Final Results

RNS Number : 0700K

Parallel Media Group PLC

19 June 2014

 

19 June 2014

Parallel Media Group plc

CHAIRMAN'S STATEMENT

I have great pleasure in presenting the Company's Annual Report and Financial Statements for the year ended 31 December 2013. Your company, Parallel Media Group plc ("PMG" or the "Group"), continues to make progress in its core businesses of Sport, Entertainment and Media, focusing especially on Asian emerging markets.

During the period under review PMG:

Continued to expand its Sports business, promoting four golf events: the Ballantine's Championship in Korea, The Kazakhstan Open and two new events in Singapore, namely, the Prudential Causeway Trophy, a Ryder Cup style competition between professional golfers from Singapore and Malaysia and Premier League Golf, a celebrity event involving a number of recent and past professional footballers presented by Marina Bay Sands, one of the leading business, leisure and entertainment destinations.

In Entertainment PMG specialises in connecting international brands with music solutions in the Asian markets and during the period under review has promoted three events with AIA, which is the largest independent publicly listed pan-Asian life insurance group with operations in 17 markets in the Asia-Pacific region.

The Group raised £2 million (before expenses) by way of issuing new shares to provide new working capital thereby, reducing the company's debt, strengthened the Group's balance sheet and providing working capital to enable the Group to pursue new business opportunities within our core business sectors.

Further to the introduction of new Companies Act requirements, the format of the Annual Report has been revised to include a Strategic Report. This is widely seen as an opportunity to set out a clear and concise overview of the Group's aims, strategies and business plan, whilst also highlighting those aspects of the Financial Statements that best reflect the Group's, and your Board's, progress and performance during the year.

The Strategic Report contains further information on the performance of the business both during the period under review and since the year end and some information formerly included in the Directors' Report.

During the period Leonard Fine, who was a long term non-executive director, has retired; I would like to take this opportunity to thank him for his support and wise counsel during the period of his engagement. In addition we welcome Timothy Sturm to the PMG board as a non executive director and believe that his considerable experience in advising companies strategically will be of great benefit. I would like to thank my fellow board members for their contribution and continued support during the period.

Finally, I would like to add my special thanks to all of our hard working staff around the world, especially those in Korea, whose lives have recently been affected by the terrible ferry tragedy.

I am personally excited at the future and look forward to 2014 with confidence.

David Ciclitira

Chairman

18th June 2014

Parallel Media Group plc (London)
Tom Downes / Belinda Laubi	Tel: [phone]
Sanlam Securities UK Limited (Nominated Adviser and Broker)
Virginia Bull	Tel: [phone]

STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2013

The Directors of the Company and its subsidiary undertakings (which together comprise Parallel Media Group "PMG" or the "Group") present their Strategic Report for the year ended 31st December 2013.

The Strategic Report is a new statutory requirement under the Companies Act 2006 and is intended to provide fair and balanced information which enables the Directors to be satisfied that they have complied with s172 of the Companies Act 2006, which sets out the Directors' duty to promote the success of the Company.

PRINCIPAL ACTIVITIES

The principal activities of the Group during the year ended 31 December 2013 were the promotion of sport, music events and associated media activities.

ORGANISATION REVIEW

PMG is a leading Communications Agency and has expertise in guiding some of the world's leading brands in the Asian markets. Founded in 1987 by Chairman, David Ciclitira and listed on the London Stock Exchange's AIM since August 2001. The operations of PMG are run from three main offices in London, Singapore and Seoul.

The Board of Directors comprises of the Chairman, two non executive directors and one independent non executive. Their profiles can be found on the company's website www.parallelmediagroup.com 

STRATEGY AND BUSINESS PLAN

PMG operates in three distinct areas, Sport, Entertainment and Media.

In Sport the Group specialises in golf and has been responsible for promoting tournaments such as the Championship (formerly the Ballantine's Championship), the 2013 event having taken place in Korea and the 2014 event having been held recently in Singapore and the Prudential Causeway Trophy, a Ryder Cup style competition between professional golfers from Singapore and Malaysia. In addition the Group has also promoted Premier League Golf, a celebrity event held at the prestigious Marina Bay Sandy resort.

In entertainment PMG specialises in connecting international brands with music solutions in the Asian markets. Recent projects include the promoting of a Justin Bieber concert in Korea, a Taylor Swift concert in Malaysia, both for AIA, the "Real Life Company" which is the largest independent publicly listed pan-Asian life insurance group with operations in 17 markets in the Asia-Pacific region. In addition PMG will be promoting the AIA Real Life: NOW Festival in Korea, a global event where the music and culture of the East and West will come together.

The first such event is scheduled to take place in August, 2014 with Lady Gaga secured as the headline act.

PMG's Media activities are conducted through its 50:50 joint venture company with Pico Global services to form Pico TV, a media company specialising in creating digital platforms for events and exhibitions. Pico TV has created a smart media application for global sporting events, such as golf tournaments and motor shows.

FINANCIAL AND PERFORMANCE REVIEW

During the year under review PMG completed two fundraisings. The first, in July also included a placing of new ordinary shares to raise £0.5m (before expenses), a debt capitalisation by the Directors , senior management and other creditors of PMG amounting to £0.79m and certain other arrangements designed to strengthen the Company's balance sheet.

The second fundraising took place in December when the Company raised, in aggregate £1.5 million (before expenses). Simultaneously, the Company effected a capital reorganisation resulting in one new ordinary share for every 24 existing ordinary shares. As a result of this reorganisation, PMG now has 3,009,223 ordinary shares in issue.

The purpose of this fundraising was to reduce bank debt and to provide working capital to enable the Company to pursue new business opportunities.

The statement of financial position of PMG is set out below. The strengthening of the company's balance sheet can be demonstrated by the increase of £2.35m in net assets from £0.57m to £2.92m as at 31 December 2012 and 2013 respectively.

The consolidated income statement is also presented below. The Group has turned an operating loss in 2012 of £0.63m into an operating profit of £0.08m, a turnaround of over £0.72m.

With five new events held in the first half of 2013 the results for the 6 months ended 30 June 2013 PMG were outstanding. Indeed, PMG's issued interim results showed a profit on ordinary activities before taxation of £0.66m (2012: profit of £0.88). The second half of the year was significantly less productive. The inaugural Sky Lake Vietnam Masters golf tournament which was scheduled to be held in September, 2013 was postponed as was a K POP concert which was due to be held in December. As a result the Groups' revenue was significantly lower than had been planned and the Group incurred a loss before taxation on ordinary activities in the second half of the year.

Furthermore, there have been a number of "one off" write offs, totalling £0.18m in aggregate including £70,000 in relation to the golf event held previously in Kazakhstan. As a result the Company showed a loss before taxation in 2013 of £0.18m (2012: loss before taxation of £0.83m).

This directly impacts the operating profit; pre write-offs the operating profit was £0.26m.

The Directors consider that the following information in the Operating Review will be the best guide for shareholders to be able to assess the Company's progress and performance during the year.

OPERATING REVIEW

During 2013 PMG has made progress and successfully promoted a series of events.

Sport

- Staged a 6th Ballantine's Championship, the last in this form. From 2014 the renamed Championship will be held annually in Singapore. The first of which took place between 1st to 4th May 2014.

- Launched two new golf events in Singapore, namely the Prudential Causeway Trophy and Premier League Golf, a celebrity event involving a number of recent and past professional footballers presented by Marina Bay Sands, one of the leading business, leisure and entertainment destinations.

Entertainment

- Created AIA K-Pop, to promote K-Pop concerts with AIA, which is the largest independent publicly listed pan-Asian life insurance group. The inaugural K-Pop concert was staged in Hong Kong and the second, took place in Kuala Lumpar, Malaysia.

- In October, PMG co-promoted Justin Bieber's first ever concert in South Korea with AIA as the title sponsor for this event.

- Created the Blue & White Festival, to help promote the region of PyeongChang, in the run-up to the Winter Olympics to be held in February, 2018. The second festival is due to take place in December 2014.

Media

- Entered into a Joint Venture agreement with Pico Global Services, one of the leading event companies in Asia, to form Pico TV, a media company specialising in creating digital platforms for events and exhibitions.

FORWARD LOOKING STATEMENT

PMG recently moved the Championship despite positive sponsor negotiations in Korea when it became apparent that PMG would not be able to finalise a title sponsor agreement prior to the event dates. As such, with the support of the European Tour, the event was moved to Singapore where PMG was able to secure an advantageous host club agreement and a family of secondary sponsors in only a three week period.

This change has potentially positive implications for the company in the future, with PMG able to continue its existing title sponsor discussions for the Championship to return to Korea from 2015 onwards, and for a new European Tour and Asian Tour co-sanctioned event in Singapore now targeted for 2015 as well.

Working with Live Nation, PMG created a new festival in Korea, AIA Real Life: NOW Festival ("The Festival"), selling the title sponsorship to AIA and reaching additional agreements with AIA and Live Nation to act as their sponsorship consultants. The Festival headline artists are Lady Gaga, and The YG Family including Psy, 2NE1, BigBang and Winner.

PMG, like many other companies operating in Korea, has had to come to terms with the effects of the Seoul ferry tragedy, which if The Championship had not been moved to Singapore, would have led to the cancellation of the tournament. Fortunately all other events in Korea are scheduled to take place in Q3 and Q4 of 2014 and as such are largely unaffected.

PMG is in negotiation with five different companies in relation to the title sponsorship of both Championships in Korea and Singapore. PMG has the opportunity to promote two major golf championships and significant opportunities in the field of music for the second half of 2014 and 2015.

RISK AND UNCERTAINTIES

Revenue Risk

PMG derives the majority of revenues from events and business in Asia, with both events promotion and sponsorship sales in the region. Sponsorship sales rely on international brands seeking to expand their presence in the Asian markets. A downturn in Asian sponsorship could negatively impact PMG results, however PMG is actively working to mitigate this risk through the development of long-term sponsorship contracts.

Cost Risk

A considerable portion of PMG's cost of sales is derived from business in Asia for the delivery of events in the region. Increases in local supplier costs may negatively impact PMG results. PMG works to mitigate this risk by working with internationally recognised suppliers and renegotiates supply contracts on an event by event basis.

Event Cancellation Risk

A large proportion of PMG revenues and costs are derived from the staging of international golf events in the Asia region. To mitigate the impact of event cancellation, PMG insures against this risk.

New Product Risks

PMG carries out market research on new products and expects all new products to generate revenues.

FINANCIAL INSTRUMENTS

Although PMG is based in the UK, a considerable portion of revenue and costs are denominated in US dollars, Euros and Korean Won. As a result, the Group's consolidated financial statements (presented in Sterling) can be affected by adverse currency movements. The Group's financial risk management objective is to minimise the exposure to such foreign currency risks. PMG's policy is to match US dollar, Euro and Korean Won revenue and costs as closely as is practicable.

The Group is exposed to interest rate risk from movements in the bank base rate, as the rate at which medium term loans charge interest is 4% above base.

The Group is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures. The Group's customers are predominantly comprised of large multi-national luxury brands. The sponsorship & consulting revenues are secured by contracts for the provision of services. Title sponsors pay contracted stage payments in regular intervals throughout the year. Secondary sponsors pay contracted sponsorship fees usually 60 days prior to the event. The Group aims to ensure that the majority of sponsorship is paid prior to the provision of the service or event.

The Group and Company's surplus liquid resources were maintained on short-term interest bearing deposits. The Group plans to continue to meet operating and other commitments as they fall due. Liquidity risk is managed through cash flow forecasts and regular planning.

GOING CONCERN

The directors have prepared trading and cash flow forecasts for the group for the period to 31 December 2015. The forecasts incorporate trading assumptions, including increased sponsorship from existing tournaments, new sponsorship revenues, and revenues from new products. The forecasts show that the group has sufficient cash to meet liabilities in the long term. 

INTERNAL CONTROLS AND RISK MANAGEMENT

The directors are responsible for the Group's system of internal financial control. Although no system of internal financial control can provide absolute assurance against material mis-statement or loss, the Group's system is designed to bring reasonable assurance that problems are identified on a timely basis and dealt with appropriately.

The Board reviews capital investment, additional borrowing facilities, guarantees and insurance arrangements.

CORPORATE GOVERNANCE

Companies whose shares are traded on AIM are not required to make annual statements to shareholders regarding compliance with the UK Corporate Governance Code. However the company is committed to high standards of corporate governance. PMG has appointed a new non-executive director Timothy Sturm, who will now head the Audit Committee, while Ranjit Murugason remains as an independent non-executive director.

ROLE OF THE BOARD

The Board's role is to agree PMG's long-term direction and strategy and monitor achievement of its objectives. The board aims to meet six times a year for these purposes and hold additional meetings where necessary. The Board receives reports on all significant strategic and operational matters.

SHAREHOLDERS

The Board seeks to protect shareholders interests by following where appropriate the guidelines in the UK Corporate Governance Code. The annual general meeting provides the Board with an opportunity to meet informally and communicate with investors.

This strategic report was approved by the Board of Directors on 18 June 2014 and signed on its behalf.

David Ciclitira

(Chairman)

18th June 2014

CONSOLIDATED INCOME STATEMENT for the year ended 31 December 2013
		2013	2012
	Note	£'000	£'000
Continuing operations
Revenue	4	7,817	6,264
Cost of sales	5	(5,660)	(4,847)
Gross profit		2,157	1,417
Administration expenses
Foreign exchange		96	(28)
Depreciation and amortisation of non financial assets		(181)	(223)
Other administrative expenses		(1,989)	(1,800)
Total admin expenses		(2,074)	(2,051)
Operating profit/(loss)	6	83	(634)
Finance costs	9	(188)	(84)
Share of post acquisition loss of Joint Venture		(81)	(114)
Loss before tax	4	(186)	(832)
Tax expense	7	0	0
Loss for the year		(186)	(832)
Attributable to:
Non-controlling interests		0	(198)
Equity holders of the parent		(186)	(634)
		(186)	(832)
Earnings Loss per share			(Restated)
-basic		(6.2p)	(21.1p)
-diluted		(6.2p)	(21.1p)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2013

	2013	2012
	£'000	£'000
Loss for the year	(186)	(832)
Items that will be subsequently reclassified to profit and loss
Exchange difference on translation of foreign operations	60	-
Total comprehensive income (expense) for the year	(126)	(83 )
Total comprehensive income (expense) attributable to:
Equity holders of the parent	(126)	(634)
Non - controlling interest	-	(198)
	(126)	(832)

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013

		Group
		2013	2012
		£'000	£'000
Non current assets
Property, plant and equipment		3	7
Intangible assets - Tournament rights		1,730	1,866
Intangible assets - Development costs		2,923	2,960
Investment in Joint Venture		-	-
Goodwill		200	200
Investments		56	2
Total non current assets		4,912	5,035
Current assets
Inventory		8	13
Trade and other receivables		2,329	2,519
Cash and cash equivalents		24	68
Total current assets		2,361	2,600
Current liabilities
Financial liabilities - Borrowings		162	406
Deferred income		-	2,281
Trade and other payables		3,097	3,049
Total current liabilities		3,259	5,736
Net current liabilities		(898)	(3,136)
Non current liabilities
Financial liabilities - Borrowings		379	616
Deferred tax		708	708
		1,087	1,324
Net asset/(liabilities)		2,927	575
Equity
Share capital		4,612	3,527
Share premium		8,741	7,288
Other reserves		557	557
Capital redemption reserve		5,034	5,034
Foreign exchange reserve		13	13
Retained earnings		(16,030)	(15,844)
Equity attributable to equity holders of the parent		2,927	575
Non-controlling interests		-	-
		2,927	575

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2013

	Ordinary Share Capital	Share Premium	Other Reserves	Capital Redemption	Forex Reserve	Retained Earnings	Subtotal	Non controlling Interests	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Group
As at 31 December 2012	3,527	7,288	557	5,034	13	(15,844)	575	-	575
Loss for the year	-	-	-	-	-	(186)	(186)	-	(186)
Foreign exchange	-	-	-	-	-	-	-	-	-
Total comprehensive income	-	-	-	-	-	(186)	(186)	-	(186)
Issued share capital	1,085	1,779	-	-	-	-	2,864	-	2,864
Share issue costs	0	(326)	-	-	-	-	(326)	-	(326)
At 31 December 2013	4,612	8,741	557	5,034	13	(16,030)	2,927	-	2,927

	Ordinary Share Capital	Share Premium	Other Reserves	Capital Redemption	Forex Reserve	Retained Earnings	Subtotal	Non controlling Interests	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Group
As at 31 December 2011	3463	6653	557	5,034	13	(15,210)	510	(134)	376
Loss for the year	-	-	-	-	-	(634)	(634)	(198)	(832)
Foreign exchange	-	-	-	-	-	-	-	-	-
Total comprehensive income	-	-	-	-	-	(634)	(634)	(198)	(832)
Issued share capital	64	769	-	-	-	-	833	0	833
Share issue to NCI	-	-	-	-	-	-	-	10	10
NCI in PSM arising on acquisition	-	-	-	-	-	-	-	322	322
Share issue costs	-	(134)	-	-	-	-	(134)	-	(134)
At 31 December 2012	3,527	7,288	557	5,034	13	(15,844)	575	-	575

The Foreign Exchange translation reserve comprises foreign exchange differences arising from the translation of the financial statements of subsidiaries that do not have a sterling functional currency.

The Capital Redemption reserve comprises amounts transferred from share capital on redemption of issued shares.

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2013

	Group
	2013	2012
	£'000	£'000
Cash flows from operating activity
Operating profit/(loss)	83	(634 )
Depreciation	4	3
Amortisation of intangibles-Tournament rights	136	136
Amortisation of intangibles-Development costs	41	84
Share based payments	325	81
Loss on disposal of investment	-	10
(Increase)/decrease in inventory	5	(13 )
(Increase)/decrease in receivables	137	(907 )
Increase/(decrease) in payables	(2,558 )	867
Cash used in operations	(1,827 )	(373 )
Cash flow from investing activities
Development costs	(4 )	(95 )
Acquisition of equipment	-	(9 )
Investments in subsidiaries	(54 )	-
Investments in joint ventures	(28 )	(4 )
Net cash (used in) investing activities	(86 )	(108 )
Cash flow from financing activities
Shares issued to non-controlling interests	-	10
Cash proceeds from issue of new shares	2,538	496
Loans received	-	281
Loans repaid	(445 )	(212 )
Interest paid	(188 )	(84 )
Net cash generated from financing activities	1,905	491
Cash and cash equivalents at beginning of the year	32	22
Net (decrease)/Increase in cash and cash equivalents	(8 )	10
Cash and cash equivalents at end of the year	24	32

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2013

1. Basis of preparation

These financial statements have been prepared on the historical cost basis or the fair value basis where required and in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS as at 31 December 2013.

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts in the financial statements which are disclosed in the report and accounts.

A separate income statement for the parent company has not been presented as permitted by section 408 of the Companies Act 2006.

The directors have prepared trading and cash flow forecasts for the group for the period to 31 December 2015. The forecasts incorporate trading assumptions, including increased sponsorship from existing tournaments, new sponsorship revenues, and revenues from new products. The forecasts show that the group has sufficient cash to meet liabilities in the long term.  The directors believe these forecasts to be realistic, and consequently have prepared the financial statements on the going concern basis, which assumes that the group will continue in operational existence for the foreseeable future.

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December 2012 and 2013 but is derived from the accounts. Statutory accounts for 2012 have been delivered to the Registrar of Companies and those for 2013 will be delivered in due course, their audit reports were unqualified and did not contain statements under the Companies Act 2006 section 498.

2. Segment Reporting

Operating Segments

The group now operates under three segments, Sports, Entertainment and Media.

Parallel Sports

Parallel Sports operates professional golf tournaments around the world sanctioned by The European Tour, The Asian Tour and The Korean LPGA with a focus in Asia.

Parallel Media

The media segment has a strong focus on smart media using the technology developed by PSM (developed apps include the Hong Kong Eye ipad and iphone app, available through the appstore) allowing event organisers to provide an additional viewing dimension to users.

Parallel Entertainment

The entertainment division has been developed throughout 2013 and currently has 2 main focuses. The Blue and White Festival held in PyeongChang (the home of the 2018 Winter Olympics) and building on the K-Pop phenomenon with blue chip brands such as AIA through the sponsorship of k-pop concerts across Asia. 

Segment results for the year

	Sports		Entertainment		Media		Consolidated
	£'000		£'000		£'000		£'000
Operating segments	2013	2012	2013	2012	2013	2012	2013	2012
Revenue	6,487	5,902	1,210	232	120	130	7,817	6,264
Joint ventures	7	-	(28)	(115)	(60)	-	(81)	(115)
Segment result	1,893	1,120	123	33	60	130	2,076	1,283
Unallocated corporate expenses	-	-	-	-	-	-	(2,074)	(2,031)
Operating profit/(loss)	-	-	-	-	-	-	2	(748)
Finance costs	-	-	-	-	-	-	(188)	(84)
Loss for the year	-	-	-	-	-	-	(186)	(832)

Revenue by major customer

	Sports		Entertainment		Media		Consolidated
	£'000		£'000		£'000		£'000
Operating Segments	2013	2012	2013	2012	2013	2012	2013	2012
Client 1	4,131	4,324	-	-	-	-	4,131	4,324
Other Clients	2,356	1,578	1,210	232	120	130	3,686	1,940
Total by client and segment	6,487	5,902	1,210	232	120	130	7,817	6,264

 Geographical analysis

	Revenue		Net Current Assets
	£'000		£'000
Operating segments	2013	2012	2013	2012
South Korea	5,245	5,749	3,437	3,361
Hong Kong	758	-	1,220	1,320
Singapore	1,053	232	57	6
Europe	282	120	-	-
UK	27	163	198	348
Malaysia	452	-	-	-
Total by geography	7,817	6,264	4,912	5,035

Segment assets and liabilities

	Sports		Entertainment		Media		Consolidated
	£'000		£'000		£'000		£'000
	2013	2012	2013	2012	2013	2012	2013	2012
Segment assets	2,946	3,178	253	933	3,269	3,145	6,468	7,256
Unallocated corporate assets	-	-	-	-	-	-	805	379
Consolidated total assets	-	-	-	-	-	-	7,273	7,635
Segment liabilities	(1,890)	(3.093)	-	(859)	(793)	(746)	(2,683)	(4,698)
Unallocated corporate liabilities	-	-	-	-	-	-	(1,663)	(2,362)
Consolidated total liabilities	-	-	-	-	-	-	(4,346)	(7,060)
Net assets	-	-	-	-	-	-	2,927	575

Other segment information for the year

	Sports		Entertainment		Media		Consolidated
	£'000		£'000		£'000		£'000
	2013	2012	2013	2012	2013	2012	2013	2012
Depreciation of tangible assets	(3)	(3)	-	-	-	-	(4)	(3)
Capital expenditure on intangible assets	-	-	-	-	4	(95)	4	(95)
Amortisation of intangible assets	(136)	(136)	-	(84)	(41)	-	(177)	(220)

3.             Cost of sales

The Group's Cost of Sales comprises:

	2013	2012
	£'000	£'000
Prize purse and sanction fees	1,913	2,071
Commissions payable	80	51
Direct delivery costs	3,667	2,660
Other	-	65
Cost of Sales	5,660	4,847

4.           Operating loss on ordinary activities before tax

	2013	2012
	£'000	£'000
This is stated after charging:
Depreciation	4	3
Amortisation	177	220
Operating lease rentals - land & buildings	25	27
Loss/(gain) on foreign exchange	(96)	28
Share-based payment transactions	325	173

5.           Auditor's remuneration

		2013	2012
	2003                                                                             2003	£'000	£'000
Fees payable to the auditor (Grant Thornton UK LLP) for the audit of the annual accounts of the group, the company and the group subsidiaries 2013.		41	-
Fees paid to the auditor (BDO) for the audit of the annual accounts of the group, the company and the group subsidiaries relating to 2012.		57	51
Services relating to taxation		-	8
		98	59

6.             Finance Costs

		2013	2012
		£'000	£'000
On bank loans		43	34
On loan guarantee from related parties		45	50
On conversion of debt to equity		100	-
Finance costs		188	84

7.             Tax         

	Year ended 31 December 2013	Year ended 31 December 2012
	£'000	£'000
UK Corporation tax in respect of current year:	-	-
Current taxation	-	-
Total tax charge for the year	-	-
Loss on ordinary activities before tax	(186)	(832)
Loss on ordinary activities at the standard rate of corporation tax of 23.25% (2012 - 24.5%)	-	(204)
Effect of:
Revenue expenditure capitalised	4	23
Items not deductible for tax purposes	-	39
Tax Losses utilised in year - not recognised through  deferred	-	-
Tax losses carried forward - deferred tax not recognised	(4)	(54)
Total tax charge for the year	-	-

8.             Copies of report and accounts

The audited annual report and accounts for the year ended 31 December 2013 are available to be downloaded from the Company's website: www.parallelmediagroup.com

 

END

 

 

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