Preliminary Statement of Results to 31 Dec 2010

RNS Number : 9633D

Immedia Group PLC

31 March 2011

 

IMMEDIA GROUP PLC

Preliminary Statement of Results for the FY to 31 December 2010

Immedia Group Plc ("Immedia"), the UK's leading provider of in-store radio, music and video, today announces its preliminary financial results for the year to 31 December 2010.

Overview

·      Operating loss of £59,724 (2009: profit £59,789)

·      Renewal of speech and music subscription contracts

·      Trials with potential new customers

·      Expansion of equipment installation and maintenance services

·      Innovation in development of new subscription content services

Financial Summary

	12 months to 31 December 2010	12 months to 31 December 2009
Revenue	£3,509,421	£3,771,135
Results from operating activities	£(59,724)	£59,789
(Loss)/profit before income tax	£(60,444)	£59,942
(Loss)/profit and total comprehensive income for the year attributable to equity shareholders	£(48,566)	£75,238
Basic and diluted (loss)/earnings per share	(0.35)p	0.54p
Year-end balance of cash and cash equivalents	£817,242	£816,712

Bruno Brookes, Chief Executive of Immedia, said:

"Last year we reported the launch of initiatives to provide our services to a greater number of clients both small and large, and have created a collection of generic music channels for a wide variety of retail business sectors which we will launch in the first half of 2011.  As a result we can deliver content not just within the UK but also in EMEA territories.  Our work in supporting this growth includes the development of indirect reseller channels. 

"We are engaged in several significant tender processes and also in designing 'stores of the future' for existing and potential new clients. Our product range has broadened significantly over the last 12 months enhancing our capabilities to deliver audio and visual marketing content internationally as well as locally.

"While we remain cautious about the outlook for 2011, in-store media is now an established part of retail store design and we are pursuing a number of exciting opportunities in this sector.  We believe that our services are the best on the market and will continue to develop product offerings for new and existing audiences."

Enquiries:

Immedia Group Plc
Bruno Brookes - Chief Executive	[phone]
Hudson Sandler
Nick Lyon	[phone]
Daniel Stewart & Company Plc
Paul Shackleton/Chris Theis	[phone]

Chairman's Statement

The opening months of 2010 proved to be frustrating as the pressures on our customers from the wider economy caused projects that had been approved for implementation to be postponed. As the year progressed and the economic outlook appeared to improve so confidence began to recover and projects were reinstated. The latter part of the year was consequently stronger, but not sufficiently so for the out-turn for the full year to maintain the solid performances recorded by your company in the two previous financial years.

The cost base has been tightly controlled in 2010 and we believe that your company is operating as cost effectively as possible whilst maintaining the levels of service required by our customers.

Cash balances have been maintained at broadly the level of 2009 and cash control is one of the major focuses for the management.

Contract renewals continue and there has been a healthy flow of inquiries from new customers. Our new music streaming product will enable us to provide services to a wider range of customers.

I assured shareholders in my statement last year that the Board of Immedia is committed to restoring shareholder value in the medium term. Although it is disappointing to have to report a loss after two years of profit, I do not believe that this reflects anything more than a temporary change of fortune. The profitable outcomes that your company delivers for its customers have a real value. Realising this value in a tangible form for shareholders is uppermost in the mind of the Board. 

Geoff Howard-Spink

Chairman

Business Review

I am pleased to present our full year results for the financial year ended 31 December 2010.

Results & Financial Performance

Revenues for the year were £3,509,421 (2009: £3,771,135).  Operating loss was £59,724 (2009: profit £59,789).  Research and development tax credits of £11,878 reduced the loss after tax attributable to equity shareholders to £48,566 (in 2009 the profit attributable to equity shareholders was £75,238).

The Group has remained operationally cash generative. We ended 2010 with £817,242 cash in the bank (2009: £816,712).

During the year the Group continued its investment in improved technology and equipment for the delivery of its services; ongoing investment in these areas ensures Immedia's services remain market leading.

Subscription Stations

Our subscription radio stations are our core service and their development continues.  We are currently trialling a live radio station for a new blue chip client and are developing trials with other similar clients.

Installation and maintenance services

Our audio and visual equipment installation and maintenance services business has also developed opportunities for further expansion and we are optimistic for its future growth.

Current Trading and Outlook

Last year we reported the launch of initiatives to provide our services to a greater number of clients both small and large, and have created a collection of generic music channels for a wide variety of retail business sectors which we will launch in the first half of 2011.  As a result we can deliver content not just within the UK but also in EMEA territories.  Our work in supporting this growth includes the development of indirect reseller channels. 

We are engaged in several significant tender processes and also in designing 'stores of the future' for existing and potential new clients. Our product range has broadened significantly over the last 12 months enhancing our capabilities to deliver audio and visual marketing content internationally as well as locally.

While we remain cautious about the outlook for 2011, in-store media is now an established part of retail store design and we are pursuing a number of exciting opportunities in this sector.  We believe that our services are the best on the market and will continue to develop product offerings for new and existing audiences.

Bruno Brookes          

Chief Executive 

Consolidated statement of comprehensive income

for the year ended 31 December 2010

	Note	2010	2009
		£	£
Revenue		3,509,421	3,771,135
Cost of sales		(1,625,096)	(1,722,984)
Gross profit		1,884,325	2,048,151
Administrative expenses		(1,944,049)	(1,988,362)
Results from operating activities		(59,724)	59,789
Finance income		1,726	2,290
Finance cost		(2,446)	(2,137)
Net finance (cost)/income		(720)	153
(Loss)/profit before income tax		(60,444)	59,942
Income tax income		11,878	15,296
(Loss)/profit and total comprehensive income for the year attributable to equity shareholders		(48,566)	75,238
Continuing and total operations
(Loss)/earnings per share - basic and diluted	3	(0.35)p	0.54 p

Consolidated balance sheet
At 31 December 2010

			2010 £		2009 £
Assets
Property, plant and equipment			218,585		221,254
Intangible assets			304,925		278,485
Total non-current assets			523,510		499,739
Current assets
Inventories			117,857		79,678
Trade and other receivables			319,177		613,644
Prepayments			122,461		119,541
Cash and cash equivalents			817,242		816,712
Total current assets			1,376,737		1,629,575
Total assets			1,900,247		2,129,314
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			(6,662,728)		(6,582,086)
Total equity			624,830		705,472
Liabilities
Loans and borrowings			-		22,000
Total non-current liabilities			-		22,000
Loans and borrowings			22,000		22,000
Trade and other payables			1,153,455		1,312,252
Deferred income			99,962		67,590
Total current liabilities			1,275,417		1,401,842
Total liabilities			1,275,417		1,423,842
Total equity and liabilities			1,900,247		2,129,314

Consolidated statement of changes in equity

	Attributable to equity shareholders of the Company
Total equity as at 31 December 2010	Share capital £	Share premium account £	Merger reserve £	Profit & loss account £	Total equity £
Balance at 1 January 2010	1,455,684	3,586,541	2,245,333	(6,582,086)	705,472
Purchase of own shares by employee benefit trust	-	-	-	(23,360)	(23,360)
Equity settled share based payments	-	-	-	(8,716)	(8,716)
Transactions with owners	-	-	-	(32,076)	(32,076)
Loss and total comprehensive income for the year	-	-	-	(48,566)	(48,566)
Balance at 31 December 2010	1,455,684	3,586,541	2,245,333	(6,662,728)	624,830

Total equity as at 31 December 2009	Share capital £	Share premium account £	Merger reserve £	Profit & loss account £	Total equity £
Balance at 1 January 2009	1,455,684	3,586,541	2,245,333	(6,666,324)	621,234
Equity settled share based payments	-	-	-	9,000	9,000
Transactions with owners	-	-	-	9,000	9,000
Profit and total comprehensive income for the year	-	-	-	75,238	75,238
Balance at 31 December 2009	1,455,684	3,586,541	2,245,333	(6,582,086)	705,472

Consolidated statement of cash flows

for the year ended 31 December 2010

		2010 £	2009 £
Cash flows from operating activities
(Loss)/profit for the year before income tax		(60,444)	59,942
Adjustments for:
Depreciation and amortisation charges		112,254	108,244
Financial income		(1,726)	(2,290)
Financial expense		2,446	2,137
(Profit)/loss on sale of property, plant and equipment		(376)	242
Decrease in trade and other receivables		294,467	15,100
(Increase)/decrease in inventories		(38,179)	16,464
(Decrease) in trade and other payables		(126,183)	(123,816)
Net cash from operating activities		182,259	76,023
Cash flows from investing activities
Proceeds from sale of property, plant and equipment		985	139
Interest received		1,726	2,290
Acquisition of property, plant and equipment		(97,594)	(120,800)
Acquisition of intangible assets		(39,040)	-
Net cash from investing activities		(133,923)	(118,371)
Cash flows from financing activities
Interest paid		(2,446)	(2,137)
Repayment of borrowings		(22,000)	(22,000)
Purchase of own shares for EBT		(23,360)	-
Net cash from financing activities		(47,806)	(24,137)
Net increase/(decrease) in cash and cash equivalents		530	(66,485)
Cash and cash equivalents at 1 January		816,712	883,197
Cash and cash equivalents at 31 December		817,242	816,712

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 2009 have been delivered to the registrar of companies, and those for 2010 will be delivered in due course.

The consolidated statement of comprehensive income, consolidated balance sheet at 31 December 2010, consolidated statement of changes in equity, consolidated statement of cash flows and associated notes have been extracted from the Group's 2010 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 2010 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 18 April 2011 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 30 March 2011.

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 2010 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.

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 2009.

On the basis of current financial projections prepared up to the end of 2012, 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.

(Loss)/earnings per share

	2010 Number	2009 Number
Weighted average number of shares in issue	14,556,844	14,556,844
Less weighted average number of own shares	(681,153)	(564,854)
Weighted average number of shares in issue for basic earnings per share	13,875,691	13,991,990
The basic and diluted (loss)/earnings per share are calculated using the after tax (loss)/profit attributable to equity shareholders for the financial period of £(48,566) (2009: profit of £75,238). The weighted number of shares used for the diluted (loss)/earnings 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 (in 2009 the outstanding share options had no dilutive effect).

 

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