AVS.L Regulatory News (AVS)

12 Jan 2005 07:00

12 January 2005 INVESTINMEDIA PLC PRELIMINARY RESULTS Key StatisticsUnaudited, Twelve months to 30 September 2004 30 September 2003 Continuing profit before tax (‚£ 000's) 2,689 2,473 Continuing profit after tax (‚£ 000's) 1,930 1,703 EPS Continuing 11.8p 10.4p EPS Continuing Diluted 11.7p 10.4p Closing net funds / (debt) (‚£ 000's) 2,030 (9,993)Chairman's statementI have pleasure in presenting our first Annual Report as InvestinMedia.Following the successful completion of the Demerger of our former corebusiness, your board is now able to focus on and pursue strategies moreappropriate to an investment business in the media sector.To simplify our accounting, your board changed the company's year-end to 30September 2004, the same as that of our principal investment, CompleteCommunications Corporation Limited ("Complete"). This change means that theReport and Accounts cover the eighteen-month period to that date. The resultsfor the eighteen month period ended 30 September 2004 on continuing operationsshow a profit before tax of ‚£4,086,000. After charging a loss on discontinuedoperations of ‚£14,786,000, the loss before tax for the eighteen months amountsto ‚£10,700,000. For the twelve months to 30 September 2004, the profit beforetax from continuing operations was ‚£2,689,000 (twelve months to 30 September2003: ‚£2,473,000).Overall, InvestinMedia performed in line with expectations for the period,thanks to another strong set of results from its investment in Complete andMedal Entertainment & Media plc ("MEM"), which are the focus of the group atpresent.Complete, owner of the worldwide rights to 'Who Wants To Be A Millionaire?' and'You Are What You Eat' continues to invest for the long-term development of itsbusiness mainly through its subsidiaries. Celador Productions has severaltelevision programmes that are scheduled to be broadcast in the UK in the nexttwelve months and Celador International has signed a number of new licensingpartnerships in the past few months which Complete believes will bringincreased rewards from 2006 onwards. Complete's film division will see therelease of its second film, 'Separate Lives', a partnership with DNA Films Ltdearly this year and a third film is currently in production with a releaseplanned later in 2005. Complete has also established Celador RadioBroadcasting, a joint venture with UBC Media Group plc. The creation of thiscompany coincided with Ofcom's advertising of new FM licences. Althoughunsuccessful with its application in respect of Edinburgh, Celador RadioBroadcasting has submitted an application for Belfast and plans to submitfurther applications during 2005. It is anticipated therefore that overall 2005will be a year of investment for Complete.MEM, an AIM quoted media company, published its Interim Announcement for thesix months to 30 September 2004, on 16 December 2004. Its Chairman commented"We have continued to develop the range of services offered by the Group andhave focused on our core activities. Overall, the Group has performedsatisfactorily during the period, particularly given a quiet tradingenvironment for our television studio in the first half. We have also now putin place a solid foundation for developing a low risk approach to televisionprogramme production. In the current period the Group is trading strongly andwe are making considerable progress in attaining our goal of being a mediaGroup that can originate, produce, publish and distribute programmes fortelevision and home entertainment." He also commented "The second half of theyear has started very well and I am confident that the current levels ofbusiness being generated will ensure a highly satisfactory outcome for thecurrent year."Your Board views the future of your company and both our associate companyinvestments with confidence. The board is proposing paying a final dividend of3.5 pence per share on 6 April 2005, which together with the interim dividendwill make a total for the period to 30 September 2004 of 5.5 pence per share.Richard Murray, Chairman11 January 2005Consolidated profit and loss account For the eighteen months ended For the twelve months ended 30 September 2004 31 March 2003 Continuing Discontinued Total Continuing Discontinued Total ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Group and share of 28,743 46,242 74,985 21,282 59,835 81,117associates' turnover Less: Share of (28,293) - (28,293) (20,982) - (20,982)associates' turnover Group turnover 450 46,242 46,692 300 59,835 60,135 Cost of sales - (29,705) (29,705) - (38,849) (38,849) Gross profit 450 16,537 16,987 300 20,986 21,286 Distribution costs - (2,422) (2,422) - (3,150) (3,150) Administrative (393) (20,416) (20,809) (300) (24,339) (24,639)expenses Group operating 57 (6,301) (6,244) - (6,503) (6,503)profit / (loss) Share of associates' 3,653 - 3,653 2,687 - 2,687operating profit Group and share of 3,710 (6,301) (2,591) 2,687 (6,503) (3,816)associates' operating profit / (loss) Loss on demerger - (7,722) (7,722) - - - (Loss) / profit on - (235) (235) - 1,061 1,061disposal of operations Profit / (loss) on 3,710 (14,258) (10,548) 2,687 (5,442) (2,755)ordinary activities before interest and taxation Net interest 376 (528) (152) 224 (621) (397)receivable / (payable) Profit / (loss) on 4,086 (14,786) (10,700) 2,911 (6,063) (3,152)ordinary activities before taxation Taxation on ordinary (1,281) (20) (1,301) (909) 285 (624)activities Profit / (loss) on 2,805 (14,806) (12,001) 2,002 (5,778) (3,776)ordinary activities after taxation Equity minority - 75 75 - 20 20interest Profit / (loss) for 2,805 (14,731) (11,926) 2,002 (5,758) (3,756)the period Dividends (897) - (897) (816) - (816) Retained profit / 1,908 (14,731) (12,823) 1,186 (5,758) (4,572)(loss) for the financial period Earnings / (loss) per share - Basic 17.2p (90.3p) (73.1p) 12.3p (35.3p) (23.0p) Diluted 17.0p (90.3p) (73.1p) 12.3p (35.3p) (23.0p) Dividends per share 5.5p 5.5p 5.0p 5.0pConsolidated Balance sheet 30 September 31 March 2003 2004 ‚£'000 ‚£'000 Intangible assets - 4,998 Tangible assets - 28,141 Investments in associates 5,468 4,067 Other investments - 1,472 Fixed assets 5,468 38,678 Stocks - 698 Debtors 767 12,402 Cash at bank and in hand 2,030 1,301 Current assets 2,797 14,401 Creditors: amounts falling due (641) (17,360)within one year Net current assets / (liabilities) 2,156 (2,959) Total assets less current 7,624 35,719liabilities Creditors: amounts falling due - (5,134)after more than one year Net assets 7,624 30,585 Capital and reserves Called up share capital 1,632 1,632 Share premium account 12,489 31,269 Profit and loss account (6,497) (2,316) Equity shareholders' funds 7,624 30,585Consolidated cash flow statement for the eighteen for the twelve months ended months ended 30 September 2004 31 March 2003 ‚£'000 ‚£'000 Net cash flow from 5,512 11,480operating activities Dividends from associate 2,784 1,514 Interest received 39 54 Interest paid (312) (295) Interest element of hire (220) (378)purchase payments Returns on investments (493) (619)and servicing of finance Taxation 76 831 Net cash flow before 7,879 13,206capital expenditure Purchase of tangible (5,540) (11,554)assets Sale of tangible assets 2,581 3,781 Capital expenditure (2,959) (7,773) Acquisition of - (106)subsidiaries and businesses Disposal of subsidiaries (166) 4,897and businesses Net overdraft disposed of 1,582 238with subsidiaries Acquisitions and 1,416 5,029disposals Equity dividends paid (1,141) (2,120) Net cash flow before 5,195 8,342financing Issue of shares in - 20subsidiaries to minority interests Change in bank loans 1,033 (5,922) Change in hire purchase (3,792) (2,329)obligations Financing (2,759) (8,231) Change in cash in the 2,436 111period Closing net funds / 2,030 (10,279)(debt) Consolidated statement of total recognised gains and losses for the eighteen for the twelve months months ended ended 30 September 2004 31 March 2003 ‚£'000 ‚£'000 Loss for the period (11,926) (3,756) Currency translation differences - (39)before taxation Total recognised gains and (11,926) (3,795)losses relating to the period Consolidated reconciliation of movements in equity shareholders' funds for the eighteen for the twelve months ended months ended 30 September 2004 31 March 2003 ‚£'000 ‚£'000 Loss for the period (11,926) (3,756) Dividends (897) (816) Retained loss for the financial (12,823) (4,572)period Goodwill previously eliminated 8,642 -against reserves Reduction in Share Capital (18,780) - Currency translation - (39)differences Net reduction in equity (22,961) (4,611)shareholders' funds Opening equity shareholders' 30,585 35,196funds Closing equity shareholders' 7,624 30,585funds Notes to the preliminary announcement for the eighteen months ended 30September 20041 Status of preliminary announcementThe preliminary announcement does not amount to full accounts within themeaning of section 240 of the Companies Act 1985.The contents of the preliminary announcement have been extracted from theaudited financial statements of the company for the year ended 30 September2004, which will be filed with the Registrar of Companies. The audit report onthese financial statements is unqualified and does not contain a statementunder Section 237(2) or (3) of the Companies Act 1985.2 AssociatesOur share of the earnings of our associates is made up of:CompleteThe Group owns 100% of the A ordinary shares which gives the Group a 49%economic interest in Complete together with 49% of the voting rights. The Groupshare of the results of Complete was as follows: for the eighteen for the twelve months ended months ended 30 September 2004 31 March 2003 ‚£'000 ‚£'000 Turnover 24,563 20,982 Operating profit 3,433 2,687 Profit on ordinary activities before 3,433 2,687interest and taxation Net interest receivable and similar 437 224items Profit on ordinary activities before 3,870 2,911taxation Taxation on profit on ordinary (1,292) (909)activities Profit on ordinary activities after 2,578 2,002taxation MEMFollowing announcements made by MEM in early April 2003 regarding changes inmanagement and the development of the organic growth strategy at MEM, thedirectors have reviewed the status of this investment. As the directorsconsider the objectives of MEM to be more closely aligned with those of theGroup, they have decided to retain the investment for the long term and havedirected the Chairman of InvestinMedia plc, who has had a seat on the MEM Boardfrom October 2001, to become more actively involved in the affairs of MEM onbehalf of the Group. The Group increased its holding in MEM through theexercise of the warrants, following changes in their terms, on 17 April 2003 to2,517,943 shares, representing 23.7% of the enlarged share capital of MEM. Thedirectors decided that it was appropriate to treat the investment as anassociated undertaking from the date of these changes. As a result of theenlargement of MEM's Share Capital on 15 March 2004, the Group now owns 16.7%of the ordinary shares in MEM. The market value of this investment at 30September 2004 was ‚£2.08 million (31 March 2003 ‚£1.54 million). The Group shareof the results of MEM was as follows: for the eighteen months ended 30 September 2004 ‚£'000 Turnover 3,730 Operating profit 220 Profit on ordinary activities before 220interest and taxation Net interest payable (96) Profit on ordinary activities before 124taxation Taxation on profit on ordinary activities 11 Profit on ordinary activities after 135taxation 3 DemergerOn 18 February 2004 the Group demerged the entire issued share capitals ofAvesco Finance Limited, Avesco Group plc, Creative Technology Limited, ActionSAM, Creative Technology Outside Broadcast Limited, Media Control (UK) Limited,CT Germany Limited and Avesco Overseas Limited to New Avesco plc (companynumber 4982392) these have been treated as discontinued operationsNet assets disposed of on demerger ‚£'000 Intangible fixed assets 3,080 Tangible fixed assets 23,536 Stocks 1,018 Debtors 11,018 Bank overdraft (1,582) Bank loans (4,019) Hire purchase (4,783) Creditors: amounts falling due within one year (10,408) 17,860 Goodwill previously eliminated against reserves 8,642 Loss on disposal (7,722) 18,780 Satisfied by 18,780 Cancellation of "A" Shares The turnover and operating loss to the date of demerger were ‚£46,242,000 and ‚£6,301,000 respectively (year ended 31 March 2003: turnover ‚£59,835,000 andoperating loss ‚£6,503,000).4 Earnings per shareBasic earnings per share (`EPS') have been calculated by dividing earnings(profit/(loss) after taxation and minority interests) by the weighted averagenumber of ordinary shares in issue during the period. for the eighteen months for the twelve months ended ended 30 September 2004 31 March 2003 Weighted average number of shares Number Number For basic earnings per 16,316,297 16,316,297share Effect of dilutive share 240,455 -options For diluted earnings per 16,556,752 16,316,297share 5 DividendsThe directors recommend payment of a final dividend for the period ended 30September 2004 of 3.5 pence per ordinary share to be paid on 6 April 2005 toshareholders on the Register on 7 March 2005, making a total dividend for theperiod of 5.5 pence per ordinary share (2003: 5.0 pence).For further information, please contact:Richard Murray, ChairmanCameron Maxwell, Executive DirectorInvestinMedia plcTel: 0207 588 7352END