BONH.L Regulatory News (BONH)

5 Jul 2007 07:00

Vitesse Media PLC05 July 2007 Date: 5 July 2007On behalf of: Vitesse Media plc ("Vitesse", the "Company" or the "Group")Embargoed until: 0700hrs Vitesse Media plcPreliminary Results 2007 Vitesse Media plc (AIM: VIS), the publishing, events and multimedia company,today announced its preliminary results for the year ended 6 February 2007. Highlights • Revenues up nearly 40% to £3.3 million (2005/6: £2.3 million) of which digital revenues, up 60%, account for 19%• Significant progress towards breakeven as losses for 2006/7 nearly halved to £0.3 million (2005/6: £0.6 million)• Acquisitions of M&A Magazine and What Investment successfully completed. Digital extension of M&A and new events around the M&A brand launched• Unaudited first quarter results for 2007/8 show revenues of £1.2 million and a profit of £0.03 million (first quarter 2006/7: Revenues of £0.6 million and losses of £0.08 million) Commenting on the results, Sara Williams, Chairman of Vitesse Media plc, said: "During the past year, our core businesses - events and digital offering - havemade good progress. Our recent acquisitions of the What Investment and M&Abrands have been successfully integrated into the Group and are performing inline with expectations. "The Group's prospects going forward are looking very positive, in particularthe scope for improving and expanding our existing digital presence andproducts. We look forward to continued growth and are excited by theopportunities we are seeing in the market." Enquiries: Sara Williams www.vitessemedia.comVitesse Media Plc Via Redleaf Communications Emma Kane/Sanna LehtinenRedleaf Communications Ltd Tel: 020 7822 0200 Chairman's Statement Introduction It is my pleasure to report on a year of strong growth, both in terms of theorganic growth and our acquisition of two further strong brands to the VitesseMedia stable - What Investment and M&A Magazine. Our strategy of creating theleading multi-platform media business is working. Today we boast an array ofmarket leading magazines, websites and events for CEOs, investors and advisers. Our websites: include SmallBusiness.co.uk, GrowthBusiness.co.uk, GrowthCompany.co.uk, WhatInvestment.co.uk and MandAdeals.co.uk Our magazines: include Business XL, Growth Company Investor, M&A and What Investment Vitesse Events: produce the Quoted Company Awards, Investor All Stars, Growth Cycle Seminars, Media & Money and the Growth Company Investor Show. As a result, every month, Vitesse Media reaches a targeted audience of around450,000 people, consisting of CEOs, entrepreneurs, professional advisers,venture capitalists and other investors, both institutional and private. Financials The improved performance of the Group, demonstrated during the last financialyear was driven by burgeoning growth in revenues attributed to our brandedevents and our digital assets. Our strategy continues to focus on growing ourown intellectual property base; all our revenues derive from our own brandedassets with a negligible amount arising from the management of other people'sevents and zero from contract publishing. By the year-end, the business was showing strong financial progress. Revenueswere up 39% from 2005/6, with the ongoing operations increasing by 16% (27%excluding event management). Digital revenues had increased by 60%. During the year, the gross profit margin increased from 54% to 65% (61% forongoing operations). Overhead costs have been reduced from 80% to 74% ofrevenue. Acquisitions Our acquisition policy continued to gather pace and during the year we purchasedtwo strong brands, M&A and What Investment, both of which have considerablepotential for event and digital brand extensions. These acquisitions were fundedby the issue of new equity which enabled us to introduce two new institutionalshareholders, Octopus and Brewin Dolphin, who join Artemis on the shareholderregister. We are very pleased that our activities are beginning to attract aninstitutional following. Current Trading & Outlook The financial year 2007/8 has got off to an excellent start with the business inprofit for each month in the first quarter, though this will be reversed duringthe second quarter due to this being a traditionally slower period and theGroup's decision to provide for a potential £50,000 bad debt. In the first months of the current year, we have been particularly pleased withthe performance of our digital assets and the launch of the first ever M&AAwards which were all well ahead of budget. The integration of What Investmentmagazine has also gone very smoothly, delivering gross profits ahead ofexpectations. Plans are now well underway to redesign WhatInvestment.co.uk toincrease online revenues further and to extend the brand into events. To illustrate the evolving nature of our cross platform media business, weexpect the revenue split for 2007/8 to approximate as follows: - digital revenues 20%- event sponsorship and delegate sales 30%- print advertising 35%- product sales, research and subscriptions 15% The proportion of revenues coming from print advertising has significantlyincreased as a result of the acquisitions of M&A and What Investment. Theexploitation of these brands through digital and event extensions will driveoverall revenues higher and increase the percentage of revenue coming from theseareas of the business. Vitesse Media now owns five well-known brands. Revenues for 2007/8 are expectedto be derived as follows (approximately): - Growth Company Investor/GrowthCompany.co.uk 30%- Business XL/GrowthBusiness.co.uk 25%- SmallBusiness.co.uk 10%- M&A/MAndADeals.co.uk 18%- What Investment/WhatInvestment.co.uk 17% With our proven track record in identifying and integrating new brands withinthe Group, we intend to continue to pursue our acquisition policy to build astrong base in B2B media. There is an exciting consolidation opportunity inthis area for a cross-platform media business such as Vitesse Media and weintend to devote further management time in 2007/8 to exploit this. We arecurrently negotiating with several potential acquisition targets and areconfident that we will be adding to our stable over the coming months. The Group's prospects going forward are looking positive, especially given theacquisitive nature of our operations and the scope for improving and expandingour existing digital presence and products. We look forward to the year aheadwith confidence and excitement. Sara WilliamsChairman and Chief Executive5 July 2007 CONSOLIDATED PROFIT & LOSS ACCOUNTFor the year ended 6 February 2007 Existing Total Operations Acquisitions Total 2006 2007 2007 2007 (Restated) £ £ £ £ TURNOVER 2,726,320 538,792 3,265,112 2,347,450 Cost of sales (1,048,107) (100,504) (1,148,611) (1,072,181) GROSS PROFIT 1,678,213 438,288 2,116,501 1,275,269 Administrative expense (1,996,147) (450,984) (2,447,131) (1,902,253) OPERATING LOSS (317,934) (12,696) (330,630) (626,984) Interest receivable 1,436 13,399Interest payable and similar charges (10,434) (3,702) LOSS ON ORDINARY ACTIVITIES BEFORETAXATION (339,628) (617,287) Taxation - - LOSS ON ORDINARY ACTIVITIES AFTERTAXATION (339,628) (617,287) LOSS PER SHAREBasic and diluted (1.95p) (3.97p) The operating loss for the year arises from the group's continuing activities. CONSOLIDATED BALANCE SHEETFor the year ended 6 February 2007 2007 2006 £ £ FIXED ASSETSIntangible assets 1,469,278 381,644Tangible assets 241,314 173,336 1,710,592 554,980 CURRENT ASSETSDebtors 693,180 368,020Cash at bank and in hand 173,525 465,452 866,705 833,472 CREDITORS: Amounts falling due within one year (1,520,901) (1,059,882) NET CURRENT (LIABILITIES)/ASSETS (654,196) (226,410) TOTAL ASSETS LESS CURRENT LIABILITIES 1,056,396 583,258 CREDITORS: Amounts falling due after more than one year (80,865) (31,056) NET ASSETS 975,531 297,514 CAPITAL AND RESERVESCalled up share capital 2,090,891 1,594,750Share premium account 1,844,929 1,333,437Share option reserve 32,031 22,019Other reserves 103,904 103,904Profit and loss account (3,096,224) (2,756,596) EQUITY SHAREHOLDERS' FUNDS 975,531 297,514 CONSOLIDATED CASH FLOW STATEMENTFor the year ended 6 February 2007 2007 2006 £ £ Cash flow from operating activities (192,479) (354,946) Returns on investments and servicing of finance (8,998) 9,697 Capital expenditure (719,360) (70,857) Acquisitions (424,827) - CASH INFLOW/(OUTFLOW) BEFORE USE OF LIQUID RESOURCES AND (1,345,664) (416,106)FINANCING Management of liquid resources 154,205 367,065 Financing 1,053,737 165,449 (DECREASE )/INCREASE IN CASH IN THE YEAR (137,722) 116,408 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS 2007 2006 £ £ Increase (decrease) in cash in the year (137,722) 116,408 Cash outflow from decrease in debt and lease financing (46,104) 34,550 Cash outflow/(inflow) from change in liquid resources (154,205) (367,065) Change in net funds arising from cash flows (338,031) (216,107) New hire purchase contract (60,172) (49,595) MOVEMENT IN NET FUNDS IN YEAR (398,203) (265,702) NET FUNDS AT 1 FEBRUARY 2006 416,553 682,255 NET FUNDS AT 31 JANUARY 2007 18,350 416,553 NOTES For the year ended 6 February 2007 1. The financial information contained in this document does not constitutestatutory accounts within the meaning of section 240 Companies Act 1985. Thefigures for the year ended 6 February 2007 have been extracted from the annualaccounts in respect of which the auditors have not yet signed their auditreport. The audited statutory accounts for the year ended 31 January 2006 havebeen extracted from the audited statutory accounts for that year which have beenfiled with the Registrar of Companies and received an unqualified auditors'report which did not contain a statement under section 237(2) or (3) CompaniesAct 1985. Statutory accounts for the year ended 31 January have been restatedin line with the reporting requirements of FRS20. 2. The accounting policies adopted are consistent with those used inprevious years. The financial year for 2006/7 has been extended to 6 February to incorporate theacquisition of What Investment. 3. EARNINGS/LOSS PER SHARE LOSS PER SHARE The calculation of loss per share is based on the following losses and numbers of shares. 2007 2006 £ £ Loss for the financial year (339,628) (617,287) Weighted average number of shares 2007 2006 No No For basic and diluted loss per shares 17,429,667 15,539,340 The calculation of loss per share is based on the following losses andnumbers of shares. 4. SHARE CAPITAL SHARE CAPITAL 2007 2006 £ £Authorised:25,000,000 ordinary shares of 10p each 2,500,000 2,000,000 Allotted, issued and fully paid:20,908,914 (2006: 15,947,503) ordinary shares of 10p each 2,090,891 1,594,750 £ £ At 1 February 2006 1,594,750 1,513,117Issued in year 496,141 81,633 At 31 January 2007 2,090,891 1,594,750 On 23 May 2006 the company issued 2,173,911 shares by way of a placing at apremium of 13p each for total cash consideration of £500,000 the proceeds ofwhich were used for working capital following the acquisition of M & A DealsLtd. On 6 February 2007 the company issued 2,787,500 shares at a premium of 10p eachfor total cash consideration of £557,500 the proceeds of which were used to fundthe acquisition of What Investment. Issue costs amounting to £49,868 in respect of the above share issues have beencharged to the share premium account. 5. CASH FLOWS CASH FLOWS 2007 2006 £ £a Reconciliation of operating loss to net cash flow from operating activities Operating loss (330,630) (626,984) Amortisation - 2,193 Depreciation 85,747 57,214 Loss on disposal of fixed assets - 8,719 (Increase)/decrease in debtors (325,160) 159,932 Increase in creditors 92,083 70,466 Increase/(decrease) in deferred income 275,469 (37,582) Share option costs 10,012 11,096 Net cash outflow from operating activities (192,479) (354,946) 2007 2006b £ £ Analysis of cash flows for headings netted in the cash flow Returns on investments and servicing of finance Interest received 1,436 13,399 Interest paid (10,434) (3,702) Net cash inflow from returns on investments and servicing of (8,998) 9,697 finance Capital expenditure Purchase of tangible fixed assets (93,553) (70,857) Purchase of intangible fixed assets (625,807) - Net cash outflow from capital expenditure (719,360) (70,857) Acquisitions Purchase of subsidiary undertakings (424,827) - Net cash outflow for acquisitions (424,827) - Financing Bank loans arising on acquisition 61,539 Repayment of long term bank loan - (25,443) Capital element of finance lease contracts (15,435) (9,108) Share issues (net of expenses) 1,007,633 200,000 Net cash inflow from financing 1,053,737 165,449 CASH FLOWS (continued) £ £ At Other non At 1 February cash 31 Januaryc Analysis of net funds 2006 Cash flow changes 2007 £ £ £ £ Cash in hand, at bank 236,247 (137,722) - 98,525 Bank deposits 229,205 (154,205) - 75,000 465,452 (291,927) - 173,525 Change in bank loans - (61,539) - (61,539) Finance lease contracts (48,899) 15,435 (60,172) (93,636) (48,899) (46,104) (60,172) (155,175) Total 416,553 (338,031) (60,172) 18,350 6. This preliminary announcement was approved by the Board on 4 July 2007.Copies of this announcement are available at the office of the company'snominated advisor KBC Peel Hunt at the address below. This information is provided by RNS The company news service from the London Stock Exchange