MEDIA HOLDINGS plc
("Media Holdings" or the "Company")
INTERIM RESULTS FOR THE PERIOD ENDED 30 JUNE 2008
Business highlights in the period:
* Investment in Aquarius Media plc, Red Dragon Investments plc and
Interactive Publishing plc.
* New issue of 55 million ordinary shares of 0.5p each at 0.85p per share
plus £182,500 in convertible loan notes to acquire 1,000 ordinary shares of
£1 each in Parkgreen Communications Limited ("Parkgreen"), resulting in a
shareholding of 1,490 shares (49.67%).
CHAIRMAN'S STATEMENT
I am pleased to make this statement to you as Chairman of the Company.
Review of activities
On 5 February 2008, the Company acquired 6,000,000 ordinary shares in Aquarius
Media plc ("Aquarius"), representing 7.05% of that company's issued share
capital. Aquarius is a PLUS-quoted company established in March 2007 for the
purpose of making investments in the public relations and marketing sectors. In
July 2007, Aquarius acquired Full Portion Media Limited, a public relations
business which aims to create, launch and sustain clients in prominent
positions within the media.
Also on 5 February 2008, the Company acquired 15,500,000 ordinary shares in Red
Dragon Investments plc (`Red Dragon'), representing 11.77% of that company's
issued share capital. In September 2007, Red Dragon acquired GJA Communications
Limited, a strategic communications agency operating in the marketing services
sector, with specific emphasis on communication strategy, public relations and
event management.
The consideration for the above acquisitions was satisfied by the issue of
39,000,000 new ordinary shares at an issue price of 1 pence per share to
Financial One Securities Limited, together with a convertible loan note for £
121,250. The loan note is convertible by the noteholder into a maximum of
12,125,000 new ordinary shares at 1 pence per share.
On 20 February 2008, the Company subscribed for 35,000,000 new ordinary shares
in Interactive Publishing plc (`Interactive') at 2 pence per share. Interactive
was admitted to PLUS-Markets on 20 February 2008 and on the same day acquired
Trojan Publishing Limited, a London-based publishing company with a portfolio
of around 40 titles. It has since continued to acquire other titles to add to
its portfolio. The consideration for this subscription was £735,000 including
expenses and was satisfied by the issue of £700,000 in unsecured
non-convertible loan notes to Griffin Two Limited. The loan notes are repayable
after one year. On 7 May 2008, the Company sold 25,000,000 shares in
Interactive to Griffin Two Limited at 2 pence per share. Accordingly, at 30
September 2008 the Company held 10,000,000 shares in Interactive (6.8%) and the
outstanding loan note from Griffin Two Limited was £212,503.
In May 2008, the Company re-established its 49% shareholding in Parkgreen by
issuing 55 million new ordinary shares of 0.5p each at 0.85p per share and £
182,500 in convertible loan notes, in exchange for 1,000 additional shares in
Parkgreen. A major loan note holder in Parkgreen had exercised its loan note
conversion rights in order to strengthen the balance sheet after a series of
write-downs and the Board of Media Holdings determined that the new issue was
necessary in order to maintain a sizeable equity stake in Parkgreen. The stake
now held equates to that prior to the exercise of the conversion rights in
Parkgreen.
Financial overview
In the period ended 30 June 2008, the Company had fee income of £50,720,
representing management charges to Parkgreen and arrangement fees received
Administrative costs amounted to £128,275, the Company received interest of £
1,041 and paid interest of £23,576. The share of profits derived from associate
undertakings was £4,986. The loss before tax and loss per share for the period
amounted to £95,104 and 0.07p respectively. The Directors do not propose to
declare a dividend.
As at 30 June 2008, shareholders' funds were £315,483 and cash balances were £
191.
In April 2008, the Company issued 2,000,000 warrants to subscribe for new
ordinary shares in the Company to a consultant as part payment for fees. The
warrants are exercisable at 1 pence and at any time up to 1 March 2011.
Outlook
The investments to date further the Company's strategy to develop, acquire and
invest in opportunities within the public relations and marketing sectors. The
Directors continue to seek suitable acquisition targets to enhance the
Company's value.
Vince Nicholls
Chairman
INCOME STATEMENT
For the 6 months to 30 June 2008
Final
6 months to 6 months to 12 months
30.06.08 30.06.07 31.12.07
(unaudited) (unaudited) (audited)
£ £ £
Fee income 50,720 44,000 83,800
Administrative expenses (128,275) (136,637) (263,563)
Provision against investments - (30,000) (1,272,000)
Share of profits of associates 154,986 - 72,000
_________ _________ _________
LOSS FROM OPERATIONS (72,569) (122,637) (1,379,763)
Finance revenue 1,041 4,424 6,162
Finance costs (23,576) (3,007) (8,573)
_________ _________ _________
LOSS BEFORE TAX (95,104) (121,220) (1,382,174)
Taxation - - -
_________ _________ _________
LOSS FOR THE PERIOD (95,104) (121,220) (1,382,174)
_________ _________ _________
Loss per share (note 1) (0.07)p (0.14)p (1.55)p
BALANCE SHEET
As at 30 June 2008
Final
30.06.08 30.06.07 31.12.07
(unaudited) (unaudited) (audited)
£ £ £
NON-CURRENT ASSETS
Unlisted investments - 1,729,894 -
Available for sale assets 470,500 - -
Investments in associates 875,511 - 555,160
_________ _________ _________
1,346,011 1,729,894 555,160
CURRENT ASSETS
Investments held for resale - 120,000 -
Trade and other receivables 50,118 134,256 64,429
Cash and cash equivalents 191 656 992
_________ _________ _________
50,309 254,912 65,421
CURRENT LIABILITIES
Trade and other payables (333,117) (436,924) (162,465)
Short term borrowings (535,244) (66,007) (35,000)
_________ _________ _________
NET CURRENT LIABILITIES (818,052) (248,019) (132,044)
_________ _________ _________
TOTAL ASSETS LESS CURRENT LIABILITIES 527,959 1,481,875 423,116
NON-CURRENT LIABILITIES
Long-term borrowings (212,476) - (204,194)
_________ _________ _________
NET ASSETS 315,483 1,481,875 218,922
_________ _________ _________
EQUITY
Issued share capital 926,416 456,416 456,417
Share premium account 2,008,017 1,652,517 1,650,517
Profit & loss account (2,618,950) (627,058) (1,888,012)
_________ _________ _________
SHAREHOLDERS' FUNDS 315,483 1,481,875 218,922
_________ _________ _________
CASH FLOW STATEMENT
For the 6 months ended 30 June 2008
Final
6 months to 6 months to 12 months
30.06.08 30.06.07 31.12.07
(unaudited) (unaudited) (audited)
£ £ £
Cash flow from operating activities
Loss before taxation (95,104) (121,220) (1,382,174)
Adjusted for:
Investment income (1,041) (4,424) (6,162)
Investment expense 23,576 3,007 8,573
Provision against investments - - 1,272,000
Loss on disposal of investments - - 30,000
Decrease in investments held for resale - 30,000 -
Increase in trade and other receivables (5,579) (834) (20,638)
Increase/(decrease) in trade and other 170,652 209,556 (64,903)
payables
Share based payments 3,360 - -
Share of profits of associates (4,986) - (72,000)
_________ _________ _________
Net cash from operating activities 90,878 116,085 (235,304)
Cash flows from investing activities
Purchase of investments (63,809) (58,750) (84,016)
Sale of investments - - 120,000
Loans received - - 235,000
Loans advanced - (70,000) (105,000)
Loans repaid 20,800 - -
Interest received 130 89 6,458
Interest paid - - (4,379)
_________ _________ _________
Net cash from investing activities (42,879) (128,661) 168,063
Cash flows from financing activities
Issue of shares - 66,999 67,000
Expenses of issue (30,000) - (2,000)
Borrowings repaid (18,800) (57,000) -
_________ _________ _________
Net cash used in financing activities (48,800) 9,999 65,000
Net increase in cash and cash equivalents (801) (2,577) (2,241)
Opening cash & cash equivalents 992 3,233 3,233
_________ _________ _________
Closing cash & cash equivalents 191 656 992
_________ _________ _________
ACCOUNTING POLICIES NOTE
The following is a note on accounting policies not applied to the audited
financial statements prepared to 31 December 2007:
Available for Sale Assets
Available for sale assets are designated at fair value. Fair value is generally
based on the closing bid price at the reporting date, where the investment is
quoted on an active stock market. Unrealised profits and losses on the
revaluation of investments are the movement in the carrying value of the
investments between acquisition and the end of the accounting period, and are
taken to reserves in accordance with International Financial Reporting
Standards.
Investments in Associates
Associates are entities where the Company controls in excess of 20% of the
issued share capital or can otherwise exert significant influence over the
entity. Where the shareholding in the associate changes due to a dilution in
the associate's issued share capital, a gain or loss on dilution is calculated
in the Company's financial statements. Any gain or loss is taken to equity in
accordance with IAS 28. Where a dilution loss occurs, the investment in the
associate is tested for impairment.
NOTES
1 Loss per share
The basic loss per share is calculated by dividing the loss for the financial
period attributable to shareholders by the weighted average number of shares in
issue. There were no dilutive securities as at 30 June 2008. The weighted
average number of shares were:
Final
6 months to 6 months to 12 months
30.06.08 30.06.07 31.12.07
Number Number Number
Weighted average number of 132,161,786 87,263,334 89,295,421
shares
_________ _________ _________
Loss per share (0.07)p (0.14)p (1.55)p
2 While the financial information included in this interim announcement has
been computed in accordance with International Financial Reporting Standards
(IFRS), this announcement does not itself contain sufficient information to
comply with IFRS. The interim financial information has been prepared on the
basis of the accounting policies set out in the Company's statutory accounts to
31 December 2007 which were 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. The interim figures have not been audited or reviewed by the auditors.
The interim financial statement does not constitute statutory accounts within
the meaning of Section 240 of the Companies Act 1985 (the "Act"). Comparative
financial information for the 12 months ended 31 December 2007 has been
extracted from the statutory accounts for the period which have been delivered
to the Registrar of Companies and upon which the auditors gave an unqualified
report, with no statement under Section 237(2) or (3) of Act.
3 The Directors have not declared a dividend for the period.
4 The interim results announcement was approved by the Board of Directors on 23
September 2007. Copies of this report will be available free of charge from the
Company's registered office at Hilden Park House, 79 Tonbridge Road,
Hildenborough, Kent TN11 9BH.
Enquiries:
Vince Nicholls, Chairman 01732 836180
Gary Miller, Fisher Corporate plc 020 7388 7000