IMMEDIA GROUP PLC
Preliminary Statement of Results for the FY to 31 December 2012
Immedia Group Plc ("Immedia" or the "Group"), which provides bespoke radio stations and a range of in-store media solutions for retailers, today announces its preliminary financial results for the year to 31 December 2012.
Overview
· Overall 2012 was a disappointing year for the Group with a loss after tax of £150,755 on reduced revenue of £2,486,783.
· But the fall in EBITDA in 2012 compared to 2011 is entirely explained by bad debts in 2012.
· A major cost reduction and restructuring was completed in the second half of 2012, and H2 profits after tax of £40,427 have reduced H1 losses.
· Important new contracts were won including with Superdrug and we were also appointed by the new owners of GAME to continue the service.
· Improved outlook for profitability in 2013.
· The Board remains committed to the realisation of shareholder value and will take the necessary action to achieve this goal.
Financial Summary
|
12 months to 31 December 2012 |
12 months to 31 December 2011 |
|
|
|
Revenue |
£2,486,783 |
£2,968,184 |
|
|
|
(Loss)/earnings before interest, taxation , depreciation, amortisation and impairment charges (EBITDA) |
£(49,688) |
£21,383 |
|
|
|
Results from operating activities |
£(166,583) |
£(166,307) |
|
|
|
Loss before income tax |
£(167,173) |
£(164,500) |
|
|
|
Loss and total comprehensive income for the year attributable to equity shareholders of the parent |
£(150,755) |
£(142,066) |
|
|
|
Basic and diluted loss per share |
(1.10)p |
(1.04)p |
|
|
|
Year-end balance of cash and cash equivalents * |
£290,574 |
£738,150 |
* The outflows of cash in 2012 were used to repay a backlog of historic licencing liabilities, agreed a year ago after many years in dispute (£222,000 paid in 2012), to repay borrowings under the invoice financing facility (£112,000 repaid in 2012) and for one-off restructuring costs of £55,000 and unpaid debts of £73,000. After positive movements in working capital of £15,000 the overall cash reduction was £447,000 for the year giving closing cash balances of £291,000. The business expects to return to net cash generation again in 2013.
Bruno Brookes, Chief Executive of Immedia, said:
"…Our visibility to new potential clients has risen sharply, harnessing new opportunities for growth. In the second half of the year we formed a number of strategic partnerships and as a result have since launched services to four new major brands in 2012, as well as extending our Lloyds Banking Group contract.
Whilst I remain cautious about the economic landscape which affected our results for the last year, I am confident in our business as the growth in customer experience and multi sensory retailing continues."
Enquiries:
Immedia Group Plc |
|
Bruno Brookes - Chief Executive |
+44 (0) 1635 556200 |
Daniel Stewart & Company Plc |
|
Paul Shackleton |
+44 (0) 207 776 6550 |
Chairman's Statement
2012 was a disappointing year for the Group with a loss after tax of £150,755 on reduced revenue of £2,486,783.
We went into the year optimistic that we could build on the results for 2011 but two early reversals of fortune put the business on the back foot. The loss of a major contract after a long and successful partnership was a bitter blow and this was followed by Game going into administration with a bad debt adding to the consequent loss of revenue.
A major cost reduction and restructuring has followed.
The drive to win new business continued with renewed vigour and important new contracts were won including Superdrug. We were also appointed by the new owners of Game to continue the service.
Revenue from the contract wins did not come in time to significantly impact the 2012 results but will contribute in 2013.
We must be cautious in terms of the outlook for 2013. Nonetheless cash in the bank, a reduced cost base and new contracts coming on-stream early in the financial year give a degree of optimism for a return to profitability.
The Board remains committed to the realisation of shareholder value and will take the necessary action to achieve this goal.
Geoff Howard-Spink
Chairman
Chief Executive's Review
I am pleased to present our full year results for the financial year ended 31 December 2012.
2012 was set to be a much better year for Immedia following investments in new marketing tools and a bolstered sales team. However after losing two contracts due to client cost cutting and a case of administration, we faced new financial pressure to deliver return for investors.
At the half year we reported revenue of £1,133,035 and losses after tax of £191,182. In the second half we reviewed and restructured many of the costs in the business, grew our revenues to £1,353,748 and achieved an operating profit of £24,556 (or £79,426 before restructuring costs) and a profit after tax of £40,427. The restructuring helped reduce the overall loss for the year to £150,755 and will deliver a significant improvement in profitability for 2013.
On the business development side, our visibility to new potential clients has risen sharply, harnessing new opportunities for growth. In the second half of the year we formed a number of strategic partnerships and as a result have since launched services to four new major brands as well as extending our Lloyds Banking Group contract.
Whilst I remain cautious about the economic landscape which affected our results for the last year, I am confident in our business as the growth in customer experience and multi sensory retailing continues. In the meantime the company has my full commitment to delivering first class services for our clients, strategic growth and a stronger pipeline and profitability.
Bruno Brookes
Chief Executive
Consolidated statement of comprehensive income
for the year ended 31 December 2012
|
Note |
2012 |
2011 |
|
|
£ |
£ |
|
|
|
|
|
|
|
|
Revenue |
|
2,486,783 |
2,968,184 |
Cost of sales |
|
(1,038,608) |
(1,163,891) |
|
|
|
|
Gross profit |
|
1,448,175 |
1,804,293 |
|
|
|
|
Administrative expenses before depreciation, amortisation and impairment charges |
|
(1,497,863) |
(1,782,910) |
|
|
|
|
(Loss)/earnings before interest, taxation, depreciation, amortisation and impairment charges (EBITDA) |
|
(49,688) |
21,383 |
|
|
|
|
Depreciation, amortisation and impairment charges |
|
(116,895) |
(187,690) |
|
|
|
|
Results from operating activities |
|
(166,583) |
(166,307) |
|
|
|
|
Finance income |
|
1,079 |
1,807 |
Finance cost |
|
(1,669) |
- |
|
|
|
|
Net finance (cost)/income |
|
(590) |
1,807 |
|
|
|
|
Loss before income tax |
|
(167,173) |
(164,500) |
Income tax income |
|
16,418 |
22,434 |
|
|
|
|
Loss and total comprehensive income for the year attributable to equity shareholders of the parent |
|
(150,755) |
(142,066) |
|
|
|
|
Continuing and total operations |
|
|
|
Loss per share - basic and diluted |
3 |
(1.10)p |
(1.04)p |
Consolidated balance sheet
At 31 December 2012
|
|
|
2012 £ |
|
2011 £ |
|
|
|
|
|
|
Assets |
|
|
|
|
|
Property, plant and equipment |
|
|
95,814 |
|
205,112 |
Intangible assets |
|
|
215,265 |
|
229,137 |
Total non-current assets |
|
|
311,079 |
|
434,249 |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Inventories |
|
|
134,292 |
|
146,117 |
Trade and other receivables |
|
|
482,709 |
|
744,146 |
Prepayments |
|
|
74,822 |
|
89,932 |
Cash and cash equivalents |
|
|
290,574 |
|
738,150 |
Total current assets |
|
|
982,397 |
|
1,718,345 |
Total assets |
|
|
1,293,476 |
|
2,152,594 |
|
|
|
|
|
|
Equity |
|
|
|
|
|
Share capital |
|
|
1,455,684 |
|
1,455,684 |
Share premium |
|
|
3,586,541 |
|
3,586,541 |
Merger reserve |
|
|
2,245,333 |
|
2,245,333 |
Retained losses |
|
|
(6,955,549) |
|
(6,804,794) |
Total equity |
|
|
332,009 |
|
482,764 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Trade and other payables |
|
|
- |
|
150,000 |
Total non-current liabilities |
|
|
- |
|
150,000 |
|
|
|
|
|
|
Trade and other payables |
|
|
789,512 |
|
1,126,779 |
Deferred income |
|
|
171,955 |
|
393,051 |
Total current liabilities |
|
|
961,467 |
|
1,519,830 |
Total liabilities |
|
|
961,467 |
|
1,669,830 |
Total equity and liabilities |
|
|
1,293,476 |
|
2,152,594 |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated statement of changes in equity
|
Attributable to equity shareholders of the Company |
Total equity as at 31 December 2012 |
Share capital £ |
Share premium account £ |
Merger reserve £ |
Retained loss £ |
Total equity £ |
Balance at 1 January 2012 |
1,455,684 |
3,586,541 |
2,245,333 |
(6,804,794) |
482,764 |
Loss and total comprehensive income for the year |
- |
- |
- |
(150,755) |
(150,755) |
(a) Balance at 31 December 2012 |
1,455,684 |
3,586,541 |
2,245,333 |
(6,955,549) |
322,009 |
Total equity as at 31 December 2011 |
Share capital £ |
Share premium account £ |
Merger reserve £ |
Retained loss £ |
Total equity £ |
Balance at 1 January 2011 |
1,455,684 |
3,586,541 |
2,245,333 |
(6,662,728) |
624,830 |
Loss and total comprehensive income for the year |
- |
- |
- |
(142,066) |
(142,066) |
(b) Balance at 31 December 2011 |
1,455,684 |
3,586,541 |
2,245,333 |
(6,804,794) |
482,764 |
Consolidated statement of cash flows
for the year ended 31 December 2012
|
|
|
2012 £ |
2011 £ |
|
|
|
Cash flows from operating activities |
|
|
Loss for the year before income tax |
(167,173) |
(164,500) |
|
|
|
Adjustments for: |
|
|
Depreciation, amortisation and impairment charges |
116,895 |
187,690 |
Financial income |
(1,079) |
(1,807) |
Financial expense |
1,669 |
- |
Loss/(profit) on sale of property, plant and equipment |
4,562 |
(1,300) |
Decrease/(increase) in trade and other receivables and prepayments |
276,567 |
(149,828) |
Decrease/(increase) in inventories |
11,825 |
(28,260) |
(Decrease) in trade and other payables |
(595,571) |
(68,815) |
|
|
|
Net cash from operating activities |
(352,305) |
(226,820) |
|
|
|
Taxation |
|
|
Taxation |
16,418 |
22,436 |
|
|
|
|
|
|
Cash flows from investing activities |
|
|
Proceeds from sale of property, plant and equipment |
8,310 |
2,790 |
Interest received |
1,079 |
1,807 |
Acquisition of property, plant and equipment |
(5,797) |
(96,122) |
Acquisition of intangible assets |
(800) |
(3,795) |
|
|
|
Net cash from investing activities |
2,792 |
(95,320) |
|
|
|
Cash flows from financing activities |
|
|
Interest paid |
(1,669) |
- |
Amounts (repaid)/advanced under invoice financing facility |
(112,812) |
242,612 |
Repayment of borrowings |
- |
(22,000) |
|
|
|
Net cash from financing activities |
(114,481) |
220,612 |
|
|
|
Net decrease in cash and cash equivalents |
(447,576) |
(79,092) |
Cash and cash equivalents at 1 January |
738,150 |
817,242 |
|
|
|
Cash and cash equivalents at 31 December |
290,574 |
738,150 |
Notes
The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. Statutory accounts for 2011 have been delivered to the registrar of companies, and those for 2012 will be delivered in due course.
The consolidated statement of comprehensive income, consolidated balance sheet at 31 December 2012, consolidated statement of changes in equity, consolidated statement of cash flows and associated notes have been extracted from the Group's 2012 statutory financial statements upon which the auditor's opinion is unqualified and which do not include any statements under sections 498(2) or 498(3) of the Companies Act 2006.
The 2012 accounts will be delivered to the registrar of companies following the Company's Annual General Meeting. The Annual Report and Notice of Annual General Meeting will be posted to the shareholders by 22 April 2013 and will be made available on the Company's website (www.immediaplc.com) at that time.
This preliminary announcement was approved by the Board on 26 March 2013.
1 Reporting entity
Immedia Group Plc (the "Company") is a company incorporated and domiciled in the United Kingdom. The address of the Company's registered office and its principal place of business is The Old Brewery, The Broadway, Newbury, Berkshire RG14 1AU.
The consolidated financial statements of the Company as at and for the year ended 31 December 2012 comprise the Company and its subsidiaries (together referred to as the "Group"). The Group primarily is involved in marketing and communication services through radio and screen-based media together with the installation and maintenance of associated equipment.
2 Basis of preparation
The consolidated financial statements have been prepared and approved by the directors in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs").
The consolidated financial statements have been prepared in accordance with the same accounting policies adopted in the financial statements for the year to 31 December 2011.
The Directors have taken the settlement agreement made with a music licencing authority into account when reviewing forecasts of future cash flows of the Group. They have also considered the Group's prospects for winning new business and reviewed a range of possible outcomes. On the basis of current financial projections prepared up to the end of 2014, recent news of new contracts and of contract renewals, and continuing improvements in the management of costs, the Directors are satisfied that the Group has adequate resources to continue in operation for the foreseeable future and consequently the financial statements have been prepared on the going concern basis.
3 Loss per share
|
2012 Number |
2011 Number |
|
|
|
Weighted average number of shares in issue |
14,556,844 |
14,556,844 |
Less weighted average number of own shares |
(832,374) |
(832,374) |
|
|
|
Weighted average number of shares in issue for basic loss per share |
13,724,470 |
13,724,470 |
|
|
|
The basic and diluted loss per share are calculated using the after tax loss attributable to equity shareholders for the financial period of £150,755 (2011: loss of £142,066). The weighted number of shares used for the diluted loss per share is calculated after reflecting the outstanding share options throughout the year, but in accordance with IAS 33 the diluted basic loss per share is stated as the same amount as basic as there is no dilutive effect. |
