BONH.L Regulatory News (BONH)

6 Oct 2005 07:00

Vitesse Media PLC06 October 2005 VITESSE MEDIA PLC INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JULY 2005 VITESSE MEDIA PLCINTERIM RESULTS; RESIGNATION AND APPOINTMENT OF DIRECTOR Vitesse Media, the AIM-listed events and online and print publisher announcesits results for the six months ended 31 July 2005. Overview: •Underlying sales growth of nearly 50 per cent, succeeding in replacing the revenue lost as a result of the ending by Lloyds TSB of the contract for the Small Business Guide and Tax Guide •The Small Business Guide will be published as the FT Guide to Business Start Up in November and it is expected that the Tax Guide will be published next year as the FT Guide to Personal Tax •Heavy investment in products including profitable launch of two new events in the six months. The outlook for the Growth Company Investor Show looks particularly promising in future years •Redesign and relaunch of three websites, which has greatly improved traffic flows and revenue-generating potential •Our multi-platform proposition is beginning to attract larger corporates •Positive indicator with the level of deferred income up 17 per cent to £406k (39 per cent over the year end) •Cash balance at 31 July over £400k •Event revenues for the full year are estimated to account for almost 50 per cent of group turnover (36 per cent in the half year) •Search for consolidation opportunities continues and we remain committed to growing by acquisition as well as organically. Chairman's Statement This has been a period of heavy investment in existing and new products, thefruits of which we expect to show through over the next two years. I am verypleased that our hard work has meant we have been able to replace the revenuelost as a result of Lloyds TSB's discontinuance of their sponsorship of theSmall Business Guide and Tax Guide and, indeed, the underlying sales growth hasbeen 49 per cent. This is a particular achievement as the trading background forthe interim period has been decidedly mixed, especially on the advertising side,both print and online. We were unable to agree terms on a reverse acquisition earlier this year but weremain committed to growth by acquisition as well as organically. Outlook Trading performance for the second half of the year will show a considerableimprovement compared to the first half. We run two major profitable awardsevents during this period, Investor AllStars and Quoted Company Awards. On theadvertising front, from our experience in the second half so far, tradingappears to have picked up somewhat and, indeed, the September issue of BusinessXL achieved a new high in revenues. The company holds a commanding presence in AIM and the unquoted growing companysector and we remain confident that the business will continue to grow andrevert to profitability. The full benefits of all our investment ininfrastructure and new products made in the first six months will show throughprofitably in future financial years. The Board Nicky Brookes, who has served Vitesse Media loyally and well as FinanceDirector, has decided to leave the company to pursue her other interests and isresigning from the Board as of 6 October, 2005. She will continue to work withthe company for a short time to ensure an orderly handover. We thank her for herwork. We are welcoming Clive Hall, the former Group Finance Director of LGC Group, asour new Finance and Operations Director as of 6 October, 2005. Consolidated profit and loss accountfor the six months ended 31 July 2005 Unaudited Unaudited Audited 6 months ended 6 months ended 12months ended 31 July 2005 31 July 2004 31January 2005 £'000s £'000s £'000sTURNOVER - continuing operations 1,037 697 1,925- discontinued Lloydscontracts - 346 362 ------------ ----------- ----------- 1,037 1,043 2,287 Cost of sales (486) (341) (796) ------------ ----------- ----------- Gross profit 551 702 1,491 Administrative expenses- exceptional (impairmentadjustment) - - (433)- exceptional (abortiveacquisition costs) (28) - -- other (903) (691) (1,480) ------------ ----------- ----------- OPERATING (LOSS)/PROFIT (380) 11 (422)Interest receivable andsimilar income 8 3 9Interest payable andsimilar changes (1) (2) (4) (LOSS)/PROFIT ON ORDINARYACTIVITIES BEFORE TAXATION (373) 12 (417)Taxation - - - (LOSS)/PROFIT ON ORDINARYACTIVITIES AFTER TAXATION (373) 12 (417) ============ =========== =========== EARNINGS/(LOSS) PER SHARE Basic (2.47p) 0.09p (3.08p)Diluted (2.47p) 0.08p (3.08p) Consolidated Balance Sheetas at 31 July 2005 Unaudited Unaudited Audited 31 July 2005 31 July 2004 31 January 2005 £'000s £'000s £'000sFIXED ASSETS Intangible assets 384 728 384Tangible assets 153 80 119 ------------ ----------- ----------- 537 808 503 ------------ ----------- ----------- CURRENT ASSETS Debtors 547 532 528Cash at bank and in hand 404 184 716 ------------ ----------- ----------- 951 716 1,244 CREDITORS: Amounts falling duewithin one year (746) (529) (745) ------------ ----------- ----------- NET CURRENT ASSETS 205 187 499 ------------ ----------- ----------- TOTAL ASSETS LESS CURRENTLIABILITIES 742 995 1,002 CREDITORS: Amounts falling dueafter more than one year (5) (14) (6) DEFERRED INCOME (406) (346) (292) NET ASSETS 331 635 704 ============ =========== =========== CAPITAL AND RESERVESCalled up share capital 1,513 1,304 1,513Share premium account 1,215 927 1,215Other reserves 104 104 104Profit and loss account (2,501) (1,700) (2,128) ------------ ----------- -----------EQUITY SHAREHOLDERS' FUNDS 331 635 704 ============ =========== =========== Consolidated cash flow statementfor the six months ended 31 July 2005 Unaudited Unaudited Audited 6 months ended 6 months ended 12 months ended 31 July 2005 31 July 2004 31 January 2005 £'000s £'000s £'000s Cash flow from operatingactivities (242) (36) 144Returns on investments andservicing of finance 7 1 6Capital expenditure (57) (18) (61)Acquisitions - (64) (149) ------------ ----------- ----------- CASH OUTFLOW BEFORE USE OFLIQUID RESOURCES ANDFINANCING (292) (117) (60)Management of liquidresources 336 110 (347)Financing (20) (11) 464 ------------ ----------- ----------- INCREASE/(DECREASE) INCASH IN THE PERIOD 24 (18) 57 ============ =========== =========== RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Unaudited Unaudited Audited 6 months ended 6 months ended 12 months ended 31 July 2005 31 July 2004 31 January 2005 £'000s £'000s £'000s Increase/(decrease) incash in the period 24 (18) 57Cash outflow from decreasein debt and leasefinancing 20 18 39 Cash outflow/(inflow) fromchange in liquid resources (336) (110) 347 ------------ ----------- ----------- CHANGE IN NET fundsresulting from cash flows (292) (110) 443 New hire purchase contract - (11) (11) ------------ ----------- ----------- MOVEMENT IN NET funds INPERIOD (292) (121) 432 OPENING NET FUNDS 682 250 250 ------------ ----------- ----------- CLOSING NET FUNDS 390 129 682 ============ =========== =========== Notes to the Financial Statementsfor the six months ended 31 July 2005 Notes: 1. The financial information for each of the six month periods to 31 July isunaudited and does not constitute statutory accounts within the meaning of theCompanies Act 1985. The financial information for the period ended 31 January2005 has been extracted from the Group's statutory accounts for that year. Thesecontained an unqualified audit report which did not contain a statement undersection 237 (2) or (3) Companies Act 1985 and have been filed with the Registrarof Companies. 2. The basic loss per share of (2.47p) (six months to 31 July 2004 - 0.09p) isbased on the loss for the period, divided by the weighted average number ofordinary shares in issue of 15,131,177 (6 months to 31 July 2004 -13,035,822).The share options are non-dilutive for the 6-month period to 31 July 2005. Inaddition to the basic and diluted loss per share shown on the face of the Profitand Loss Account, the basic and diluted loss before exceptional administrativeexpenses are shown below. Unaudited Unaudited Audited 6 months ended 6 months ended 12 months ended 31 July 2005 31 July 2004 31 January 2005 £'000s £'000s £'000s Basic before exceptionaladministrative expenses (2.28p) 0.09p 0.12p Diluted beforeexceptionaladministrative expenses (2.28p) 0.08p 0.12p 3. The accounting policies remain unchanged from those set out in the group'sstatutory accounts for the year ended 31 January 2005. 4. The interim financial statements were approved by the Board on 5 October2005. 5. Copies of the interim statement will be sent to Shareholders on 6 October.Further copies will be available from the Company's nominated adviser KBC PeelHunt (4th Floor, 111 Old Broad Street, London, EC2N 1PH). This information is provided by RNS The company news service from the London Stock Exchange