Final Results and Annual Report
MediaZest plc
("MediaZest", the "Company" or the "Group"; AIM:MDZ)
Final Results for the Year Ended 31 March 2013
CHAIRMAN'S STATEMENT
Introduction
The results for MediaZest plc (the "Group") for the year ended 31 March 2013
incorporate the results of its subsidiary, which is wholly owned.
Results for the Year and Key Performance Indicators
Turnover for the year was £1,850,000 (2012: £2,521,000), cost of sales was
£941,000 (2012: £1,394,000) and the Group made a loss for the year, after
taxation, of £551,000 (2012: £424,000) after finance costs of £138,000 (2012:
£104,000) and having paid administrative expenses of £1,322,000 (2012: £1,447,000).
The basic loss and diluted loss per share was 0.15p (2012: 0.16p). The Group
had cash in hand of £1,000 (2012: £88,000) and a bank overdraft of £92,000
(2012: £nil) at the year end and an invoice discounting facility over the
debtors of Touch Vision of which £108,000 (2012: £84,000) was in use at 31
March 2013. As at 31 March 2013, the Group has a current maximum limit of
£350,000 under the existing invoice discounting facility.
As at 31 March 2013 the Group also had loans from shareholders of £530,000
(2012: £530,000).
Business overview
The Group operates two trading divisions through its wholly owned subsidiary
Touch Vision Ltd : Touch Vision (TV) and MediaZest Ventures (MV). TV trades as
an Audio Visual supply and installation company whilst MV operates as a
`digital out of home' creative agency.
The results for the year ended 31 March 2013 demonstrate that the Group endured
a disappointing year with turnover falling short of the previous year's level
and the loss for the year increasing accordingly. Much of this decrease in
turnover was as a consequence of the rescheduling of a large project that was
anticipated to generate revenues of in excess of £400,000 in the financial year
ended 31 March 2013, to the subsequent financial year (ending 31 March 2014).
In addition, HMV, a long standing and valued client of the Company for many
years went into administration in January 2013. Both of these events have been
announced previously and referred to in the Group's interim report released in
December 2012 and a subsequent trading update in June 2013.
On a more positive note, the Company also announced in April 2013 that it had
won a significant global contract that it expected to deliver revenues in
excess of £1 million over the subsequent 18 months. The Board believes that
this contract offers significant future business opportunities for the Company.
The Company raised £179,000 before expenses during the year and £358,000 before
expenses subsequent to the year end from both existing and new shareholders,
the proceeds of which were applied towards both providing additional working
capital and the financing to expand the sales team/marketing assets to take
advantage of the opportunities before the Company.
The Board's strategy, consistent with previous announcements, has been one of
increasing turnover by concentrating on and increasing the higher margin
business achievable through MV whilst both maintaining and expanding revenue
through the Education Framework agreements that TV became a participant of in
November 2010.
MediaZest Ventures Division
MediaZest Ventures continued to provide the Group with growth potential by
providing the highest profile and most profitable opportunities. A considerable
amount of effort was placed upon expanding the product and service base with an
increasing emphasis on providing clients with content work to complement the
division's offerings.
Touch Vision Division
The Touch Vision division continued to generate the bulk of its business from
the educational market during the year. In addition, amongst its retail
customers, several high street names continued to be valued clients. However,
further emphasis was placed on opportunities in the Corporate market and this
is a sector that will receive ongoing attention as the Board believes that
clients continue to search for better value solutions and reliable systems
providers.
Outlook
The Group has continued to add to its client base of blue chip retailers and
brands and has an enviable record of client retention. In view of this and with
the objective of expanding the Group's business further the Company has taken
on new business premises in Woking, moving from its current location in
Farnham. It has also set up a demonstration showroom in Shoreditch in close
proximity to the City of London.
There has been a successful start to the financial year ending 31 March 2014.
The Group won its single largest piece of business in April 2013 and this along
with several other substantial contracts have given the Company a strong
business base for this financial year. It has already booked revenue within the
first five months of the current financial year significantly in excess of the
corresponding period in the financial year ending 31 March 2013.
Lance O'Neill
Chairman
ENQUIRIES
Geoff Robertson 020 7724 5680
Chief Executive Officer
MediaZest plc
Gavin Burnell/Edward Hutton 020 7796 8800
Nominated Adviser
Northland Capital Partners Ltd
Claire Noyce/William Lynne 020 7947 4350 / 4361
Broker
Hybridan LLP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2013
Note 2013 2012
£'000 £'000
Continuing operations
Revenue 1,850 2,521
Cost of sales (941) (1,394)
Gross profit 909 1,127
Administrative expenses (1,322) (1,447)
Operating loss 2 (413) (320)
Finance costs (138) (104)
Loss on ordinary activities before taxation (551) (424)
Tax on loss on ordinary activities - -
Loss for the year and total comprehensive loss for (551) (424)
the year attributable to the owners of the parent
Loss per ordinary 0.1p share
Basic 3 (0.15p) (0.16p)
Diluted 3 (0.15p) (0.16p)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2013
(Company No. 05151799)
2013 2012
£'000 £'000
Non-current assets
Goodwill 2,772 2,772
Property, plant and machinery 63 97
Total non-current assets 2,835 2,869
Current assets
Inventories 123 106
Trade and other receivables 515 270
Cash and cash equivalents 1 88
Total current assets 639 464
Current liabilities
Trade and other payables (1,155) (789)
Financial liabilities (707) (547)
Total current liabilities (1,862) (1,336)
Net current liabilities (1,223) (872)
Non-current liabilities
Financial liabilities - (8)
Total non-current liabilities - (8)
Net assets 1,612 1,989
Equity
Share capital 2,736 2,587
Share premium account 4,029 4,004
Share options reserve 7 7
Retained earnings (5,160) (4,609)
Total equity 1,612 1,989
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2013
Share
Share Share Options Retained Total
Capital Premium Reserve Earnings Equity
£'000 £'000 £'000 £'000 £'000
Balance at 1 April 2011 2,507 3,929 7 (4,185) 2,258
Loss for the year - - - (424) (424)
Total comprehensive income for the - - - (424) (424)
year
Issue of share capital 80 80 - - 160
Share issue costs - (5) - - (5)
Balance at 31 March 2012 2,587 4,004 7 (4,609) 1,989
Loss for the year - - - (551) (551)
Total comprehensive income for the - - - (551) (551)
year
Issue of share capital 149 30 - - 179
Share issue costs - (5) - - (5)
Balance at 31 March 2013 2,736 4,029 7 (5,160) 1,612
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2013
Note 2013 2012
£'000 £'000
Net cash used in operating activities (385) (141)
Cash flows used in investing activities
Purchase of plant and machinery (16) (62)
Disposal of plant and machinery 3 -
Purchase of leasehold improvements - (4)
Net cash used in investing activities (13) (66)
Cash flow from financing activities
Repayment of bank borrowings (17) (16)
Other loans 77 50
Shareholder repayments - (25)
Interest paid (39) (104)
Proceeds of share issue 179 160
Share issue costs (5) (5)
Net cash generated from financing activities 195 60
Net decrease in cash and cash equivalents (203) (147)
Cash and cash equivalents at beginning of year 4 151
Cash and cash equivalents at end of the year 4 (199) 4
NOTES TO THE FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
The financial information set out above does not constitute the Company's
statutory financial statements for the years ended 31 March 2012 and 31 March
2013 within the meaning of section 434 of the Companies Act 2006. Statutory
financial statements for the year ended 31 March 2012 have been delivered to
the Registrar of Companies and those for the year ended 31 March 2013 will be
delivered in due course.
The auditors have reported on the financial statements for the year ended 31
March 2012; their report was unqualified and did not include references to any
matters to which the auditors drew attention by way of emphasis without
qualifying their report, and did not contain a statement under section 498(2)
or (3) of the Companies Act 2006.
The auditors have reported on the statutory financial statements for the year
ended 31 March 2013; their report was unqualified, and did not include
references to any matters to which the auditors drew attention by way of
emphasis without qualifying their report, and did not contain a statement under
section 498 (2) or (3) of the Companies Act 2006.
The statutory financial statements for the year ended 31 March 2013, from which
the financial information included in this preliminary announcement is
extracted, have been prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union and as regards the
parent company financial statements, as applied in accordance with the
provisions of the Companies Act 2006.
Going concern
The directors have carefully considered the going concern assumption on the
basis of financial projections and the factors outlined below.
The directors have considered financial projections based upon known future
invoicing, existing contracts, pipeline of new business and the increasing
number of opportunities it is currently working on, particularly in the retail
sector. Subsequent to the year end the Company raised £358,000 before expenses
as detailed in the Chairman's Statement. The Company also announced in April
2013 that it had won a significant global contract that it expected to deliver
revenues in excess of £1 million over the subsequent 18 months. The Board
believes that this contract offers significant future business opportunities
for the Company.
In addition, these forecasts have been considered in light of the ongoing
economic difficulties in the UK and global economy, previous experience of the
markets in which the company operates and the seasonal nature of those markets,
as well as the likely impact of ongoing reductions to public sector spending.
These forecasts indicate that the company will generate sufficient cash
resources to meet its liabilities as they fall due over the 12 month period
from the date of the approval of the financial statements.
The directors have obtained letters of support from shareholders who have
provided loans to the Group totalling £530,000 at 31 March 2013 (2012: £
530,000) stating that they will not call for repayment of the loans within the
12 months from the date of approval of these financial statements or, if
earlier, until the Group has sufficient funds to do so.
As a result the directors consider that it is appropriate to draw up the
financial statements on a going concern basis. Accordingly, no adjustments have
been made to reflect any write downs or provisions that would be necessary
should the Group prove not to be a going concern, including further provisions
for impairment to goodwill and investments in Group companies.
2. OPERATING LOSS
2013 2012
£'000 £'000
This is stated after charging/(crediting):
Depreciation of owned assets 47 24
Pension contributions 5 5
Operating lease rentals paid:
- land and buildings 75 90
- other 17 12
Rentals receivable under operating leases - (2)
3. LOSS PER ORDINARY SHARE
2013 2012
£'000 £'000
Losses
Losses for the purposes of basic and diluted earnings 551 424
per share being net loss attributable to equity
shareholders
2013 2012
Number of shares Number Number
Weighted average number of ordinary shares for the 367,675,618 257,898,551
purposes of basic earnings per share
Number of dilutive shares under option or warrant - -
Weighted average number of ordinary shares for the 367,675,618 257,898,551
purposes of dilutive loss per share
Basic loss per share is calculated by dividing the loss attributed to ordinary
shareholders of £551,000 (2012: £424,000) by the weighted average number of
shares during the year of 367,675,618 (2012: 257,898,551).
The diluted loss per share is identical to that used for basic loss per share
as the exercise of warrants and options would have the effect of reducing the
loss per share and therefore is not dilutive.
Earnings per share has been re-stated for the comparative year to correct a
typographical error in the 2012 financial statements.
4. CASH AND CASH EQUIVALENTS
The Group The Group The Company The Company
2013 2012 2013 2012
£'000 £'000 £'000 £'000
Cash held at bank 1 88 1 1
Bank overdraft (92) - - -
Invoice discounting facility (108) (84) - -
(199) 4 1 1
5. POSTING OF THE ANNUAL REPORT AND FINANCIAL STATEMENTS
The Report and Financial statements for the year ended 31 March 2013 have been
posted to the shareholders together with a notice convening the Annual General
Meeting for 30 September 2013. The Report and Financial statements are
available on the Company's website: www.mediazest.com
Notes to Editors:
About MediaZest
MediaZest is a creative media agency that specialises in providing innovative
out-of-home marketing solutions to leading retailers, brand owners and
corporations, but also works in the public sector in both the NHS and Education
markets. The Group supplies an integrated service from content creation and
system design to installation, technical support and maintenance. MediaZest was
admitted to the London Stock Exchange's AIM market in February 2005. For more
information, please visit www.mediazest.com.
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