2018 Preliminary Results

 

 

 

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

 

 

Tuesday, 21 May 2019

 

 

Immedia Group Plc

("Immedia" or "the Group" or "the Company")

multi-media content and digital solutions provider to global businesses and organisations

 

2018 Preliminary Results

 

Immedia Group Plc (AIM: IME) today announces its preliminary results for the year ended 31 December 2018. 

 

 

"2018 delivered a substantial improvement in performance over the prior year in terms of revenue and profitability.

Our unique mix of brand engagement and creative skills is underpinning our ability to secure new and exciting business.  2019 business activity is performing in line with our expectations while we are also witnessing a pipeline of new and exciting opportunities with several key potential clients across our target verticals."

Tim Hipperson, Chairman

 

 

 

FINANCIAL HIGHLIGHTS

Ø A much-improved performance  over the prior year

Ø 32% increase in revenue to £4,686,934

Ø EBITDA profit of £262,588 (2017: loss £512,847)

Ø PBT of £106,204 (2017: loss £693,268)

Ø Cash balances increased to £369,698 (2017: £53,743)

Ø The Group remains debt free apart from finance leases totaling £77,044

 

 

OPERATIONAL HIGHLIGHTS

Ø Immedia's audience engagement strategies achieve true market traction

Ø Launched the innovative JD-X app project for JD Sports Fashion plc

Ø Expanded the reach of our multimedia content to smart devices and other audio platforms such as Amazon Alexa, Google Home, Apple Podcasts, Overcast and iHeart

Ø Dreamstream-X platform delivered a class leading broadcast audio solution to the entire Nationwide Building Society estate

Ø Landmark work for clients such as FIFA, Weir Oil and Gas, Maersk, Halliburton and Visit Visit Aberdeenshire

Ø IME geographical reach has grown on the back of client expansion and this is set to continue

 

 

"Over the last 18 months we have made considerable progress in maximising efficiencies within the Group which leaves us well placed to leverage increased engagement with current clients and the conversion of a significant pipeline of new business opportunities.

 

Our experiences in 2018 and in the year to date have reinforced our view that now is the time for Immedia's unique mix of brand engagement and creative skills.  We are in advanced dialogue with a number of key potential clients across our target verticals, specifically for the development of Omni Channel and content development in both physical and digital locations.   We expect to bring you further updates on these discussions within this financial period."

 

Bruno Brookes, Chief Executive of Immedia 

 

 

Immedia Group Plc

Preliminary results for the year ended 31 December 2018

 

 

2018 Financial Summary
	12 months ended 31 December 2018	12 months ended 31 December 2017
Revenue	£4,686,934	£3,548,689
Profit/(loss) before interest, taxation, depreciation, amortisation and impairment charges (EBITDA)	£262,588	£(512,847)
Profit/(loss) before tax	£106,204	£(693,268)
Net fair value (loss/profit) on equity investments not held for trading designated as fair value through OCI	£(112,800)	£7,800
Total comprehensive profit/(loss) for the year	£42,949	£(663,768)
Basic earnings/(loss) per share	1.13p	(4.89)p
Diluted earnings/(loss) per share	1.08p	(4.89)p
Basic pre-tax earnings/(loss) per share	0.77p	(5.05)p
Year-end balance of cash and cash equivalents	£369,698	£53,743
Net funds	£292,654	£46,687

 

 

Statement by the Chairman, Tim Hipperson

 

"The Group remains confident in its ability to leverage its unique market positioning into client engagement, incremental sales revenue and ultimately enhanced shareholder value."

 

In my 2017 statement I referred to an expected improvement in the performance of our business in the 2018 financial year.  I am gratified that this has proved to be the case and that our service offerings continue to lead the market in our sector.

 

Over the 2018 year under review Immedia witnessed the strengthening of relationships with its key clients, in particular JD Sports Fashion plc and Nationwide Building Society, for whom we delivered a substantial equipment installation programme to ensure that every branch is able to receive Nationwide Live.

 

Our experience in 2019 to date is performing in line with management expectations with some of our more traditional historic contracts reaching end of life, enabling us to focus on the newer innovative business partnerships we have been developing over the last couple of years. 

 

As a Group we deliver, day in day out, a huge range of content and services to our clients, on time and on budget.  This is a testament to the talent and dedication of every member of Immedia staff and I would like to thank every one of them.

 

The Board and management of Immedia Group continue to benefit from the commitment and talents of the entire team to deliver the Group strategy - developing a broader creative content portfolio to convert app, web based, audio platform and physical retail environments into audio and visual entertainment and engagement media properties for our clients. 

 

Our objective is to continue to build on the momentum recently generated and focus on being able to deliver sustained growth and value to all our stakeholders over the coming years.

 

 

 

 

Review by the Chief Executive, Bruno Brookes

 

The business

2018 saw Immedia's audience engagement strategies achieve true market traction.  Not only did we launch the innovative JD-X app project for JD Sports Fashion plc, we also expanded the reach of our multimedia content to smart devices and other audio platforms such as Amazon Alexa, Google Home, Apple Podcasts, Overcast and iHeart.

 

The power of our Dreamstream-X platform was harnessed to deliver a class leading broadcast audio solution to the entire Nationwide Building Society estate.  We also supplied and installed connectivity and sound systems into the Nationwide estate.

 

We are pleased to report that our geographical reach has grown as a result of our clients' own development: this has included the expansion of both the JD and Subway retail services into additional territories and we expect this trend to continue over the current financial period. 

 

We continue to produce audio and visual content of the highest class for all our clients in particular those across retail, energy and sports. 

 

Our Aberdeen production division has enjoyed a high-profile year, filming at all venues of the FIFA World Cup in Russia and producing landmark work for clients such as Weir Oil and Gas, Maersk, Halliburton and Visit Aberdeenshire.  This area of our business also showed improvement at the trading level due to enhanced top line sales and cost control measures implemented in 2017.  Although market conditions in the local economy remain challenging, we continue to work on spreading the geographical reach of our Aberdeen team to the rest of the UK and beyond.

 

Current trading and prospects

Over the last 18 months we have made considerable progress in maximising efficiencies within the Group which leaves us well placed to leverage increased engagement with current clients and the conversion of a significant pipeline of new business opportunities.  Our engagement with potential new clients is flourishing under the guidance of our new Director of Partnerships Paul Atherton.

 

Our experiences in 2018 and in the year to date have reinforced our view that now is the time for Immedia's unique mix of brand engagement and creative skills.  We are in advanced dialogue with several key potential clients across our target verticals, specifically for the development of Omni Channel and content development in both physical and digital locations. We expect to bring you further updates on these discussions within this financial period.

 

 

 

 

 

Financial review by Ross Penney, Chief Operating Officer

 

 

2018 saw an improved performance in the Group as a result of factors already highlighted - a significant one-off installation project for Nationwide Building Society, other new business coming on stream and the full year's impact of cost control measures implemented in 2017.

Summary of financial results

Having reported a very challenging 2017, it has been very encouraging to witness a turnaround from a significant pre-tax loss in the prior year to achieve a profit before tax in 2018. 

 

Revenue increased 32% on the previous year to £4,686,934 (2017: £3,548,689).  The Group reported an EBITDA profit (earnings before interest, taxation, depreciation, amortisation, impairment charges and other exceptional items) of £262,588 (2017: loss £512,847) and a profit before tax of £106,204 (2017: loss £693,268).  This equates to a pre-tax profit per share of 0.77p (2017: loss 5.05p).  The total comprehensive profit was £42,949, reflecting a reduction in the carrying value of £112,800 in our strategic investment in the AIM quoted spoken word audio platform Audioboom Group Plc (AIM: BOOM).

 

 

Reconciliation of EBITDA to statutory results
	2018	2017
	£	£
Operating profit/(loss)	110,693	(692,118)
Depreciation	93,301	120,326
Amortisation	58,594	58,945
EBITDA	262,588	(512,847)

 

 

The significant improvement in EBITDA is due to a number of factors: a significant installation contract on behalf of Nationwide Building Society as above, new business coming on stream and the impact of a full year of cost reduction measures implemented in 2017. Whilst we don't anticipate benefiting from significant one-off installation earnings in the 2019 financial year, we have taken the steps necessary to deliver substitutional and incremental revenue and margin across several market verticals.

 

Cash balances increased to £369,698 (2017: £53,743) as a result of improved EBITDA performance.

 

Consolidated statement of financial position and cash flows

Management of costs and cash remains a key focus, and in the period cash collections from customers were again improved.  Costs in our Aberdeen division have been continuously monitored and stabilised.  Together with enhanced revenue and margin performance the result has been an increase in cash to £369,698 (2017: £53,743).

 

During 2018 the Group invested £122,992 in tangible fixed assets. £82,886 of these assets are IT hardware, servers and telephone systems at Newbury and were funded by finance leases.  The Group repaid leases totalling £12,898 during the year.  The net cash inflow from Group activities was £315,955 and the Group ended the year with a cash balance of £369,698.

 

 

 

 

CONSOLIDATED INCOME STATEMENT

for the year ended 31 December 2018

 

		2018	2017
		£	£
Continuing operations
Revenue		4,686,934	3,548,689
Cost of sales		(2,166,366)	(1,759,046)
Gross profit		2,520,568	1,789,643
Administrative expenses		(2,409,875)	(2,481,761)
Profit/(loss) from operations		110,693	(692,118)
Finance income		159	202
Finance cost		(4,648)	(1,352)
Profit/(loss) before tax		106,204	(693,268)
Tax income		49,545	21,700
Profit/(loss) for the year from continuing operations		155,749	(671,568)
Earnings/(loss) per share
Basic (pence)		1.13	(4.89)
Diluted (pence)		1.08	(4.89)

 

 

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME

for the year ended 31 December 2018

		2018	2017
		£	£
Profit/(Loss) for the year		155,749	(671,568)
Items that will not be reclassified subsequently to profit or loss:
Fair value (loss)/gain on equity investments not held for trading designated as fair value through OCI		(112,800)	7,800
Total comprehensive profit/(loss) for the year		42,949	(663,768)

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 December 2018

		2018		2017
		£		£
Assets
Non-current assets
Property, plant and equipment		225,475		200,838
Intangible assets		307,505		366,099
Deferred tax assets		84,395		34,850
Financial assets		60,000		172,800
Total non-current assets		677,375		774,587
Current assets
Inventories		153,915		69,803
Trade and other receivables		643,422		519,129
Prepayments		126,857		107,915
Cash and cash equivalents		369,698		53,743
Total current assets		1,293,892		750,590
Total assets		1,971,267		1,525,177
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
Share based payment reserve		4,578		4,578
Investment valuation reserve		(30,000)		82,800
Retained losses		(7,043,745)		(7,199,494)
Total equity		218,391		175,442
Liabilities
Non-current liabilities
Finance leases		49,580		1,542
Provisions		42,500		42,500
Total non-current liabilities		92,080		44,042
Current Liabilities
Finance leases		27,464		5,514
Trade and other payables		1,511,586		1,233,522
Contract liabilities		121,746		66,657
Total current liabilities		1,660,796		1,305,693
Total liabilities		1,752,876		1,349,735
Total equity and liabilities		1,971,267		1,525,177