Last checked at 30 Apr 2012 12:00
CERES MEDIA INTERNATIONAL PLC ("Ceres" or the "Company" or the "Group") Chairman's Statement Ceres is a supplier of environmentally friendly and sustainable materials forthe 'Out of Home' and 'In-store' print industry and has made progress indeveloping suitable materials and expanding its distribution chains for thedelivery of these into the United Kingdom; USA and European markets during
thepast six months.
The Board presents its results for the 6 months to 31 January 2012.
As notified in recent announcements the Company's trading has been belowdirectors' expectations. Revenues for the 6 months to January 2012 were £53,000. Performance has been impacted by the poor general economic conditionsand specific structural issues impacting the print material distributionsector, especially in the United Kingdom. The directors have reacted to thesechanges by refocusing the Company's sales strategy by directly targetingpotential end users of the product, simplifying the distribution process andoptimising price competitiveness. The Company has started to see positive results from this strategy, both interms of revenues as well as potential pipeline opportunities. The Company isin discussions and advanced product testing with a number of premium brandedentities as well as directly with 'Out of Home' media organisations with theintention to supply product directly to these users. Additionally, the Companyhas recently received its first orders for Nature Netting, the Company's newevent screening product designed specifically to support high profile eventstaking place in the UK during the summer. In relation to the sales of Chorus and Gossyp ranges, these remain below theboard's expectations, although there have been recent indications ofimprovements in off-take for Chorus in the USA and Europe. After extensivetesting Chorus and Gossyp were approved in March 2012 by Hewlett Packard ("HP")for use on its digital print machines - this will build significant confidencewith printers who use HP's printers as well as provide manufacturer approvedsettings for optimal use on both products. Awareness of the NatureWovenTMrange of products continues to increase and the Company is pleased to have beennominated as a finalist at the recent Sustainable Business Council of LosAngeles Awards. TierraFilmTM window cling product was launched in January 2012, however,technical issues surrounding the physical fixing process have led to slowerthan anticipated off-take - the directors anticipate that a newly formulatedand improved TierraFilmTM window cling product will be available in the UKmarket in June 2012. TierraFilmTM 'Backlit 100 product has tested well and itis anticipated will be listed by two major 'Out of Home' media owners shortly. Working capitalIn the light of continued lower than expected sales, the directors havesignificantly reduced overhead and continue to carefully manage workingcapital. The directors are also actively managing the current stock levels tobring them more into line with current trading. The Company will need to haveaccess to further working capital in the short term to allow it to financeanticipated sales growth. The board are considering a number of options.
Board change
Norman Fetterman, who has recently celebrated his 70th birthday has today announced he has resigned as a director of the Company. The Board would like to thank Mr. Fetterman for leading the business through the AIM flotation process in 2011 and beyond.
The board is seeking to appoint an additional director to the board; a further announcement will be made in due course.
The Company has experienced tough trading conditions since admission of itsshares to AIM in September 2011, the directors albeit cautions about the futureare optimistic that the Company's products can be successfully exploited in newand developing markets. The board would like to thank shareholders for theircontinued support of the Company. Leslie Barber, Chairman said "Whilst sales during the first six months of the year were very disappointing,marketing campaigns in both US and Europe are beginning to show results with agradual turnover build so far in 2012. Market interest in our products is encouraging and we are in discussions withnumerous major parties. We are focussed on ensuring that this continuedcustomer interest is converted into orders as quickly as possible and that allour products meet the environmental requirements we have set out to satisfy.
TierraFilmBacklit has now been developed and tested with three major 'Out of Home' media owners and approvals are expected shortly. TierraFilm's image reproduction qualities above all other benefits are proving to be the over-riding USP and the key reason for advertiser interest.
The recent success of the new to market Jute based Nature Netting product hasbeen welcomed, initial orders are encouraging and we are continuing to marketthis, as well as our other product lines, aggressively, albeit within thecurrent constraints of our working capital position." Contact details:- Ceres Media International PLC Tel: 020 3178 5622Alex Dowdeswell / Leslie Barber
Nominated Adviser - Cairn Financial Advisers LLP Tel: 020 7148 7900 Jo Turner / Liam Murray
Broker - First Columbus LLP Tel: 020 3002 2070Chris Crawford / Kelly Gardiner Financial PR - De Facto Financial Tel: 020 7556 1063Mike Wort / Anna Dunphy CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the six months ended 31 January 2012 six months Period 1 March 2011 Notes to 31 January 2012 to 31 July 2011 (unaudited) (Audited) £ £ CONTINUING OPERATIONS Revenue 2 52,832 30,054 Cost of Sales (32,563) (37,688) Administrative Expenses (472,807) (472,532) OPERATING LOSS (452,538) (480,166) Interest Income 0 250 Finance Costs (2,407) (4,859) LOSS BEFORE TAX (454,945) (484,775) Taxation 0 0 TOTAL COMPREHENSIVE (454,945) (484,775) EXPENSE FOR THE YEAR LOSS PER SHARE LOSS PER SHARE 4 0.015 0.021 BALANCE SHEETAs at 31 January 2012 At 31 January 2012 At 31 July 2011 (unaudited) (Audited) £ £ ASSETS NON-CURRENT ASSETS Goodwill 868,088 868,088 Intangible Assets 255,213 223,306 Property, plant and equipment 15,384 9,057 1,138,685 1,100,451 CURRENT ASSETS Inventories 403,975 162,663 Trade and other receivables 49,790 98,313 Cash and cash equivalents 79,970 55,911 533,735 316,887 TOTAL ASSETS 1,672,420 1,417,338 EQUITY SHAREHOLDERS' EQUITY Called up share capital 5,260,069 5,200,348 Share premium 831,887 0 Other reserves (3,444,553) (3,444,552) Retained earnings (1,330,117) (875,172) TOTAL EQUITY 1,317,286 880,624 LIABILITIES CURRENT LIABILITIES Trade and other payables 304,731 536,714
Financial liabilities: borrowings Interest bearing loans and borrowings 50,403
0 TOTAL LIABILITIES 355,134 536,714 TOTAL EQUITY AND LIABILITIES 1,672,420 1,417,338 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITYAs at 31 January 2012 Called up Share Merger Reverse Profit and Total Share capital Premium reserve acquisition loss account Equity reserve £ £ £ £ £ £ At 1 August 2011 5,200,348 1,157,850 (4,602,402) (875,172) 880,624 Issue of Equity 59,721 831,887 891,607 Loss for the period (454,945) (454,945) At 31 January 2012 5,260,069 831,887 1,157,850 (4,602,402) (1,330,117) 1,317,286 Called up Share Merger Reverse Profit and Total Share capital Premium reserve acquisition loss account Equity reserve £ £ £ £ £ £ At 1 March 2011 150,539 419,249 (390,397) 179,391 Issue of Equity: Consideration shares 4,042,498 4,042,498 Other shares issued 272,850 272,850 Reverse acquisition reserve 734,461 (419,249) 1,157,850 (4,602,402) (3,129,340)conversion Loss for the period (484,775) (484,775) At 31 July 2012 5,200,348 1,157,850 (4,602,402) (875,172) 880,624 CONSOLIDATED STATEMENT OF CASH FLOWSFor the six months ended 31st January 2012 Six months Period to 31 January 2011 to 31 July 2011 (Audited) £ £
Cash flows from operating activities
Loss before tax (454,945) (484,775) Depreciation charges 2,405 1,304 Investment income 0 (250) Increase in inventories (241,312) (114,470)
(Increase)/decrease in trade and other receivables 48,523
50,144
Increase/(decrease) in trade and other payables (231,983)
229,629
Net cash from operating activities (877,312)
(314,418)
Cash flows from investing activities Purchase of intangible fixed assets (31,907)
(28,006)
Purchase of tangible fixed assets (6,327)
(6,921)
Acquisition of subsidiaries, net of cash 0
385,144 Finance income received 0 250
Net cash from investing activities (38,234)
350,467
Cash flows from financing activities
New loans in the year 109,005 Issue of equity net of costs 891,609 10,334 Repayment of loan (58,602) Finance interest paid (2,407)
Net cash from financing activities 939,605
10,334
Increase/(decrease) in cash and cash
equivalents 24,059 42,383
Cash and cash equivalents at the beginning
of period 55,911 13,528
Cash and cash equivalents at end of period 79,970
55,911
NOTES TO THE HALF YEARLY REPORT
1 GENERAL INFORMATION
Ceres Media International plc is a public limited company incorporated and domiciled in the United Kingdom with its shares listed on the AIM market of the London Stock Exchange.
The principal activity of the Group is the development, production and provision of 100% natural and compostable printing materials to the advertising and point of sale markets.
The Ultimate parent company of the Group is Ceres Media International plc whose principle place of business is 81 Rivington Street, London, EC2A 3AY and registered office is Acre House, 11-15 William Road, London NW1 3ER.
The interim financial statements for the period ended 31 January 2012(including the comparatives for the period ended 31 July 2011) were approved bythe Board of Directors on 30 April, 2012. Under the Security Regulations Actof the European Union ("EU"), amendments to the financial statements are notpermitted after they have been approved.The financial information set out in this interim report does not constitutestatutory accounts as defined in Section 434 of the Companies Act 2006. TheGroup's statutory financial statements for the year ended 31 July 2011,prepared under International Financial Reporting Standards ("IFRS"), have beenfiled with the Registrar of Companies. The auditor's report on those financialstatements was unqualified and did not contain statements under Sections 498(2)and 498(3) of the Companies Act 2006.The interim financial information has been prepared using the accountingpolicies set out in the Group's 2011 statutory accounts. Copies of the annualstatutory accounts and the interim report may be obtained by writing to CeresMedia International plc, 81 Rivington Street, London EC2A 3AY and can be foundon the Company's website at www.ceresmediaplc.com2 SEGMENTAL REPORTING Six months Period to 31 January 2012 to 31 July 2011 EU 36,443 16,817 Rest of the world 16,389 13,237 52,832 30,054 3 EXCEPTIONAL ITEMS
The Group incurred exceptional items of £300,281 in relation to costs incurred to list the company on AIM and the share issue during the period.
4 EARNINGS / (LOSS) PER SHARE
The calculation of earnings per share is based on the net result and ordinary shares in issue during the period as follows:
£ £ Loss for the financial period 454,945 484,775
Weighted average shares in issue in the period 30,978,591 23,373,726
Loss per share 0.015 0.021 5 SHARE CAPITALDuring the period Ceres Media International plc issued the following shares
Ordinary shares of 20p/1p each In issue at 1 August 2011 26,001,739 Issued during the period 5,972,222 In issue at 31 January 2012 31,973,961
On 26th August 2011 the company converted each Ordinary Share of 20p into one
new Ordinary Share of 1p and a Deferred Share of 19p