VITA.L Regulatory News (VITA)

28 Sep 2005 07:01

Cellcast plc28 September 2005 Press Release 28 September 2005 Cellcast plc ("Cellcast" or "the Group") Maiden Interim Results Cellcast plc (AIM: CLTV.L), a global interactive digital broadcaster, todayannounces its maiden unaudited interim results for the six months ended 30 June2005. Cellcast plc acquired Cellcast UK Limited on 14 September 2005. The interimresults that follow are those of the trading entity Cellcast UK Limited, whichis now a wholly owned subsidiary of Cellcast plc. Highlights • Successful listing on AIM on 21 September 2005• Share placing raised £5.0 million of new money before expenses• Agreement signed with Top Up TV whereby Cellcast content will be broadcast during available overnight hours by the Freeview platform, providing significant opportunity to expand UK operations• Board strengthened by the appointment of Julian Paul as non-executive Chairman and Michael Neville as non-executive director• Board remains optimistic about the full year prospects Julian Paul, Chairman of Cellcast plc, said: "Cellcast plc is entering anexciting new era. The IPO funds raised will provide the Group with workingcapital to finance its future growth and raise the Group's profile in its keymarkets in Asia, America and in Europe." - Ends - For further information: Cellcast plc Emmanuelle Guicharnaud, Chief Financial Officer Tel: +44 (0) 20 7190 0300 Emmanuelle@cellcast.tv www.cellcast.com Daniel Stewart & Company Plc Marc Young, Corporate Finance Tel: +44 (0) 20 7776 6550 marc.young@danielstewart.co.uk www.danielstewart.co.uk Media enquiries: Abchurch Henry Harrison-Topham / Tania Wild Tel: +44 (0) 20 7398 7700 henry.ht@abchurch-group.com www.abchurch-group.com Notes to Editors Cellcast was launched in 2002 as a provider of interactive mobile content andparticipation television applications, which enable broadcasters, mediaventures, 3G services and mobile networks to maximize opportunities arising fromthe accelerating convergence of three ubiquitous platforms: television, theinternet and mobile telecommunications. Cellcast has pioneered innovative new TV formats and interactive programming toenable audience participation using mobile phones. At the time of launchCellcast produced two hours of live television on a daily basis. The company nowproduces over 50 hours of live UK television per day across seven channels onthe Sky platform. Over three of these are wholly owned. Cellcast also developsand distributes proprietary applications and programming for broadcast partnerswhich include Canal + in France; Future TV, LBC, MBC, Dubai Television andRotana in the Middle East; Zee TV in India; and Asia Interactive Broadcastingreaching China and South-East Asia on AsiaSat 3S. Cellcast's revenues streams are independent of both advertising and subscriptionfees. With a network of revenue sharing agreements with telecommunicationscarriers and aggregators across five continents, Cellcast receives a share ofthe call revenue every time a consumer uses a mobile or fixed-line phone toparticipate in its interactive entertainment, revenue which is retained orshared with its broadcast partners. Cellcast's programme formats and proprietaryInteractive Platform (CIP) also facilitate delivery of content to mobile phones,the internet and broadband-delivered IPTV. This enables viewers to continueparticipating in a programme away from the TV, generating 24/7 revenueopportunities. CHAIRMAN'S STATEMENT I am pleased to announce the first set of interim results since Cellcast plcjoined AIM on 21 September 2005. At the same time, we raised £5 million (beforeexpenses) for the company, and Atlas Group of Companies Limited sold £1.9million of shares, although it remains a significant investor in the company.These interim figures cover the six months to 30 June 2005 and thus pre-date theacquisition of Cellcast UK Limited by Cellcast plc and the subsequent AIMlisting of Cellcast plc. In this statement, my first as Chairman of Cellcast plc, I would first of alllike to welcome our new shareholders and thank them for supporting the company.The placing was well received which resulted in the issue being oversubscribedand meant that we were able to raise more money for the company than weoriginally had intended, and also allowed Atlas, which has been an investor forsome time, to realise part of its holding. We were delighted with the investorresponse to the company and as a consequence have an excellent institutionalshareholder base. The funds raised will enable us to grow our business in linewith the strategy set out in the admission document. In the six months ended 30 June 2005, Cellcast UK Limited incurred a loss beforetax of £539,000 on turnover of £5,838,000, in line with our expectations at thetime of the flotation. This compares with a loss before tax of £706,000 onturnover of £8,198,000 for the whole of 2004. As outlined in the admissiondocument, Cellcast has recently entered into an agreement with Top-Up TV Limitedwhereby Top-up TV has agreed to broadcast the company's content during availableovernight hours controlled by Top-up TV on the Freeview platform. Thisrepresents a significant opportunity for us to expand our operations in the UKmarket. The company continues to develop internationally with its expansion intoIndia, Argentina and Italy. Since 30 June 2005, group turnover has continued to be in line with ourexpectations, and we remain optimistic about our prospects for the full year. Julian PaulChairman 28 September 2005 CELLCAST UK LIMITED UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE SIX MONTHS ENDED 30 JUNE 2005 30 June 2005 £ Turnover 5,838,162Cost of sales (4,399,197) Gross profit 1,438,965Administrative expenses (1,971,461) Operating loss (532,496)Other interest receivable and similar income 3,211Interest payable and similar charges (10,000) Loss on ordinary activities before taxation (539,285)Tax on loss on ordinary activities (5,298) Loss on ordinary activities after taxation (544,583)Minority interests 38,399 Loss for the period (506,184) CELLCAST UK LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETAS AT 30 JUNE 2005 30 June 2005 £ Fixed assets 76,667Intangible assets 561,849Tangible assets 304,933Investments 943,449 Current assets 1,550,352Debtors 158,569Cash at bank and in hand 1,708,921 Creditors: amounts falling due within one year (2,915,107) Net current liabilities (1,206,186) Total assets less current liabilities (262,737) Creditors: amounts falling due after more than one year - (262,737) Capital and reservesCalled up share capital 632,200Share premium account 1,144,282Profit and loss account (1,996,114) Shareholders' funds - equity interests (219,632)Minority interests (43,105) (262,737) CELLCAST UK LIMITED UNAUDITED CONSOLIDATED CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 30 JUNE 2005 30 June 2005 £ £ Net cash outflow from operating activities (60,456) Returns on investments and servicing of finance Interest received 3,216 Net cash inflow for returns on investments and servicing of finance 3,216 Financial investmentPayments to acquire tangible assets (189,031) Net cash outflow for capital expenditure (189,031) Net cash outflow before management of liquid resources and financing (246,271) FinancingCapital element of finance lease contracts (9,093) Net cash inflow from financing (9,093) Decrease in cash in the period (255,364) CELLCAST UK LIMITED NOTES TO THE UNAUDITED CONSOLIDATED CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 30 JUNE 2005 1 Reconciliation of operating loss to net cash outflow from operating activities 30 June 2005 £ Operating loss (532,496) Depreciation of tangible assets 157,101 Amortisation of intangible assets 10,000 Increase in debtors (307,217) Increase in creditors 612,156 Net cash outflow from operating activities (60,456) 2 Analysis of net funds Other non-cash changes 1 January 2005 Cash flow 30 June 2005 £ £ £ £ Net Cash Cash at bank and in hand 410,706 (252,137) - 158,569 Bank overdrafts (67) (3,227) - (3,294) 410,639 (255,364) - 155,275 Finance leases (24,108) 9,093 - (15,015) Net funds 386,531 (246,271) - 140,260 3 Reconciliation of net cash flow to movement in net debt 30 June 2005 £ Decrease in cash in the period (255,364) Cash inflow from increase in debt 9,093 Change in net debt resulting from cash flows (246,271) New finance lease - Movement in net funds in the period (246,271) Opening net funds 386,531 Closing net funds 140,260 CELLCAST UK LIMITED NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2005 Basis of consolidation The consolidated profit and loss account and balance sheet include the financialstatements of the company and its subsidiary undertakings made up to 30 June2005 but exclude the results of TV You Plc. The directors of Cellcast UKLimited have considered the exemption available to them under Section 229 (2) ofthe Companies Act 1985 and confirm that in their opinion the trading results andbalance sheet of the subsidiary TV You Plc as at 30 June 2005 are not consideredmaterial to the Group for the purpose of giving a true and fair view. This information is provided by RNS The company news service from the London Stock Exchange