16 Apr 2010 07:00
Embargoed until 16 April 2010
IMMEDIA GROUP PLC
Preliminary Statement of Results for the FY to 31 December 2009
Immedia Group Plc ("Immedia"), the UK's leading provider of in-store radio, music and video, today announces its preliminary financial results for the year to 31 December 2009.
Overview
·; Operating profit of £59,789 (2008: £57,116)
·; Ongoing speech and music subscription contract renewals
·; Equipment installation and maintenance services continue to expand
·; Progress in development of new subscription content services
Financial Summary
|
| 12 months to 31 December 2009 | 12 months to 31 December 2008 |
|
|
|
|
| Revenue | £3,771,135 | £3,875,010 |
|
|
|
|
| Results from operating activities | £59,789 | £57,116 |
|
|
|
|
| Profit before income tax | £59,942 | £82,934 |
|
|
|
|
| Profit and total comprehensive income for the year attributable to equity shareholders |
£75,238 |
£80,118 |
|
|
|
|
| Basic and diluted earnings per share | 0.54p | 0.56p |
|
|
|
|
| Year end balance of cash and cash equivalents | £816,712 | £883,197 |
Bruno Brookes, Chief Executive of Immedia, said:
"We had anticipated that 2009 would be another challenging year for Immedia. We are pleased that the results reflect the balanced achievement of maintaining modest profitability whilst continuing to develop future income sources across new delivery platforms.
"In my review last year I noted that Immedia is not just a radio business and we have continued our work to broaden our offering. In 2010 we will launch a number of initiatives which will offer flexible delivery of content services in both audio and video. These will enable clients of any size to purchase the content they need in line with their requirements and budgets."
Enquiries:
| Immedia Group Plc |
|
| Bruno Brookes - Chief Executive | +44 (0) 1635 556200 |
| Hudson Sandler |
|
| Nick Lyon | +44 (0) 207 796 4133 |
| Daniel Stewart & Company Plc |
|
| Simon Leathers / Chris Theis | +44(0) 207 776 6550 |
Chairman's Statement
In my statement with the Report and Accounts for 2008 I advised shareholders that we were cautious about the year ahead in the light of the then current economic conditions. Shareholders will be well aware that the wider economy remained in recession for the period that we are now reporting on. In those circumstances I am pleased to tell you that the company met the challenge posed by the wider economic conditions and has maintained operating profit at the level achieved in 2008. Operating profit in 2009 was £59,789 compared with £57,116 on revenue of £3,771,135 slightly down on 2008 of £3,875,010.
Your company has also maintained a strong balance sheet with a year end positive cash balance of £816,712 (2008: £883,197).
Immedia's success is based on our ability to deliver profitable outcomes for our customers. This results in contract renewals and a deepening of the partnership that we aim to build with them. The core skill that our customers benefit from is the creative quality of the audio and visual content that we provide. We combine this with operations, installations and maintenance packages that are price competitive and offer excellent service levels.
Immedia have a research and development programme dedicated to creating new delivery platforms that will enable us to offer audio and visual content to a wider range of potential customers than at present. We anticipate bringing the first of these new delivery platforms to the market in 2010.
Finally I wish to assure our shareholders that the Board of Immedia is committed to restoring shareholder value in the medium term. Two years of positive earnings per share and our strong balance sheet provide a foundation upon which to build value. Although we are cautiously optimistic about the prospects for our own future the outlook for the broader UK economy, despite encouraging signs that the stimulus package that the government put in place has begun to have an effect, remains uncertain.
Geoff Howard-Spink
Chairman
Business Review
I am pleased to present our full year results for the financial year ended 31 December 2009.
Results & Financial Performance
The year was another challenging one for Immedia but we maintained our focus on cost control and profitability and delivered slightly improved operating profits. Revenues for the year were marginally lower at £3,771,135 (2008: £3,875,010). Operating profits were £59,789 (2008: £57,116). Lower interest income combined with a write back of deferred taxation left profits attributable to equity shareholders slightly lower at £75,238 (2008: £80,118).
During the year the Group continued its investment in improved technology and equipment for the delivery of its services, and ongoing investment in these areas will ensure Immedia's services continue to be market leading.
The Group has further strengthened its balance sheet over the period, rigorously controlling our costs and remaining operationally cash generative. We ended 2009 with £816,712 cash in the bank (2008: £883,197).
On the basis of current financial projections prepared up to the end of 2011, recent news of new contracts and of contract renewals, continuing improvements in management of costs, and ongoing availability of facilities, the Directors are satisfied that the Group has adequate resources to continue in operation for the foreseeable future and consequently the financial statements have been prepared on the going concern basis.
Subscription Stations
Our subscription radio stations remain our core service and their development continues. Our Radiovision audio visual service has attracted further interest during 2009 and we expect to extend this service to additional clients.
Our audio and visual equipment installation and maintenance services business has expanded further during the year by providing additional services to existing contracted clients as well as new clients initially seeking ad hoc services. The opportunity to cross-sell our complementary radio and music services remains and we expect a number of these clients will look to sign longer term contracts.
Our relationship with HSBC remains strong and our HSBC Live! subscription radio station continues to broadcast to over 1,000 sites across the UK including the HSBC call centres and other corporate buildings.
In September we were delighted to announce a two year extension to our IKEA Live! contract. This live radio station is broadcast to all 21 of Ikea's UK locations, including the new store in Southampton, as well as to their Dublin store opened during 2009.
Lloyds Pharmacy Live! operates across all their 1,500 stores and we are now developing new services for our eighth year of service.
Our SPAR Live! subscription radio remains popular across their 1,400 UK stores with new stores added in 2009.
We continue to work closely with our other existing clients and, as an essential and ongoing part of developing new business, work with new clients to trial prospective new radio stations.
Current Trading and Outlook
We had anticipated that 2009 would be another challenging year for Immedia. We are pleased that the results reflect the balanced achievement of maintaining modest profitability whilst continuing to develop future income sources across new delivery platforms. In my review last year I noted that Immedia is not just a radio business and we have continued our work to broaden our offering. In 2010 we will launch a number of initiatives which will offer flexible delivery of content services in both audio and video. These will enable clients of any size to purchase the content they need in line with their requirements and budgets. In particular, these services will enable Immedia to target an even greater range of retail clients. We also continue to develop our screen business, providing more hardware, telecoms and visual content, and support this through the further growth of our installation and maintenance business.
While we remain cautious about the outlook for 2010, we believe that our services remain the best on the market and will continue to develop product offerings for new audiences, while developing new opportunities among our strong portfolio of existing clients.
Bruno Brookes
Chief Executive
Consolidated statement of comprehensive income
for the year ended 31 December 2009
|
| Note | 2009 | 2008 |
|
|
| £ | £ |
|
|
|
|
|
|
|
|
|
|
| Revenue |
| 3,771,135 | 3,875,010 |
| Cost of sales |
| (1,722,984) | (1,608,926) |
|
|
|
|
|
| Gross profit |
| 2,048,151 | 2,266,084 |
| Administrative expenses |
| (1,988,362) | (2,208,968) |
|
|
|
|
|
| Results from operating activities |
| 59,789 | 57,116 |
|
|
|
|
|
|
|
|
|
|
| Finance income |
| 2,290 | 25,925 |
| Finance cost |
| (2,137) | (107) |
|
|
|
|
|
| Net finance income |
| 153 | 25,818 |
|
|
|
|
|
| Profit before income tax |
| 59,942 | 82,934 |
| Income tax income/(expense) |
| 15,296 | (2,816) |
|
|
|
|
|
| Profit and total comprehensive income for the year attributable to equity shareholders |
|
75,238 |
80,118 |
|
|
|
|
|
| Continuing and total operations |
|
|
|
| Earnings per share - basic | 3 | 0.54 p | 0.56 p |
| Earnings per share - diluted | 3 | 0.54 p | 0.56 p |
Consolidated balance sheet
At 31 December 2009
|
|
|
| 2009 £ |
| 2008 £ |
|
|
|
|
|
|
|
| Non-current assets |
|
|
|
|
|
| Property, plant and equipment |
|
| 221,254 |
| 196,479 |
| Intangible assets |
|
| 278,485 |
| 291,085 |
| Total non-current assets |
|
| 499,739 |
| 487,564 |
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
| Inventories |
|
| 79,678 |
| 96,142 |
| Trade and other receivables |
|
| 613,644 |
| 617,003 |
| Prepayments for current assets |
|
| 119,541 |
| 131,282 |
| Cash and cash equivalents |
|
| 816,712 |
| 883,197 |
| Total current assets |
|
| 1,629,575 |
| 1,727,624 |
| Total assets |
|
| 2,129,314 |
| 2,215,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share capital |
|
| 1,455,684 |
| 1,455,684 |
| Share premium |
|
| 3,586,541 |
| 3,586,541 |
| Merger reserve |
|
| 2,245,333 |
| 2,245,333 |
| Retained losses |
|
| (6,582,086) |
| (6,666,324) |
| Total equity |
|
| 705,472 |
| 621,234 |
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
| Loans and borrowings |
|
| 22,000 |
| 44,000 |
| Deferred tax liabilities |
|
| - |
| 15,296 |
| Total non-current liabilities |
|
| 22,000 |
| 59,296 |
|
|
|
|
|
|
|
| Loans and borrowings |
|
| 22,000 |
| 22,000 |
| Trade and other payables |
|
| 1,312,252 |
| 1,434,798 |
| Deferred income |
|
| 67,590 |
| 77,860 |
| Total current liabilities |
|
| 1,401,842 |
| 1,534,658 |
| Total liabilities |
|
| 1,423,842 |
| 1,593,954 |
| Total equity and liabilities |
|
| 2,129,314 |
| 2,215,188 |
| Total net current assets |
|
| 227,733 |
| 192,966 |
| Total net non-current assets |
|
| 477,739 |
| 428,268 |
| Net assets |
|
| 705,472 |
| 621,234 |
Consolidated statement of changes in equity
|
| Attributable to equity shareholders of the Company | ||||
| Total equity as at 31 December 2009 | Share capital
£ | Share premium account £ | Merger reserve
£ | Profit & loss account
£ | Total equity
£ |
| Balance at 1 January 2009 | 1,455,684 | 3,586,541 | 2,245,333 | (6,666,324) | 621,234 |
| Equity settled share based payments | - | - | - | 9,000 | 9,000 |
| Transactions with owners | 1,455,684 | 3,586,541 | 2,245,333 | (6,657,324) | 630,234 |
|
|
|
|
|
|
|
| Profit and total comprehensive income for the year | - | - | - | 75,238 | 75,238 |
| Balance at 31 December 2009 |
1,455,684 |
3,586,541 |
2,245,333 |
(6,582,086) |
705,472 |
| Total equity as at 31 December 2008 | Share capital
£ | Share premium account £ | Merger reserve
£ | Profit & loss account
£ | Total equity
£ |
| Balance at 1 January 2008 | 1,455,684 | 3,586,541 | 2,245,333 | (6,712,729) | 574,829 |
| Purchase of own shares by employee benefit trust | - | - | - | (33,713) | (33,713) |
| Transactions with owners | 1,455,682 | 3,586,541 | 2,245,333 | (6,746,442) | 541,116 |
|
|
|
|
|
|
|
| Profit and total comprehensive income for the year | - | - | - | 80,118 | 80,118 |
| Balance at 31 December 2008 |
1,455,684 |
3,586,541 |
2,245,333 |
(6,666,324) |
621,234 |
Consolidated cash flow statements
for the year ended 31 December 2009
|
|
|
| |
|
|
| 2009 £ | 2008 £ |
|
|
|
|
|
| Cash flows from operating activities |
|
|
|
| Profit for the year before income tax |
| 59,942 | 82,934 |
| Adjustments for: |
|
|
|
| Depreciation and amortisation charges |
| 108,244 | 247,827 |
| Financial income |
| (2,290) | (25,925) |
| Financial expense |
| 2,137 | 107 |
| Loss on sale of property, plant and equipment |
| 242 | 2,871 |
| Decrease in trade and other receivables |
| 15,100 | 79,240 |
| Decrease/(increase) in inventories |
| 16,464 | (92,439) |
| (Decrease)/increase in trade and other payables |
| (123,816) | 20,867 |
|
|
|
|
|
| Net cash from operating activities |
| 76,023 | 315,482 |
|
|
|
|
|
| Cash flows from investing activities |
|
|
|
| Proceeds from sale of property, plant and equipment |
| 139 | 423 |
| Interest received |
| 2,290 | 25,925 |
| Acquisition of property, plant and equipment |
| (120,800) | (152,658) |
|
|
|
|
|
| Net cash from investing activities |
| (118,371) | (126,310) |
|
|
|
|
|
| Cash flows from financing activities |
|
|
|
| Interest paid |
| (2,137) | (107) |
| Repayment of borrowings |
| (22,000) | - |
| Proceeds from long term borrowings |
| - | 66,000 |
| Purchase of own shares for EBT |
| - | (33,713) |
|
|
|
|
|
| Net cash from financing activities |
| (24,137) | 32,180 |
|
|
|
|
|
| Net (decrease)/increase in cash and cash equivalents |
| (66,485) | 221,352 |
| Cash and cash equivalents at 1 January |
| 883,197 | 661,845 |
|
|
|
|
|
| Cash and cash equivalents at 31 December |
| 816,712 | 883,197 |
Notes
The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. Statutory accounts for 2008 have been delivered to the registrar of companies, and those for 2009 will be delivered in due course.
The consolidated statement of comprehensive income, consolidated balance sheet at 31 December 2009, consolidated statement of changes in equity, consolidated cash flow statement and associated notes have been extracted from the Group's 2009 statutory financial statements upon which the auditor's opinion is unqualified and which do not include any statements under sections 498(2) or 498(3) of the Companies Act 2006.
The 2009 accounts will be delivered to the registrar of companies following the Company's Annual General Meeting. The Annual Report and Notice of Annual General Meeting will be posted to the shareholders by 27 May 2010 and will be made available on the Company's website (www.immediaplc.com) at that time.
This preliminary announcement was approved by the Board on 15 April 2010.
1. Reporting entity
Immedia Group Plc (the "Company") is a company incorporated and domiciled in the United Kingdom. The address of the Company's registered office and its principal place of business is The Old Brewery, The Broadway, Newbury, Berkshire RG14 1AU.
The consolidated financial statements of the Company as at and for the year ended 31 December 2009 comprise the Company and its subsidiaries (together referred to as the "Group"). The Group primarily is involved in marketing and communication services through radio and screen based media together with the installation and maintenance of associated equipment.
2. Basis of preparation
The consolidated financial statements have been prepared and approved by the directors in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs").
The consolidated financial statements have been prepared in accordance with the same accounting policies adopted in the financial statements for the year to 31 December 2008 except for the adoption of IAS 1 Presentation of Financial Statements (Revised 2007) and IFRS 8 Operating Segments.
The adoption of IAS 1 (Revised 2007) does not affect the financial position or profits of the Group, but gives rise to additional disclosures. The measurement and recognition of the Group's assets, liabilities, income and expenses is unchanged, however some items that were recognised directly in equity are now recognised in other comprehensive income. IAS 1 (Revised 2007) affects the presentation of owner changes in equity and introduces a 'Statement of comprehensive income'. In accordance with the new standard the entity does not present a 'Statement of recognised income and expenses (SORIE)', as was presented in the 2008 consolidated financial statements. Further, a 'Statement of changes in equity' is presented as a primary statement.
IAS 1 (Revised 2007) also requires presentation of a comparative balance sheet as at the beginning of the first comparative period, in some circumstances. Management considers that this is not necessary this year because the 2007 balance sheet is the same as that previously published.
On the basis of current financial projections prepared up to the end of 2011, recent news of new contracts and of contract renewals, continuing improvements in management of costs, and ongoing availability of facilities, the Directors are satisfied that the Group has adequate resources to continue in operation for the foreseeable future and consequently the financial statements have been prepared on the going concern basis.
3. Earnings per share
|
| 2009 Number | 2008 Number |
|
|
|
|
| Weighted average number of shares in issue | 14,556,844 | 14,556,844 |
| Less weighted average number of own shares | (564,854) | (367,097) |
|
|
|
|
| Weighted average number of shares in issue for basic earnings per share | 13,991,990 | 14,189,747 |
|
|
|
|
|
The basic and diluted earnings per share are calculated using the after tax profit attributable to equity shareholders for the financial period of £75,238 (2008: £80,118). The weighted number of shares used for the diluted earnings per share is calculated after reflecting the outstanding share options throughout the year, but no such share options had a dilutive effect (2008: none). | ||