RNS Number:6972Z
Vitesse Media PLC
05 July 2007
Date: 5 July 2007
On behalf of: Vitesse Media plc ("Vitesse", the "Company" or the "Group")
Embargoed until: 0700hrs
Vitesse Media plc
Preliminary Results 2007
Vitesse Media plc (AIM: VIS), the publishing, events and multimedia company,
today announced its preliminary results for the year ended 6 February 2007.
Highlights
* Revenues up nearly 40% to #3.3 million (2005/6: #2.3 million) of which
digital revenues, up 60%, account for 19%
* Significant progress towards breakeven as losses for 2006/7 nearly halved to
#0.3 million (2005/6: #0.6 million)
* Acquisitions of M&A Magazine and What Investment successfully completed.
Digital extension of M&A and new events around the M&A brand launched
* Unaudited first quarter results for 2007/8 show revenues of #1.2 million and
a profit of #0.03 million (first quarter 2006/7: Revenues of #0.6 million
and losses of #0.08 million)
Commenting on the results, Sara Williams, Chairman of Vitesse Media plc, said:
"During the past year, our core businesses - events and digital offering - have
made good progress. Our recent acquisitions of the What Investment and M&A
brands have been successfully integrated into the Group and are performing in
line with expectations.
"The Group's prospects going forward are looking very positive, in particular
the scope for improving and expanding our existing digital presence and
products. We look forward to continued growth and are excited by the
opportunities we are seeing in the market."
Enquiries:
Sara Williams www.vitessemedia.com
Vitesse Media Plc Via Redleaf Communications
Emma Kane/Sanna Lehtinen
Redleaf Communications Ltd Tel: 020 7822 0200
Chairman's Statement
Introduction
It is my pleasure to report on a year of strong growth, both in terms of the
organic growth and our acquisition of two further strong brands to the Vitesse
Media stable - What Investment and M&A Magazine. Our strategy of creating the
leading multi-platform media business is working. Today we boast an array of
market leading magazines, websites and events for CEOs, investors and advisers.
Our websites: include SmallBusiness.co.uk, GrowthBusiness.co.uk,
GrowthCompany.co.uk, WhatInvestment.co.uk and
MandAdeals.co.uk
Our magazines: include Business XL, Growth Company Investor, M&A
and What Investment
Vitesse Events: produce the Quoted Company Awards, Investor All
Stars, Growth Cycle Seminars, Media & Money and the
Growth Company Investor Show.
As a result, every month, Vitesse Media reaches a targeted audience of around
450,000 people, consisting of CEOs, entrepreneurs, professional advisers,
venture capitalists and other investors, both institutional and private.
Financials
The improved performance of the Group, demonstrated during the last financial
year was driven by burgeoning growth in revenues attributed to our branded
events and our digital assets. Our strategy continues to focus on growing our
own intellectual property base; all our revenues derive from our own branded
assets with a negligible amount arising from the management of other people's
events and zero from contract publishing.
By the year-end, the business was showing strong financial progress. Revenues
were up 39% from 2005/6, with the ongoing operations increasing by 16% (27%
excluding event management). Digital revenues had increased by 60%.
During the year, the gross profit margin increased from 54% to 65% (61% for
ongoing operations). Overhead costs have been reduced from 80% to 74% of
revenue.
Acquisitions
Our acquisition policy continued to gather pace and during the year we purchased
two strong brands, M&A and What Investment, both of which have considerable
potential for event and digital brand extensions. These acquisitions were funded
by the issue of new equity which enabled us to introduce two new institutional
shareholders, Octopus and Brewin Dolphin, who join Artemis on the shareholder
register. We are very pleased that our activities are beginning to attract an
institutional following.
Current Trading & Outlook
The financial year 2007/8 has got off to an excellent start with the business in
profit for each month in the first quarter, though this will be reversed during
the second quarter due to this being a traditionally slower period and the
Group's decision to provide for a potential #50,000 bad debt.
In the first months of the current year, we have been particularly pleased with
the performance of our digital assets and the launch of the first ever M&A
Awards which were all well ahead of budget. The integration of What Investment
magazine has also gone very smoothly, delivering gross profits ahead of
expectations. Plans are now well underway to redesign WhatInvestment.co.uk to
increase online revenues further and to extend the brand into events.
To illustrate the evolving nature of our cross platform media business, we
expect the revenue split for 2007/8 to approximate as follows:
- digital revenues 20%
- event sponsorship and delegate sales 30%
- print advertising 35%
- product sales, research and subscriptions 15%
The proportion of revenues coming from print advertising has significantly
increased as a result of the acquisitions of M&A and What Investment. The
exploitation of these brands through digital and event extensions will drive
overall revenues higher and increase the percentage of revenue coming from these
areas of the business.
Vitesse Media now owns five well-known brands. Revenues for 2007/8 are expected
to be derived as follows (approximately):
- Growth Company Investor/GrowthCompany.co.uk 30%
- Business XL/GrowthBusiness.co.uk 25%
- SmallBusiness.co.uk 10%
- M&A/MAndADeals.co.uk 18%
- What Investment/WhatInvestment.co.uk 17%
With our proven track record in identifying and integrating new brands within
the Group, we intend to continue to pursue our acquisition policy to build a
strong base in B2B media. There is an exciting consolidation opportunity in
this area for a cross-platform media business such as Vitesse Media and we
intend to devote further management time in 2007/8 to exploit this. We are
currently negotiating with several potential acquisition targets and are
confident that we will be adding to our stable over the coming months.
The Group's prospects going forward are looking positive, especially given the
acquisitive nature of our operations and the scope for improving and expanding
our existing digital presence and products. We look forward to the year ahead
with confidence and excitement.
Sara Williams
Chairman and Chief Executive
5 July 2007
CONSOLIDATED PROFIT & LOSS ACCOUNT
For the year ended 6 February 2007
Existing Total
Operations Acquisitions Total 2006
2007 2007 2007 (Restated)
# # # #
TURNOVER 2,726,320 538,792 3,265,112 2,347,450
Cost of sales (1,048,107) (100,504) (1,148,611) (1,072,181)
GROSS PROFIT 1,678,213 438,288 2,116,501 1,275,269
Administrative expense (1,996,147) (450,984) (2,447,131) (1,902,253)
OPERATING LOSS (317,934) (12,696) (330,630) (626,984)
Interest receivable 1,436 13,399
Interest payable and similar charges (10,434) (3,702)
LOSS ON ORDINARY ACTIVITIES BEFORE
TAXATION (339,628) (617,287)
Taxation - -
LOSS ON ORDINARY ACTIVITIES AFTER
TAXATION (339,628) (617,287)
LOSS PER SHARE
Basic and diluted (1.95p) (3.97p)
The operating loss for the year arises from the group's continuing activities.
CONSOLIDATED BALANCE SHEET
For the year ended 6 February 2007
2007 2006
# #
FIXED ASSETS
Intangible assets 1,469,278 381,644
Tangible assets 241,314 173,336
1,710,592 554,980
CURRENT ASSETS
Debtors 693,180 368,020
Cash at bank and in hand 173,525 465,452
866,705 833,472
CREDITORS: Amounts falling due within one year (1,520,901) (1,059,882)
NET CURRENT (LIABILITIES)/ASSETS (654,196) (226,410)
TOTAL ASSETS LESS CURRENT LIABILITIES 1,056,396 583,258
CREDITORS: Amounts falling due after more than one year (80,865) (31,056)
NET ASSETS 975,531 297,514
CAPITAL AND RESERVES
Called up share capital 2,090,891 1,594,750
Share premium account 1,844,929 1,333,437
Share option reserve 32,031 22,019
Other reserves 103,904 103,904
Profit and loss account (3,096,224) (2,756,596)
EQUITY SHAREHOLDERS' FUNDS 975,531 297,514
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 6 February 2007
2007 2006
# #
Cash flow from operating activities (192,479) (354,946)
Returns on investments and servicing of finance (8,998) 9,697
Capital expenditure (719,360) (70,857)
Acquisitions (424,827) -
CASH INFLOW/(OUTFLOW) BEFORE USE OF LIQUID RESOURCES AND (1,345,664) (416,106)
FINANCING
Management of liquid resources 154,205 367,065
Financing 1,053,737 165,449
(DECREASE )/INCREASE IN CASH IN THE YEAR (137,722) 116,408
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
2007 2006
# #
Increase (decrease) in cash in the year (137,722) 116,408
Cash outflow from decrease in debt and lease financing (46,104) 34,550
Cash outflow/(inflow) from change in liquid resources (154,205) (367,065)
Change in net funds arising from cash flows (338,031) (216,107)
New hire purchase contract (60,172) (49,595)
MOVEMENT IN NET FUNDS IN YEAR (398,203) (265,702)
NET FUNDS AT 1 FEBRUARY 2006 416,553 682,255
NET FUNDS AT 31 JANUARY 2007 18,350 416,553
NOTES
For the year ended 6 February 2007
1. The financial information contained in this document does not constitute
statutory accounts within the meaning of section 240 Companies Act 1985. The
figures for the year ended 6 February 2007 have been extracted from the annual
accounts in respect of which the auditors have not yet signed their audit
report. The audited statutory accounts for the year ended 31 January 2006 have
been extracted from the audited statutory accounts for that year which have been
filed with the Registrar of Companies and received an unqualified auditors'
report which did not contain a statement under section 237(2) or (3) Companies
Act 1985. Statutory accounts for the year ended 31 January have been restated
in line with the reporting requirements of FRS20.
2. The accounting policies adopted are consistent with those used in
previous years.
The financial year for 2006/7 has been extended to 6 February to incorporate the
acquisition of What Investment.
3. EARNINGS/LOSS PER SHARE
LOSS PER SHARE
The calculation of loss per share is based on the following losses and numbers of shares.
2007 2006
# #
Loss for the financial year (339,628) (617,287)
Weighted average number of shares 2007 2006
No No
For basic and diluted loss per shares 17,429,667 15,539,340
The calculation of loss per share is based on the following losses and
numbers of shares.
4. SHARE CAPITAL
SHARE CAPITAL 2007 2006
# #
Authorised:
25,000,000 ordinary shares of 10p each 2,500,000 2,000,000
Allotted, issued and fully paid:
20,908,914 (2006: 15,947,503) ordinary shares of 10p each 2,090,891 1,594,750
# #
At 1 February 2006 1,594,750 1,513,117
Issued in year 496,141 81,633
At 31 January 2007 2,090,891 1,594,750
On 23 May 2006 the company issued 2,173,911 shares by way of a placing at a
premium of 13p each for total cash consideration of #500,000 the proceeds of
which were used for working capital following the acquisition of M & A Deals
Ltd.
On 6 February 2007 the company issued 2,787,500 shares at a premium of 10p each
for total cash consideration of #557,500 the proceeds of which were used to fund
the acquisition of What Investment.
Issue costs amounting to #49,868 in respect of the above share issues have been
charged to the share premium account.
5. CASH FLOWS
CASH FLOWS 2007 2006
# #
a Reconciliation of operating loss to net cash flow from operating
activities
Operating loss (330,630) (626,984)
Amortisation - 2,193
Depreciation 85,747 57,214
Loss on disposal of fixed assets - 8,719
(Increase)/decrease in debtors (325,160) 159,932
Increase in creditors 92,083 70,466
Increase/(decrease) in deferred income 275,469 (37,582)
Share option costs 10,012 11,096
Net cash outflow from operating activities (192,479) (354,946)
2007 2006
b # #
Analysis of cash flows for headings netted in the cash flow
Returns on investments and servicing of finance
Interest received 1,436 13,399
Interest paid (10,434) (3,702)
Net cash inflow from returns on investments and servicing of (8,998) 9,697
finance
Capital expenditure
Purchase of tangible fixed assets (93,553) (70,857)
Purchase of intangible fixed assets (625,807) -
Net cash outflow from capital expenditure (719,360) (70,857)
Acquisitions
Purchase of subsidiary undertakings (424,827) -
Net cash outflow for acquisitions (424,827) -
Financing
Bank loans arising on acquisition 61,539
Repayment of long term bank loan - (25,443)
Capital element of finance lease contracts (15,435) (9,108)
Share issues (net of expenses) 1,007,633 200,000
Net cash inflow from financing 1,053,737 165,449
CASH FLOWS (continued) # #
At Other non At
1 February cash 31 January
c Analysis of net funds 2006 Cash flow changes 2007
# # # #
Cash in hand, at bank 236,247 (137,722) - 98,525
Bank deposits 229,205 (154,205) - 75,000
465,452 (291,927) - 173,525
Change in bank loans - (61,539) - (61,539)
Finance lease contracts (48,899) 15,435 (60,172) (93,636)
(48,899) (46,104) (60,172) (155,175)
Total 416,553 (338,031) (60,172) 18,350
6. This preliminary announcement was approved by the Board on 4 July 2007.
Copies of this announcement are available at the office of the company's
nominated advisor KBC Peel Hunt at the address below.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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