IME.L Regulatory News (IME)

ISSUED ON BEHALF OF IMMEDIA GROUP PLC

Thursday, 27 September 2018

IMMEDIATE RELEASE

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

IMMEDIA GROUP PLC

("Immedia" or the "Company" or the "Group")

UNAUDITED HALF-YEAR RESULTS

Immedia (AIM: IME), a supplier of multi-media content and digital audience engagement solutions for leading brands and global businesses, announces its unaudited half-year results for the six months ended 30 June 2018.

Commenting on the performance, Immedia's CEO Bruno Brookes said:

"I am pleased to report that the Group has made good progress during the first half.

Strengthened relationships with existing clients, new business coming on stream and the impact of cost control measures implemented in 2017 have combined to substantially turn around below par 2017 results.

We expect the positive progress this year to continue in the second half and are focused on maintaining growth and momentum into 2019 and beyond.

The outlook is positive. We are engaged at a senior level with companies in all our strategic pillars of retail, sport, education and workforce. Our innovations are working in alignment with our strategy to transform our client companies into media owners rather than media buyers."

Immedia's clients include: BP, FIFA, HSBC, JD Sports Fashion plc, O2, Shell, Subway Europe, Superdrug and IKEA.

IMMEDIA GROUP PLC

Unaudited Half-Year Results for the six months ended 30 June 2018

INTRODUCTION

I am pleased to report that the Group enjoyed a more successful half year than in the corresponding period last year.

Both revenue and profitability showed solid improvement over the corresponding 2017 period and reflect the continuing strengthening of client relationships, long awaited new business coming on stream and the full impact of cost control measures initiated across the business, particularly within our AVC Immedia division.

The strength of the team in all sectors - management, business development, creative, operations and financial - gives excellent grounds for confidence in H2 2018 and beyond.

FINANCIAL RESULTS

Revenue in the period being reported increased 9.3% to £2,016,677 (H1 2017: £1,845,278).

The Group has continued its strong relationships with clients, with product and service development from several clients boosting revenues and exceeding budgeted figures.

An extensive set of measures to manage cost versus investment within the business was implemented in 2017. We are confident that the full benefits of these measures will be apparent in the 2018 financial year.

As we announced in April, Immedia also benefited from a one-off installation and equipment supply contract following a successful service implementation with a major UK financial services institution. This association, which had been operating on an extended trial basis, was contracted post period end and further detail can be found below.

EBITDA

In light of the developments above EBITDA for the period was £39,878 (H1 2017: loss (£104,382) ; a significant improvement. Cash balances increased accordingly to £148,825 (H1 2017: £82,138), with the Group remaining virtually debt free.

As in previous years, Immedia's investment in AudioBoom Group plc, the leading spoken‐word audio platform (AIM: BOOM), showed significant fluctuations in value during the period. In accordance with our IFRS accounting regime, a loss on revaluation of investments of £55,800 has been reported in the first half (H1 2017: loss of £34,500). Cumulatively, the Group remains in profit on its investment.

OPERATIONS

The Directors are encouraged by the performance of the business in the period and the opportunities that lie ahead.

It is also pleasing to report that recent major contracts with both JD Sports and SUBWAY® are exceeding Board expectations. In addition, our multi-channel network propositions and brand content delivery continue to attract substantial levels of interest and successful conversion rates.

Overall, the new business pipeline is positive and activity is growing across the business network. This gives the Board confidence in its strategy and the future.

AVC IMMEDIA

2018 is a year of dynamic activity for AVC Immedia. This division continues to work with a wide range of high-profile customers in the energy, sport, transport, tourism and leisure sectors. Examples of projects include:

· FIFA - a team was sent to Russia to film Fan Fest Entertainment in World Cup stadia

· Weir Oil and Gas - OTC 2018 production, Augmented Reality, interactive and 3D animation content

· Maersk - 360°, drone and promotional project film

· Petrofac - construction animation for building work in the Falkland Islands

· Visit Aberdeenshire - series of promotional tourism films

PEOPLE

To support the opportunities and confirmed forward business, we have taken the opportunity to recruit and strengthen our teams to ensure that we have the talent and resource skills set to service new and existing client projects. This has included adding a Client Services Manager in Newbury and a new dedicated animation team in Aberdeen.

The business now employs 31 people and, on behalf of all stakeholders, I would like to thank each one of them for their hard work and dedication.

POST PERIOD END

Since the end of the period we are pleased to report that we have provided JD Sports with updated mobile application modules for the IOS and Android platforms. The Group has also completed the roll-out of JD-X to over 370 of JD Sports UK stores, with a roll-out to European stores anticipated to begin in Q4 2018.

Immedia also recently announced a contract with a major UK financial services institution to deliver a mixture of services including live presenter led radio in high street locations together with equipment supply and installation, part of which had been started in the first half of the year.

OUTLOOK

The one-off programme of installations with the major UK high street financial services institution will contribute significantly to profitability in 2018.

Our motivation is on maintaining momentum in recurring revenue in 2019 and beyond. Whilst AVC Immedia is seeing improved market conditions in the Aberdeen area as the oil price is on a rising trend, our focus is to continue to expand the geographical reach of AVC's state of the art film, production and 3D design services.

We continue to work in the forefront of mobile technology and in App entertainment services to take the 'in store' experience 'out of store'. This is the future, and I am pleased to state that Immedia remains a leader in these new technologies and retail experiences. We expect this trend to continue and intensify in the coming years and the business is well placed to lead this initiative in our key market segments.

After a positive start to the year the Directors expect this momentum to continue over the second half of the financial year, and are comfortable in meeting the market's expectation for the full year.

Our aspiration driven strategy is to turn our clients into media owners; we expect to announce further initiatives in this regard and we look forward to keeping our stakeholders updated over the coming months.

Bruno Brookes, CEO

On behalf of Immedia Group plc

27 September 2018

IMMEDIA GROUP PLC

(Immedia or the Company or the Group)

Unaudited Half-Year results for the six months ended 30 June 2018

Consolidated statement of profit or loss

Consolidated statement of profit or loss and other comprehensive income

IMMEDIA GROUP PLC

(Immedia or the Company or the Group)

Unaudited Half-Year results for the six months ended 30 June 2018

Consolidated balance sheet

IMMEDIA GROUP PLC

(Immedia or the Company or the Group)

Unaudited Half-Year results for the six months ended 30 June 2018

Consolidated statement of changes in equity

Attributable to equity shareholders in the Company

IMMEDIA GROUP PLC

(Immedia or the Company or the Group)

Unaudited Half-Year results for the six months ended 30 June 2018

Consolidated statement of cash flows

IMMEDIA GROUP PLC

(Immedia or the Company or the Group)

Unaudited Half-Year results for the six months ended 30 June 2018

NOTES TO THE FINANCIAL STATEMENTS

Financial information contained in this document does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 ("the Act"). The statutory accounts for the year ended 31 December 2017 have been filed with the Registrar of Companies. The report of the auditors on these statutory accounts was unqualified, did not draw to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Act. The financial information for the six months ended 30 June 2018 and 30 June 2017 is unaudited.

This announcement was approved by the Board on 26 September 2018.

1. Reporting entity

Immedia Group Plc (the "Company") is a public limited company incorporated and domiciled in England and Wales. 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 2017 comprise the Company and its subsidiaries (together referred to as the "Group").

The Group is involved in marketing and communication services through the provision of interactive digital channels products and services using music, radio and screen-based media to provide brand conversation, engaging entertainment and innovative technical solutions. It also supplies, installs and maintains the equipment used to deliver these services.

2. Basis of preparation

The interim financial information in this report has been prepared using accounting policies consistent with IFRS as adopted by the European Union. IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission. The financial information has been prepared on the basis of IFRS that the Directors expect to be adopted by the European Union and applicable as at 31 December 2017 and 31 December 2018. The Group has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing the interim financial information.

3. Significant accounting policies

The accounting policies set out in detail in note 3 of the Group's consolidated financial statements to 31 December 2017 have been applied consistently to these unaudited financial statements to 30 June 2018, with the exception of the adoption of new or amended standards as set out below:

The following standards have become applicable for accounting periods commencing on or after 01 January 2018 and the appropriate adjustments have been considered:

· IFRS 9 - Financial Instruments

· IFRS 15 - Revenue from Contracts with Customers

The impact of the adoption of these standards and the new accounting policies are disclosed in note 6 of these financial statements.

4. Financial assets

In March 2014 the Group invested £90,000 in the purchase of 6,000,000 shares in AudioBoom Group plc, an AIM-quoted audio social media platform, as part of the Group's strategy to broaden its digital marketing and communications services.

As described in note 6, the Company has taken the irrevocable election to classify this investment as FVTOCI. At 30 June 2018 the fair value of the investment was £117,000 with a current period fair value loss of £55,800 recognised in other comprehensive income (30 June 2017 fair value £130,500 with fair value loss of £34,500 recognised in other comprehensive income; 31 December 2017 fair value £172,800 with fair value gain of £7,800 recognised in other comprehensive income).

As at the date of approval of this report, the investment represents c.0.5% of AudioBoom Group plc's shares in issue and has a fair value of £126,000.

5. Earnings per share

The basic and diluted earnings per share are calculated using the after tax loss attributable to equity shareholders for the financial period of £35,220 (30 June 2017: loss £188,225; 31 December 2017: loss £671,568) divided by the weighted average number of Ordinary shares in issue in each of the relevant periods: 30 June 2018: 13,724,470 shares (30 June and 31 December 2017: 13,724,470 shares). For the period to 30 June 2018 and the year to 31 December 2017 and period to 30 June 2017 and in accordance with IAS 33, the diluted loss per share is stated as the same amount as basic as there is no dilutive effect.

6 Adoption of new accounting standards

(i) IFRS 9 - Financial instruments

Equity investments reclassified from Available-for-Sale to FVTOCI

As disclosed in note 4, the Group holds an investment in Audioboom Plc. The Group does not consider this is held for trading. As permitted by IFRS 9, the Group has designated this investment, by way of an irrevocable election, at the date of initial application as measured at FVTOCI. Unlike IAS 39, the accumulated fair value reserve related to these investments will never be reclassified to profit or loss.

Impairment of Financial Assets

 IFRS 9 requires the use of an expected credit loss model to calculate impairment losses rather than an incurred loss model. Therefore, it is not necessary for a credit event to have occurred before credit losses are recognised. The new impairment model applies to the all the Group's financial assets.

No changes to the impairment provisions were made on transition to IFRS 9 as the effects were felt to be immaterial. In assessing impairment requirements on financial assets, the Group now considers the historic loss rates, which have been minimal, in conjunction with expected future losses and credit losses as a result of potential defaults. This will, as mandated by IFRS 9, continue to be reassessed as and when further information becomes available or when conditions change.

(ii) IFRS 15 Revenue from Contracts with Customers

The Group has adopted IFRS 15 Revenue from Contracts with Customers from 1st January 2018 and, following a review of the contracts held by the Group, this has not resulted in any changes to existing revenue recognition policies and no adjustments have been made to the amounts recognised in the financial statements.

By order of the Board

27 September 2018

FORWARD LOOKING STATEMENTS

This document contains certain forward-looking statements which reflect the knowledge and information available to the Company during the preparation and up to the publication of this document. By their very nature, these statements depend upon circumstances and relate to events that may occur in the future thereby involving a degree of uncertainty. Although the Group believes that the expectations reflected in these statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Given that these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.

The Group undertakes no obligation to update any forward-looking statements whether because of new information, future events or otherwise.

The Half-Year Report will be available to view and download from the Group's website at www.immediaplc.com