23 Oct 2015 07:00
Vitesse Media Plc
Unaudited interim results for the six months ended 31st July 2015
Comment on the results for the six months to 31 July 2015
Revenue for the six months ended 31 July 2015 of £828k was down on the corresponding prior year period (2014: £1,042k). The principal reasons for this reduction were the elimination of two one-off managed events as the Company decided to concentrate on its own higher margin business and the decision to hold Techinvest Manchester in September 2015 rather than in July. The effect of this change to the events schedule is to shift revenue into the second half. The reduced revenue in the first half resulted in increased pre-tax losses of £125k (2014: £72k), although year-on-year underlying costs were reduced significantly and the gross profit margin improved to 71% (2014: 67%).
Outlook
While there are inevitable challenges ahead, the Board believes that the outlook for the Company remains positive and it is confident that the Company will meet its business and financial objectives for the year.
About Vitesse Media plc
Vitesse Media plc is a leading B2B media business, specialising in technology, SME business and high-net worth investment through events, digital activities, data and research. Our flagship titles include SmallBusiness.co.uk, Growth Company Investor, Information Age, GrowthBusiness.co.uk, and What Investment. We develop innovative products and services, and continually search for further business opportunities in our fragmented B2B space. Vitesse Media plc is quoted on AIM.
For further information:
Vitesse Media plc |
|
Non-Executive Chairman: Chris Ingram | 020 7250 7010 |
CEO: Niki Baker | 020 7250 7010 |
|
|
Westhouse Securities |
|
Tom Griffiths | 020 7601 6100 |
|
|
Kreab |
|
Robert Speed | 020 7074 1800 |
Consolidated statement of comprehensive income
|
|
| ||
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| 6 months ended | 6 months ended | Year ended |
|
| 31 July 2015 | 31 July 2014 | 31 January 2015 |
|
| (unaudited) | (unaudited) | (audited) |
|
| £'000 | £'000 | £'000 |
|
|
|
|
|
Revenue |
| 828 | 1,042 | 2,260 |
|
|
|
|
|
|
|
|
|
|
|
| 828 | 1,042 | 2,260 |
|
|
|
|
|
|
|
|
|
|
Cost of sales |
| (244) | (344) | (736) |
|
|
|
|
|
|
|
|
|
|
Gross profit |
| 584 | 698 | 1,524 |
|
|
|
|
|
Administrative expenses | (706) | (761) | (1,544) | |
|
|
|
|
|
|
|
|
|
|
Operating loss | (122) | (63) | (20) | |
|
|
|
|
|
Finance costs |
| (3) | (9) | (8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before tax | (125) | (72) | (28) | |
|
|
|
|
|
Tax expense |
| - | - | - |
|
|
|
|
|
|
|
|
|
|
Loss for the period attributable | (125) | (72) | (28) | |
to owners of the parent |
|
|
| |
|
|
|
|
|
|
|
|
|
|
Loss per share |
|
|
| |
Basic |
| (0.25p) | (0.14p) | (0.06p) |
Diluted |
| (0.25p) | (0.14p) | (0.06p) |
Consolidated statement of financial position |
|
|
| ||
As at |
|
|
| ||
|
| 31 July 2015 (unaudited) | 31 July 2014 (unaudited) |
31 January 2015 (audited) |
|
|
| £'000 | £'000 | £'000 |
|
ASSETS |
|
|
|
| |
Non-current assets |
|
|
|
| |
Goodwill |
| 739 | 729 | 739 |
|
Other intangible assets |
| 1,529 | 1,414 | 1,465 |
|
Property, plant and equipment |
| 4 | 3 | 4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2,272 | 2,146 | 2,208 |
|
|
|
|
|
|
|
Current assets |
|
|
|
| |
Inventories |
| 16 | 16 | 16 |
|
Trade and other receivables |
| 442 | 341 | 556 |
|
Cash and cash equivalents |
| 117 | 177 | 27 |
|
|
| 575 | 534 | 599 |
|
|
|
|
|
|
|
Total assets | 2,847 | 2,680 | 2,807 |
| |
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
| |
|
|
|
|
|
|
Equity |
|
|
|
| |
Share capital |
| 2,811 | 2,805 | 2,811 |
|
Share premium account |
| 3,258 | 3,239 | 3,258 |
|
Share option reserve |
| 101 | 133 | 101 |
|
Other reserves |
| 104 | 104 | 104 |
|
Retained earnings |
| (4,787) | (4,749) | (4,662) |
|
|
|
|
|
|
|
Total equity attributable to | 1,487 | 1,532 | 1612 |
| |
owners of the parent |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
| |
Trade and other payables |
| 1,010 | 827 | 798 |
|
Borrowings |
| 240 | 211 | 287 |
|
| 1,250 | 1,038 | 1,085 |
| |
|
|
|
|
| |
Non- current liabilities |
|
|
|
| |
Borrowings | 110 | 110 | 110 |
| |
Total liabilities | 1,360 | 1,148 |
1,195 |
| |
|
|
|
|
|
|
Total equity and liabilities | 2,847 | 2,680 | 2,807 |
| |
|
Consolidated statement of cash flows |
|
|
|
|
|
|
| 6 months ended 31 July 2015 | 6 months ended 31 July 2014 | Year ended 31 January 2015 |
|
|
|
| (unaudited) | (unaudited) | (audited) |
|
|
|
| £'000 | £'000 | £'000 |
|
|
| Cash flows from operating activities |
|
|
|
|
|
| Loss before taxation | (125) | (72) | (28) |
|
|
|
|
|
|
|
|
|
| Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
| Finance cost | 3 | 9 | 8 |
|
|
| Amortisation | 18 | 23 | 41 |
|
|
| Depreciation of property, plant and equipment | - | 1 | 1 |
|
|
| Share-based payment charge | - | - | 11 |
|
|
| Operating cash flows before movements | (104) | (39) | 33 |
|
|
| in working capital |
|
|
|
|
|
|
|
|
|
|
|
|
| Decrease/(increase) in inventories | - | - | 1 |
|
|
| (Increase)/decrease in receivables | 114 | (22) | (237) |
|
|
| Increase/(decrease) in payables | 212 | 11 | 6 |
|
|
|
|
|
|
|
|
|
| Cash flows from (used in) operating activities | 222 | (50) | (197) |
|
|
|
|
|
|
|
|
|
| Interest received | - | - | - |
|
|
| Interest paid | (3) | (9) | (8) |
|
|
|
|
|
|
|
|
|
| Net Cash from/(used in) operating activities | 219 | (59) | (205) |
|
|
|
|
|
|
|
|
|
| Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Purchases of property, plant and equipment | - | - | (1) |
|
|
| Purchases of intangible assets | (82) | (70) | (149) |
|
|
|
|
|
|
|
|
|
| Net cash used in investing activities | (82) | (70) | (150) |
|
|
|
|
|
|
|
|
|
| Financing Activities |
|
|
|
|
|
| Proceeds from issue of share capital | - | 56 | 56 |
|
|
| Share issue costs | - | - | - |
|
|
| Short term loan | 40 | 23 | 90 |
|
|
| Drawdown on invoice discounting facility | (87) | - | 9 |
|
|
| Proceeds from long-term borrowings | - | - | - |
|
|
| Net cash (used in)/generated from financing activities | (47) | 79 | 155 |
|
|
|
|
|
|
|
|
|
| Net increase/(decrease) in cash and cash equivalents | 90 | (50) | (200) |
|
|
| Cash and cash equivalents at beginning of period | 27 | 227 | 227 |
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents at end of period | 117 | 177 | 27 |
|
|
Consolidated Statement of Changes in Equity
6 months ended 31 July 2015 | Share capital | Share premium Account | Share options reserve | Other reserves | Retained earnings | Total |
| £ '000 | £ '000 | £ '000 | £ '000 | £ '000 | £ '000 |
ATTRIBUTABLE TO OWNERS OF PARENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 1st February 2015 | 2,811 | 3,258 | 101 | 104 | (4,662) | 1,612 |
|
|
|
|
|
|
|
Profit for the period | - | - | - | - | (125) | (125) |
|
|
|
|
|
|
|
Total comprehensive income for the period | - | - | - | - | (125) | (125) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of share capital | - | - | - | - | - | - |
Issue costs | - | - | - | - | - | - |
|
|
|
|
|
|
|
TOTAL TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS | - | - | - | - | - | - |
|
|
|
|
|
|
|
Recognition of share-based payments | - | - | - | - | - | - |
Share options lapsed | - | - | - | - | - | - |
As at 31 July 2015 | 2,811 | 3,258 | 101 | 104 | (4,787) | 1,487 |
|
|
|
|
|
|
|
12 months ended 31 January 2015
ATTRIBUTABLE TO OWNERS OF PARENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 1 February 2014 | 2,779 | 3,209 | 133 | 104 | (4,677) | 1,548 |
|
|
|
|
|
|
|
Profit for the year | - | - | - | - | (28) | (28) |
|
|
|
|
|
|
|
Total comprehensive income for the period | - | - | - | - | (28) | (28) |
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of share capital | 32 | 49 | - | - | - | 81 |
Issue costs | - | - | - | - | - | - |
|
|
|
|
|
|
|
TOTAL TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS | 32 | 49 | - | - | - | 81 |
|
|
|
|
|
|
|
Recognition of share-based payments | - | - | 11 | - | - | 11 |
Share options lapsed | - | - | (43) | - | 43 | - |
As at 31 January 2015 | 2,811 | 3,258 | 101 | 104 | (4,662) | 1,612 |
6 months ended 31 July 2014
ATTRIBUTABLE TO OWNERS OF PARENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 1st February 2014 | 2,779 | 3,209 | 133 | 104 | (4,677) | 1,548 |
|
|
|
|
|
|
|
Profit for the period | - | - | - | - | (72) | (72) |
|
|
|
|
|
|
|
Total comprehensive income for the period | - | - | - | - | (72) | (72) |
|
|
|
|
|
|
|
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of share capital | 26 | 30 | - | - | - | 56 |
Issue costs | - | - | - | - | - | - |
|
|
|
|
|
|
|
TOTAL TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS | 26 | 30 | - | - | - | 56 |
|
|
|
|
|
|
|
Recognition of share-based payments | - | - | - | - | - | - |
Share options lapsed | - | - | - | - | - | - |
As at 31 July 2014 | 2,805 | 3,239 | 133 | 104 | (4,749) | 1,532 |
Notes to the Interim Results
1. Basis of preparation
These unaudited condensed consolidated interim financial statements are for the six months ended 31 July 2015. 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 2015, 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 22nd October 2015.
The comparative financial information for the year ended 31 January 2015 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 2015 have been reported on by the Company's auditor, Baker Tilly UK Audit LLP, and have been delivered to the Registrar of Companies.
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 2015.
These financial statements have been prepared under the historical cost convention.
The financial information for the six months ended 31 July 2015 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 England. The address of Vitesse Media plc's registered office is 5th Floor, 6 St. Andrew Street, London, EC4A 3AE. Vitesse Media plc's shares are admitted to trading 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
| Events | SME | Investment | Technology | Total |
| £'000 | £'000 | £'000 | £'000 | £'000 |
|
|
|
|
|
|
6 months ended 31 July 2015 |
|
|
|
| |
|
|
|
|
|
|
Segmental revenue - continuing | 215 | 236 | 187
| 190 | 828 |
Total segmental revenue | 215 | 236 | 187 | 190 | 828 |
|
|
|
|
|
|
Segment result | 215 | 236 | 187 | 190 | 828 |
|
|
|
|
|
|
6 months ended 31 July 2014 |
|
|
|
|
|
|
|
|
|
|
|
Segmental revenue - continuing | 325 | 250 | 221 | 246 | 1,042 |
Total segmental revenue | 325 | 250 | 221 | 246 | 1,042 |
|
|
|
|
|
|
Segment result | 325 | 250 | 221 | 246 | 1,042 |
|
|
|
|
|
|
12 months ended 31 January 2015 |
|
|
|
|
|
|
|
|
|
|
|
Segmental revenue - continuing | 733 | 533 | 414 | 580 | 2,260 |
Total segmental revenue | 733 | 533 | 414 | 580 | 2,260 |
|
|
|
|
|
|
Segment result | 733 | 533 | 414 | 580 | 2,260 |
|
|
|
|
|
|
|
|
|
|
|
|
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.
| 6 months to 31 July 2015 (unaudited) | 6 months to 31 July 2014 (unaudited) | Year end 31 January 2015 (audited) |
| £'000 | £'000 | £'000 |
Earnings/(loss) for the period | (125) | (72) | (28) |
| No. | No. | No. |
Weighted average number of shares | 50,672,743 | 49,772,912 | 49,864,444 |
|
|
|
|
4. Dividends
No dividend is proposed for the six months ended 31 July 2015.
5. Copies of Interim Results
Copies of this Interim Results announcement will be available from www.vitessemedia.co.uk.