MMX.L Regulatory News (MMX)

25 Jul 2008 07:00



For immediate release   

25 July 2008 

Hecta Media Inc

("Hecta Media" or "the Company")

Unaudited Interim Results for the period ended 

Hecta Media Inc (AIM: HCTA), the web consolidator, today announces its interim unaudited accounts for the period beginning with its incorporation and ended 30th April 2008.

CHAIRMAN'S STATEMENT

Introduction

I am pleased to report to shareholders the first financial statements for the period ended 30th April 2008 since the Company's incorporation on 22nd June 2007 and its admission onto AIM on 14th November 2007. 

Investment strategy

As set out in our admission document, our investment strategy remains focused on primarily investing in profitable websites and domain name portfolios - and then better monetising them through the use of click-through advertising programmes and other online advertising-related techniques combined with reduced centralised overheads.

Investment portfolio

During the period under review, as already reported to shareholders on 13th March 2008, Hecta completed its first set of acquisitions - namely, a popular blog, www.tutorialblog.org, and a series of domain portfolios containing approximately 60,000 names, one of which included an option to buy a further two portfolios dependent on the performance of the original. I am pleased to say that given the strong performance of that first portfolio, we subsequently then exercised this option - as announced, post period, on 6th June 2008. As a result, we now continue to closely monitor the assets in our portfolio and look to improve them in line with our investment and development strategy.

Financial review

As can be seen from the figures below, there was little time within the period under review for the revenue potential of the March acquisitions to be have any impact. We are confident, though, that their revenue potential will be better reflected in the next set of figures.

Likewise, operational expenses - including those associated to the AIM admission - were in line with budget for the period standing at £321,000. Consequently, the Company had £2,686,000 in cash or cash equivalents at the period end - it having invested £1,172,000 of the £4,414,949 originally raised pre-IPO via a placing at 4p.

Funding

As already mentioned, the Company successfully raised approximately £4.4 million via a placing at 4p prior to admission. As the Company looks to expand the breadth of its investment portfolio going forward, the Board may contemplate the raising of additional funds in the future. 

Outlook

The last year has been an exciting period for Hecta, it having effectively formed the Company, raised initial capital, was admitted to AIM, and made its first series of acquisitions. 

Going forward, we foresee equally active times, with the Company looking to potentially expand its portfolio management team so that it can continue growing the value of Hecta's existing portfolio whilst at the same time continuing to make further prudent acquisitions in line with its acquisition strategy. Indeed, we see the tightening economic conditions as potentially aiding us in achieving our acquisition strategy.

Frederick Krueger

Executive Chairman

25 July 2008  HECTA MEDIA INC.

INCOME STATEMENT 

FOR THE PERIOD 22 JUNE 2007 TO 30 APRIL 2008

  HECTA MEDIA INC.

BALANCE SHEET

AS AT 30 APRIL 2008

  HECTA MEDIA INC.

CASH FLOW STATEMENT

FOR THE PERIOD 22 JUNE 2007 TO 30 APRIL 2008

  HECTA MEDIA INC.

STATEMENT OF CHANGES IN EQUITY (Unaudited)

FOR THE PERIOD ENDED 30 APRIL 2008

HECTA MEDIA INC.

NOTES TO THE INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2008

1. Basis of preparation

The Company was registered as Hecta Media Inc. in British Virgin Islands having been incorporated on 22nd June 2007 under the BVI Business Companies Act 2004 with registered number 1412814.

The financial information has been prepared under the historical cost convention and on a going concern basis and in accordance with International Financial Reporting Standards and IFRIC interpretations adopted for use in the European Union ("IFRS") and those parts of the BVI Business Companies Act applicable to companies reporting under IFRS.

The financial information for the period ended 30 April 2008 has not been audited, but were the subject of an independent review carried out by the Company's auditors, Chapman Davis LLP. reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Auditing Practices Board. The figures were prepared using applicable accounting policies and practices consistent with those to be adopted in the statutory accounts for the period ended 31 October 2008. 

The financial information contained in this document does not constitute statutory accounts as defined by Section 240 of the Companies Act 1985 (England & Wales). In the opinion of the directors the financial information for this period fairly presents the financial position, result of operations and cash flows for this period.

This Interim Financial Report was approved by the Board of Directors on 21 July 2008.

Statement of compliance

These condensed interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union with the exception of International Accounting Standard ('IAS') 34 - Interim Financial Reporting.. Accordingly the interim financial statements do not include all of the information or disclosures required in the annual financial statements.

Foreign currencies

The functional currency of each entity is determined after consideration of the primary economic environment of the entity. The group's presentational currency is Sterling (£).

  2. Loss per share

The calculation of earnings per share is based on the loss after taxation divided by the weighted average number of shares in issue during the period:

As the inclusion of the potential ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive and, as such, a diluted loss per share is not included.

3. Share capital

The authorised share capital of the Company and the called up and fully paid amounts at 30 April 2008 were as follows:

£'000

Authorised

Unlimited ordinary shares of no par value each -

Total share options in issue

During the period ended 30 April 2008, the company granted 19,000,000 options over ordinary shares. 

As at 30 April 2008 the unexercised options in issue were;

The company also granted a warrant to subscribe for 1,622,665, ordinary shares at 4p per share, to Beaumont Cornish Ltd for 5 years from date of admission to AIM of 14 November 2007.

No options or warrants lapsed or were cancelled and no options or warrants were exercised during the period to 30 April 2008. 

4. Share based payments

1. The above share options vest on the 2nd anniversary from the date of grant. The options are exercisable at any time after vesting during the Directors period as an eligible employee until the fifth anniversary of admission. 

5. Post balance sheet events

On 6 June 2008, the Company announced it has exercised its option to acquire the first of two additional portfolios of domain names for a cash consideration of US$734,825 to be financed from existing cash balances. The domain name portfolio comprises mainly of German and other European parked domain names that receive direct navigation and search traffic which can be monetised through search links to generate click-through advertising revenues.

6. Publication of Non-Statutory Accounts

The financial information set out in this interim report does not constitute statutory accounts as defined in section 240 of the Companies Act 1985.

Copies of this report are available from Hecta Media Inc's registered office and from the company's website at www.hectamedia.com. 

ENDS

Further Information:

Hecta Media Inc

Clark Landry (CEO) Tel: + 1 310 570 3820

Beaumont Cornish Limited

Roland Cornish Tel +44 (0) 20 7628 3396

gth media relations

Toby Hall /Christian Pickel Tel: +44 (0) 20 7153 8039/8036

Or visit the group's website at www.hectamedia.com