Preliminary Statement of Results-FY to 31 Dec 2012

RNS Number : 9027A

Immedia Group PLC

26 March 2013

 



IMMEDIA GROUP PLC

Preliminary Statement of Results for the FY to 31 December 2012

Immedia Group Plc ("Immedia" or the "Group"), which provides bespoke radio stations and a range of in-store media solutions for retailers, today announces its preliminary financial results for the year to 31 December 2012.

Overview

·     Overall 2012 was a disappointing year for the Group with a loss after tax of £150,755 on reduced revenue of £2,486,783.

·      But the fall in EBITDA in 2012 compared to 2011 is entirely explained by bad debts in 2012.

·      A major cost reduction and restructuring was completed in the second half of 2012, and H2 profits after tax of £40,427 have reduced H1 losses.

·      Important new contracts were won including with Superdrug and we were also appointed by the new owners of GAME to continue the service.

·      Improved outlook for profitability in 2013.

·      The Board remains committed to the realisation of shareholder value and will take the necessary action to achieve this  goal.

Financial Summary

	12 months to 31 December 2012	12 months to 31 December 2011
Revenue	£2,486,783	£2,968,184
(Loss)/earnings before interest, taxation , depreciation, amortisation and impairment charges (EBITDA)	£(49,688)	£21,383
Results from operating activities	£(166,583)	£(166,307)
Loss before income tax	£(167,173)	£(164,500)
Loss and total comprehensive income for the year attributable to equity shareholders of the parent	£(150,755)	£(142,066)
Basic and diluted loss per share	(1.10)p	(1.04)p
Year-end balance of cash and cash equivalents *	£290,574	£738,150

* The outflows of cash in 2012 were used to repay a backlog of historic licencing liabilities, agreed a year ago after many years in dispute (£222,000 paid in 2012), to repay borrowings under the invoice financing facility (£112,000 repaid in 2012) and for one-off restructuring costs of £55,000 and unpaid debts of £73,000. After positive movements in working capital of £15,000 the overall cash reduction was £447,000 for the year giving closing cash balances of £291,000. The business expects to return to net cash generation again in 2013.

Bruno Brookes, Chief Executive of Immedia, said: 

"…Our visibility to new potential clients has risen sharply, harnessing new opportunities for growth.  In the second half of the year we formed a number of strategic partnerships and as a result have since launched services to four new major brands in 2012, as well as extending our Lloyds Banking Group contract.

Whilst I remain cautious about the economic landscape which affected our results for the last year, I am confident in our business as the growth in customer experience and multi sensory retailing continues."

Enquiries:

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

Chairman's Statement

2012 was a disappointing year for the Group with a loss after tax of £150,755 on reduced revenue of £2,486,783.

We went into the year optimistic that we could build on the results for 2011 but two early reversals of fortune put the business on the back foot. The loss of a major contract after a long and successful partnership was a bitter blow and this was followed by Game going into administration with a bad debt adding to the consequent loss of revenue.

A major cost reduction and restructuring has followed.

The drive to win new business continued with renewed vigour and important new contracts were won including Superdrug. We were also appointed by the new owners of Game to continue the service.

Revenue from the contract wins did not come in time to significantly impact the 2012 results but will contribute in 2013.

We must be cautious in terms of the outlook for 2013. Nonetheless cash in the bank, a reduced cost base and new contracts coming on-stream early in the financial year give a degree of optimism for a return to profitability.

The Board remains committed to the realisation of shareholder value and will take the necessary action to achieve this goal.

Geoff Howard-Spink

Chairman

Chief Executive's Review

I am pleased to present our full year results for the financial year ended 31 December 2012.

2012 was set to be a much better year for Immedia following investments in new marketing tools and a bolstered sales team.  However after losing two contracts due to client cost cutting and a case of administration, we faced new financial pressure to deliver return for investors.

At the half year we reported revenue of £1,133,035 and losses after tax of £191,182.  In the second half we reviewed and restructured many of the costs in the business, grew our revenues to £1,353,748 and achieved an operating profit of £24,556 (or £79,426 before restructuring costs) and a profit after tax of £40,427. The restructuring helped reduce the overall loss for the year to £150,755 and will deliver a significant improvement in profitability for 2013.

On the business development side, our visibility to new potential clients has risen sharply, harnessing new opportunities for growth.  In the second half of the year we formed a number of strategic partnerships and as a result have since launched services to four new major brands as well as extending our Lloyds Banking Group contract.

Whilst I remain cautious about the economic landscape which affected our results for the last year, I am confident in our business as the growth in customer experience and multi sensory retailing continues.  In the meantime the company has my full commitment to delivering first class services for our clients, strategic growth and a stronger pipeline and profitability.

Bruno Brookes

Chief Executive

Consolidated statement of comprehensive income

for the year ended 31 December 2012

	Note	2012	2011
		£	£
Revenue		2,486,783	2,968,184
Cost of sales		(1,038,608)	(1,163,891)
Gross profit		1,448,175	1,804,293
Administrative expenses before depreciation, amortisation and impairment charges		(1,497,863)	(1,782,910)
(Loss)/earnings before interest, taxation, depreciation, amortisation and impairment charges (EBITDA)		(49,688)	21,383
Depreciation, amortisation and impairment charges		(116,895)	(187,690)
Results from operating activities		(166,583)	(166,307)
Finance income		1,079	1,807
Finance cost		(1,669)	-
Net finance (cost)/income		(590)	1,807
Loss before income tax		(167,173)	(164,500)
Income tax income		16,418	22,434
Loss and total comprehensive income for the year attributable to equity shareholders of the parent		(150,755)	(142,066)
Continuing and total operations
Loss per share - basic and diluted	3	(1.10)p	(1.04)p

Consolidated balance sheet

At 31 December 2012

			2012 £		2011 £
Assets
Property, plant and equipment			95,814		205,112
Intangible assets			215,265		229,137
Total non-current assets			311,079		434,249
Current assets
Inventories			134,292		146,117
Trade and other receivables			482,709		744,146
Prepayments			74,822		89,932
Cash and cash equivalents			290,574		738,150
Total current assets			982,397		1,718,345
Total assets			1,293,476		2,152,594
Equity
Share capital			1,455,684		1,455,684
Share premium			3,586,541		3,586,541
Merger reserve			2,245,333		2,245,333
Retained losses			(6,955,549)		(6,804,794)
Total equity			332,009		482,764
Liabilities
Trade and other payables			-		150,000
Total non-current liabilities			-		150,000
Trade and other payables			789,512		1,126,779
Deferred income			171,955		393,051
Total current liabilities			961,467		1,519,830
Total liabilities			961,467		1,669,830
Total equity and liabilities			1,293,476		2,152,594

Consolidated statement of changes in equity

	Attributable to equity shareholders of the Company
Total equity as at 31 December 2012	Share capital £	Share premium account £	Merger reserve £	Retained loss £	Total equity £
Balance at 1 January 2012	1,455,684	3,586,541	2,245,333	(6,804,794)	482,764
Loss and total comprehensive income for the year	-	-	-	(150,755)	(150,755)
(a)            Balance at 31 December 2012	1,455,684	3,586,541	2,245,333	(6,955,549)	322,009

Total equity as at 31 December 2011	Share capital £	Share premium account £	Merger reserve £	Retained loss £	Total equity £
Balance at 1 January 2011	1,455,684	3,586,541	2,245,333	(6,662,728)	624,830
Loss and total comprehensive income for the year	-	-	-	(142,066)	(142,066)
(b)            Balance at 31 December 2011	1,455,684	3,586,541	2,245,333	(6,804,794)	482,764

Consolidated statement of cash flows

for the year ended 31 December 2012

	2012 £	2011 £
Cash flows from operating activities
Loss for the year before income tax	(167,173)	(164,500)
Adjustments for:
Depreciation, amortisation and impairment charges	116,895	187,690
Financial income	(1,079)	(1,807)
Financial expense	1,669	-
Loss/(profit) on sale of property, plant and equipment	4,562	(1,300)
Decrease/(increase) in trade and other receivables and prepayments	276,567	(149,828)
Decrease/(increase) in inventories	11,825	(28,260)
(Decrease) in trade and other payables	(595,571)	(68,815)
Net cash from operating activities	(352,305)	(226,820)
Taxation
Taxation	16,418	22,436
Cash flows from investing activities
Proceeds from sale of property, plant and equipment	8,310	2,790
Interest received	1,079	1,807
Acquisition of property, plant and equipment	(5,797)	(96,122)
Acquisition of intangible assets	(800)	(3,795)
Net cash from investing activities	2,792	(95,320)
Cash flows from financing activities
Interest paid	(1,669)	-
Amounts (repaid)/advanced under invoice financing facility	(112,812)	242,612
Repayment of borrowings	-	(22,000)
Net cash from financing activities	(114,481)	220,612
Net decrease in cash and cash equivalents	(447,576)	(79,092)
Cash and cash equivalents at 1 January	738,150	817,242
Cash and cash equivalents at 31 December	290,574	738,150

Notes

The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. Statutory accounts for 2011 have been delivered to the registrar of companies, and those for 2012 will be delivered in due course.

The consolidated statement of comprehensive income, consolidated balance sheet at 31 December 2012, consolidated statement of changes in equity, consolidated statement of cash flows and associated notes have been extracted from the Group's 2012 statutory financial statements upon which the auditor's opinion is unqualified and which do not include any statements under sections 498(2) or 498(3) of the Companies Act 2006.

The 2012 accounts will be delivered to the registrar of companies following the Company's Annual General Meeting. The Annual Report and Notice of Annual General Meeting will be posted to the shareholders by 22 April 2013 and will be made available on the Company's website (www.immediaplc.com) at that time.

This preliminary announcement was approved by the Board on 26 March 2013.

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 consolidated financial statements of the Company as at and for the year ended 31 December 2012 comprise the Company and its subsidiaries (together referred to as the "Group").   The Group primarily is involved in marketing and communication services through radio and screen-based media together with the installation and maintenance of associated equipment.

2             Basis of preparation

The consolidated financial statements have been prepared and approved by the directors in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs").

The consolidated financial statements have been prepared in accordance with the same accounting policies adopted in the financial statements for the year to 31 December 2011.

The Directors have taken the settlement agreement made with a music licencing authority into account when reviewing forecasts of future cash flows of the Group.  They have also considered the Group's prospects for winning new business and reviewed a range of possible outcomes.  On the basis of current financial projections prepared up to the end of 2014, recent news of new contracts and of contract renewals, and continuing improvements in the management of costs, 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.

3             Loss per share

	2012 Number	2011  Number
Weighted average number of shares in issue	14,556,844	14,556,844
Less weighted average number of own shares	(832,374)	(832,374)
Weighted average number of shares in issue for basic loss per share	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 £150,755 (2011: loss of £142,066). The weighted number of shares used for the diluted loss per share is calculated after reflecting the outstanding share options throughout the year, 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.

 

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