RNS Number : 4480Z
Vitesse Media PLC
21 July 2008
Vitesse Media plc
Preliminary Results 2008
Vitesse Media plc (AIM: VIS), the publishing, events and online company,
today announced its unaudited preliminary results for the year ended 31 January 2008.
Financial Highlights:
* Revenues up 51% to �4.9m (2007: �3.3m) of which online revenues up 58%
* Organic revenue growth of 11.2% to �3.6m (2007: �3.3m)
* Gross profit margin increased from 65% to 66%
* EBITDA profit �0.02m (2007: loss �0.27m)
Operational Highlights:
* Acquisition of What Investment, a leading subscription title for investors, made on last day of previous financial year and now
incorporated in trading results
* Acquisition of Group's sixth strong brand, which incorporates publishing rights - Information Age magazine, with accompanying
website and a range of events
* Business XL redesign successfully undertaken in the last quarter of 2007/08
Review of activities for the financial year ended 31 January 2008:
I am delighted to report a much-improved performance for the year including the achievement of the important milestone of delivering a
full year EBITDA profit. The improvement has been driven by increasing revenues across the board but primarily as a result of the 58% growth
in our online activities, of which 62% was from organic growth.
On 6 February 2007, we acquired What Investment and, on 8 November 2007, Information Age. These two highly-regarded brands have been
published for many years but we are confident that we have yet to exploit their full online and event potential.
What Investment had a very good year; the publication's website, whatinvestment.co.uk, was relaunched and is steadily building traffic.
It has exceeded all our expectations.
Information Age was only owned by the Group for three months. During this time it was successfully integrated into the Group and we have
been able to realise immediate annualised savings of �0.25 million, with further significant savings due to be realised in the 2008/9
financial year.
Enquiries:
Vitesse:
Sara Williams www.vitessemedia.co.uk
Kym Kingwill 020 7250 7010
KBC Peel Hunt - NOMAD and advisor
Daniel Harris or Capel Irwin 020 7418 8900
CHAIRMAN'S STATEMENT
Trading update for the first quarter 2008/9
During the first quarter, two major events were staged. The inaugural Rosenblatt New Energy Awards was launched at the Jumeirah Carlton,
an event that was immediately successful both in profits and enjoyment and has already transferred to the Natural History Museum for the
2009 event in order that an increased number of guests can be accommodated. The M & A Awards event enjoyed a strong second year and was
transferred to the Hilton Park Lane, London, to provide us with a larger venue. The success of these events meant that we were on budget for
the first two months, February and March.
Trading in April has proved to be difficult, in particular advertising sales for What Investment and Information Age. However,
subscription numbers for What Investment showed a strong upturn and the redesign of Business XL, which occurred in the last quarter of
2007/08, won many new friends resulting in a good financial performance for advertising in the magazine. The sales team for Business XL is
also benefiting from working closely with the sales team for Information Age, thus winning new business.
The year ahead
We have carried out a comprehensive review of our activities following the acquisitions of our fifth and sixth brands last year. We have
examined how we can work more efficiently across our titles and platforms and have refocused our efforts, particularly in the area of
events.
As a result, in the last quarter of the financial year under review, we commenced the process of driving through substantial changes in
the way we work, a process which has continued into the current financial year. Whilst the Company will show a loss at the interim stage,
the anticipated annualised cost savings of over �0.5m will have their full impact in the last six months of the current financial year at
which time the full benefits of this reassessment will be apparent.
We continue to refresh and invest in all our brands. In June 2008, SmallBusiness.co.uk was relaunched, and GrowthBusiness.co.uk,
Information-Age.com and GrowthCompany.co.uk will also be redesigned in the second half of the year. A new design for M & A magazine was
unveiled in early July and a new look for What Investment will be finalised in the autumn.
We continue to examine and develop new ideas that will enable us to exploit our intellectual property to the full and are confident
that, once the economy returns to a more positive note, the Company will demonstrate strong profit and financial performance.
ESM Williams
Chairman and Chief Executive
CONSOLIDATED INCOME STATEMENT
for the period ended 31 January 2008
Period ended Period ended
31-Jan 06-Feb
2008 2007
� �
Revenue
Existing operations 3,629,806 3,265,112
Acquired operations 1,310,042 -
________ ________
Continuing operations 4,939,848 3,265,112
Cost of sales (1,660,509) (1,148,611)
________ ________
Gross profit 3,279,339 2,116,501
Administrative expenses (3,364,969) (2,447,131)
_______ ________
Operating loss
Existing operations (672,071) (330,630)
Acquired operations 586,441 -
_______ _______
Continuing operations (85,630) (330,630)
Finance costs (17,348) (10,434)
Finance income 4,900 1,436
------- --------
Loss before tax (98,078) (339,628)
Tax - -
------- --------
Loss for the period (98,078) (339,628)
Attributable to equity holders (98,078) (339,628)
of the parent
Earnings per share
Basic (0.45p) (1.95p)
Diluted (0.45p) (1.95p)
CONSOLIDATED BALANCE SHEET
at 31 January 2008
31-Jan 06-Feb
2008 2007
� �
Non-current assets
Goodwill 1,172,832 611,966
Other intangible assets 1,530,327 908,487
Property, plant and equipment 208,894 190,139
Trade and other receivables 21,139 21,139
-------- --------
2,933,192 1,731,731
-------- --------
Current assets
Inventories 16,996 -
Trade and other receivables 1,247,539 620,734
Cash and cash equivalents - 181,092
-------- --------
1,264,535 801,826
-------- --------
Total assets 4,197,727 2,533,557
======== ========
Equity
Share capital 2,450,558 2,090,891
Share premium account 2,369,491 1,844,929
Share option reserve 37,466 32,031
Other reserves 103,904 103,904
Retained earnings (3,194,301) (3,096,224)
________ ________
TOTAL EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS 1,767,118 975,531
OF THE PARENT COMPANY
Non-current liabilities
Bank loans 153,095 30,769
Obligations under finance leases 22,498 45,663
Deferred tax liability 147,026 -
______ ______
332,619 76,432
______ ______
Current liabilities
Trade and other payables 1,852,324 1,407,284
Bank overdrafts and loans 212,079 30,770
Obligations under finance leases 43,587 43,540
________ ________
2,107,990 1,481,594
________ ________
Total liabilities 2,430,609 1,558,026
________ ________
TOTAL EQUITY AND LIABILITIES 4,197,727 2,533,557
======== ========
CONSOLIDATED CASH FLOW STATEMENT
for the period ended 31 January 2008
31-Jan 06-Feb
2008 2007
� �
NET CASH USED IN
OPERATING ACTIVITIES (304,415) (541,875)
------- -------
INVESTING ACTIVITIES
Interest received 4,900 1,436
Acquisition of subsidiaries (net of cash (678,289) (35,936)
acquired)
Purchases of property, plant and equipment (132,793) (69,943)
Purchases of intangible assets - (625,807)
______ ______
NET CASH USED IN INVESTING ACTIVITIES (806,182) (730,250)
______ ______
FINANCING ACTIVITIES
Proceeds from issue of share capital 751,539 1,057,501
Share issue costs (80,860) (49,868)
Repayments of borrowings (44,341) -
Repayment of obligations under finance (44,809) (19,868)
leases
New bank loans raised 250,000 -
------ ------
NET CASH FROM FINANCING ACTIVITIES 831,529 987,765
______ ______
NET DECREASE IN CASH AND CASH (279,068) (248,360)
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 181,092 465,452
_______ _______
CASH AND CASH EQUIVALENTS AT END OF PERIOD (97,976) 181,092
Statement of changes in equity ATTRIBUTABLE TO EQUITY SHAREHOLDERS
Share capital Share-based payment Other reserves Retained
earnings Total
Share premium reserve
� � � �
� �
As at 1 February 2006 1,594,750 1,333,437 22,019 103,904
(2,756,596) 297,514
Loss for period - - - -
(339,628) (339,628)
1,594,750 1,333,437 22,019 103,904
(3,096,224) (42,114)
Issue of share capital 496,141 561,360 - -
- 1,057,501
Recognition of share-based - - 10,012 -
- 10,012
payments
Issue costs - (49,868) - -
- (49,868)
As at 6 February 2007 2,090,891 1,844,929 32,031 103,904
(3,096,224) 975,531
Loss for period - - - -
(98,078) (98,078)
2,090,891 1,844,929 32,031 103,904
(3,194,301) 877,454
Issue of share capital 359,667 605,422 - -
- 965,089
Recognition of share-based - - 5,435 -
- 5,435
payments
Issue costs - (80,860) - -
- (80,860)
As at 31 January 2008 2,450,558 2,369,491 37,466 103,904
(3,194,301) 1,767,118
NOTES
For the year ended 31 January 2008
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 31 January 2008 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 6 February 2007 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) of the Companies Act 1985. Statutory accounts for the year ended 6 February 2007 have been restated
in accordance with International Financial Reporting Standards (IFRS).
2. For all periods up to 6 February 2007 Vitesse Media plc has prepared its financial statements in accordance with UK Generally
Accepted Accounting Principles (UK GAAP). AIM Rules require that the annual consolidated financial statements of Vitesse Media plc for the
year ended 31 January 2008 be prepared in accordance with International Financial Reporting Standards (IFRS).
Accordingly, these financial statements have been prepared for the first time in accordance with International Financial Reporting
Standards and are covered by IFRS1, First-time Adoption of IFRS.
In preparing these financial statements the comparative figures previously reported under UK GAAP have been restated for the transition
to IFRS.
3. As required under IFRS 1, the equity reconciliations at 1 January 2006 (the transition date for IFRS) and at 6 February 2007 (date of
last UK GAAP financial statements) are set out above in the Statement of changes in equity attributable to equity shareholders of the
parent.
The amortisation charged under UK GAAP for the year ended 6 February 2006 was charged in accordance with UK GAAP policies and was also
considered necessary to bring the goodwill to an accurate carrying value. Under IFRS goodwill cannot be amortised but an impairment is
instead required for the year ended 6 February 2006. The resulting loss for the year ended 6 February 2006 is therefore the same under IFRS
as reported in the audited accounts prepared under UK GAAP.
Under IFRS goodwill previously accounted for on the acquisition of investments has been restated as "Other intangible assets" in
accordance with IFRS 3 - Business combinations. This reclassification does not affect the figures previously stated. In addition the total
assets, equity and liabilities reported under UK GAAP are the same as that reported under IFRS.
4. EARNINGS/LOSS PER SHARE
a) Basic
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 period, excluding ordinary shares purchased by the Company and held as treasury shares.
2008 2007
� �
Loss attributable to equity holders of the Company (98,078) (339,628)
Weighted average number of ordinary shares in issue 21,812,906 17,472,652
Basic and diluted earnings per share (pence per (0.45p) (1.95p)
share) ====== ======
(b) Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of
all dilutive potential ordinary shares. The Company has one category of dilutive potential ordinary shares: share options. Applicable. The
Company has made a loss and the potential share options are therefore anti-dilutive.
5. CALLED-UP SHARE CAPITAL
2008 2007
� �
2,500,000 2,500,000
Authorised: Number of Share Capital
25,000,000 Ordinary shares of Shares �
10p each �
Issued and fully paid
Ordinary shares of 10p each
As at 1 February 2006 15,947,503 1,594,750
Shares issued 4,961,411 496,141
Issue costs - -
As at 6 February 2007 20,908,914 2,090,891
Shares issued 3,596,663 359,667
Issue costs - -
As at 31 January 2008 24,505,577 2,450,558
Shares issued during the period to raise additional financing for the acquisition of Information Age Ltd.
6. This preliminary announcement was approved by the Board on 17th July 2008.
Copies of this announcement are available at the office of the company's nominated adviser, KBC Peel Hunt at the address below.
KBC Peel Hunt, 4th Floor, 111 Broad Street, London EC2N 1PH
or at vitessemedia.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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