Interim Results

RNS Number : 9645B

Cheerful Scout PLC

28 February 2011

 



Cheerful Scout Plc / Index: AIM / Epic: CLS / Sector: Media

28 February 2011

Cheerful Scout Plc ('Cheerful' or 'the Company')

Interim Results

Cheerful Scout Plc, the AIM-traded multi media specialist, announces its results for the six months ended 31 December 2010.

Chairman's Statement

The first six months of the year were very busy for the Company as we focussed on developing our client base in the private sector.  Following the acquisition of Twentyfirst Century Communications Limited ('Twentyfirst') in January 2010, turnover has increased by 34 per cent. to £985,640 (2009: £736,664). 

Operations

Cheerful provides high quality corporate communication solutions through two divisions - On Screen and Events.

Our On Screen division provides innovative and comprehensive visuals to convey corporate messages and strategy.  Our team continues to gain recognition and we have been nominated for awards at the New York Film Festival for our work with an international law firm and a leading engineering company, the results of which will be announced in April 2011. 

We have had success in broadening our client base within the private sector, which we anticipate will be reflected in our results during the second half of the year.  This focus has provided some resilience to recent cuts in government spending which have naturally affected some contracts within the public sector, including the Central Office of Information.  Although challenges remain, we are confident that our long term relationships with our public sector clients will maintain our position as their corporate communications company of choice, and that we can continue to make inroads into the private sector. 

The Events division, which was created as a result of the acquisition of Twentyfirst in January 2010, is now fully integrated and performing well.  During the period, we completed a number of exciting projects including a product launch for a leading software agency as well as a series of charity events for Trinity Hospice and Oasis, the Archant London Business Awards, the National Magazine Company awards gala, and the BVCA's annual gala dinner. 

Financial Results

The Group is reporting a loss before tax of £84,552 (2009: loss of 21,789) on a turnover of £985,640 (2009: £736,664).  The operating loss for the Group is £84,697 (2009: loss of £23,499).  The Group's cash balance continues to be healthy at £681,756 (2009: £901,587). 

Outlook

Over the next six months we will focus on building relationships with our new clients and increasing our profile in the corporate communications arena.  We expect gross margins to recover somewhat in the second half of the year, thus improving our full year financial performance.

I would like to thank the team for their hard work and shareholders for their continued support.

S Appleton

Chairman

28 February 2011

** ENDS **

For further information visit www.cheerfulscout.com or contact:

Gary Fitzpatrick	Cheerful Scout Plc	Tel: [phone]
Mark Percy	Seymour Pierce	Tel: [phone]
Catherine Leftley	Seymour Pierce	Tel: [phone]
Elisabeth Cowell	St Brides Media & Finance Ltd	Tel: [phone]

Condensed Consolidated Statement of Comprehensive Income

Six months ended 31 December 2010                          

		Notes	Unaudited		Unaudited		Audited
			Six months to		Six months to		Year ended
			31 December		31 December		30 June
			2010		2009		2010
			£		£		£
Continuing operations
Revenue			985,640		736,664		1,809,757
Cost of sales			(692,840)		(461,400)		(1,132,142)
Gross profit			292,800		275,264		677,615
Administrative expenses			(377,497)		(298,763)		(695,275)
Operating loss			(84,697)		(23,499)		(17,660)
Finance income			145		1,710		1,883
Other income			-		-		16,921
(Loss) / profit before taxation			(84,552)		(21,789)		1,144
Taxation			-		9,250		49,082
Total comprehensive (loss) / income for the period attributable to owners of the parent			(84,552)		(12,539)		50,226
Basic		5	(1.07881)p		(0.15695)p		0.63098p
Diluted		5	(1.07881)p		(0.15695)p		0.63098p

There are no other comprehensive income items.

Condensed Consolidated Statement of Financial Position

At 31 December 2010 

		Unaudited		Unaudited		Audited
		Six months to		Six months to		Year ended
		31 December		31 December		30 June
		2010		2009		2010
		£		£		£
Non-current assets
Intangible assets		365,154		365,154		365,154
Property, plant and equipment		111,618		155,847		133,375
Deferred taxation		39,832		-		39,832
		516,604		521,001		538,361
Current assets
Inventories		2,674		2,167		2,252
Trade and other receivables		366,088		167,516		506,592
Current tax receivable		-		9,250		-
Cash and cash equivalents		681,756		901,587		632,200
		1,050,518		1,080,520		1,141,044
Total assets		1,567,122		1,601,521		1,679,405
Current liabilities
Trade and other payables		(342,937)		(353,007)		(386,226)
		(342,937)		(353,007)		(386,226)
Net assets		1,224,185		1,248,514		1,293,179
Equity
Share capital		979,688		1,004,688		979,688
Capital redemption reserve		257,812		232,812		257,812
Retained earnings		(28,873)		11,014		55,679
Share based payment reserve		15,558		-		-
Equity attributable to equity holders of the parent		1,224,185		1,248,514		1,293,179

Condensed Consolidated Statement of Changes in Equity

At 31 December 2010

	Share capital	Capital redemption reserve	Retained earnings	Share based payment reserve	Total equity
	£	£	£	£	£
At 1 July 2009	1,054,688	170,312	48,678	-	1,273,678
Comprehensive expense for the period	-	-	(12,539)	-	(12,539)
Purchase of own shares	(62,500)	62,500	(25,125)	-	(25,125)
Issue of shares	12,500	-	-	-	12,500
At 31 December 2009	1,004,668	232,812	11,014		1,248,514
At 1 July 2009	1,054,688	170,312	48,678	-	1,273,678
Comprehensive income for the period	-	-	50,226	-	50,226
Purchase of own shares	(87,500)	87,500	(43,225)	-	(43,225)
Issue of new shares	12,500	-	-	-	12,500
At 30 June 2010	979,688	257,812	55,679	-	1,293,179
At 1 July 2010	979,688	257,812	55,679	-	1,293,179
Comprehensive expense for the period	-	-	(84,552)	-	(84,552)
Share based payments	-	-	-	15,558	15,558
At 31 December 2010	979,688	257,812	(28,873)	15,558	1,224,185

Condensed Consolidated Statement of Cash Flows

Six months ended 31 December 2010

		Unaudited			Unaudited		Audited
		Six months to			Six months to		Year ended
		31 December			31 December		30 June
		2010			2009		2010
		£			£		£
Cash flows from operating activities
(Loss) / profit before taxation		(84,552)			(21,789)		1,144
Depreciation		35,607			32,821		68,908
Gain on sale of property, plant and equipment		(15,000)			-		-
Share based payment		15,558			-		-
Finance income		(145)			(1,710)		(1,883)
		(48,532)			9,322		68,169
Increase in trade and other payables		140,504			52,629		85,848
(Increase) / decrease in trade and other receivables		(43,289)			42,378		(296,698)
Increase in inventories		(422)			(134)		(219)
Taxation		-			-		9,250
Cash generated / (used) in operating activities		48,261			104,195		(133,650)
Cash flows from investing activities
Finance income		145			1,710		1,883
Purchase of property, plant and equipment		(13,850)			(23,184)		(36,799)
Proceeds from sale of property, plant and equipment		15,000			-		-
Cash generated / (used) in investing activities		1,295			(21,474)		(34,916)
Cash flows from financing activities
Purchase of own shares		-		(25,125)			(43,225)
Issue of new shares		-		12,500			12,500
Cash used in financing activities		-		(12,625)			(30,725)
Net increase / (decrease) in cash and cash equivalents		49,556		70,096			(199,291)
Cash and cash equivalents at beginning of period		632,200		831,491			831,491
Cash and cash equivalents at end of period		681,756		901,587			632,200

Cheerful Scout plc

Notes to the Interim Condensed Financial Statements

Six months ended 31 December 2010

1    General information

Cheerful Scout Plc is a public limited company incorporated in the United Kingdom under the Companies Act 1985.  The Company is domiciled in the United Kingdom and its principal place of business in 25-27 Riding House Street, London, W1P 7PB.  The Company's Ordinary Shares are traded on the AIM market of the London Stock Exchange.

These condensed consolidated interim financial statements for the period ended 31 December 2010 (including the comparatives for the periods ended 31 December 2009 and 30 June 2010) were approved by the board of directors on 28 February 2011. 

The financial information set out in this interim report does not constitute statutory accounts for the purposes of section 434 of the Companies Act 2006.  The Group's statutory financial statements for the year ended 30 June 2010, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies.  The auditor's report on those financial statements was unqualified and did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006. 

The interim financial statements have been prepared using the accounting policies set out in the Group's 2010 statutory accounts and have not been audited.

Copies of the annual statutory accounts and the interim report can be found on our website at www.cheerfulscout.com or can be requested from the Company Secretary at the Company's Registered Office: 65 New Cavendish Street, London, W1G 7LS.

2     Basis of preparation

These condensed consolidated interim financial statements for the period ended 31 December 2010 have been prepared in accordance with IAS 34, 'Interim Financial Reporting' as adopted by the European Union.  The interim condensed consolidated financial statements should be read in conjunction with the annual financial statements for the year ended 30 June 2010, which have been prepared in accordance with IFRS's as adopted by the European Union.

3      Accounting policies

The accounting policies adopted are consistent with those of the annual financial statements for the year ended 30 June 2010, as described in those annual financial statements.  There has been no impact on the Group's financial position or performance from new and amended IFRS and IFRIC interpretations mandatory as of 1 July 2010.

4   Revenue and segment information

Revenue and segmental results have been disclosed by two operating segments of On Screen and Events in the manner that the information is presented to the Board of Directors, being the Chief Operating Decision Makers.  From 1 July 2010, the company's DVD & Interactive segment has been incorporated into the On Screen segment.  Comparative figures for On Screen include DVD & Interactive.

	On Screen	On Screen	Events	Events	Total	Total
	6 months	6 months	6 months	6 months	6 months	6 months
	to 31 Dec	to 31 Dec	to 31 Dec	to 31 Dec	to 31 Dec	to 31 Dec
	2010	2009	2010	2009	2010	2009
	£	£	£	£	£	£
Revenue	482,625	736,664	503,015	-	985,640	736,664
Segment results	(36,765)	41,880	31,943	(16,586)	(4,822)	25,294
Unallocated expenses					(79,875)	(48,793)
Operating loss					(84,697)	(23,499)
Finance income					145	1,710
Taxation					-	9,250
Total comprehensive expense for the period					(84,552)	(12,539)
Segment assets	521,759	677,886	258,482	-	780,241	677,886
Unallocated assets					786,881	923,635
Total assets	521,759	677,886	258,482	-	1,567,122	1,601,521
Segment liabilities	(176,722)	(268,219)	(136,394)	(16,584)	(313,116)	(284,803)
Unallocated liabilities					(29,821)	(68,204)
Total liabilities	(176,722)	(268,219)	(136,394)	(16,584)	(342,937)	(353,007)
Capital expenditure	10,868	23,184	2,983	-	13,851	23,184
Depreciation & amortisation	35,247	32,821	360	-	35,607	32,821

5     Earnings per share

Basic earnings per share are calculated by dividing the profit or loss attributable to ordinary owners of the parent by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share are calculated by dividing the profit or loss attributable to ordinary owners of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would have been issued on the conversion of all dilutive potential ordinary shares in ordinary shares.

The following reflects the income and share data used and dilutive earnings per share computations:

	Unaudited		Unaudited		Audited
	Six months to		Six months to		Year ended to
	31 December		31 December		30 June
	2010		2009		2010
	£		£		£
(Loss) / profit attributable to owners of parent	(84,552)		(12,539)		50,226
	Shares		Shares		Shares
Basic and diluted weighted average number of shares	7,837,500		7,989,130		7,959,966

6     Capital expenditure

During the period, the Group acquired property, plant and equipment with a cost of £13,851 (2009: £23,184).  During the period, the Group disposed of property, plant and equipment for proceeds of £15,000 (2009: £Nil).

7     Related party transactions

The Group has a related party relationship with its subsidiaries and its directors.

Transactions between Group companies, which are related parties, have been eliminated on consolidation and are therefore not included in these consolidated interim financial statements. 

			Unaudited		Unaudited
			Six months to		Six months to
			31 December		31 December
			2010		2009
			£		£
Subsidiaries
Amounts owed by subsidiaries			396,423		226,272
Less provision			(201,308)		(200,000)
Amounts owed by subsidiaries			195,115		26,272
Amounts owed to subsidiaries			-		1

Cheerful Scout Plc is a guarantor for a lease entered into by Cheerful Scout Productions Limited (formerly known as Centralfix Limited), its subsidiary undertaking.

Harris and Trotter LLP is a firm in which N J Newman is a member.  The following was charged to the Group in respect of professional services.

Harris and Trotter LLP			£		£
Cheerful Scout plc			8,008		6,225
Cheerful Scout Productions Limited			4,017		4,880
nVision Technology Limited			2,800		-
			14,825		11,105

The compensation of key management (including directors) of the Group is as follows:

		£		£
Short-term employee benefits		60,150		75,000
Post-employee benefits		26,492		-
		86,642		75,000

 

END

 

 

IR SEMFSAFFSEEE