Last checked at 17 Dec 2008 08:30
Catalyst Media Group Plc
("CMG" or the "Group")
Interim results for the period ended 30 September 2008
Chairman's statement
I am pleased to report that for the six months ended 30th September 2008 the Group has generated a net profit before taxation of £386,205 (2007: a loss of £419,955). Net assets at 30 September 2008 were £23,544,804 (2007: £21,746,200). Net assets per share were 83.1 pence per share (2007: 80.3 pence per share).
During the period under review further savings were achieved with regard to recurring ongoing expenses. As previously reported the sale of Newsplayer was completed in April 2008 for £225,000 before costs. As a result the main asset of the Group remains the 20.54% stake in Satellite Information Services (Holdings) Ltd (SIS) and based on present information that company continues to perform in line with expectations.
CMG received a dividend of £3.07 million from SIS in October 2008 and following this receipt was able to reduce its overall indebtedness which now stands at £3,675,000 (30 Sept 2008: £7,807,571) The Board expects the recent reductions in the Bank of England base rate to further benefit the Group.
The online games of Tringo and Spoof are now almost fully developed and discussions continue with interested parties with regard to the marketing of these games. However, as previously mentioned, these are not considered core activities for the Group.
Consolidated interim income statement
| Notes | 6 months to 30 September 2008 £ Unaudited | 6 months to 30 September 2007 £ Unaudited | Year to 31 March 2008 £ Audited | |
| Revenue | 29,470 | 92,730 | 130,337 | |
| Cost of sales | - | (1,936) | - | |
| Gross profit | 29,470 | 90,794 | 130,337 | |
| Administrative expenses | (241,306) | (303,089) | (642,703) | |
| Loss on sale of subsidiary | - | - | (21,561) | |
| Impairment of development costs | - | - | (129,254) | |
| Total administrative expenses | (241,306) | (303,089) | (793,518) | |
| Other income | 3 | 255,960 | 1,393 | - |
| Operating profit/(loss) | 44,124 | (210,902) | (663,181) | |
| Financial income | 23,198 | 35,309 | 64,646 | |
| Financial costs | 4 | (624,541) | (1,544,336) | (1,809,778) |
| Net financial costs | (601,343) | (1,509,027) | (1,745,132) | |
| Share of profit from equity-accounted associate | 943,424 | 1,299,974 | 2,814,023 | |
| Profit/(loss) before tax | 386,205 | (419,955) | 405,710 | |
| Taxation | 219,121 | 275,009 | 687,000 | |
| Profit/(loss) for the period from continuing | ||||
| operations | 605,326 | (144,946) | 1,092,710 | |
| Loss for the period from discontinued operations | - | - | (132,634) | |
| Profit/(loss) for the period | 605,326 | (144,946) | 960,076 | |
| Earnings/(loss) per share: | 5 | |||
| Basic | 2.1p | (0.5p) | 3.4p | |
| Diluted | 2.1p | (0.5p) | 3.4p | |
| Earnings/(loss) per share from continuing | ||||
| operations: | 5 | |||
| Basic | 2.1p | (0.5p) | 3.9p | |
| Diluted | 2.1p | (0.5p) | 3.9p | |
Consolidated interim balance sheet
| 30 September 2008 £ Unaudited | 30 September 2007 £ Unaudited | 31 March 2008 £ Audited | ||
| Assets | ||||
| Non-current assets | ||||
| Intangible assets | 66,447 | 230,350 | 66,447 | |
| Property, plant and equipment | 474 | 2,797 | 758 | |
| Investment in associate | 29,852,576 | 27,395,137 | 28,909,152 | |
| 29,919,497 | 27,628,284 | 28,976,357 | ||
| Current assets | ||||
| Trade and other receivables | 330,407 | 575,833 | 526,190 | |
| Cash and cash equivalents | 1,393,143 | 1,225,884 | 1,209,088 | |
| 1,723,550 | 1,801,717 | 1,735,278 | ||
| Total assets | 31,643,047 | 29,430,001 | 30,711,635 | |
| Equity and liabilities | ||||
| Capital and reserves attributable to equity holders of the parent | ||||
| Share capital | 9,243,197 | 9,243,197 | 9,243,197 | |
| Share premium | 38,904,450 | 38,904,450 | 38,904,450 | |
| Merger reserve | 2,402,674 | 2,402,674 | 2,402,674 | |
| Translation reserve | - | 30,998 | - | |
| Retained deficit | (27,005,517) | (28,835,119) | (27,610,843) | |
| 23,544,804 | 21,746,200 | 22,939,478 | ||
| Non-current liabilities | ||||
| Interest-bearing loans and | ||||
| borrowings | - | 7,119,749 | 7,312,689 | |
| Current liabilities | ||||
| Interest-bearing loans and | ||||
| borrowings | 7,807,571 | - | - | |
| Trade and other payables | 290,672 | 564,052 | 459,468 | |
| 8,098,243 | 564,052 | 459,468 | ||
| Total equity and liabilities | 31,643,047 | 29,430,001 | 30,711,635 | |
Consolidated interim statement of changes in equity
| Share capital £ Unaudited | Share Premium £ Unaudited | Merger reserve £ Unaudited | Share-option reserve £ Unaudited | Retained deficit £ Unaudited | Total Shareholders equity £ Unaudited | |
| At 1 April 2007 | 7,143,197 | 30,896,287 | 2,402,674 | 388,526 | (28,959,445) | 11,871,239 |
| Profit for the year | - | - | - | - | 960,076 | 960,076 |
| Total recognised in profit | ||||||
| and loss for the year | - | - | - | - | 960,076 | 960,076 |
| Share-based payment | ||||||
| adjustment recognised in | ||||||
| equity | - | - | - | (388,526) | 388,526 | - |
| Total recognised gains | ||||||
| and losses in the year | - | - | - | (388,526) | 1,348,602 | 960,076 |
| Shares issued in the year | 2,100,000 | 8,400,000 | - | - | - | 10,500,000 |
| Share issue expenses | - | (391,837) | - | - | - | (391,837) |
| At 31 March 2008 | 9,243,197 | 38,904,450 | 2,402,674 | - | (27,610,843) | 22,939,478 |
| At 1 April 2008 | 9,243,197 | 38,904,450 | 2,402,674 | - | (27,610,843) | 22,939,478 |
| Profit for the period | - | - | - | - | 605,326 | 605,326 |
| Total recognised in profit | ||||||
| and loss for the period | - | - | - | - | 605,326 | 605,326 |
| At 30 September 2008 | 9,243,197 | 38,904,450 | 2,402,674 | - | (27,005,517) | 23,554,804 |
Consolidated interim cash flow statement
| 6 months to 30 September 2008 £ Unaudited | 6 months to 30 September 2007 £ Unaudited | Year to 31 March 2008 £ Audited | ||
| Cash flow from operating activities | ||||
| Profit/(loss) before taxation including discontinued operations | 386,205 | (419,955) | 273,076 | |
| Adjustments for: | ||||
| Depreciation, amortisation and impairment | 284 | 394,898 | 168,522 | |
| Share of profit from associate | (943,424) | (1,299,974) | (2,814,023) | |
| (Profit)/loss from sale of subsidiary and | ||||
| interest in associate | (255,960) | (1,393) | 61,566 | |
| Loss on sale of plant and equipment | - | - | 113 | |
| Finance income | (23,198) | - | (64,646) | |
| Finance expense | 624,541 | 1,544,336 | 1,809,778 | |
| Corporation taxes recovered | 323,644 | 275,009 | 618,887 | |
| Net cash flow from operating activities | ||||
| before changes in working capital | 112,092 | 492,921 | 53,273 | |
| Decrease in trade and other receivables | 195,783 | 362,053 | 256,592 | |
| Increase/(decrease) in trade and other payables | (12,314) | (2,268,745) | (1,442,966) | |
| Net cash flow generated from/(used) in | ||||
| operating activities | 295,561 | (1,413,771) | (1,133,101) | |
| Investing activities | ||||
| Payments for property, plant and equipment | - | - | (669) | |
| Dividend received from associate | - | 2,053,685 | 2,053,685 | |
| Interest received | 23,198 | 35,309 | 64,646 | |
| Sale of subsidiary | 213,746 | 93,248 | 93,248 | |
| Net cash flow from investing activities | 236,944 | 2,182,242 | 2,210,910 | |
| Financing activities | ||||
| Issue of ordinary shares | - | 10,500,000 | 10,500,000 | |
| Cost of share issue | - | (391,837) | (391,837) | |
| Proceeds from long-term borrowings | - | 7,410,000 | 7,312,689 | |
| Repayment of long-term borrowings | - | (17,465,000) | (17,465,000) | |
| Interest and early redemption fees paid | (348,450) | (1,544,336) | (1,773,159) | |
| Net cash flow from financing activities | (348,450) | (1,491,173) | (1,817,307) | |
| Net increase/(decrease) in cash and cash | ||||
| equivalents in the period | 184,055 | (722,702) | (739,498) | |
| Cash and cash equivalents at the beginning | ||||
| of the period | 1,209,088 | 1,948,586 | 1,948,586 | |
| Cash and cash equivalents at the end of the | ||||
| period | 1,393,143 | 1,225,884 | 1,209,088 |
Notes to the interim financial statements
| 1 | 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. |
| 2 | Basis of preparation |
| These interim financial statements of the Company and its subsidiaries ("the Group") for the six months ended 30 September 2008 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 1985. The accounting policies adopted for the preparation of this interim statement are consistent with the accounting policies adopted in the financial statements for the year ended 31 March 2008. The financial information set out above does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. Statutory accounts for the twelve months to 31 March 2008, on which the report of the auditors was unqualified and did not contain a statement under section 237 of the Companies Act 1985, have been filed with the Registrar of Companies. |
| 3 | Disposal of subsidiary companies |
| In April 2008 the Group sold Newsplayer Limited and Newsplayer International Limited. These operations were sold effectively at 1 April 2008 and did not contribute to operating activities in the period. |
| 4 | Finance expenses | 6 months to 30 September 2008 £ | 6 months to 30 September 2007 £ | Year to 31 March 2008 £ |
| | | | | |
| | Interest payable | 348,450 | 576,467 | 841,909 |
| | Amortisation of transaction costs and other loan | | | |
| | redemption fees | 276,091 | 967,869 | 967,869 |
| | | 624,541 | 1,544,336 | 1,809,778 |
| 5 | Earnings per share | |||
| The calculation of the basic earnings/(loss) per share is based upon the following: | ||||
| 6 months to 30 September 2008 £ | 6 months to 30 September 2007 £ | Year to 31 March
2008 £ | ||
| Basic | ||||
| Earnings/(loss) per share - pence | 2.1p | (0.5p) | 3.4p | |
| Profit/(loss) attributable to equity | ||||
| shareholders | £605,326 | (£144,946) | £960,076 | |
| Weighted average number of shares in | ||||
| issue | 28,143,197 | 27,093,197 | 27,971,066 | |
| Diluted | ||||
| Earnings/(loss) per share - pence | 2.1p | (0.5p) | 3.4p | |
| Profit attributable to equity shareholders | £605,326 | - | £960,076 | |
| Weighted average number of shares in | ||||
| issue | 28,323,197 | - | 28,151,066 | |
| The loss per share for the six month period to 30 September 2007 is the same as the basic loss per share as the loss has an anti-dilutive effect. The disposed operations (note 3) did not contribute to operating activities during the period. | ||||
| 6 | Dividend |
| The Directors have not declared a dividend for the interim period ended 30 September 2008. |
| 7 | Copies of the interim financial statements |
| The interim financial statements are available on the Company's website at www.cmg-plc.com. |