Last checked at 30 Mar 2012 07:00
Catalyst Media Group Plc
('CMG' or the 'Group')
Interim Results for Six Months Ended 31 December 2011
CMG announces its interim results for the six months ended 31st December 2011
CMG is a 20.54% shareholder in Satellite Information Services (Holdings) Ltd ("SIS") and the results include its share in the profits of SIS as an equity accounted associate.
Financial Highlights for the six months to 31st December 2011
·; CMG profits after taxation of £1.9m (2010: £1.7m), representing an increase of 11% over prior period
·; Earnings per share 6.88p (2010: 6.18p)
·; Dividend of £1.4m received in December 2011
·; Further Dividend of £1.03m received on 29th March 2012
·; Net debt reduced to £nil (2010: £543,339)
·; Net asset value per share of 122p (2010:111p) an increase of 9.9% over prior year
·; SIS revenues of £116m (2010: £110m), an increase of 5.5% over prior period
·; SIS EBITDA of £ 23.4m (2010: £18.9m)
·; SIS profit on ordinary activities before interest and tax of £12.2m (2010: £11.3m), an increase of 8.0% over prior year.
Michael Rosenberg, Chairman of CMG commented:
"Once again we are happy to report that the profits of CMG for the six months period under review show an improvement compared with the same period last year. All CMG debt has now been repaid and with the receipt of a further interim dividend from SIS, the Group now has approximately £1,495,000 in cash."
Enquiries:
Catalyst:
Michael Rosenberg, Non-executive Chairman: 07785 727595
Melvin Lawson, Non-executive Director: 020 7637 8412
Strand Hanson Limited: 020 7409 3494
James Harris
Angela Peace
Chairman's statement
I am pleased to report that for the six months ended 31st December 2011 the Group has generated a net profit after taxation of £1,935,077 (2010 : £1,740,177). Net assets as at 31st December 2011 were £33,725,115 (2010: £31,247,757), with net assets per share of 120 pence per share (2010: 111 pence per share).
During the period under review, the Group received a dividend from SIS of £1,437,000. As a result all indebtedness to the bank was eliminated and as at 31st December 2011, the Group had a cash balance of £519,518. Since that date, SIS has approved a £5m interim dividend in respect of the year ending 31st March 2011 and accordingly, CMG has now received a further £1,027,000. It is SIS's intention to consider a final dividend of a similar scale in respect of the year ending 31st March 2011 later in 2012. Following receipt of the interim dividend, as at 30th March 2012 cash balances of CMG stand at approximately £1,495,000.
SIS
The main asset of the Group remains the 20.54% stake in SIS. CMG equity accounts for its share in the profits of SIS.
The revenues of SIS during the 6 month period to 31st December 2011 totalled £116m including £71m derived from the long established business of providing integrated television and data services to licensed betting offices in the UK, Ireland and overseas.
Revenues of £41m were generated from the business of SISLIVE which provides satellite news gathering and associated transmission services to its customers and also provides outside broadcast television production units including sound support and communication.
Profits before taxation for SIS for the period were £12.6m and after tax were £9.7m.
Services to the betting industry are supported in the main by fixed term contracts both with the retail owners of betting shops and with the racecourses that enable pictures to be delivered to those shops. SIS has agreements in place with Arena Leisure Plc and Northern Racing Limited, combined with other UK courses and all Irish Racetracks. This ensures the supply of images and data from the coverage of horseracing fixtures until 2017. SIS also hold the media rights for all UK Greyhound races. During the period new long term contracts have been entered into by key customers and renewal and extension of the AT THE RACES contract has been secured for seven years
SIS LIVE has secured a number of contracts for 2012 including coverage of the Diamond Jubilee, The European Cup Football ,The Olympics, together with the existing contracts for Wimbledon Tennis and The Open Golf Tournament.
SIS is in the process of relocating its London operation to MediaCityuk in Salford Quays, Manchester, which is due to be completed by the end of 2012.
SIS has a joint venture with Peel Media, owners of MediaCityuk, to run MediaCityuk's state of the art studio facilities including post production, content and technical services as well as managing all connectivity. A ten-year contract has been agreed with the BBC to deliver an enhanced range of production and technical services.
Conclusion
The business of CMG is now entirely based on the investment in SIS and under the existing plans of SIS it is anticipated that further dividends should flow from SIS to CMG although the level and timing of these may fluctuate depending on cash requirements from time to time. It is the intention of the board to distribute by way of dividend or share buy-back a significant proportion of the free cash flowing from these dividends to shareholders and to keep administrative overheads to a minimum level. A further announcement will be made as to the timing of any such distributions, in due course as appropriate.
Notes to Editors
SIS principal activities are
·; the provision of satellite news-gathering and associated transmission services through its market-leading SISLink division (Uplink Services);
·; the provision of outside broadcast television production units, including sound, support and communication (Outside Broadcast);
·; its long-established business of providing integrated television and information services delivered via satellite to licensed betting offices in the United Kingdom, Ireland and overseas (Racing Services); and
·; the provision of television production services for other broadcasters (Other Services)
Uplink Services and Outside Broadcast are managed under the common brand of SIS LIVE.
Consolidated interim statement of comprehensive income
Notes | 6 months to 31 December 2011
£ Unaudited | 6 months to 31 December 2010
£ Unaudited | 15 months to 30 June 2011
£ Audited | |
Revenue | 12,500 | 12,500 | 31,250 | |
Cost of sales | - | (25,000) | (25,000) | |
Gross profit / (loss) | 12,500 | (12,500) | 6,250 | |
Administrative expenses | (60,958) | (91,596) | (228,152) | |
Operating loss | (48,458) | (104,096) | (221,902) | |
Financial income | 13 | 32 | 68 | |
Financial costs | 4 | (26,555) | (21,352) | (48,813) |
Net financial costs | (26,542) | (21,320) | (48,745) | |
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Share of profit of equity-accounted associate | 1 | 1,982,521 | 1,835,249 | 2,589,272 |
Profit before taxation | 1,907,521 | 1,709,833 | 2,318,625 | |
Taxation | 27,556 | 30,344 | 64,634 | |
Net Profit for the period | 1,935,077 | 1,740,177 | 2,383,259 | |
Share of other comprehensive income of associate
| - | - | 118,105 | |
Total comprehensive income for the period | 1,935,077 | 1,740,177 | 2,501,364 | |
Attributable to equity holders of the company | 1,935,077 | 1,740,177 | 2,501,364 | |
Earnings per share: | 5 | |||
Basic | 6.88p | 6.18p | 8.47p | |
Diluted | 6.88p | 6.18p | 8.47p | |
Consolidated interim statement of financial position
31 December 2011
£ Unaudited | 31 December 2010
£ Unaudited | 30 June 2011
£ Audited | ||
Assets | ||||
Non-current assets | ||||
Intangible assets | - | - | - | |
Property, plant and equipment | - | - | - | |
Investment in associate | 1 | 33,207,773 | 31,790,597 | 32,662,725 |
33,207,773 | 31,790,597 | 32,662,725 | ||
Current assets | ||||
Trade and other receivables | 19,475 | 35,582 | 26,426 | |
Corporation tax receivable | 11,618 | 30,343 | 10,886 | |
Cash and cash equivalents | 519,518 | 80,033 | 27,582 | |
550,611 | 145,958 | 64,894 | ||
Total assets | 33,758,384 | 31,936,555 | 32,727,619 | |
Equity and liabilities | ||||
Capital and reserves attributable to equity holders of the parent | ||||
Share capital | 2,814,319 | 2,814,319 | 2,814,319 | |
Merger reserve | 2,402,674 | 2,402,674 | 2,402,674 | |
Retained surplus | 28,508,122 | 26,030,764 | 26,826,782 | |
33,725,115 | 31,247,757 | 32,043,775 | ||
Non-current liabilities | ||||
Interest-bearing loans and borrowings | -
| 623,372 | - | |
Current liabilities | ||||
Interest-bearing loans and borrowings | - | - | 634,635 | |
Trade and other payables | 33,269 | 65,426 | 49,209 | |
33,269 | 65,426 | 683,844 | ||
Total equity and liabilities | 33,758,384 | 31,936,555 | 32,727,619 | |
Notes to the interim financial statements
1 | Investment in associate | Share of net assets | Fair Value of Intangibles | Total
| |||
| Group | Group | Group | ||||
| £ | £ | £ | ||||
| Cost | ||||||
| At 1 July 2011 | 11,484,684 | 21,178,041 | 32,662,725 | |||
| Additions - share of profit | 1,982,521 | - | 1,982,521 | |||
| Dividend received | (1,437,473) | - | (1,437,473) | |||
| At 31 December 2011 | 12,029,732 | 21,178,041 | 33,207,773 | |||
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The Group's interest in the associate, Satellite Information Services (Holdings) Limited, a company incorporated in Great Britain, ('SIS') is held by Alternateport Limited. Alternateport Limited holds an investment of 20.54% in the equity share capital of SIS and is entitled to appoint a director and alternate director to the SIS board. This right has been exercised since acquisition. Alternateport Limited is a wholly owned subsidiary of Catalyst Media Holdings Limited a wholly-owned subsidiary of the Company. The intangible assets represent the value attributable to the ongoing business activities of SIS. These are subject to an annual impairment review.
Share of profit of associate* | 30 September 2011 SIS Total £'000 | 31 December 2011 CMG share £'000 | 31 December 2010 CMG share £'000 | 30 June 2011 CMG share £'000 | |
Revenue: | |||||
Racing services | 70,542 | 14,489 | 13,308 | 25,539 | |
SIS live services | 40,515 | 8,322 | 8,079 | 21,638 | |
Other services | 4,448 | 914 | 1,045 | 5,320 | |
Total revenue | 115,505 | 23,725 | 22,432 | 52,497 | |
Operating profit from ongoing operations | 13,752 | 2,825 | 2,628 | 4,010 | |
Net interest payable | (1,100) | (226) | (257) | (531) | |
Profit on disposal of fixed asset | - | - | - | 2 | |
Profit before tax | 12,652 | 2,599 | 2,371 | 3,481 | |
Taxation | (3,000) | (616) | (536) | (892) | |
Share of profit after taxation | 9,652 | 1,983 | 1,835 | 2,589 | |
Net income from associate | 9,652 | 1,983 | 1,835 | 2,589 | |
Other comprehensive income | |||||
Actuarial (loss) /gain | - | - | - | 164 | |
Deferred tax | - | - | - | (46) | |
- | - | - | 118 | ||
Share of gross assets and liabilities of associate | |||||
Gross assets | 127,102 | 26,107 | 23,501 | 34,809 | |
Gross liabilities | (68,535) | (14,077) | (12,889) | (23,324) | |
Net equity | 58,567 | 12,030 | 10,612 | 11,485 | |
\* The period covered by the associate's accounts is 6 months to 30 September 2011.
The financial results for SIS are taken from the management accounts to 30 September 2011, adjusted in order to align the accounting policies of SIS (whose accounts are prepared under UK GAAP) and CMG (whose accounts are prepared under International Financial Reporting Standards). Adjustments have been made in respect of the amortisation of goodwill and the recognition of the fair value of derivatives held by SIS as at the balance sheet date. The net effect of these adjustments is to increase the value of the investment in associate in the financial statements by £1,719k (2010: £983k).
2 | Corporate information | |
Catalyst Media Group Plc ("the Company") is a company incorporated in England and Wales and quoted on the London Stock Exchange's Alternative Investment Market.
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3 | Basis of preparation |
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Since the publication of the last interim financial statements, the Group extended its accounting reference date to 30 June, the first relevant period being to 30 June 2011, in order to allow the Group access to the audited accounts of its equity accounted associate prior to commencing its own audit process. Accordingly, these interim financial statements cover the six month period from 1 July 2011 to 31 December 2011 including the financial results of SIS for the 6 month period to 30 September 2011. The comparative period has been restated to cover the period from 1 July 2010 to 31 December 2010 and includes the financial results of SIS for the 6 month period to 30 September.
These interim financial statements of the Company and its subsidiaries ("the Group") for the six months ended 31 December 2011 have been prepared in accordance with International Financial Reporting Standards (IFRSs and IFRIC interpretations) as adopted by the European Union and also in accordance with the Companies Act 2006.
The accounting policies adopted for the preparation of this interim statement are consistent with the accounting policies adopted in the financial statements for the fifteen months ended 30 June 2011.
The financial information set out above does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. Statutory accounts for the fifteen months to 30 June 2011, on which the report of the auditors was unqualified and did not contain a statement under section 498 of the Companies Act 2006, have been filed with the Registrar of Companies. |
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4 | Finance expenses | 6 months to 31 December 2011 £ | 6 months to 31 December 2010 £ | 15 months to 30 June 2011
£ |
| ||||
Interest payable | 11,217 | 11,733 | 30,593 | |
Amortisation of transaction costs and other loan redemption fees | 15,338 | 9,619 | 18,220 | |
26,555 | 21,352 | 48,813 | ||
5 | Earnings per share
|
The calculation of the basic earnings per share is based upon the following: |
6 months to 31 December 2011 £ | 6 months to 31 December 2010 £ | 15 months to 30 June 2011
£ | ||
Basic and Diluted |
| |||
| ||||
Earnings per share - pence | 6.88p | 6.18p | 8.47p | |
Profit attributable to equity shareholders | £1,935,077 | £1,740,177 | £2,383,259 | |
Weighted average number of shares in issue | 28,118,862 | 28,143,197 | 28,143,197 | |
6 | Dividend |
The Directors have not declared a dividend for the interim period ended 31 December 2011. |
7 | Share repurchase |
On 23 December 2011, the Company purchased in the market 497,524 Ordinary shares of 10p each in Catalyst Media Group Plc at a price of 51p per Ordinary Share. The purchase was made out of distributable reserves and the shares will be held in Treasury by the Company until further notice.
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Consolidated interim cash flow statement
6 months to 31 December 2011 £ Unaudited | 6 months to 31 December 2010 £ Unaudited | 15 months to 30 June 2011
£ Audited | ||
| ||||
Cash flow from operating activities | ||||
Profit before taxation including discontinued operations | 1,907,521 | 1,709,833 | 2,318,625 | |
Adjustments for: | ||||
Depreciation, amortisation and impairment | - | - | - | |
Share of profit from associate | (1,982,521) | (1,835,249) | (2,589,272) | |
Finance income | (13) | (32) | (68) | |
Finance expense | 26,555 | 21,352 | 48,813 | |
Corporation taxes recovered | 26,824 | 207,455 | 380,946 | |
Net cash flow from operating activities before changes in working capital | (21,634) | 103,359 | 159,044 | |
(Increase)/decrease in trade and other receivables | (4,994) | 968 | 44,735 | |
Increase/(decrease) in trade and other payables | (15,940) | 16,505 | (13,108) | |
Net cash flow used in operating activities | (42,568) | 120,832 | 190,671 | |
Investing activities | ||||
Dividend received | 1,437,473 | - | - | |
Interest received | 13 | 32 | 68 | |
Net cash flow from investing activities | 1,437,486 | 32 | 68 | |
Financing activities | ||||
Repurchase of shares | (253,737) | - | - | |
Repayment of long-term borrowings | (634,635) | (88,884) | (172,219) | |
Interest and early redemption fees paid | (14,610) | (14,673) | (37,382) | |
| ||||
Net cash outflow from financing activities | (902,982) | (103,557) | (209,601) | |
Net increase/(decrease) in cash and cash equivalents in the period | 491,936 | 17,307 | (18,862) | |
Cash and cash equivalents at the beginning of the period | 27,582 | 62,726 | 46,444 | |
Cash and cash equivalents at the end of the period | 519,518 | 80,033 | 27,582 |
.
Consolidated interim statement of changes in equity
| Share capital
£ Unaudited | Share Premium
£ Unaudited | Merger reserve
£ Unaudited | Retained surplus/ (deficit) £ Unaudited | Total shareholders equity £ Unaudited |
At 1 July 2010 | 9,243,197 | 38,904,450 | 2,402,674 | (21,042,741) | 29,507,580 |
Capital reduction - deferred shares* | (6,428,878) | - | - | 6,428,878 | -
|
Capital reduction - share premium* | - | (38,904,450) | - | 38,904,450 | -
|
Profit for the period to 31 December 2010
| - | - | - | 1,740,177 | 1,740,177 |
Share of other comprehensive income of associate | - | - | - | - | - |
Total comprehensive income for the period | (6,428,878) | (38,904,450) | - | 1,740,177 | 1,740,177 |
At 31 December 2010 | 2,814,319 | - | 2,402,674 | 26,030,764 | 31,247,757 |
Profit for the period | - | - | - | 677,913 | 677,913 |
Share of other comprehensive income of associate | - | - | - | 118,105 | 118,105 |
Total comprehensive income for the period | - | - | 118,105 | 118,105 | |
At 30 June 2011 | 2,814,319 | - | 2,402,674 | 26,826,782 | 32,043,775 |
*On 20 October 2010, the company reduced its capital. Both the share premium account of £38,904,450 and issued share capital of £6,428,878 were cancelled and credited to the profit and loss account reserve. The capital reduction was undertaken to allow the company to have distributable reserves.
Share capital
£ Unaudited | Share Premium
£ Unaudited | Merger reserve
£ Unaudited | Retained surplus/
£ Unaudited | Total shareholders equity £ Unaudited | |
At 1 July 2011 | 2,814,319 | - | 2,402,674 | 26,826,782 | 32,043,775 |
Profit for the 6 month period to 31 December 2011 | - | - | - | 1,935,077 | 1,935,077 |
Share of other comprehensive income of associate | - | - | - | - | - |
Total comprehensive income for the period | - | - | - | 1,935,077 | 1,935,077 |
Share repurchase* |
|
- |
- |
(253,737) |
(253,737)
|
At 31 December 2011 | 2,814,319 | - | 2,402,674 | 28,508,122 | 33,725,115 |
*On 23 December 2011, the Company purchased in the market 497,524 Ordinary shares of 10p each in Catalyst Media Group Plc at a price of 51p per Ordinary Share. The purchase was made out of distributable reserves and the shares will be held in Treasury by the Company until further notice.