Final Results
Media Content PLC
26 November 2001
MEDIA CONTENT PLC ('MEDIA CONTENT')
RESULTS FOR YEAR ENDED 30 JUNE 2001
CHAIRMAN'S STATEMENT
Introduction
I am pleased to report to my fellow shareholders on a year of substantial
growth and change for Media Content plc. The second full year of operations
as a public company saw significant growth in the size and scope of our
business, the acquisition and recruitment of new management expertise, the
launch of the sports industry's first and only online marketplace, and a
re-defined and expanded mission for our business.
Media Content is now established as a leader in the sports advisory and
marketing industry and is rapidly establishing its credentials as a provider
and distributor for sports and general program content for the television
industry.
Financial results
Turnover in the year ended 30 June 2001 increased to £628,887 versus £328,989
in the previous year (+92%) due mainly to the addition of new advisory
clients. Operating expenses increased at the same time to £1,585,431 (before
exceptional items and goodwill) from £930,745 in year 2000 due primarily to
the businesses and personnel acquired in the SDCi transaction. Net loss after
exceptional items for 2001 decreased to £1,494,478 or 0.2 pence per share from
£5,225,289 or 0.9 pence per share in Year 2000 (In financial year 2000, the
write-off of remaining goodwill resulting from the reversal of Media Content
Limited was an exceptional item).
Operations review
The original sports advisory services business, Sports Media Advisors, had a
year of important growth in terms of client base and turnover. In June 2000,
SMA was appointed advisor to the Board of Manchester United and performed a
variety of projects and evaluations for that prestigious brand throughout the
year. Throughout the year Media Content continued its advisory relationships
with the NZ Rugby Union (All Blacks) and the World Wrestling Federation. In
April 2001, Sports Media Advisors was appointed the advisor to the World
Snooker Association, and following a strategic review, Media Content was
appointed the world-wide international distributor for television rights by
that organisation.
In June 2001, Media Content launched SportsMediaRights.com (SMR) in
conjunction with Sportel, the sports industry tradeshow organiser. Initial
response to the online marketplace has been favourable with over 100 buyers
and sellers of sports television rights registering as participants. The
primary task for the first several months has been the loading of inventory
information onto the marketplace and training the users in its operation.
Media content anticipates users to initiate trading in rights on the
marketplace during the fourth quarter of calendar year 2001.
Operating environment
The difficult economic environment which began in autumn 2000 has certainly
affected advertising budgets which may in turn diminish the appetite for media
rights. As an advisor to sports federations, leagues, and other content
owners, Media Content's expertise in optimal commercial exploitation of
television and other media rights has become even more valuable. An even more
important industry trend positively affecting Media Content's business has
been the consolidation in the sports marketing area climaxed by the bankruptcy
of ISL and the nearly simultaneous merger between UFA Sports, the Bertelsmann
agency, with that of Vivendi. In the new environment of four giant sports
distributors, each fully-integrated with mega-media empires, there is an
increased interest among content owners in the services of Media Content as an
independent advisor and marketer.
Management
Following the SDCi acquisition, the Company gained new expertise and
management capabilities. Several changes were made to operational and Board
responsibilities. Stanley Fertig, a co-founder of SDCi and former media
executive, brought his investment and mergers and acquisitions experience to
take responsibility as Executive Vice President and Chief Financial Officer of
Media Content plc. Robert J Morgado, formerly Chairman of Warner Music and
board Member of SDCi, joined the Media Content Board of Directors as a
non-executive Director, and Leonard M Fertig, co-founder of SDCi and
television entrepreneur, became Executive Chairman. Directors and co-founders
Jean-Paul de la Fuente and Jean-Francois Denis remained Chief Executive
Officer and Managing Director respectively. Robert Montgomery, also a
co-founder of Media Content, became Non-Executive Chairman.
The new management team of directors represents an extraordinary experience
level in the areas of television and content management and opens up numerous
opportunities for corporate growth.
Management share options
In order to provide incentive and retain key management employees, Media
Content plc introduced a share option plan during 2001. A maximum cap of 15%
of currently outstanding shares was established and the share options are all
at levels greater than or equal to the share price at the time of their
grants.
Hong Kong and NY offices
In November 2000, Media Content plc opened its first international office in
Hong Kong, servicing the Asia-Pacific region. This office is playing an
increasing role in securing clients for advisory, SportsMediaRights.com,
distribution and marketing services for the Company in one of the world's
fastest-growing media markets.
In May 2001, the Company opened an office in New York City to take advantage
of opportunities in the North American Market.
Implementation of new corporate strategy
After a thorough review of our capabilities and strengths, in recognition of
the opportunities available, the directors established a new direction for the
company. Key elements of our strategy include complementing our internal
growth through strategic transactions, such as acquisitions and partnership
agreements and other strategic relationships, to extend the scope of services
that Media Content offers to our customers.
In September 2001, we announced two strategic partnerships which added
merchandising in Asia and North America to the capabilities of the group,
while this past month we added the G-14 group football clubs to our client
list.
Future prospects and conclusion
The Media Content Group is poised to take advantage of its knowledge and
capabilities during the coming year, growing our existing business while
developing new opportunities for growth through partnerships and acquisitions.
We are looking forward to the upcoming year with hard work and confidence.
SALIENT FEATURES 2001 2000
£ £
Turnover 628,887 328,989
Loss after taxation (1,494,478) (5,225,289)
Loss per ordinary share
(pence per share) (0.2) (0.9)
The annual report for the year to 30 June 2001, details of the proposed AGM
resolutions and associated proxy forms are expected to be posted to all
shareholders today, copies of which will be available to the public free of
charge for one month from 96-98 Baker Street, London, W1U 6RA.
L Fertig
Executive Chairman
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 30 June 2001
Note 2001 2000
£ £
TURNOVER - continuing operations 1,4 628,887 328,989
Administrative expenses
Amortisation of goodwill (140,561) -
Exceptional items: 6
Goodwill written off - (4,706,284)
Impairment of investments (394,435) -
Bad debt provision (220,134) -
Other administrative expenses (1,585,431) (930,745)
(2,340,561) (5,637,029)
OPERATING (LOSS)/PROFIT 4,5
Continuing operations (1,715,261) (5,308,040)
Acquisitions 3,587 -
(1,711,674) (5,308,040)
Interest receivable and similar
income 8 217,196 82,751
LOSS ON ORDINARY ACTIVITIES
BEFORE AND AFTER TAXATION
BEING RETAINED LOSS FOR THE YEAR 19 (1,494,478) (5,225,289)
Basic loss per share (pence) 10 (0.2) (0.9)
Diluted loss per share (pence) 10 (0.2) (0.9)
There were no other recognised gains or losses other than shown above.
CONSOLIDATED BALANCE SHEET
30 June 2001
Note 2001 2000
£ £
FIXED ASSETS
Intangible assets 12 3,586,387 -
Tangible assets 13 46,948 32,389
Investments 14 42,168 375,102
3,675,503 407,491
CURRENT ASSETS
Debtors 15 262,853 69,677
Cash at bank and in hand 2,169,789 4,190,385
2,432,642 4,260,062
CREDITORS: amounts falling due
within one year 16 (185,362) (74,969)
NET CURRENT ASSETS 2,247,280 4,185,093
TOTAL ASSETS LESS CURRENT
LIABILITIES 5,922,783 4,592,584
CAPITAL AND RESERVES
Called up share capital 17 7,010,915 6,359,114
Share premium account 18 6,692,829 4,519,953
Profit and loss account 19 (7,780,961) (6,286,483)
EQUITY SHAREHOLDERS' FUNDS 5,922,783 4,592,584
CONSOLIDATED CASH FLOW STATEMENT
Year ended 30 June 2001
Note 2001 2000
£ £
Net cash outflow from operating
activities 20 (1,384,949) (566,965)
Returns on investments and
servicing of finance 21 217,196 82,751
Capital expenditure and financial
investment 21 (409,242) (435,960)
Acquisitions and disposals 21 (462,234) -
NET CASH OUTFLOW BEFORE FINANCING (2,039,229) (920,174)
FINANCING 21 18,633 4,670,550
(DECREASE)/INCREASE IN CASH 22 (2,020,596) 3,750,376
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
(SEE NOTE 22)
Year ended 30 June 2001
2001 2000
£ £
(Decrease)/increase in cash in year (2,020,596) 3,750,376
Net funds at beginning of year 4,190,385 440,009
Net funds at end of year 2,169,789 4,190,385
RECONCILIATION OF MOVEMENTS IN CONSOLIDATED SHAREHOLDERS' FUNDS
Year ended 30 June 2001
2001 2000
£ £
Shareholders' funds at 30 June 2000 4,592,584 5,147,323
Loss for the financial year (1,494,478) (5,225,289)
Shares issued in the year 2,824,677 4,670,550
Shareholders' funds at 30 June 2001 5,922,783 4,592,584
1. ACCOUNTING POLICIES
The financial statements are prepared in accordance with applicable accounting
standards. The particular accounting policies adopted are described below.
Accounting convention
The financial statements are prepared under the historical cost convention.
Basis of consolidation
The consolidated financial statements incorporate the financial statements and
all its subsidiaries. The consolidation does not include Sportev Limited as
an associated undertaking as the company cannot demonstrate significant
influence over the activities of this company.
Turnover
Turnover represents fees and expense reimbursements receivable by the company
net of any applicable VAT.
Tangible fixed assets
Depreciation is provided to write off the cost less estimated residual value
at rates equivalent to estimated useful economic lives. The periods of
depreciation are as follows:
Computer equipment 4 years
Fixtures and fittings 4 years
Investments
Investments held as fixed assets are stated at cost less provision for any
impairment.
Goodwill and intangible fixed assets
For acquisitions of a business in accordance with the provisions of FRS 10
'Goodwill and Intangible Assets', purchased goodwill is capitalised in the
year in which it arises, and amortised over its estimated useful life up to a
maximum of 5 years.
Acquisitions
On the acquisition of a business fair values are attributed to the group's
share of net separable assets. Where the cost of acquisition exceeds fair
values attributable to such net assets the difference is treated as purchased
goodwill and capitalised in the balance sheet in the year of acquisition.
The results and cash flows relating to a business are included in the
consolidated profit and loss account and the consolidated cash flow statement
from the date of acquisition.
Research and development
Research and development expenditure is written off as incurred except that
development expenditure incurred on an individual project is carried forward
when its technological feasibility is reasonably established and the
commercial viability can be foreseen with reasonable assurance.
Capitalisation of development expenditure ceases when the products derived
from the project are completed and fully tested. Any expenditure carried
forward is amortised on a straight line basis over four years or the estimated
useful life, if shorter, of the related products generated from the project,
commencing in the accounting period in which the product is available for
sale. Expenditure considered to be irrecoverable is written off immediately.
Foreign exchange
Transactions denominated in foreign currencies are translated into sterling at
the rates ruling at the dates of the transactions. Monetary assets and
liabilities denominated in foreign currencies at the balance sheet date are
translated at the rates ruling at that date. These translation differences
are dealt with in the profit and loss account.
Deferred taxation
Deferred taxation is provided on timing differences, arising from the
different treatment of items for accounting and taxation purposes, which are
expected to reverse in the future without replacement, calculated at the rates
at which it is expected the tax will arise.
Pension costs
Pension costs are charged to the profit and loss account in the period
incurred and relate to payments to private pension arrangements.
2. ACQUISITIONS
SDCi Limited
The entire share capital of SDCi Limited was acquired on 6 March 2001 by Media
Content plc for a consideration of £3,001,082. This acquisition has been
consolidated using the acquisition method of accounting. Goodwill of
£2,692,451 arose as a result of the acquisition, which has been capitalised on
the balance sheet.
SDCi Limited has subsidiary undertakings and the consolidated book values at
the date of acquisition were:
Book value
£
Intangible fixed assets 646,243
Tangible fixed assets 5,851
Debtors 26,730
Bank overdraft (568)
Current liabilities (369,625)
308,631
The directors have reviewed fair value of the assets and liabilities acquired
and concluded provisionally that these are equal to book value and that there
are no reorganisation costs for which to provide. The consideration comprised
a cash payment of £195,039 and £2,806,043 in 64,804,703 ordinary shares of 1p
each issued at 4.33p per share.
For the period 1 May 2000 to 6 March 2001, the SDCi Limited group generated
turnover of £2,023, and incurred an operating loss of £620,021. There were no
taxation charge, minority interest, exceptional items, or extraordinary items
in this period. This was the first period the company traded.
3. ANALYSIS OF CONTINUING OPERATIONS AND ACQUISITIONS
2001 2000
Continuing Aquisitions Total Continuing
£ £ £ £
Turnover 628,887 - 628,887 328,989
Administrative expenses (2,344,148) 3,587 (2,340,561) (5,637,029)
Operating (loss)/profit (1,715,261) 3,587 (1,711,674) (5,308,040)
4. ANALYSIS OF TURNOVER OPERATING LOSS AND NET ASSETS
All of the entity's operations derive from the provision of sports media
advice and investment. A geographical analysis of operations is given below:
Operating Net Operating Net
Turnover loss assets Turnover loss assets
2001 2001 2001 2000 2000 2000
£ £ £ £ £ £
Geographical
analysis
by origin
United Kingdom 628,887 (1,711,674) 5,922,783 328,989 (5,308,040) 4,592,584
Geographical
analysis of turnover
by destination
North America 325,097 268,764
United Kingdom 110,600 30,000
Rest of the World 193,190 30,225
628,887 328,989
5. OPERATING LOSS
Operating loss is stated after charging:
2001 2000
£ £
Goodwill amortised 140,561 4,706,284
Depreciation of owned assets 12,280 8,051
Operating lease rentals - property 29,932 20,932
Auditors' remuneration - audit fee 20,000 13,500
Write down of investment (Note 6) 394,435 47,169
Cost associated with acquisitions - 31,000
6. EXCEPTIONAL ITEMS
Impairment of investments
The impairment of investment relates to the write down of Sportev Limited due
to uncertainties over its ability to generate returns. See Note 14.
Bad debts
A bad debt provision of £220,134 has been charged in the year due to the
financial difficulties of a client, Bedford Communications Inc. The current
year charge is equal to the revenue recognised in that financial year.
Amortisation of Goodwill
In the previous year the directors reviewed the carrying value of goodwill
arising on consolidation of Media Content Sports Media Advisers Limited and
wrote off the full balance remaining in that year.
7. INFORMATION REGARDING DIRECTORS AND EMPLOYEES
Directors' remuneration
2001 2000
Basic salary Benefits Fees Pensions Total Total
£ £ £ £ £ £
R B Montgomery - - 65,000 - 65,000 50,000
J P de la Fuente 128,301 1,370 - 6,000 135,671 104,924
J F Denis 125,534 1,364 - 6,000 132,898 104,920
L M Fertig 38,860 - 34,410 - 73,000 19,971
S B Fertig 39,988 2,859 - - 42,847 -
R J Morgado - - - - - -
M Edelson - - - - - 6,041
332,683 5,593 99,140 12,000 449,416 285,856
Directors' interests
The tables below show directors' interest in the shares of the company:
At 30 June
2000 or At
Date of Additions 30 June
appointment in year 2001
No. No. No.
R B Montgomery 133,857,000 - 133,857,000
J P De la Fuente 173,821,500 - 173,821,500
J F Denis 173,821,500 - 173,821,500
L M Fertig 161,360 12,802,380 12,963,740
S B Fertig 12,580,241 - 12,580,241
R J Morgado 3,012,366 - 3,012,366
No director held share options at anytime during the year.
Staff costs (including directors' emoluments) incurred in the year were as
follows:
2001 2000
£ £
Wages and salaries 670,633 341,116
Social security costs 65,035 31,352
Pension costs 12,000 9,870
747,668 382,338
Pension costs represent payments to private pension arrangements of two
directors.
The average weekly number of employees during the year was made up as follows:
2001 2000
No. No.
Administrative 2 1
Operational 6 4
8 5
8. INTEREST RECEIVABLE AND SIMILAR INCOME
2001 2000
£ £
Bank interest 217,196 82,751
9. TAX CHARGE ON LOSS ON ORDINARY ACTIVITIES
Due to the size of current year losses no corporation tax charge is expected
to arise. The group has unrelieved tax losses of approximately £501,017 at
the year end (2000 - £180,632).
No provision for deferred taxation arises in the current or previous year, and
no unprovided deferred taxation liabilities arise in the current or previous
year.
10. LOSS PER SHARE
Basic
The loss per share figure for the year ended 30 June 2001 is based on the loss
for the year on ordinary activities after taxation of £1,494,478 (2000 -
£5,225,289).
The weighted average number of shares used in the calculation of basic
earnings per share was 655,147,543 (2000 - 607,491,600) shares.
Diluted
The weighted average number of shares used in the calculation of diluted
earnings per share was 662,262,408 (2000 - 607,519,446). The number of shares
reflects the share options in existence at 30 June 2001.
11. PROFIT OF PARENT COMPANY
As permitted by Section 230 of the Companies Act, the profit and loss account
of the parent company is not presented as part of these accounts. The parent
company's loss for the financial year amounted to £536,733 (2000 - £260,077).
12. INTANGIBLE FIXED ASSETS
The Group Development
expenditure Goodwill Total
£ £ £
Cost
At 1 July 2000 - 4,947,034 4,947,034
Acquired with subsidiary 640,305 5,938 646,243
Additions 388,254 2,692,451 3,080,705
At 30 June 2001 1,028,559 7,645,423 8,673,982
Accumulated amortisation
At 1 July 2000 - (4,947,034) (4,947,034)
Charge for year - (140,561) (140,561)
At 30 June 2001 - (5,087,595) (5,087,595)
Net book value
At 30 June 2001 1,028,559 2,557,828 3,586,387
At 30 June 2000 - - -
13. TANGIBLE FIXED ASSETS
The Group Fixtures
Computer and
equipment Fittings Total
£ £ £
Cost
At 1 July 2000 23,572 18,651 42,223
Acquired with subsidiary 8,110 - 8,110
Additions 19,364 1,624 20,988
At 30 June 2001 51,046 20,275 71,321
Depreciation
At 1 July 2000 (4,764) (5,070) (9,834)
Acquired with subsidiary (2,259) - (2,259)
Provided during the year (7,211) (5,069) (12,280)
At 30 June 2001 (14,234) (10,139) (24,373)
Net book value
At 30 June 2001 36,812 10,136 46,948
At 30 June 2000 18,808 13,581 32,389
There were no assets held under finance leases or hire purchase contracts at
the year end.
14. INVESTMENTS HELD AS FIXED ASSETS
The Group Other
investments
£
Cost
At 1 July 2000 422,271
Additions 61,501
At 30 June 2001 483,772
Provisions
At 1 July 2000 (47,169)
Charge in year (Note 5) (394,435)
At 30 June 2001 (441,604)
Net book value
At 30 June 2001 42,168
At 30 June 2000 375,102
Name of Company Country of incorporation Proportion of Nominal
value of shares and
voting rights
Sportev Limited Great Britain 20.6% (1999- 25%)
30 June 30 June
2001 2000
£ £
Sportev Limited
Share capital and reserves
Share capital 1,378,981 490,309
Profit and loss account (1,086,171) (222,456)
292,810 267,853
Loss for the year ended 30 June 2001 (863,715) (222,456)
15. DEBTORS
Group
30 June 30 June
2001 2000
£ £
Trade debtors 54,896 33,678
Other debtors and prepayments 206,957 34,999
Amounts owed by group undertakings
due after more than one year - -
Called up share capital not paid 1,000 1,000
262,853 69,677
16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
30 June 30 June
2001 2000
£ £
Trade creditors 73,973 30,194
Other taxation and social security 26,047 20,902
Other creditors 53,034 1,748
Accruals and deferred income 32,308 22,125
185,362 74,969
17. CALLED UP SHARE CAPITAL
The Company
Number of 30 June Number of 30 June
shares 2001 shares 2000
£ £
Authorised:
Ordinary shares
of 1p each 800,000,000 8,000,000 800,000,000 8,000,000
Called up, allotted
and fully paid:
Ordinary shares
of 1p each 701,091,543 7,010,915 635,911,360 6,359,114
On 30 September 2000 the company issued 98,685 ordinary shares of 1p each at
7.4p each for cash.
On 31 December 2000 the company issued 190,297 ordinary shares of 1p each at
4.25p each for cash.
On 6 February 2001 the company issued 86,498 ordinary shares of 1p each at
3.75p each for cash.
In relation to the purchase of the SDCi Limited and its subsidiaries the
company issued the following shares:
Date Number Class of share Issue price
12 March 2001 59,752,617 1p ordinary share 4.33p
29 March 2001 3,319,984 1p ordinary share 4.33p
23 May 2001 1,732,102 1p ordinary share 4.33p
The company received non-cash consideration for these shares in the form of
the entire share capital of SDCi Limited and professional services in relation
to the acquisition.
Share options
At 30 June 2001, the companies had in issue the following share options:
Number of Option price Option period Option period
options per share beginning ending
600,000 10p 10 April 2001 10 April 2011
600,000 10p 10 April 2002 10 April 2011
600,000 10p 10 April 2003 10 April 2011
6,750,000 4p 9 January 2002 9 January 2012
6,750,000 4p 9 January 2003 9 January 2012
6,750,000 4p 9 January 2004 9 January 2012
During the year 21,600,000 4p share options were granted. Also 360,000 10p
share options and 1,350,000 4p share options lapsed during the year. The
share price ranged between 3p and 12.25p per share during the year.
The company also had an arrangement with a director, Len Fertig , who was
obliged to purchase shares, at the lower of current market price at date of
purchase and 7.4p from his net first year's salary of £50,000 per annum. As
at 30 June 2001 no further amounts remain to be paid (1999 - £30,029).
18. SHARE PREMIUM ACCOUNT
£
At 30 June 2000 4,519,953
Arising on issue of shares in the year 2,172,876
At 30 June 2001 6,692,829
Issue costs of £nil (1999 - £101,000) were charged to the share premium
account upon issue by the company of shares during the year.
19. STATEMENT OF MOVEMENTS ON RESERVES
Group
Share premium Profit and
account loss account
£ £
As at 30 June 2000 4,519,953 (6,286,483)
Retained loss for the year - (1,494,478)
Premium on issue of shares 2,172,876 -
As at 30 June 2001 6,692,829 (7,780,961)
20. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING
ACTIVITIES
2001 2000
£ £
Operating loss (1,711,674) (5,308,040)
Depreciation 12,280 8,051
Goodwill amortised/written off 140,561 4,706,284
Increase in debtors (166,444) (50,473)
Increase/(decrease) in creditors (54,107) 30,044
Provision for impairment of
investments 394,435 47,169
Net cash outflow from operating
activities (1,384,949) (566,965)
21. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW
STATEMENT
30 June 2001 30 June 2000
£ £ £ £
Returns on investments
and servicing of finance
Interest received 217,196 82,751
217,196 82,751
Capital expenditure and
financial investment
Payments to acquire
intangible fixed assets (388,254)
Payments to acquire
tangible fixed assets (20,988) (13,690)
Purchase of other
investments - (422,270)
(409,242) (435,960)
Acquisitions and disposals
Payments to acquire
investment in subsidiary
(Note 24) (195,039) -
Net overdraft acquired
with subsidiary (Note 24) (568) -
Purchase of interest in
other investments (61,501) -
Loans to other entities (205,126)
-
(462,234) -
Financing
Issue of ordinary
share capital 18,633 4,670,550
22. ANALYSIS OF NET FUNDS
At At
30 June Cash 30 June
2000 Flow 2001
£ £ £
Cash at bank and in hand 4,190,385 (2,020,596) 2,169,789
23. COMMITMENTS UNDER OPERATING LEASES
Land and Land and
Other buildings Total buildings
2001 2001 2001 2000
£ £ £ £
Lease payments expiring
within one year 33,275 - 33,275 16,075
Lease payments expiring
between two
and five years - 130,000 130,000 -
24. ACQUISITIONS
SDCi Limited
£
Goodwill 2,692,451
Intangible fixed assets 520,190
Tangible fixed assets 131,904
Debtors 26,730
Bank overdraft (568)
Current liabilities (369,625)
3,001,082
Consideration satisfied by cash 195,039
Shares issued 2,806,043
3,001,082
The subsidiary acquired during the year accounted for £107,423 of the group's
operating cash outflows. See Note 2 for further details of the acquisition.
25. RELATED PARTY TRANSACTIONS
The company has taken advantage of the provisions of Financial Reporting
Standard 8, paragraph 3(c). Accordingly transactions with other group
companies are not disclosed.
Prior to its acquisition Media Content had lent SDC International Services
Limited £40,000. This loan was not repaid prior to the acquisition of the
SDCi Limited group.
L M Fertig, S B Fertig and R J Morgado who are all directors, were significant
shareholders in SDCi Limited prior to its acquisition by Media Content plc.
26. CAPITAL COMMITMENTS
The group The company
2001 2000 2001 2000
£ £ £ £
Contracted for but
not provided 92,000 - 92,000 -
27. EVENT OCCURRING AFTER THE END OF YEAR
On 10 July 2001 the company passed an ordinary resolution to increase the
authorised share capital by 150,000,000 ordinary shares of 1p each to
950,000,000 ordinary shares of 1p each.