Live Company Regulatory News (LVCG)

28 September 2016

PARALLEL MEDIA GROUP PLC

("PMG" OR THE "GROUP")

HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016

Parallel Media Group Plc (AIM:PAA), a leading live event and entertainment agency, announces its half-yearly results for the period ended 30 June 2016.

Highlights

· Through its associated music business, the Group has:

o Secured sponsorship and media deals for the Classic Rock Awards, due to be staged in Tokyo on 11 November 2016;

o Reached a settlement with Arena Group whereby the Group has received a cash sum of USD125k (£84k) received in March 2016 and another USD25k (approx. £17k) is to be received in February 2017; and

o Continued to reduce its outstanding current liabilities by an additional £836k against the same period last year.

Chairman of PMG, David Ciclitira, commented: "

"We are continuing the process of improving the Group's balance sheet and developing its event and entertainment business.

I would like to make a special mention of the Group's Board and Staff worldwide for their considerable efforts and I would, at the same time, like to thank all our stakeholders for their support."

Contact Details

For more information please contact:

CHAIRMAN'S STATEMENT

Music

The Group continues the development of its Asian-based music business. This year's Classic Rock Awards in Tokyo has the confirmed participation of Cheap Trick, Richie Sambora, Jeff Beck and his band featuring Dead DeLeo, Joe Walsh (Eagles), Jimmy Page, Kirk Hammet (Metallica), Phil Collen (Def Leppard), Orianthi, Slot Machine, Joe Elliot (Def Leppard), Sarah Geronimo, Bamboo, Tommy Henriksen (Hollywood Vampires) and Ray Luzier (Korn).

Golf Events

PMG is in active discussion with various potential title sponsors of the Championship.

Financial Review

Gross profit has increased by £86k and the operating loss has improved by £24k against the same period last year. The twelve month period between the previous interims has seen the net liabilities reduced by £836k.

As in previous years, I have supported the working capital requirements of the Group. The balance of the monies due to me and entities owned and controlled by me at the period end was £1.15m. In addition, the bank facility at period end totalled £0.28m and is secured by a personal guarantee provided by me at a monthly cost of £1,319 to the Group.

The loans have been made in the name of David Ciclitira on a short term basis and as yet there are no formal terms of these loans. It has, however, been agreed between David Ciclitira and the independent directors, being Tim Sturm and Ranjit Murugason (the "Independent Directors"), that the loans will not carry interest and will be repayable upon demand. The Independent Directors consider that, having consulted with the Group's Nominated Adviser, the provision of the loans are fair and reasonable in so far as the Group's shareholders are concerned.

Post Balance Sheet Events

There has not been any matter or circumstance occurring subsequent to the end of the financial period that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years. As previously stated, the Group continues to look for acquisitions in the live event and entertainment sector and expects to make an announcement before the end of 2016.

Going forward

I remain positive and would like to use this opportunity to thank our board and hardworking staff, without whose support our undoubted potential would not be possible.

David Ciclitira

Chairman

Date: 28 September 2016

Consolidated income statement for half year to 30 June 2016

The accompanying accounting policies and notes form an integral part of the financial statements.

Statement of comprehensive income for half year to 30 June 2016

Statement of financial position for the half year to 30 June 2016

Statement of cashflows for the half year to 30 June 2016

Consolidated statement of changes in equity for half year to 30 June 2016

Consolidated statement of changes in equity for the year ended 31 December 2015

NOTES TO THE FINANCIAL INFORMATION

1. Basis of Preparation

The condensed financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards. The condensed consolidated Half-yearly Financial Statements should be read in conjunction with the annual financial statements for the year ended 31 December 2015, which have been prepared in accordance with International Financial Reporting Standards. These half-yearly results are unaudited and do not constitute statutory accounts.

2. Significant Accounting Policies

The condensed financial statements have been prepared under the historical cost convention. The same accounting policies, presentation and method of computation are followed in these condensed financial statements as were applied in the preparation of the Group's financial statements for the year ended 31 December 2015.

3. Segment Information - Changes in Operating Segments

The group now operates under three segments, Sports, Entertainment and Media.

4. Earnings per Share

The basic earnings per share are calculated by dividing the profit attributable to equity shareholders by the weighted average number of shares in issue during the year. In calculating the diluted earnings per share, outstanding share options, warrants and convertible loans are taken into account where the impact of these is dilutive.

* The fully diluted loss per share is the same as the basic loss per share as the effects of potential shares are anti-dilutive.

5. Dividends - No dividend was recommended or paid for the period under review

6. Financial Liabilities - Borrowings

The bank facility represents amounts due to Lloyds Bank Plc in less than one year. The total amount outstanding to Lloyds Bank as at 30 June 2016 was £0.28m.

7. Non-Current Liabilities - Borrowings

The bank facility represents amounts due to Lloyds Bank in more than one year. The total amount owed to Lloyds Bank was £0.28m (of which £0.08m is included in current liabilities and £0.2m in non current liabilities). The loan carries interest payable at 4% over base rate. The loan may be repaid early at the discretion of the Group. The loan is secured by personal guarantee provided by David Ciclitira.

8. Issued Share Capital

Issued share capital as at 30 June 2016 is comprised as follows:

· 3,009,223 ordinary shares of £0.01p being £0.03 million

· 3,009,223 new deferred shares of £0.518p being £1.559 million*

· 199,831,545 deferred ordinary shares of 0.5p each being £0.999 million*

· 103,260 deferred B shares of £19.60 being £2.024 million*

* The deferred ordinary shares and new deferred shares do not entitle their holders to receive dividend or other distribution nor do they entitle their holders to receive notice, attend speak or vote at any General Meeting of the Group. The rights of deferred shareholders are set out in full in the financial statements for the year ended 31 December 2015.

9. Related Parties

Luna Trading Limited is a company under the control of David Ciclitira, which provides consultancy services, loans and guarantees to Parallel Media Group Plc. The movements in the payable balances due by Parallel Media Group Plc were as follows:

Luna Trading is the company through which PMG contracts with D Ciclitira for consulting and business services. During the period, Luna Trading charged £110k to PMG for consultancy fees and charged £10k for loan guarantee in the first 6 months of 2015.

Total amounts owed to David Ciclitira and entities under his control is £1,148k (Parallel Contemporary Arts Ltd £775k, David Ciclitira £67k, Luna Trading £294k and START (2013) Ltd £12k).

10. Other

Copies of unaudited half-yearly results have not been sent to shareholders, however copies are available at www.parallelmediagroup.com or on request from the Group's Registered Office.

11. Approval of Half-Yearly Financial Statements

The half-yearly financial statements were approved by the board of directors on 28 September 2016