RNS Number : 1351E
Vitesse Media PLC
24 September 2008
Vitesse Media Plc
Interim Results
The Board of Vitesse Media Plc (AIM: VIS), the publishing, events and multimedia company, today announces its interim results for the
six month ending 31 July 2008.
Commenting on the results, Vitesse Media's Chairman, Sara Williams, said:
Highlights include:
* Revenues including acquisitions up by 13.6% (2008: �2.36 million; 2007: �2.07 million). Loss for the six months (before expensing
share options) was �249,000 (2007: profit of �5,000)
* Information Age, acquired in November 2007, is now fully integrated
* Cost savings of �630,000 per year identified and introduced and will be coming through in the second half-year
* Activities refocused on higher-yield products, such as larger events
* Business now restructured into two divisions, Business and Investment, which is giving a greater focus to the sales teams
* Business XL has bucked the trend of disappointing print advertising figures for the first six months with a 21% upturn in revenues
for the magazine. In addition, its associated website, GrowthBusiness.co.uk produced revenues up by 11.2%, and revenues for its larger
events rose by nearly 50% due to the launch of the New Energy Awards
* Both online and event revenues for the continuing business showed increases over the 2007 figures, online up by 3.5% and event
revenues (excluding discontinued seminars) up by over 11%
* Information Age and What Investment have both increased their market share of display ads in 2008 compared with 2007. Information
Age has strengthened its market-leading position and What Investment has become the market leader for the first time
* Cash collections have continued strongly throughout the summer, with the average daily receipt for August being our highest ever
* The second-half figures should show a marked improvement over the first half.
Outlook for 2008/09
Information Age has struggled to reach its budget revenue figures since we acquired it; however, under our restructuring, the title is
now ahead of budget revenue for September. Under our ownership, for the period from 1 February 2008 to 31 August 2008, there has been an
improvement of over �140,000 at the bottom line, compared with the same period last year under its original owners. All this augurs well for
the future for this title.
What Investment has endured a very difficult first six months of the financial year, but the team reports an improvement in sentiment
for the autumn, and is ahead of budget for display advertising in both August and September; however, visibility remains poor. Subscriptions
for the title have increased since the start of the year and that trend is expected to continue. The magazine will be relaunched for the
November issue, with a brand new design, and we are busy planning to maximise the impact of this.
Business XL continues to go from strength to strength. It has steadily met its budget for print advertising, and its associated website
has also done well. The launch and huge success of the Rosenblatt New Energy Awards in February has encouraged us to develop a new event,
the Media Magnate Awards, and we are delighted to have secured Canaccord Adams, a leading AIM broker and adviser, as headline sponsor.
Of our other brands, Growth Company Investor will publish more research documents in the autumn and the Quoted Company Awards is set
fair to improve upon last year's figure. Against that, list sales continue to disappoint and subscriptions are proving more difficult to
acquire.
SmallBusiness.co.uk was relaunched in June, generating much interest, but that has not yet fully translated into revenues; we are
looking for that to happen in the autumn.
M&A Magazine was relaunched in July and the second M&A Awards was held in February. We continue to develop the brand, although at this
stage the economic background is making it difficult for us to progress in moving from a breakeven contribution in this financial year to
date to the sort of profit level that we are targeting.
We have worked hard trimming costs and analysing more efficient methods of operation across the group. The full fruits of these should
be felt in the second half of this financial year and the first half of the next financial year.
Outlook for 2009/10 and beyond
We have built a strong cross-platform media business comprising six good brands with healthy franchises. Once the economy has recovered,
we expect there to be significant improvements in profitability. In the meantime, we continue to invest in the brands with a view to
improving the quality of the earnings stream and thus increasing the value of our intangible assets. There is a real opportunity for us to
build a highly profitable B2B media business.
- Ends -
Enquiries:
Vitesse Media Plc
Sara Williams / Kym Kingwill www.vitessemedia.co.uk
KBC Peel Hunt Tel: 020 7418 8900
Matthew Tyler / Daniel Harris
Consolidated Income Statement
For the six months ended 31 July 2008
6 months ended 6 months ended Period ended
31 July 2008 31 July 2007 31 January 2008
(unaudited) (unaudited) (audited)
�'000 �'000 �'000
Revenue - continuing 2,657 1,813 3,630
- acquired 0 544 1,310
2,657 2,357 4,940
Cost of sales 1,049 802 1,661
Gross profit 1,608 1,555 3,279
Administration expenses 1,845 1,546 3,365
Operating (Loss) /profit (237) 9 (86)
Finance costs (35) (7) (12)
(Loss)/profit before taxation (272) 2 (98)
Taxation 0 0 0
(Loss)/profit for the period (272) 2 (98)
(Loss)/earnings per share (pence)
Basic (1.11)p 0.001p (0.45)p
Diluted (1.11)p 0.001p (0.45)p
Consolidated Balance Sheet
as at 31 July 2008
6 months ended 6 months ended Period ended
31 July 2008 31 July 2007 31 January 2008
(unaudited) (unaudited) (audited)
�'000 �'000 �'000
ASSETS
Non-current assets
Tangible fixed assets 185 257 209
Other intangible assets 2,675 1,469 2,703
Trade and other 21 21 21
receivables
2,881 1,747 2,933
Current assets
Inventories 12 0 17
Trade and other 1,231 1,277 1,248
receivables
1,243 1,277 1,265
Total assets 4,124 3,024 4,198
EQUITY AND LIABILITIES
Equity
Share capital 2,451 2,091 2,451
Share premium 2,369 1,843 2,369
Other reserves 164 139 141
Retained earnings (3,466) (3,095) (3,194)
1,518 978 1,767
Non-current liabilities
Bank loans 0 21 153
Obligations under 13 37 23
finance lease
Deferred tax 147 0 147
160 58 323
Current liabilities
Trade and other payables 2,075 1,966 1,896
Bank overdrafts and 371 22 212
loans
2,446 1,988 2,108
Total equity and liabilities 4,124 3,024 4,198
Consolidated cash flow statement
For the six months ended 31 July
2008
6 months ended 6 months ended Period ended
31 July 2008 31 July 2007 31 January 2008
(unaudited) (unaudited) (audited)
�'000 �'000 �'000
Cash inflow from
operating activities
(Loss)/profit (272) 2 (98)
before taxation
Adjustments
Interest paid 37 8 17
Interest received (3) (1) (5)
Amortisation 28 0 2
Depreciation 40 42 102
(170) 51 18
Share option costs 22 3 6
Decrease in 5 0 6
inventories
Decrease/(increase) 16 (656) (357)
in receivables
Increase in payables 187 490 40
Cash generated 60 (112) (287)
from/(used in)
operations
Interest paid (37) (8) (17)
Net cash from/(used 23 (120) (304)
in) operating
activities
Investing activities
Interest received 3 1 5
Acquisition of 0 (2) (678)
subsidiaries
Purchase of (7) (43) (133)
property, plant and
equipment
Net cash (used in) (4) (44) (806)
investing activities
Financing activities
Proceeds from issue 0 0 751
of share capital
Share issue costs 0 0 (81)
Repayments of (233) (10) (44)
borrowings
Repayments of (27) (29) (45)
obligations under
finance leases
New bank loans 0 0 250
raised
Net cash (used (260) (39) 831
in)/from financing
activities
Net decrease in cash (241) (203) (279)
and cash equivalents
Cash and cash (98) 181 181
equivalents at
beginning of period
Cash and cash (339) (22) (98)
equivalents at end
of period
Consolidated Statement of changes in equity
For the six months ended 31 July 2008
Share capital Share premium Account Retained earnings Other reserves Share options
Total
reserve
� '000 � '000 � '000 � '000 � '000
� '000
6 months ended 31 July 2007
As at 7 February 2007 2,091 1,845 (3,097) 104 32
975
Profit for the period 2
2
Shares issue costs (2)
(2)
Share based payment charge 3
3
As at 31 July 2007 2,091 1,843 (3,095) 104 35
978
12 months ended 31 January 2008
As at 7 February 2007 2,091 1,845 (3,097) 104 32
975
Loss for the period (98)
(98)
Shares issued 360 605
965
Shares issue costs (81)
(81)
Share based payment charge 5
5
As at 31 January 2008 2,451 2,369 (3,195) 104 37
1,766
6 months ended 31 July 2008
As at 1 February 2008 2,451 2,369 (3,195) 104 37
1,766
Loss for the period (272)
(272)
Shares issued
0
Share based payment charge 23
23
As at 31 July 2008 2,451 2,369 (3,467) 104 60
1,517
Notes to the Interim Results
1. Basis of preparation
These interim condensed consolidated financial statements are for the six months ended 31 July 2008. They have been prepared in
accordance with IAS 34 "Interim Financial Reporting". This is now the Group's second year of reporting under IFRS and the comparative
information is therefore taken from financial information previously reported under IFRS.
These financial statements have been prepared under the historical cost convention.
These consolidated interim financial statements have been prepared in accordance with the accounting policies used in the period ended
31 January 2008, which are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU).
Nature of operations and general information
Vitesse Media Plc and subsidiaries' ("the Group's") principal activities include the provision of online and print publications and
events, specialising in growing businesses.
Vitesse Media Plc is the Group's ultimate parent company. It is incorporated and domiciled in Great Britain. The address of Vitesse
Media Plc's registered office is 20 Black Friars Lane, London EC4V 6HD. Vitesse Media Plc's shares are listed on the Alternative Investment
Market of the London Stock Exchange.
Vitesse Media Plc's consolidated interim financial statements are presented in Pounds Sterling (�), which is also the functional
currency of the parent company.
These condensed consolidated interim financial statements have been approved for issue by the Board of Directors on 24 September 2008.
The financial information set out in this interim report does not constitute statutory accounts as defined in Section 240 of the
Companies Act 1985. The Group's statutory financial statements for the period ended 31 January 2008, prepared under IFRS, have been filed
with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under
Section 237(2) of the Companies Act 1985.
2. Segmental information
The group operates in one geographical location, being the UK. Accordingly the primary segmental disclosure is based on activity.
Online Print publishing Events Total
�'000 �'000 �'000 �'000
6 months ended 31 July 2008
Segmental revenue - continuing 670 1250 737 2,657
Segmental revenue - acquired 0 0 0 0
Total segmental revenue 670 1,250 737 2,657
Segmental result 557 695 356 1,608
6 months ended 31 July 2007
Segmental revenue - continuing 458 732 623 1,813
Segmental revenue - acquired 54 490 0 544
Total segmental revenue 512 1,222 623 2,357
Segmental result 480 753 322 1,555
12 months ended 31 January 2008
Segmental revenue - continuing 918 1,460 1,252 3,630
Segmental revenue - acquired 182 1,023 105 1,310
Total segmental revenue 1,100 2,483 1,357 4,940
Segmental result 1,064 1,577 638 3,279
3. Earnings/(loss) per share
The calculation of loss per share is based on the following losses and numbers of shares. 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. The Company has made a loss and the potential share options
are therefore anti-dilutive.
6 months to 31 July 2008 6 months to 31 July 2007 Period end
(Unaudited) (Unaudited) 31 January
2008
(audited)
�'000 �'000 �'000
(Loss)/earnings for the period (272) 2 (98)
No. No. No.
Weighted average number of 24,505,577 20,908,914 21,812,906
shares
4. Dividends
No dividend is proposed for the six months ended 31 July 2008.
5. Copies of Interim Results
Copies of the Interim Results will be available from www.vitessemedia.co.uk and from the Company's registered office, 20 Black Friars
Lane, London EC4V 6HD.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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