TIDMRAM
RNS Number : 4034G
RAM Active Media PLC
28 June 2012
For immediate release 28 June 2012
RAM ACTIVE MEDIA PLC
("RAM" or the "Company")
FINAL RESULTS
RAM Active Media, the AIM-listed investor in digital
technologies, announces its preliminary results for the 12 months
ended 31 December 2011.
Chairman's Statement
Financial Review
The results for the year to 31(st) December 2011, whilst an
improvement on those for the comparable period the previous year,
were disappointing and indicate a group whose fortunes are still in
transition.
Total sales were GBP2.8m (2010: GBP1.3m), gross profit GBP728k
(2010: GBP594k) and the operating loss after exceptional
administrative expenses of GBP771k was GBP2.8m (2010: GBP2.7m). The
loss for the year of GBP3.0m (2010: GBP3.2m) was taken, however,
after total non-recurring costs and expenses of GBP1.87m.
The latter figure was a combination of RAM Trains operating
overheads, share option costs, impairment of available for sale
financial assets, financing fees and goodwill written off on
cessation of dormant subsidiaries.
In June 2011 the company raised GBP2.42m of new equity which
financed the losses and also enabled group borrowings to end the
year at GBP689k (2010: GBP2.09m). Group net equity as at the
year-end was GBP493k as compared with GBP105k at the beginning of
the reporting period.
Key Performance Indicators
-- In addition to the monthly management accounts, the Board
uses the following key performance indicators in the management of
the key risks of the business and as a measure of business
efficiency.
-- Sales performance is measured against plan, and against
latest expectations which are updated quarterly.
-- Costs are monitored against plan and current needs.
-- Cash is monitored closely to ensure that the company avoids
an overdraft at all times. The cash balance at year end was
GBP175,852 (2010: GBP440,915).
-- The commerciality of each screen and shopping centre is evaluated regularly.
Corrective actions were taken during the year where these
indicators were not satisfactory.
Overview of operations
RAM Vision
Ram Vision our digital out of home ("DOOH") advertising business
is now established across 40 locations within the UK and offers
advertising clients an annual footfall of more than 600 million
consumers. This has led to major global brands advertising with us
including Coca Cola, Mars, Intel, BT, American Express, Microsoft,
SONY, Paramount and Universal Pictures. These contracts were won
both through our in-house sales team and by working in partnership
with large agencies.
Our roll out strategy of the installation of more screens in
more locations remains dependent on finding suitable funding for
the associated capital expenditure. The company is in the advanced
stages of contract negotiations with third party debt providers to
allow this expenditure to be financed with non-recourse off-balance
sheet finance rather than the company's equity.
With suitable funding and continued contract wins for both
additional locations and new advertising clients the business is
expected to be cash flow positive from the last quarter of 2012. In
terms of operating profits the company has the abiliy to grow
without the need to commensurately increase its overhead.
RAM Trains
The Company traded most of the year as TrainFX Limited and was
rebranded as RAM Trains Limited following the formation of the
joint venture with CETEC Europe Limited. The current position is
that the group's wholly owned subsidiary Ram Trains Ltd now owns
30% of TrainFX Ltd and 70% is owned by CETEC Europe Ltd, a
subsidiary of the large Chinese conglomerate Changzhou Evergreen
Group (CEG).
CEG has R&D and manufacturing interests in materials
technology, rail equipment and electric power amongst other
areas.
RAM Trains has been given exclusive rights to sell digital media
on train contracts that CETEC successfully wins over the coming
years.
Group Financing
Fundraising
As a substantial contribution to meeting these working capital
requirements your group has also today separately announced an
equity funding of GBP1.73m.
This funding is a combination of a cash placing and assets and
establishes its newly formed subsidiary, RAM Interactive Limited,
which has a business plan centred on the installation of 3D format
advertising screens that do not require the use of special glasses
by the viewer.
As a result of this equity placing the Dubai based Free Ray LLC,
the exclusive distributor of these 3-D screens, will hold 18% of
the fully diluted capital of your group.
Board and Employees
Subsequent to the year end the company has strengthened its
board with the appointment of Richard Prosser as Chief executive
and David Binding as a non-executive director. Collectively the
board has in depth experience in media, financial, strategic,
commercial, legal and compliance that will aide in the development
of our business through both organic and acquisition based
growth.
Outlook
The Board regard the strengthening of the board and the
establishment of RAM Interactive Ltd as important steps in
broadening the management and operational strengths of the
business.
Operating results have continued to show losses in the first
half but it is anticipated that the group will become cash flow
positive after all costs including central costs by the end of the
current financial year.
The combination of an increased estate within RAM Vision,
greater and better margin advertising sales within that estate,
lower costs across all subsidiaries and associates, the new growth
subsidiary of RAM Interactive, a stronger balance sheet and tighter
financial and management controls will all begin to manifest within
the group's reporting results over the following semi-annual
results.
In addition and not modelled within these assumptions is the
belief that the Group will receive rising royalties from TrainFX
over the next 3 years and in the meantime TrainFX requires no
further investment or funding by the PLC.
Tim Baldwin
Executive Chairman
RAM ACTIVE MEDIA PLC
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2011
2011 2010
Note GBP GBP
---------------------------------------------- ----- ------------ ------------
Continuing operations
Revenue 5 2,858,415 1,330,127
Cost of sales (2,130,087) (735,536)
---------------------------------------------- ----- ------------ ------------
Gross profit 728,328 594,591
Administrative expenses (3,014,444) (3,407,441)
Administrative expenses - exceptional item 6 (771,316) 94,039
---------------------------------------------- ----- ------------ ------------
(3,057,432) (2,718,811)
Loss on disposal of assets 6 216,280 (39,251)
---------------------------------------------- ----- ------------ ------------
Operating loss (2,841,152) (2,758,062)
Finance income 24 - -
Finance costs 24 (184,401) (482,610)
---------------------------------------------- ----- ------------ ------------
Finance costs - net (3,025,553) (482,610)
Share of loss of associate (17,620) -
---------------------------------------------- ----- ------------ ------------
Loss before income tax (3,043,173) (3,240,672)
Income tax expense 25 - -
---------------------------------------------- ----- ------------ ------------
Loss for the year from continuing operations (3,043,173) (3,240,672)
Loss attributable to:
Owners of the parent (3,043,173) (3,240,672)
Non-controlling interest - -
---------------------------------------------- ----- ------------ ------------
(3,043,173) (3,240,672)
---------------------------------------------- ----- ------------ ------------
Earnings per share
Basic earnings per share - continuing and
total operations 26 (3.9)p (3.3)p
Diluted earnings per share - continuing and
total operations 26 (3.9)p (3.3)p
---------------------------------------------- ----- ------------ ------------
RAM ACTIVE MEDIA PLC
CONSOLIDATED STATEMENT OF COMPREHEMNSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2011
2011 2010
GBP GBP
------------------------------------------------------- ------------ ------------
Loss for the year (3,043,173) (3,240,672)
Other comprehensive income:
Changes in fair value of available for sale financial
assets (62,825) (62,825)
------------------------------------------------------- ------------ ------------
Other comprehensive income for the year, net of
tax (62,825) (62,825)
------------------------------------------------------- ------------ ------------
Total comprehensive income for the year (3,105,998) (3,303,497)
------------------------------------------------------- ------------ ------------
Attributable to:
Owners of the parent (3,105,998) (3,303,497)
Non-controlling interest - -
------------------------------------------------------- ------------ ------------
Total comprehensive income for the year (3,105,998) (3,303,497)
------------------------------------------------------- ------------ ------------
RAM ACTIVE MEDIA PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 DECEMBER 2011
2011 2010
Note GBP GBP
--------------------------------------------- ----- ------------- -------------
Assets
Non-current assets
Property, plant and equipment 7 442,297 361,543
Intangible assets 8 1,099,487 2,105,492
Investment in associate 9 163,636 -
Available for sale financial assets 10 68,416 164,574
--------------------------------------------- ----- ------------- -------------
1,773,836 2,631,609
--------------------------------------------- ----- ------------- -------------
Current assets
Inventory 11 - 491,363
Trade and other receivables 12 562,429 977,707
Cash and cash equivalents 13 175,852 440,915
--------------------------------------------- ----- ------------- -------------
738,281 1,909,985
--------------------------------------------- ----- ------------- -------------
Total assets 2,512,117 4,541,594
--------------------------------------------- ----- ------------- -------------
Equity
Capital and reserves attributable to equity
holders of the Company
Ordinary shares 14 2,673,930 1,214,055
Deferred shares 14 9,983,447 9,983,447
Share premium account 18,376,670 16,546,420
Merger reserve 65,000 327,272
Shares to be issued reserve 773,691 634,663
Retained earnings 16 (31,379,375) (28,600,649)
--------------------------------------------- ----- ------------- -------------
Non-controlling interest - -
--------------------------------------------- ----- ------------- -------------
Total equity 493,363 105,208
--------------------------------------------- ----- ------------- -------------
Liabilities
Non-current liabilities
Borrowings 18 92,811 -
--------------------------------------------- ----- ------------- -------------
92,811 -
--------------------------------------------- ----- ------------- -------------
Current liabilities
Trade and other payables 17 1,329,237 2,345,797
Borrowings 18 596,706 2,090,589
--------------------------------------------- ----- ------------- -------------
1,925,943 4,436,386
--------------------------------------------- ----- ------------- -------------
Total liabilities 2,018,754 4,436,386
--------------------------------------------- ----- ------------- -------------
Total equity and liabilities 2,512,117 4,541,494
--------------------------------------------- ----- ------------- -------------
RAM ACTIVE MEDIA PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2011
Shares Non-
to
Share Share Retained be Merger controlling Total
issued
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
Costs of issue of
share capital - (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
------------------ ----------- ----------- ----------------- --------- ---------- ------------ ------------ ------------
Balance as at 1
January 2011 11,197,502 16,546,420 (28,600,649) 634,663 327,272 105,208 - 105,208
Loss for year - - (3,043,173) - - (3,043,173) - (3,043,173)
Reclassification
of reserves of
disposed
subsidiaries - - 327,272 - (327,272) - - -
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 1,459,875 1,919,125 - 35,000 65,000 3,479,000 - 3,479,000
Costs of issue of
share capital - (88,875) - - - (88,875) - (88,875)
Share options
issued - - - 128,859 - 128,859 - 128,859
Convertible
loan-equity
component - - - (24,831) - (24,831) - (24,831)
------------------ ----------- ----------- ----------------- --------- ---------- ------------ ------------ ------------
Balance as at 31
December 2011 12,657,377 18,376,670 (31,379,375) 773,691 65,000 493,363 - 493,363
------------------ ----------- ----------- ----------------- --------- ---------- ------------ ------------ ------------
RAM ACTIVE MEDIA PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2011
2011 2010
Note GBP GBP
------------------------------------------------- ----- ------------ ------------
Cash flows from operating activities
Loss before tax (3,105,998) (3,303,497)
Adjustments for:
Depreciation 7, 8 190,268 180,455
Goodwill impairment 8 983,404 -
Equity-settled share-based payment transactions 15 128,859 271,453
Share of loss from associate 9 17,620 -
Net finance income recognised in profit or
loss 24 184,401 482,610
Change in value of available for sale financial
assets 10 62,825 62,825
Loss on disposal of equipment/fixtures and 50,349 -
fittings
Profit on disposal of intangibles 6 (130,091) -
(Profit)/Loss on disposal of financial assets 6 (92,308) 39,251
------------------------------------------------- ----- ------------ ------------
(1,710,671) (2,266,903)
------------------------------------------------- ----- ------------ ------------
Changes in working capital:
Increase in inventories 11 471,221 (491,363)
Increase in trade and other receivables 12 404,552 (361,731)
Increase/(decrease) in trade and other payables 17 (1,053,127) 1,281,126
------------------------------------------------- ----- ------------ ------------
Cash used in operations (1,888,025) (1,838,871)
Interest paid 24 (184,401) (482,610)
------------------------------------------------- ----- ------------ ------------
Net cash used in operating activities (2,072,426) (2,321,481)
------------------------------------------------- ----- ------------ ------------
Cash flows from investing activities
Interest received - -
Proceeds from sale of investment 125,641 99,000
Proceeds from sale of subsidiary 33,000 -
Acquisition of equipment/fixtures and fittings 7, 8 (150,572) (206,525)
Acquisition of subsidiary net of cash 73 (1,428,075)
Net cash used in investing activities 8,142 (1,535,600)
------------------------------------------------- ----- ------------ ------------
Cash flows from financing activities
Proceeds from issue of shares 14 3,225,125 2,123,606
Proceeds from issue of convertible loan notes 18 - 450,000
Proceeds from borrowings 18 300,000 1,792,500
Repayment of other short-term loans 18 (1,725,904) (507,500)
------------------------------------------------- ----- ------------ ------------
Net cash generated from financing activities 1,799,221 3,858,606
------------------------------------------------- ----- ------------ ------------
(Decrease)/increase in cash equivalents (265,063) 1,525
Cash and cash equivalents at beginning of
year 440,915 439,390
------------------------------------------------- ----- ------------ ------------
Cash and cash equivalents at end of year 175,852 440,915
------------------------------------------------- ----- ------------ ------------
The financial information in this announcement does not comprise
statutory accounts for the purpose of Section 435 of the Companies
Act 2006 for the years ended 31 December 2010 or 2011. It has been
extracted from the Company's consolidated accounts for the period
to 31 December 2011 which are audited.
Whilst the information in this announcement has been prepared in
accordance with recognition and measurement criteria of
International Financial Reporting Standards (IFRS) this
announcement in itself does not give sufficient information to
comply with IFRS.
Going concern
During the year the Group made a loss of GBP3,043,173 and its
current liabilities exceeded its current assets by GBP1,187,662.
The Board has a strategic plan for the next 3 years which sees the
Group move towards significant profitability. Central to this are
the doubling of the RAM Vision estate as outlined in the Chairman's
report whilst maintaining or improving the level of advertising
revenue; and the increased national and international opportunities
following the restructuring of TrainFX.
As announced separately today, the Group has successfully raised
GBP1.73 million through a combination of equity placing, investment
in shares and acquiring network assets for equity consideration.
The Group is now engaged in further fundraising to improve the
Group's financial position and provide sufficient working capital
for the foreseeable future. The Directors believe that this will
secure the Group's financial future as the strategic plan for the
next 3 years requires limited equity funding.
Whilst the Directors are presently uncertain as to the outcome
of the fundraising, they believe that it is appropriate for the
financial statements to be prepared on the going concern basis
having considered the forecasts for the twelve-month period from
the date of signing these financial statements and believe that the
Group's financial resources will be sufficient to enable the Group
to continue in operation for the foreseeable future after taking
into account the successful and planned fundraising. The financial
statements do not include any adjustments that would result if the
Group is unable to continue as a going concern.
-ENDS-
For further information please contact:
Tim Baldwin
RAM Active Media 0207 518 4300
Sandy Jamieson/Thilo Hoffmann
Libertas Capital Corporate Finance Limited 0207 569 9650
This information is provided by RNS
The company news service from the London Stock Exchange
END
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