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Pin to quick picks7digital Regulatory News (7DIG)

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7digital Group PLC - Update

Fri, 4th Jan 2019 10:10

RNS Number : 2333M
7digital Group PLC
04 January 2019
 

 

For immediate release

 

4 January 2019

 

7digital Group plc

Update

 

7digital Group plc (AIM: 7DIG) ("7digital", the "Company" and together with its subsidiary undertakings, the "Group") is pleased to confirm that it completed the planned platform consolidation and re-structuring of the Group's operations in the final quarter of 2018, reducing the company's cost base by an annualised £6.2m.   Several operations and offices have been closed or discontinued and staff numbers reduced in all locations.  All the Company's operations have remained stable during the restructuring and the move to a single technology platform for 7digital's customers.

The final quarter of the year saw several contract wins with US based technology platforms, major record labels and broadcasters, the details of which are subject to commercial confidentiality especially in the light of the upcoming CES event in Las Vegas.  The company will issue a detailed statement of the expected out-turn for 2018 once accounting issues related to the restructuring and revenue recognition under IFRS 15 have been resolved. 

In the last two weeks, the Company has entered discussions with Juke GmbH, a wholly owned subsidiary of European retailer MediaMarktSaturn ("MMS"), about the future of the Juke music service.  The Company has agreements with Juke for some £4m of revenues in 2019.   MMS has indicated that it may wish to change the current arrangements and this could involve 7digital taking more responsibility for certain aspects of the service or the service being closed with a resulting termination payment becoming due and payable to the Company.  A further statement will be made once discussions have concluded.

Finally, the Company became aware today that HM Revenue & Customs ("HMRC") has published a notice in the London Gazette of a hearing of a winding up petition (the "Petition") served on 7digital Trading Limited ("7digital Trading").  7digital Trading is a wholly owned subsidiary of the Company and provides only certain human resources and payroll services to the Group, it is not the Group's main trading business.  The Petition relates to sums due to HMRC of approximately £417,000.  The hearing of the Petition is listed for 16 January 2019.   Based on expected receipts, the Company is confident that the full amount due to HMRC will be paid in advance of the hearing.  7digital Trading has no other third party trade creditors and so, on satisfaction of the debt due to HMRC, the Company is confident that the Petition will be dismissed.

A further announcement will be made in due course.

This announcement contains information which, prior to its disclosure, was inside information for the purpose of the Market Abuse Regulation

 

Enquiries:

7digital Group plc

020 7099 7777

Simon Cole, Chief Executive

David Holmwood, Interim Chief Financial Officer

 

Arden Partners plc (nominated adviser and broker)

020 7614 5900

Ruari McGirr/Tom Price/Benjamin Cryer

 

About 7digital

 

7digital is the global leader in B2B end-to-end digital music solutions.  The core of its business is the provision of robust and scalable technical infrastructure and extensive global music rights used to create music streaming and radio services for a diverse range of customers - including consumer brands, mobile carriers, broadcasters, automotive systems, record labels and retailers.  7digital also offers radio production and music curation services, editorial strategy and content management expertise.

 

7digital fosters industry growth and innovation by simplifying access to music for clients such as MediaMarktSaturn, Onkyo and musical.ly.  From years of being the largest independent producer of programming for the BBC and powering services for partners like Panasonic, TDC and Fender, 7digital is perfectly positioned to lead innovation at the intersection of digital music and next-generation radio services.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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