Interim Results

Newsplayer Group PLC 30 July 2003 FOR IMMEDIATE RELEASE 30 July 2003 NEWSPLAYER GROUP PLC INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 APRIL 2003 Newsplayer Group plc ('NPG'), the media company, today announces interim results for the six months ended 30 April 2003. Financial Highlights: â€¢ Turnover of Â£113,505 compared to Â£350,526 for the six months ended 31 October 2002. â€¢ Pre-tax loss of Â£2,426,194 compared to a loss of Â£2,744,292 for the six months ended 31 October 2002. â€¢ Cash reserves of Â£100,252 at 30 April 2003 compared to Â£438,874 at 31 October 2002. Operational Highlights: â€¢ Agreement signed with The Footballers Football Channel to enrich the content within Pure World Cup including the highlights of the 2002 tournament in Japan and South Korea. â€¢ Agreement signed with Cross Media Entertainment to distribute NPG properties in North America. â€¢ Mobile streaming video pilot programme launched with SFR in France. Events subsequent to period under review: â€¢ Agreement signed with EMI to act as a Digital Service Provider in Europe for the provision of downloaded audio tracks. â€¢ 2-year agreement signed with NTL to provide two channels of content to their Broadband platform. â€¢ Referral agreement signed with Global Media Services to provide professional services such as webcasting, encoding, storage, hosting and e-mail marketing. â€¢ A placing of new shares to raise a minimum of Â£700,000 in progress. Commenting on the results, Paul Duffen, Chief Executive Officer, said: 'In addition to the distribution and content agreements we have signed during the period, the first half of the year has seen a focus on increasing efficiency and reducing costs. In February we completed the transfer of all Group technology resources to GMS in New York at an annualised cost saving of over Â£500,000 whilst at the same time securing a scalable solution to distribute our content globally at 'industry best' service levels. As a result of this initiative and other efficiencies we have reduced the fixed cost base of the Group to less than Â£900,000 per annum. We are now in the process of completing a placing of new shares, to raise a minimum of Â£700,000 before expenses to enable us to complete the all-paper acquisition of Global Media Services. As at 29 July 2003 we have commitments in hand for the minimum amount of Â£700,000 and anticipate the fundraising being completed by 1 August 2003.' Enquiries: NPG plc 020 7927 6699 Paul Duffen, CEO Merlin Financial 020 7606 1244 Philip Ranger/Nicola Davidson CHIEF EXECUTIVE STATEMENT OVERVIEW Newsplayer Group plc is a new media company that exploits rights and/or licenses to quality cultural and historical video content and markets them globally to business, educational and consumer audiences using interactive technology. Revenues are generated from the licensing of content to third parties, from subscription and pay-per-view fees paid by consumers, and from shared advertising revenues. NPG is becoming the partner of choice for the digitization and distribution of broadcast content and interactive programme creation. MEDIA CHANNELS AND LICENSED CONTENT Footage.net - A leading stock footage portal which manages the databases of many of the world's leading stock footage libraries, including ABC News, CNN, Action Sports, National Geographic, and many others. Newsplayer.com - ITN/Reuters Archives. A subscription consumer channel offering 1,000 hours of footage from ITN/ Reuters, including material from Paramount, Gaumont, British Empire News, Visnews, French Pathe et al. Features original video footage of some of the most important and notable events of the 20th century. Frost.tv - The Frost Collection. A video-on-demand subscription channel featuring the unparalleled archive of 40 years of Sir David Frost's original interviews with the world's most famous public figures. Strategic partnership to develop commercial applications, both on- and off-line. Screenplayer.com - Passport International Productions. A video-on-demand subscription channel offering the largest collection of Hollywood footage in the world, including more than 650 hours of movie-related documentaries comprised of film trailers, celebrity interviews and profiles of the stars. Video.tv - EMI Catalogue. A video-on-demand subscription channel providing an interactive collection of EMI music videos featuring artists and groups spanning the 20th Century. Advanced negotiations are underway with other major record labels who have expressed an interest in having their material represented on VideoTV. Birdstream.com - RSPB Film Collection. A video-on-demand subscription channel giving access to 100 hours of award-winning wildlife footage in the Film Collection of the Royal Society for the Protection of Birds. Professional programme makers can also license the material through RSPB's website. Pure World Cup.com- A video-on-demand subscription channel providing World Cup highlights from 1958 to 1998. Ucreate.tv - A unique editing tool allowing users to make their own films online using home video material and 1,000 hours of classic archive footage from newsplayer.com. The Alison Mercer Collection- Exclusive licence for 80 hours, or 1400 video clips, of film-related material of cinema's golden age and US-focused archive news and features. Stock Video of Boston- Exclusive licence for 150 hours of classic sports footage from Stock Video of Boston, sourced from Columbia Sports News, Castlefilms and a selection of private collections. FINANCIAL RESULTS The loss for the period was Â£2,426,194 compared to a loss of Â£720,304 for the equivalent period in 2002. No dividend has been paid or is proposed. OUTLOOK The outlook for the Group continues to focus on the strategy outlined in the annual report issued in April 2003. Our partnership with GMS in New York has enabled the Company to strengthen and consolidate our technical resource whilst at the same time providing us with the tools to pursue service-based revenues around the creation and distribution of streaming media assets. The USA is undoubtedly a very important market for the Company's products and services and the combination of our subsidiary company, NPG Inc., and our relationship with GMS provides an ideal platform for us to exploit that opportunity. We have stated that it is our intention to acquire GMS. The process has taken longer than originally anticipated but should be completed in the summer of 2003. In the meantime we continue to work closely as strategic partners and I am confident that the combination of our two businesses with complementary products, skill sets, geographical location and a low cost base will enable the Company to reach monthly profitability by the end of 2003. Paul Duffen Chief Executive UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 APRIL 2003 Consolidated Profit and Loss Account Note Six months ended Six months ended Year ended 30 April 2003 30 April 2002 31 Oct 2002 Â£ Â£ Â£ Turnover 5 113,505 603,738 954,264 Cost of sales (47,553) (171,723) (526,737) Gross profit 65,952 432,015 427,527 Operating expenses before exceptional charges (1,520,349) (1,197,055) (2,953,279) Prepayment write off 6 (682,058) - - Impairment charges 6 (289,807) - (998,699) Total Operating expenses (2,492,214) (1,197,055) (3,951,978) Operating loss (2,426,262) (765,040) (3,524,451) Interest receivable 1,068 44,736 59,855 Interest payable (1,000) - - Loss on ordinary activities before taxation (2,426,194) (720,304) (3,464,596) Taxation - (500) (1,000) Loss on ordinary activities after taxation and (2,426,194) (720,804) (3,465,596) retained profit for the period Loss per ordinary share - basic 3 (3.49p) (1.07p) (5.03p) All operations derive from continuing activities. No statement of total recognised gains and losses has been presented as there are no recognised gains and losses other than the loss for the period. Consolidated Balance Sheet Note At At At 30 April 2003 30 April 2002 31 Oct 2002 Â£ Â£ Â£ Fixed assets: Intangible assets 7 2,071,624 3,218,746 2,727,455 Tangible assets 183,108 238,267 237,370 2,254,732 3,457,013 2,964,825 Current assets: Debtors 8 218,066 2,132,230 1,067,839 Cash at bank and in hand 100,252 1,783,885 438,874 Creditors: amounts falling due within one year 9 (560,055) (499,147) (342,349) Net current (liabilities)/assets (241,737) 3,416,968 1,164,364 Total assets less current liabilities 2,012,995 6,873,981 4,129,189 Creditors: amounts falling due in more than one 9 (160,000) - - year Total Net assets 1,852,995 6,873,981 4,129,189 Capital and Reserves Â£ Â£ Â£ Called up share capital 10 722,688 692,688 692,688 Share premium account 11,827,380 11,707,380 11,707,380 Merger reserve (509,386) (509,386) (509,386) Profit and loss account (10,187,687) (5,016,701) (7,761,493) Shareholders' funds 11 1,852,995 6,873,981 4,129,189 Consolidated Cash Flow Statement Note Six months ended Six months ended Year ended 30 April 2003 30 April 2002 31 Oct 2002 Â£ Â£ Â£ Net cash outflow from operating activities 12 (649,690) (795,366) (1,223,993) Returns on investment and servicing of finance 1,068 45,313 59,855 Taxation paid - - (1,500) Capital expenditure and financial investment - (822,186) (1,893,015) Management of liquid resources - - - Acquisitions and disposals - (476,731) (335,330) Cash outflow before financing (648,622) (2,048,970) (3,393,983) Financing: New unsecured loan 9 160,000 - - Issue of ordinary share capital 10 150,000 34,634 34,636 Decrease in cash (338,622) (2,014,336) (3,359,347) Notes 1. Accounting policies and additional information These interim results for the six month period ended 30 April 2003 do not constitute statutory accounts and have been neither reviewed nor audited by our auditors. The financial information for the year ended 31 October 2002 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified and did not contain a statement under s237(2) or (3) Companies Act 1985. The accounting policies are consistent with those applied in the preparation of the statutory accounts for the year ended 31 October 2002. 2. Going concern The Directors have prepared this financial information on a going concern basis as the forecasts they have prepared indicate that the Group will have sufficient cash resources to satisfy its liabilities as they fall due for a period of at least twelve months from the date of this announcement. These forecasts are subject to a number of uncertainties. Firstly, the forecast contains a significant increase in revenues that are dependent upon the completion of a number of deals that are in the final stages of negotiation. Significant contracts have been signed after the review period, most notably with NTL, and the Directors are confident that they will be successful in securing further deals. Furthermore, the Group has made a claim for more than Â£150,000, after expenses, in tax credits in relation to research and development expenditure. At the date of approval of the accounts, this tax claim had been submitted although the outcome of the claim is still uncertain. In addition, the Group is in the process of raising additional funding that is necessary to fund the operations and expansion of the Group. The Directors have agreed to defer a proportion of their entitlement to further salary payments until this fund raising has been completed and have agreed to accept payment in Newsplayer Group plc shares to conserve further the cash available to the Group. With commitments already secured for the minimum amount required, the Directors are confident that this fundraising will be successful and as a result that the Group will remain a going concern. The financial information does not include any adjustments that would result if the going concern basis of preparation was not appropriate. 3. Loss per share The calculation of loss per share has been based on the loss after taxation for the period of Â£2,426,194 and the weighted average number of ordinary shares in issue during the period of 71,942,393. Diluted EPS is not presented in respect of outstanding share options since none of the options are dilutive. 4. Dividend The directors do not recommend the payment of a dividend for the period. 5. Turnover Turnover comprises subscription income for access to the company's web sites, fees from licensing of media rights and licensing fees for software. 6. Prepayment write off and intangible asset impairment In June 2003 Management performed an impairment review of the intangible assets held by group. As a result of that review it was determined that certain intangible assets should be impaired due to insufficient future expected earnings relating to those assets. Consequently the intellectual property rights were impaired by Â£289,807. In July 2003 a prepayment with Hollinger became non-recoverable due to timing restrictions on the use of the prepayment. As a result the total amount outstanding of Â£682,058 was written off. 7. Intangible fixed assets Goodwill Intellectual Property Total Â£ Â£ Â£ Cost as at 1 November 2002 and at 30 April 233,687 4,176,741 4,410,428 2003 Amortisation as at 1 November 2002 (19,474) (1,663,499) (1,682,973) Charge for the year (14,693) (351,331) (366,024) Impairment - (289,807) (289,807) Amortisation as at 30 April (34,167) (2,304,637) (2,338,804) Net book value as at 30 April 2003 199,520 1,872,104 2,071,624 Net book value as at 31 October 2002 214,213 2,513,242 2,727,455 8. Debtors At At 30th April 2003 31st Oct 2002 Â£ Â£ Trade debtors 61,491 64,866 Prepayments and accrued income 50,813 750,023 Other debtors 105,762 252,950 Total debtors 218,066 1,067,839 9. Creditors At At 30th April 2003 31st Oct 2002 Â£ Â£ Trade creditors 199,284 89,670 Other creditors 33,409 21,491 Accruals and deferred income 327,362 231,188 Creditors falling due within one year 560,055 342,349 Creditors falling due after more than one year (convertible loan) 160,000 - Total creditors 720,055 342,349 10. Changes in share capital There has been a total of 3,000,000 1p ordinary shares issued since 1 November 2002. These shares were issued as a part of the consideration in respect of an agreement with Hollinger Advertising. Â£150,000 cash was received in consideration for these shares. 11. Reconciliation of movement in shareholders' funds Six months ended Six months ended Year ended 30 April 2003 30 April 2002 31 Oct 2002 Â£ Â£ Â£ Loss on ordinary activities after taxation (2,426,194) (720,804) (3,465,596) Issue of ordinary share capital 150,000 1,089,255 1,089,255 Net increase/(reduction) in shareholders' (2,276,194) 368,451 (2,376,341) funds Opening shareholders' funds 4,129,189 6,505,530 6,505,530 Closing shareholders' funds 1,852,995 6,873,981 4,129,189 12. Reconciliation of operating loss to operating cashflows Six months ended Six months ended Year ended 30 April 2003 30 April 2002 31 Oct 2002 Â£ Â£ Â£ Operating loss (2,426,262) (765,040) (3,524,451) Exceptional non-cash charges 971,865 - 998,699 Depreciation 54,262 36,171 82,600 Amortisation 366,024 135,756 376,582 Decrease /(increase) in debtors 167,714 (338,830) 805,891 (Increase)/decrease in creditors 216,707 136,577 30,696 Net cash outflow from operating (649,690) (795,366) (1,223,993) activities This Interim Report was approved by the Directors on 29 July 2003. The report will be sent to all registered shareholders and will be available to members of the public from the Company's registered office at 12 Gough Square, London EC4A 3DW and online from the Company's corporate website at www.npg-plc.com. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Catalyst Media Group (CMX)

Full Archive

UK 100

Latest directors dealings

All directors dealings today