31 Mar 2011 07:00
IMMEDIA GROUP PLC
Preliminary Statement of Results for the FY to 31 December 2010
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 2010.
Overview
·; Operating loss of £59,724 (2009: profit £59,789)
·; Renewal of speech and music subscription contracts
·; Trials with potential new customers
·; Expansion of equipment installation and maintenance services
·; Innovation in development of new subscription content services
Financial Summary
12 months to 31 December 2010 | 12 months to 31 December 2009 | |
Revenue | £3,509,421 | £3,771,135 |
Results from operating activities | £(59,724) | £59,789 |
(Loss)/profit before income tax | £(60,444) | £59,942 |
(Loss)/profit and total comprehensive income for the year attributable to equity shareholders |
£(48,566) |
£75,238 |
Basic and diluted (loss)/earnings per share | (0.35)p | 0.54p |
Year-end balance of cash and cash equivalents | £817,242 | £816,712 |
Bruno Brookes, Chief Executive of Immedia, said:
"Last year we reported the launch of initiatives to provide our services to a greater number of clients both small and large, and have created a collection of generic music channels for a wide variety of retail business sectors which we will launch in the first half of 2011. As a result we can deliver content not just within the UK but also in EMEA territories. Our work in supporting this growth includes the development of indirect reseller channels.
"We are engaged in several significant tender processes and also in designing 'stores of the future' for existing and potential new clients. Our product range has broadened significantly over the last 12 months enhancing our capabilities to deliver audio and visual marketing content internationally as well as locally.
"While we remain cautious about the outlook for 2011, in-store media is now an established part of retail store design and we are pursuing a number of exciting opportunities in this sector. We believe that our services are the best on the market and will continue to develop product offerings for new and existing audiences."
Enquiries:
Immedia Group Plc | |
Bruno Brookes - Chief Executive | +44 (0) 163 555 6200 |
Hudson Sandler | |
Nick Lyon | +44 (0) 207 796 4133 |
Daniel Stewart & Company Plc | |
Paul Shackleton/Chris Theis | +44 (0) 207 776 6550 |
Chairman's Statement
The opening months of 2010 proved to be frustrating as the pressures on our customers from the wider economy caused projects that had been approved for implementation to be postponed. As the year progressed and the economic outlook appeared to improve so confidence began to recover and projects were reinstated. The latter part of the year was consequently stronger, but not sufficiently so for the out-turn for the full year to maintain the solid performances recorded by your company in the two previous financial years.
The cost base has been tightly controlled in 2010 and we believe that your company is operating as cost effectively as possible whilst maintaining the levels of service required by our customers.
Cash balances have been maintained at broadly the level of 2009 and cash control is one of the major focuses for the management.
Contract renewals continue and there has been a healthy flow of inquiries from new customers. Our new music streaming product will enable us to provide services to a wider range of customers.
I assured shareholders in my statement last year that the Board of Immedia is committed to restoring shareholder value in the medium term. Although it is disappointing to have to report a loss after two years of profit, I do not believe that this reflects anything more than a temporary change of fortune. The profitable outcomes that your company delivers for its customers have a real value. Realising this value in a tangible form for shareholders is uppermost in the mind of the Board.
Geoff Howard-Spink
Chairman
Business Review
I am pleased to present our full year results for the financial year ended 31 December 2010.
Results & Financial Performance
Revenues for the year were £3,509,421 (2009: £3,771,135). Operating loss was £59,724 (2009: profit £59,789). Research and development tax credits of £11,878 reduced the loss after tax attributable to equity shareholders to £48,566 (in 2009 the profit attributable to equity shareholders was £75,238).
The Group has remained operationally cash generative. We ended 2010 with £817,242 cash in the bank (2009: £816,712).
During the year the Group continued its investment in improved technology and equipment for the delivery of its services; ongoing investment in these areas ensures Immedia's services remain market leading.
Subscription Stations
Our subscription radio stations are our core service and their development continues. We are currently trialling a live radio station for a new blue chip client and are developing trials with other similar clients.
Installation and maintenance services
Our audio and visual equipment installation and maintenance services business has also developed opportunities for further expansion and we are optimistic for its future growth.
Current Trading and Outlook
Last year we reported the launch of initiatives to provide our services to a greater number of clients both small and large, and have created a collection of generic music channels for a wide variety of retail business sectors which we will launch in the first half of 2011. As a result we can deliver content not just within the UK but also in EMEA territories. Our work in supporting this growth includes the development of indirect reseller channels.
We are engaged in several significant tender processes and also in designing 'stores of the future' for existing and potential new clients. Our product range has broadened significantly over the last 12 months enhancing our capabilities to deliver audio and visual marketing content internationally as well as locally.
While we remain cautious about the outlook for 2011, in-store media is now an established part of retail store design and we are pursuing a number of exciting opportunities in this sector. We believe that our services are the best on the market and will continue to develop product offerings for new and existing audiences.
Bruno Brookes
Chief Executive
Consolidated statement of comprehensive income
for the year ended 31 December 2010
| Note | 2010 | 2009 |
|
| £ | £ |
|
|
|
|
|
|
|
|
Revenue |
| 3,509,421 | 3,771,135 |
Cost of sales |
| (1,625,096) | (1,722,984) |
|
|
| |
Gross profit |
| 1,884,325 | 2,048,151 |
Administrative expenses |
| (1,944,049) | (1,988,362) |
|
|
| |
Results from operating activities |
| (59,724) | 59,789 |
| |||
Finance income |
| 1,726 | 2,290 |
Finance cost |
| (2,446) | (2,137) |
|
|
| |
Net finance (cost)/income |
| (720) | 153 |
|
|
| |
(Loss)/profit before income tax |
| (60,444) | 59,942 |
Income tax income |
| 11,878 | 15,296 |
|
|
| |
(Loss)/profit and total comprehensive income for the year attributable to equity shareholders |
|
(48,566) |
75,238 |
|
|
| |
Continuing and total operations |
| ||
(Loss)/earnings per share - basic and diluted | 3 | (0.35)p | 0.54 p |
Consolidated balance sheetAt 31 December 2010
| 2010 £ | 2009 £ | ||||
| ||||||
Assets |
| |||||
Property, plant and equipment |
| 218,585 | 221,254 | |||
Intangible assets |
| 304,925 | 278,485 | |||
Total non-current assets |
| 523,510 | 499,739 | |||
| ||||||
Current assets |
| |||||
Inventories |
| 117,857 | 79,678 | |||
Trade and other receivables |
| 319,177 | 613,644 | |||
Prepayments |
| 122,461 | 119,541 | |||
Cash and cash equivalents |
| 817,242 | 816,712 | |||
Total current assets |
| 1,376,737 | 1,629,575 | |||
Total assets |
| 1,900,247 | 2,129,314 | |||
| ||||||
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 | |||
Retained losses |
| (6,662,728) | (6,582,086) | |||
Total equity |
| 624,830 | 705,472 | |||
| ||||||
Liabilities |
| |||||
Loans and borrowings |
| - | 22,000 | |||
Total non-current liabilities |
| - | 22,000 | |||
| ||||||
Loans and borrowings |
| 22,000 | 22,000 | |||
Trade and other payables |
| 1,153,455 | 1,312,252 | |||
Deferred income |
| 99,962 | 67,590 | |||
Total current liabilities |
| 1,275,417 | 1,401,842 | |||
Total liabilities |
| 1,275,417 | 1,423,842 | |||
Total equity and liabilities | 1,900,247 | 2,129,314 | ||||
Consolidated statement of changes in equity
| Attributable to equity shareholders of the Company | ||||
Total equity as at 31 December 2010 |
Share capital £ | Share premium account £ |
Merger reserve £ |
Profit & loss account £ |
Total equity £ |
Balance at 1 January 2010 | 1,455,684 | 3,586,541 | 2,245,333 | (6,582,086) | 705,472 |
Purchase of own shares by employee benefit trust | - | - | - | (23,360) | (23,360) |
Equity settled share based payments | - | - | - | (8,716) | (8,716) |
Transactions with owners | - | - | - | (32,076) | (32,076) |
|
|
|
|
|
|
Loss and total comprehensive income for the year | - | - | - | (48,566) | (48,566) |
| Balance at 31 December 2010 |
1,455,684 |
3,586,541 |
2,245,333 |
(6,662,728) |
624,830 |
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 | - | - | - | 9,000 | 9,000 |
|
|
|
|
|
|
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 |
Consolidated statement of cash flows
for the year ended 31 December 2010
|
| 2010 £ | 2009 £ |
|
|
|
|
Cash flows from operating activities |
|
|
|
(Loss)/profit for the year before income tax |
| (60,444) | 59,942 |
|
|
|
|
Adjustments for: |
|
|
|
Depreciation and amortisation charges |
| 112,254 | 108,244 |
Financial income |
| (1,726) | (2,290) |
Financial expense |
| 2,446 | 2,137 |
(Profit)/loss on sale of property, plant and equipment |
| (376) | 242 |
Decrease in trade and other receivables |
| 294,467 | 15,100 |
(Increase)/decrease in inventories |
| (38,179) | 16,464 |
(Decrease) in trade and other payables |
| (126,183) | (123,816) |
|
|
|
|
Net cash from operating activities |
| 182,259 | 76,023 |
|
|
|
|
Cash flows from investing activities |
|
|
|
Proceeds from sale of property, plant and equipment |
| 985 | 139 |
Interest received |
| 1,726 | 2,290 |
Acquisition of property, plant and equipment |
| (97,594) | (120,800) |
Acquisition of intangible assets |
| (39,040) | - |
|
|
|
|
Net cash from investing activities |
| (133,923) | (118,371) |
|
|
|
|
Cash flows from financing activities |
|
|
|
Interest paid |
| (2,446) | (2,137) |
Repayment of borrowings |
| (22,000) | (22,000) |
Purchase of own shares for EBT |
| (23,360) | - |
|
|
|
|
Net cash from financing activities |
| (47,806) | (24,137) |
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
| 530 | (66,485) |
Cash and cash equivalents at 1 January |
| 816,712 | 883,197 |
|
|
|
|
Cash and cash equivalents at 31 December |
| 817,242 | 816,712 |
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 2009 have been delivered to the registrar of companies, and those for 2010 will be delivered in due course.
The consolidated statement of comprehensive income, consolidated balance sheet at 31 December 2010, consolidated statement of changes in equity, consolidated statement of cash flows and associated notes have been extracted from the Group's 2010 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 2010 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 18 April 2011 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 30 March 2011.
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 2010 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.
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 2009.
On the basis of current financial projections prepared up to the end of 2012, 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.
(Loss)/earnings per share
| 2010 Number | 2009 Number |
|
|
|
Weighted average number of shares in issue | 14,556,844 | 14,556,844 |
Less weighted average number of own shares | (681,153) | (564,854) |
|
|
|
Weighted average number of shares in issue for basic earnings per share | 13,875,691 | 13,991,990 |
|
|
|
The basic and diluted (loss)/earnings per share are calculated using the after tax (loss)/profit attributable to equity shareholders for the financial period of £(48,566) (2009: profit of £75,238). The weighted number of shares used for the diluted (loss)/earnings per share is calculated after reflecting the outstanding share options throughout the year, but in accordance with IAS 33 the diluted basic loss per share is stated as the same amount as basic as there is no dilutive effect (in 2009 the outstanding share options had no dilutive effect). | ||