UTV Media plc
("UTV" or "the Company" or "the Group")
ROBUST PERFORMANCE IN CHALLENGING MARKETS
UTV DECLARES A 17% DIVIDEND INCREASE
Belfast, London & Dublin - 19 March 2013: UTV Media plc today announces
preliminary results for the year ended 31
December 2012
Financial highlights on continuing operations*
- Group revenue of £120.1m (2011: £121.6m)
- Pre-tax profits of £21.0m (2011: £23.3m)
- Group operating profit of £23.9m (2011: £26.8m)
- Radio GB operating profit up 5% to £13.0m (2011: £12.4m)
- Excluding talkSPORT International, Radio GB operating profit up 12%
- Continued reduction in net debt to £49.4m (2011: £54.7m)
- Net finance costs down by 13% to £3.0m (2011: £3.5m)
- Diluted adjusted earnings per share from continuing operations of 16.92p (2011: 18.96p)
- Proposed final dividend of 5.25p resulting in a full year dividend growth of 17% to 7.00p (2011: 6.00p)
* As appropriate, references to profit include associate income
but exclude discontinued operations and exceptional items
Operational Highlights
- talkSPORT signed deal for Barclays Premier League worldwide audio broadcasting rights to 2016
- talkSPORT acquired worldwide commercial radio rights to FA Cup and Capital One Cup
- Television and Radio Ireland revenues impacted by difficult economic conditions in Ireland
- New Television Network Affiliate Agreement signed with ITV
- Renewal process for Channel 3 Licence to 2024 agreed
- Acquisition of Simply Zesty in March driving New Media revenue growth
- Successful refinancing of bank facilities at competitive terms and pricing
- Strong cash management and reduction in debt with Net Debt:EBITDA ratio of 1.91 times
- Compliance with the provisions of the UK Corporate Governance Code following the appointment
of a new Chairman and three new Non-Executive Directors to the UTV Board during the year
John McCann, Group Chief
Executive, UTV Media plc, said:
"This is a robust performance in what continues to be a
challenging economic environment, especially in Ireland. We have maintained effective control
over costs coupled with strong cash management and continued debt
reduction while at the same time maintaining the market leading
positions enjoyed by our media assets. We have also continued to
invest in the development of our businesses, in particular the
establishment of talkSPORT International; concluded the Network
Affiliate Agreement with ITV; acquired and integrated Simply Zesty
and proceeded with the renewal of the Channel 3 TV licence.
Reflecting our strong cash generation and our confidence in the
future, we have increased the full year dividend by 17% and remain
confident that the Group is well placed to maximise opportunities
going forward."
Key Dates
- 16 May 2013 - Annual General Meeting & Interim Management Statement
- 24 May 2013 - Record date for payment of dividends
- 15 July 2013 - Payment of dividends
- 27 August 2013 - Interim Results Announcement
- 15 November 2013 - Interim Management Statement
For further information contact:
Maitland
James Devas/Tom Buchanan +44 (0) 20 7379 5151
UTV Media plc John McCann, Group
Chief Executive +44 (0) 28 9032 8122 Norman
McKeown, Group Finance Director +44 (0) 28 9032 8122
Orla McKibbin, Head of
Communications +44 (0) 28 9026 2188
Investor Enquiries www.utvmedia.com/investors
Chairman's Statement
Introduction
I am pleased to present my first Chairman's Statement following
my appointment on 30 July 2012. I was
delighted and honoured to be appointed Chairman of your Company
having admired its achievements for a number of years and I very
much hope that my many years of media industry and plc board
experience can bring long term benefit to the Company and its
shareholders.
The Group has a portfolio of high quality media assets in radio,
television and digital media and a strong track record of
outperformance. With revenues derived primarily from advertising
and a fixed cost base, the businesses are strong cash flow
generators and enjoy high levels of operational gearing.
Advertising expenditure however, is closely aligned to the health
of the economy and levels of consumer confidence.
Football pundits on talkSPORT often refer to a "game of two
halves", meaning a game characterised by different fortunes in the first and
second halves. To some extent, a similar sentiment applies to the advertising
markets in which your Group operated in 2012.
In particular, the positive effect of the Euro 2012 football tournament in the first six
months was replaced by a lacklustre performance around the Olympics
in the second half of the year. More generally, a stronger
advertising market in the first half softened in the second six
months to deliver an overall year on year performance which was
slightly down but in line with market expectations.
The volatile nature of the macroeconomic conditions continue to
challenge all of us, but what remains constant, however, is the
high quality of the leading media assets which the Group holds and
which enable it to maintain a competitive advantage in the markets
in which it operates.
Results *
A slight increase in Radio operating profit to £19.0m (2011: £18.9m)
was more than offset by a fall in Television and New Media operating profits
to £3.9m (2011: £6.4m) and £0.9m (2011: £1.5m) respectively. Group operating
profit, therefore, was down 11% at £23.9m (2011: £ 26.8m). After a net
interest charge of £3.0m (2011: £3.5m) and foreign exchange of £0.2m
(2011: £Nil). Group profit before tax and exceptional items was 10% lower than
last year's record £23.3m at £21.0m. Diluted adjusted earnings per share were
16.92p (2011: 18.96p).
[* As appropriate, references to operating profit include
associate income but exclude discontinued operations and
exceptional items.]
Refinancing
In May 2012 we successfully
refinanced our bank facilities for five years. The competitive
margins and covenant headroom obtained reflect a highly cash
generative business with a strong balance sheet.
Dividend
It is testament to the resilience of your company and the cash
generative nature of its businesses that a dividend continued to be declared
every year during the downturn despite the most difficult macroeconomic
environment. For a few years that dividend was constrained by our objective to
reduce debt. That objective still remains in place, but with net debt now some
54% lower than at 31 December 2008, and with our net debt/EBITDA ratio below 2
times, your Board believes that it is appropriate to continue with its
progressive dividend policy while maintaining a due degree of prudence during
uncertain economic conditions.
Accordingly, your Board is recommending a final dividend of 5.25p
per share making a total for the year of 7.00p, which represents an increase
of 17% over last year and a 75% increase from 2010. The final dividend will be
paid on 15 July 2013 to all shareholders on the Register at the close of
business on 24 May 2013.
Radio *
Our Radio GB division performed well in 2012, with a 5% improvement
in operating profit to £13.0m (2011: £12.4m). Within this, talkSPORT's
performance was particularly strong, again outperforming the market in revenue
growth and increasing its contribution to the Group by 26% before accounting
for the expected operating losses of £0.9m (2011: £Nil) in its new
international division. This international division has extensive audio rights
agreements with the Premier League, the Football Association and the Football
League, enabling it to exploit those rights on all audio platforms throughout
most of the world. talkSPORT content in English, Mandarin, Spanish and Bahasa
Malay, can now be heard in many different countries on both radio and other
digital platforms, extending the talkSPORT brand beyond the UK. That brand,
supported by our investment in sports rights and presenters, is of course now
a household name within the UK with over 3 million listeners in our domestic
market tuning in every week to listen to talkSPORT's unique style of sports
commentary and analysis.
Our local radio stations in GB attract 1.2 million listeners weekly
by focussing on providing local content. That local content is attractive not
only to local listeners, but also to local advertisers, a fact which the
Competition Commission noted recently in its preliminary findings on the
Global/GMG merger. However, while local advertising in 2012 performed strongly
for us, up by 9%, national advertising on our local radio stations didn't fare
as well, decreasing by 9%.
The Irish advertising market has declined much more severely than
the GB market in the last few years. This trend continued in 2012 when the
radio market is believed to have been down by 7% to 10%. However, the worst
effects of this further market deterioration were countered by the continuing
strong outperformance of our local radio stations in Ireland which recorded
only a 1% reduction in advertising revenue in local currency. Outperformance
has been, and remains, the keynote of our radio assets in Ireland which enjoy
market leading audience positions in the major cities in Ireland. The
audiences from our stations are aggregated with those of two independent local
stations to create an "Urban Access" package for advertisers which now
provides greater daily reach than the State broadcaster's top national radio
channel. With this reach also concentrated in the urban areas, we are able to
provide a unique and attractive marketing proposition for our advertisers
which drives our outperformance of the market. Adverse movements in the
currency exchange rate resulted in our sterling-denominated Irish radio
advertising revenue decreasing by 7%. As a consequence Radio Ireland operating
profit was also down by 7% to £6.0m (2011: £ 6.4m).
Television
Two important long term strategic objectives were secured during
the year. Firstly, in March we signed a new Network Affiliate Agreement with
ITV plc which provides a stable commercial basis for the delivery of services,
including programmes and new media, for the Channel 3 network. Secondly, in
November, the Secretary of State for Culture, Media and Sport announced her
agreement to Ofcom engaging in the process for the renewal of our television
licence for a further ten years from 1 January 2015 until the end of 2024.
Together, these two agreements will help to underpin our ability to deliver a
regional television service in Northern Ireland for the long term.
In Television, we maintained our outperformance in audience with a
25.9% share of the peaktime viewership compared to the ITV network average
peaktime share of 21.3%. However, this was not translated into advertising
outperformance due to the continuing decline in Irish television advertising.
While we matched our network colleagues in our television advertising revenue
from our London clients, we suffered a 12% reduction in our Irish television
advertising, recording an overall reduction of 7% for the year. As a result,
Television operating profit was down to £3.9m (2011: £6.5m).
New Media
Revenue in our New Media division increased to £12.3m (2011:
£11.4m) with the inclusion of Simply Zesty from 5 March 2012. However, operating profit declined
to £0.9m (2011: £1.5m), with a reduction in profitability at UTV
Internet and the diversion of internal resources within Tibus to
deliver a distribution platform for talkSPORT International, being
the main contributory factors.
In late 2012 into 2013 we restructured our digital assets to bring
greater focus to the individual offerings. UTV Internet was rebranded as UTV
Connect with a greater emphasis being placed on customer service rather than
just price. Technical infrastructure formerly provided by UTV Internet is now
being delivered by Tibus, which will focus on hosting and network services.
The creative web development solutions previously offered by Tibus have been
brought under the Simply Zesty brand. These changes are already having a
positive impact on the overall profitability of the New Media division.
Digital Platforms
We made significant progress in 2012 in attracting audiences to our
various digital platforms. At talksport.co.uk, unique user numbers grew by 45%
to an average monthly figure of over 2.5 million, with monthly page
impressions of more than 18 million. u.tv was re-launched with the
introduction of a new mobile site and new downloadable Apps, resulting in a
38% uplift in traffic to the u.tv website. Across our portals dedicated to
property, jobs and cars, traffic grew collectively by 55%, with PropertyPal
further cementing its market leadership position as the most searched property
portal brand in Northern Ireland.
Emphasis continues to be placed on growing digital revenues
across the UTV Media Group and strong revenue growth is envisaged
for our digital and online assets in 2013.
Prospects
The significant improvement in revenue which talkSPORT has enjoyed
over the last few years has been characterised by revenue spikes during the
major sporting events. The absence of any major sporting event in the first
half of 2013, therefore, will have a temporary negative effect when compared
to the revenue boost from the Euro football tournament in 2012. However, this
will be tempered across the year by the inclusion of the Lions Tour of
Australia, for which talkSPORT has exclusive rights, with a further spike in
revenue anticipated from the World Cup in 2014. First quarter 2013 revenue in
our Radio GB division is expected to be down by about 6%. talkSPORT
International development initiatives will see our multiple language live
commentary services, and ancillary programming, delivered to more overseas
markets in the form of both radio and digital distribution deals.
Advertising revenue budgets in Ireland continued to be squeezed in
the early months of 2013. This was felt most acutely in January and February
and was exacerbated by advertising being cancelled as a result of civil
disturbances in Belfast. The position is improving in March and in the first
quarter of 2013 our Irish radio advertising is expected to be down by 6%. Our
Television advertising revenue, helped by a more buoyant London market, is
expected to be down by 1% in that three month period. The changes which we
have implemented in our New Media division are already bearing fruit and in
the first quarter of 2013, revenue is expected to be up by 12%.
While the Irish economy is still fragile, nevertheless there is
some encouraging commentary around recent economic data. Whether or not this
translates into a confidence about a sustained economic recovery remains to be
seen. What we can be confident about is the quality and strength of our
broadcasting assets in Ireland and our ability, therefore, to leverage
significant growth in our revenue from an Irish economic recovery.
Board and People
In my Interim Statement, I highlighted my immediate priority to
restore the Board to full independence. Since that Statement, we have
appointed three new, high calibre, independent Non-Executive Directors who
bring both a wealth of experience, and complementary expertise, to the Board.
We now have a strong, independent Board which is well equipped to lead the
company through the next stage of its strategic development with the objective
of maximising long-term shareholder value.
Whilst we welcome our new Board members to the Company, we also say
a sad farewell to our longstanding director, Roy Bailie who has served on the
Board since 1996. It had been Roy's intention to retire from the Board last
year after completing the task of selecting the new Chairman. However, upon my
appointment, Roy graciously acceded to my request to remain on the Board until
May this year to facilitate the induction of the new members of the Board
through his wealth of knowledge and experience of the company. I am immensely
grateful to Roy for his sage advice and unfailing good humour and, on behalf
of all the shareholders, I would like to thank him for the immense
contribution he has made to the development of the UTV Group over the years.
Finally, on behalf of all shareholders, I would like to thank our
management and staff throughout the Group for their hard work, passion and
commitment to the UTV cause over the past year in what has been a particularly
challenging environment. We are very fortunate to have such a wonderful team
of people working with us and I look forward to their continuing significant
contributions to the future success of the Company.
Richard Huntingford
Chairman
19 March 2013
Group Income Statement
For the year ended 31 December 2012
Results Results
before before
Exceptional Exceptional Exceptional Exceptional
Items Items Total Items Items Total
Notes 2012 2012 2012 2011 2011 2011
£000 £000 £000 £000 £000 £000
Continuing operations
Revenue 2 120,105 - 120,105 121,551 - 121,551
Operating costs (96,383) - (96,383) (94,841) - (94,841)
------- ------- ------- ------- ------- -------
Operating profit from continuing
operations before tax and finance costs 23,722 - 23,722 26,710 - 26,710
Impairment of intangible assets - - - - (45,000) (45,000)
Share of results of associates accounted
for using the equity method 129 - 129 136 - 136
------- ------- ------- ------- ------- -------
Profit/(loss) from continuing operations
before tax and finance costs 23,851 - 23,851 26,846 (45,000) (18,154)
Finance revenue 98 - 98 165 - 165
Finance costs (3,119) - (3,119) (3,653) - (3,653)
Foreign exchange gain/(loss) 151 - 151 (15) - (15)
------- ------- ------- ------- ------- -------
Profit/(loss) from continuing operations
before tax 2 20,981 - 20,981 23,343 (45,000) (21,657)
Taxation 3 (4,407) (936) (5,343) (4,743) 1,142 (3,601)
------- ------- ------- ------- ------- -------
Profit/(loss) from continuing operations
after tax 16,574 (936)
15,638 18,600 (43,858) (25,258)
Discontinued operations
Loss from discontinued operations - - - (213) - (213)
------- ------- ------- ------- ------- -------
Profit/(loss) for the year 16,574 (936)
15,638 18,387 (43,858) (25,471)
------- ------- ------ ------- ------- ------
Attributable to:
Equity holders of the parent 16,217 (936) 15,281 17,972 (43,858) (25,886)
Non-controlling interest 357 -
357 415 - 415
------- ------- ------- ------- ------- -------
16,574 (936) 15,638 18,387 (43,858) (25,471)
------- ------- ------ ------- ------- ------
Earnings per share 2012 2011
Continuing operations
Basic 4 16.05p (26.94)p
Diluted 4 15.94p (26.94)p
Adjusted 4 17.03p 19.08p
Diluted adjusted 4 16.92p 18.96p
Continuing and discontinued operations
Basic 4 16.05p (27.16)p
Diluted 4 15.94p (27.16)p
Adjusted 4 17.03p 18.86p
Diluted adjusted 4 16.92p 18.74p
Group Statement of Comprehensive Income
For the year ended 31 December 2012
Note 2012 2011
£000 £000
Profit/(loss) for the year 15,638 (25,471)
------- -------
Other comprehensive income
Exchange difference on translation of foreign
operations (1,153) (2,328)
Actuarial loss on defined benefit pension schemes (4,568)
(3,281)
Cash flow hedges:
Loss arising during the year (188) (448)
Less transfers to the income statement 551 550
Tax relating to other comprehensive income 3 854 783
------- -------
Other comprehensive loss for the year, net of tax (4,504)
(4,724)
------- -------
Total comprehensive profit/(loss) for the year,
net of tax 11,134 (30,195)
------- -------
Attributable to:
Equity holders of the parent 10,777 (30,610)
Non-controlling interest 357 415
------- -------
11,134 (30,195)
------- -------
Group Balance Sheet
For the year ended 31 December 2012
Notes 2012 2011
£000 £000
ASSETS
Non-current assets
Property, plant and equipment 11,910 11,273
Intangible assets 176,589 173,776
Investments accounted for using the equity
method 104 126
Deferred tax asset 4,250 6,511
------- -------
192,853 191,686
------- -------
Current assets
Inventories 1,643 1,533
Trade and other receivables 25,163 25,857
Cash and short term deposits 7 10,958 7,205
------- -------
37,764 34,595
------- -------
TOTAL ASSETS 230,617 226,281
------- -------
EQUITY AND LIABILITIES
Equity attributable to equity holders of the
parent
Equity share capital 55,557 55,557
Capital redemption reserve 50 50
Treasury shares (1,523) (1,523)
Foreign currency reserve 6,018 7,171
Cash flow hedge reserve (251) (521)
Retained earnings 28,680 22,414
------- -------
88,531 83,148
Non-controlling interest 480 469
------- -------
TOTAL EQUITY 89,011 83,617
------- -------
Non-current liabilities
Financial liabilities 6 58,948 53,752
Derivative financial liabilities - 207
Pension liability 8 12,409 8,569
Provisions 800 766
Deferred tax liabilities 36,154 35,932
------- -------
108,311 99,226
------- -------
Current liabilities
Trade and other payables 26,033 31,948
Financial liabilities 6 4,292 8,167
Derivative financial liabilities 324 479
Tax payable 2,275 2,409
Provisions 371 435
------- -------
33,295 43,438
------- -------
TOTAL LIABILITIES 141,606 142,664
------- -------
TOTAL EQUITY AND LIABILITIES 230,617 226,281
------- -------
Group Cash Flow Statement
For the year ended 31 December 2012
Note 2012 2011
£000 £000
Operating activities
Profit/(loss) before tax (i) 20,981 (21,870)
Adjustments to reconcile profit/(loss)
before tax to
net cash flows from operating activities
Foreign exchange (gain)/loss (151) 15
Net finance costs 3,021 3,488
Share of results of associates (129) (136)
Amortisation and impairment of intangible
assets 71 45,000
Depreciation of property, plant and
equipment 1,758 1,597
Profit from sale of property, plant and
equipment (191) (31)
Share based payments 556 605
Difference between pension contributions
paid and amounts
recognised in the income statement (728) (1,512)
(Increase)/decrease in inventories (110) 208
Decrease in trade and other receivables 956 2,102
Decrease in trade and other payables (6,806) (415)
(Decrease)/increase in provisions (30) 37
------- -------
Cash generated from operations before
exceptional costs 19,198 29,088
Exceptional costs - (19)
Tax paid (1,237) (2,288)
------- -------
Net cash inflow from operating activities 17,961 26,781
------- -------
Investing activities
Interest received 85 165
Proceeds on disposal of property, plant and
equipment 272 31
Purchase of property, plant and equipment (2,436) (2,155)
Dividends received from associates 151 182
Outflow on acquisition of subsidiary
undertaking (1,670) -
Outflow on acquisition of radio licences (180) -
------- -------
Net cash flows from investing activities (3,778) (1,777)
------- -------
Financing activities
Borrowing costs (2,200) (3,032)
Refinancing costs (1,059) -
Swap cost (551) (550)
Dividends paid to equity shareholders (5,934) (4,279)
Dividends paid to non-controlling interests (300) (421)
Acquisition of treasury shares - (265)
Repayment of borrowings (65,948) (20,474)
Proceeds from borrowings 65,595 -
------- -------
Net cash flows used in financing activities (10,397) (29,021)
------- -------
Net increase/(decrease) in cash and cash
equivalents 3,786 (4,017)
Net foreign exchange differences (33) (28)
Cash and cash equivalents at 1 January 7,205 11,250
------- -------
Cash and cash equivalents at 31 December 7 10,958 7,205
------- -------
(i) The 2012 figures represent continuing operations. The 2011
comparative includes both continuing and discontinued
operations.
Group Statement of Changes in Equity
For the year ended 31 December 2012
Equity Capital Foreign Cashflow Share Non-
share redemption Treasury currency hedge Retained
holder controlling
capital reserve shares reserve reserve earnings equity interest Total
£000 £000 £000 £000 £000 £000 £000 £000 £000
At 1 January 2011 55,557 50
(1,258) 9,499 (581) 54,441 117,708 475 118,183
------ ------- ------- ------- ------- -------
------- ------- -------
Loss for the year - - - - - (25,886) (25,886) 415 (25,471)
Other
comprehensive
(loss)/income in
the year - - - (2,328) 60 (2,456) (4,724) _ (4,724)
------ ------ ------- ------- ------- ------- ------- ------- -------
Total net
comprehensive
(loss)/income in
the year - - - (2,328) 60 (28,342)
(30,610) 415 (30,195)
Share based
payment - - - - - 605 605 - 605
Acquisition of
treasury shares - - (265) - - - (265) - (265)
Equity dividends
paid - - - - - (4,290)
(4,290) (421) (4,711)
------ ------- ------- ------- ------- ------- ------- ------- -------
At 31 December
2011 55,557 50 (1,523) 7,171 (521) 22,414 83,148 469 83,617
------ ------- ------- ------- ------- ------- ------- ------- -------
Profit for the
year - - - - - 15,281
15,281 357 15,638
Other
comprehensive
(loss)/income in
the year - - - (1,153) 270 (3,621) (4,504) - (4,504)
------ ------- ------- ------- ------- ------- ------- ------- -------
Total net
comprehensive
(loss)/income in
the year - - - (1,153) 270 11,660 10,777 357 11,134
Share based
payment - - - - - 556 556 - 556
Equity dividends
paid - - - - - (5,950)
(5,950) (346) (6,296)
------ ------- ------- ------- ------- ------- ------- ------- -------
At 31 December
2012 55,557 50 (1,523) 6,018 (251) 28,680 88,531 480 89,011
------ ------- ------- ------- ------- ------- ------- ------- -------
Notes to the accounts
For the year ended 31 December
2012
1. Basis of preparation
The Group's financial statements consolidate those of UTV Media
plc, and its subsidiaries (together referred to as the "Group") and
the Group's interest in associates and jointly controlled
entities.
The Group financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRSs) as adopted by the
European Union as they apply to the financial statements of the Group for the
year ended 31 December 2012 and applied in accordance with the Companies Act
2006. The accounts are principally prepared on the historical cost basis
except where other bases are applied under the Group's accounting policies.
The financial information set out in the preliminary announcement
does not constitute statutory accounts within the meaning of Section 435 of
the Companies Act 2006 in respect of the accounts for the year ended 31
December 2012. The statutory accounts for the year ended 31 December 2011,
upon which the Company's auditors have given a report which was unqualified
and did not contain a statement under section 498(2) or (3) of the Companies
Act 2006, have been delivered to the Registrar of Companies. The statutory
accounts for the year ended 31 December 2012 have yet to be signed. They will
be finalised on the basis of the financial information presented by the
directors in this preliminary announcement and will be delivered to the
Registrar of Companies in due course.
2. Revenue and segmental analysis
The Group operates in four principal areas of activity - radio in
GB, radio in Ireland, commercial television and new media. These four
principal areas of activity also form the basis on which the Group is managed
and reports are provided to the Chief Executive and the Board. Discontinued
operations relate to an interactive television business which ceased to trade
in February 2011.
Revenue represents the amounts derived from the provision of goods
and services which fall within the Group's ordinary activities, stated net of
value added tax. Revenue from radio and television activities is generated
from advertising and sponsorship. Revenue from new media is generated from the
provision of internet and social media services. The amount of revenue derived
from the sale of goods or other activities is immaterial and therefore has not
been separately disclosed. Transfer prices between business segments are set
on an arm's length basis in a manner similar to transactions with third
parties.
The following tables present revenue and segment result
information regarding the Group's business segments for the years
ended 31 December 2012 and 2011.
Revenue
Year ended 31 December 2012
Radio
Radio GB Ireland Television New Media Total
£000 £000 £000 £000 £000
Sales to third parties 54,407 20,943 32,484 12,271 120,105
Intersegmental sales 787 1,294 2,628 298 5,007
------- ------- ------- ------- -------
55,194 22,237 35,112 12,569 125,112
------- ------- ------- ------- -------
Year ended 31 December 2011
Radio
Radio GB Ireland Television New Media Total
£000 £000 £000 £000 £000
Sales to third parties 52,065 22,514 35,569 11,403 121,551
Intersegmental sales 787 1,250 2,625 - 4,662
------- ------- ------- ------- -------
52,852 23,764 38,194 11,403 126,213
------- ------- ------- ------- -------
Results
Year ended 31 December 2012
Radio
Radio GB Ireland Television New Media Total
£000 £000 £000 £000 £000
Segment operating
profit before
exceptional costs 12,898 5,987 3,901 936 23,722
------- ------- ------- -------
Associate income 129
-------
Profit before
exceptional costs, tax
and finance costs 23,851
Exceptional costs -
-------
23,851
Net finance cost (3,021)
Foreign exchange gain 151
-------
Profit before taxation 20,981
-------
Year ended 31 December 2011
Radio
Radio GB Ireland Television New Media Total
£000 £000 £000 £000 £000
Segment operating
profit before
exceptional costs 12,291 6,438 6,453 1,528 26,710
------- ------- ------- -------
Associate income 136
-------
Profit before
exceptional costs, tax
and finance costs 26,846
Exceptional costs (45,000)
-------
(18,154)
Net finance cost (3,488)
Foreign exchange loss (15)
-------
Loss before taxation (21,657)
-------
3. Taxation
(a) Tax on profit on ordinary activities
2012 2011
£000 £000
Current income tax:
UK corporation tax on profits for the year (1,174) (949)
Adjustments in respect of previous years 55 (92)
------- -------
(1,119) (1,041)
------- -------
Foreign tax:
ROI corporation tax on profits for the year (527) (594)
Adjustments in respect of previous years - 18
------- -------
(527) (576)
------- -------
Total current tax (1,646) (1,617)
Deferred tax: Origination and reversal of timing differences
(2,937) (3,761) Adjustments in respect of previous years
176 635
------- -------
Tax charge in the income statement on operating
activities (4,407) (4,743)
Exceptional deferred tax (charge)/credit (936) 1,142
------- -------
Total tax charge (5,343) (3,601)
------- -------
The tax charge in the Income Statement is disclosed as: Tax
charge on continuing operations
(5,343) (3,601)
Tax credit on discontinued operations - -
------- -------
Tax charge in the income statement (5,343) (3,601)
------- -------
Tax relating to items in the Statement of
Comprehensive Income
Deferred tax:
Actuarial loss on pension schemes 1,051 820
Revaluation of cash flow hedges (81) (29)
Valuation of long term incentive plan 5 (8)
Exceptional deferred tax charge (121) -
------- -------
Tax credit in the statement of comprehensive income 854 783
------- -------
(b) Exceptional (charge)/credit
2012 2011
£000 £000
Exceptional tax credit 1,499 1,142
Exceptional tax charge (2,435) -
------- -------
(936) 1,142
------- -------
During the year, the corporation tax rate in the UK was revised
from 25% to 23% (effective from April 2013). Accordingly all the deferred tax
assets and liabilities in respect of the reporting segments subject to UK
corporation tax were restated to recognise the future gains or charges thereon
at this rate. This resulted in a net credit of £1,499,000 in the year.
In 2011, the corporation tax rate in the UK was revised from 27% to
25% (effective from April 2012). Accordingly all the deferred tax assets and
liabilities in respect of the reporting segments subject to UK corporation tax
were restated to recognise the future gains or charges thereon at this rate
resulting in a net credit of £1,142,000.
In the Finance Bill published on 8
February 2012 and passed into law on 2 April 2012, the rate of corporate capital gains
in the Republic of Ireland was
increased from 25% to 30%. The exceptional tax charge of £2,435,000
(2011: £Nil) arises from the restatement of the relevant deferred
tax assets and liabilities to reflect this.
4. Earnings per share
Basic earnings per share are calculated based on the profit for
the financial year attributable to equity holders of the parent and
on the weighted average number of shares in issue during the
period.
Adjusted earnings per share are calculated based on the profit
for the financial year attributable to equity holders of the parent
adjusted for the exceptional items. This calculation uses the
weighted average number of shares in issue during the period.
Diluted adjusted earnings per share are calculated based on profit
for the financial year attributable to equity holders of the parent adjusted
for the exceptional items. The weighted average number of shares is adjusted
to reflect the dilutive potential of the Long Term Incentive Plan.
The following reflects the income and share data used in the
basic, adjusted, diluted and diluted adjusted earnings per share
calculations:
Net profit attributable to equity holders
2012 2011
Continuing Discontinued Continuing Discontinued
Operations Operations Total Operations Operations Total
£000 £000 £000 £000 £000 £000
Net profit/(loss)
attributable to equity holders 15,281 - 15,281 (25,673) (213) (25,886)
Exceptional items 936 - 936 43,858 - 43,858
------ ------ ------ ------ ------ ------
Total adjusted and diluted profit
attributable to equity holders 16,217 - 16,217
18,185 (213) 17,972
------- ------- ------- ------- ------- -------
Weighted average number of shares
2012 2011
thousands thousands
Shares in issue 95,903 95,903
Weighted average number of treasury shares (700) (600)
------- -------
Weighted average number of shares for basic and
adjusted earnings per share (excluding treasury
shares) 95,203 95,303
Effect of dilution of the Long Term Incentive Plan 649 609
------- -------
95,852 95,912
------- -------
Earnings per share
2012 2011
From continuing operations
Basic 16.05p (26.94)p
------- -------
Diluted 15.94p (26.94)p
------- -------
Adjusted 17.03p 19.08p
------- -------
Diluted adjusted 16.92p 18.96p
------- -------
From continuing and discontinued operations
Basic 16.05p (27.16)p
------- -------
Diluted 15.94p (27.16)p
------- -------
Adjusted 17.03p 18.86p
------- -------
Diluted adjusted 16.92p 18.74p
------- -------
From discontinued operations
Basic and diluted - (0.22)p
------- -------
Adjusted and diluted adjusted - (0.22)p
------- -------
5. Dividends
2012 2011
£000 £000
Equity dividends on ordinary shares
Declared and paid during the year
Final for 2011: 4.50p (2010: 3.00p) 4,284 2,862
Interim for 2012: 1.75p (2011: 1.50p) 1,666 1,428
------- -------
Dividends paid 5,950 4,290
------- -------
Proposed for approval at Annual General Meeting (not recognised
as a liability at 31 December) Final dividend for 2012: 5.25p
(2011: 4.50p)
4,998 4,284
------- -------
6. Financial liabilities
2012 2011
£000 £000
Current
Current instalments due on bank loans 3,852 8,167
Current instalment due on contingent consideration 440 -
------ ------
4,292 8,167
------ ------
Non-current
Non-current instalments due on bank loans 56,500 53,752
Non-current instalment due on contingent consideration 2,448
-
------ ------
58,948 53,752
------ ------
63,240 61,919
------ ------
The bank loans at 31 December 2012
are stated net of £939,000 (2011: £249,000) of deferred financing
costs.
The contingent consideration is in respect of the acquisition of
Simply Zesty Limited. The balance at 31
December 2012 reflects the amount of future consideration
that is expected to be payable.
7. Net Debt
2012 2011
£000 £000
Bank loans (60,352) (61,919)
Cash and short term deposits 10,958 7,205
------ ------
(49,394) (54,714)
------ ------
8. Pension schemes
The IAS 19 deficit at 31 December 2012 is £12,409,000 compared with
a deficit of £8,569,000 at 31 December 2011. The increase in the deficit was
primarily driven by a decline in the discount rate assumption arising from the
reduction in corporate bond yields plus an increase in life expectancy. Both
of these factors led to an increase in the scheme's liabilities which were
greater than the gain in the scheme's assets.
The Group funded a discretionary amount of £1,181,000 towards
the actuarial deficit in 2012 (2011: £1,181,000) by means of a cash
transfer and has agreed to make further payments of £1,209,000 each
year to 2015 in addition to normal contributions.
9. Related party transactions
The nature of related parties disclosed in the consolidated
financial statements for the Group as at and for the year ended
31 December 2011 has not changed.
There have been no significant related party transactions in the
year ended 31 December 2012.
This summary has been approved by our Directors for release to the
Press today 19 March 2013 and the full printed Annual Report and Accounts will
be posted to Shareholders and Stock Exchanges on 17 April 2013. Copies will be
available to the public at the Company's registered office Ormeau Road,
Belfast BT7 1EB from that date.