The UK's largest Orange phones dealer reported a jump in first-half operating profit to 532,000, up from 32,000 in the previous year.


Celltalk's chairman Derek Joseph said the second half of the year has started well, with trading levels in line with those seen in the first half. And Joseph also said that potential acquisitions and other expansion opportunities are now being actively considered by the group.

Looks to be back onits feet now and producing good profits

RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2004


2004 2003
Turnover 6.65m 4.57m
Operating Profit 0.53m 0.03m
Exceptional Item* 0.74m -
Retained Profits 1.26m 0.01m
Earnings per share 2.13p 0.06p
(excluding exceptional item)*
Earnings per share 5.17p 0.06p
(including exceptional item)*

With only 24,310,000 shares in issue and turnover increasing, profits on the up and dept being reduced it should bode well for 2005.

Also from the latest results
The improved trading position is due to a number of factors, both external and
internal. External factors included the higher level of competition between
networks, particularly resulting from the entry of 3 into the market, which has
improved commission levels. New generation of camera phones which encouraged
upgrading and more willingness to consider contract arrangements rather than pay
as you go. Lastly, the difficulties in the market over the last few years have
reduced the capacity and there is a now a better balance between supply and
demand.

Internally, the release of Celltalk plc, the main trading subsidiary, from the
CVA earlier this year has been followed by investment in new technology,
relocating the call centre to a more permanent location and some limited
expansion. The improved cash flow has enabled decisions that should provide for
cost benefits over a longer time period.

One good set of figures for the half year will not reinstate the value that we
believe the Group should be bringing to shareholders. We need to continue this
progress and consolidate the performance for the full financial year. Further
cash needs to be generated to fully repay the outstanding short term loans from
the directors, and to provide ongoing working capital for expansion. In view of
the Group's trading performance and strengthening liquidity in the first half of
the year further repayment of the short term loans amounting to 200k will be
made to the executive directors reducing the outstanding loans to 450k.

It is early days, but the second six months of the year have started well with
trading continuing at similar levels as for the first period. Possibilities for
organic growth and potential acquisitions are now being actively considered.
Reporting profits, accumulated tax losses, a significant customer base and an
infrastructure on which economies of scale can be built, is a platform which can
be used to attract complementary business and expansion opportunities. I
therefore look forward to reporting further on these in my full year statement.

It is with great satisfaction that I am able to extend my thanks to both staff
and fellow directors, not just for their loyal support and hard work in
difficult times, but in taking the Group back to significant profitability and
for us all to look forward to a positive future.

Cheers Grevis.

Well results are not far away. They have increased their staff numbers by 30% in the last 6 months as well so turnover should be close to 15 mil for the year

Could luck to those that hold. Up 70% since I reccomended this one and there is still room for another 100% by end of year IMHO

Dont forget if you are thinking of buying some DYOR.

Cheers

Martin

Cheers Martin. Their results were reported on 2 July last year, but as this would mean a Saturday announcement then perhaps we can expect this years results either on Friday 1 or Monday 4 July

LONDON (AFX) - Celltalk Group PLC year to March 31 2005

Sales - 14.60 mln stg vs 10.51 mln

Pretax profit before exceptionals and goodwill - 1.13 mln stg vs 157,159

Pretax profit - 1.68 mln stg vs loss 42,841

Operating profit on continuing ops - 924,248 stg vs loss 7.45 mln

EPS - 6.84 pence vs loss per share 0.21