INTERACTIVE PUBLISHING PLC
("IPP" or the "Company")
INTERIM FINANCIAL STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2008
CHAIRMAN'S STATEMENT
I am pleased to make this statement to you as Chairman of the Company.
Review of activities
Interactive Publishing plc ("Interactive" or "The Company") was admitted to PLUS-Markets on 20
February 2008 for the purpose of making investments in the publishing and marketing services sectors.
Immediately prior to Admission, the Company acquired the entire issued share capital of Trojan
Publishing Limited ("Trojan"), a London-based magazine publishing company that was formed in June
2006 as a publishing investment vehicle with the strategy of building a publishing group engaged in
the production of both magazine and digital content.
Trojan's current portfolio consists of 50 magazines, of which 18 are monthlies, 8 are printed every 4
weeks, 9 are bi-monthly and 3 are quarterly.
In the period under review, Trojan has continued to apply economies of scale to its portfolio and
streamlined its activities in accordance with its strategy of focusing on its consumer-based brands
whilst nurturing its adult portfolio to ensure that high revenues and profitability are maintained in
this area.
Key Performance Indicators
The principal performance indicator used to measure the progress of the Group's business activities
is the contribution generated by each magazine title or brand. This is assessed by reference to
direct costs associated with the production and maintenance of that title or brand. The directors
keep the performance of each title under constant review and take a commercial view, based on research
and their own industry experience, of the future contribution to the business that, in their opinion,
each title or brand is likely to make.
Principal risks and uncertainties
The principal risks and uncertainties experienced by the Group are as follows:
* The continued attraction, retention and motivation of qualified employees to provide a
high quality of content in the publication and to drive circulation, advertising and
other revenues;
* Changing customer and market demands, and changes in the competitive environment in which
the business operates;
* The effect of current global economic conditions on the level of consumer spend,
particularly on advertising revenues;
* The ability of senior management to continue to identify suitable targets for future
acquisitions and to develop complimentary revenue streams.
Current developments
On 2 March 2009, the Company announced the acquisition of Scarlet Magazine and its related website,
www.scarletmagazine.co.uk, through a newly created wholly-owned subsidiary Scarlet Publishing Limited.
Scarlet Magazine is a women's magazine which was launched to provide frank informative features that
talk to its female readers in the same way women talk to each other when men are not around. The
magazine is distributed through major newsagents and supermarkets as well as via subscription.
Financial Overview
The results for the year reflect the trading revenues and expenses of the business and the financial
costs of the plc. The results for the comparative period to 31 December 2007 reflect the trading
revenues and expenses of the Company's trading subsidiary only. The loss before taxation for the
period amounted to GBP 83,772 and the basic loss per share was 0.06 pence.The substantial commitments
undertaken by the Group in respect of the prior acquisition of titles have now been largely settled
and the Scarlet acquisition (together with any future acquisitions) is expected to be self-supporting
in terms of cash generated. On this basis, the Directors expect that the Group will commence
generating cash surpluses during the financial period commencing 1 July 2009.
On 23 December 2008, the Company issued 2,500,000 new ordinary shares at a price of 2 pence each to
finance a potential acquisition.
Also on 23 December 2008, the Company issued 17,000,000 new ordinary shares each in settlement of the
deferred consideration due for the period ended 30 June 2008 on the acquisition of Trojan Publishing
Limited. In accordance with the acquisition agreement, these shares were issued at a price of 3 pence
each.
Outlook
The Directors believe that the continued uncertainty within the economy has created opportunities to
acquire quality magazines that will further enhance the Company's portfolio. IPP will continue to
identify magazines that perform well within our market sectors and which can benefit from being part
of our enlarged portfolio.
Peter Jay
Chairman
INCOME STATEMENT
For the period ended 31 December 2008
Six months Six months
ended ended Year ended
Note 31.12.08 31.12.07 30.06.08
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
REVENUE 3,283,481 2,791,954 5,986,665
Cost of sales (1,982,351) (1,648,663) (4,431,012)
_________ _________ _________
GROSS PROFIT 1,301,130 1,143,291 1,555,653
Administrative expenses (1,394,266) (1,055,051) (1,277,479)
_________ _________ _________
(LOSS)/PROFIT FROM OPERATIONS (93,136) 88,240 278,174
Finance Revenue 34 - 275
Finance costs 9,330 - (28,530)
_________ _________ _________
(LOSS)/PROFIT BEFORE TAX (83,772) 88,240 249,919
Taxation - - (79,357)
_________ _________ _________
(LOSS)/PROFIT FOR THE PERIOD (83,772) 88,240 170,562
_________ _________ _________
Basic (loss)/earnings per share 3 (0.06)p £3.84 0.16p
Diluted (loss)/earnings per share 3 (0.05)p £3.84 0.14p
INTERACTIVE PUBLISHING PLC
Notes to the financial information
1. While the financial information included in this interim announcement has been computed in
accordance with IFRS, this announcement does not itself contain sufficient information to comply with
IFRS. The full financial statements of the company will be prepared in accordance with IFRS,
International Accounting Standards and their interpretations issued or adopted by the International
Accounting Standards Board as adopted for use in the European Union.
2. This interim financial statement has not been audited or reviewed by the auditors and does not
constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985.
3. The calculation of basic (loss)/earnings per share is based on the (loss)/profit on ordinary
activities after taxation of GBP (83,772) (31 December 2007: GBP 88,240; 30 June 2008: GBP 170,562)
and the weighted average number of shares of 148,445,355 (31 December 2007: 22,954; 30 June 2008:
105,896,347) in issue during the period. The adjusted weighted average number of shares used to
calculate the diluted earnings per share were 165,112,021 (31 December 2007: 22,954; 30 June 2008:
122,563,014).
4. This interim financial statement was approved by the Board of Directors on 23 March 2008.
Copies of this statement will be available free of charge from the Company's Registered Office at
Ground Floor, 211 Old Street, London EC1V 9NR.
INTERACTIVE PUBLISHING PLC
Registered No. 06388765
Contacts:
Interactive Publishing plc
Justin Sanders, CEO 0207 608 6300
PLUS Corporate Adviser
Gary Miller
Fisher Corporate plc 020 7388 7000
Interactive Publishing Plc