11 Aug 2017 10:35
11 August 2017
VITESSE MEDIA plc
FINAL RESULTS
Vitesse Media plc ("Vitesse", the "Company" or the "Group") announces its audited final results for the 14-month period ended 31 March 2017 (the "14-month period"), the Company's new financial year end. References in this announcement to the preceding period, being the year ended 31 January 2016, are to the "prior year".
Highlights
· Total Normalised Revenue* increased by 26% in the 14-month period to £2,688k (prior year: £2,130k)
· Events revenue in the 14-month period increased by 45% to £1,263k (prior year: £870k)
· Gross profit margin in the 14-month period reduced to 65% from 70% in the prior year due to higher revenue in the Events division, which generally has slightly lower margins than the traditional media mix of business in Vitesse
· Operating loss before non-recurring costs** in the 14-month period increased to £12k (prior year: £7k)
· The Group's balance sheet has improved over the 14-month period with a strong improvement in cash from operations compared to the position at the prior year end resulting in an underlying reduction in payables and loans
· An impairment of assets has been made during the 14-month period which included the Group's discontinued crowdfunding project, some of the Group's websites (prior to their relaunch) and paper stock.
* Total Normalised Revenue comprises total revenue less non-recurring costs
** Non-recurring costs mainly comprise the impairment of the Group's discontinued crowdfunding project; the impairment of some of the Group's websites (prior to their relaunch); and the write-off of paper stock for the Group's printed magazines
CHAIRMAN'S STATEMENT
Overview of Results
In addition to changing the Company's financial year end, by extending the period by two months to 31 March 2017, we have separately identified non-recurring costs in the income statement thereby seeking to increase transparency. Overall, we have been building on the prior year's success, in particular by launching new events, whilst relaunching all of our websites, which has increased traffic across our sites.
The Board is not recommending payment of a dividend.
Commentary on results
Revenue
The increase in the Group's revenue in the 14-month period compared to the prior year is almost entirely due to the continued focus on, and success of, the Group's Events division. This included positive inaugural events for British Small Business and Tech Leaders Summit together with the continuing success of Women in IT and Investor All Stars. The media business remained relatively flat with a small increase in both lead generation and subscription revenues.
Cost of Sales
Cost of sales in the 14-month period have increased mainly due to the success of the Group's events held throughout the period, including the launch of new events to continue the Group's expansion of this division.
Admin Expenses
During the 14-month period, our admin expenses have included a number of non-recurring costs. Taking this into account, while the pro-rated Admin expenses are up compared to the prior year, as a percentage of revenue they are lower than in the prior year, which we anticipate will be a continuing trend.
Non-Recurring Costs
There were sizeable £176k of non-recurring costs included in admin expenses for the 14-month period. The main components were: the impairment of the Group's discontinued crowdfunding project; the impairment of some of the Group's websites (prior to their relaunch); and the write-off of paper stock for the Group's printed magazines.
The operating loss for the 14-month period was £188,462 (prior year: £195,481).
Current Trading
Trading in the current year to date is in line with the Board's expectations. The Board's strategy has been to focus the Group's resources on the Events division where it sees more opportunities. We intend to continue with this strategy, whilst at the same time we intend to invest in our media businesses, which we believe will improve the Group's performance in what is a changing market.
The business is in a much stronger position than it has been for some time and the Board is confident this will be reflected in the Group's trading performance in the year ahead.
Notice of AGM and publication of Annual Report
The Company's Annual General Meeting is due to be held on 26 September 2017 at 10.00am at the offices of Stephenson Harwood LLP, 1 Finsbury Circus, London EC2R 7SH. The notice of meeting together with the Annual Report & Accounts will be dispatched to shareholders in due course and will be available on the Company's website at www.vitessemedia.com, when published.
A copy of this announcement will be posted today on the Company's website.
For further information, please contact:
Vitesse Media Plc Tel 020 7250 7010
Dave Smith, Non-Executive Chairman
Niki Baker, Chief Executive
Stockdale Securities Limited Tel 020 7601 6100
Tom Griffiths/David Coaten
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 14-month period ended 31 March 2017
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| 2017 £ |
| 2016 £ | ||||
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Normalised | Non-Recurring Costs | Total
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Normalised | Non-Recurring Costs | Total
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Revenue |
| 2,688,433 | (17,340) | 2,671,093 |
| 2,130,235 | - | 2,130,235 |
Cost of sales |
| (946,368) | (15,534) | (961,902) |
| (641,776) | - | (641,776) |
|
| ________ | ________ | ________ |
| ________ | _______ | ________ |
Gross profit |
| 1,742,065 | (32,874) | 1,709,191 |
| 1,488,459 | - | 1,488,459 |
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Administrative expenses |
| (1,753,743) | (143,910) | (1,897,653) |
| (1,495,625) | (188,315) | (1,683,940) |
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| ________ | ________ | ________ |
| ________ | _______ | ________ |
Operating loss |
| (11,678) | (176,784) | (188,462) |
| (7,166) | (188,315) | (195,481) |
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Finance costs |
| (17,098) | - | (17,098) |
| (8,565) | - | (8,565) |
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| ________ | ________ | ________ |
| ________ | ________ | ________ |
Loss before tax |
| (28,776) | (176,784) | (205,560) |
| (15,731) | (188,315) | (204,046) |
Tax |
| - | - | - |
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| - |
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| ________ | ________ | ________ |
| ________ | ________ | ________ |
Loss for the period and total comprehensive income for the period attributable to owners of the parent |
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(28,776) |
(176,784) | (205,560)
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(15,731) |
(188,315) | (204,046)
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Loss per share attributable to the owners of the parent |
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Basic and diluted |
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| (0.32p) |
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| (0.40p) |
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 March 2017
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| 31 March 2017 £ | 31 January 2016 £ |
Non-current assets |
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Goodwill |
| 729,332 | 729,332 |
Other intangible assets |
| 1,358,659 | 1,369,486 |
Property, plant and equipment |
| 7,386 | 1,121 |
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| ________ | ________ |
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| 2,095,377 | 2,099,939 |
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| ________ | ________ |
Current assets |
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Inventories |
| - | 15,533 |
Trade and other receivables |
| 381,848 | 409,384 |
Cash and cash equivalents |
| 116,000 | 77,411 |
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| ________ | ________ |
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| 497,848 | 502,328 |
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| ________ | ________ |
Total assets |
| 2,593,225 | 2,602,267 |
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| ________ | ________ |
Equity |
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Share capital |
| 2,949,957 | 2,811,068 |
Share premium account |
| 3,368,921 | 3,257,810 |
Share option reserve |
| 117,786 | 117,786 |
Other reserves |
| 103,904 | 103,904 |
Retained earnings |
| (5,071,999) | (4,866,439) |
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| ________ | ________ |
Total equity attribUtable to OWNERS OF THE PARENT |
| 1,468,569 | 1,424,129 |
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CURRENT LIABILITIES Trade and other payables |
| 976,667 | 724,478 |
Borrowings |
| 147,989 | 453,660 |
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| ________ | ________ |
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| 1,124,656 | 1,178,138 |
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| ________ | ________ |
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Total liabilities |
| 1,124,656 | 1,178,138 |
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| ________ | ________ |
Total equity and liabilities |
| 2,593,225 | 2,602,267 |
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| ________ | ________ |
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CONSOLIDATED STATEMENT OF CASH FLOWS
For the 14-month period ended 31 March 2017
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| 2017 | 2016 |
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| £ | £ |
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CASH FLOWS USED IN OPERATIONS |
| 210,882 | 37,773 |
Interest paid |
| (17,098) | (8,565) |
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| ------- | ------- |
NET CASH GENERATED FROM OPERATING ACTIVITIES |
| 193,784 | 29,208 |
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| ------- | ------- |
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INVESTING ACTIVITIES |
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Purchases of property, plant and equipment |
| (9,961) | - |
Purchases of intangible assets |
| (89,563) | (40,794) |
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| ______ | ______ |
NET CASH USED IN INVESTING ACTIVITIES |
| (99,524) | (40,794) |
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| ______ | ______ |
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FINANCING ACTIVITIES |
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Proceeds from issue of ordinary shares |
| 250,000 | - |
Proceeds from short term borrowings |
| - | 40,000 |
Repayment of invoice discounting facility and other borrowings |
| (278,637) | (5,405) |
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| ------ | ------ |
NET CASH (USED IN)/GENERATED FROM FINANCING ACTIVITIES |
| (28,637) | 34,595 |
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| ______ | ______ |
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NET INCREASE IN CASH AND CASH EQUIVALENTS |
| 65,623 | 23,009 |
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CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR |
| 50,377 | 27,368 |
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| _______ | _______ |
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CASH AND CASH EQUIVALENTS AT END OF YEAR |
| 116,000 | 50,377 |
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| ATTRIBUTABLE TO OWNERS OF THE PARENT |
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| Share capital |
Share premium | Share-based payment reserve | Other reserves | Retained earnings | Total | ||
| £ | £ | £ | £ | £ | £ | ||
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As at 31 January 2015 | 2,811,068 | 3,257,810 | 101,127 | 103,904 | (4,662,393) | 1,611,516 | ||
Total comprehensive loss for the year | - | - | - | - | (204,046) | (204,046) | ||
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Recognition of share-based payments | -
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| 16,659
| -
| -
| 16,659
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As at 31 January 2016 | 2,811,068 | 3,257,810 | 117,786 | 103,904 | (4,866,439) | 1,424,129 | ||
Total comprehensive loss for the period | - | - | - | - | (205,560) | (205,560) | ||
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TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS
Issue of share capital |
138,889 | 111,111 | - | - | - | 250,000 | ||
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Total transactions with owners in their capacity as owners | 138,889 | 111,111 | - | - | - | 250,000 | ||
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As at 31 March 2017 | 2,949,957 | 3,368,921 | 117,786 | 103,904 | (5,071,999) | 1,468,569 | ||
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NOTES
1. The audited financial information for the periods ended 31 March 2017 and 31 January 2016 contained in this announcement do not constitute statutory accounts as defined in the Companies Act 2006. The comparative financial information is based on the statutory accounts for the financial year ended 31 January 2016. Those accounts, upon which the auditors issued an unmodified opinion with an emphasis of matter paragraph relating to going concern, have been delivered to the Registrar of Companies. The financial information for the 14-month period ended 31 March 2017 has been extracted from the audited financial statements of Vitesse Media Plc which will be delivered to the Registrar of Companies in due course. The auditors have issued an unmodified opinion on the financial statements for the 14-month period ended 31 March 2017 which did not include reference to any matters to which the auditor drew attention by way of an emphasis of matter paragraph or any statement under Section 498 (2) or (3) of the Companies Act 2006.
2. This announcement was approved by the Board of Directors and authorised for issue on 11 August 2017.
3. The Group prepares its annual consolidated financial statements in accordance with International Financial Reports Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) endorsed by the European Union (EU) and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial information included in this announcement does not include all the disclosures required by IFRS or the Companies Act 2006 and accordingly does not itself comply with IRFS or the Companies Act 2006.