TIDMVIS
RNS Number : 0099G
Vitesse Media PLC
25 June 2012
AUDITED FINAL RESULTS FOR THE YEAR ENDING 31 JANUARY 2012
CHAIRMAN'S REPORT
HIGHLIGHTS FOR THE YEAR ENDING 31 JANUARY 2012
-- Transformational year with all titles now digitised and five APPs for iPad launched
-- New revenue sources established in event management, bespoke
research and social media campaigns and pipeline building
-- Database integration completed, with enhanced ability to
target customers. Business now on one database platform and better
targeting of customers over the coming year envisaged
-- Programme of new and re-launched web sites continues with
further developments planned for 2012/13
-- Despite challenging second-half trading environment, the
business remained resilient, returning a small trading loss* of
GBP71,500: 2011 trading profit of GBP253,000
-- In advanced negotiations with an industry figure intending to
invest a substantial sum with a view to joining the board and
helping the business grow both organically and by acquisition,
although there can be no certainty that the investment will
proceed.
*pre -reorganisation costs, depreciation, share option expense
and amortisation of intangible assets.
PERFORMANCE DURING THE FINANCIAL YEAR 2011/12
Major strides were taken by the business during this financial
year ending 31 January 2012. All titles are now digitised, offering
an enriched experience for the reader. These titles are now
available either through an App for the iPad, or direct via
enhanced PDF. Since launch circulation for the digital versions
have grown well.
What Investment can now be subscribed for as a pure digital
product and individual copies can be purchased through the App or
directly from us, providing an additional distribution channel for
the title, complementing news stands.
Growth Company Investor is now exclusively available on digital
subscription. Subscriber retention has been good to date and we
will shortly launch a major marketing campaign to build
subscriptions. Early indications are that subscribers find the
online version provides research interactivity, which complements
Growth Company Investor's strong editorial content.
Controlled circulation for the digital version of Information
Age is growing strongly and we are well on target to eradicate or
substantially reduce print copies for these titles.
Finally, an App for Small Business Finance has also been created
and it is possible to purchase reports on finance through this
distribution channel.
During the year, new revenue streams (Event Management, Bespoke
Research and Social Media campaigns) were identified and packaged.
Sales channels now include marketing through two new web sites. We
have signed new contracts for the Event Management service, which
builds on the excellence of the delivery from our hard-working
events team. A pipeline is building for our research services,
which encompass thought leadership, data analysis and surveys. We
are talking to a number of new customers for our research and are
confident that we will build this into a significant revenue
stream.
We have extended our social media channels and developed plans
to build their reach into a significant distribution network for
research, new announcements and statistics. With expenditure on
social media rising by 75% during the last year, according to
market data, we see this as an important area for investment in the
current year. Greater emphasis is being placed on social media
channels by our editorial teams. We are also extending the reach
and range of our video content; more interviews are being conducted
by our in-house team and positioned through our digital and social
media channels.
Data represents an important intangible asset for Vitesse. We
hold valuable contacts and information on many thousands of
entrepreneurs, high net worth investors, intermediaries and
suppliers, which had hitherto been held across a number of discrete
platforms. A major focus of the past year was to link these into an
integrated platform allowing enhanced search and analysis and I am
delighted to announce that we have now achieved this. Some work
remains to clean what has now emerged after the integration, before
work begins analysing and targeting customers to cross sell and
maximize the work we can enact with them.
Two new sites were launched last year,
www.VitesseMediaResearch.co.uk and www.VitesseEventsResearch.co.uk
and there was a major re-launch of our market-leading site
www.GrowthBusiness.co.uk, incorporating many new initiatives and
content from some smaller sites. During the current financial year,
our new revenue strategies will be reflected in the corporate web
site, which will be completely revamped. In addition, building on
the model of GrowthBusiness, there will be re-launches of the
Information Age, Small Business and What Investment sites.
The second half of the year proved difficult for trading,
particularly the autumn of 2011, and the team has done well to
limit the trading loss to GBP71k (un-adjusted pre-tax loss was
GBP0.5m), although it is obviously disappointing to post a loss at
this stage in the cycle, the Group having been so resilient
post-the financial crash.
For further information please contact:
Vitesse Media Plc
Executive Chairman: Sara Williams 020 7250 7010
Chief Executive: Leslie Copeland 020 7250 7014
Westhouse Securities Limited
Tom Price, Martin Davison 020 7601 6100
Kreab Gavin Anderson
Robert Speed, Anthony Hughes 020 7074 1800
OUTLOOK FOR THE CURRENT FINANCIAL YEAR 2012/13
Trading in the first quarter has been steady, although the team
is working on the assumption that the tough trading environment
will continue to affect its markets and customers through the
summer months. That said, the outlook for the Autumn and beyond is
healthier. Moreover, we are positioned in the growing areas of the
media sector, digital and social media. We are also optimistic that
event management and bespoke research will prove to be growing
revenue streams for us. Focus last year was on the transformation
of the group's business and an investment in data and digital
services; the focus for the current year will be on exploitation of
that transformation.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR
ENDED 31 JANUARY 2012
Notes 2012 2011
GBP GBP
Revenue 3 2,942,526 3,313,036
Cost of sales 4 (837,991) (934,532)
________ ________
Gross profit 2,104,535 2,378,504
Administrative expenses 4 (2,248,486) (2,216,127)
Share-based payments 5 (30,110) (71,134)
Goodwill impairment 10 (296,474) -
Restructuring costs 4 (38,054) -
________ ________
Operating (loss)/profit 4 (508,589) 91,243
Finance costs 7 (515) (11,310)
Finance income 7 - 4
________ ________
(Loss)/profit before tax (509,104) 79,937
Tax expense 8 - -
________ ________
(Loss)/profit for the year attributable
to owners of the parent (509,104) 79,937
Total comprehensive income for the year
attributable to owners of the parent (509,104) 79,937
Earnings per share
Basic 9 (1.66p) 0.27p
Diluted 9 (1.66p) 0.27p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 JANUARY
2012
Notes 2012 2011
GBP GBP
Non-current assets
Goodwill 10 729,332 1,025,806
Other intangible assets 10 1,509,614 1,448,451
Property, plant and equipment 11 9,006 40,272
Trade and other receivables 13 21,139 21,139
________ ________
2,269,091 2,535,668
________ ________
Current assets
Inventories 14 21,223 26,216
Trade and other receivables 13 723,733 803,930
Cash and cash equivalents 15 - 67,064
________ ________
744,956 897,210
________ ________
Total assets 3,014,047 3,432,878
________ ________
Equity
Share capital 16 2,610,379 2,610,379
Share premium account 16 2,831,523 2,831,523
Share option reserve 17 170,108 143,044
Other reserves 103,904 103,904
Retained earnings (4,063,543) (3,557,485)
________ ________
Total equity attribUtable to OWNERS OF
THE PARENT 1,652,371 2,131,365
Current liabilities
Trade and other payables 20 1,043,822 977,177
Borrowings 18 317,854 320,388
Obligations under finance leases 19 - 3,948
________ ________
1,361,676 1,301,513
________ ________
Total liabilities 1,361,676 1,301,513
________ ________
Total equity and liabilities 3,014,047 3,432,878
________ ________
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31
JANUARY 2012
2012 2011
Notes GBP GBP
CASH FLOWS FROM OPERATING ACTIVITIES 21 42,795 (129,127)
Interest received - 4
Interest paid (515) (11,310)
------- -------
NET CASH GENERATED FROM/(USED IN) OPERATING
ACTIVITIES 42,280 (140,433)
------- -------
INVESTING ACTIVITIES
Purchases of property, plant and equipment (3,048) (11,766)
Purchases of intangible assets (99,814) (21,040)
______ ______
NET CASH USED IN INVESTING ACTIVITIES (102,862) (32,806)
______ ______
FINANCING ACTIVITIES
Proceeds from issue of share capital - 475,000
Share issue costs - (21,094)
Repayment of obligations under finance
leases (3,948) (10,177)
Repayment from short term borrowings - (170,000)
Repayment of invoice discounting facility (31,997) (1,548)
---------- ----------
NET CASH (USED IN)/GENERATED FROM FINANCING
ACTIVITIES (35,945) 272,181
______ ______
NET (DECREASE)/ INCREASE IN CASH AND
CASH EQUIVALENTS 22 (96,527) 98,942
CASH AND CASH EQUIVALENTS AT BEGINNING
OF YEAR 15 67,064 (31,878)
_______ _______
CASH AND CASH EQUIVALENTS AT END OF YEAR 15 (29,463) 67,064
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 JANUARY
2012
ATTRIBUTABLE TO OWNERS OF THE PARENT
GROUP Share-based
Share Share payment Other Retained
capital premium reserve reserves earnings Total
GBP GBP GBP GBP GBP GBP
As at 1 February 2010 2,560,379 2,427,617 86,013 103,904 (3,651,525) 1,526,388
Profit for the year - - - - 79,937 79,937
Total comprehensive income
for the year - - - - 79,937 79,937
TRANSACTIONS WITH OWNERS
IN THEIR CAPACITY AS
OWNERS
Issue of share capital 50,000 425,000 - - - 475,000
Issue costs - (21,094) - - - (21,094)
Total transactions with
owners in their capacity
as owners 50,000 403,906 - - - 453,906
Recognition of share-based
payments - - 71,134 - - 71,134
Share options lapsed - - (14,103) - 14,103 -
As at 31 January 2011 2,610,379 2,831,523 143,044 103,904 (3,557,485) 2,131,365
Loss for the year - - - - (509,104) (509,104)
Total comprehensive income
for the year - - - - (509,104) (509,104)
TRANSACTIONS WITH OWNERS
IN THEIR CAPACITY AS
OWNERS
Recognition of share-based
payments - - 30,110 - - 30,110
Share options lapsed - - (3,046) - 3,046 -
As at 31 January 2012 2,610,379 2,831,523 170,108 103,904 (4,063,543) 1,652,371
This information is provided by RNS
The company news service from the London Stock Exchange
END
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