BONH.L Regulatory News (BONH)

Vitesse Media Plc

("Vitesse" or the "Company")

Interim results for the six months ended 31st July 2011

The Board of Vitesse Media Plc (AIM: VIS), the media, events and research company, today announces its interim results for the six months ending 31 July 2011. 

Highlights 

·; Pre-tax profit* of £5k (H1 2010/11: £39k) in line with management expectations, the sixth successive accounting period in which the business has remained profitable

·; Gross margin improved 50 basis points to 70.5%, as costs are reduced through transition from print to digital delivery

·; Balance sheet strengthened again compared to the year end

·; Digital now accounts for 41.5% of turnover (H1 2010/11: 39.1%)

·; Two new Apps launched - Information Age and Business XL, with three further launches planned for H2

·; Two new websites expected to be launched in the second half, Vitesse Media Events (www.vitessemediaevents.co.uk) and Vitesse Media Research (www.vitessemediaresearch.co.uk)

·; 6.7% increase in unique users of our web sites in 2011 (Jan - Sept) compared with the same period last year

·; Database investment expected to conclude in the second half, supporting transition from print to digital

·; Strong performance from events business

·; Opportunities for extension of research product identified

*pre-share-option expense

Commenting on the results, Vitesse Media's Chairman, Sara Williams, said: "I am delighted to report that the company has maintained its unbroken trend of six successive half years of profitability. In the half year reported, this has been achieved against a background of accelerated investment in the delivery of our business plan, which has seen increased investment in our common digital media platform, events portfolio and our research activities."

For further information:

Vitesse Media plc

Executive Chairman: Sara Williams 020-7250 7010

Chief executive: Leslie Copeland 020-7250 7014

Westhouse Securities Ltd 020-7601 6100

Tom Price, Martin Davison

Kreab Gavin Anderson

Robert Speed, Janine Brewis 020-7074 1800

Review 

The period started strongly with above budget results for the first two months of the year, but like many other businesses, a slow down occurred beginning in April. This affected all areas of the business in the second half of the interim period, with the exception of Information Age, which continued to perform strongly. 

Costs continue to be tightly controlled, with the switch to digital leading to a reduction in cost of sales and a further small but encouraging improvement in gross margin. Administrative expenses showed a small increase, the bulk of this due to an increase in share-based costs.

During the period we ran several highly successful and profitable events, including the New Energy Awards, Growth Company Awards and M&A Awards.

While Vitesse continues to invest in its products and infrastructure, most of the benefit of this investment has yet to be realised, as projects approach completion of the investment phase.

We continue to deliver against the plan to accelerate the migration to digital delivery, and in particular, have launched new Apps for Information Age and Business XL. We plan to roll out three further Apps, namely What Investment, Growth Company Investor and Small Business, before the financial year-end.

We are revamping a number of websites, including Growth Business, and two new portals to exploit the group's considerable resource of research and events.

During the period revenues driven from digital research analysis for lead development and customer targeting by third parties was increased by 50%. While still small, this is a very encouraging trend reflecting a strategic commitment to develop our digital revenues based on the group's rich research base. We continue to explore and develop ways of developing revenue streams from our digital research resource and identify potential new customers for this resource. 

Strategy

The management has made sustained progress towards the board's long-term objectives of steering the business into high-value areas of the media sector. Implementation of the business plan, as set out in the annual report, continues apace, with an emphasis on the development of the group's higher value revenue streams. This has been supported by continued investment in the integration of the group's databases in order to more effectively exploit the company's wide-ranging rich base of information.

Outlook 

The management remain confident in the long-term future for the business and is continuing to develop the three- and five-year plans designed to grow the business' higher-value revenue streams. 

The investment in database integration to enable better utilisation of its strong customer relationships is a key component of the plan, together with the accelerated switch to digital. Initial market response to our new Apps for Information Age and Business XL is encouraging, with further launches planned. The continued development of digital delivery and a more integrated approach to the development of new markets for our research and data services give us encouragement for the future.

About Vitesse Media plc

We are the leading specialists in growth businesses - entrepreneurs and CEOs, their investors, advisers and suppliers. Vitesse Media offers award-winning publications, fast-growing websites, exciting events and much-acclaimed research. Our flagship titles include SmallBusiness.co.uk, Growth Company Investor, Information Age, GrowthBusiness.co.uk,What Investment, Business XL, M&A Deals.co.uk and TaxGuide.co.uk. Our intention is to grow our business through the development of innovative products and the acquisition of products and businesses in our fragmented b2b space. Vitesse Media plc is quoted on AIM.

Notes to the Interim Results

1. Basis of preparation

These unaudited condensed consolidated interim financial statements are for the six months ended 31 July 2011. They have been prepared in accordance with recognition and measurement principles of International Financial Reporting Standards (IFRS) as adopted by the European Union. This report should be read in conjunction with the annual financial statements for the year ended 31 January 2011, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and International Financial Reporting Interpretations Committee ('IFRIC') Interpretations and the Companies Act 2006, as applicable to companies reporting under IFRS.

The financial information in this interim announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The unaudited interim financial statements were approved by the Board on 22 September 2011.

The comparative financial information for the year ended 31 January 2011 does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The statutory accounts of Vitesse Media plc for the year ended 31 January 2011 have been reported on by the Company's auditor, Baker Tilly UK Audit LLP, and have been delivered to the Registrar of Companies. The report of the auditor was unqualified and did not include a reference to any matters to which the auditor drew attention by way of emphasis of matter. The auditor's report did not contain statements under Section 498(2) or 498(3) of the Companies Act 2006.

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 January 2011.

These financial statements have been prepared under the historical cost convention.

The financial information for the six months ended 31 July 2011 is unaudited.

Nature of operations and general information

Vitesse Media plc and subsidiaries' ('the Group') principal activities include the provision of online, print publishing and events, specialising in growing businesses. The Group provides a network for CEOs and other directors, their investors, advisers and suppliers.

Vitesse Media plc is the Group's ultimate parent company. It is incorporated and domiciled in Great Britain. The address of Vitesse Media plc's registered office is Pellipar House, 1st Floor, 9 Cloak Lane, London EC4R 2RU. Vitesse Media plc's shares are listed on the AIM Market of the London Stock Exchange.

Vitesse Media plc's consolidated interim financial statements are presented in Pounds Sterling (£), which is also the functional currency of the parent company.

2. Segmental information

At the end of the financial year, 31 January 2012, we expect to report our income segments as Business and Investment, dropping the segmental information on online, print and events as no longer being relevant to the management of the business.

3. Earnings/(loss) per share

The calculation of loss per share is based on the following losses and numbers of shares. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has one category of dilutive potential ordinary shares: share options.

4. Dividends

No dividend is proposed for the six months ended 31 July 2011.

5. Copies of Interim Results

Copies of the Interim Results will be available from www.vitessemedia.co.uk and from the Company's registered office, Pellipar House, 1st Floor, 9 Cloak Lane, London EC4R 2RU.