QXL Ricardo = plc

QXL Ricardo =
plc

Financial =
highlights

           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
Quarter ended    =
Quarter ended       Year =
ended

           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
      30 June          30 =
June         31 =
March

           &n=
bsp;                 &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;   2005           &n=
bsp; 2004           &n=
bsp; 2005

           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
    Unaudited       Unaudited*         =
Audited*

           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;                   =A3000'=
s           =
=A3000's           =
=A3000's

Reve=
nue           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
 2,515            =
1,467            =
7,167

Gros=
s profit           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;        2,455            =
1,434            6,986 
Oper=
ating expenses (before share-based payment charges            =
(2,428)          =
(1,632)          =
(7,354)
and exceptional =
items)
 
Trad=
ing profit/(loss)           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;  27            =
(198)            =
(368)
 
Othe=
r operating income           &n=
bsp;           &nb=
sp;           &nbs=
p;          =
1,709           &n=
bsp;    3           &n=
bsp;   15
 
Shar=
e-based payments           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
; (78)           &n=
bsp; (25)            =
(102)
 
Exce=
ptional expenses relating to takeover offers           &n=
bsp;            =
-           &n=
bsp;    -            =
(917)
 
Oper=
ating profit/(loss)           &n=
bsp;           &nb=
sp;           &nbs=
p;         1,658            =
(220)          =
(1,372)
 
 
*Fig=
ures restated to reflect International Financial Reporting Standards - =
see
notes 1 and 2 =
below
 
 
Oper=
ating Review
 
 
Busi=
ness performance
 
The =
Company is pleased to report another strong period of year-on-year =
growth
and our second consecutive =
quarter of underlying profitability. =
Revenue
increased 71% year-on-year, =
helped by a one-off benefit of approximately =
=A395,000
from the introduction of late =
payment fees as we continue to improve our =
billing
and customer administration =
systems.
 
Year=
-on-year we increased operating expenses by 51%. We significantly =
increased
our investment in marketing, =
in particular via a major TV and radio =
advertising
campaign in Switzerland. We =
were pleased with the increase in =
awareness
resulting from this campaign =
and believe that this will help consolidate =
future
growth. We are also continuing to =
invest more in our technology systems - =
during
the quarter we completed a =
strategic review of our systems and planned =
further
integration of these to =
accommodate future growth.
 
The =
trading profit of =A327,000 in the quarter ended 30 June 2005 compares =
to a
loss of =A3198,000 in the same =
quarter in 2004. Going forward, we remain =
focused
on our key markets and will =
continue our increased investment in marketing =
and
technology during the current =
quarter in order to prepare for the =
seasonally
stronger second half of our =
financial year.
 
 
Pola=
nd
 
As =
previously announced, last month the Company received over =A31.4 =
million from
the court-appointed =
administrator of QXL Poland Sp z o.o. ('QXL Poland') =
as
repayment of part of the =
inter-company balances owed to the Company by =
QXL
Poland. The payments have no direct =
relevance to the issue of ownership of =
QXL
Poland and we are continuing with =
all our legal claims on this =
issue.
 
Hear=
ings in the main civil case continued during the quarter. However the =
latest
hearing (scheduled for 22 June) =
was postponed by the judge in order to allow =
her
time to review the criminal =
indictments against Arjan Bakker and =
Przemyslaw
Rogowski that have been =
recently prepared by the Poznan Prosecutor's =
Office.
Although the Company understands =
that these indictments have not yet =
been
formally served, we expect the =
initial hearings in the criminal case to =
commence
later this =
year.
 
The =
Company remains confident that the courts will ultimately decide in =
its
favour but, notwithstanding its =
recent progress, still expects the =
proceedings
to be =
protracted.
 
 
Curr=
ent trading and outlook
 
Trad=
ing continues to grow strongly on a year-on-year basis although we =
expect to
see the usual seasonal dip in =
trading over the summer months. With our =
stronger
cash position, we will continue =
our increased investment in marketing =
and
technology during the current =
quarter in order to prepare for the =
seasonally
stronger second half of our =
financial year. We continue to believe that =
the
underlying strength of the business =
model, our strong market positions and =
the
prospects for the recovery of QXL =
Poland will continue to deliver a =
significant
increase in shareholder =
value.
 
 
Fina=
ncial review
 
This=
 is the Group's first accounting period under International =
Financial
Reporting Standards ('IFRS'). =
The only impact on the Group's net profit for =
the
comparative period arising from the =
change of accounting policies is due to =
the
implementation of IFRS 2 =
(Share-based payment) and is detailed in notes 1 and =
2
below. All comparative numbers =
presented have been restated in accordance =
with
IFRS.
 
Reve=
nue for the quarter ended 30 June 2005 increased 71% to =A32.52 million =
from
=A31.47 million for the quarter =
ended 30 June 2004 and increased 13% from =
=A32.23
million for the quarter ended 31 =
March 2005. These increases were primarily =
due
to increased transaction volumes on =
our sites, but were also partly due =
to
further enhancements to our billing =
systems, which included the =
implementation
of automated late payment =
fees.
 
Cost=
 of sales remained at approximately 2% of revenue. The increase in =
gross
profit was therefore in line with =
the increase in revenue at =A32.46 million =
for
the quarter ended 30 June 2005, a =
71% increase from =A31.43 million for =
the
quarter ended 30 June 2004 and a 12% =
increase from =A32.19 million for the =
quarter
ended 31 March =
2005.
 
Sale=
s and marketing expenses increased 78% to =A31.83 million for the =
quarter
ended 30 June 2005 from =A31.03 =
million for the quarter ended 30 June 2004 =
and
increased 17% from =A31.57 million =
in the quarter ended 31 March 2005. =
These
increases were driven by increased =
marketing spend across our three =
main
markets, in particular in =
Switzerland, where we undertook a major TV and =
radio
campaign.

Tech=
nology and development expenses of =A3272,000 in the quarter ended 30 =
June

2005 represented a 36% increase =
from =A3200,000 in the quarter ended 30 June =
2004

and a 1% increase when compared to =
the previous quarter's figure of =
=A3268,000.

The year-on-year increase =
resulted from a general expansion of our systems =
to

accommodate increasing transaction =
volumes as well as increased investment =
in

the strategic development of our =
auction platform. We expect costs in this =
area

to increase steadily in the future =
as we continue to refine and develop =
our

systems to accommodate further =
increases in transaction volumes.

Admi=
nistrative expenses decreased 6% to =A3406,000 in the quarter ended 30 =
June

2005, from =A3430,000 in the =
quarter ended 30 June 2004 and increased 62% =
from

=A3250,000 (excluding exceptional =
items) in the quarter ended 31 March 2005. =
The

significant increase compared to the =
previous quarter was due to the release =
of

certain legal accruals in the =
previous quarter as well as an increase in =
the

charge for share-based payments in =
the quarter ended 30 June 2005. =
Going

forward, we expect administrative =
expenses to increase as the business =
expands,

but to decrease as a proportion =
of revenue.

The =
above figures include the impact of equity-settled share-based payments =
in

both the comparative and current =
year, as required by IFRS 2. The total =
impact

of share-base payments in the =
quarter ended 30 June 2005 was =A378,000 compared =
to

=A325,000 in the quarter ended 30 =
June 2004. The increase was primarily due to =
the

significant increase in the =
Company's share price in the last year which =
has

resulted in a much higher 'fair =
value' charge for options granted in this =
year

than for options granted in prior =
periods.  The Group's =
latest annual option

grant on 9 May 2005 =
contributed the largest proportion of this charge and =
the

charge will increase in the next =
quarter to reflect the fact that the =
charge

will be based on a complete =
quarter.

The =
Group achieved an operating profit of =A31.66 million in the quarter =
ended 30

June 2005 compared to a loss of =
=A3220,000 in the quarter ended 30 June =
2004.

This=
 profit included other operating income of =A31.71 million in the last =
quarter

resulting from the repayment of =
=A31.42 million of intercompany loans from =
QXL

Poland and a =A3292,000 gain on the =
sale of a non-trading subsidiary, QXL =
Sweden

AB. Other operating income was =
=A33,000 in the quarter ended 30 June =
2004.

Operating profit also includes the =
impact of =A378,000 of share-based =
payment

charges in the quarter ended 30 =
June 2005 and =A325,000 of charges in the =
quarter

ended 30 June 2004. Excluding =
other operating income and share-based =
payment

charges, the Group saw a trading =
profit of =A327,000 in the quarter ended 30 =
June

2005 compared to a loss of =
=A3198,000 in the same period of the previous =
year.

Tax<=
o:p>

Duri=
ng the last quarter the Group recorded a =A313,000 tax charge related to =
the

release of a deferred tax =
asset.

Prof=
it per ordinary share

The =
Group's basic and diluted profit per ordinary share for the quarter =
ended 30

June 2005 were 94 pence and 84 =
pence respectively, compared to a basic =
and

diluted loss of 20 pence per =
ordinary share for the quarter ended 30 June =
2004.

Cash=
 flow

Our =
net cash outflow from operating activities increased to =A3698,000 from =
an

outflow of =A3195,000 in the quarter =
ended 30 June 2004, primarily as a result =
of

payments made to settle fees relating =
to the various takeover offers that =
had

accrued during the end of the last =
financial year. However the Group =
also

received several large =
non-operating cash receipts in the last =
quarter:

=95<=
SPAN style=3D"mso-spacerun: yes">    =A31.42 =
million as part-repayment of an inter-company balance owed by =
QXL

     =
Poland

=95<=
SPAN style=3D"mso-spacerun: yes">    =A3408,000 =
from a placing of 22,558 ordinary shares and from the =
exercise

     of employee =
options

=95<=
SPAN style=3D"mso-spacerun: yes">    =A3202,000 =
from the sale of a non-trading Swedish =
subsidiary

=95<=
SPAN style=3D"mso-spacerun: yes">    =A3125,000 =
tax credit

The =
Group's cash position at 30 June 2005 was =A32.32 million. The bulk of =
the

Group's cash balances are held in =
Sterling, Euro and Swiss Franc =
denominated

floating rate =
deposits.

           &n=
bsp;        QXL ricardo plc - =
First Quarter Results

           &n=
bsp;           &nb=
sp; Consolidated Income =
Statement

           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;         Quarter =
ended     =
Quarter ended       Year =
ended

           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
   30 June           =
30 June         31 =
March

           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
      2005           &n=
bsp;  2004           &n=
bsp; 2005

           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
 Unaudited        Unaudited*         =
Audited*

           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
    =A3000's            =
=A3000's           =
=A3000's

Reve=
nue           &n=
bsp;           &nb=
sp;                  &n=
bsp;           &nb=
sp;   2,515           &n=
bsp; 1,467            =
7,167

Cost of sales           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;     (60)           &n=
bsp;  (33)            =
(181)

Gros=
s profit           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;     2,455           =
  1,434            =
6,986

Othe=
r operating income           &n=
bsp;           &nb=
sp;           &nbs=
p;       1,709           &n=
bsp;     3           &n=
bsp;   15

Sales & =
marketing expenses           &n=
bsp;           &nb=
sp;           &nbs=
p; (1,828)           =
(1,027)          =
(5,081)

Technology & =
development expenses           &n=
bsp;           &nb=
sp;        (272)           &n=
bsp; (200)            =
(897)

Administrative =
expenses           &n=
bsp;           &nb=
sp;           &nbs=
p;      (406)           &n=
bsp; (430)          =
(2,395)

Oper=
ating profit/(loss)           &n=
bsp;           &nb=
sp;           &nbs=
p;      1,658           &n=
bsp; (220)          =
(1,372)

Net =
interest receivable/(payable)           &n=
bsp;           &nb=
sp;            =
5           &n=
bsp;  (30)           &n=
bsp; (81)

Prof=
it/(loss) before taxation           &n=
bsp;           &nb=
sp;            =
1,663           &n=
bsp; (250)          =
(1,453)

Taxa=
tion           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;          (13)           &n=
bsp;     -           &n=
bsp;  359

Profit =
attributable to minority interest           &n=
bsp;           &nb=
sp;   (4)           &n=
bsp;   (3)           &n=
bsp; (85)

Prof=
it/(loss) attributable to equity shareholders           &n=
bsp;    1,646           &n=
bsp; (253)          =
(1,179)

Prof=
it/(loss) per equity share (basic & =
diluted)

Profit/(loss) after =
taxation           &n=
bsp;           &nb=
sp;           &nbs=
p; 1,646           &n=
bsp; (253)          =
(1,179)

Weighted average number =
of ordinary shares           &n=
bsp;       1,748,187         =
1,293,832        =
1,469,520

outstanding

Net profit/(loss) per share (basic) - pence           &n=
bsp;           &nb=
sp; 94           &n=
bsp;  (20)           &n=
bsp; (80)

Weighted average number =
of ordinary shares (diluted)         =
1,956,833         =
1,293,832        =
1,469,520

**Net profit/(loss) per share (diluted) - pence           &n=
bsp;           =
84           &n=
bsp;  (20)           &n=
bsp; (80)
 
 
Oper=
ating expenses above can be analysed =
as:
Sales & marketing (before =
share-based payments)           &n=
bsp;    (1,797)           =
(1,016)          =
(5,036)
Sales & marketing =
share-based payments           &n=
bsp;           &nb=
sp;    (31)           &n=
bsp;  (11)           &n=
bsp; (45)
 
Tota=
l sales & marketing expenses           &n=
bsp;           &nb=
sp;       (1,828)           =
(1,027)          =
(5,081)
 
Tech=
nology & development (before share-based           &n=
bsp;         (268)           &n=
bsp; (198)            =
(889)
payments)Technology & development share-based payments           &n=
bsp;          =
(4)           &n=
bsp;   (2)              (8) 
Tota=
l technology expenses           &n=
bsp;           &nb=
sp;           &nbs=
p;    (272)           &n=
bsp; (200)            =
(897)
 
Admi=
nistrative expenses (before share-based payments           &n=
bsp; (363)           &n=
bsp; (418)          =
(1,429)
and exceptional =
expenses)
Administrative share-based =
payments           &n=
bsp;           &nb=
sp;       (43)           &n=
bsp;  (12)           &n=
bsp; (49)
Exceptional expenses =
relating to takeover offers           &n=
bsp;         -           &n=
bsp;     -            =
(917)
 
Tota=
l administrative expenses           &n=
bsp;                   &n=
bsp;    (406)           &n=
bsp; (430)          =
(2,395)
 
 
 
 
 
* =
As restated to reflect International Financial Reporting Standards - see =
notes
1 and 2 =
below
 
** =
The Company has or had share options, warrants and convertible bonds =
which
are or were potential ordinary =
shares.  However, in =
periods where the Group made
a net loss, =
the impact on the net loss per share of these potential =
ordinary
shares was anti-dilutive and =
they were therefore not included in the =
calculation
of diluted loss per =
share.
 
 
 
Cons=
olidated Balance Sheet
 
           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
  30 June           =
30 June         31 =
March
           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
     2005           &n=
bsp;  2004           &n=
bsp; 2005
           &n=
bsp;           &nb=
sp;            &n=
bsp;           &nb=
sp;           Unaudited        Unaudited*         =
Audited*
           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
   =A3000's            =
=A3000's           =
=A3000's
AssetsNon-current =
assets:
Property, plant and =
equipment           &n=
bsp;              &n=
bsp;          24=
7           &n=
bsp;   147           &n=
bsp;  237
Financial =
assets           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;    3           &n=
bsp;     2           &n=
bsp;    3
Deferred =
tax assets           &n=
bsp;           &nb=
sp;           &nbs=
p;           =
217           &n=
bsp;     -              237
Trade and other =
receivables           &n=
bsp;           &nb=
sp;           &nbs=
p;    21           &n=
bsp;     -           &n=
bsp;   22
 
           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
      488           &n=
bsp;   149           &n=
bsp;  499
 
Curr=
ent assets:
Trade and other =
receivables           &n=
bsp;           &nb=
sp;           &nbs=
p; 1,085           &n=
bsp;   880            =
1,298
Cash and cash =
equivalents           &n=
bsp;           &nb=
sp;           &nbs=
p;   2,318           &n=
bsp; 1,098            =
1,064
 
           &n=
bsp;           &nb=
sp;           &nbs=
p;                    &n=
bsp;       3,403           &n=
bsp; 1,978            =
2,362
 
Liab=
ilities
Current =
liabilities:
Trade and other =
payables           &n=
bsp;           &nb=
sp;           &nbs=
p;  (1,825)           =
(6,837)          =
(2,914)
 
Net =
current assets/(liabilities)           &n=
bsp;            =
        1,578           =
(4,859)            =
(552)
 
Non-=
current liabilities:
Borrowings           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;      (200)           &n=
bsp;     -            =
(207)
Other non-current =
liabilities           &n=
bsp;           &nb=
sp;            =
(29)              (30)           &n=
bsp; (28)
 
           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
    (229)           &n=
bsp;  (30)            =
(235)
 
Net =
assets/(liabilities)           &n=
bsp;           &nb=
sp;           &nbs=
p;    1,837           =
(4,740)            =
(288)
 
Shar=
eholders' equity
Ordinary shares           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
; 1,757           &n=
bsp; 1,348            =
1,728
Share premium           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
; 240,515           =
235,301          =
240,124
Other reserves           &n=
bsp;           &nb=
sp;            &n=
bsp;           &nb=
sp; 9,137           &n=
bsp; 9,137            =
9,137
Retained earnings           &n=
bsp;           &nb=
sp;           &nbs=
p;       (249,534)         =
(250,430)        =
(251,236)
 
Shar=
eholders' equity/(deficit)           &n=
bsp;           &nb=
sp;          =
1,875           =
(4,644)            =
(247)
 
Equi=
ty minority interests           &n=
bsp;           &nb=
sp;           &nbs=
p;    (38)           &n=
bsp;  (96)           &n=
bsp; (41)
 
Equi=
ty/(deficit)           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
1,837           =
(4,740)            =
(288)
 
 
Stat=
ement of Changes in Shareholders' =
Equity
 
 
           &n=
bsp;           &nb=
sp;           &nbs=
p;       Ordinary Share =
premium         Other      =
Retained           &n=
bsp; Total
           &n=
bsp;           &nb=
sp;           &nbs=
p;         shares           &n=
bsp;        reserves      =
earnings     =
shareholders'
             &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
            &=
nbsp;           &n=
bsp;           &nb=
sp;   (deficit)
           &n=
bsp;           &nb=
sp;           &nbs=
p;        =A3 000's       =
=A3 000's       =A3 000's       =
=A3 000's           =
=A3 000's
 
As =
at 1 April 2004 under UK GAAP            &n=
bsp; 1,282       230,783         9,137     =
(250,145)           =
(8,943)
Impact of implementing =
IFRS           &n=
bsp;           =
-           &n=
bsp; -           &n=
bsp; -           &n=
bsp; -           &n=
bsp;     =
-
 
As =
at 1 April 2004 under IFRS           &n=
bsp;     1,282       230,783         9,137     =
(250,145)           =
(8,943)
Issue of shares           &n=
bsp;           &nb=
sp;          66         4,518           &n=
bsp; -           &n=
bsp; -           &n=
bsp; 4,584
Loss for the period =
under IFRS           &n=
bsp;        -           &n=
bsp; -           &n=
bsp; -         (253)             (=
253)
Foreign exchange translation           &n=
bsp;          -           &n=
bsp; -           &n=
bsp; -          =
(57)           &n=
bsp;  =
(57)
differences<=
/PRE>Share based payment charges           &n=
bsp;           =
-           &n=
bsp; -           &n=
bsp; -            =
25           &n=
bsp;    25
 
As =
at 30 June 2004 under IFRS           &n=
bsp;     1,348       235,301         9,137     =
(250,430)           =
(4,644)
 
           &n=
bsp;           &nb=
sp;           &nbs=
p;       Ordinary Share =
premium         Other      =
Retained           &n=
bsp; Total
           &n=
bsp;           &nb=
sp;                     shares           &n=
bsp;        reserves      =
earnings     =
shareholders'
           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
            &=
nbsp;           &n=
bsp;          =
(deficit)/equity
           &n=
bsp;           &nb=
sp;           &nbs=
p;        =A3 000's       =
=A3 000's       =A3 000's       =
=A3 000's           =
=A3 000's
 
As =
at 1 April 2005 under UK GAAP           &n=
bsp;  1,728       240,124         9,137     =
(251,236)           &n=
bsp; (247)
Impact of implementing =
IFRS           &n=
bsp;           =
-           &n=
bsp; -           &n=
bsp; -           &n=
bsp; -    =
           &n=
bsp; -
 
As =
at 1 April 2005 under IFRS           &n=
bsp;     1,728       240,124         9,137     =
(251,236)           &n=
bsp; (247)
Issue of shares           &n=
bsp;           &nb=
sp;          29           =
391           &n=
bsp; -           &n=
bsp; -           &n=
bsp;   420
Profit for =
the period under IFRS           &n=
bsp;      -           &n=
bsp; -           &n=
bsp; -         1,646           &n=
bsp; 1,646
Foreign exchange =
translation           &n=
bsp;          -           &n=
bsp; -           &n=
bsp; -          =
(22)           &n=
bsp;  =
(22)
differences<=
/PRE>Share based payment charges                    &n=
bsp;  -           &n=
bsp; -           &n=
bsp; -            =
78           &n=
bsp;    78
 
As =
at 30 June 2005 under IFRS           &n=
bsp;     1,757       240,515         9,137     =
(249,534)           &n=
bsp; 1,875
 
 
 
Cons=
olidated Cashflow Statement
           &n=
bsp;           &nb=
sp;                   &n=
bsp;           &nb=
sp;        30 June           =
30 June          31 =
March
           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
       2005           &n=
bsp;  2004           &n=
bsp;  2005
           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
  Unaudited        Unaudited*          =
Audited*
           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
    =A3 000's           =
=A3 000's           =
=A3 000's
           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
      (698)           &n=
bsp; (195)           &n=
bsp; (408)
 
Cash=
 (outflow) from operating =
activities
Cash inflow/(outflow) from =
investing activities           &n=
bsp;       1,568           &n=
bsp;  (79)           &n=
bsp; (186)
Cash inflow/(outflow) =
from financing activities           &n=
bsp;         408           &n=
bsp;   (8)           &n=
bsp;   297
 
Net =
increase/(reduction) in cash           &n=
bsp;           &nb=
sp;          =
1,278           &n=
bsp; (282)           &n=
bsp; (297)
Cash at beginning of =
period           &n=
bsp;           &nb=
sp;           &nbs=
p;   1,064           &n=
bsp; 1,381           &n=
bsp; 1,381
Effect of exchange =
rate fluctuations on cash held           &n=
bsp;      (24)           &n=
bsp;   (1)           &n=
bsp;  (20)
 
Cash=
 at end of period           &n=
bsp;           &nb=
sp;           &nbs=
p;         2,318           &n=
bsp; 1,098           &n=
bsp; 1,064
 
 
* =
As restated to reflect International Financial Reporting Standards - see =
notes
1 and 2 =
below
 
 
Note=
 1: Basis of preparation
 
In =
the current year the Group has adopted all of the new and revised =
standards
and interpretations issued by =
the International Accounting Standards Board =
and
the International Financial =
Reporting Interpretations Committee that =
are
relevant to its operations and =
effective for the Group's financial =
year
beginning on 1 April 2005. The =
adoption of these standards and =
interpretations
has resulted in changes =
to the Group's accounting policies.  Only one of =
the
changes - the adoption of IFRS 2 =
(Share-based payment) - has affected  the
amounts reported =
for the current or prior financial year. The Group has =
elected
not  to follow the full requirements of IAS 34 (Interim =
Reporting) which are
extensive and not =
mandatory.
 
IFRS=
 2 requires the recognition of equity-settled share-based payments at =
fair
value at the date of grant and the =
recognition of liabilities for =
cash-settled
share-based payments at the =
current fair value at each balance sheet =
date.
Prior to the adoption of IFRS 2, =
the Group recognised the financial effect =
of
share-based payments using the =
intrinsic value of the share-based payment, =
which
is typically =
zero.
 
In =
accordance with the transitional provisions of IFRS 2, the standard has =
been
applied retrospectively to all =
grants of equity instruments after 7 =
November
2002 that had not vested as of =
1 January 2005.  The =
change in accounting policy
has resulted =
in a net decrease in profit for the financial year ending 31 =
March
2005 of =
=A3102,000.
 
The =
group has taken the exemption from the requirement to restate =
comparative
information for IAS 32 =
(Financial Instruments: Disclosure and Presentation) =
and
IAS 39 (Financial Instruments: =
Recognition and Measurement) in accordance =
with
IFRS 1 (First time adoption of =
International Financial Reporting Standards) =
and
has continued to apply UK GAAP in =
respect of financial instruments for =
the
comparative period presented. The =
Group has no exposure to financial =
instruments
in the current financial =
year.
 
In =
the comparative period, Convertible Bonds, which were convertible =
into
ordinary shares, were stated at net =
proceeds after deducting issue costs. =
The
interest due on the bonds was =
charged to the profit and loss account on =
a
monthly basis and an equal amount =
credited to the carrying value of the =
bond.
The initial carrying value of the =
bonds was determined by reference to =
the
initial proceeds and the market =
value of the associated warrants. The bonds =
have
converted into ordinary shares at =
various dates since being issued and none =
were
outstanding at the balance sheet =
date. The Group has no exposure to =
financial
instruments in the current =
financial year.
 
The =
financial information contained in this announcement does not =
constitute
statutory accounts within the =
meaning of section 240 of the Companies Act =
1985.
The Group's auditors have made a =
report on the statutory accounts of the =
Group
in respect of the financial year =
ended 31 March 2005, which was unqualified =
and
did not contain a statement under =
section 237(2) or section 237(3) of that =
Act.
Statutory accounts for the year =
ended 31 March 2005 were adopted at =
the
Company's Annual General Meeting =
held on 28 June 2005 and have been delivered =
to
the Registrar of =
Companies.
 
 
Note=
 2: Reconciliation of loss for the quarter ended 30 June 2004 and =
financial
year ended 31 March =
2005
 
           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
            =
30 June           =
31 March
           &n=
bsp;           &nb=
sp;           &nbs=
p;                   &n=
bsp;           &nb=
sp;       2004           &n=
bsp;   2005
           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
          =
Unaudited            =
Audited
           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;            =
            =
=A3 000's            =
=A3 000's
 
(Los=
s) under UK GAAP           &n=
bsp;           &nb=
sp;           &nbs=
p;            =
;      (228)            =
(1,077)
Effect =
of:
IFRS 2 - Share-based payment           &n=
bsp;           &nb=
sp;           &nbs=
p;           =
(25)           &n=
bsp;  (102)
(Loss) under =
IFRS           &n=
bsp;           &nb=
sp;                   &n=
bsp;           &nb=
sp; (253)            =
(1,179)
 
 
Back=
ground on QXL ricardo plc
 
QXL =
ricardo plc supports an online auction community, conducting online =
auctions
and e-commerce in ten European =
countries. The QXL platform connects buyers =
and
sellers 24 hours a day, seven days a =
week in a safe, efficient, and =
entertaining
environment. A wide =
selection of merchandise and services is available on =
its
sites, ranging from computer =
software and hardware to consumer electronics =
and
collectibles. QXL is a publicly =
traded company with its shares listed on =
the
Official List of the London Stock =
Exchange.
 
 
QXL =
provides access to the QXL trading community =
in:
 
 
UK            =

www.qxl.com
 & 
www.qxl.co.uk
       =
Denmark       
www.qxl.dk
 
Fran=
ce        =

www.aucland.fr
           &n=
bsp;        Germany       =

www.ricardo24.de
 
Ital=
y         =

www.qxl.it
           &n=
bsp;            =
Netherlands   =

www.ricardo.nl
 
Norw=
ay        =

www.qxl.no
           &n=
bsp;            =
Poland        =

www.aukcje24.pl
 
Swed=
en        =

www.qxl.se
           &n=
bsp;            =
Switzerland   =

www.ricardo.ch