Half Yearly Report

RNS Number : 3704N

Immedia Group PLC

27 September 2012

 

IMMEDIA GROUP PLC

("Immedia" or "the Company")

INTERIM RESULTS

Immedia Group Plc (AIM: IME), which provides bespoke radio stations and a range of in-store media solutions for retailers, today announces its interim results for the half year to 30 June 2012.

Key Points

·      H1 2012 operating profits reduced to operating loss after Lloyds Pharmacy contract lost and another customer put into administration with bad debts;

·      Cash used to reduce debt;

·      Improved outlook for H2 2012:

·      Reorganisation will deliver substantial operational cost efficiencies going forward;

·      New major brand contract expected Q4 2012 as a result of successful trial;

·      More in-store trials now at planning stage with other major brands.

Financial Highlights

	Unaudited  Half year to   30 June 2012	Unaudited  Half year to   30 June 2011	Audited  Year to 31 December 2011
Revenue	£1,133,035	£1,504,011	£2,968,184
Results from operating activities	£(191,139)	£(28,976)	£(166,307)
Loss before income tax	£(191,182)	£(29,374)	£(164,500)
Loss for period attributable to equity shareholders	£(191,182)	£(29,374)	£(142,066)
Basic and diluted loss per share (pence)	(1.39)p	(0.21)p	(1.04)p
Cash and cash equivalents	£271,361	£611,311	£738,150

Bruno Brookes, Chief Executive Officer of Immedia, said:

"The loss of the Lloyds Pharmacy contract in January, together with the administration of a long standing client with bad debt, have driven a disappointing outcome to the first half results.

Profitability assisted by the continuation of new business development and reorganising the business to deliver substantial cost efficiencies are our absolute focus. We remain confident of recovery in the second half of 2012."

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

Chief Executive Officer's Review

The loss of the Lloyds Pharmacy contract in January, together with the administration of a long standing client with bad debt, have driven a disappointing outcome to the first half results.

However, the increased investment in sales and marketing has resulted in new business engagements with deals in progress. In April we rolled out a new music channel to O2 retail installing Dreamstream technology and ongoing content to 450 stores. We have also secured a deal with Urban Decay to roll out music and video services to their 68 cosmetics concessions in the UK. We expect to sign a new contract with a major brand, to be announced in Q4 2012.

Most of the £467,000 cash outflows in the period were used to reduce debt: £242,000 to repay all borrowings on the invoice financing facility (which remains in place for future use) and £137,000 for a prior period liability.  The total of EBITDA losses and working capital movements during the period was a cash outflow of £88,000.

Profitability assisted by the continuation of new business development and reorganising the business to deliver substantial cost efficiencies are our absolute focus. We remain confident of recovery in the second half of 2012.

Bruno Brookes

Chief Executive Officer

27 September 2012

Consolidated statement of comprehensive income

	Note	Unaudited Half year to 30 June 12 £		Unaudited Half year to 30 June 11 £		Audited Year ended  31 Dec 11  £
Revenue		1,133,035		1,504,011		2,968,184
Cost of sales		(473,211)		(624,330)		(1,163,891)
Gross profit		659,824		879,681		1,804,293
Administrative expenses before depreciation, amortisation and impairment charges		(790,463)		(843,148)		(1,782,910)
Earnings before interest, depreciation, amortisation and impairment charges (EBITDA)		(130,639)		36,533		21,383
Depreciation amortisation and impairment charges		(60,500)		(65,509)		(187,690)
Results from operating activities		(191,139)		(28,976)		(166,307)
Finance income		454		825		1,807
Finance cost		(497)		(1,223)		-
Net finance (cost)/income		(43)		(398)		1,807
Loss before income tax		(191,182)		(29,374)		(164,500)
Income tax income	4	-		-		22,434
Loss and total comprehensive income for the period attributable to equity shareholders		(191,182)		(29,374)		(142,066)
Continuing and total operations
Loss per share - basic and diluted	12	(1.39)p		(0.21)p		(1.04)p

Consolidated balance sheet

	Note	Unaudited  as at  30 June 12  £		Unaudited  as at  30 June 11  £		Audited as at  31 Dec 11 £
Assets
Property, plant and equipment	5	157,143		215,979		205,112
Intangible assets	6	222,643		294,121		229,137
Total non-current assets		379,786		510,100		434,249
Current assets
Inventories	7	142,371		182,447		146,117
Trade and other receivables	8	312,746		546,069		744,146
Prepayments		88,011		106,340		89,932
Cash and cash equivalents	9	271,361		611,311		738,150
Total current assets		814,489		1,446,167		1,718,345
Total assets		1,194,275		1,956,267		2,152,594
Equity
Share capital	10	1,455,684		1,455,684		1,445,684
Share premium		3,586,541		3,586,541		3,586,541
Merger reserve		2,245,333		2,245,333		2,245,333
Retained losses		(6,995,976)		(6,692,103)		(6,804,794)
Total equity		291,582		595,455		482,764
Liabilities
Trade and other payables	11	60,000		-		150,000
Total non-current liabilities		60,000		-		150,000
Loans and borrowings		-		11,000		-
Trade and other payables	11	693,720		1,100,292		1,126,779
Deferred income		148,973		249,520		393,051
Total current liabilities		842,693		1,360,812		1,519,830
Total liabilities		902,693		1,360,812		1,669,830
Total equity and liabilities		1,194,275		1,956,267		2,152,594

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 2012 (unaudited)
Balance at 1 January 2012	1,455,684	3,586,541	2,245,333	(6,804,794)	482,764
Transactions with owners	-	-	-	-	-
Loss and total comprehensive income for the period	-	-	-	(191,182)	(191,182)
Balance at 30 June 2012	1,455,684	3,586,541	2,245,333	(6,995,976)	291,582
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 31 December 2011 (audited)
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 year	-	-	-	(142,066)	(142,066)
Balance at 31 December 2011	1,455,684	3,586,541	2,245,333	(6,804,794)	482,764

Consolidated statement of cash flows

	Note	Unaudited  Half Year to  30 June 12  £		Unaudited  Half Year to  30 June 11  £		Audited Year ended  31 Dec 11  £
Cash flows from operating activities
Loss for the period before income tax		(191,182)		(29,374)		(164,500)
Adjustments for:
Depreciation amortisation and impairment charges		60,500		65,509		187,690
Financial income		(454)		(825)		(1,807)
Financial expense		497		1,223		-
Profit on sale of property, plant and equipment		-		(1,300)		(1,300)
Decrease/(increase) in trade and other receivables		433,321		(210,771)		(149,828)
Decrease/(increase) in inventories		3,746		(64,590)		(28,260)
(Decrease)/increase in trade and other payables		(767,137)		96,394		173,797
Net cash (outflow)/inflow from operating activities		(460,709)		(143,734)		15,792
Taxation
Taxation		-		-		22,436
Cash flows from investing activities
Proceeds from sale of property, plant and equipment		-		1,300		2,790
Interest received		454		825		1,807
Acquisition of property, plant and equipment	5	(5,237)		(50,099)		(96,122)
Acquisition of intangible assets	6	(800)		(2,000)		(3,795)
Net cash (outflow) from investing activities		(5,583)		(49,974)		(95,320)
Cash flows from financing activities
Interest paid		(497)		(1,223)		-
Repayment of borrowings		-		(11,000)		(22,000)
Net cash (outflow) from financing activities		(497)		(12,223)		(22,000)
Net (decrease) in cash and cash equivalents		(466,789)		(205,931)		(79,092)
Cash and cash equivalents at beginning of period		738,150		817,242		817,242
Cash and cash equivalents at end of period	9	271,361		611,311		738,150

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 2012 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 2011 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 2011 are available at http://www.immediaplc.com/investors

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

2. Basis of preparation

These consolidated financial statements for the half year ended 30 June 2012 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 2011.

On the basis of current financial projections prepared up to the end of 2013, recent news of new contracts and 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 27 September 2012.

3. Significant accounting policies

The accounting policies set out in detail in note 3 of the Group's consolidated financial statements to 31 December 2011 have been applied consistently to these unaudited financial statements to 30 June 2012, including:

(a) Revenue

Revenue represents the amounts receivable by the Group for the provision of its services, excluding value added tax.  Revenue from production services is billed on time based subscriptions and recognised on the date of broadcast.  Revenue from equipment sales is recognised on the date of delivery and configuration whilst revenue from content delivery and equipment maintenance services is billed on time based subscriptions and recognised on completion.

Notes to the condensed consolidated interim financial statements continued

4. Income tax credit in the income statement

	Unaudited as at 30 June 12 £		Unaudited as at 30 June 11 £		Audited as at 31 Dec 11 £
Current tax
Current period	-		-		-
Adjustment in respect of prior periods	-		-		(22,434)
Total tax credit in consolidated income statement	-		-		(22,434)

5. Property, plant and equipment

	Plant &	Fixtures &	Motor	Network	Total
	equipment	fittings	vehicles	equipment
	£	£	£	£	£
Cost
At 1 January 2012	795,059	489,419	22,000	661,436	1,967,914
Additions	2,800	2,387	-	50	5,237
Disposals and retirements	-	-	-	(473,015)	(473,015)
At 30 June 2012	797,859	491,806	22,000	188,471	1,500,136
Depreciation and impairment losses
At 1 January 2012	731,548	366,710	4,854	659,690	1,762,802
Charge for period	15,426	34,524	2,750	506	53,206
On disposals & retirements	-	-	-	(473,015)	(473,015)
At 30 June 2012	746,974	401,234	7,604	187,181	1,342,993
Carrying amounts
Unaudited at 30 June 2012	50,885	90,572	14,396	1,290	157,143
Audited at 31 December 2011	63,511	122,709	17,146	1,746	205,112
Unaudited at 30 June 2011	68,149	125,437	19,896	2,497	215,979

Notes to the condensed consolidated interim financial statements continued

6. Intangible assets

	Customer	Video	Content	Goodwill	Total
	relationships	library	Delivery
	£	£	£	£	£
Cost
At 1 January 2012	566,880	126,000	42,835	1,173,310	1,909,025
Additions in period	-	-	800	-	800
At 30 June 2012	556,880	126,000	43,635	1,173,310	1,909,825
Amortisation and impairment losses
At 1 January 2012	566,880	126,000	13,008	974,000	1,679,888
Charge for period	-	-	7,294	-	7,294
At 30 June 2012	556,880	126,000	20,302	974,000	1,687,182
Carrying amounts
Unaudited at 30 June 2012	-	-	23,333	199,310	222,643
Audited at 31 December 2011	-	-	29,827	199,310	229,137
Unaudited at 30 June 2011	-	60,275	34,536	199,310	294,121

There were no indications of impairment of intangible assets at 30 June 2012 and the annual impairment tests will be carried out at the year end.

7. Inventories

	Unaudited as at 30 June 12 £		Unaudited as at 30 June 11 £			Audited as at 31 Dec 11 £
Work in progress	6,861		4,009			45,076
Finished goods	135,510		178,438			101,041
	142,371			182,447		146,117

The inventory expense included in cost of sales in the consolidated statement of comprehensive income was £48,135 (30 June 2011: £79,279; 31 December 2011: £187,895). Impairment charges for obsolete and slow moving inventories were £nil (30 June 2011: £nil; 31 December 2011: £23,249).

Notes to the condensed consolidated interim financial statements continued

8. Trade and other receivables

	Unaudited as at 30 June 12 £		Unaudited as at 30 June 11 £		Audited as at 31 Dec 11 £
Trade receivables	303,836		519,577		706,742
Other debtors	8,910		26,492		37,404
	312,746		546,069		744,146

As 30 June 2012 trade receivables are shown after a provision for impairment of £37,213 (30 June 2011: £20,000; 31 December 2011: £18,284) arising from slow moving debts and disputed charges. During the period to 30 June 2012 the provision for impairment was increased by £18,929 and bad debts were written off totalling £36,148.  All debts are due within one year.

At 30 June 2012 the total of trade receivables past due, net of provision for impairment, was as follows:

	Unaudited as at 30 June 12 £		Unaudited as at 30 June 11 £		Audited as at 31 Dec 11 £
Up to 3 months past due	86,545		52,348		169,104

9. Cash and cash equivalents

	Unaudited as at 30 June 12 £		Unaudited as at 30 June 11 £		Audited as at 31 Dec 11 £
Bank balances	7,040		15,005		6,272
Call deposits	264,321		596,306		731,878
Cash and cash equivalents	271,361		611,311		738,150

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 12 £		Unaudited as at 30 June 11 £		Audited as at 31 Dec 11 £
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 12 £		Unaudited as at 30 June 11 £		Audited as at 31 Dec 11 £
Falling due within one year
Invoice financing facility (secured)	72		-		242,612
Other trade payables	243,008		310,676		254,022
Other taxation & social security	55,818		123,002		154,769
Non-trade payables and accrued expenses	394,822		666,614		475,376
	693,720		1,100,292		1,126,779
Falling due after more than one year
Non-trade payables and accrued expenses	60,000		-		150,000

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 11 Number		Audited as at 31 Dec 11 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)		(832,374)		(832,374)
Weighted average number of shares in issue for basic loss per share	13,724,470		13,724,470		13,724,470

The basic and diluted loss per share are calculated using the after tax loss attributable to equity shareholders for the financial period of £191,182 (30 June 2011: loss of £29,374; 31 December 2011: loss of £142,066) divided by the weighted average number of Ordinary shares in issue in each of the relevant periods: 30 June 2012: 13,724,470 shares (30 June 2011 and 31 December 2011: 13,724,470 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.

In accordance with Rule 26 of the AIM Rules for Companies, this interim financial statement will be available on the company's website at www.immediaplc.com 

 

END

 

 

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