TIDMVIS
RNS Number : 7956Q
Vitesse Media PLC
04 September 2014
Vitesse Media Plc
Unaudited interim results for the six months ended 31st July
2014; acquisition of Carduus Capital; issue of loan stock
Highlights:
-- Revenues for the period up 4% on H1'13
-- Significant reduction in pre-tax losses down by 48% to GBP72k
(H1'13 loss GBP137k) and loss before depreciation, amortisation and
share options more than halved to GBP45k (H1'13 loss GBP97k)
-- Revenue from events up by 41%
-- Development of the crowd funding platform continues apace
-- Issue of GBP60k loan stock completed
-- Acquisition of Carduus Capital, an FCA regulated business
For further information:
Vitesse Media plc
Executive Chairman: Sara
Williams 020-7250 7010
CEO: Niki Baker 020-7250 7010
Westhouse Securities Ltd
Martin Davison 020-7601 6100
Kreab Gavin Anderson
Robert Speed 020-7074 1800
About Vitesse Media plc
Vitesse Media plc is a leading b2b media business, specialising
in technology, SME business and high-net worth investment through
events, digital activities, data and research. The business is
developing a crowd-funding and peer-to-peer lending platform to
leverage its existing client and readership base. Vitesse Media plc
is quoted on AIM.
Comment on the results for the six months to 31 July 2014
Revenues for the six months ended July 2014 were ahead by 4%
over the corresponding prior year period. The Group achieved a
significant reduction in pre-tax losses, down by 48% to GBP72k and
a corresponding reduction in the loss before depreciation,
amortisation and share options, which was more than halved to
GBP45k. In addition, the Group completed the issue of a GBP60k loan
stock and secured for a nominal sum the acquisition of Carduus
Capital, an FCA regulated business, in order to accelerate the
regulatory approval of its crowd funding business.
Events revenues were up by 41% for the period, achieved mainly
by winning contracts for managed events, but also the launch of SDX
Symposium and Tech Invest North. Four further new events will be
launched during the next twelve months.
Revenues from investment products rose by 3%, with online
revenues increasing over 40%, which is the first increase seen in
this segment in four years. Notably, the What Investment web site
achieved a 76 % increase in unique users, with page views up 72% to
over 600,000.
Trading in the first half for our SME websites was
disappointing, although the transition towards non-advertising
revenues continued, with an increase of 59% in revenues
attributable to the small business club, guides and bespoke
projects.
Information Age, our technology title, saw revenues for its
events doubled in the period and a steady increases in online
revenues and lead generation, whilst we reduced the overheads for
the brand by 40%.
Development of the alternative finance platform
Development of the crowd-funding platform continues on
timetable. The scoping of technical aspects is now complete and
coding has begun. The group is developing marketing strategies that
leverage synergies across the Vitesse client and readership
base.
Carduus Capital
In order to accelerate the process of securing regulation for
the Group's crowdfunding business ahead of its launch, Vitesse has
acquired for the sum of GBP10,000 Carduus Capital from Derek
Stewart, a former director and continuing shareholder of Vitesse
Media plc, and his partner Scott MacDonald. The acquisition will
accelerate the regulation of the Group's crowdfunding platform.
Issue of loan stock
The board decided that, in view of the development of its new
business strategy, and the wish to accelerate the investment in the
upgrading of our technology platforms, that it would be prudent to
secure new financing for the business. Five shareholders (Andrew
Brode, Greenhill LLC, Alan Mearns, David Smith and Sara Williams)
have provided GBP60k of funding through subscription to an issue of
loan stock.
The loan is a related party transaction for the purposes of the
AIM Rules. Accordingly, as required by the AIM Rules, the
independent directors of the Company, being for the purposes of the
loan Niki Baker and Keith Willey, having consulted with the
Company's nominated adviser, Westhouse Securities Limited, consider
that the terms of the transaction are fair and reasonable in so far
as the Company's shareholders are concerned.
Outlook
I am pleased to report that, despite certain challenges that
remain ahead, the outlook for the group is positive for the year
and the board expects year on year improvement once again.
Consolidated statement of comprehensive
income
For the six months 31 July 2014 31 July
ended 2014
6 months ended 6 months Year ended
ended
31 July
31 July 2014 2013 31 January 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Revenue 1,042 1,002 2,110
1,042 1,002 2,110
Cost of sales (344) (277) (572)
Gross profit 698 725 1,538
Administrative expenses (761) (858) (1,708)
Operating loss (63) (133) (170)
Finance costs (9) (4) (8)
Finance income - 0
Loss before tax (72) (137) (178)
Tax expense - - -
Loss for the period
attributable (72) (137) (178)
to owners of the parent
=============== ============ ================
Loss per share
Basic (0.14p) (0.4p) (0.47p)
=============== ============ ================
Diluted (0.14p) (0.4p) (0.47p)
=============== ============ ================
Consolidated statement of financial
position
As at 31 July
2014
6 months
ended 31
July 2014 6 months ended Year ended
(unaudited) 31 July 2013 (unaudited) 31 January 2014 (audited)
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Goodwill 729 729 729
Other intangible
assets 1,414 1,378 1,368
Property, plant
and equipment 3 5 3
Trade and other
receivables - 21 -
------------- -------------------------- ----------------------------
2,146 2,133 2,100
------------- -------------------------- ----------------------------
Current assets
Inventories 16 18 16
Trade and other
receivables 341 414 319
Cash and cash
equivalents 177 19 227
------------- -------------------------- ----------------------------
534 451 562
Total assets 2,680 2,584 2,662
============= ========================== ============================
EQUITY AND LIABILITIES
Equity
Share capital 2,805 2,684 2,779
Share premium
account 3,239 3,095 3,209
Share option
reserve 133 144 133
Other reserves 104 104 104
Retained earnings (4,749) (4,638) (4,677)
Total equity attributable
to 1,532 1,389 1,548
------------- -------------------------- ----------------------------
owners of the parent
Current liabilities
Trade and other
payables 827 974 816
Borrowings 211 221 188
------------- -------------------------- ----------------------------
1038 1,195 1,004
Non- current liabilities
Borrowings 110 - 110
------------- -------------------------- ----------------------------
Total liabilities 1148 1,195 1,114
Total equity and liabilities 2,680 2,584 2,662
============= ========================== ============================
Consolidated statement of cash
flows
6 months ended 6 months ended Year ended
31 July 2014 31 July 2013 31 January 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Loss before taxation (72) (137) (178)
Adjustments
Finance cost 9 4 8
Amortisation 23 27 52
Depreciation of property, plant and equipment 1 2 4
Share-based payment charge - 12 2
Operating cash flows before movements (39) (92) (112)
in working capital
Decrease/(increase) in inventories - 1 3
(Increase)/decrease in receivables (22) (81) 36
Increase/(decrease) in payables 11 186 27
Cash flows from (used in) operating activities (50) 13 (46)
Interest received - -
Interest paid (9) (4) (8)
Net Cash from/(used in) operating activities (59) 9 (54)
---------------- --------------- -------------------------
Investing Activities
Purchases of property, plant and equipment - (4) (4)
Purchases of intangible assets (70) (13) (28)
Net cash used in investing activities (70) (17) (32)
---------------- --------------- -------------------------
Financing Activities
Proceeds from issue of share capital 56 - 209
Share issue costs - - -
Short term loan 23 55 55
Drawdown on invoice discounting facility 0 (3) (36)
Proceeds from long-term borrowings 110
Net cash (used in)/generated from financing activities 79 52 338
---------------- --------------- -------------------------
Net increase in cash and cash equivalents (50) 44 253
Cash and cash equivalents at beginning of period 227 (25) (25)
---------------- --------------- -------------------------
Cash and cash equivalents at end of period 177 19 227
================ =============== =========================
Consolidated Statement
of changes in equity
Share
6 months ended 31 July Share premium options Other Retained
2014 Share capital Account reserve reserves earnings Total
GBP GBP GBP
GBP '000 GBP '000 '000 '000 GBP '000 '000
ATTRIBUTABLE TO OWNERS
OF PARENT
As at 1(st) February 2014 2,779 3,209 133 104 (4,677) 1,548
Profit for the period - - - - (72) (72)
Total comprehensive income
for the period - - - - (72) (72)
============== ============== ========= ========== ========== ========
TRANSACTIONS WITH OWNERS
IN THEIR CAPACITY AS OWNERS
Issue of share capital 26 30 - - - 56
Issue costs - - - - - -
TOTAL TRANSACTIONS WITH
OWNERS IN THEIR CAPACITY
AS OWNERS - - - - - -
-------------- -------------- --------- ---------- ---------- --------
Recognition of share-based
payments - - - -
Share options lapsed - - - - - -
As at 31 July 2013 2,805 3,239 133 104 (4,749) 1,532
============== ============== ========= ========== ========== ========
12 months ended 31 January
2014
ATTRIBUTABLE TO OWNERS
OF PARENT
As at 1 February 2013
2,684 3,095 132 104 (4,501) 1,514
Profit for the year
- - - - (178) (178)
Total comprehensive income
for the period
- - - - (178) (178)
============== ============== ========= ========== ========== ========
TRANSACTIONS WITH OWNERS
IN THEIR CAPACITY AS OWNERS
Issue of share capital
Issue costs 95 114 - - - 209
- - - - - -
TOTAL TRANSACTIONS WITH
OWNERS IN THEIR CAPACITY
AS OWNERS
95 114 - - - 209
-------------- -------------- --------- ---------- ---------- --------
Recognition of share-based
payments
Share options lapsed - - 2 - - 2
As at 31 January 2014 - - (1) - 1 -
2,779 3,209 133 104 (4,677) 1,548
============== ============== ========= ========== ========== ========
6 months ended 31 July
2013
ATTRIBUTABLE TO OWNERS
OF PARENT
As at 1(st) February 2013
2,684 3,095 132 104 (4,501) 1,514
Profit for the period
- - - - (137) (137)
Total comprehensive income
for the period
-------------- -------------- --------- ---------- ---------- --------
- - - - (137) (137)
============== ============== ========= ========== ========== ========
TRANSACTIONS WITH OWNERS
IN THEIR CAPACITY AS OWNERS
Issue of share capital
Issue costs - - - - - -
- - - - - -
TOTAL TRANSACTIONS WITH
OWNERS IN THEIR CAPACITY
AS OWNERS
-------------- -------------- --------- ---------- ---------- --------
- - - - - -
-------------- -------------- --------- ---------- ---------- --------
Recognition of share-based
payments
Share options lapsed - - 12 - - 12
As at 31 July 2013 - - - - - -
2,684 3,095 144 104 (4,638) 1,389
============== ============== ========= ========== ========== ========
Notes to the Interim Results
1. Basis of preparation
These unaudited condensed consolidated interim financial
statements are for the six months ended 31 July 2014. They have
been prepared in accordance with recognition and measurement
principles of International Financial Reporting Standards (IFRS) as
adopted by the European Union. This report should be read in
conjunction with the annual financial statements for the year ended
31 January 2014, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union and International Financial Reporting
Interpretations Committee ('IFRIC') Interpretations and the
Companies Act 2006, as applicable to companies reporting under
IFRS.
The financial information in this interim announcement does not
constitute statutory accounts within the meaning of Section 434 of
the Companies Act 2006. The unaudited interim financial statements
were approved by the Board on.......
The comparative financial information for the year ended 31
January 2014 does not constitute statutory accounts within the
meaning of Section 434 of the Companies Act 2006. The statutory
accounts of Vitesse Media plc for the year ended 31 January 2014
have been reported on by the Company's auditor, Baker Tilly UK
Audit LLP, and have been delivered to the Registrar of
Companies.
The accounting policies adopted in the preparation of the
interim condensed consolidated financial statements are consistent
with those followed in the preparation of the Group's annual
financial statements for the year ended 31 January 2014.
These financial statements have been prepared under the
historical cost convention.
The financial information for the six months ended 31 July 2014
is unaudited.
Nature of operations and general information
Vitesse Media plc and subsidiaries' ('the Group') principal
activities include the provision of online, print publishing and
events, specialising in growing businesses. The Group provides a
network for CEOs and other directors, their investors, advisers and
suppliers.
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 Floor 6, St. Andrew Street,
London, EC1Y 8ST. Vitesse Media plc's shares are listed on the AIM
Market of the London Stock Exchange.
Vitesse Media plc's consolidated interim financial statements
are presented in Pounds Sterling (GBP), which is also the
functional currency of the parent company.
2. Segmental information
Since the end of the financial year, 31 January 2013, we report
our income segments as Events, SME, Investment and Technology,
dropping the segmental information on business and investment as no
longer being relevant to the management of the business.
Events SME Investment Technology Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
6 months ended 31 July 2014
Segmental revenue
- continuing 325 250 221 246 1,042
Total segmental
revenue 325 250 221 246 1,042
-------- -------- ----------- ----------- --------
Segment result 325 250 221 246 1,042
6 months ended 31
July 2013
Segmental revenue
- continuing 258 277 224 242 1,001
Total segmental
revenue 258 277 224 242 1,001
-------- -------- ----------- ----------- --------
Segment result 258 277 224 242 1,001
-------- -------- ----------- ----------- --------
12 months ended
31 January 2014
Segmental revenue
- continuing 696 572 426 415 2,109
Total segmental
revenue 696 572 426 415 2,109
---- ---- ---- ---- ------
Segment result 696 572 426 415 2,109
---- ---- ---- ---- ------
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.
6 months to 31 6 months to Period end
July 2013 31 July 2013
(Unaudited) (Unaudited) 31 January
2014
(audited)
------------------------- --------------- -------------- ------------
GBP'000 GBP'000 GBP'000
------------------------- --------------- -------------- ------------
Earnings/(loss) for the
period (72) (137) (178)
------------------------- --------------- -------------- ------------
No. No. No.
------------------------- --------------- -------------- ------------
Weighted average number
of shares 49,772,912 34,903,715 38,076,241
------------------------- --------------- -------------- ------------
4. Dividends
No dividend is proposed for the six months ended 31 July
2014.
5. Copies of Interim Results
Copies of the Interim Results will be available from
www.vitessemedia.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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