VITA.L Regulatory News (VITA)

Cellcast plc

("Cellcast" or the "Company")

Interim results for the six months ended 30 June 2018

The Board of Cellcast plc (AIM: CLTV) announces the group's interims results for the six months ended 30 June 2018.

Highlights

· UK interactive broadcast revenues remained broadly level at £5.44 million (H1 2017: £5.49 million)

· Revenues from overseas gaming services of £330,000 (H1 2017: £300,000)

· Profit before tax of £5,000 for the period (H1 2017: loss of £145,000)

· Earnings per share of 0.001p (H1 2017: loss per share of 0.2p)

· Core focus remains in the UK, specifically the online sector

Craig Gardiner, CEO of Cellcast plc, commented:

"Revenues in our core broadcast sector and from our overseas gaming services have remained broadly in line, however due to a reduction in cost of sales we have reported a small profit for the period. With Brexit uncertainty looming, we are focussing our efforts in our core market of the UK. In particular, we have invested in our online offering, with an emphasis on cost control and improving our margins. We therefore hope that the positive trading will carry on through the second half of the year."

For further information:

CHIEF EXECUTIVE OFFICER'S STATEMENT

Half year results

UK interactive broadcast revenues for the six months ended 30 June 2018 were £5.44 million, which was broadly in line with the same period last year (H1 2017: £5.49m). Revenue from the overseas gaming consultancy services represented £330,000 (compared to £300,000 in H1 2017).

With additional savings achieved through the group's improved online strategy, the cost of sales decreased by £174,000 to £5.51m, a reduction of 3% compared to the same period last year (H1 2017 cost of sales: £5.68m). As a result, the gross profit for the period amounted to £267,000 compared to £89,000 in H1 2017.

General and administrative costs before the forex impact for the period were £277,000 (H1 2017: £292,000). After forex gains of £56,000, the general and administrative costs amounted to £217,000 (H1 2017: £162,000).

Overall, the group's operations showed a breakeven position, with a profit before tax of £5,000. This compares to a loss before tax of £145,000 for the period ending 30 June 2017.

The post-tax loss for the period amounted to £5,000 and earnings per share of 0.001p. By comparison, during the period to 30 June 2017 the group suffered a net loss of £145,000 and negative earnings per share of 0.2p.

The group's cash and cash equivalents at 30 June 2018 stood at £978,000 compared to a balance of £862,000 at 30 June 2017.

Outlook

The economic uncertainty caused by Brexit continues to present major challenges to the media and entertainment industry, so we are planning a prudent approach until there is further clarity post March 2019.

The Company's clients in Kenya have notified us of potential reduction and delays in service payments owing to lack of clarity about the application of new taxes affecting lotteries. As a result of these uncertainties, our client's marketing has been scaled back and in the coming months we may not realise the full bonus payments that form part of our service remuneration. There is expectation that any such potential decline in the lottery activity can be off-set by revenue generated by the planned launch of new products and services in that region in the last quarter of 2018.

The group has focused a lot of effort in the UK and specifically towards the online sector, with particular emphasis on cost control and improving our margins. These efforts will continue in the coming months, further refining our product portfolio.

On the broadcast side, we have made further bandwidth savings over the summer and will be monitoring the effects of these changes over the coming months. 

Craig Gardiner

Chief Executive Officer

24 September 2018

UNAUDITED CONDENSED CONSOLIDATED STATEMENT of comprehensive income

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

In the above tables, the amounts are attributable to the equity holders of the parent.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the 6 months ended 30 June 2018

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the 6 months ended 30 June 2018

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

1. General Information

Cellcast plc is a public limited company incorporated and domiciled in the United Kingdom. Its business address is 35 Soho Square, London, W1D 3QX. The address of its registered office is The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU. Copies of this statement are available from this address and from the Company's website www.cellcast.tv.

The Company is quoted on AIM, a market operating on the London Stock Exchange PLC.

This condensed consolidated interim financial information was approved for issue on 25 September 2018.

2. Basis of preparation

This unaudited condensed consolidated interim financial information is for the six months ended 30 June 2018. This has been prepared in accordance with recognition and measurement principles of International Financial Reporting Standards (IFRS) as endorsed by the European Union and implemented in the UK. The financial information in this interim announcement is unaudited and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

The interim financial information does not include all of the information required for full annual financial statements and accordingly, whilst the interim financial information has been prepared in accordance with the recognition and measurement principles of IFRS, it cannot be construed as being in full compliance with IFRS.

The comparative financial information for the year ended 31 December 2017 does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The statutory accounts of the group for the year ended 31 December 2017 have been reported on by the Company's auditor and have been delivered to the Registrar of Companies. The auditor's report on those statutory accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement made under Section 498 of the Companies Act 2006.

The current and comparative periods to June have been prepared using accounting policies and practices consistent with those adopted in the annual financial statements for the year ended 31 December 2017 and are also consistent with those which will be adopted in the 31 December 2018 financial statements.

These financial statements are the first financial statements of Cellcast plc prepared in accordance with IFRS 9 and IFRS 15 which are effective for periods commencing on or after 1 January 2018. The reported financial position and financial performance for the previous period are not affected by the new standards.

There are no other Standards and Interpretations which were in issue but not effective at the date of authorisation of this condensed interim financial information that the directors anticipate will have a material impact on the financial statements.

The directors have carefully considered whether or not it is appropriate to adopt the going concern basis in preparing the interim financial report. The directors have reviewed the group's detailed cash forecast to ensure that the group's current working capital and credit facilities in place are sufficient for the foreseeable future. This assessment is based upon forecasts following the reduction in the revenue of the UK television business together with the continued reduction in operational costs implemented over the year; it also assumes the maintenance of existing relationships with key suppliers.

After making enquiries, the directors have concluded that the group has adequate resources to continue trading for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the interim financial report.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

2. Basis of preparation (continued)

In the financial statements for the year ended 31 December 2017 foreign exchange gains and losses on current asset investments were presented below operating profit. In the interim period to 30 June 2017 foreign exchange losses on current asset investments were shown within administrative expenses. This presentation was deemed more appropriate by the directors as these amounts relate to the group's investment activities. To ensure amounts are comparable, for the period to 30 June 2017 presented, foreign exchange losses on current asset investments of £45,015 have been reclassified from administrative expenses to be presented below operating profit.

3. Revenue

4. Earnings / (loss) per share

Basic and diluted earnings per share is based on the profit after tax and on the following weighted average number of shares in issue.

5. Foreign exchange gains and losses

Included in administrative expenses for the 6 months ended 30/06/18 are foreign currency gains of £56,378 (Audited year ended 31/12/17: losses of £74,987. 6 months ended 30 June 2018: gains of £85,433).