AVS.L Regulatory News (AVS)

24 Jun 2005 06:00

24 June 2005 InvestinMediaplc Interim report and accounts for the six months ended 31 March 2005 Key Statistics The key numbers from our resultsfor the six months ended 31 March are Increase/ 2005 2004 (Decrease) Continuing profit before tax (‚£000') 955 2,099 (1,144) Continuing profit after tax (‚£000') 659 1,528 (869) Our share of associates' profit after tax (‚£000') - Complete Communications Corporation Limited 494 1,070 (576) - Medal Entertainment and Media plc 189 305 (116) EPS Continuing (pence) 4.0 9.4 (5.4) EPS Continuing Diluted (pence) 3.9 9.3 (5.4) Dividend (pence) 2.0 - 2.0 Cash (‚£000') 2,710 1,317 1,393 Chairman's statement I have pleasure in presenting our second interim statement as InvestinMedia. Our investments in our associates, Complete Communications Corporation Limited("Complete ") and Medal Entertainment and Media plc ("MEM") although down onlast year performed in line with our expectations for the six months ended 31March 2005. The reduction in our share of Complete's profits is a result ofthe written off cost of applications for major FM radio licenses which to datehave been unsuccessful and the continuing substantial investment in theinternal development of new programme s and format s the costs of which areexpensed as incurred. MEM, an AIM quoted media company, published itsPreliminary Announcement for the year to 31 March 2005, on 23 June 2005. Complete's "Who Wants To Be A Millionaire?" and "You Are What You Eat",continue to be successful formats at home and overseas with "You Are What YouEat" having already been acquired by eleven overseas broadcasters. Asmentioned in my statement in January this is a year of investment by Completein the development of their business that, as expected, has reduced the profitsshown in our first half. Complete's latest feature film "The Descent" is duefor UKnationwide theatrical release on 8th July and "Separate Lies"the secondfilm is to be released in the USAin October2005. In MEM's preliminary results its Chairman Brook Land commented, "Our strategyremains to develop a group of companies owning, licensing, creating andmarketing audio visual products, rights and facilities. Whilst we would havewished to report a higher level of profitability, the Board feels that theCompany has performed well operationally and progress has been made in layingthe foundations for future growth." He added, "Since the start of the currentyear trading is ahead of the same period last year. Fountain has benefited froma higher level of sales and the Group is also poised to benefit from increasedrevenues from the Television Production Division. DD Home Entertainment iscontinuing to show sales growth and with its broader catalogue and largerdatabase should make further progress this year through both e-commerce andtraditional sources." The InvestinMedia Board continues to view the future of both our associatecompany investments with confidence. The Directors are pleased to declare aninterim dividend of two pence per ordinary share payable on 5 August 2005 toshareholders on the register at 8 July 2005. Richard Murray24 June 2005 Independent review report to InvestinMedia plc IntroductionWe have been instructed by the company, to review the financial information setout below and we have read the other information contained in the interimreport and considered whether it contains any apparent misstatements ormaterial inconsistencies with the financial information. This report, including the conclusion, has been prepared for and only for thecompany for the purpose of their interim report and for no other purpose. Wedo not, therefore in producing this report, accept or assume responsibility forany other purpose or to any other person to whom this report is shown or intowhose hands it may come save where expressly agreed by our prior consent inwriting. Directors' ResponsibilitiesThe interim statement, including the financial information contained therein,is the responsibility of, and has been approved by the directors. The directorsare responsible for preparing the Interim Statement in accordance with the AIMRules which require that the accounting policies and presentation applied tothe interim figures must be consistent with those that will be adopted in thecompany's annual accounts. Review Work PerformedWe conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board as if that Bulletin applied. A reviewconsists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financialdata and based thereon, assessing whether the accounting policies andpresentation have been consistently applied unless otherwise disclosed. Areview excludes audit procedures such as tests of controls and verification ofassets, liabilities and transactions. It is substantially less in scope thanan audit performed in accordance with Auditing Standards and therefore providesa lower level of assurance than an audit. Accordingly we do not express anaudit opinion on the financial information. Review ConclusionOn the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 31 March 2005. BAKER TILLY Chartered Accountants2 Bloomsbury StreetLondon WC1B 3ST 24 June 2005Unaudited consolidated profit and loss account for the six months ended 31March 2005 2004 ‚£'000 ‚£'000 All Continuing Discontinued Total continuing Group and Share of associates' turnover 11,185 10,127 19,252 29,379 Less: Share of associates' turnover (11,135) (9,977) - (9,977) Group turnover 50 150 19,252 19,402 Operating (loss) / profit (76) 9 (3,425) (3,416) Share of associates' operating profit 923 2,022 - 2,022 Group and share of associates' operating profit / (loss) 847 2,031 (3,425) (1,394) Loss on demerger - - (7,722) (7,722) Profit / (loss) on ordinary activities before interest and taxation 847 2,031 (11,147) (9,116) Share of associates' net interest 56 64 - 64 Net interest receivable / (payable) 52 4 (200) (196) Profit / (loss) on ordinary activities before taxation 955 2,099 (11,347) (9,248) Taxation on ordinary activities - Discontinued - - (17) (17) Taxation on ordinary activities - Associates (296) (571) - (571) Profit / (loss) on ordinary activities after taxation 659 1,528 (11,364) (9,836) Equity minority interest- Discontinued - - 77 77 Profit / (loss) for the period 659 1,528 (11,287) (9,759) Dividends (326) - - - Retained profit / (loss) for the financial period 333 1,528 (11,287) (9,759) Earnings / (loss) per share - Basic 4.0p 9.4p (69.2p) (59.8p) - Diluted 3.9p 9.3p (69.2p) (59.8p) Dividend per share 2.0p - - - Audited Consolidated profit and loss account for the Eighteen months ended 30September 2004 '000 Continuing Discontinued Total Group and Share of associates' turnover 28,743 46,242 74,985 Less: Share of associates' turnover (28,293) - (28,293) Group turnover 450 46,242 46,692 Operating profit / (loss) 57 (6,301) (6,244) Share of associates' operating profit 3,653 - 3,653 Group and share of associates' operating profit / (loss) 3,710 (6,301) (2,591) Loss on disposals / demerger - (7,957) (7,957) Profit / (loss) on ordinary activities before interest and taxation 3,710 (14,258) (10,548) Share of associates' net interest 341 - 341 Net interest receivable / (payable) 35 (528) (493) Profit / (loss) on ordinary activities before taxation 4,086 (14,786) (10,700) Taxation on ordinary activities - Discontinued - (20) (20) Taxation on ordinary activities - Associates (1,281) - (1,281) Profit / (loss) on ordinary activities after taxation 2,805 (14,806) (12,001) Equity minority interest- Discontinued - 75 75 Profit / (loss) for the period 2,805 (14,731) (11,926) Dividends (897) - (897) Retained profit / (loss) for the financial period 1,908 (14,731) (12,823) Earnings / (loss) per share - Basic 17.2p (90.3p) (73.1p) - Diluted 17.0p (90.3p) (73.1p) Dividend per share 5.5p - 5.5p Consolidated balance sheet Unaudited Unaudited Audited at 31 March at 31 March at 30 September 2005 2004 2004 ‚£'000 ‚£'000 ‚£'000 Investments in associates 5,711 6,347 5,468 Debtors 525 602 767 Cash 2,710 1,317 2,030 Current assets 3,235 1,919 2,797 Creditors amounts falling due within one year (989) (444) (641) Net current assets 2,246 1,475 2,156 Net assets 7,957 7,822 7,624 Share capital and share premium 14,121 14,121 14,121 Profit and loss account (6,164) (6,299) (6,497) Equity shareholders' funds 7,957 7,822 7,624 Reconciliation of movements in equity shareholders' funds Unaudited Unaudited Audited for the six for the six for the eighteen months months ended ended months ended 31 March 2004 31 March 30 September 2005 2004 ‚£'000 ‚£'000 ‚£'000 Profit / (Loss) for the period 659 (9,759) (11,926) Dividends (326) - (897) Retained Profit / (loss ) for the financial period 333 (9,759) (12,823) Goodwill previously eliminated against reserves - 8,642 8,642 Reduction in Share Capital - (18,780) (18,780) Net increase /(reduction) in equity shareholders' funds 333 (19,897) (22,961) Opening equity shareholders' funds 7,624 27,719 30,585 Closing equity shareholders' funds 7,957 7,822 7,624 Consolidated cash flow statement Unaudited Unaudited Audited for the six for the six for the eighteen months ended months ended months ended 31 March 2005 31 March 2004 30 September 2004 ‚£'000 ‚£'000 ‚£'000 Group operating loss (76) (3,416) (6,244) Depreciation, amortisation and impairment - 5,065 11,315 Change in working capital 265 1,039 441 Net cash flow from operating activities 189 2,688 5,512 Dividends from associates 440 1,124 2,784 Returns on investments and servicing of finance 52 (200) (493) Taxation - 9 76 Net cash flow before capital expenditure 681 3,621 7,879 Purchase of tangible assets - (2,017) (5,540) Sale of tangible assets - 1,639 2,581 Capital expenditure - (378) (2,959) Disposal of subsidiaries and businesses - (166) (166) Net overdraft disposed of with subsidiaries - 1,582 1,582 Acquisitions and disposals - 1,416 1,416 Equity dividends paid (1) (487) (1,141) Net cash flow before financing 680 4,172 5,195 Change in bank loans - (19) 1,033 Change in hire purchase obligations - (1,735) (3,792) Financing - (1,754) (2,759) Change in cash in the period 680 2,418 2,436 Closing net funds 2,710 1,317 2,030 Notes to interim report and accounts 1. Status of interim report and accounts The interim report and accounts, which were approved by the board on 24 June2005, are unaudited but have been reviewed by the auditors and theirindependent review report is set out above. The interim report and accounts arenot full accounts within the meaning of section 240 of the Companies Act 1985.The figures for the period ended 30 September 2004 have been extracted from theaudited annual report and accounts that have been filed with the Registrar ofCompanies. The audit report on that report and accounts was unqualified and didnot contain a statement under Section 237(2) or (3) of the Companies Act 1985. 2. Accounting policies The interim report and accounts have been prepared using the accountingpolicies set out in the report and accounts for the period ended 30 September2004. 3. Associates Our share of the earnings of our for the six for the six for the eighteenassociates months ended months ended months endedis made up of: 31 March 31 March 30 September 2005 2004 2004 ‚£'000 ‚£'000 ‚£'000 Complete Communications Corporation Limited Turnover 9,406 8,208 24,563 Profit for the period 494 1,070 2,578 Dividends declared 440 288 2,784 Retained profit / (loss) for the period 54 782 (206) Medal Entertainment and Media plc Turnover 1,729 1,769 3,730 Profit for the period 189 305 135 Dividends declared - - - Retained Profit for the period 189 305 135 4. Discontinued operations On 18 February 2004, the Group demerged all of its businesses except themanagement of the investment in its associates. The results of those operationshave been classified as discontinued operations in the profit and loss account. 5. Earnings / (Loss) per share Weighted average number for the six for the six for the eighteen of 10p ordinary shares months ended months ended months ended 31 March 2005 31 March 2004 30 September 2004 number number number For basic earnings per share 16,316,297 16,316,297 16,316,297 Effect of dilutive share options 446,713 108,241 240,455 For diluted earnings per share 16,763,010 16,424,538 16,556,752 6. Contingent Liabilities The Company has given indemnities to and received indemnities from certainformer subsidiaries in connection with the Demerger and certain transactionsprior thereto. It is the view of the Directors that such indemnities are notexpected to result in financial loss to the group. 7. Distribution of interim report and accounts Copies of this interim report are being sent to all shareholders and additionalcopies are available from the Company's registered office at 36 Elder Street,London E1 6BT. ENDINVESTINMEDIA PLC