Totalise losses and debts widen
- Added:
- Feb 28, 2001
The company, which has been surviving on financing provided by its chief executive, announced on 20 December that it would be drawing down on the 1.2m loan facility from Gregory, and then on 13 February declared at its EGM that it had sufficient working capital to see it through to positive cash-flow by the end of the year. The news sent its shares up by almost 200% in the space of two days.
The response to the company's interim results for the six months to 31 October 2000 today, however, was less ardent, with shares falling back 12.07% to 12.75p by 2.00 pm.
Losses for the six months stood at 3.28m, more than 68% higher than the 1.95m incurred for the previous 12-month period. Meanwhile, revenues, derived from Totalise's e-commerce subsidiaries, climbed to 1.33m during the half year, compared to 0.87m for the 12 months to 30 April 2000.
Totalise's e-commerce subsidiaries consist of Totalise E-trading, which trades as Totalise Eureka, and imports right-hand drive cars from dealers in Europe, and Totalise Telecommunications, the company's discounted telephone and free internet calls service.
Eureka, which also supplies imported cars to Direct Line's online motoring website, jamjar.com, claims to receive orders for between 30 and 40 cars a month. During the interim period orders for over 8m worth of cars were received.
Meanwhile Totalise Telecommunications, which caused an uproar earlier this year when it limited its ‘unlimited' free internet service to its less heavy users, claims to have over 11,000 subscribers and pulls in revenues of approximately 70,000 a month.
Totalise, which says that its users have almost doubled over the past 12 months, saw 9.05m worth of transactions taking place over its sites in the period under review. This compares to 8.2m for the whole of the previous financial year. Its turnover also indicates that its share of transactions has increased to 14.69% from 10.6% the previous 12 months.
At 31 October 2000, the company's assets had fallen by 10.3% to 933,516 from the 1.04m declared on 30 April, while its debts had increased by 88.4% to 2.6m, leaving the company with net current liabilities of 1.67m.