TIDMRAM
RNS Number : 7130L
RAM Investment Group PLC
04 August 2011
For immediate release 04 August 2011
RAM INVESTMENT GROUP PLC
("RAM" or the "Company")
UNAUDITED FINANCIAL STATEMENTS
FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2011
CHAIRMAN'S STATEMENT
The interim results to June 30(th) 2011 announced today reflect
a maiden profit for TrainFX Limited since it came under 100% Group
ownership but a further loss for RAM Vision Limited in its
seasonally quieter half year. The loss for the period includes
GBP200k of non-recurring costs incurred on legal fees, some
rationalisation costs and interest costs.. Conversely some
exceptional gains were made from the reduction of a specific debt
(GBP212k) and the receipt of further, deferred, consideration from
the sale of Gaming Technology Solutions (GBP43k) for a total of
GBP255k.
The first half results of RAM Vision were disappointing despite
being significantly up on revenue on a same period comparison with
2010. The company reduced its overhead with the departure earlier
this year of its former managing director and staff numbers have
also reduced. The change in management during the first half
appears to have improved prospects markedly. The second half is
seasonally more important for RAM Vision and we would expect a
positive contribution in this second half. The company has
significantly extended the quality of its mall network estate
through Q2 and into Q3 and this is expected to accelerate over the
next year. Notable contract wins in recent times include a new
incremental business stream for RAM Vision in the procurement,
installation and sales management of a 32 sq.m outdoor LED screen
at Trinity Wakefield shopping mall and a sales contracts with (1)
City Gateway Media Limited for the large outdoor iconic screen in
Piccadilly, Manchester, (2) Silverburn mall, Glasgow, (3)
Southampton Football Club onsite ground screens and (4) a video
wall screen in the Oracle mall, Reading. Significant to overall
revenue growth in RAM Vision is the strong performance of regional
sales. The business in now positioned to grow significantly in 2012
and we think the London Olympics will be positive for digital
advertising sales next year. As reported in the full year the group
is extending its network to include outside advertising and leisure
markets as well as the introduction of 3D without glasses.
TrainFX successfully completed its first contract for passenger
information systems on First Great Western Thames Valley routes and
Southern Coastway lines in the first half of the year. Deployment
on Arriva and LNWR is ongoing. The company has extended its product
set over the last 6 months to widen the available market
opportunities for its engineering and software solutions for
retrofitting on older train sets and it is currently tendering on a
substantial number of new contracts the success of which could
materially affect expectations through Q4 and into 2012 depending
on their success or otherwise. With a stronger balance sheet the
company is now revisiting ways to role out its train media
product.
The Company successfully concluded a placing of shares and
convertible loan notes on 30 June 2011 to raise GBP2.42 million.
The Company was able to use the proceeds of the placing to redeem
GBP1.5 million of secured debt and to provide the Company with
additional working capital. The reduction of debt was a very
important milestone for the Company for a number of reasons; it
absorbed management time, legal cost and cash flow, it frustrated
our business development and it was used as a weakness by our
competitors, undermining our ability to win contracts with major
companies. We believe that the Company is now in a better position
to support the development of its two main subsidiaries.
The last 6 months have not been without significant challenges
but we believe both subsidiaries are in growth markets and
scaleable from a relatively fixed overhead. The Group is also well
placed to add incremental and earnings enhancing revenue streams
through acquisition or partnership to improve economies of scale
and the Company is actively engaged with discussions in this
regard. Whilst the focus is winning new business the Group has been
reducing overhead cost across all areas. This will be seen more
fully in 2012.
The Company expects a much smaller cash burn from its trading
activities through the second half of the year and is targeting
group profitability and cash flow generation from 2012 onwards. We
appreciate shareholders patience through this period when the share
price has also been under pressure and we are mindful of creating a
self sustainable growth business in the months ahead. We believe we
have put in place the right building blocks to achieve this and are
optimistic on the outlook notwithstanding that the economic
environment is difficult.
T Baldwin
Chairman
RAM INVESTMENT GROUP PLC
CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2011
6 Months 6 Months
to to Year to
30 June 31 Dec
30 June 2011 2010 2010
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Continuing operations
Revenue 1,714,147 685,884 1,330,127
Cost of sales (1,123,949) (489,294) (735,536)
----------------------------------- ------------- ------------ ------------
590,198 196,590 594,591
Administrative expenses (1,623,043) (1,484,362) (3,407,441)
Administrative expenses -
exceptional item 212,087 - 94,039
----------------------------------- ------------- ------------ ------------
(820,758) (1,287,772) (2,718,811)
Profit/(loss) on disposal of
assets 43,145 - (39,251)
----------------------------------- ------------- ------------ ------------
Operating Loss (777,613) (1,287,772) (2,758,062)
Finance income - - -
Finance expense (116,449) (142,944) (482,610)
----------------------------------- ------------- ------------ ------------
Net finance expense (116,449) (142,944) (482,610)
Loss before income tax (894,062) (1,430,716) (3,240,672)
Income tax expense - - -
----------------------------------- ------------- ------------ ------------
Loss for the period from
continuing operations (894,062) (1,430,716) (3,240,672)
----------------------------------- ------------- ------------ ------------
Earnings per share
----------------------------------- ------------- ------------ ------------
Basic earnings per share -
continuing and total operations (0.6)p (1.5)p (3.3)p
Diluted earnings per share -
continuing and total operations (0.6)p (1.5)p (3.3)p
----------------------------------- ------------- ------------ ------------
RAM INVESTMENT GROUP PLC
CONSOLIDATED STATEMENT COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2011
6 Months 6 Months
to to Year to
30 June 31 Dec
30 June 2011 2010 2010
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Loss for the period (894,062) (1,430,716) (3,240,672)
Other comprehensive income:
Changes in fair value of
available-for-sale financial
assets - - (62,825)
Other comprehensive income, net
of tax - - (62,825)
Total comprehensive income (894,062) (1,430,716) (3,303,497)
----------------------------------- ------------- ------------ ------------
RAM INVESTMENT GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2011
6 Months 6 Months
to to Year to
30 June
2011 30 June 2010 31 Dec 2010
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Assets
Non-current assets
Property, plant & equipment 368,621 318,240 361,543
Intangible assets 2,069,554 2,392,007 2,105,492
Available-for-sale financial assets 164,574 365,650 164,574
2,602,749 3,075,897 2,631,609
------------------------------------ ------------ ------------ ------------
Current assets
Inventory 226,755 - 491,363
Trade and other receivables 911,722 385,242 977,707
Cash and cash equivalents 808,814 145,359 440,915
1,947,291 530,601 1,909,985
------------------------------------ ------------ ------------ ------------
Total assets 4,550,040 3,606,498 4,541,594
------------------------------------ ------------ ------------ ------------
Equity
Capital and reserves attributable
to equity holders of the Company
Ordinary shares 2,608,930 801,884 1,214,055
Deferred shares 9,983,447 9,983,447 9,983,447
Share premium account 18,369,670 15,202,691 16,546,420
Merger reserve 327,272 327,272 327,272
Shares to be issued reserve 657,231 128,799 634,663
Retained earnings (29,494,711) (24,459,633) (28,600,649)
Minority interest in equity - (640,158) -
------------------------------------ ------------ ------------ ------------
Total equity 2,451,839 1,344,302 105,208
------------------------------------ ------------ ------------ ------------
Liabilities
Non current Liabilities
Borrowings - 375,000 -
------------------------------------ ------------ ------------ ------------
- 375,000 190,000
Current liabilities
Trade and other payables 1,530,180 1,554,696 2,345,797
Borrowings 568,021 332,500 2,090,589
------------------------------------ ------------ ------------ ------------
2,098,201 1,887,196 4,436,386
------------------------------------ ------------ ------------ ------------
Total liabilities 2,098,201 2,262,196 4,436,386
------------------------------------ ------------ ------------ ------------
Total equity and liabilities 4,550,040 3,606,498 4,541,494
------------------------------------ ------------ ------------ ------------
RAM INVESTMENT GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Shares
to be
Share Share Retained issued Merger Non-controlling Total
capital premium earnings reserve Reserve Total interest equity
GBP GBP GBP GBP GBP GBP GBP GBP
Balance at 1
January 2010 10,743,331 14,876,985 (23,310,115) 113,799 327,272 2,751,272 (358,961) 2,392,311
Loss for year - - (3,240,672 - - (3,240,672) - (3,240,672)
Purchase of
non-controlling
interest (1,987,037) (1,987,037) 358,961 (1,628,076)
Other
comprehensive
income:
Changes in fair
value of
available for
sale financial
assets - - (62,825) - - (62,825) - (62,825)
Transactions
with owners:
Issue of share
capital 454,171 1,704,719 - 2,158,890 - 2,158,890
Cost of share
capital issue (35,284) (35,284) (35,284)
Share options
issued 471,453 471,453 471,453
Convertible
loan-equity
component 49,411 - 49,411 - 49,411
Balance as at 31
December 2010 11,197,502 16,546,420 (28,600,649) 634,663 327,272 105,208 - 105,208
----------------- ----------- ----------- ------------- -------- -------- ------------ ---------------- ------------
Loss for the
period - - (894,062) - - (894,062) - (894,062)
Other
comprehensive
income:
Changes in fair
value of
available for
sale financial
assets - - - - - - - -
Share of other
comprehensive
income/(loss)
of associate - - - - - - - -
Transactions
with owners:
Issue of share
capital 1,394,875 1,912,125 - - 3,307,000 - 3,307,000
Costs of issue
of share
capital - (88,875) - - - (88,875) - (88,875)
Share options
issued - - - - - - - -
Convertible
loan-equity
component - - - 22,568 - 22,568 - 22,568
Balance as at
30 June 2011 12,592,377 18,369,670 (29,494,711) 657,231 327,272 2,451,839 - 2,451,839
----------------- ----------- ----------- ------------- -------- -------- ------------ ---------------- ------------
RAM INVESTMENT GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD ENDED 30 JUNE
2011
6 Months 6 Months
to to Year to
30 June 30 June 31 Dec
2011 2010 2010
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Cash flows from operating
activities
Loss before tax (894,062) (1,430,716) (3,303,497)
Adjustments for:
Depreciation 99,965 85,400 180,455
Equity settled share based payment
transactions - - 271,453
Net finance expense recognised
in profit or loss 116,449 142,944 428,610
Change in value of available
for sale financial assets - - 62,825
Profit/(loss) on disposal of
financial assets (43,145) - 39,251
------------------------------------ ------------ ------------ ------------
(720,793) (1,202,372) (2,266,903)
Changes in working capital:
(Decrease)/increase in inventories 264,608 - (491,363)
Decrease/(increase) in trade
and other receivables 58,152 285,025 (361,731)
(Decrease)/increase in trade
and other payables (807,784) 435,734 1,281,126
------------------------------------ ------------ ------------ ------------
Cash used in operations (1,205,817) (481,613) (1,838,871)
Interest paid (116,449) (142,944) (482,610)
------------------------------------ ------------ ------------ ------------
Net cash used in operating
activities (1,322,266) (624,557) (2,321,481)
------------------------------------ ------------ ------------ ------------
Cash flows from investing
activities
Interest received - - -
Proceeds from sale of investment 43,145 - 99,000
Acquisition of plant & machinery (71,105) (90,753) (206,525)
Acquisition of financial assets - - -
Acquisition of subsidiary net
of cash - (60,876) (1,428,075)
Acquisition of goodwill - (10,345) -
------------------------------------ ------------ ------------ ------------
Net cash from investing activities (27,960) (161,974) (1,535,600)
------------------------------------ ------------ ------------ ------------
Cash flows from financing
activities
Proceeds from issue of shares 3,218,125 - 2,123,606
Proceeds from issue of convertible
notes 150,000 200,000 450,000
Proceeds from borrowings 50,000 292,500 1,792,500
Repayment of loans (1,700,000) - (507,500)
Net cash used in financing
activities 1,718,125 492,500 3,858,606
------------------------------------ ------------ ------------ ------------
Increase/(decrease) in cash
equivalents 367,899 (294,031) 1,525
Cash and cash equivalents at
beginning of the period 440,915 439,390 439,390
Cash and cash equivalents at
end of the period 808,814 145,359 440,915
------------------------------------ ------------ ------------ ------------
RAM INVESTMENT GROUP PLC
NOTES TO FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE
2011
ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of
these consolidated financial statements are set out below. These
policies have been applied consistently to all the years presented
unless otherwise stated.
1.1 Basis of preparation
These interim statements have been prepared on a basis
consistent with International Financial Reporting Standards (IFRS).
They do not contain all of the information required for full
financial statements and should be read in conjunction with the
consolidated financial statements of the Group as at and for the
year ended 31 December 2010. These interim financial statements do
not constitute statutory accounts within the meaning of the
Companies Act.
The interim financial information have not been reviewed nor
audited by the auditors. The interim financial information was
approved by the Board of Directors on 29 July 2011. The information
for the year ended 31 December 2010 is extracted from the statutory
financial statements for that year which have been reported on by
the Group's auditors and delivered to the Registrar of Companies.
The audit report was unqualified.
The accounting policies applied by the Group in these interim
financial statements are the same as those applied by the Group in
its consolidated financial statements for the year ended and as at
31 December 2010.
The interim report is the responsibility of, and has been,
approved by the Directors. The Directors are responsible for
preparing the interim financial statements in accordance with the
AIM rules for Companies.
1.1.1 Going concern
The financial statements have been prepared on the going concern
basis which assumes that the Company and its subsidiaries will
continue in operational existence for the foreseeable future. The
Company has successfully raised GBP2.42m through equity placing and
convertible loan hence the directors have reasonable expectation
that the Group has adequate resources to continue in operational
existence.
1.2 Consolidation
(a) Subsidiaries
Subsidiary undertakings are all entities over which the Group
has the power to govern the financial and operating policies of the
subsidiary and, therefore, exercise control. The existence and
effect of both current voting rights and potential voting rights
that are currently exercisable or convertible are considered when
assessing whether control of an entity is exercised. Subsidiaries
are consolidated from the date at which the Group obtains the
relevant level of control and are de-consolidated from the date at
which control is relinquished.
The acquisition method of accounting is used for all business
combinations. On acquisition, the assets, liabilities and
contingent liabilities of the subsidiary are measured at their fair
values. The cost of the business combination is measured at the
fair value of the assets given, equity instruments issued and
liabilities incurred or assumed at the date of exchange, plus costs
directly attributable to the acquisition. Any excess of the cost of
the combination over the fair value of the Group's share of the
identifiable net assets acquired is recorded as goodwill. If the
cost of the combination is less than the fair value of the Group's
share of the identifiable net assets acquired, the difference is
credited to the income statement in the period of acquisition.
Where payment of part of the cost of the combination is
contingent on future events, for instance future profit streams of
the subsidiary acquired, a provision is recognised at the date of
acquisition if it is thought probable that such future events will
be achieved and the cost of the combination increased accordingly.
The provision is recognised at its fair value, discounted to
recognise the effect of the time value of money. The discount is
released over the period over which the future events are assessed
such that at the date of payment the provision is equal to the
amount of deferred consideration to be paid. The provision is
assessed at each reporting date and adjusted if expectations of the
amount payable have changed. Inter-company transactions and
balances between Group companies are eliminated on
consolidation.
Where a minority has retained an interest in a subsidiary, the
Group accounts for transactions with the minority which do not
result in a loss of control as equity transactions in accordance
with IAS 27 (revised). If the Company acquires an increase in the
stake it holds in an entity from a minority interest or disposes of
part of its stake, the carrying amounts of the controlling and
non-controlling interests shall be adjusted to reflect the changes
in their relative interests in the subsidiary. Any difference
between the amount by which the non-controlling interests are
adjusted and the fair value of the consideration paid or received
shall be recognised directly in equity and attributed to the owners
of the parent. The minority's share of profit or loss,
comprehensive income and assets are shown in the consolidated
income statement, statement of comprehensive income and statement
of financial position as non-controlling interests.
(b) Associates
Associates are all entities over which the Group exercises
significant influence but does not exercise control. Investments in
associates are accounted for using the equity method of accounting
and are initially recognised at cost, which includes goodwill
identified on acquisition, net of any accumulated impairment loss.
The Group's share of its associate's profits or losses after
acquisition of its interest is recognised in the income statement
and cumulative post-acquisition movements are adjusted against the
carrying amount of the investment. Where the Group's share of
losses of an associate equals or exceeds the carrying amount of the
investment, the Group only recognises further losses where it has
incurred obligations or made payments on behalf of the
associate.
1.3 Segment reporting
In accordance with IFRS 8, segmental information is presented
based on the way in which financial information is reported
internally to the chief operating decision maker. The Group's
internal financial reporting is organised along product and service
lines and therefore segmental information has been presented about
business segments. A business segment is a group of assets and
operations engaged in providing products and services that are
subject to risks and returns which are different from those of
other business segments.
The Group has determined its reportable segments in accordance
with IFRS 8. In accordance with that Standard the results of
certain operating segments may be aggregated if they are
sufficiently similar in nature. Where a business segment
contributes in excess of either 10% of total revenue, 10% of total
assets or 10% of the absolute amount of reported profit or loss, it
is disclosed as a separate segment. Because the Group has
determined that its reportable segments are based on products and
services, the disclosures specifically required by IFRS 8 in
respect of products and services are not separately disclosed.
1.4 Property, plant and equipment
All property, plant and equipment is stated at historical cost
less depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.
All assets are depreciated in order to write off the costs, less
anticipated residual values of the assets over their useful
economic lives on a straight line basis as follows:
-- Plant and machinery: 5-10 years
-- Network assets: 5 years
-- Motor vehicles: 4 years
-- Fixtures and fittings: 5-10 years
-- Leasehold improvements: 3 years
-- Computer equipment: 3 years
Items of property, plant and equipment held under finance leases
are depreciated over the shorter of the lease term and the useful
economic life of the asset.
1.5 Intangible assets
Acquired intangible assets are shown at historical cost.
Acquired intangible assets have a finite useful life and are
carried at cost, less accumulated amortisation over the finite
useful life.
(a) Goodwill
Goodwill relating to acquisitions occurring prior to the date of
transition to IFRS is carried at the net book value at that date as
permitted by IFRS 1. Goodwill arising on acquisitions subsequent to
the date of transition is stated at cost. In both cases, goodwill
is not amortised, but is subject to an annual test for impairment.
Impairment testing is performed by the Directors as set out below.
Where impairment is identified, it is charged to the income
statement in that period.
(b) Concession rights
Concession rights are shown at historical cost. Concession
rights in a business combination at fair value at the acquisition
date. Concession rights have a finite useful life and are carried
at cost less accumulated amortisation. Amortisation is calculated
using straight line method to allocate the cost of the concession
rights over the estimated useful life of 5 to 10 years.
1.6 Impairment of non-financial assets
Assets that have an indefinite useful life, for example
goodwill, are not subject to amortisation but are instead tested
annually for impairment and are subject to additional impairment
testing if events or changes in circumstances indicate that the
carrying amount of the asset may not be recoverable.
Assets that are subject to depreciation or amortisation are
reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. A review
for indicators of impairment is performed annually. An impairment
loss is recognised for the amount by which the asset's carrying
amount exceeds its recoverable amount. The recoverable amount is
the higher of an asset's fair value less costs to sell and value in
use. Any impairment charge is recognised in the income statement in
the year in which it occurs. When an impairment loss, other than an
impairment loss on goodwill, subsequently reverses due to a change
in the original estimate, the carrying amount of the asset is
increased to the revised estimate of its recoverable amount, up to
the carrying amount that would have resulted, net of depreciation,
had no impairment loss been recognised for the asset in prior
years.
1.7 Financial assets
The Group classifies its financial assets as either at fair
value through profit and loss, or as available for sale financial
assets. The Group does not hold any held to maturity financial
assets, or financial assets classified as loans and
receivables.
The classification is dependent on the purpose for which the
financial assets are acquired and is determined by the Directors on
initial recognition.
Financial assets at fair value through profit or loss are
financial assets which are held for trading. A financial asset is
classified as at fair value through profit or loss if it is
acquired principally for the purpose of selling in the short term.
Derivatives are also classified as held for trading unless they are
designated as effective hedges. Such assets are classified as
current assets. Financial assets at fair value through profit or
loss are shown at fair value at each reporting date with changes in
fair value shown in the income statement.
Available for sale financial assets consist of equity
investments in other companies where the group does not exercise
either control or significant influence. Available for sale
financial assets are shown at fair value at each reporting date
with changes in fair value being shown in the statement of
comprehensive income.
Where financial assets are quoted the fair value at each
reporting date is based on the quoted bid price at that date. Where
an available for sale financial asset consists of an equity
investment in an unquoted company where a reliable fair value
cannot be determined, such investments are shown at cost less
impairment.
1.8 Inventories
Inventories are stated at the lower of cost and net realisable
value. Net realisable value is the estimated selling price of the
stocks less any applicable costs to sell. Where net realisable
value of inventory is lower than the original acquisition cost or
other subsequent carrying amount, the amount of the inventory that
has been written down to net realisable value is recognised as an
expense in the period in which the write down occurs. When a write
down is reversed, the reversal is recognised in the income
statement in the period in which the reversal occurs and the amount
of inventories is increased accordingly.
The cost of inventories includes all costs of purchase, costs of
conversion and other costs incurred in bringing the inventories to
their present location and condition.
The Group does not hold any stock or finished goods. Inventory
refers to work in progress in subsidiaries.
1.9 Trade and other receivables
Trade receivables are amounts due from customers for merchandise
sold or services performed in the ordinary course of business.
If collection is expected in one year or less, they are
classified as current assets. If not, they are presented as
non-current assets.
Trade and other receivables are recognised at fair value
subsequently measured at amortised cost using the effective
interest method, less any appropriate allowance for estimated
irrecoverable amounts.
1.10 Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and
other short term highly liquid deposits with original maturities of
three months or less. Bank overdrafts are shown within borrowings
in current liabilities on the balance sheet.
1.11 Share capital
Ordinary shares of the Company are classified as equity.
Mandatorily redeemable preference shares and other classes of share
where an obligation exists to transfer economic benefits are
classified as liabilities. Costs directly attributable to issue of
new shares are shown in equity as a deduction.
1.12 Reserves
The Group financial statements include the following reserves:
share premium account, merger reserve, shares to be issued reserve
and retained earnings. Premiums paid on the issue of share capital,
less any costs relating to these, are posted to the share premium
account. The merger reserve arose previously when a premium arose
on the 100% acquisition of a subsidiary. The Company issues share
options that are accounted for as share-based payments; this charge
is credited to the shares to be issued reserve (see policy on
share-based payments). Also the Group classifies the liability
elements of convertible loan notes as part of the shares to be
issued reserve.
1.13 Trade payables
Trade payables are recognised initially at fair value and are
subsequently measured at amortised cost using the effective
interest method. As the payment period of trade payables is short
future, cash payments are not discounted as the effect is not
material.
1.14 Borrowings
Interest-bearing borrowings are recognised initially at fair
value, net of any transaction costs incurred. Borrowings are
subsequently stated at amortised cost using the effective interest
method with any difference between the proceeds (net of transaction
costs) and the redemption value being recognised over the period of
the borrowings.
Borrowing costs incurred which are directly attributable to the
acquisition, construction or production of a qualifying asset
are
capitalised as part of the cost of that asset.
The fair value of the liability portion of convertible loan
stock is determined using a market interest rate for a comparable
loan stock with no conversion option. This amount is recorded as a
liability on an amortised cost basis until the loan stock is
redeemed or converted. The remainder of the carrying amount of the
loan stock is allocated to the conversion option and shown within
equity.
All borrowings are classified as current unless the Group has an
unconditional right to defer payment of the borrowings until at
least twelve months from the balance sheet date.
1.15 Taxation
The tax expense for the year represents the total of current
taxation and deferred taxation. The charge in respect of current
taxation is based on the estimated taxable profit for the year.
Taxable profit for the year is based on the profit as shown in the
income statement, as adjusted for items of income or expenditure
which are not deductible or chargeable for tax purposes. The
current tax liability for the year is calculated using tax rates
which have either been enacted or substantially enacted at the
statement of financial position date.
Deferred tax is provided in full, using the liability method on
temporary differences arising between the tax base of assets and
liabilities and their carrying values in the financial statements.
The deferred tax is not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a
business combination that, at the time of the transaction, affects
neither accounting nor taxable profit or loss. Deferred tax is
determined using tax rates which have been enacted or substantially
enacted at the statement of financial position date and are
expected to apply when the related deferred tax asset is realised
or the deferred income tax liability is settled.
Deferred tax assets are recognised to the extent that it is
probable that future taxable profits will be available against
which the temporary differences can be utilised.
1.16 Share-based payments
The cost of share-based payment arrangements, which occur when
employees receive shares or share options, is recognised in the
statement of comprehensive income over the period over which the
shares or share options vest.
The expense is calculated based on the value of the awards made,
as required by IFRS 2, 'Share-based payment'. The fair value of the
awards is calculated by using the Black-Scholes option pricing
model taking into account the expected life of the awards, the
expected volatility of the return on the underlying share price,
the market value of the shares, the strike price of the awards and
the risk-free rate of return. The charge to the statement of
comprehensive income is adjusted for the effect of service
conditions and non-market performance conditions such that it is
based on the number of awards expected to vest. Where vesting is
dependent on market-based performance conditions, the likelihood of
the conditions being achieved is adjusted for in the initial
valuation and the charge to the statement of comprehensive income
is not, therefore, adjusted so long as all other conditions are
met.
Where an award is granted with no vesting conditions, the full
value of the award is recognised immediately in the statement of
comprehensive income.
1.17 Provisions
Provisions are recognised in the statement of financial position
where there is a legal or constructive obligation to transfer
economic benefits as a result of a past event. Provisions are
discounted using a rate which reflects the effect of the time value
of money and the risks specific to the obligation, where the effect
of discounting is material.
Provisions are measured at the present value of expenditures
expected to be required to settle the obligation using a pre-tax
that reflects current market assessments of the time, value of
money and the risks specific to the obligation. The increase in
provision due to the passage of time is recognised as interest
expense.
1.18 Revenue recognition
Revenue comprises the fair value of the consideration received
or receivable for the sale of goods and services in the ordinary
course of the Group's activities. Revenue is shown net of
value-added tax, returns, rebates and discounts and after
eliminating sales within the Group.
The Group recognises revenue when the amount of revenue can be
reliably measured; it is probable that future economic benefits
will flow to the entity and when specific criteria have been met
for each of the Group's activities. The Group bases its estimates
on historical results, taking into consideration the type of
customer, the type of transaction and the specifics of each
arrangement.
The majority of the Group's long term contract arrangements are
accounted for under IAS 11, 'Construction contracts'. Sales are
recognised as soon as performance targets have been achieved per
the agreed contracts. This is usually when title passes or
separately identifiable phase (milestone) of a contract or
development has been completed and accepted by the customer.
No profit is recognised on contracts until the outcome of the
contract can be reliably estimated. Profit is calculated by
reference to reliable estimates of contract revenue and forecast
costs after making suitable allowances for technical and other
risks related to performance milestones yet to be achieved. The
amount of profit attributable to the stage of completion of these
contracts is arrived at by reference to the estimated overall
profitability of the contract. When it is probable that total
contract costs will exceed total contract revenue, the expected
loss is recognised immediately as an expense.
In terms of revenue from media sales, key classes of revenue are
recognised on the following bases:
Class of revenue Recognition criteria
Advertising on transmission or display
Content production on delivery
1.19 Leases
On inception of a lease of an item of property, plant and
equipment, the terms and conditions of the lease are reviewed to
determine the appropriate classification for the lease. Where the
Group bears substantially all the risks and rewards of ownership of
the item, the lease is classified as a finance lease and the item
is capitalised within the appropriate class of property, plant and
equipment at the lower of the fair value of the leased item and the
minimum lease payments. Each lease payment is allocated between the
liability and finance charges so as to obtain a constant rate on
the finance balance outstanding. The outstanding capital element of
the lease payments is included within current and long term
payables as appropriate; the interest element of the lease payments
is charged to the income statement over the period of the lease so
as to produce a constant periodic rate of interest on the remaining
balance of the liability for each period.
Leases where the risks and rewards of ownership are retained by
the lessor are classified as operating leases. Payments made under
operating leases, net of any incentives received from the lessor,
are charged to the income statement on a straight line basis over
the term of the lease.
Rental income received under operating leases is credited to the
statement of comprehensive income on a straight line basis over the
lease term.
1.20 Pensions
The Company operates a defined contribution pension scheme under
which fixed contributions are payable. Pension costs charged to the
income statement represent amounts payable to the scheme during the
year.
2. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the profit
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the year.
6 Months 6 Months
to to Year to
30 June 30 June 31 Dec
2011 2010 2010
(Unaudited) (Unaudited) (Audited)
Loss attributable to equity holders
of the company (GBP) (894,062) (1,149,519) (3,240,672)
Weighted average number of ordinary
shares in issue 145,981,971 78,912,115 96,808,897
Basic loss per share (pence per
share) (0.6) (1.5) (3.3)
------------------------------------ ------------ ------------ ------------
As at 30 June 2011, the potentially dilutive ordinary shares
were anti-dilutive because the Group was loss-making.
3. BORROWINGS
On 29 June 2011, the Company repaid its senior debt of
GBP1,500,000. The loan was repaid 13 months ahead of its scheduled
settlement date. All mortgage charges held by TVI 2 Limited were
discharged on the loan settlement.
On 29 June 2011, the Company issued GBP150,000 unsecured
convertible loan notes to Hill Street Investments plc. The
unsecured loan is convertible into Ordinary shares at price of 2
pence each with a repayment or conversion backstop date of 31
December 2011. The interest rate on the loan is 8% per annum.
Contact:
Edward Adams, RAM Investment Group plc on 07967 008448
Tim Baldwin, RAM Investment Group plc on 0207 518 4303
Sandy Jamieson, Libertas Capital Corporate Finance Limited on
0207 569 9650
This information is provided by RNS
The company news service from the London Stock Exchange
END
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