TIDMCLTV
RNS Number : 9832M
Cellcast plc
03 June 2010
Cellcast plc
Final results for year ended 31 December 2009
HIGHLIGHTS
· Revenues increased by 5.1% to GBP16.8 million, despite a difficult
trading environment across the broadcast industry
· Cellcast's continued substantial investment in additional digital TV
distribution channels was fully expensed during the year, resulting in an
operating loss of GBP2.2 million (2008: loss of GBP0.6 million)
· Loss of the year after taxation of GBP1.6 million (2008: profit of GBP0.3
million). Loss per share of 2.1p (2008: profit per share of 0.4p)
· Significant operating savings achieved through renegotiating bandwidth
costs and implementing a range of costs saving initiatives in the production and
programming departments
· Technology division continued to deliver innovative applications and
major systems solutions that are improving margins and creating incremental
revenue streams in the UK and licensing opportunities abroad
· Cellcast Asia Holdings, the Company's 37.5% associate company, reported
substantial revenue and earnings growth driven by continued mobile subscriber
growth in India (exceeding 10 million per month)
· Introduction of new applications and services and investment in new
distribution on Freeview deliver UK traffic, margin growth and positive results
in April and May 2010
Julian Paul, Chairman of Cellcast plc, commented:
"We are pleased to report that our 2009 capacity investments and our decision to
expense these costs to the detriment of 2009 earnings have already begun to pay
off. As of April 2010, we began monetizing both the the Freeview capacity and
the new services and applications in which we have been investing. As a
consequence the group's performance was positive during both April and May, a
trend which we expect to continue throughout the remainder of 2010. Lastly, but
significantly, Cellcast Asia Holdings, which had a remarkable 2009, continues to
perform well. The Directors look forward to reporting more fully on current year
progress at the 2010 interim announcement stage."
For further information:
+--------------------+-----------------+
| Cellcast | |
| plc | |
+--------------------+-----------------+
| Andrew | Tel: |
| Wilson, | +44 |
| CEO | (0) 20 |
| andrew@cellcast.tv | 7190 0300 |
| | www.cellcast.tv |
+--------------------+-----------------+
+--------------+-----------+
| Allenby | |
| Capital | |
| Limited | |
| (Nominated | |
| Adviser) | |
+--------------+-----------+
| Nick | Tel: |
| Naylor/James | +44 |
| Reeve | (0) 20 |
| | 3328 5656 |
+--------------+-----------+
Chairman's statement
2009 Results
Revenue for the year ended 31 December 2009 was GBP16.8 million, an increase of
5.1% on 2008's revenue of GBP16.0 million. Substantially all revenue was
generated from interactive television applications in the UK. As indicated in
our trading update in December 2009, the group has been continuing its strategy
of investing substantially in additional distribution channels on both Freesat
and, more specifically, on Freeview. Whilst the board believes this expenditure
to be of a capital nature with benefits to be recognised in 2010 and beyond, we
have decided to take a conservative approach and not capitalise such
expenditures or defer the costs. As a consequence of this, the group recorded an
operating loss for the year of GBP2.2 million compared to a loss of GBP568,000
in 2008. This operating loss was partially offset by the group's share of the
profits of Cellcast Asia Holdings and R & D tax credits. The total loss for the
year was therefore GBP1.6 million compared to a profit of GBP333,000 in 2008, a
loss per share of 2.1p compared to 2008 earnings per share of 0.4p. No dividend
is proposed by the Board.
Cellcast Asia Holdings
As previously announced, Cellcast Asia Holdings ("CAH"), in which the group has
a 37.5% interest, reported a significant increase in earnings in 2009. CAH had
an unaudited profit of GBP1.2 million in 2009 of which the group recognised
GBP451,068 as its share of earnings compared to a loss of approximately GBP1
million in 2008 of which the group recognized a loss of GBP342,498. This
reflects CAH's rollout of new billing solutions which increased the yield on
existing programming, the introduction of new formats and the new deals with
broadcasters. CAH has also benefited from the continued rapid growth of the
Indian mobile telephone market which has expanded its target audience.
At 31 December 2009, the carrying value of the group's investment in CAH was
GBP692,000. CAH forecasts continued growth through 2010 with increased
distribution on the national DTH platform and greater penetration in regional
markets as Hindi production expands into local languages such as Urdu and Tamil.
The current profitability of and future prospects for CAH easily support the
carrying value of the investment. It is clear that the group has a substantial
unrealised value in its CAH investment (which is cash neutral) and it is the
group's intention, where possible, to make further partial realisations of this
investment to provide funding for the group's additional ventures in the UK and
other territories.
Overheads
The group continues to reduce the level of operating overheads and streamline
production output. Personnel costs remain the group's largest expense, and
further progress was made during the year in reducing these. This combined with
the relocation of all the UK activities into single premises in Great Portland
Street has resulted in a reduction in group overheads to around GBP85,000 per
month with some relatively minor further savings still to come.
Funding
The group continues to have funding facilities of GBP450,000 composed of a
GBP150,000 overdraft and a GBP300,000 recourse factoring facility. Also during
the year the group took on an additional GBP200,000 loan facility from Headstart
Global which was used principally to repay the maturing convertible loan notes
held by Headstart. The new facility (which is repayable in three tranches during
2010) is not convertible but the group granted Headstart a warrant over 3
million Ordinary shares at 2.75p per share as part of the new facility. The
combination of available facilities and the prospect of net cash generative UK
trading supports the presentation of the accounts on a going concern basis.
Outlook
During the first quarter of 2010, the UK operations continued to incur losses,
as in 2009, due to investments in capacity that the group believes will provide
future value. However, in April 2010, we began monetizing the Freeview capacity
in which we have been investing. As a consequence the group's performance was
positive during both April and May, a trend which we expect to continue
throughout the remainder of 2010. Lastly, but significantly, CAH continues to
perform well. The Directors look forward to reporting more fully on current year
progress at the 2010 interim announcement stage.
Julian Paul
Chairman
2nd June 2010
Review of Operations
Group overview
The group's core business continues to be the distribution of interactive
television throughout the United Kingdom and its principal focus remains a
commitment to sustainable future profitability driven by a combination of proven
and innovative content, robust cost management, and expanded distribution.
During the year under review, despite facing extraordinary market conditions in
common with the rest of the media and entertainment industries, consumer demand
for the group's interactive formats proved resilient. Indeed, despite the
downturn in the global TV market, the group's extensive portfolio of
applications, formats and programmes continued to serve it well, and, when
combined with the progressive solutions developed by the technology division,
benefited the company's operations across multiple delivery platforms.
UK Operations
The group remains a leading provider of participation television programming in
the United Kingdom, which has the highest level of digital television
penetration in Europe (88%) and a substantial multichannel environment.
In 2009 the core element of management's strategy was to secure a return to
profitability by realigning and expanding distribution of the group's services.
The realignment of channels, negotiations with bandwidth suppliers, and
technical efficiencies, reduced operating overheads on Sky, for example, from
GBP900,000 per month in April 2009 to GBP600,000 by April 2010 or a projected
annual saving of over GBP3 million. A significant portion of these resources
have been redeployed to other platforms which will provide expanded reach and
relatively higher yields. In addition, in an important step to manage overheads,
all UK operations were consolidated into a single London production centre which
permitted a commensurate decline in staffing costs, efficiencies in production
processes and the deployment of new technologies across all channels.
During the year, the group produced over 2,500 hours of live interactive
television per month distributed across key digital platforms including Sky
Digital, Freeview and Freesat. The substantial front-end investment in increased
channel capacity provides both strategic distribution and long term competitive
benefits. Freeview is now the main digital TV service in 10 million households,
and over 18 million households use Freeview on at least one TV set in the home.
Over 9.7 million households subscribe to Sky Digital and Freesat is now in over
1 million homes. In 2009 the principal source of revenues continued to be
derived from audience participation with the group's live television
programming, and increasingly via the web and mobile services, providing users
with access to our content 24-hours a day. This represents a successful
implementation of the often discussed but seldom achieved 360 degree strategy of
content monetisation.
International Operations
The group's 37.5% owned associate company in India, Cellcast Asia Holdings
("CAH"), experienced a strong and profitable performance in the last year. In
January 2010 the company was a recipient of a Red Herring 100 Global Award as
one of the world's top 100 private technology companies, an award that
recognises innovation, management quality, and market positioning and growth
opportunity. Such prestigious recognition also validates Cellcast UK's
technology and formats, which form the core of CAH's platform.
CAH is now a clear leader in the participation TV sector in India both by
traffic volume and revenue, and CAH is well positioned for significant growth as
sector leader in a market that continues to expand rapidly. Despite total mobile
penetration in India in excess of 530 million subscribers, over 10 million new
subscribers are added every month, making India the second largest market in the
world after China (and 8 times the size of the UK subscriber market). CAH (which
has a 31 March year end) grew revenue from US$2 million in the year 2008/09 to
US$8.4 million in 2009/10, and turned a loss in 2008/09 into an unaudited profit
of US$2 million in 2009/10.
CAH is expected to deliver a strong first half in 2010, despite the disruption
to viewing and subsequent reduction in revenues that affects all Indian
broadcasters other than those broadcasting the India Premier League cricket
series. With mobile penetration expected to reach 745 million by the end of 2010
there should be continued organic growth in the yield from CAH's existing output
and a larger audience for new formats.
Cellcast Middle East ("CME") continued to offer premium telephony billing
services to regional broadcasters and maintains a network of direct agreements
with multiple GSM operators across the region covering Lebanon, Syria, Jordan,
Bahrain, Yemen, Kuwait and Iraq plus via strategic partners in Saudi Arabia,
Egypt, Morocco and Tunisia. In 2009 CME increased its regional coverage through
new direct agreements with Wataniya Palestine and Vodafone Qatar. CME managed
premium SMS solutions and on-screen interactive features for the original live
interactive game show "Wanted", as well as for the well-known formats "Deal or
No Deal" and "Studio Fan". In addition to its original business of providing SMS
services to regional broadcasters, CME is leveraging its network to provide
billing solutions to internet companies focussed primarily on online games, a
sector enjoying strong growth in the region. CME has also recently diversified
into mobile marketing, implementing campaigns for major international brands
such as L'Oreal and Nokia. CME has value beyond Cellcast UK's minority 18% stake
in the business as it provides us with preferential access to a network of
billing agreements which can support the regional satellite TV broadcasting
initiatives under consideration.
The success of Cellcast's Indian venture evidences the inherent value of our
model and technology. As a result we have been approached to license our
technology and formats within a number of other international markets which we
are considering on a case by case basis provided such ventures require minimal
investment and can be managed within our current resources.
Technology Division
During the year under review, attention was focussed on operational solutions,
analytical systems and platform projects.
On the operational side, two major system upgrades were delivered. The first was
the final stage of the dark fibre project that went live in June 2009. This
enabled the group to migrate all services from externally managed circuits to
in-house management. Working with partners Arqiva, Globecast and AboveNet, this
migration realised significant cost savings and enabled the group to expand the
number of broadcast streams it can support.
The upgrade to internal systems for broadcast, playout and monitoring began in
2009. All aspects of the broadcast paths were overhauled, culminating in
decisions on new playout and graphics systems as well as the design and
implementation of completely new Master Control Room and compliance monitoring
system.
Work on analytical systems centred on the implementation of Nucleus (formerly
Eagle Eye), a bespoke customer relationship management and enterprise resource
planning system designed to support the growth of individual business units and
increase average revenue per user. Nucleus uses artificial intelligence to mine
CMS data and individual consumer behaviour to trigger customised revenue
generating marketing campaigns. The evolution of this project led to the
development of a 'software as a service' platform that directly links all
providers.
There were a number of initiatives among the platform projects. Development
continued on the Cellcast Interactive Platform, which was redeployed as a Cloud
based solution in 2009. The investment and time put into the MDS, CMS and NAS
systems during 2008 led to the BOIP (Broadcast over IP) project being initiated
in 2009 and continued into 2010. This project is intended to fundamentally
change the entire broadcast infrastructure, moving away from traditional
hardware-based systems to a software-based system from camera to broadcast.
The year saw the first implementation of the Mailcast project with the roll-out
of Cardfish (www.cardfish.com). Mailcast brings together elements of internet
video, video customisation and telephony to provide an online viral interactive
storyboarding system utilising an innovative e-card process. In the coming
months Mailcast will be deployed within Cellcast's portfolio of services. In
addition we believe there is a ready market for licensing this technology to
third-party marketing companies and content providers.
Outlook for 2010
The realignment and expansion of the group's services across the Sky Digital,
Freeview and Freesat platforms has been costly and taken time, but management
believes that it has achieved the right distribution mix and market coverage to
optimise yield. The fruits of this restructuring were a 48% year-on-year
increase in SMS traffic 13% year-on-year increase in IVR traffic in April 2010
and a 10% year-on-year increase in Web-based transactions. This translated in to
a significant increase in revenue which led to the group achieving positive
results in April and May.
In 2010, the group will introduce Nucleus across all its operations and expects
to offer it as a service to other companies in the sector. The deployment of the
first stage of this platform is already increasing customer retention and
significantly increasing average revenue per user by boosting cross-selling
opportunities. Research and development continues on new mobile and telephony
products, with a deployment programme for a number of new iPhone applications.
The group will continue to develop innovative products and services to meet the
challenges and growth opportunities presented by the expansion of digital
television and the convergence of the web, TV and telephony. The group's proven
expertise in the development of multimedia services and formats, and its strong
marketing base combining the reach of its TV channels and growing mobile
database, provide it with a powerful platform. Having grown revenues in 2009
despite the unprecedented economic situation and a major restructuring of its
services and distribution, the group both maintains a leading position in the UK
interactive services industry and anticipates continued growth throughout 2010.
Andrew WilsonBertrand Folliet
Chief Executive Officer Chief
Operating Officer
2nd June 2010 2nd June
2010
Consolidated statement of comprehensive income
+------------------------------------------+--+----+---------+--+--------------+
| | | Year ended 31 December |
+------------------------------------------+-------+---------------------------+
| | | 2009 | | 2008 |
+------------------------------------------+--+--------------+--+--------------+
| | | GBP | | GBP |
+------------------------------------------+--+--------------+--+--------------+
| Revenue | | 16,810,064 | | 15,994,412 |
+------------------------------------------+--+--------------+--+--------------+
| Cost of sales | | (17,121,563) | | (14,619,887) |
+------------------------------------------+--+--------------+--+--------------+
| Gross (loss)/profit | | (311,499) | | 1,374,525 |
+------------------------------------------+--+--------------+--+--------------+
| Operating costs and expenses: | | | | |
+------------------------------------------+--+--------------+--+--------------+
| General and administrative | | (1,196,883) | | (1,369,172) |
+------------------------------------------+--+--------------+--+--------------+
| Share option expense | | (17,297) | | (56,619) |
+------------------------------------------+--+--------------+--+--------------+
| Amortisation & depreciation | | (704,672) | | (516,587) |
+------------------------------------------+--+--------------+--+--------------+
| Total operating costs and expenses | | (1,918,852) | | (1,942,378) |
| | | | | |
+------------------------------------------+--+--------------+--+--------------+
| Operating loss | | (2,230,351) | | (567,853) |
+------------------------------------------+--+--------------+--+--------------+
| | | | | |
+------------------------------------------+--+--------------+--+--------------+
| Profit on disposal of channels | | - | | 1,207,275 |
+------------------------------------------+--+--------------+--+--------------+
| Interest receivable & similar income | | 22 | | 2,914 |
+------------------------------------------+--+--------------+--+--------------+
| Interest payable and similar charges | | (101,923) | | (120,023) |
+------------------------------------------+--+--------------+--+--------------+
| Share of profit / (loss) in associates | | 451,068 | | (342,498) |
+------------------------------------------+--+--------------+--+--------------+
| (Loss) / profit before tax | | (1,881,184) | | 179,815 |
+------------------------------------------+--+--------------+--+--------------+
| | | | | |
+------------------------------------------+--+--------------+--+--------------+
| Current taxation | | | | |
+------------------------------------------+--+--------------+--+--------------+
| R & D tax credit | | 270,747 | | 153,313 |
+------------------------------------------+--+--------------+--+--------------+
| Total taxation | | 270,747 | | 153,313 |
+------------------------------------------+--+--------------+--+--------------+
| | | | | |
+------------------------------------------+--+--------------+--+--------------+
| (Loss) / profit for the year | | (1,610,437) | | 333,128 |
+------------------------------------------+--+--------------+--+--------------+
| | | | | |
+------------------------------------------+--+--------------+--+--------------+
| Other comprehensive income | | | | |
+------------------------------------------+--+--------------+--+--------------+
| Exchange difference on translating | | (14,057) | | 41,234 |
| foreign operations | | | | |
+------------------------------------------+--+--------------+--+--------------+
| | | | | |
+------------------------------------------+--+--------------+--+--------------+
| Total comprehensive income attributable | | (1,624,494) | | 374,362 |
| to the owners of the parent | | | | |
+------------------------------------------+--+--------------+--+--------------+
| | | | | |
| (Loss) / earnings per share | | | | |
+------------------------------------------+--+--------------+--+--------------+
| Basic & diluted | | (2.1)p | | 0.4p |
+------------------------------------------+--+--------------+--+--------------+
| | | | | |
+------------------------------------------+--+--------------+--+--------------+
| | | | | | |
+------------------------------------------+--+----+---------+--+--------------+
Consolidated statement of financial position
As at 31 December
+---------------------------------+-------+-------------+-------+-------------+
| | | 2009 | | 2008 |
| Assets | | GBP | | GBP |
+---------------------------------+-------+-------------+-------+-------------+
| Non-current assets | | | | |
+---------------------------------+-------+-------------+-------+-------------+
| Intangible assets | | 2,128,419 | | 2,460,596 |
+---------------------------------+-------+-------------+-------+-------------+
| Property, plant and equipment | | 179,813 | | 327,068 |
+---------------------------------+-------+-------------+-------+-------------+
| Investments in associates | | 691,806 | | 254,795 |
+---------------------------------+-------+-------------+-------+-------------+
| | | 3,000,038 | | 3,042,459 |
+---------------------------------+-------+-------------+-------+-------------+
| Current assets | | | | |
+---------------------------------+-------+-------------+-------+-------------+
| Trade and other receivables | | 2,365,352 | | 2,999,339 |
+---------------------------------+-------+-------------+-------+-------------+
| Cash and cash equivalents | | 199,556 | | - |
+---------------------------------+-------+-------------+-------+-------------+
| | | 2,564,908 | | 2,999,339 |
+---------------------------------+-------+-------------+-------+-------------+
| Total assets | | 5,564,946 | | 6,041,798 |
+---------------------------------+-------+-------------+-------+-------------+
| | | | | |
+---------------------------------+-------+-------------+-------+-------------+
| Capital and reserves | | | | |
+---------------------------------+-------+-------------+-------+-------------+
| Called up share capital | | 2,265,398 | | 2,265,398 |
+---------------------------------+-------+-------------+-------+-------------+
| Share premium account | | 5,498,626 | | 5,498,626 |
+---------------------------------+-------+-------------+-------+-------------+
| Merger reserve | | 1,300,395 | | 1,300,395 |
+---------------------------------+-------+-------------+-------+-------------+
| Cumulative translation reserve | | 22,018 | | 36,075 |
+---------------------------------+-------+-------------+-------+-------------+
| Warrant Reserve | | 41,190 | | - |
+---------------------------------+-------+-------------+-------+-------------+
| Retained earnings | | (8,401,326) | | (6,808,186) |
+---------------------------------+-------+-------------+-------+-------------+
| Equity attributable to owners | | 726,301 | | 2,292,308 |
| of the parent | | | | |
+---------------------------------+-------+-------------+-------+-------------+
| Liabilities | | | | |
+---------------------------------+-------+-------------+-------+-------------+
| Current liabilities | | | | |
+---------------------------------+-------+-------------+-------+-------------+
| Trade and other payables | | 4,683,435 | | 3,502,193 |
+---------------------------------+-------+-------------+-------+-------------+
| Borrowings | | 155,210 | | 247,297 |
+---------------------------------+-------+-------------+-------+-------------+
| Total liabilities | | 4,838,645 | | 3,749,490 |
+---------------------------------+-------+-------------+-------+-------------+
| Total equity and liabilities | | 5,564,946 | | 6,041,798 |
+---------------------------------+-------+-------------+-------+-------------+
The financial statements were approved and authorised for issue by the board on
2nd June 2010.
Andrew WilsonEmmanuelle Guicharnaud
Chief Executive Officer
Finance Director
2nd June 2010
2nd June 2010
Consolidated statement of changes in equity for the year ended 31 December 2009
+---------------+-----------+---+-------+-----------+-------------+---------+-------------+-----------------+
| | | Amounts attributable to the owners of the parent |
+---------------+---------------+---------------------------------------------------------------------------+
| | | | | Cumulative | | | |
| | Share | Share | Merger | Translation | Warrant | Retained | Total |
| | Capital | Premium | Reserve | Reserve | Reserve | Earnings | |
+---------------+-----------+-----------+-----------+-------------+---------+-------------+-----------------+
| | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
+---------------+-----------+-----------+-----------+-------------+---------+-------------+-----------------+
| Balance at | 2,265,398 | 5,498,626 | 1,300,395 | 36,075 | - | (6,808,186) | 2,292,308 |
| 1 January | | | | | | | |
| 2009 | | | | | | | |
+---------------+-----------+-----------+-----------+-------------+---------+-------------+-----------------+
| Loss for | - | - | - | - | - | (1,610,437) | (1,610,437) |
| the year | | | | | | | |
| | | | | | | | |
+---------------+-----------+-----------+-----------+-------------+---------+-------------+-----------------+
| Exchange | - | - | - | (14,057) | - | - | (14,057) |
| difference | | | | | | | |
| on | | | | | | | |
| translating | | | | | | | |
| foreign | | | | | | | |
| operations | | | | | | | |
+---------------+-----------+-----------+-----------+-------------+---------+-------------+-----------------+
| Total | - | - | - | (14,057) | - | (1,610,437) | (1,624,494) |
| comprehensive | | | | | | | |
| income | | | | | | | |
+---------------+-----------+-----------+-----------+-------------+---------+-------------+-----------------+
| Transactions | | | | | | | |
| with owners | | | | | | | |
+---------------+-----------+-----------+-----------+-------------+---------+-------------+-----------------+
| - Warrant | - | - | - | - | 41,190 | - | 41,190 |
| issue | | | | | | | |
+---------------+-----------+-----------+-----------+-------------+---------+-------------+-----------------+
| - Equity | - | - | - | - | | 17,297 | 17,297 |
| settled | | | | | | | |
| share-based | | | | | | | |
| payment | | | | | | | |
| charge | | | | | | | |
| | | | | | | | |
+---------------+-----------+-----------+-----------+-------------+---------+-------------+-----------------+
| Total of | | | | | | | |
| transactions | - | - | - | - | 41,190 | 17,297 | 58,487 |
| with owners | | | | | | | |
+---------------+-----------+-----------+-----------+-------------+---------+-------------+-----------------+
| Balance at | 2,265,398 | 5,498,626 | 1,300,395 | 22,018 | 41,190 | (8,401,326) | 726,301 |
| 31 | | | | | | | |
| December | | | | | | | |
| 2009 | | | | | | | |
+---------------+-----------+-----------+-----------+-------------+---------+-------------+-----------------+
| | | | | | | | | |
+---------------+-----------+---+-------+-----------+-------------+---------+-------------+-----------------+
Consolidated statement of changes in equity for the year ended 31 December 2008
+---------------+-----------+-----------+-----------+-------------+-------------+----------+----------+-----------+--+
| | Amounts attributable to the owners of the parent | | | |
+---------------+--------------------------------------------------------------------------+----------+-----------+--+
| | | | | Cumulative | | | | | |
| | Share | Share | Merger | Translation | Retained | | | Total | |
| | Capital | Premium | Reserve | Reserve | Earnings | | | | |
+---------------+-----------+-----------+-----------+-------------+-------------+----------+----------+-----------+--+
| | GBP | GBP | GBP | GBP | GBP | | | GBP | |
+---------------+-----------+-----------+-----------+-------------+-------------+----------+----------+-----------+--+
| Balance at 1 | 2,265,398 | 5,498,626 | 1,300,395 | (5,159) | (7,197,933) | | | 1,861,327 | |
| January 2008 | | | | | | | | | |
+---------------+-----------+-----------+-----------+-------------+-------------+----------+----------+-----------+--+
| Profit for | - | - | - | - | 333,128 | | | 333,128 | |
| the year | | | | | | | | | |
| | | | | | | | | | |
+---------------+-----------+-----------+-----------+-------------+-------------+----------+----------+-----------+--+
| Exchange | - | - | - | 41,234 | - | | | 41,234 | |
| difference on | | | | | | | | | |
| translating | | | | | | | | | |
| foreign | | | | | | | | | |
| operations | | | | | | | | | |
+---------------+-----------+-----------+-----------+-------------+-------------+----------+----------+-----------+--+
| Total | - | - | - | 41,234 | 333,128 | | | 374,362 | |
| comprehensive | | | | | | | | | |
| income | | | | | | | | | |
+---------------+-----------+-----------+-----------+-------------+-------------+----------+----------+-----------+--+
| Transactions | - | - | - | - | 56,619 | | | 56,619 | |
| with owners - | | | | | | | | | |
| Equity | | | | | | | | | |
| settled | | | | | | | | | |
| share-based | | | | | | | | | |
| payment | | | | | | | | | |
| charge | | | | | | | | | |
| | | | | | | | | | |
+---------------+-----------+-----------+-----------+-------------+-------------+----------+----------+-----------+--+
| Balance at 31 | 2,265,398 | 5,498,626 | 1,300,395 | 36,075 | (6,808,186) | | | 2,292,308 | |
| December 2008 | | | | | | | | | |
+---------------+-----------+-----------+-----------+-------------+-------------+----------+----------+-----------+--+
| |
| |
| |
+---------------+-----------+-----------+-----------+-------------+-------------+----------+----------+-----------+--+
Consolidated cash flow statement
+----------------------------------------------+--+-----------+-+-----------+
| | | Year ended 31 |
| | | December |
+----------------------------------------------+--+-------------------------+
| Net increase / (decrease) in cash and cash | | 2009 | | 2008 |
| equivalents | | | | |
+----------------------------------------------+--+-----------+-+-----------+
| | | GBP | | GBP |
+----------------------------------------------+--+-----------+-+-----------+
| | | | | |
+----------------------------------------------+--+-----------+-+-----------+
| Net cash inflow / (outflow) from operations | a| 392,665 | | (424,740) |
+----------------------------------------------+--+-----------+-+-----------+
| | | | | |
+----------------------------------------------+--+-----------+-+-----------+
| Income taxes | | 270,747 | | 153,313 |
+----------------------------------------------+--+-----------+-+-----------+
| | | | | |
+----------------------------------------------+--+-----------+-+-----------+
| Interest received | | 22 | | 2,914 |
+----------------------------------------------+--+-----------+-+-----------+
| | | | | |
+----------------------------------------------+--+-----------+-+-----------+
| Net cash inflow/(outflow) from operating | | 663,434 | | (268,513) |
| activities | | | | |
+----------------------------------------------+--+-----------+-+-----------+
| | | | | |
+----------------------------------------------+--+-----------+-+-----------+
| Net cash (outflow) / inflow from investing | b| (225,240) | | 601,942 |
| activities | | | | |
+----------------------------------------------+--+-----------+-+-----------+
| | | | | |
+----------------------------------------------+--+-----------+-+-----------+
| Net cash used in financing activities | c| (169,916) | | (450,918) |
+----------------------------------------------+--+-----------+-+-----------+
| | | | | |
+----------------------------------------------+--+-----------+-+-----------+
| Net increase / (decrease) in cash and cash | | 268,278 | | (117,489) |
| equivalents | | | | |
+----------------------------------------------+--+-----------+-+-----------+
| | | | | |
+----------------------------------------------+--+-----------+-+-----------+
| Cash and cash equivalents at beginning of | | (68,722) | | 7,533 |
| period | | | | |
+----------------------------------------------+--+-----------+-+-----------+
| | | | | |
+----------------------------------------------+--+-----------+-+-----------+
| Exchange gains | | | | 41,234 |
| | | - | | |
+----------------------------------------------+--+-----------+-+-----------+
| | | | | |
+----------------------------------------------+--+-----------+-+-----------+
| Cash and cash equivalents at end of period | | 199,556 | | (68,722) |
+----------------------------------------------+--+-----------+-+-----------+
Cash flows
Year ended 31 December
+----------+------------------------------------------------+-------------+-------------+
| | | 2009 | 2008 |
+----------+------------------------------------------------+-------------+-------------+
| | | GBP | GBP |
+----------+------------------------------------------------+-------------+-------------+
| | Reconciliation of net (loss) / profit to net | | |
| a | cash outflow from operating activities | | |
+----------+------------------------------------------------+-------------+-------------+
| | | | |
+----------+------------------------------------------------+-------------+-------------+
| | (Loss) / profit before tax | (1,881,184) | 179,815 |
+----------+------------------------------------------------+-------------+-------------+
| | Interest receivable and similar income | (22) | (2,914) |
+----------+------------------------------------------------+-------------+-------------+
| | Interest payable and similar charges | 101,923 | 120,023 |
+----------+------------------------------------------------+-------------+-------------+
| | Share of operating (gains)/losses in | (451,068) | 342,498 |
| | associates | | |
+----------+------------------------------------------------+-------------+-------------+
| | Amortisation and depreciation | 704,672 | 516,587 |
+----------+------------------------------------------------+-------------+-------------+
| | Share option expense | 17,297 | 56,619 |
+----------+------------------------------------------------+-------------+-------------+
| | Loss on disposal of property, plant and | - | 24,784 |
| | equipment | | |
+----------+------------------------------------------------+-------------+-------------+
| | Gain on disposal of intangible assets - | - | (1,207,275) |
| | proceeds from disposal of channels | | |
+----------+------------------------------------------------+-------------+-------------+
| | Finance costs | - | 42,977 |
+----------+------------------------------------------------+-------------+-------------+
| | Decrease /(increase) in trade and other | 633,987 | (765,388) |
| | receivables | | |
+----------+------------------------------------------------+-------------+-------------+
| | Increase in trade and other payables | 1,267,060 | 267,534 |
+----------+------------------------------------------------+-------------+-------------+
| | Net cash inflow / (outflow) from operating | 392,665 | (424,740) |
| | activities from continuing operations | | |
+----------+------------------------------------------------+-------------+-------------+
| | | | |
+----------+------------------------------------------------+-------------+-------------+
| | Cash flow from investing activities | | |
| b | | | |
+----------+------------------------------------------------+-------------+-------------+
| | | | |
+----------+------------------------------------------------+-------------+-------------+
| | Proceeds on disposal of intangible assets | - | 1,400,000 |
+----------+------------------------------------------------+-------------+-------------+
| | Purchase of property, plant and equipment | (9,287) | (44,076) |
+----------+------------------------------------------------+-------------+-------------+
| | Purchase of intangible assets | (215,953) | (753,982) |
+----------+------------------------------------------------+-------------+-------------+
| | Net cash (outflow) / inflow from investing | (225,240) | 601,942 |
| | activities | | |
+----------+------------------------------------------------+-------------+-------------+
| | | | |
+----------+------------------------------------------------+-------------+-------------+
| | Cash flow from financing activities | | |
| c | | | |
+----------+------------------------------------------------+-------------+-------------+
| | | | |
+----------+------------------------------------------------+-------------+-------------+
| | Capital element of finance leases | (17,096) | (54,395) |
+----------+------------------------------------------------+-------------+-------------+
| | Interest paid | (95,523) | (120,023) |
+----------+------------------------------------------------+-------------+-------------+
| | Repayment of loan | (247,297) | (276,500) |
+----------+------------------------------------------------+-------------+-------------+
| | Proceeds from the issue of term loan note | 200,000 | - |
+----------+------------------------------------------------+-------------+-------------+
| | Less issue costs | (10,000) | - |
+----------+------------------------------------------------+-------------+-------------+
| | Net cash used in financing activities | (169,916) | (450,918) |
+----------+------------------------------------------------+-------------+-------------+
Notes to the preliminary announcement
1. Accounting policies
The consolidated financial statements have been prepared under the historical
cost convention in accordance with applicable International Financial Reporting
Standards as adopted by the European Union (IFRS). Cellcast plc is an England
and Wales incorporated public limited company and is domiciled in the United
Kingdom. Cellcast plc shares are publically traded on the AIM market of the
London Stock Exchange under the ticker symbol CLTV.
2. Loss before tax (2008 - profit)
+---------------------------------------+---------+-------------+
| Loss before tax (2008 - profit) is | 2009 | 2008 |
| stated after charging/(crediting): | | |
+---------------------------------------+---------+-------------+
| | GBP | GBP |
+---------------------------------------+---------+-------------+
| Depreciation - owned assets | 139,446 | 133,015 |
+---------------------------------------+---------+-------------+
| Depreciation - assets on hire | 17,096 | 70,305 |
| purchase contracts | | |
+---------------------------------------+---------+-------------+
| Licences amortisation | 77,548 | 77,975 |
+---------------------------------------+---------+-------------+
| Amortisation of internally generated | 470,582 | 235,292 |
| development costs | | |
+---------------------------------------+---------+-------------+
| Total amortisation and depreciation | 704,672 | 516,587 |
| charge for the year | | |
+---------------------------------------+---------+-------------+
| Profit on disposal of channels - | - | (1,207,275) |
| licences | | |
+---------------------------------------+---------+-------------+
| Loss on disposal of property, plant | - | 24,784 |
| and equipments | | |
+---------------------------------------+---------+-------------+
| Auditor's remuneration - statutory | 35,000 | 35,000 |
| audit of parent and consolidated | | |
| accounts | | |
+---------------------------------------+---------+-------------+
| Audit services provided to subsidiaries were GBP25,000 |
| (2008: GBP25,000) |
+---------------------------------------------------------------+
| Other services supplied pursuant to | 6,000 | 5,000 |
| such legislation: Interim review | | |
+---------------------------------------+---------+-------------+
| Foreign exchange loss | 17,304 | 7,268 |
+---------------------------------------+---------+-------------+
In 2008, the group's curtailment of the UGC venture SUMO.tv produced a
significant windfall of GBP1.2 million, from the sale of the channel's position
in the Sky Electronic Program Guide.
3. Interest receivable and similar income
+-----------------------------------------+-------+-------+
| | 2009 | 2008 |
+-----------------------------------------+-------+-------+
| | GBP | GBP |
+-----------------------------------------+-------+-------+
| Bank interest received | 22 | 2,914 |
+-----------------------------------------+-------+-------+
4. Interest payable and similar charges
+-----------------------------------------+---------+---------+
| | 2009 | 2008 |
+-----------------------------------------+---------+---------+
| | GBP | GBP |
+-----------------------------------------+---------+---------+
| Interest on convertible loan and term | 43,884 | 41,654 |
| loan notes | | |
+-----------------------------------------+---------+---------+
| Bank charges & interest paid | 54,971 | 70,541 |
+-----------------------------------------+---------+---------+
| Finance leases | 3,068 | 7,828 |
+-----------------------------------------+---------+---------+
| | 101,923 | 120,023 |
+-----------------------------------------+---------+---------+
5. (Loss) / earnings per share
The calculations of adjusted basic and diluted (loss)/earnings per ordinary
share are based on the following results:
+----------------------------+-------------+------------+
| | 2009 | 2008 |
+----------------------------+-------------+------------+
| | | |
+----------------------------+-------------+------------+
| Reported (loss) / profit | (1,610,437) | 333,128 |
| for the financial period | | |
+----------------------------+-------------+------------+
| | | |
+----------------------------+-------------+------------+
| Weighted average number of | 75,513,224 | 75,513,224 |
| ordinary shares | | |
+----------------------------+-------------+------------+
| | | |
+----------------------------+-------------+------------+
| Basic (loss) / earnings | (2.1p) | 0.4p |
| per share | | |
+----------------------------+-------------+------------+
| Diluted (loss) / earnings | (2.1p) | 0.4p |
| per share | | |
+----------------------------+-------------+------------+
| | | |
+----------------------------+-------------+------------+
Due to the loss incurred in 2009 there was no dilution effect from the issued
share options and warrants.
As the listed market value of the shares throughout 2008 was lower than the
exercise prices of the share options and warrants in issue during the year,
there was not considered to be any dilution effect of the issued share options
and warrants during 2008.
The share split on the 30 July 2009 did not result in any change to the number
or the rights of the ordinary shares in issue and therefore has been no impact
on the loss / (earnings) per share.
6. Segmental reporting
During the year the group adopted IFRS 8 which is effective for annual reporting
periods beginning on or after 1 January 2009 and requires that the group should
disclose segmental information based on financial data used by the Executive
Management Team who are responsible for making financial decisions. The
executive management team comprises the chief executive officer, the chief
operating officer and the chief financial officer.
The financial information is presented to the executive management team as one
operating unit which apart from the group's associate undertaking operates in
one geographical unit. The executive management team make their decisions based
upon this information.
The group has 3 significant customers, each generating over 10% of the group's
television and broadcast revenue. The 3 customers contribute GBP4,493,289,
GBP3,199,941 and GBP4,487,605 of the group's total revenue.
7. Publication of non-statutory accounts
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 2009 will be delivered to the Registrar following
the Company's Annual General Meeting. The balance sheet at 31 December 2009 and
income statement, statement of changes in equity, cash flow statement and
associated notes for the year then ended have been extracted from the Company's
2009 financial statements upon which the auditor's opinion is unqualified.
8. Other information
The report and accounts for the year ended 31 December 2009 will be posted to
shareholders shortly and will be laid before the Annual General Meeting to be
held at the offices of Memery Crystal LLP, 44 Southampton Buildings, London WC2A
1AP on 29 June 2010 at 3.00 pm.
Copies will also be available via the website (www.cellcast.tv) in accordance
with AIM Rule 26 and at the Company's registered office, The Registry, 34
Beckenham Road, Beckenham, Kent BR3 4TU.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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