PTCM.L Regulatory News (PTCM)

16 Nov 2005 07:01

Media Steps Group PLC16 November 2005 Press Release 16 November 2005 Media Steps Group Plc ("Media Steps" or "the Group") Interim results for the six months ended 30 September 2004 Media Steps Group Plc (AIM:STEP), a provider of innovative, patented outdooradvertising for stairways in public places, announces its maiden set of interimresults for the six months ended 30 September 2005. Highlights • 250 sites now installed with Postersteps(TM) • Further significant expansion of postersteps sites planned for the next five months. • Continued focus on marketing Postersteps(TM) to the major specialist media buying agencies covering the outdoor advertising sector. Commenting on the results, Tony Jansen, Managing Director of Media Steps GroupPlc, said: "In the last six months the profile of Media Steps has changed considerably.The listing on AIM has allowed the Company to install 250 Postersteps(TM) sites,complete independent research and build our sales force. We have recently takenorders from the two largest outdoor buying agencies and as the estate expandsand the acceptance of our offering grows we are now looking forward to 2006 withconfidence." For further information: Media Steps Group Tony Jansen, Managing Director Tel: +44 (0) 1234 828 811 tony.jansen@mediasteps.co.uk James Farmer, Commercial Director james.farmer@mediasteps.co.uk www.mediasteps.co.uk Corporate Synergy Plc John Prior, Corporate Finance Tel: +44 (0) 20 7448 4400 jprior@corporatesynergy.co.uk www.corporatesynergy.co.uk Media enquiries: Abchurch Henry Harrison-Topham / Sara Dean Tel: +44 (0) 20 7398 7700 henry.ht@abchurch-group.com www.abchurch-group.com Chairman's Statement I am pleased to present my report on the results for the period from 6 February2005 to 30 September 2005. These results cover the period from incorporation tothe half year end and follow the successful flotation on the AIM market in June2005. No comparative information is available. Results and dividends The net operating loss for the period was £454,185 on turnover of £79,822.These results cover the period when the Group commenced the expansion of itsestate of innovative Postersteps(TM) advertising sites throughout the UK,including the recruitment of a dedicated sales team. No dividend isrecommended. Trading review The last eight months has witnessed a very significant change in the scale ofthe Group's operations. The Group raised £1.41 million net from the successfulequity placing in June and has utilised these proceeds to commence the build-outof the Group's estate of advertising sites (Postersteps(TM)). The installationof the 250th site covering South West Trains, Southern Trains and Thameslinknetworks was recently completed. Pending the successful outcome of negotiationsin respect of National Express and First Group we anticipate further significantexpansion of postersteps sites within the next five months. The number of sites and the coverage is an important factor to the Group'songoing strategy as this will enable the Group to tender for larger multiplesite advertising contracts, and in particular those that may require nationalcoverage. The focus on transport links is also a strategic move as it givesimmediate access to a large number of high footfall sites though a singlenegotiating process, rather than the requirement to tender for a site on a caseby case basis. In September the recruitment of a dedicated sales team based in London wasconcluded and this is showing immediate benefits in the contacts that are beingestablished. While, as with all new concepts, it is taking some time to win generalacceptance of this new media, it is extremely encouraging that companies of thepedigree of Ford, Gillette and Direct Line Insurance have utilisedPostersteps(TM) in this period. Considerable focus is being dedicated to marketing Postersteps(TM) to the majorspecialist media buying agencies covering the outdoor advertising sector. Recentbusiness wins provide us with confidence that such agencies will includePostersteps(TM) in their media plans for 2006. Prospects While the general business climate remains uncertain, considerable growth isstill being seen in the outdoor advertising sector with the most recentAdvertising Association forecast for 2005 showing seven per cent growth inoutdoor advertising expenditure. This provides a solid foundation for futuregrowth. The build up of sales has however been slower than anticipated and it isunlikely that the Group will meet market expectations for the current 14 monthstatutory period ending 31 March 2005. I anticipate providing a further tradingupdate following our AGM in December. Annual general meeting Notice of an Annual General Meeting to be held at the offices of Stringer SaulLLP, 17 Hanover Square, London, W1S 1HU, on Friday 16 December 2005 at 11.00a.m. is being dispatched to Shareholders. The notice includes resolutions tore-appoint directors and to renew their powers under sections 80 and 89 of TheCompanies Act 1985 to allot securities. Conclusion I would like to thank my colleagues and our employees for their efforts in thisperiod. We are now looking forward to 2006 with confidence as the acceptance ofour product offering grows and as the reach of the estate expands. Copies of this statement and the notice of the Annual General Meeting areavailable at the registered office of Media Steps Group Plc, The Corn Barn,Spring Lane, Stagsden, Bedfordshire MK43 8SE. Neil McClureChairman15 November 2005 UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE 8 MONTH PERIOD ENDED 30 SEPTEMBER 2005 30 Sept 2005 £ Turnover 79,822Cost of sales (60,488) Gross profit 19,334Administrative expenses (473,519) Operating loss (454,185)Other interest receivable and similar income 22,413Interest payable and similar charges (8,500) Loss on ordinary activities before taxation (440,272)Tax on loss on ordinary activities - Loss on ordinary activities after taxation (440,272)Minority interests (668) Loss for the period (440,940) Basic EPS (£0.008) Diluted EPS (£0.0078) UNAUDITED CONSOLIDATED BALANCE SHEETAS AT 30 SEPTEMBER 2005 30 Sept 2005 £ Fixed assetsIntangible assets 148,782Tangible assets 115,244Goodwill on consolidation 640,218 904,244 Current assetsDebtors 125,188Cash at bank and in hand 835,908 961,096 Creditors: amounts falling due within one year (207,184) Net current assets 753,912 Total assets less current liabilities 1,658,156 Creditors: amounts falling due after more than one year 366,667 1,291,489 Capital and reservesCalled up share capital 720,000Share premium account 1,022,315Profit and loss account (440,940) Shareholders' funds - equity interests 1,301,375Minority interests (9,886) 1,291,489 UNAUDITED CONSOLIDATED CASH FLOW STATEMENTFOR THE 8 MONTH PERIOD ENDED 30 SEPTEMBER 2005 30 September 2005 £ £ Net cash outflow from operating activities (401,091) Returns on investments and servicing of financeInterest paid (8,500)Interest received 22,413 Net cash inflow for returns on investments and servicing of finance 13,913 Financial investmentPayments to acquire tangible assets (130,016)Payments to acquire intangible assets (151,282) Net cash outflow for capital expenditure (281,298) Net cash outflow before management of liquid resources and financing (668,476) FinancingCapital element of finance lease contracts 6,174Loans 76,667Loan notes 330,000Share capital issued (net of expenses) 1,091,543 Net cash inflow from financing 1,504,384 Increase in cash in the period 835,908 NOTES TO THE UNAUDITED CONSOLIDATED CASH FLOW STATEMENTFOR THE 8 MONTH PERIOD ENDED 30 SEPTEMBER 2005 1 Reconciliation of operating loss to net cash outflow from operating activities 30 Sept 2005 £ Operating loss (454,185) Depreciation of tangible assets 14,772 Amortisation of intangible assets 2,500 Increase in debtors (125,188) Increase in creditors 161,010 Net cash outflow from operating activities (401,091) 2 Analysis of net funds Other non- 6 Feb Cash cash 30 Sept 2005 Flow changes 2005 £ £ £ £ Net Cash Cash at bank and in hand - 835,908 - 835,908 - 835,908 - 835,908 Finance leases - (6,174) - (6,174) Loans - (76,667) (76,667) Loan notes - (330,000) (330,000) Net funds - 423,067 - 423,067 3 Reconciliation of net cash flow to movement in net debt 30 Sept 2005 £ Increase in cash in the period 835,908 Cash inflow from increase in debt (330,000) Change in net debt resulting from cash flows 505,908 Loans acquired with subsidiary (76,667) New finance lease (6,174) Movement in net funds in the period 423,067 Opening net funds - Closing net funds 423,067 4 Basis of Preparation The Interim figures have not been audited. The interim financial statements do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985 and were approved by the Directors on 15th November 2005. The earnings per share are calculated on the basis of the weighted average of shares in issue during the period being 54,457,627. 5 Copies of this statement are available at the registered office of Media Steps Group Plc, The Corn Barn, Spring Lane, Stagsden, Bedfordshire MK43 8SE or from www.mediasteps.co.uk. This information is provided by RNS The company news service from the London Stock Exchange