14,557)    (32,015)
charges                                                                        
                                                                          
PROFIT/(LOSS) ON ORDINARY                  (129,631)         1,350      12,543
ACTIVITIES BEFORE TAXATION                                                     
                                                                          
Tax on profit/(loss) on ordinary                   -             -           -
activities                                                                     
                                                                          
PROFIT/(LOSS) FOR THE PERIOD               (129,631)         1,350      12,543
AFTER TAXATION                                                                 
                                                                          
PROFIT/(LOSS) PER SHARE -                                                      
                                                                          
Basic                                        (0.83)p         0.01p       0.08p 
                                                                          
Diluted                                      (0.77)p         0.01p       0.07p 


                                                                              
                                                                              


                                                                          
CONSOLIDATED BALANCE SHEET 


                                    31 December 2012            30 June 2012      
                                                                               


                                  £             £           £            
 £ 


                                                                               
                                    (unaudited)                (audited)       
                                                                               
                                                                               


                                                                           
FIXED ASSETS                                                                    
                                                                           
Intangible fixed assets                       172,896                   182,358 
                                                                           
Tangible fixed assets                           3,057                     3,508 


                                                                               
                                              175,953                   185,866


                                                                           
CURRENT ASSETS                                                                  
                                                                           
Stocks                           20,778                    25,603               
                                                                           
Debtors                         186,060                   331,133               
                                                                           
Cash at bank and in hand            952                     1,452               


                                                                               
                                207,790                   358,188              
                                                                               


                                                                           
CREDITORS                                                                       
                                                                           
Amounts falling due           (671,281)                 (701,961)              
within one year                                                                 
                                                                           
NET CURRENT LIABILITIES                     (463,491)                 (343,773) 
                                                                           
NET LIABILITES                              (287,538)                 (157,907) 
                                                                            
CAPITAL AND RESERVES                                                            
                                                                           
Called up share capital                       156,253                   156,253 
                                                                           
Deferred shares                               704,468                   704,468 
                                                                           
Share premium account                       1,177,449                 1,177,449 
                                                                           
Profit and loss account                   (2,325,708)               (2,196,077) 
                                                                           
SHAREHOLDERS' DEFICIT                       (287,538)                 (157,907) 
                                                                            
CONSOLIDATED CASHFLOW STATEMENT 
                                          Six months    Six months        
Year 
                                            ended 31      ended 31       
ended 
                                            December      December     30 
June 
                                                2012          2011        
2012     
                                                                             
                                                      £             £         
£ 
                                                                             
                                            (unaudited)   (unaudited)   
(audited) 


                                                                                
                                                                                   


                                                                                
Net cash flow from operating activities           11,540        17,659    
(48,027) 
                                                                             
Returns on investments and servicing of         (20,260)      (14,557)    
(27,687)
finance                                                                          
                                                                                
Taxation                                               -             -          
 - 
                                                                             
Capital expenditure and financial                      -             -       
(750)
investment                                                                       
                                                                                
CASH (OUTFLOW)/INFLOW BEFORE FINANCING           (8,720)         3,102    
(76,464) 
                                                                             
Financing                                              -             -          
 - 
                                                                             
INCREASE/(DECREASE) IN CASH IN THE PERIOD        (8,720)         3,102    
(76,464) 


                                                                                
                                                                                   
                                                                                   
    RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT


                                         Six months      Six months        
Year 
                                           ended 31        ended 31    
ended 30 
                                      December 2012   December 2011   June 
2012 


                                                                                
                                                          £               £       
    £
                                                                                


                                            (unaudited)     (unaudited)   
(audited) 


                                                                                
                                                                                    
                                                                                    
                                                                                    
                                                                                    


Increase/(decrease) in cash in the              (8,720)           3,102    
(76,464)
period                                                                           
                                                                                 
MOVEMENT IN NET DEBT IN THE PERIOD              (8,720)           3,102    
(76,464) 
                                                                             
Net debt at the start of the period           (270,206)       (193,742)   
(193,742) 
                                                                             
NET DEBT AT THE END OF THE PERIOD             (278,926)       (190,640)   
(270,206) 


                                                                                
                                                                                    
                                                                                    
    
    

NOTES TO THE FINANCIAL INFORMATION


The results for the half years ended 31 December 2012 and 31 December 2011 are
unaudited and do not constitute statutory accounts within the meaning of
section 434 of the Companies Act 2006. The Group's auditors have not reviewed
the unaudited interim results. 
The financial information for the ended 30 June 2012 has been extracted from
the statutory accounts for that year. 
The accounting policies used in the preparation of the audited financial
statements as at 30 June 2012 have been used in the preparation of this report.
These policies are in accordance with United Kingdom Generally Accepted
Accounting Practices (UK GAAP). 
The directors of the Company take responsibility for this announcement. 


    

Enquiries:
    Jim Perry                  Mastermailer Holdings plc        01295 724 519


                                                               
Jo Turner or Liam Murray   Cairn Financial Advisers LLP     020 7148 7900 


                                                                   
                                                                   


                                                               
END 
-0- Mar/28/2013 07:00 GMT
 
 
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