Interim Results

RNS Number : 6649Y
Immedia Group PLC
08 September 2009
 



8 September 2009


IMMEDIA GROUP PLC


INTERIM RESULTS


Immedia Group Plc, the UK's leading provider of live, bespoke Radio Stations and Digital Signage for retail, today announces its interim results for the half year to 30 June 2009.


Operational Highlights


  • Reduced first half operating loss of £40,615 (2008 H1 operating loss £115,423)

  • Growth in revenues and margins whilst overhead costs reduced

  • Cash in bank £706,596 as at 30 June 2009 (£645,143 as at 30 June 2008)

  • New 3 year contract with major UK high street bank announced April 2009

  • Deepening relationships with all clients

  • Continuing high level of interest from new business prospects



Financial Highlights


Unaudited 

Half year to 

 30 June 2009 

Unaudited 

Half year to 

 30 June 2008 




Revenue

£ 1,749,175 

£ 1,608,872 




Results from operating activities

£ (40,615)

£ (115,423)




Loss before income tax

£ (39,705)

£ (101,535)




Loss for period attributable to equity shareholders

£ (38,655)

£ (101,535)




Basic and diluted loss per share (pence)

(0.28)p

(0.71)p




Cash and cash equivalents

£ 706,596 

£645,143 

  Bruno Brookes, Chief Executive of Immedia, said:


'Immedia continues its progress in 2009, emphasising the strength of its relationships with leading  UK brands.' 


Immedia Group Plc


Bruno Brookes - Chief Executive

+44 (0) 1635 556 200


Hudson Sandler


Nick Lyon 

+44 (0) 20 7796 4133



Daniel Stewart & Company Plc


Simon Leathers / Simon Starr 

+44(0) 20 7776 6550

  Chief Executive's Review


I am pleased to present our results for the six months ended 30 June 2009 and to report Immedia's continuing  progress during the half-year.


Results


Immedia's progress in 2009 emphasises the strength of its relationships with leading UK brands. Revenue for the period was £1,749,175 (up 8.7% on 2008: £1,608,872) with the operating loss reduced from £115,423 to £40,615.


Our focus on cost control and profitability continues: overhead costs were reduced during the first half of 2009 and the benefits will be seen in the second half of 2009 and in 2010. The Group closed the period with £706,596 cash in the bank (30 June 2008: £645,143).


Subscription Stations


Our subscription radio stations continue to perform well, with ongoing opportunities to help our clients with new product development.


In April we announced we had won a three year contract with a leading UK high street bank. This contract followed a successful trial period and memorandum of understanding announced in July 2008. Under this contract, Immedia provides the bank's retail branches with a RadioVision network. The award winning 'RadioVision' is Immedia's latest revolutionary product which innovatively combines in-store radio with synchronised bespoke video content. Through this unique and impressive technology, radio works in unison with plasma and LCD screens to engage consumers and staff. The specially consolidated video content can be instantly triggered by presenters when explaining products and services. Immedia provides the radio service together with bespoke audio and visual content, all hardware, network delivery and maintenance support for the store network.


Elsewhere, we continue to work closely with HSBC; the HSBC Live! subscription radio station is now broadcast to over 1,000 branches across the UK and to other HSBC buildingsWe look forward to developing our relationship with HSBC further


Our strong relationship with SPAR has seen SPAR LIVE radio deployed to 35 additional stores in the first half of 2009 and is now broadcast to circa 1,330 stores across the UK.


GAME Live! Is broadcast to approximately 38GAME stores across the UKand we have added maintenance to the services we provide in 2009.

  

Lloyds Pharmacy Live! operates across all 1,475 stores and, with our renewed contract, we continue to explore further opportunities to assist with new product development.


On 4 September we signed a two year contract extension to provide 'IKEA LIVE' to all 21 IKEA stores across the UK. A further contract has also been signed for the provision of a regionalised version of 'IKEA LIVE' for the Republic of Ireland starting with the Dublin store, complete with Irish tailored content. These contracts follow the original three year contract signed in September 2006 and now also include sound installation, consultancy and a maintenance programme, together with an additional podcast service.

 

Installation and maintenance services


During the first half of 2009 we completed audio and visual installations for the TopShop and TopMan brands at various key locations in the UK and Eire and have other installation projects currently in progress for completion before Christmas. 


We now provide maintenance services for the majority of our customers under contract.

.

Outlook


Immedia has continued its progress in close collaboration with leading brands throughout the first half of 2009.  In particular, our RadioVision service attracts great interest in competitive market as companies seek new ways to win customers.  



Bruno Brookes

Chief Executive

07 September 2009


  Condensed consolidated statement of comprehensive income




 

Note

Unaudited

Half year to

30 June 09

£ 


Unaudited 

Half Year to 

30 June 08

£ 


Year Ended 

31 Dec 08 


£ 








Revenue


1,749,175 


1,608,872 


3,875,010 








Cost of sales


(759,076)


(667,262)


(1,608,926)








Gross profit


990,099 


941,610 


2,266,084 








Administrative expenses


(1,030,714)


(1,057,033)


(2,208,968)















Results from operating activities


(40,615)


(115,423)


57,116 








Finance income


1,824 


13,911 


25,925 








Finance costs


(914)


(23)


(107)








Net finance income


910 


13,888 


25,818 















(Loss)/profit before income tax


(39,705)


(101,535)


82,934 








Income tax income/(expense)


1,050 


- 


(2,816)








(Loss)/profit and total comprehensive (loss)/profit for the period attributable to equity shareholders



(38,655)



(101,535)



80,118 















Continuing operations







(Loss)/earnings per share - basic and diluted 

11

(0.28)p


(0.71)p


0.56p










  Condensed consolidated statement of financial position





Note

Unaudited 

as at 

30 June 09 


£ 


Unaudited 

as at 

30 June 08 


£ 


As at 

 31 Dec 08 



£ 








Assets







Property, plant and equipment

4

158,298 


154,253 


196,479 

Intangible assets 

5

284,785 


334,176 


291,085 

Total non-current assets


443,083 


488,429 


487,564 








Current assets







Inventories

6

102,415 


756 


96,142 

Trade and other receivables

7

485,996 


670,416 


617,003 

Prepayments for current assets


134,251 


178,251 


131,282 

Cash and cash equivalents

8

706,596 


645,143 


883,197 

Total current assets


1,429,258 


1,494,566 


1,727,624 

Total assets


1,872,341 


1,982,995 


2,215,188 















Equity







Share capital 

9

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


(6,695,979)


(6,814,264)


(6,666,324)

Total equity


591,579 


473,294 


621,234 








Liabilities







Loans and borrowings


33,000 


- 


44,000 

Deferred tax liabilities


14,246 


12,480 


15,296 

Total non-current liabilities


47,246 


12,480 


59,296 








Loans and borrowings


22,000 


- 


22,000 

Trade and other payables

10

1,143,853 


1,408,243 


1,434,798 

Deferred income


67,663 


88,978 


77,860 

Total current liabilities


1,233,516 


1,497,221 


1,534,658 

Total liabilities


1,280,762 


1,509,701 


1,593,954 

Total equity and liabilities


1,872,341 


1,982,995 


2,215,188 















Total net current assets/(liabilities)


195,742


(2,655)


192,966

Total net non-current assets


395,837


475,949


428,268

Net assets


591,579


473,294


621,234



  Condensed 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



£ 







For the half year ended 30 June 2009 (unaudited)










Balance at 1 January 2009

1,455,684

3,586,541

2,245,333

(6,666,324)

621,234 

Total comprehensive loss for the period


-


-


-


(38,655)


(38,655)

Equity settled share options

-

-

-

9,000 

9,000 

Balance at 30 June 2009

1,455,684

3,586,541

2,245,333

(6,695,979)

591,579 



















For the half year ended 30 June 2008 (unaudited)










Balance at 1 January 2008

1,455,684

3,586,541

2,245,333

(6,712,729)

574,829 

Total comprehensive loss for the period


-


-


-


(101,535)


(101,535)

Balance at 30 June 2008

1,455,684

3,586,541

2,245,333

(6,814,264)

473,294 



















For the year ended 31 December 2008











Balance at 1 January 2008

1,455,684

3,586,541

2,245,333

(6,712,729)

574,829 

Total comprehensive profit for the period


-


-


-


80,118 

 

80,118 

Purchase of own shares by employee benefit trust 


-


-


-


(33,713)


(33,713)

Balance at 31 December 2008

1,455,684

3,586,541

2,245,333

(6,666,324)

621,234 








Condensed consolidated statement of cash flows





Note

Unaudited 

Half Year to 

30 June 09 

£ 


Unaudited 

Half Year to 

30 June 08 

£ 


Year Ended 

31 Dec 08 


£ 








Cash flows from operating activities







(Loss)/profit for the period attributable to equity shareholders



(38,655)



(101,535)



80,118 

Adjustments for:







Depreciation, amortisation and impairment


64,616 


132,375 


247,827 

Financial income


(1,824)


(13,912)


(25,925)

Financial expense


914 


23 


107 

Loss on sale of property, plant and equipment


294 


- 


2,871 

Deferred tax (credit)/charge


(1,050)



2,816 

Decrease/(increase) in trade and other receivables



128,038 



(21,142)



79,240 

(Increase)/decrease in inventories


(6,273)


2,947 


(92,439)

(Decrease)/increase in trade and other payables



(301,142)



5,430 


 

20,867 








Net cash from operating activities


(155,082)


4,186 


315,482 








Cash flows from investing activities







Proceeds from sale of property, plant and equipment



89 



- 



423 

Interest received


1,824 


13,912 


25,925 

Acquisition of property, plant and equipment

4

(20,518)


(34,777)


(152,658)

Net cash from investing activities


(18,605)


(20,865)


(126,310)








Cash flows from financing activities







Interest paid


(914)


(23)


(107)

Repayment of borrowings


(11,000)


- 


- 

Proceeds from long-term borrowings


- 


- 


66,000 

Equity settled share options


9,000 


- 


- 

Purchase of own shares for EBT


- 


- 


(33,713)

Net cash from financing activities


(2,914)


(23)


32,180 








Net (decrease)/increase in cash and cash equivalents



(176,601)



(16,702)



221,352 








Cash and cash equivalents at beginning of period



883,197 



661,845 



661,845 








Cash and cash equivalents at end of period


8


706,596 



645,143 



883,197 


  

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 2009 comprise the Company and its subsidiaries (together referred to as the 'Group').  The consolidated financial statements of the Group as at and for the year ended 31 December 2008 are available on request from the Company's registered office (address as above) or at www.immediaplc.com


The Group primarily is involved in marketing and communication services through radio and screen based media. 



2. Basis of preparation


These consolidated financial statements for the half year ended 30 June 2009 are unaudited.  They have been prepared and approved by the directors in accordance with 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 2008.


The Group has applied revised IAS1 Presentation of Financial Statements (2007), which became effective as of 1 January 2009, including the re-presentation of comparative information in conformity with the revised standard. 


On the basis of current financial projections prepared up to the end of 2010, 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 07 September 2009.


 

3Significant accounting policies


The accounting policies set out in detail in note 3 of the Group's consolidated financial statements to 31 December 2008 have been applied consistently to these unaudited financial statements to 30 June 2009, 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 these 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.


 

4. Property, plant and equipment



Plant and

Fixtures and 

Network

Total 


equipment

fittings 

equipment



£

£ 

£

£ 











Cost





At 1 January 2009

695,484

396,938 

659,509

1,751,931 

Additions

6,045

13,437 

1,036

20,518 

Disposals

-

(430)

-

(430)


             

             

                  

                 

At 30 June 2009

701,529

409,945 

660,545

1,772,019 


             

             

                  

                 

Depreciation and impairment losses





At 1 January 2009

679,125

256,406 

619,921

1,555,452 

Charge for period

5,328

25,393 

27,595

58,316 

On disposals

-

(47)

-

(47)


             

             

                 

                 

At 30 June 2009

684,453

281,752 

647,516

1,613,721 


             

             

                 

                 

Carrying amounts





Unaudited at 30 June 2009

17,076

128,193 

13,029

158,298 


             

             

                  

                 

At 31 December 2008

16,359

140,532 

39,588

196,479 


             

             

                  

                 

Unaudited at 30 June 2008

18,580

49,084 

86,589

154,253 


             

             

                  

                 

  

5. Intangible assets



Customer

Video 

Goodwill

Total


relationships

library




£

£

£

£






Cost





At 1 January and 30 June 2009

566,880

126,000

1,173,310

1,866,190






Amortisation and impairment losses





At 1 January 2009

566,880

34,225

974,000

1,575,105

Charge for period

-

6,300

-

6,300

At 30 June 2009

566,880

40,525

974,000

1,581,405






Carrying amounts





Unaudited at 30 June 2009

-

85,475

199,310

284,785






At 31 December 2008

-

91,775

199,310

291,085






Unaudited at 30 June 2008

36,755

98,111

199,310

334,176








6. Inventories



Unaudited

as at

30 June 09

£


Unaudited

as at

30 June 08

£



As at

31 Dec 08

£







Work in progress

28,455


756


29,122

Finished goods

73,960


-


67,020


102,415


756


96,142


The inventory expense included in cost of sales in the Consolidated Income Statement was £119,836 (30 June 2008: £141,441; 31 December 2008: £528,325). Impairment charges for obsolete and slow moving inventories were £nil (30 June 2008: £nil; 31 December 2008: £1,958).

  

7. Trade and other receivables



Unaudited

as at

30 June 09

£


Unaudited

as at

30 June 08

£



As at

31 Dec 08

£







Trade receivables

380,132


585,365


554,607

Other debtors

105,864


85,051


62,396


485,996


670,416


617,003


As 30 June 2009 trade receivables are shown after a provision for impairment of £26,716 (30 June 2008: £10,025; 31 December 2008: £28,064) arising from slow moving debts and disputed charges. During the period to 30 June 2009 £1,348 of the 2008 provision for impairment was utilised.  All debts are due within one year.


At 30 June 2009 the total of trade receivables past due, net of provision for impairment, was as follows:



Unaudited

as at

30 June 09

£


Unaudited

as at

30 June 08

£



As at

31 Dec 08

£







Up to 3 months past due

178,396


274,405


239,930

Over 3 months past due

-


73,157


55,177


178,396


347,562


295,107



8. Cash and cash equivalents



Unaudited

as at

30 June 09

£


Unaudited

as at

30 June 08

£



As at

31 Dec 08

£







Bank balances

70,565


1,175


11,359

Call deposits

636,031


643,968


871,838

Cash and cash equivalents

706,596


645,143


883,197


 

9Share Capital



Unaudited

as at

30 June 09

£


Unaudited

as at

30 June 08

 £



As at

31 Dec 08

£







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







Movements in period






At beginning and end of period

1,455,684


1,455,684


1,455,684



10. Trade and other payables



Unaudited

as at

30 June 09

£


Unaudited

as at

30 June 08

£



As at

31 Dec 08

£







Trade payables due to related parties

6,231


6,190


4,266

Other trade payables

421,782


581,958


615,626

Other taxation & social security

107,772


149,952


151,858

Non-trade payables and accrued expenses

608,068


670,143


663,048


1,143,853


1,408,243


1,434,798


 

11(Loss)/earnings per share


 
Unaudited
as at
30 June 09
Number
 
Unaudited
as at
30 June 08
Number
 
 
As at
31 Dec 08
Number
 
 
 
 
 
 
Weighted average number of shares in issue
14,556,844 
 
14,556,844 
 
14,556,844 
Less weighted average number of own shares
(564,854)
 
(213,500)
 
(367,097)
Weighted average number of shares in issue for basic loss per share
13,991,990 
 
14,343,344 
 
14,189,747 

 

 

The basic and diluted (loss)/earnings per share are calculated using the after tax (loss)/profit and total comprehensive (loss)/profit attributable to equity shareholders for the financial period of £38,655 (30 June 2008loss of £101,535; 31 December 2008profit of £80,118) divided by the weighted average number of Ordinary shares in issue in each of the relevant periods: 30 June 2009: 13,991,990 shares (30 June 200814,343,344 shares; 31 December 200814,189,747 shares).  


The weighted number of shares used for the diluted (loss)/earnings per share is calculated after reflecting the outstanding share options at the period end. But 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.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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