Notes to the Financial Statements



1                     TURNOVER

 

The group’s turnover and loss on ordinary activities before taxation were all derived from its principal activity.  Sales were made in the following geographical markets:

 

 

2001 

£ 

2000 

£ 

 

 

 

 

 

United Kingdom

1,399,136 

611,305 

 

Other

17,473 

27,752 

 

 

                

              

 

 

1,416,609 

639,057 

 

 

                

              

 

 

 

 

 

Publishing

1,065,663 

629,942 

 

Events

215,182 

4,265 

 

Other

135,764 

4,850 

 

 

                

              

 

 

1,416,609 

639,057 

 

 

                

              

 

 

 

 

Further segmental information has not been given since, in the opinion of the directors, this might be seriously prejudicial to the commercial interests of the group.

 

2            

OPERATING EXPENSES (NET)

2001 

£ 

2000 

£ 

 

 

 

 

 

Other operating income

(27,921)

 

Administration expenses

797,940 

473,994 

 

 

                

                

 

 

770,019 

473,994 

 

 

              

              

 

3            

INTEREST RECEIVABLE

2001 

£ 

2000 

£ 

 

 

 

 

 

Bank interest

9,800 

30,298

 

 

               

              

 

4            

LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION

2001 

£ 

2000 

£ 

 

 

 

 

 

Loss on ordinary  activities before taxation is stated after

charging:

 

 

 

Depreciation and amounts written off tangible fixed assets

14,041 

10,756 

 

Amortisation of intangible fixed assets

139,625 

57,762 

 

Operating lease rentals:

 

 

 

  Land and buildings

25,083 

 

Auditors’ remuneration : audit services

17,000 

19,000 

 

                                       : non-audit services

16,355 

10,750 

 

 

               

              

 


 


5                   

EMPLOYEES

2001 

No. 

2000 

No. 

 

The average monthly number of persons (including directors) employed by the group during the year was:

 

 

 

   Office and management

15 

14 

 

 

               

              

 

 

 

2001 

£ 

2000 

£ 

 

Staff costs for the above persons:

 

 

 

   Wages and salaries

443,215 

237,592 

 

   Social security costs

41,454 

24,880 

 

 

              

              

 

 

484,669 

262,472 

 

 

               

               

 

DIRECTORS’ REMUNERATION

 

 

 

 

 

 

 

In respect of the directors of Electric Word Plc

 

 

 

 

 

 

2001 

 

 

2000 

 

 

 

 

Salary 

£

Bonus

£

Total

£

Salary

£

Bonus

£

Total

£

 

 

 

 

 

 

 

 

 

 

JJC Turner

 

63,333 

5,850 

69,183 

40,462 

40,462 

 

SR Stein

 

38,000 

38,000 

35,273 

35,273 

 

E Tranham

 

38,000 

10,000 

48,000 

17,481 

8,667 

26,148 

 

NW Wray

 

 

A Ageh

 

 

P Rigby

 

 

 

 

             

           

             

           

           

           

 

 

 

139,333 

15,850 

155,183 

93,216 

8,667 

101,883 

 

 

 

             

           

             

           

           

           

 

The comparative figures represent directors’ remuneration for the period from appointment and do not represent a full year’s charge.

 

6            

TAXATION

2001 

£ 

2000 

£ 

 

 

 

 

 

UK corporation tax

 

 

 

Prior year under provision

251 

 

 

              

              

 

There is no corporation tax charge for the current year due to the availability of accumulated losses. Accumulated losses for the group at 30 November 2001 were approximately £1,300,000 (2000: £600,000).

 


 

7                     LOSS PER ORDINARY SHARE

 

The calculation of loss per ordinary share is based on the following losses and numbers of shares.

 

 

 

 

 

Basic 

2001 

£ 

Basic 

2000 

£ 

 

 

 

 

 

 

 

Loss for the financial year

 

 

(892,612)

(326,081)

 

 

 

 

               

               

 

 

 

 

 

 

 

 

 

 

2001 

No. of 

shares 

2000 

No. of 

shares 

 

 

 

 

 

 

 

Weighted average number of shares

 

 

72,150,180 

52,575,538 

 

 

 

 

                  

                  

 

There is no dilutive effect from the issue of share options, warrants or the future redemption of convertible loan stock.

 

8         

INTANGIBLE FIXED ASSETS

Goodwill 

£ 

Magazines  

£ 

Total  

£ 

 

GROUP

 

 

 

 

Cost

 

 

 

 

1 December 2000

1,338,246 

50,000 

1,388,246 

 

Additions

8,000 

8,000 

 

 

                

              

                

 

30 November 2001

1,346,246 

50,000 

1,396,246 

 

 

                

              

                

 

Amortisation

 

 

 <