TIDMVIS
RNS Number : 7195C
Vitesse Media PLC
30 June 2016
VITESSE MEDIA plc
RESULTS
Vitesse Media plc ("Vitesse" or the "Company") is pleased to
announce its audited final results for the year ended 31 January
2016.
Chairman's Report
HIGHLIGHTS
-- Total revenue decreased by 5.7% to GBP2.13m (2015: GBP2.26m) during the transition from low
margin event management contracts to our own events
-- Gross margin has risen to 70% (2015: 67%)
-- EBITDA of GBP29k (2015: GBP22k)
-- Operating loss at almost breakeven (-GBP7k) (2015: -GBP20k) before exceptional costs
-- Direct costs reduced by 12% to GBP672k (2015: GBP765k)
-- Positive action to remove GBP188k of exceptional costs
-- Post-year end, subscription of GBP250,000 by Chris Ingram,
Chairman of the Company, at 1.8p per share to support the Company's
development and expansion
OVERVIEW OF RESULTS
2015/2016 has been a 'tidying up' year for Vitesse.
Operationally, the Company has ended up in a broadly break-even
position with a small operating loss of -7K versus -20K in 2015.
While this is, of course, not satisfactory it means that the
Company has moved away from the heavy losses of recent years to a
more stable footing. The Board is not recommending the payment of a
dividend.
Behind the apparent small changes in results, a number of
significant things have happened:-
1. REVENUE
The 5.7% reduction in revenue year-on-year is almost entirely
due to the conscious decision in the Events Division to move away
from the small, low margin managed events to concentrate on our own
events. This included creating new events, of which Women In
Technology with 500 attendees in only its second year, is a good
example with revenue increasing by 19% GBP198k.
2. COST OF SALES
Cost of sales reduced by 12.8% compared with last year due, in
part, to a reduction in third-party event management coupled with
some changes in product mix.
3. ADMIN EXPENSES
Savings in administrative expenses of GBP54k have been brought
about by an underlying reduction in headcount and staff costs, and
lower premises costs following the relocation of the office in late
2014.
4. EXCEPTIONAL COSTS
These were a sizeable GBP188k and followed a close review of the
Company's accounts. The two main items were the previously
announced decision not to proceed with the crowd-funding project in
the way it was planned, resulting in an impairment charge of
GBP125k, and GBP44k of legal costs incurred on an aborted
transaction.
SUBSCRIPTION
The Company announced on 29 January 2016 that, conditional on
shareholders' approval, I would invest a total of GBP250,000 for
13,888,889 new ordinary shares in the Company at 1.8p per share.
The proceeds were to be used to support the Company's development
and expansion. A circular was published to convene a general
meeting on 12 February 2016 at which shareholders' approval was
obtained.
PROSPECTS
Good progress has been made in the last two years in cutting
costs. While there is some scope for further reductions, this will
not play a significant part in the progress of the Company in the
near future. Growing volume is now the key. However, there is
certainly scope for increased productivity and that is the purpose
of the imminent launch of our new technology platform, unifying our
digital publishing and IT infrastructure whilst enabling us to
build our data. Simply put, we need to attract considerably more of
the right audience, measure them better and as a result charge
advertisers and sponsors more appropriately.
We are putting more resource into Sales and Marketing - this is
emphatically not an area in which to economise! The Company hired
its first Commercial Director post year-end and is also making one
or two more sales appointments.
Events has been the best performing division in the last few
years, but there is still scope to improve: by increasing
attendances to existing events and creating new ones - we have a
good track record in doing this. This year new launches include The
British Small Business Awards and Data 50.
All of the above relates to organic growth and we believe these
steps can restore us to a position where the Company makes a
sensible profit margin: starting this year, but building into
2017/18. At the same time, if relevant acquisition opportunities
present themselves, we must be in the right shape to take advantage
of them.
FINANCIAL YEAR-
The Group is proposing to change its year-end from 31 January to
31 March with effect from 31 March 2017. The current financial year
will therefore be extended by two months to 31 March 2017,
following which the Company will announce half-yearly unaudited
results to 30 September 2017 with comparable figures for the 6
months ending 30 September 2016. The reason for this change is to
ensure the business operations can be managed and reported more
effectively. Currently many of the Company's large and successful
events occur at the very end of January and this causes significant
pressure in terms of management and finance.
CURRENT TRADING
The year has started well with the first four months all ahead
of the corresponding months last year.
Notice of AGM and publication of Annual Report
The AGM will be held on 28 July at 10.00am at the offices of
Stephenson Harwood LLP, Finsbury Circus, London EC2R 7SH. A notice
of meeting together with the Annual Report & Accounts will be
dispatched to shareholders on 4 July 2016.
A copy of this Chairman's Report and audited financial
statements will be posted today on the Company's website at
www.vitessemedia.com, as will the Annual Report & Accounts when
published in due course.
The audited financial information for the years ended 31 January
2016 and 31 January 2015 contained in this announcement do not
constitute statutory accounts as defined in the Companies Act 2006.
The comparative financial information is based on the statutory
accounts for the financial year ended 31 January 2015. Those
accounts, upon which the auditors issued an unmodified opinion with
an emphasis of matter paragraph relating to going concern, have
been delivered to the Registrar of Companies. The financial
information for the year ended 31 January 2016 has been extracted
from the audited financial statements of Vitesse Media Plc which
will be delivered to the Registrar of Companies in due course. The
auditors have issued an unmodified opinion on the financial
statements for the year ended 31 January 2016 which includes an
emphasis of matter paragraph in respect of going concern and does
not include any statement under Section 498 (2) or (3) of the
Companies Act 2006. The preliminary announcement was approved by
the Board of Directors and authorised for issue on 30th June
2016.
The Group prepares its annual consolidated financial statements
in accordance with International Financial Reporting Standards
(IFRS) and International Financial Reporting Interpretations
Committee (IFRIC) endorsed by the European Union (EU) and with
those parts of the Companies Act 2006 applicable to companies
reporting under IFRS. The financial information included in this
announcement does not include all the disclosures required by IFRS
or the Companies Act 2006 and accordingly it does not itself comply
with IFRS or the Companies Act 2006.
For further information, please contact:
Vitesse Media Plc
Executive Chairman: Chris Ingram
Chief Executive: Niki Baker
020 7250 7010
020 7250 7043
Stockdale Securities Limited
Tom Griffiths
020 7601 6100
Kreab
Robert Speed
020 7074 1800
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 January 2016
2016 2015
GBP GBP
Revenue 2,130,235 2,259,768
Cost of sales (641,776) (736,071)
________ ________
Gross profit 1,488,459 1,523,697
Administrative expenses (1,478,966) (1,532,752)
Share-based payments (16,659) (11,234)
________ ________
Operating loss (7,166) (20,289)
Exceptional costs (188,315) -
Finance costs (8,565) (7,767)
________ ________
Loss before tax (204,046) (28,056)
Income tax - -
________ ________
Loss for the year and total
comprehensive income for the
year attributable to owners
of the parent (204,046) (28,056)
Loss per share attributable
to the owners of the parent
Basic and diluted (0.40p) (0.06p)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 January 2016
2016 2015
GBP GBP
Non-current assets
Goodwill 729,332 739,332
Other intangible assets 1,369,486 1,465,184
Property, plant and equipment 1,121 3,648
________ ________
2,099,939 2,208,164
________ ________
Current assets
Inventories 15,533 15,533
Trade and other receivables 409,384 555,600
Cash and cash equivalents 77,411 27,368
________ ________
502,328 598,501
________ ________
Total assets 2,602,267 2,806,665
________ ________
Equity
Share capital 2,811,068 2,811,068
Share premium account 3,257,810 3,257,810
Share option reserve 117,786 101,127
Other reserves 103,904 103,904
Retained earnings (4,866,439) (4,662,393)
________ ________
Total equity attribUtable to
OWNERS OF THE PARENT 1,424,129 1,611,516
NON CURRENT LIABILITIES
Borrowings - 110,000
________ ________
- 110,000
CURRENT LIABILITIES
Trade and other payables 724,478 797,618
Borrowings 453,660 287,531
________ ________
1,178,138 1,085,149
________ ________
Total liabilities 1,178,138 1,195,149
________ ________
Total equity and liabilities 2,602,267 2,806,665
________ ________
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 January 2016
2016 2015
GBP GBP
CASH FLOWS GENERATED FROM/(USED
IN) OPERATIONS 37,773 (197,076)
Interest paid (8,565) (7,767)
------- -------
NET CASH GENERATED FROM/(USED
IN) OPERATING ACTIVITIES 29,208 (204,843)
------- -------
INVESTING ACTIVITIES
Purchases of property, plant
and equipment - (1,013)
Purchases of intangible assets (40,794) (149,673)
______ ______
NET CASH USED IN INVESTING ACTIVITIES (40,794) (150,686)
______ ______
FINANCING ACTIVITIES
Proceeds from issue of ordinary
shares - 56,218
Other loans 40,000 90,000
(Repayment)/Payment of invoice
discounting facility (5,405) 9,200
------ ------
NET CASH GENERATED FROM FINANCING
ACTIVITIES 34,595 155,418
______ ______
NET INCREASE/(DECREASE) IN CASH
AND CASH EQUIVALENTS 23,009 (200,111)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR 27,368 227,479
_______ _______
CASH AND CASH EQUIVALENTS AT
END OF YEAR 50,377 27,368
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 January 2016
ATTRIBUTABLE TO OWNERS OF THE
PARENT
Share-based
Share Share payment Other Retained
capital premium reserve reserves earnings Total
GBP GBP GBP GBP GBP GBP
As at 31 January
2014 2,778,994 3,209,166 132,516 103,904 (4,676,960) 1,547,620
Loss for the year - - - - (28,056) (28,056)
Total comprehensive
loss for the year - - - - (28,056) (28,056)
TRANSACTIONS WITH
OWNERS IN THEIR
CAPACITY AS OWNERS
Issue of share
capital 32,074 48,644 - - - 80,718
Total transactions
with owners in
their capacity
as owners 32,074 48,644 - - - 80,718
Recognition of
share-based payments - - 11,234 - - 11,234
Share options lapsed - - (42,623) - 42,623 -
As at 31 January
2015 2,811,068 3,257,810 101,127 103,904 (4,662,393) 1,611,516
Loss for the year - - - - (204,046) (204,046)
Total comprehensive
loss for the year - - - - (204,046) (204,046)
TRANSACTIONS WITH
OWNERS IN THEIR
CAPACITY AS OWNERS
Issue of share
capital - - - - - -
Total transactions
with owners in
their capacity
as owners - - - - - -
Recognition of
share-based payments - - 16,659 - - 16,659
As at 31 January
2016 2,811,068 3,257,810 117,786 103,904 (4,866,439) 1,424,129
This information is provided by RNS
The company news service from the London Stock Exchange
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