LONDON, July 5, 2001 (PRIMEZONE) - Scoot.com (Nasdaq:SCOP).
Key Highlights of Q1:
-- Group EBITDA loss reduced by 22% to 9.5m pounds in Q1 2001,
compared to 12.2m pounds in Q5 2000
-- Total group revenues up 8% to 9.6m pounds in Q1 2001, compared to
8.9m pounds in Q5 2000
-- EPS loss of (2.11)p before goodwill amortization and exceptional
items reduced by 21% compared to a loss of (2.66)p in Q5 2000
Commenting on today's results, Dick Eykel, Executive Chairman, Scoot.com said: "Despite the challenges we have faced during the first few months of the year, we have nonetheless seen positive progress in some key areas of our business, such as loss reduction and increasing print circulation.
We are developing a number of initiatives that resulted from the strategic review that we began in the first half of 2001. As a result, our attention for the remainder of 2001 will be specifically on our existing markets and in particular on the UK. In the immediate future, the management team is focused on raising sufficient finance to meet the Company's near-term working capital requirements and the implementation of significant cost-cutting measures to ensure the Company can be taken forward from a solid base."
Note to the Editors:
Scoot.com is a European info-mediary company, facilitating transactions between buyers and sellers through a range of access channels. Scoot operates in the UK, the Netherlands, Belgium and France.
Scoot is quoted on the London Stock Exchange (SCO.L) and on Nasdaq (SCOP), www.scoot.com/plc.
Trading Review
Total Group revenues for Q1 2001 amounted to 9.6m pounds compared to 8.9m pounds for Q5 2000. This increase is a result of the improved performance of the Loot print operations, both in the UK and overseas, where Q5 2000 figures were impacted by normal seasonal issues. The decrease in Scoot (UK) revenue from 1.7m pounds in Q5 2000 to 1.4m pounds in Q1 2001 is due to lower income from fixed revenue, reflecting the impact of back office system constraints. Q1 2001 variable transaction revenue remained in line with Q5 2000.
Group EBITDA loss improved by 22% to 9.5m pounds compared to Q5 2000. Net loss for the Group for Q1 2001 amounted to 24.3m pounds, versus 33.0m pounds in Q5 2000. This reduction in net loss is due to the improved EBITDA, which mainly results from the absence of additional year-end head office accruals and exceptional items that were present in Q5 2000.
On March 31, 2001, the Group had 16.9 million pounds of free cash. As of June 29, 2001 free cash had reduced to 7m pounds, which is the cash available for the ongoing management of the business.
On March 31, 2001, the Scoot (UK) seller base was 70,536. This figure comprises 18,228 charging sellers and 52,308 non-charging sellers. Non-charging sellers include 17,135 contracted* sellers who have yet to end their payment holiday period, 22,070 Loot sellers who have agreed to be published on the Scoot system on a 3 month free trial basis and a further group of 13,103 sellers who are on other free trial arrangements and who will be contacted with the intention of converting them into charging sellers.
Convertible Debentures and Extraordinary General Meeting Listing particulars were sent to shareholders on June 27, 2001, containing a notice of an Extraordinary General Meeting, to be held on July 20, 2001, to consider the potential issue of up to 154,921,535 new ordinary shares following the May 28, 2001 reset of the conversion price at which the convertible debentures convert into ordinary shares under the terms of the convertible debentures and subscription agreement as of July 22, 1999. Following conversion of approximately 4m pounds of these convertible debentures on June 4, 2001, the outstanding value of the convertible debentures, as of July 4, 2001, was approximately 14m pounds.
The next reset of the conversion price for the convertible debentures is August 28, 2001. If the Company's average closing bid price for the 10 trading days prior to this date is lower than 13.6p per ordinary share, under the terms of the convertible debentures and subscription agreement further approvals may be required from shareholders for the potential issue of additional new ordinary shares, should the Company not choose to settle any new obligation in cash.
Loot Goodwill
In accordance with FRS11, the board of directors is assessing the need for an asset impairment charge relating to the goodwill accounted with Loot. If such a charge is necessary, it will be recorded in the period in which it becomes evident that the carrying value of assets exceeds the estimated future cash flows.
Outlook
The Company's historical technology issues have now been addressed through the development of interim solutions in each operating territory. In the UK, this has allowed Scoot to process the consequential backlog of sellers. As a result of the management team's focus on the existing operations and cost cutting initiatives, the Company's target, subject to the raising of sufficient financing, is for Scoot (UK) to be EBITDA positive excluding exceptional items by Q4 2001, and for the Company to be cash flow positive in Q4 2002.
* Contracted sellers are subscribers to the Scoot service who have signed a contractual agreement to be published on the system but who are in a payment holiday period.
To view the full release, including tables, please click on the link or visit http://www.buchanan.uk.com.
Attachments: http://reports.huginonline.com/826634/91366.doc