Half-yearly Report

Half-yearly Report

Media Corporation PLC

11 May 2011

Media Corporation Plc

("Media Corp" or the "Group")

Interim results for the six months ended 31 March 2011

The Board of Media Corp, a leading advertising network and gaming operator, is pleased to announce its interim results for the period ended 31 March 2011.

Financial Highlights

  • Revenues of £13.3 million (2010: £9.9 million*)
  • Gross profit of £2.6 million (2010: £2.6 million*)
  • Loss before tax of £437,000 (2010: loss £241,000*)
  • Operating Profit of £80,000 in March 2011 as Group performance continues to improve
  • Cash of £1.5 million (March 2010: £2.3 million) enhanced by a further £1.5 million in April from the Sale of Gambling.com.
  • Sale of loss making publishing assets planned to generate further cash for the Group

*Note- The comparative results for March 2010 have been restated as described in Note 1 to the Financial Statements

Trading Highlights

  • New £1 million contract with Express Newspapers signed by wholly owned subsidiary, Eyeconomy Limited
  • Purple Lounge achieves milestone of 100,000 registered customers

Justin Drummond, CEO of Media Corp, commented:

“The Group has continued to make progress during the first half of the year having grown revenues significantly once more. The sale of Gambling.com was completed in April 2011 for £1.5 million doubling the Group’s cash balances”

“It is anticipated that Group cash balances will be further enhanced in the coming months through the combination of an improving trading performance and further cash receipts from the sale of underperforming publishing assets”

“The Group is in a very strong financial position and will be pursuing earnings enhancing acquisitions in the coming months”

--ENDS--

Contacts:

Media Corporation Plc   Tel: +44 20 7618 9000
Justin Drummond, CEO
Nilesh Jagatia, Finance Director
 
Northland Capital Partners Limited Tel: + 44 20 7796 8800
Luke Cairns / Rod Venables (Nomad)
Katie Shelton (Broking)
 
XCAP Securities (Joint Broker) Tel: + 44 20 7101 7070
John Grant / Karen Kelly
 
 
Bishopsgate Communications Tel: + 44 20 7562 3350
DuncanMcCormick/Deepali Schneider/Natalie Quinn
 

Consolidated Unaudited Income Statement

for the six months ended 31 March 2011

    Restated  
Six Months ended Six Months ended Year Ended
31st March 2011 31st March 2010 30th September 2010
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Total revenue 13,329 9,936 24,251
Cost of sales (10,750) (7,380) (19,219)
Gross profit 2,579 2,556 5,032
 
Administrative expenses (3,017) (2,798) (6,436)
             
Analysis of administrative expenses:
Distribution costs (1,492) (1,512) (3,118)
Administrative expenses (1,525) (1,286) (3,318)
    (3,017)   (2,798)   (6,436)
 
Operating loss (438) (242) (1,404)
 
Finance income 1 1 6
 
Loss before income tax (437) (241) (1,398)
 
Income tax expense - - -
 
Loss from continuing activities attributable to equity holder of the company. (437) (241) (1,398)
 
 
Loss per share attributable to equity holders of the company Pence per share Pence per share Pence per share
Basic (0.14p) (0.09p) (0.43p)
Diluted (0.14p) (0.08p) (0.43p)
 

Consolidated unaudited statement of recognised income and expense

for the six months ended 31 March 2011

    Restated  
Six Months ended Six Months ended Year Ended
31st March 2011 31st March 2010 30th September 2010
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
 
Currency translation differences 150 77 (39)
Total income/(expense) recognised directly in equity 150 77 (39)
Loss for the period (437) (241) (1,398)
Total recognised (expense)/income for the year (287) (164) (1,437)
 

Consolidated unaudited balance sheet

as at 31 March 2011

    Restated  
Six Months ended Six Months ended Year Ended
31st March 2011 31st March 2010 2010
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Assets
Non current assets
Property, plant and equipment 100 342 44
Intangibles 6,153 4,768 6,073
Investments 188 - 188
6,441 5,110 6,305
Current assets
Trade and other receivables 1,999 734 670
Cash at bank and in hand 1,437 2,302 2,153
3,436 3,036 2,823
Total assets 9,877 8,146 9,128
 
Liabilities
Current liabilities
Trade and other payables (4,476) (3,738) (3,440)
Current tax liabilities - - -
(4,476) (3,738) (3,440)
Total liabilities (4,476) (3,738) (3,440)
Total assets less liabilities 5,401 4,408 5,688
Equity
Share capital 5,088 4,798 5,088
Share premium 13,118 12,943 13,118
Other Reserves 1,422 1,422 1,422
Ordinary shares in treasury - (372) -
Translation reserves 647 310 497
Retained Earnings (14,874) (14,693) (14,437)
Total shareholders equity 5,401 4,408 5,688
 

Consolidated unaudited statement of changes in shareholders’ equity

for the six months ended 31 March 2011

Group   Share capital   Share premium   Currency translation reserve   Other reserves   Retained earnings   Total
£000 £000 £000 £000 £000 £000
           
At 30 September 2008 4,773 12,927 (305) 1,422 (10,924) 7,893
Loss for the period - - - - (2,645) (2,645)
Share based payments - - - - 27 27
Currency translation differences - - 841 - - 841
Purchase of own shares - - - - (222) (222)
Issue of shares 25 16 - - - 41
At 30 September 2009 4,798 12,943 536 1,422 (13,764) 5,935
Loss for the period - - - - (1,398) (1,398)
Share based payments - - - - 6 6
Currency translation differences - - (39) - - (39)
Sale of own shares - 154 - - 719 873
Issue of shares 290 21 - - - 311
At 30 September 2010 5,088 13,118 497 1,422 (14,437) 5,688
Loss for the period - - - - (437) (437)
Currency translation differences
- 150 - - 150
Issue of shares - - - - - -
At 31 March 2011 5,088 13,118 647 1,422 (14,874) 5,401
 

Consolidated unaudited cash flow statements

for the six months ended 31 March 2011

    Restated  
Six Months ended Six Months ended Year Ended
31st March 2011 31st March 2010 2010
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Operating activities
Operating (loss)/profit (438) (242) (1,404)
Depreciation and amortisation 185 (179) 201
Impairment of intangibles - -
Decrease/(increase) in receivables (1,330) (61) 5
Increase/(decrease) in payables 1,038 1,378 2,080
Other cash movements 26 58
Taxes Paid - 15
Share based payments - - 6
Net cash (used in)/generated by operating activities (519) 896 961
 
Investing activities
Interest received 1 1 6
Purchase of property, plant and equipment (56) (214) (27)
Purchase of intangibles (80) (421) (171)
Acquisition of subsidiary undertaking - (2,017)
Acquisition of subsidiary undertaking (net cash acquired) - - 827
- - -
Net cash (used in)/generated by investing activities (135) (634) (1,382)
 
Financing activities
Issue of share capital - - 278
Purchase / Sale of treasury shares - 420 719
Net cash used in financing activities - 420 997
 
Net (decrease)/increase in cash and cash equivalents (654) 682 576
Cash and cash equivalents at beginning of period 2,153 1,697 1,697
Effects on exchange movements (62) (77) (120)
Cash and cash equivalents at end of period 1,437 2,302 2,153

Note: In addition to the above cash balance, the Group sold Gambling.com on 27 April 2011 and the sales proceeds were $2.5m (£1.5m).

Notes to the accounts

1. Basis of preparation

These consolidated interim financial statements of the Company and its subsidiaries ("the Group") for the six months ended 31 March 2011 have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs). The same accounting policies, presentation and methods of computation are followed in the consolidated set of financial statements as applied in the Group's latest audited financial statements for the year ended 30 September 2010.

These consolidated interim financial statements do not constitute Statutory Accounts under the Companies Act 2006, have not been audited, and do not include all of the information required for full annual financial statements. They should be read in conjunction with the Group's consolidated annual financial statements for the year ended 30 September 2010. The auditors' opinion on those Statutory Accounts was unqualified and did not draw attention to any other matters required by the Companies Act 2006. The Statutory Accounts for the year ended 30 September 2010 have been delivered to the Registrar of Companies.

The comparative figures presented are for the six months ended 31 March 2010 and the year ended 30 September 2010

Revenue

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes. Sales of goods are recognised when goods are delivered and title has passed. Sales of services are recognised when the service has been completed and invoiced to the customer.

Goodwill

The directors undertake an impairment review of goodwill at the end of each annual reporting period.

Prior Year Adjustment

The comparative figures for March 2010 have been restated to reflect the correct income recognition policy of the group and as a result, the revenues for March 2010 have reduced by £398,000, the profit for the period of £157,000 has been restated as a loss of £241,000, and net assets have reduced by £398,000. These changes which relate to March 2010 have no impact on the audited accounts for the year ended 30 September.

2. Segmental analyses

    Restated  
The group's primary segment information is based on its operating divisions: Six Months ended Six Months ended Year Ended
31st March 2011 31st March 2010 2,010
£'000 £'000 £'000
Turnover analysis by business segment:
Advertising Network 3,182 1,922 2,856
Internet Gaming 10,006 7,714 21,265
Internet Publishing 142 300 130
Total continuing operations 13,329 9,936 24,251
 
Trading profit
Advertising Network 109 203 (40)
Internet Gaming 12 (8) (35)
Internet Publishing (559) (437) (1,329)
     
Operating (loss)/profit (438) (242) (1,404)
 
Net finance income 1 1 6
 
Loss before income tax expense (437) (241) (1,398)
 
Income tax expense - - -
     
Loss from continuing activities (437) (241) (1,398)
 
 
Balance Sheet
Assets
Advertising Network 1,011 937 695
Internet Gaming 2,286 1,230 2,938
Internet Publishing 6,580 5,979 5495
9,877 8,146 9,128
Liabilities
Advertising Network (871) (676) (478)
Internet Gaming (3,344) (2,102) (2,680)
Internet Publishing (261) (960) (282)
(4,476) (3,738) (3,440)
 

3. Taxation

There is no provision for UK Corporation tax due to tax losses.

Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. Recognition of the deferred tax asset is limited to the extent that the company anticipates making sufficient taxable profits in the future to absorb the reversal of the underlying timing differences. The deferred tax balance has not been discounted. The Group has a deferred tax asset of £Nil (2010: £Nil).

4. Earnings / (loss) per share

   

Restated

 
Six Months ended Six Months ended Year Ended
31March 2011 31March 2010 30 September 2010
(unaudited) (unaudited) (audited)
£000 £000 £000
Loss for the purpose of basic and diluted earnings per share (437) (241) (1,398)
 
Numbers
Weighted average number of ordinary shares for the purpose of basic earnings per share 323,445,648 278,364,396 323,445,648
Effective of dilutive potential ordinary shares:
Share warrants 3,900,000 25,084,931 3,900,000
     
Weighted average number of ordinary shares for the purpose of diluted earnings per share 327,345,648 303,449,327 327,345,648
 
Pence Pence Pence
Loss per share – basic (0.14p) (0.09p) (0.43p)
Loss per share – diluted (0.14p) (0.08p) (0.43p)
 

5. Dividends

The Directors do not recommend the payment of a dividend.

6. Copies of interim results

Copies of the interim results are available at the Group´s web site at www.mediacorpplc.com. Copies of the interim results may also be obtained from the Group´s registered office: Media Corporation plc, Ground Floor, 77 Queen Victoria Street, London EC4V 4AY.

Companies

Media Corporation Plc (O.MDC)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today