Half Yearly Report

RNS Number : 2678O

Immedia Group PLC

15 September 2011

 



IMMEDIA GROUP PLC

("Immedia" or "the Company")

INTERIM RESULTS

Immedia Group Plc (AIM: IME), which provides bespoke radio stations and in-store media solutions for retailers, today announces its interim results for the half year to 30 June 2011.

Key Points

·      Reduced first half operating loss of £28,976 (2010 H1 operating loss £100,375)

·      Cash in bank £611,311 as at 30 June 2011 (£700,423 as at 30 June 2010)

·      Contract extensions and renewals announced for up to five years

·      Continuing trials with potential new customers

·      New communications initiatives

Financial Highlights

	Unaudited  Half year to   30 June 2011	Unaudited  Half year to   30 June 2010	Unaudited  Half year to   30 June 2009
Revenue	£1,504,011	£1,717,883	£ 1,749,175
Results from operating activities	£(28,976)	£(100,375)	£ (40,615)
Loss before income tax	£(29,374)	£(100,324)	£ (39,705)
Loss for period attributable to equity shareholders	£(29,374)	£(100,324)	£ (38,655)
Basic and diluted loss per share (pence)	(0.21)p	(0.72)p	(0.28)p
Cash and cash equivalents	£611,311	£700,423	£ 706,596

Bruno Brookes, Chief Executive of Immedia, said:

"We recognise the difficulty of adding new business in a challenging economic environment and have acted to improve the company's profile by investing in communications initiatives designed to reach a wider audience of potential new customers. The completion of the initial phase of our investments during H2 2011 should benefit our activities in 2012. "

Immedia Group Plc
Bruno Brookes - Chief Executive	[phone]
Daniel Stewart & Company Plc
Paul Shackleton/Nick Brown	[phone]

Chief Executive's Review

Our results from operating activities in the first half of 2011, despite further decline in revenues, have improved on the comparative period of 2010 with careful control of costs.  Our balance sheet remains similar to the positions held at the interim and final stages of 2010 whilst in 2011 we have invested cash in working capital following the increased supply and installation of equipment to customers.

Our work with clients to help deliver future store concepts with cutting edge audio and visual solutions continues, and we are pleased to have signed contract extensions and renewals with a number of existing customers.

We recognise the difficulty of adding new business in a challenging economic environment and have acted to improve the company's profile by investing in communications initiatives designed to reach a wider audience of potential new customers. The completion of the initial phase of our investments during H2 2011 should benefit our activities in 2012.

Bruno Brookes

Chief Executive

14 September 2011

Consolidated statement of comprehensive income

	Note	Unaudited Half year to 30 June 11 £		Unaudited Half year to 30 June 10 £		Audited Year ended  31 Dec 10  £
Revenue		1,504,011		1,717,883		3,509,421
Cost of sales		(624,330)		(810,991)		(1,625,096)
Gross profit		879,681		906,892		1,884,325
Administrative expenses		(908,657)		(1,007,267)		(1,944,049)
Results from operating activities		(28,976)		(100,375)		(59,724)
Finance income		825		1,274		1,726
Finance cost		(1,223)		(1,223)		(2,446)
Net finance (cost)/income		(398)		51		(720)
Loss before income tax		(29,374)		(100,324)		(60,444)
Income tax income	4	-		-		11,878
Loss and total comprehensive income for the period attributable to equity shareholders		(29,374)		(100,324)		(48,566)
Continuing and total operations
Loss per share - basic and diluted	12	(0.21)p		(0.72)p		(0.35)p

Consolidated balance sheet

	Note	Unaudited  as at  30 June 11  £		Unaudited  as at  30 June 10  £		Audited as at  31 Dec 10 £
Assets
Property, plant and equipment	5	215,979		226,569		218,585
Intangible assets	6	294,121		272,185		304,925
Total non-current assets		510,100		498,754		523,510
Current assets
Inventories	7	182,447		122,199		117,857
Trade and other receivables	8	546,069		401,921		319,177
Prepayments		106,340		112,166		122,461
Cash and cash equivalents	9	611,311		700,423		817,242
Total current assets		1,446,167		1,336,709		1,376,737
Total assets		1,956,267		1,835,463		1,900,247
Equity
Share capital	10	1,455,684		1,455,684		1,455,684
Share premium		3,586,541		3,586,541		3,586,541
Merger reserve		2,245,333		2,245,333		2,245,333
Retained losses		(6,692,103)		(6,690,602)		(6,662,728)
Total equity		595,455		596,956		624,830
Liabilities
Loans and borrowings		-		11,000		-
Total non-current liabilities		-		11,000		-
Loans and borrowings		11,000		22,000		22,000
Trade and other payables	11	1,100,292		1,073,933		1,153,455
Deferred income		249,520		131,574		99,962
Total current liabilities		1,360,812		1,227,507		1,275,417
Total liabilities		1,360,812		1,238,507		1,275,417
Total equity and liabilities		1,956,267		1,835,463		1,900,247

Consolidated statement of changes in equity

	Attributable to equity shareholders of the Company
	Share capital £	Share Premium account £	Merger reserve £	Profit & loss account £	Total equity £
Total equity at 30 June 2011 (unaudited)
Balance at 1 January 2011	1,455,684	3,586,541	2,245,333	(6,662,728)	624,830
Transactions with owners	-	-	-	-	-
Loss and total comprehensive income for the period	-	-	-	(29,374)	(29,374)
Balance at 30 June 2011	1,455,684	3,586,541	2,245,333	(6,692,102)	595,456
Total equity at 30 June 2010 (unaudited)
Balance at 1 January 2010	1,455,684	3,586,541	2,245,333	(6,582,086)	705,472
Purchase of own shares by employee benefit trust	-	-	-	(8,192)	(8,192)
Transactions with owners	-	-	-	(8,192)	(8,192)
Loss and total comprehensive income for the period	-	-	-	(100,324)	(100,324)
Balance at 30 June 2010	1,455,684	3,586,541	2,245,333	(6,690,602)	596,956
Total equity at 31 December 2010 (audited)
Balance at 1 January 2010	1,455,684	3,586,541	2,245,333	(6,582,086)	705,472
Purchase of own shares by employee benefit trust	-	-	-	(23,360)	(23,360)
Equity settled share based payments	-	-	-	(8,716)	(8,716)
Transactions with owners	-	-	-	(32,076)	(32,076)
Loss and total comprehensive income for the year	-	-	-	(48,566)	(48,566)
Balance at 31 December 2010	1,455,684	3,586,541	2,245,333	(6,662,728)	624,830

Consolidated statement of cash flows

	Note	Unaudited  Half Year to  30 June 11  £		Unaudited  Half Year to  30 June 10  £		Audited Year ended  31 Dec 10  £
Cash flows from operating activities
Loss for the period before income tax		(29,374)		(100,324)		(60,444)
Adjustments for:
Depreciation and amortisation charges		65,509		55,117		112,254
Financial income		(825)		(1,274)		(1,726)
Financial expense		1,223		1,223		2,446
Profit on sale of property, plant and equipment		(1,300)		-		(376)
(Increase)/decrease in trade and other receivables		(210,771)		219,098		294,467
Increase in inventories		(64,590)		(42,521)		(38,179)
Increase/(decrease) in trade and other payables		96,394		(174,335)		(126,183)
Net cash from operating activities		(143,734)		(43,016)		182,259
Cash flows from investing activities
Proceeds from sale of property, plant and equipment		1,300		-		985
Interest received		825		1,274		1,726
Acquisition of property, plant and equipment	5	(50,099)		(54,132)		(97,594)
Acquisition of intangible assets	6	(2,000)		-		(39,040)
Net cash from investing activities		(49,974)		(52,858)		(133,923)
Cash flows from financing activities
Interest paid		(1,223)		(1,223)		(2,446)
Repayment of borrowings		(11,000)		(11,000)		(22,000)
Purchase of own shares for Employee Benefit Trust		-		(8,192)		(23,360)
Net cash from financing activities		(12,223)		(20,415)		(47,806)
Net (decrease)/increase in cash and cash equivalents		(205,931)		(116,289)		530
Cash and cash equivalents at beginning of period		817,242		816,712		816,712
Cash and cash equivalents at end of period	9	611,311		700,423		817,242

Notes to the condensed consolidated interim financial statements

1. Reporting entity

Immedia Group Plc (the "Company") is a company incorporated and domiciled in the United Kingdom.  The address of the Company's registered office and its principal place of business is The Old Brewery, The Broadway, Newbury, Berkshire RG14 1AU.

The condensed consolidated interim financial statements of the Company as at and for the half year ended 30 June 2011 comprise the Company and its subsidiaries (together referred to as the "Group").  The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2010 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 Section 498(2) of the Companies Act 2006. The consolidated financial statements of the Group as at and for the year ended 31 December 2010 are available at www.immediaplc.com/investors.html

The Group primarily is involved in marketing and communication services through music, radio and screen based media together with the installation and maintenance of associated equipment.

2. Basis of preparation

These consolidated financial statements for the half year ended 30 June 2011 are unaudited.  They have been prepared and approved by the directors following the recognition and measurement principles of International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs"); they do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2010.

On the basis of current financial projections prepared up to the end of 2012, recent news of contract renewals, continuing improvements in management of costs, and ongoing availability of facilities, the Directors are satisfied that the Group has adequate resources to continue in operation for the foreseeable future and consequently the financial statements have been prepared on the going concern basis.

The financial statements were approved by the Board of Directors on 14 September 2011.

3. Significant accounting policies

The accounting policies set out in detail in note 3 of the Group's consolidated financial statements to 31 December 2010 have been applied consistently to these unaudited financial statements to 30 June 2011, including:

(a) Revenue

Revenue represents the amounts receivable by the Group for the provision of its media services, related equipment and equipment maintenance services in the normal course of business, excluding value added tax.  Revenue from media services and equipment is recognised on the date of broadcast or delivery, respectively.  Revenue from equipment maintenance services, sponsorship and promotions is recognised over the life of the contract.

Notes to the condensed consolidated interim financial statements continued

4. Income tax credit in the income statement

	Unaudited as at 30 June 11 £		Unaudited as at 30 June 10 £		Audited as at 31 Dec 10 £
Current tax
Current period	-		-		-
Adjustment in respect of prior periods	-		-		(11,878)
Deferred tax credit
Reversal of temporary differences	-		-		-
Total tax credit in consolidated income statement	-		-		(11,878)

5. Property, plant and equipment

	Plant &	Fixtures &	Motor	Network	Total
	equipment	fittings	vehicles	equipment
	£	£	£	£	£
Cost
At 1 January 2011	763,669	456,084	-	661,286	1,881,039
Additions	23,706	4,093	22,000	300	50,099
Disposals	(2,827)	-	-	-	(2,827)
At 30 June 2011	784,548	460,177	22,000	661,586	1,928,311
Depreciation and impairment losses
At 1 January 2011	706,411	297,625	-	658,418	1,662,454
Charge for period	12,815	37,115	2,104	671	52,705
On disposals	(2,827)	-	-	-	(2,827)
At 30 June 2011	716,399	334,740	2,104	659,089	1,712,332
Carrying amounts
Unaudited at 30 June 2011	68,149	125,437	19,896	2,497	215,979
Audited at 31 December 2010	57,258	158,459	-	2,868	218,585
Unaudited at 30 June 2010	63,007	160,869	-	2,693	226,569

Notes to the condensed consolidated interim financial statements continued

6. Intangible assets

	Customer	Video	Content	Goodwill	Total
	relationships	library	Delivery
	£	£	£	£	£
Cost
At 1 January 2011	566,880	126,000	39,040	1,173,310	1,905,230
Additions in period	-	-	2,000	-	2,000
At 30 June 2011	566,880	126,000	41,040	1,173,310	1,907,230
Amortisation and impairment losses
At 1 January 2011	566,880	59,425	-	974,000	1,600,305
Charge for period	-	6,300	6,504	-	12,804
At 30 June 2011	566,880	65,725	6,504	974,000	1,613,109
Carrying amounts
Unaudited at 30 June 2011	-	60,275	34,536	199,310	294,121
Audited at 31 December 2010	-	66,575	39,040	199,310	304,925
Unaudited at 30 June 2010	-	72,875	-	199,310	272,185

There were no indications of impairment of intangible assets at 30 June 2011 and the annual impairment tests will be carried out at the year end.

7. Inventories

	Unaudited as at 30 June 11 £		Unaudited as at 30 June 10 £		Audited as at 31 Dec 10 £
Work in progress	4,009		52,968		1,522
Finished goods	178,438		69,231		116,335
	182,447		122,199		117,857

The inventory expense included in cost of sales in the consolidated statement of comprehensive income was £79,279 (30 June 2010: £48,493; 31 December 2010: £102,784). Impairment charges for obsolete and slow moving inventories were £nil (30 June 2010: £nil; 31 December 2010: £309).

Notes to the condensed consolidated interim financial statements continued

8. Trade and other receivables

	Unaudited as at 30 June 11 £		Unaudited as at 30 June 10 £		Audited as at 31 Dec 10 £
Trade receivables due from related parties	-		32		-
Trade receivables	519,577		352,974		277,726
Other debtors	26,492		48,915		41,451
	546,069		401,921		319,177

As 30 June 2011 trade receivables are shown after a provision for impairment of £20,000 (30 June and 31 December 2010: £20,000) arising from slow moving debts and disputed charges. During the period to 30 June 2011 there were no movements in the provision for impairment.  All debts are due within one year.

At 30 June 2011 the total of trade receivables past due, net of provision for impairment, was as follows:

	Unaudited as at 30 June 11 £		Unaudited as at 30 June 10 £		Audited as at 31 Dec 10 £
Up to 3 months past due	52,348		63,601		110,195
Over 3 months past due	-		-		-
	52,348		63,601		110,195

9. Cash and cash equivalents

	Unaudited as at 30 June 11 £		Unaudited as at 30 June 10 £		Audited as at 31 Dec 10 £
Bank balances	15,005		77,830		11,947
Call deposits	596,306		622,593		805,295
Cash and cash equivalents	611,311		700,423		817,242

Cash and cash equivalents comprise cash balances and short-term call deposits.

Notes to the condensed consolidated interim financial statements continued

10. Share Capital

	Unaudited as at 30 June 11 £		Unaudited as at 30 June 10 £		Audited as at 31 Dec 10 £
Authorised
36,000,000 Ordinary shares of 10 pence each	3,600,000		3,600,000		3,600,000
Allotted, called up and fully paid
14,556,844 Ordinary shares of 10 pence each	1,455,684		1,455,684		1,455,684

There are no restrictions on the transfer of shares in Immedia Group Plc. All shares carry equal voting rights.

11. Trade and other payables

	Unaudited as at 30 June 11 £		Unaudited as at 30 June 10 £		Audited as at 31 Dec 10 £
Other trade payables	310,676		131,149		353,907
Other taxation & social security	123,002		125,438		107,785
Non-trade payables and accrued expenses	666,614		817,346		691,763
	1,100,292		1,073,933		1,153,455

Notes to the condensed consolidated interim financial statements continued

12. Loss per share

	Unaudited as at 30 June 11 Number		Unaudited as at 30 June 10 Number		Audited as at 31 Dec 10 Number
Weighted average number of shares in issue	14,556,844		14,556,844		14,556,844
Less weighted average number of own shares	(832,374)		(600,872)		(681,153)
Weighted average number of shares in issue for basic loss per share	13,724,470		13,955,972		13,875,691

The basic and diluted loss per share are calculated using the after tax loss attributable to equity shareholders for the financial period of £29,374 (30 June 2010: loss of £100,324; 31 December 2010: loss of £48,566) divided by the weighted average number of Ordinary shares in issue in each of the relevant periods: 30 June 2011: 13,724,470 shares (30 June 2010: 13,955,972 shares; 31 December 20: 13,875,691 shares). 

The weighted number of shares used for the diluted loss per share is calculated after reflecting the outstanding share options at the period end.  However, in accordance with IAS 33, the diluted basic loss per share is stated as the same amount as basic as there is no dilutive effect.

 

END

 

 

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