20 Mar 2014 07:00
IMMEDIA GROUP PLC
Preliminary Statement of Results for the year to 31 December 2013
Immedia Group Plc (AIM: IME) ("Immedia" or the "Group") which provides bespoke digital music and entertainment channels to leading brands, today announces its preliminary financial results for the year to 31 December 2013.
Overview
· Operating profits improved by £573,528 year on year
· Shareholders' equity improved £812,908 and by 245% year on year
· Revenue growth 14.3% year on year
· Earnings per share: 5.89p (including one off tax credit); underlying EPS before tax: 2.96p
· Cash balances increased by £324,171 year on year
· Providing services to eleven new brands
· Improved pipeline of new business
Financial Summary
12 months to 31 December 2013 | 12 months to 31 December 2012 | |
Revenue | £2,841,740 | £2,486,783 |
Earnings/(loss) before interest, taxation, depreciation, amortisation and impairment charges (EBITDA) |
£488,842 |
£(49,688) |
Results from operating activities | £406,945 | £(166,583) |
Profit/(loss) before income tax | £405,619 | £(167,173) |
Income tax credit | £402,711 | £16,418 |
Profit/(loss) and total comprehensive income for the year attributable to equity shareholders of the parent |
£808,330 |
£(150,755) |
Basic and diluted earnings/(loss) per share | 5.89p | (1.10)p |
Underlying earnings/(loss) per share before tax | 2.96p | (1.22)p |
Year-end balance of cash and cash equivalents | £614,745 | £290,574 |
Bruno Brookes, Chief Executive of Immedia, said:
"We have engaged and provided services to eleven new brands and entered into four new retail markets. We have also developed new opportunities into consumer channels which we aim to launch in 2014.
"Our marketplace has matured with an unprecedented interest in our company's services.
"For the year ahead, whilst there will be new challenges, I am confident we will benefit from a buoyant need for a broader digital marketing and communications mix in the business sector to deliver new channels to a wider audience world-wide."
Enquiries:
Immedia Group Plc | |
Bruno Brookes - Chief Executive | +44 (0) 1635 556200 |
Daniel Stewart & Company Plc | |
Paul Shackleton | +44 (0) 207 776 6550 |
Chairman's Statement
2013 was a successful year for the Group with a return to profitability on an increase in revenue and a reduction in expenses following the full year effect of the cost reduction and restructuring programmeundertaken in 2012.
On revenue of £2,841,740, up 14.3% on the previous year, your company delivered EBITDA of £488,842 which translates to underlying earnings per share before taxation of 2.96p.
The balance sheet has been strengthened and the company has continued to maintain good cash balances.
The drive to win new business has continued with trials undertaken for a number of new customers, some in market sectors in which the company was not previously providing services.
We are optimistic for the coming year although with the long awaited economic recovery still fragile a degree of caution is appropriate.
The Board's key objective as always is to create shareholder value and we believe that this set of results provides a foundation upon which that objective can be achieved.
Lastly I'd like to thank Peter Teague who retired from the Board in 2013 after serving as Non-Executive Director since 2003; we are pleased to acknowledge the contribution he has made since the admission of the company to AIM. His counsel has helped steer the company through testing times. We wish him continued success in his other business interests.
Geoff Howard-Spink
Chairman
Chief Executive's Review
I am pleased to present our full year results for the financial year to 31st December 2013 where we have achieved profit before tax of £405,619 on revenues of £2,841,740. Revenues are up 14.3% on last year whilst the profit before tax is an improvement of £572,792 on the comparable period. We have strengthened shareholders' equity by £812,908 (up 245%) over the year.
We have engaged and provided services to eleven new brands and entered into four new retail markets. We have also developed new opportunities into consumer channels which we aim to launch in 2014. Our operational restructuring has worked well and, as growth is expected, we have concentrated on strengthening departmental leadership with new executives to drive content and channel development. Our marketplace has matured with an unprecedented interest in our company's services.
For the year ahead, whilst there will be new challenges, I am confident we will benefit from a buoyant need for a broader digital marketing and communications mix in the business sector to deliver new channels to a wider audience world-wide.
Bruno Brookes
Chief Executive
Consolidated statement of comprehensive income
for the year ended 31 December 2013
| Note | 2013 | 2012 |
|
| £ | £ |
|
|
|
|
|
|
|
|
Revenue |
| 2,841,740 | 2,486,783 |
Cost of sales |
| (1,270,789) | (1,038,608) |
|
|
| |
Gross profit |
| 1,570,951 | 1,448,175 |
| |||
Administrative expenses before depreciation, amortisation and impairment charges |
|
(1,082,109) |
(1,497,863) |
|
|
| |
Earnings/(loss) before interest, taxation, depreciation, amortisation and impairment charges (EBITDA) |
|
488,842 |
(49,688) |
| |||
Other administrative expenses |
| ||
Depreciation, amortisation and impairment charges |
| (81,897) | (116,895) |
|
|
| |
Total administrative expenses |
| (1,164,006) | (1,614,758) |
|
|
| |
Results from operating activities |
| 406,945 | (166,583) |
| |||
Finance income |
| 9,168 | 1,079 |
Finance cost |
| (10,494) | (1,669) |
|
|
| |
Net finance cost |
| (1,326) | (590) |
|
|
| |
Profit/(loss) before income tax |
| 405,619 | (167,173) |
Income tax | 3 | 402,711 | 16,418 |
|
|
| |
Profit/(loss) and total comprehensive income for the year attributable to equity shareholders of the parent |
|
808,330 |
(150,755) |
|
|
| |
Continuing and total operations |
| ||
Earnings/(loss) per share - basic and diluted | 4 | 5.89p | (1.10)p |
Consolidated balance sheet
At 31 December 2013
Note | 2013 £ | 2012 £ | ||||
| ||||||
Assets |
| |||||
Property, plant and equipment |
| 166,231 | 95,814 | |||
Intangible assets |
| 205,094 | 215,265 | |||
Deferred tax asset | 5 | 288,700 | - | |||
Total non-current assets |
| 660,025 | 311,079 | |||
| ||||||
Current assets |
| |||||
Inventories |
| 115,266 | 134,292 | |||
Trade and other receivables |
| 712,451 | 482,709 | |||
Prepayments |
| 29,988 | 74,822 | |||
Deferred tax asset | 5 | 109,300 | - | |||
Cash and cash equivalents |
| 614,745 | 290,574 | |||
Total current assets |
| 1,581,750 | 982,397 | |||
| ||||||
Total assets |
| 2,241,775 | 1,293,476 | |||
| ||||||
Equity |
| |||||
Share capital |
| 1,455,684 | 1,455,684 | |||
Share premium |
| 3,586,541 | 3,586,541 | |||
Merger reserve |
| 2,245,333 | 2,245,333 | |||
Other reserves |
| 4,578 | - | |||
Retained losses |
| (6,147,219) | (6,955,549) | |||
Total equity |
| 1,144,917 | 332,009 | |||
| ||||||
Liabilities |
| |||||
Borrowings |
| 18,750 | - | |||
Finance leases |
| 43,855 | - | |||
Total non-current liabilities |
| 62,605 | - | |||
| ||||||
Borrowings |
| 145,575 | 129,800 | |||
Finance leases |
| 35,084 | - | |||
Trade and other payables |
| 653,263 | 659,712 | |||
Deferred income |
| 200,331 | 171,955 | |||
Total current liabilities |
| 1,034,253 | 961,467 | |||
Total liabilities |
| 1,096,858 | 961,467 | |||
Total equity and liabilities | 2,241,775 | 1,293,476 | ||||
Consolidated statement of changes in equity
|
| Attributable to equity shareholders of the Company | |||||
Total equity as at 31 December 2013 |
Share capital £ | Share premium account £ |
Merger reserve £ | Share based payment reserve £ |
Retained loss £ |
Total equity £ | |
Balance at 1 January 2013 | 1,455,684 | 3,586,541 | 2,245,333 | - | (6,955,549) | 332,009 | |
Equity settled share based payments | - | - | - | 4,578 | - | 4,578 | |
Transactions with owners | - | - | - | 4,578 | - | 4,578 | |
Profit and total comprehensive income for the year | - | - | - | - | 808,330 | 808,330 | |
| Balance at 31 December 2013 |
1,455,684 |
3,586,541 |
2,245,333 |
4,578 |
(6,147,219) |
1,144,917 | |
Total equity as at 31 December 2012 |
Share capital £ | Share premium account £ |
Merger reserve £ | Share based payment reserve £ |
Retained loss £ |
Total equity £ |
Balance at 1 January 2012 | 1,455,684 | 3,586,541 | 2,245,333 | - | (6,804,794) | 482,764 |
Loss and total comprehensive income for the year | - | - | - | - | (150,755) | (150,755) |
| Balance at 31 December 2012 |
1,455,684 |
3,586,541 |
2,245,333 | - |
(6,955,549) |
332,009 |
Consolidated statement of cash flows
for the year ended 31 December 2013
|
| |
| 2013 £ | 2012 £ |
|
|
|
Cash flows from operating activities |
|
|
Profit/(loss) for the year before income tax | 405,619 | (167,173) |
|
|
|
Adjustments for: |
|
|
Depreciation, amortisation and impairment charges | 81,897 | 116,895 |
Financial income | (9,168) | (1,079) |
Financial expense | 10,494 | 1,669 |
(Profit)/loss on sale of property, plant and equipment | (365) | 4,562 |
(Increase)/decrease in trade and other receivables and prepayments | (184,908) | 276,567 |
Decrease in inventories | 19,026 | 11,825 |
Increase/(decrease) in trade and other payables and deferred income | 21,929 | (595,571) |
Share based payment | 4,578 | - |
|
|
|
Net cash from operating activities | 349,102 | (352,305) |
|
|
|
Taxation |
|
|
Taxation | 4,711 | 16,418 |
|
|
|
|
|
|
Cash flows from investing activities |
|
|
Proceeds from sale of property, plant and equipment | 1,206 | 8,310 |
Interest received | 9,168 | 1,079 |
Acquisition of property, plant and equipment | (137,285) | (5,797) |
Acquisition of intangible assets | (5,700) | (800) |
|
|
|
Net cash from investing activities | (132,611) | 2,792 |
|
|
|
Cash flows from financing activities |
|
|
New bank loan | 45,000 | - |
Repayment of bank loan | (3,750) | - |
New finance leases | 116,675 | - |
Repayment of finance leases | (37,737) | - |
Interest paid | (10,494) | (1,669) |
Amounts repaid under invoice financing facility | (6,725) | (112,812) |
|
|
|
Net cash from financing activities | 102,969 | (114,481) |
|
|
|
Net increase/(decrease) in cash and cash equivalents | 324,171 | (447,576) |
Cash and cash equivalents at 1 January | 290,574 | 738,150 |
|
|
|
Cash and cash equivalents at 31 December | 614,745 | 290,574 |
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 2012 have been delivered to the registrar of companies, and those for 2013 will be delivered in due course.
The consolidated statement of comprehensive income, consolidated balance sheet at 31 December 2013, consolidated statement of changes in equity, consolidated statement of cash flows and associated notes have been extracted from the Group's 2013 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 2013 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 15 April 2014 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 19 March 2014.
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 7-9 The Broadway, Newbury, Berkshire RG14 1AS.
The consolidated financial statements of the Company as at and for the year ended 31 December 2013 comprise the Company and its subsidiaries (together referred to as the "Group"). The Group primarily is involved in marketing and communication services through music, 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 2012.
The Directors have considered the Group's prospects for winning new business and reviewed a range of possible outcomes. On the basis of current financial projections prepared up to 30 June 2015, recent news of new contracts and of contract renewals, and continuing improvements in the management of costs, 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 Income tax credit in the income statement
| 2013 | 2012 |
| £ | £ |
Current tax credit |
|
|
Current period | - | - |
Adjustment in respect of prior periods | (4,711) | (16,418) |
|
|
|
| (4,711) | (16,418) |
|
|
|
|
|
|
Deferred tax credit |
|
|
|
|
|
Deferred tax (see note 5) | (398,000) | - |
|
|
|
Total tax credit in consolidated income statement | (402,711) | (16,418) |
|
|
|
4 Earnings/(loss) per share
| 2013 Number | 2012 Number |
|
|
|
Weighted average number of shares in issue | 14,556,844 | 14,556,844 |
Less weighted average number of own shares | (832,374) | (832,374) |
|
|
|
Weighted average number of shares in issue for basic earnings per share | 13,724,470 | 13,724,470 |
|
|
|
|
|
|
The basic and diluted earnings / (loss) per share are calculated using the after tax earnings / (loss) attributable to equity shareholders for the financial period of £808,330 (2012: loss of £150,755). For diluted earnings per share the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. During 2013 all outstanding share options in issue had an exercise price in excess of the average market price in the year therefore there was no material dilutive effect arising from options in issue during 2013 and the basic and diluted earnings per share figures are the same. In 2012 in accordance with IAS 33 the diluted basic loss per share is stated as the same amount as basic as there was no dilutive effect.
| ||
|
|
|
|
|
|
| 2013 | 2012 |
|
|
|
Underlying earnings / (loss) per share | 2.96p | (1.22)p |
|
|
|
|
|
|
The underlying earnings / (loss) per share is calculated using the before tax earnings / (loss) attributable to equity shareholders for the financial period of £405,619 (2012: loss of £167,173). | ||
5 Deferred tax asset
| 2013 | 2012 |
| £ | £ |
|
|
|
Due within one year |
|
|
|
|
|
Deferred tax | 109,300 | - |
|
|
|
|
|
|
Due after more than one year |
|
|
|
|
|
Deferred tax | 288,700 | - |
|
|
|
There were no recognised deferred tax liabilities (2012: £nil).
The deferred tax asset arising in respect of temporary differences between capital allowances and depreciation of £48,000 (2012: asset of £80,000) has been added to (2012: added to) accumulated trading losses. The residual trading losses carried forward of £2,045,000 create a potential deferred tax asset of £409,000 (2012: £840,000) of which £398,000 has been recognised in 2013; £109,300 of this total is held as a current asset and £288,700 as due after more than one year, as shown above. (Prior to 2013 no deferred tax asset was recognised due to uncertainty of recovery).