Interim Results
Media Content PLC
30 March 2001
MEDIA CONTENT PLC
Interim Report for the Six Months Ended 31 December 2000
MEDIA CONTENT PLC
CHAIRMAN'S STATEMENT
I am pleased to present Media Content PLC's interim financial results for
the six months ended December 31 2000.
Turnover increased to £463,000 in the second half of 2000, compared to
£96,000 for the same period in 1999. Net loss (after expenses and
interest) was £146,000 in the period versus £183,000 in the six months to
December 31 1999, and a fully diluted loss per share of 2p, versus 3p in
the same period in 1999. Net cash has risen to £3,967,000 from £1,666,000
at December 31 1999.
As a result of the adoption of conservative accounting practices, Media
Content now has a consolidated balance sheet which is free of goodwill
and thus transparently reflects current operations. The year 2000 saw a
general downward adjustment in the valuations of many new media and
technology businesses. The group had planned to participate in certain
growth ventures however instead, the group chose to take a more careful
route and concentrate on servicing its existing relationships as well as
fostering other strategic relationships which would not expose its
shareholders to the same degree of short and medium term risk.
Operating activities which reflect this are:
1) The opening of a Hong Kong office to service our new and existing
clients' requirements in developing their activities in the region and vice
versa Asia Pacific clients in other parts of the world
2) The signing of a joint venture with SDCi, an operator of
business-to-business exchanges launched by seasoned media executives
from CME and Time Warner, to co-operatively launch SportsMediaRights.com.
3) Focus on adding value to existing client relationships such as
Manchester United Football Club and the New Zealand Rugby Football
Union
4) Recruitment of additional staff focused upon adding value to core
activities
5) The continuation of a process of reviewing a series of strategic
relationships and operating partnerships
The underlying sports media marketplace continues to demonstrate growth
and Media Content's alignment with key brands is a recipe upon which the
company plans to build. We concur with the view that the sports media
industry will continue to position the company to take advantage of
numerous opportunities both with our clients and in the marketplace.
Reflecting this, Media Content announced on 13 February 2001 that it
would acquire its partner in the SportsMediaRights.com venture, SDCi,
for USD$3.95 million in shares. In so doing, Media Content brings on board
a well-developed concept and experienced and complementary management and
broadens its focus to incorporate opportunities in the media arena. The
breadth of capabilities and the increased scale of the enlarged Media
Content makes us truly a force to be reckoned with in the growing
segments of the media landscape.
Robert Montgomery
Chairman
MEDIA CONTENT PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Six months ended 31 December 2000
Note Year
6 months to 6 months to ended
31 December 31 December 30 June
2000 1999 2000
(unaudited)(unaudited) (audited)
£000 £000 £000
TURNOVER 463 96 329
Administrative expenses
Exceptional item:
Amortisation of goodwill 3 - - (4,706)
Other administrative expenses (733) (284) (931)
(733) (284) (5,637)
OPERATING LOSS (270) (188) (5,308)
Interest receivable and similar income 124 5 83
Interest payable and similar charges - - -
LOSS ON ORDINARY ACTIVITIES
BEFORE AND AFTER TAXATION BEING
RETAINED LOSS (146) (183) (5,225)
Basic loss per share (pence) 4 (0.02) (0.03) (0.9)
Diluted loss per share (pence)4 (0.02) (0.03) (0.9)
All of the company's operations were classified as continuing in the year.
There were no other recognised gains or losses other than shown above.
MEDIA CONTENT PLC
CONSOLIDATED BALANCE SHEET
Six months ended 31 December 2000
Note At 31 At 31 At
December December 30 June
2000 1999 2000
(unaudited) (unaudited) (audited)
£000 £000 £000
FIXED ASSETS
Intangible assets - 4,574 -
Tangible assets 33 24 32
Investments 437 47 375
470 4,645 407
CURRENT ASSETS
Debtors 171 133 70
Cash at bank and in hand 3,967 1,666 4,191
4,138 1,799 4,261
CREDITORS: amounts falling due
within one year (146) (21) (75)
NET CURRENT ASSETS 3,992 1,778 4,186
TOTAL ASSETS LESS CURRENT
LIABILITIES 4,462 6,423 4,593
CAPITAL AND RESERVES
Called up share capital 5 6,362 6,138 6,359
Share premium 4,532 1,529 4,520
Profit and loss account (6,432) (1,244) (6,286)
EQUITY SHAREHOLDERS' FUNDS 4,462 6,423 4,593
MEDIA CONTENT PLC
RECONCILIATION OF MOVEMENTS IN CONSOLIDATED
SHAREHOLDERS' FUNDS
Six months ended 31 December 2000
At 31 At 31 At
December December 30 June
2000 1999 2000
(unaudited) (unaudited) (audited)
£000 £000 £000
Net funds at 1 July 4,593 5,147 5,147
Loss for the financial year/period (146) (183) (5,225)
Shares issued in the year/period 15 1,459 4,671
Net funds at 30 June 4,462 6,423 4,593
MEDIA CONTENT PLC
NOTES TO THE ACCOUNTS
Six months ended 31 December 2000
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.
Turnover
Turnover represents fees and expense reimbursements receivable by the company
net of any applicable VAT.
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 20 years.
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.
2. ANALYSIS OF TURNOVER
All of the entity's operations derive from the provision of sports media advice
and investment. A geographical analysis of operations is given below:
At 31 At 31 At
December December 30 June
2000 1999 2000
(unaudited) (unaudited) (audited)
£000 £000 £000
Geographical analysis of turnover by destination
North America 259 96 269
United Kingdom 31 - 30
Rest of the World 173 - 30
3. EXCEPTIONAL ITEMS
Amortisation of Goodwill
In the year ended 30 June 2000 the directors revised their estimate of goodwill
arising on consolidation and wrote off the full balance remaining in that year.
4. LOSS PER SHARE
Basic
The loss per share figure for the six months ended 31 December 2000 is based on
the loss for the period on ordinary activities after taxation of £146,000 (1999
Interim: £183,000; 1999/2000 final £5,225,289).
The weighted average number of shares used in the calculation of basic earnings
per share was 635,962,290 shares (1999 Interim: 582,798,913 shares; 1999/2000 :
607,491,600 shares.)
MEDIA CONTENT PLC
NOTES TO THE ACCOUNTS
Six months ended 31 December 2000
Diluted
The weighted average number of shares used in the calculation of diluted
earnings per share was 635,969,858 shares (1999 Interim: 582,798,913 shares;
1999/2000 final: 607,519,446). The number of shares reflects the share options
in existence at the respective dates.
5. CALLED UP SHARE CAPITAL
On 30 September 2000 the company issued 98,685 ordinary shares of lp each at
7.4p.
On 31 December 2000 the company issued 190,297 ordinary shares of lp each at
4.25p.
ENQUIRIES:
Jean Paul de la Fuente 020 8960 0422
Media Content PLC
Nick Oborne 0207 601 1000
Square Mile Communications