Last checked at 25 Apr 2013 07:00
CERES MEDIA INTERNATIONAL PLC - Half-yearly ReportCERES MEDIA INTERNATIONAL PLC - Half-yearly Report
PR Newswire
London, April 24
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 and refining suitable materials for these markets.
The Board presents the results for the Company for 6 months to 31 January 2013.
The Company has continued to experience difficult trading conditions sinceadmission of its shares to AIM in September 2011. The general lack ofconfidence in the marketplace has manifested itself for Ceres business in theslower than anticipated adoption of its new printing materials by both the Outof Home Advertising and In store point of sales ("POS") markets.
While year on year sales growth is clearly apparent (+168%), revenues remainsignificantly behind budget for the first half period for the reasons outlinedabove.
Operating losses versus the same period last year are significantly reducedfrom (£453k) to (£89k) primarily as a result of a sizeable overhead reductionprogramme. Further improvements in sales revenue during the second half areexpected.
Shortfalls in sales revenue against projections led to the inevitable cashshortages earlier this year and the business was pleased to receive the backingof a number of key shareholders in raising a further £275,000 to permit thefunding of product development initiatives and ensuring their readiness formarket.
As notified in recent announcements the Company has finally received approvalfor use of the TierrafilmTM Backlit product with the major `Out of Home' ownersin the UK providing the Company with access to potential advertisers in thislarge market place. The Company is now working with a number of high profilebrand owners and media buyers to launch TierraFilm in the UK during 2013. Thisstrategy is also being applied in North America with TierrafilmTM Backlitmaterials having recently been approved for use by the first major US ShoppingMall media owner.
After experiencing numerous adhesion difficulties with the originalTierrafilmTM Window-cling a new improved variant with a light tack adhesive, asrequested by end users, has been developed and market tests have now beensuccessfully completed. This market ready product will be introduced to the UKand North American markets during May 2013.
With the approval of NatureWovenTM materials by Hewlett Packard at the end of2012 the Company has continued to see increasing enquiries for products frominternational printers and distributors with trials currently underway in anumber of European countries, South America and the Middle East. The Company ishopeful this will begin to bear further fruit in the near future.
Sales of NatureWovenTM Chorus and Gossyp continue to be below the board'sexpectations, however, off-take has increased in North America as brands,agencies and printers increasingly become aware of how to best employmaterials. The board believes this trend will continue throughout 2013.
The directors believe that Ceres now has its portfolio of products ready totake advantage of the UK and US advertisers' needs for environmentallyresponsible advertising and display materials. The directors believe this willfinally give the Company the ability to grow and successfully exploit itsproducts in existing, new and developing markets.
The board would like to thank shareholders for their continued support of theCompany.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31st January 2013
six months six months to January to January 2013 2012 (unaudited) (unaudited) Notes £ £ CONTINUING OPERATIONS Revenue 2 141,664 52,832 Cost of Sales (102,532) (32,563) Administrative (128,206) (472,807)Expenses OPERATING LOSS (89,074) (452,538) Interest Income - - Finance Costs (787) (2,407) LOSS BEFORE TAX (89,861) (454,945) Taxation - - TOTAL COMPREHENSIVE EXPENSE FOR THE YEAR (89,861) (454,945) LOSS PER SHARE 4 0.001 0.015 CONSOLIDATED BALANCE SHEET At 31 January At 31 January 2013 2012 (unaudited) (unaudited) ASSETS NON-CURRENT ASSETS Goodwill - 868,088 Intangible Assets 368,977 255,213 Property, plant and equipment 4,875 15,384 373,852 1,138,685 CURRENT ASSETS Inventories 296,612 403,975 Trade and other receivables 31,367 49,790 Cash and cash equivalents 9,835 79,970 337,814 533,735 TOTAL ASSETS 711,666 1,672,420 EQUITY SHAREHOLDERS' EQUITY Called up share capital 5,574,070 5,260,069 Share premium 838,822 831,887 Other reserves (3,444,553) (3,444,553) Retained earnings (2,617,848) (1,330,117) TOTAL EQUITY 350,491 1,317,286 LIABILITIES CURRENT LIABILITIES Trade and other payables 338,264 304,731 Financial liabilities 22,911 - Interest bearing loans and - 50,403borrowings TOTAL LIABILITIES 361,175 355,134 TOTAL EQUITY AND LIABILITIES 711,666 1,672,420CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
AS AT 31 JANUARY 2013
Reverse Called up Share Merger acquisition Profit and Total Share Premium reserve reserve loss equity capital account £ £ £ £ £ £ At 1 August 5,574,070 838,822 1,157,850 (4,602,402) (2,527,987) 440,3532012 Issue of - - - - - -Equity Loss for the - - - - (89,861) (89,861)period At 31 January 5,574,070 838,822 1,157,850 (4,602,402) (2,617,848) 350,4912013 Reverse Called up Share Merger acquisition Profit and Total Share Premium reserve reserve loss equity capital account £ £ £ £ £ £ At 1 August 5,200,348 1,157,850 (4,602,402) (875,172) 880,6242011 Issue of 59,721 831,887 - - - 891,607Equity Loss for the - - - - (454,945) (454,945)period At 31 January 5,260,069 831,887 1,157,850 (4,602,402) (1,330,117) 1,317,2862012CONSOLIDATED STATEMENT OF CASHFLOWS
As at 31 January 2013 six months six months to January to January 2013 2012 (unaudited) (unaudited) £ £ Cash flows from operating activities Loss before tax (89,861) (454,945) Depreciation charges 268 2,405 Investment income - - (Increase)/decrease in inventories 44,330 (241,312) (Increase)/decrease in trade and other 80,971 48,523receivables Increase/(decrease) in trade and other 14,913 (231,983)payables Net cash from operating activities 50,621 (877,312) Cash flows from investing activities Purchase of intangible fixed assets (14,437) (31,907) Purchase of tangible fixed assets - (6,327) Net cash from investing activities (14,437) (38,234) Cash flows from financing activities New loans in the year - 109,005 Issue of equity net of costs - 891,609 Repayment of loan - (58,602) Finance interest paid (787) (2,407) Net cash from financing activities (787) 939,605 Increase/(decrease) in cash and cash 35,397 24,059equivalents Cash and cash equivalents at the beginning (48,472) 55,911of period Cash and cash equivalents at end of period (13,075) 79,970NOTES TO HALF YEARLY REPORT
1. GENERAL INFORMATION
Ceres Media International plc is a public limited company incorporated anddomiciled in the United Kingdom with its shares listed on the AIM market of theLondon Stock Exchange.
The principal activity of the Group is the development, production andprovision of 100% natural and compostable printing materials to the advertisingand point of sale markets.
The Ultimate parent company of the Group is Ceres Media International plc whoseprinciple place of business is 81 Rivington Street, London, EC2A 3AY andregistered office is 1 Charterhouse Mews, London, EC1M 6BB.
The interim financial statements for the period ended 31 January 2013(including the comparatives for the period ended 31 January 2012) were approvedby the Board of Directors on 24 April 2013. 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 2012,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 2012 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.com
2. SEGMENTAL REPORTING six six months months to to January January 2013 2012 £ £ EU 8,266 36,443 Rest of 133,398 16,389the world 141,664 52,832 3. EXCEPTIONAL ITEMSThere were no exceptional items during the period.
4. EARNINGS/(LOSS) PER SHARE
The calculation of earnings per share is based on the net result and ordinaryshares in issue during the period as follows:
six months six months to January to January 2013 2012 £ £ Loss for the financial period 89,861 454,945 Weighted average shares in issue in the 63,373,961 30,978,591period Loss per share 0.001 0.015 5. SHARE CAPITAL During the period Ceres Media International plc had the following shares inissue. Ordinary shares of 20p/1p each In issue 1 August 2012 63,373,961 Issued during the period - In issue 31 January 2013 Weighted average shares in issue in the 63,373,961periodFor further information, please contact:
Ceres Media International PLC Tel: 020 3178 5622Alex Dowdeswell/Leslie Barber Nominated Adviser, Cairn Financial Tel: 020 7148 7900Advisers LLPLiam Murray/Jo Turner Broker, XCAP Securities PLC Tel: 202 7101 7070Jon Bellis