FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of April, 2004
Commission File Number: 000-28994
Eidos plc
Wimbledon Bridge House,
1 Hartfield Road, Wimbledon,
London, United Kingdom
44 208 636 3000
(Address of principal executive offices)
| Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. |
Form 20-F [X] Form 40-F [ ] |
| Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____ |
| Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders. |
| Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____ |
| Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR. |
| Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. |
Yes [ ] No [X] |
| If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- __N/A______ |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Eidos plc | |
By: /S/ Stuart Cruickshank By: /S/ Michael McGarvey | |
| Date: 6 April 2004
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Eidos Plc
Form 6-K
Table of Contents
The following documents were filed as part of this Form 6-K:
Exhibit
Interim Report
> Eidos plc Interim Report 2004
Eidos is one of the world's leading developers and publishers of entertainment software – through the innovation, creation and development of original content – with a quality portfolio of game titles for PC, PlayStation, GameCube, Xbox and N-Gage.
| >About Eidos | >Highlights | ||||
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Eidos is the largest video games developer and publisher in the UK. We have publishing operations across Europe (France, Germany, Spain, UK) and in the US, Japan and Australia. We also have significant development studio expertise, both internal and external, in Europe and the US. Eidos employs over 600 people worldwide.
>Our Vision Our aim is to be the No. 1 provider of original content to the entertainment software market.
| > | Operating Profit pre goodwill and exceptionals up 30% to £7.1million | |||
| > | 10 new products (23 skus) released on schedule | ||||
| > | Continued rigorous cost control | ||||
| > | Profit after tax up 42% to £6.2 million | ||||
| > | Gross margin improvement from 51.3% to 62.2% | ||||
| > | Strong operating cash inflow and cash funds | ||||
| > | Further major franchise titles due for release in second half | ||||
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| Eidos Eidos is a public limited company registered in England (number 2501949). Its ordinary shares are listed on the London Stock Exchange (ticker: EID.L) and, in the form of American Depositary Shares, on the NASDAQ National Market (symbol: EIDSY). Eidos plc is the parent company of the Eidos Group of companies. Unless otherwise stated, the text in this Interim Report does not distinguish between the activities and operations of the parent company and those of its subsidiary undertakings. This is the Company's Interim Report for the six month period ended 31 December 2003 and complies with UK regulations. It is also available on the Company's website at www.eidos.com A separate Form 6-K has been prepared for the same period to meet US regulations and was filed with the US Securities and Exchange Commission (SEC) earlier in March 2004. Eidos and the Eidos logo are registered trademarks of Eidos plc. All other trademarks are the property of their respective owners. All rights reserved. | Forward-looking Statements This statement contains information about our past performance or practices. No such information should be used as an indicator of future performance or practices. It may also contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. You can identify these statements by their use of words such as "will", "anticipate", "estimate", "expect", "project", "intend", "plan", "should", "may", "assume" and other similar words. You should not place undue reliance on our forward-looking statements, which are not a guarantee of future performance and are subject to factors that could cause our actual results to differ materially from those expressed or implied by these statements. Such factors include: general economic conditions in the Group's markets, particularly levels of consumer spending; exchange rates, particularly between the pound sterling and the U.S. dollar, in which the Group makes significant sales; the Group's ability to continue to win acceptance of its products, which are offered in highly competitive markets characterized by continual new product introductions, rapid developments in technology and subjective and changing consumer preferences (particularly in the entertainment business); the Group's ability to attract and retain qualified personnel; risks of doing business internationally; and other risks described from time to time in Eidos plc's Securities and Exchange Commission periodic reports and filings. We undertake no obligation to update our forward-looking statements, whether as a result of new information, future events or otherwise. No information contained in this statement constitutes or shall be deemed to constitute an invitation or otherwise to deal in shares or ADRs of Eidos plc. The price of shares and income derived from them can go down as well as up. | ||||
| >Letter from the Chairman | "This impressive performance represents our third consecutive profitable six month period and is further evidence that the Company is delivering the benefits of the many operational improvements, both in development and publishing, made over the past three years." |
| Overview of Results This impressive performance represents our third consecutive profitable six month period and is further evidence that the Company is delivering the benefits of the many operational improvements, both in development and publishing, made over the past three years. In particular, the steps taken by the Company to reduce delays through an improved development process, resulted in the on-schedule release of all games during the period. It is the Company's aim to deliver further improvements as its Operational Excellence programme, launched last year, begins to deliver tangible results. Turnover for the six month period reduced from £88.9 million in 2002 to £78.7 million in 2003 largely due to the adverse impact caused by the weakening of the US dollar, US hardware sales falling short of market forecasts and two titles achieving lower than anticipated sales. Cash inflow from operating activities during the period amounted to £4.2m (2002: £0.0m), with cash and cash equivalents at 31 December 2003 being £58.1m (2002: £60.4m). Strategic Progress In line with this strategy, I am pleased to confirm that on 3 March 2004 the Company entered into a conditional agreement to acquire IO Interactive A/S, the Danish based studio which, together with Eidos, has been responsible for the development of the hugely successful Hitman franchise. This acquisition (as detailed in Note 11 to the interim accounts on page 11) secures the rights to the Hitman series and significantly strengthens the Group's European creative base and development resources. The relationship and experience we have already shared with IO over the past five years gives us great confidence in their ability not only to maintain the outstanding success of Hitman, but also to develop new titles of unique IP. In addition, IO's market leading technology will be a key element in the Group's transition to next generation platforms.
| Management and People New Corporate Investor Relations Website (www.eidos.com) Outlook The Board intends to continue to build upon the successes of the first six months of the financial year and your directors remain confident in meeting current market expectations for the full year to 30 June 2004.  John van Kuffeler
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> 1 Eidos plc Interim Report 2004
| > Operational Review | "The Company continues to make operational improvements in the business and has also increased its R&D expenditure to reflect the continued investment in the forward product pipeline."
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| Introduction The Company has continued to make good progress in the achievement of its strategic objectives and is pleased to report a third consecutive profitable six month period. Particularly pleasing is the significant increase in operating profits pre goodwill and exceptionals, which were 30% ahead of the equivalent period last year at £7.1 million (2002: £5.4 million)1. This progress is further evidence that the Company is delivering the benefits of the many operational improvements, in both development and publishing, made over the past three years. In particular, the steps taken by the Company to reduce delays through an improved development process, has resulted in the on-schedule release of all games during the period. It is the Company's aim to deliver further improvements as its Operational Excellence programme, launched last year, begins to deliver tangible results. Review of Operational Performance The factors referred to above, combined with US hardware sales falling short of market forecasts and the adverse impact caused by the weakening of the US dollar, have resulted in turnover in the period of £78.7 million, lower than the £88.9 million reported in the same period last year. Gross margin for the six months to 31 December 2003 increased to 62.2% compared to 51.3% for the same period last year. This was due to the higher proportion of internally developed titles as well as a greater proportion of PC based games. Gross margins for the full year are now set to exceed 2003 levels. As mentioned earlier, the Company continues to make operational improvements in the business and has also increased its R&D expenditure to reflect the continued investment in the forward product pipeline. | Total operating expenses before goodwill were £44.1 million (2002: £42.9 million)2. Sales and marketing costs in the period were £13.1 million (2002: £15.0 million), reflecting a consistent level of marketing and advertising to support new releases. Research and development, representing the Group's total investment in product development, totalled £20.1 million (2002: £18.2 million). This reflects a move back to expected levels of investment, and underlines the Group's commitment to delivering future growth. General and administrative costs for the period were £10.9 million (2002: £9.7 million). Of the increase, £0.7 million was attributable to a transaction loss on foreign exchange of £0.3m, compared to a £0.4m gain in 2002. Management remains committed to continuing the tight control of its overhead cost base. The goodwill amortisation charge of £0.1 million (2002: £0.1 million) relates to the 2001 acquisition of Ion Storm. The Group's share of profits arising from the distribution activities of its Spanish joint venture partner, Proein, was £2.1 million during the period (2002: £2.7 million) and reflects a return to more normal levels of activity in Proein in the period. Profits at Proein have historically been significantly biased towards the first half. The profit per share excluding goodwill amortisation was 4.6p (2002: 3.6p); including goodwill amortisation it was 4.5p (2001: 3.2p). Financing and Cashflow Reduction in the Share Premium Account
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1Operating profit (pre goodwill and exceptionals) of £7.1 million (2002: £5.4 million) is derived from a total operating profit from continuing operations of £6,930,000 (2002: £4,814,000), adjusted for amortisation of goodwill of £126,000 (2002: £134,000) and joint venture goodwill amortisation of £nil (2002: £471,000). |
2 Total operating expenses before goodwill of £44.1 million (2002: £42.9 million) is derived from operating expenses of £44,201,000 (2002: £43,065,000) adjusted for amortisation of goodwill of £126,000 (2002: £134,000). |
> 2 Eidos plc Interim Report 2004
| Exceptional Items There were no exceptional items during the period. In the period to 31 December 2002 the Group received a £1.4 million litigation settlement, net of costs, in respect of its investment in Express.com. Taxation The Group recorded a tax charge of £1.6 million for the period. Included within this sum is £0.4 million in respect of the Group's share of profits in its joint venture, Proein, £1.3 million relating to the Group's current year tax charge for the six months, and the balance relating to the release of provisions in respect of prior years. The availability of tax losses within the Group means that the effective rate of tax is expected to remain slightly below 25% for the full year. Dividends No interim dividend has been paid or declared during the period (2002: £nil). Intellectual Property (IP) Management On 30 January 2004, Eidos announced the official launch of its North London based Beautiful Game Studios, created to continue the development of the Company's best selling Championship Manager football management series. The next edition of the game, Championship Manager 5, is currently under development and will be launched in Autumn 2004. The creation of Beautiful Game Studios follows Eidos' announcement on 4 September 2003 that it had, by mutual agreement, ended its existing developer relationship with Sports Interactive. The Crystal Dynamics Studio in the US is making good progress in the development of the next Tomb Raider game, scheduled for release during financial year 2005. Crystal Dynamics also delivered a new franchise, Whiplash, during the period in addition to Legacy of Kain for the US market. Deus Ex: Invisible War is set for release in Europe on 6 March following its successful US release in the first half. Following the transfer of the Tomb Raider franchise to Crystal Dynamics, the Core Design studio, previously responsible for Tomb Raider, has been restructured and refocused and retains a high quality, motivated development team. A number of new concept ideas for this studio are currently under review. During the period, the Company continued to leverage the value from its own IP with a movie deal being entered into for Fear Effect (similar to those previously entered into for Tomb Raider and Deus Ex) together with a number of further license deals for the Tomb Raider franchise. | New Media Division On 28 October 2003, Eidos announced the launch of its New Media Division. The Division was created to drive New Media opportunities within the core business, allowing Eidos to extend its intellectual property into markets enabled by new technologies. During the period, Eidos published two launch titles for Nokia's N-Gage, Tomb Raider and Pandemonium, with Tomb Raider quickly establishing itself as the number one selling game on that platform. Eidos also launched three Tomb Raider games on Vodafone live!, each of which topped the charts at launch. A similar license agreement has recently been concluded with AT&T Wireless. Overall, the New Media Division is gaining momentum and exploring several new commercial opportunities in the New Media gaming environment. Board Changes On 15 July 2003, the Board announced that Jeremy Heath-Smith, Development Director of Eidos and Managing Director of Core Design Limited, was stepping down from the Boards of both companies with immediate effect. On 28 October, Jonathan Kemp, European Managing Director, was promoted to the Eidos Board with effect from 1 December 2003. At the same time, the Company also announced that Simon Protheroe would immediately step down from the Eidos Board following his appointment as head of the New Media Division. Current Trading and Future Prospects During the second half of this financial year, the Company expects to release a further 23 skus (6 products), including Thief: Deadly Shadows, ShellShock: Nam '67 (previous working title: Tour of Duty) and, on 30 April, the next sequel in the highly successful Hitman franchise, Hitman: Contracts. Based on trading performance to date and the strength of the forthcoming release schedule in the second half, the Board remains confident in meeting current market expectations for the full year to 30 June 2004.  Michael McGarvey Chief Executive Officer |
> 3 Eidos plc Interim Report 2004
> Unaudited Consolidated Profit and Loss Account
| 6 months to 31 December 2003 | 6 months to 31 December 2002 |
| Notes | £'000 | £'000 | |||
| Turnover: Group and share of joint ventures | 91,450 | 102,167 | |||
| Less: share of joint ventures' turnover | (12,703 | ) | (13,228 | ) |
| Group Turnover – Continuing Operations | 2 | 78,747 | 88,939 | ||
| Cost of sales | (29,744 | ) | (43,281 | ) |
| Gross Profit | 49,003 | 45,658 | |||
| Sales and marketing | (13,081 | ) | (14,965 | ) | |
| Research and development | (20,068 | ) | (18,238 | ) | |
| Administrative expenses | |||||
| Amortisation of goodwill | (126 | ) | (134 | ) | |
| Other | (10,926 | ) | (9,728 | ) |
| Total administrative expenses | (11,052 | ) | (9,862 | ) |
| Operating expenses | (44,201 | ) | (43,065 | ) |
| Group Operating Profit | 4,802 | 2,593 | |||
| Share of operating profit of joint venture | 2,128 | 2,692 | |||
| Joint venture goodwill amortisation | – | (471 | ) |
| Total Operating Profit from Continuing Operations | 6,930 | 4,814 | |||
| Profit on disposal of investment before goodwill | 488 | – | |||
| Less: related goodwill (previously written off to reserves) | (488 | ) | – | ||
| Profit on disposal of investment after goodwill | 3 | – | |||
| Exceptional item | 3 | – | 1,441 | ||
| Interest receivable and similar income | 1,020 | 1,025 | |||
| Interest payable and similar charges | (124 | ) | (612 | ) |
| Profit on Ordinary Activities Before Taxation | 7,826 | 6,668 | |||
| Tax charge on profit on ordinary activities | 4 | (1,577 | ) | (2,254 | ) |
| Profit on Ordinary Activities After Taxation | 6,249 | 4,414 |
| Earnings per share | 5 | 4.5p | 3.2p | ||
| Earnings per share before goodwill | 5 | 4.6p | 3.6p | ||
| Diluted earnings per share | 5 | 4.4p | 3.1p |
>4 Eidos plc Interim Report 2004
> Unaudited Consolidated Balance Sheet
| As at 31 December 2003 | As at 31 December 2002 |
Restated (Note 1) | |||||
| Notes | £'000 | £'000 | |||
| Fixed Assets | |||||
| Intangible assets | 115 | 389 | |||
| Tangible assets | 4,786 | 4,832 | |||
| Investments | |||||
| Joint venture | |||||
| Share of gross assets | 6,400 | 7,381 | |||
| Share of gross liabilities | (2,306 | ) | (2,849 | ) |
| 4,094 | 4,532 | ||||
| Interest in associated undertaking | – | 1 |
| Total Fixed Assets | 8,995 | 9,754 |
| Current Assets | |||||
| Stocks | 3,476 | 4,439 | |||
| Debtors | |||||
| Due within one year | 6 | 35,693 | 29,129 | ||
| Due after one year | 6 | 45 | 645 | ||
| Cash at bank and in hand | 58,057 | 60,412 |
| Total Current Assets | 97,271 | 94,625 | |||
| Creditors:amounts falling due within one year | 7 | (27,036 | ) | (41,705 | ) |
| Net Current Assets | 70,235 | 52,920 |
| Total Assets Less Current Liabilities | 79,230 | 62,674 | |||
| Creditors: amounts falling due after more than one year | 7 | – | (956 | ) | |
| Provisions for Liabilities and Charges | – | (1,246 | ) |
| Net Assets | 79,230 | 60,472 |
| Capital and Reserves | |||||
| Called up share capital | 2,806 | 2,798 | |||
| Share premium account | 138,386 | 138,235 | |||
| Other reserves | 690 | 707 | |||
| Profit and loss account | (59,891 | ) | (81,023 | ) | |
| Reserve for own shares | (2,761 | ) | (245 | ) |
| Equity Shareholders' Funds | 8 | 79,230 | 60,472 |
>5 Eidos plc Interim Report 2004
> Unaudited Consolidated Cash Flow Statement
| 6 months to 31 December 2003 | 6 months to 31 December 2002 |
| Notes | £'000 | £'000 | |||
| Net Cash Inflow/(Outflow) from Operating Activities | 9 | 4,211 | (27 | ) |
| Dividends from Joint Ventures and Associates | 30 | – |
| Returns on Investments and Servicing of Finance | |||||
| Interest received | 812 | 1,067 | |||
| Bank interest and finance charges paid | (81 | ) | (183 | ) | |
| Interest element of finance lease rentals | (5 | ) | (17 | ) |
| 726 | 867 |
| Taxation | |||||
| UK tax (paid)/repaid | (1 | ) | 283 | ||
| Overseas tax paid | (1,652 | ) | (16 | ) |
| (1,653 | ) | 267 |
| Capital Expenditure and Financial Investment | |||||
| Purchase of tangible fixed assets | (1,296 | ) | (1,072 | ) | |
| Sale of tangible fixed assets | 2 | 17 | |||
| Proceeds from other investments | – | 1,441 |
| (1,294 | ) | 386 |
| Acquisitions and Disposals | |||||
| Sale of associate | 488 | – |
| Net Cash Inflow Before Management of Liquid Resources and Financing | 2,508 | 1,493 | |||
Management of Liquid Resources | |||||
| (Increase)/decrease in short term deposits | (2,507 | ) | 7,207 |
| Financing | |||||
| Issue of ordinary share capital | 61 | 130 | |||
| Capital element of finance lease payments | (42 | ) | (111 | ) | |
| Purchase of own shares | (2,485 | ) | – |
| (2,466 | ) | 19 |
| (Decrease)/Increase in Net Cash in the Period | (2,015 | ) | 8,719 |
>6 Eidos plc Interim Report 2004
> Notes to the Accounts
| 1. Accounting Policies |
The financial statements have been prepared on the basis of the accounting policies set out on pages 24 and 25 of the Eidos plc Report and Accounts for the year ended 30 June 2003, which have been applied consistently throughout the period, except as noted below. |
| Own shares |
Own shares held by the Company's Employee Benefit Trust were previously classified under UITF 13 as fixed asset investments. For the shares that relate to the restricted stock scheme or the performance share plan, as prescribed by UITF 17, the difference between their market value at the date of grant and their exercise price is being charged to the profit and loss account over three years, the performance period of each scheme. UITF 38 – Accounting for ESOP Trusts, which has been adopted, has superseded UITF 13. The effect of adoption is to show the consideration paid by the Company for investments in its own shares as a deduction in arriving at shareholders' funds, instead of fixed assets. This has resulted in fixed asset investments of £199,000 being transferred to an Own shares reserve. As there is a requirement in UITF 38 to disclose the historic cost of own shares held, a further adjustment of £77,000, being the cumulative UITF 17 charge to date, has been reclassified from the Profit and loss reserve to Own shares reserve. The adjustments made for the adoption of UITF 38 are shown in note 8. |
| 2. Segmental Analysis |
Segmental Analysis by Class of Business Segmental Analysis by Geographical Area |
| By Destination | By Origin |
6 months to | 6 months to 31 December 2002 | 6 months to 31 December 2003 | 6 months to 31 December 2002 |
| Turnover – Continuing Activities | £'000 | £'000 | £'000 | £'000 |
| United Kingdom | 16,731 | 16,062 | 23,714 | 25,295 |
| France | 11,353 | 7,532 | 13,590 | 9,680 |
| Germany | 7,958 | 8,224 | 8,806 | 9,178 |
| Rest of Europe | 11,130 | 10,216 | – | – |
| United States of America | 25,636 | 41,218 | 29,426 | 42,775 |
| Rest of World | 5,939 | 5,687 | 3,211 | 2,011 |
| 78,747 | 88,939 | 78,747 | 88,939 |
| 6 monthsto 31 December 2003 | 6 months to 31 December 2002 |
| Profit/(Loss) Before Interest and Taxation | £'000 | £'000 | ||
|---|---|---|---|---|
| United Kingdom | 1,662 | 510 | ||
| France | 1,519 | 34 | ||
| Germany | (102) | (614) | ||
| Spain (joint venture) | 1,904 | 2,221 | ||
| United States of America | 1,838 | 4,423 | ||
| Rest of World | 109 | (319) |
| 6,930 | 6,255 |
>7 Eidos plc Interim Report 2004
> Notes to the Accounts
continued
2. Segmental Analysis (Continued)
| As at 31 December 2003 | As at 31 December 2002 |
| Restated | ||||
| Net Assets/(Liabilities) | £'000 | £'000 | ||
| United Kingdom | 95,500 | 85,468 | ||
| France | 4,554 | 1,759 | ||
| Germany | (1,400 | ) | (939 | ) |
| Spain (joint venture) | 4,094 | 4,532 | ||
| United States of America | (23,446 | ) | (30,426 | ) |
| Rest of World | (72 | ) | 78 |
| 79,230 | 60,472 |
| 3. Profit on Investments and Exceptional Items |
On 4 September 2003, Eidos and Sports Interactive Limited announced an agreement to end their existing relationship for the development of the Company's highly successful Championship Manager football management series. Eidos agreed to surrender its 25% interest in Sports Interactive for a cash consideration of £488,000, generating a nil profit following the transfer of attributable goodwill from reserves of £488,000. During the 6 month period ended 31 December 2002, the Group received a £1.4 million litigation settlement, net of costs, in respect of its investment in Express.com. The Group took an exceptional charge against the full carrying value of this investment in the twelve months to 31 March 2001 and Express.com subsequently filed for Chapter 11 bankruptcy protection. It is not expected that any further sums will be received in relation to this matter. |
4. Taxation
| 6 months to 31 December 2003 | 6 months to 31 December 2002 |
| £'000 | £'000 | |||
| Current Tax | ||||
| UK Taxation | ||||
| UK corporation tax at 30% on profits for the period | 1,166 | – | ||
| Less double tax relief | (150 | ) | – |
| 1,016 | – | |||
| Adjustments in respect of prior periods | ||||
| Operational | (148 | ) | – |
| Total Current UK Tax | 868 | (9 | ) | |
| Foreign taxation | ||||
| Current tax on income for the period | 692 | 992 | ||
| Adjustments in respect of prior periods | – | 11 |
| Total Current Tax | 1,560 | 994 | ||
| Of which | ||||
| Group taxation | 1,184 | 9 | ||
| Joint venture taxation | 376 | 985 |
| 1,560 | 994 | |||
| Deferred taxation | 17 | 1,260 |
| Tax Charge on Profit on Ordinary Activities for the Period | 1,577 | 2,254 |
| Of which | ||||
| Operational | 1,577 | 2,254 |
| Tax Charge on Profit on Ordinary Activities for the Period | 1,577 | 2,254 |
>8 Eidos plc Interim Report 2004
| 5. Earnings Per Share |
The calculations of earnings per share are based on the following information: |
| 6 months to 31 December 2003 | 6 months to 31 December 2002 |
| Weighted Average Number of Shares: | Number of Shares | Number of Shares |
| ||
| For basic earnings per share | 139,745,533 | 139,822,559 |
| Dilutive effect of share options | 1,039,333 | 437,761 |
| For Diluted Earnings Per Share | 140,784,866 | 140,260,320 |
| Basic 6 months to 31 December 2003 | Basic 6 months to 31 December 2002 | Diluted 6 months to 31 December 2003 | Diluted 6 months to 31 December 2002 |
| £'000 | £'000 | £'000 | £'000 | |
| Profit for the Financial Period | 6,249 | 4,414 | 6,249 | 4,414 |
| Goodwill amortisation | 126 | 605 | 126 | 605 |
| Profit for the Financial Period Before Goodwill | 6,375 | 5,019 | 6,375 | 5,019 |
| Pence per Share | Pence per Share | Pence per Share | Pence per Share | |
| Earnings Per Share | 4.5 | 3.2 | 4.4 | 3.1 |
| Goodwill amortisation and exceptional items per share | 0.1 | 0.4 | 0.1 | 0.4 |
| Earnings Per Share Before Goodwill Amortisation | 4.6 | 3.6 | 4.5 | 3.5 |
| 6. Debtors | ||||
|---|---|---|---|---|
| 31 December 2003 | 31 December 2002 | |||
| Due within one year | Due after one year | Due within one year | Due after one year |
| £'000 | £'000 | £'000 | £'000 | |
| Trade debtors | 26,518 | – | 23,675 | – |
| Prepaid licences | – | – | 672 | 502 |
| Other debtors | 5,719 | 45 | 2,045 | 143 |
| Prepayments | 3,456 | – | 2,737 | – |
| 35,693 | 45 | 29,129 | 645 |
>9 Eidos plc Interim Report 2004
> Notes to the Accounts
continued
7. Creditors
| 31 December 2003 | 31 December 2002 |
| Due within one year | Due after one year | Due within one year | Due after one year |
| £'000 | £'000 | £'000 | £'000 | |
| Borrowings | ||||
| Obligations under finance leases | – | – | 88 | 55 |
| – | – | 88 | 55 |
| Other Creditors | ||||
| Bank loans and overdrafts | 39 | – | 52 | – |
| Trade creditors | 7,526 | – | 8,050 | – |
| Royalty creditors | 2,684 | – | 10,124 | – |
| Accruals and deferred income | 7,012 | – | 7,342 | 901 |
| Corporation tax payable | 6,310 | – | 11,673 | – |
| Other creditors | 3,465 | – | 4,376 | – |
| 27,036 | – | 41,617 | 901 |
| 27,036 | – | 41,705 | 956 |
8. Movement in Shareholders' Funds
Ordinary Shares | Own shares | Share | Profit | |||||||||||
| restated | premium | Other | and loss | Total | ||||||||||
| No. of shares | Amount | Amount | account | reserves | account | Restated | ||||||||
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |||||||||
| Balance as at 30 June 2003 | 139,961,523 | 2,799 | – | 138,315 | 707 | (66,044 | ) | 75,777 | ||||||
| Adjustment (see note 1) | – | – | (276 | ) | – | – | 77 | (199 | ) |
| Balance as at 1 July 2003 | 139,961,523 | 2,799 | (276 | ) | 138,315 | 707 | (65,967 | ) | 75,578 | |||||
| Profit for the period | – | – | – | – | – | 6,249 | 6,249 | |||||||
| Translation adjustment | – | – | – | – | – | (725 | ) | (725 | ) | |||||
| Goodwill previously written off | ||||||||||||||
| to reserves, transferred to the | ||||||||||||||
| profit and loss account | – | – | – | – | – | 488 | 488 | |||||||
| Exercise of warrants | 314,485 | 7 | – | 71 | (17 | ) | – | 61 | ||||||
| Purchase of own shares | – | – | (2,485 | ) | – | – | – | (2,485 | ) | |||||
| Cost of employee share options | – | – | – | – | – | 64 | 64 |
| Balance as at | ||||||||||||||
| 31 December 2003 | 140,276,008 | 2,806 | (2,761 | ) | 138,386 | 690 | (59,891 | ) | 79,230 |
>10 Eidos plc Interim Report 2004
9. Reconciliation of Operating Profit to Net Cash Inflow/(Outflow) from Operating Activities
| 6 months to 31 December 2003 | 6 months to 31 December 2002 |
| £'000 | £'000 | |||
| Group operating profit | 4,802 | 2,593 | ||
| Loss/(profit) on disposal of fixed assets | 81 | (38 | ) | |
| Depreciation of tangible fixed assets | 985 | 1,086 | ||
| Amortisation of goodwill | 126 | 134 | ||
| Cost of employee share options | 64 | 31 | ||
| Increase in working capital | (1,847 | ) | (3,833 | ) |
| Net cash inflow/(outflow) from operating activities | 4,211 | (27 | ) |
|---|
10. Analysis of Net Funds
| Exchange and | At 31 | |||||||
| At 30 June | non-cash | December | ||||||
| 2003 | Cashflow | movements | 2003 |
| £'000 | £'000 | £'000 | £'000 | |||||
| Cash at bank and in hand | 27,946 | (1,976 | ) | (335 | ) | 25,635 | ||
| Overdraft | – | (39 | ) | – | (39 | ) |
| 27,946 | (2,015 | ) | (335 | ) | 25,596 | |||
| Short-term deposits and liquid resources | 30,296 | 2,057 | 69 | 32,422 |
| 58,242 | 42 | (266 | ) | 58,018 | ||||
| Finance leases | (23 | ) | 42 | (19 | ) | – |
| Net funds | 58,219 | 84 | (285 | ) | 58,018 |
|---|
| 11. Post Balance Sheet Events |
On 5 February 2004, the High Court approved a reduction in the Company's share premium account of £60 million (following shareholders approval to the proposal at an Extraordinary General Meeting held on 12 December 2003). The reduction was registered at Companies House on 5 February 2004. The purpose behind the reduction was the directors' belief that it was appropriate to provide the Company with additional flexibility for possible distributions to shareholders. This does not imply however any commitment at this stage by the Company in relation to these matters, which the directors will keep under regular review. On 3 March 2004, the Group entered into a conditional agreement to acquire the entire share capital of IO Interactive for an initial consideration of £23.0 million, which will be satisfied by £21.0 million in cash and 1.5 million Eidos shares. Contingent consideration up to £5.0 million in cash is payable dependent upon the number of new game units released in excess of 2.1 million units per annum over the four year period following completion. The interim financial information has been prepared on the basis of the accounting policies set out in the Company's 2003 statutory accounts. Those accounts, on which the auditors issued an unqualified audit opinion, have been delivered to the Registrar of Companies. The above interim financial information does not constitute statutory accounts (as defined in Section 240 of The Companies Act 1985) and is unaudited. However, the information has been reviewed by the auditors and their independent review report to Eidos plc is set out on page 12. The Interim Report for the six months to 31 December 2003 was approved by the Board of Directors on 4 March 2004. |
>11 Eidos plc Interim Report 2004
> Independent Review Report by KPMG Audit Plc to Eidos plc
| Introduction |
We have been engaged by the Company to review the financial information set out on pages 4 to 11 and we have read the other information contained in the Interim Report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. This Report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Listing Rules of the Financial Services Authority. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this Report, or for the conclusions we have reached. |
| Directors' responsibilities |
The Interim Report, including the financial information contained therein, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the Interim Report in accordance with the Listing Rules which require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where they are to be changed in the next annual accounts in which case any changes, and the reasons for them, are to be disclosed. |
| Review work performed |
We conducted our review in accordance with guidance contained in Bulletin 1999/4: Review of interim financial information issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of group management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information. |
| Review conclusion |
On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 31 December 2003. |
 |
| KPMG Audit Plc |
Chartered Accountants |
>12 Eidos plc Interim Report 2004
| > Board of Directors and Shareholder Information
Directors (a)member of the Audit Committee (1)Appointed a Director on 1 December 2003 Company Registrar Share Dealing Service Share Price Information Unsolicited Mail ShareGIFT American Depositary Receipts (ADRs)The Company's shares are listed on the NASDAQ National Market (symbol EIDSY) in the form of Amercian Depositary Shares (ADS), which are evidenced by ADRs, each representing one Ordinary share. The Bank of New York is the authorised Depositary for the Company's ADR programme. The Company's ADS price is quoted daily in the Wall Street Journal and can be obtained from the NASDAQ website at www.nasdaq.com.
Designed and produced by Bexon Woodhouse Creative Consultants Printed by royale corporate print. The paper used in this Interim Report is manufactured | |
>Contact Details and Advisors
Secretary and Registered OfficeMichael Arnaouti FCIS Eidos plc Wimbledon Bridge House 1 Hartfield Road Wimbledon LONDON SW19 3RU Tel: +44 (0) 20 8636 3000 Fax: +44 (0) 20 8636 3001 Email: plc@eidos.co.uk Website: www.eidos.comRegistered Number2501949RegistrarComputershare Investor Services PLC The Pavilions Bridgwater Road Bristol BS99 7NH Tel: +44 (0) 870 702 0002 Fax: +44 (0) 870 703 6101 Website: www.computershare.comADR DepositoryThe Bank of New York Investor Relations PO Box 11258 Church St Station New York NY 10286-1258 USA Tel: +1 610 312 7836 Fax: +1 212 571 3050 Website: www.adrbny.comAuditorsKPMG Audit Plc 8 Salisbury Square London EC4Y 8BB Tel: +44 (0) 20 7311 1000 Fax: +44 (0) 20 7311 3311Corporate Financial AdvisorsUBS Investment Bank 1 Finsbury Avenue LONDON EC2M 2PP Tel: +44 (0) 20 7567 8000 Fax: +44 (0) 20 7568 4800Joint BrokersUBS Investment Bank Evolution Beeson GregoryBankersThe Royal Bank of ScotlandLegal AdvisorsTaylor Wessing (UK) Jones Day Gouldens (UK) Cooley Godward (USA)PR ConsultantsBrunswick Group Ltd > Committed to the Gameplay Experience