TIDMUTV
UTV Media plc
("UTV" or "the Company" or "the Group")
Belfast, London & Dublin - 18 March 2014: UTV Media plc today announces
preliminary results for the year ended 31 December 2013
Financial highlights on continuing operations*
* Group revenue of GBP107.8m (2012: GBP112.3m) - down 11% in the first half of
the year and up 3% in the second half
* Pre-tax profits of GBP16.9m (2012: GBP20.1m)
* Group operating profit of GBP20.1m (2012: GBP23.4m) - down 36% in the first
half of the year and up 10% in the second half
* Net debt GBP49.1m (2012: GBP49.4m)
* Diluted adjusted earnings per share from continuing operations of 14.27p
(2012: 16.63p)
* Proposed final dividend of 5.25p maintaining full year dividend of 7.00p
(2012: 7.00p)
* As appropriate, references to profit include associate income but exclude
discontinued operations
Operational highlights
* Difficult market conditions in the first half of the year with improving
macro-economic environment leading to growth in the second half
* Strong audience shares across Radio and Television
* Cost savings realised from Group restructuring coupled with Simply Zesty
reorganisation
* Radio and television broadcasting focus - divesting of New Media businesses
(exceptional charge of GBP1.2m)
* Plans to launch a new television channel in Ireland following agreement
with ITV Global Entertainment for the exclusive rights, from January 2015,
for ITV Studios programmes in the Republic of Ireland
* talkSPORT successfully renewed exclusive national audio broadcasting rights
for Premier League packages to 2016
Prospects highlights
* Continued growth in the first three months of 2014
* Radio Ireland revenue (local currency) up 9%, Radio GB revenue up 7% and
Television revenue up 5%
* April is expected to show strong growth as anticipated
* Further growth is expected in Radio GB in the second quarter in the run up
to the World Cup
* Ongoing expansion in talkSPORT International
* Irish television licence awarded - station build commencing
John McCann, Group Chief Executive, UTV Media plc, said:
"The contrasting performances of the first and second halves of the year are
evident in these results, with Group operating profit down 36% in the first
half of the year and up 10% in the second half. The improvement in market
conditions continues into the current year, with all of our divisions recording
good growth in the first quarter of 2014."
Key dates
* 15 May 2014 - Annual General Meeting & Interim Management Statement
* 30 May 2014 - Record date for payment of dividends
* 15 July 2014 - Payment of dividends
* 26 August 2014 - Interim Results Announcement
* 13 November 2014 - Interim Management Statement
For further information contact:
Maitland
James Devas +44 (0) 20 7379 5151
UTV Media plc
John McCann, Group Chief Executive +44 (0) 28 9032 8122
Norman McKeown, Group Finance +44 (0) 28 9032 8122
Director
Orla McKibbin, Head of +44 (0) 28 9026 2188
Communications
Investor Enquiries www.utvmedia.com/investors
UTV Media plc
Chairman's Statement
Overview
The tough trading conditions of the first half gradually gave way to more
benign conditions in the second half as advertising markets started to respond
to the improving macroeconomic environment. This was particularly the case in
Ireland where, after five years of decline, television advertising recorded
growth of 11% in the second half while radio advertising also moved into
growth. Weak demand in the GB radio advertising market was compounded by the
absence of a major sporting event in talkSPORT's calendar, but here again
market conditions improved as the year progressed. Having been down by 11% in
the first half of the year, total Group turnover (excluding discontinued
operations) was up by 3% in the second half, giving a 4% reduction for the full
year at GBP107.8m (2012: GBP112.3m). Group operating profit* matched this profile,
being down 36% in the first half and up 10% in the second half recording a 14%
reduction for the year as a whole at GBP20.1m (2012:GBP23.4m).
* As appropriate, references to operating profit include associate income but
exclude discontinued operations
Results and dividends for the year
The Group profit after taxation before exceptional items for the year, amounted
to GBP13.7m (2012 restated: GBP16.2m) as detailed in the Group Income Statement.
Exceptional items arose during the year as a result of a GBP1.2m write down of
assets on operations classified as discontinued plus an exceptional tax credit
of GBP1.2m due to the changes in the rates of UK corporation tax and ROI capital
gains tax (2012: exceptional tax charge of GBP1.0m). This created a Group profit
for the year of GBP13.7m (2012: GBP15.2m).
There was a small reduction in net debt to GBP49.1m at the year end (2012: GBP
49.4m).
Dividends amounting to GBP6.7m were paid during the year representing a final
ordinary dividend for 2012 of 5.25p per share and an interim ordinary dividend
for 2013 of 1.75p per share as shown in note 6.
A final dividend of GBP5.0m representing 5.25p per share is proposed for approval
at the Annual General Meeting. If approved, warrants in respect of it will be
despatched on 15 July 2014 to shareholders on the register at the close of
business on 30 May 2014.
Developments towards a broadcasting focused strategy
In 2013 management made good progress in transitioning the business to be
focused predominately on broadcasting, in line with the Board strategy.
The most significant of these was the agreement we entered into with ITV Global
Entertainment to acquire the rights in the Republic of Ireland to ITV Studios
programming from 1 January 2015. In conjunction with this, we applied for and
were recently granted, a programme content licence from the Broadcasting
Authority of Ireland to operate a new television channel in the Republic of
Ireland for a ten year term beginning 1 January 2015. With ITV programming at
the heart of the schedule, our objective is to provide a service similar to
that which we offer in Northern Ireland but customised to meet the needs and
preferences of viewers in the Republic of Ireland. Much of the programming
which we will be offering will already be familiar to Irish viewers and we are
confident that we will be able to establish a strong viewership base in our
first full year of operation.
In a further positive development for our television division, Ofcom has now
confirmed that our licence to operate our television service in Northern
Ireland has been extended by a ten year period to expire on 31 December 2024.
Ofcom has set our licence fee during this term at GBP10k per annum. Our new
affiliate arrangement with ITV will operate for the same period and will
provide, inter alia, stability around our network programme costs, subject to
capped inflationary increases.
Refining our strategy to focus more on broadcasting, we decided to exit from
non-core activities. Our three portals, Propertypal, UTV Drive and Recruit NI,
have been sold or are held for sale and we are in the process of divesting of
UTV Connect. The remaining parts, Tibus and Simply Zesty, of what had been our
New Media division provide support for our broadcast businesses and have been
subsumed into our Television division. We also restructured Simply Zesty under
new management to focus its activities on an all-Ireland basis and at the same
time implemented an efficiency savings plan throughout the Group.
Review of activities
Our activities now comprise three broadcast divisions, Television, Radio
Ireland and GB Radio. All three divisions continue to perform strongly in
delivering sizeable audiences in their respective markets. Our television
station continues to be the most watched channel in Northern Ireland, a
position it has maintained for many years. Our Irish radio stations also enjoy
market leading positions in each of the urban areas in which they operate,
including Ireland's three largest cities. In GB Radio the audience for
talkSPORT has steadily grown over the last eight years and this national radio
station now regularly reaches more than three million listeners every week. The
Group has demonstrated its ability to consistently deliver strong audiences and
this remains the key to unlocking advertising and sponsorship revenues.
Prospects
Whilst the advertising market in the Republic of Ireland has been particularly
challenging over the last few years, there is optimism that a corner is slowly
being turned. Growth in our Irish television advertising revenue in the second
half of 2013 has continued into the first quarter of 2014, which is expected to
be up by 11%, helping to increase our total Television revenues for the quarter
by 5% and 10% in April.
Growth is also being recorded in our Irish radio advertising revenue, which is
forecast to be up by 9% in local currency terms in the first three months of
this year and to show further single digit growth in April. It is too early to
know if this growth in Irish revenue can be sustained for the rest of the year,
and indeed into 2015, but the trend so far is clearly encouraging, particularly
in light of our expanding television interests in Ireland.
After an unexpectedly difficult year for the industry in 2013, the radio market
in GB is also improving. Our GB Radio revenues are expected to be up by 7% in
the first quarter of 2014 and by 17% in April, with talkSPORT's revenue
forecast to grow by 12% and at least 25% in these respective periods. talkSPORT
has non-exclusive radio rights to the FIFA World Cup in the early summer, which
will provide a welcome boost to radio revenues in the first half of this year.
Conclusion
In conclusion, I am happy to report a year of significant progress. We now have
a clear strategic focus to the Group with exciting growth platforms for the
future. In addition, as we see a return to good levels of top-line growth in
our core market places, we can look forward to seeing the benefits of the
operational gearing inherent in our business model reflected in our future
results.
Finally, I would like to pay tribute to our management and staff throughout the
Group who have worked so hard during the year, in particularly challenging
circumstances, to position the Group for future growth.
Richard Huntingford
Chairman
18 March 2014
Group Income Statement
For the year ended 31 December 2013
Results Results
before before
Exceptional Exceptional Exceptional Exceptional
Items Items Total Items Items Total
Notes 2013 2013 2013 2012 2012 2012
(restated) (restated)
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Continuing operations
Revenue 2 107,771 - 107,771 112,258 - 112,258
Operating costs (87,849) - (87,849) (88,998) - (88,998)
------- ------- ------- ------- ------- -------
Operating profit from 19,922 - 19,922 23,260 - 23,260
continuing operations
before tax and finance
costs
Share of results of 130 - 130 129 - 129
associates accounted for
using the equity method
------- ------- ------- ------- ------- -------
Profit from continuing 20,052 - 20,052 23,389 - 23,389
operations before tax and
finance costs
Finance revenue 49 - 49 98 - 98
Finance costs (3,012) - (3,012) (3,517) - (3,517)
Foreign exchange (loss)/ (188) - (188) 146 - 146
gain
------- ------- ------- ------- ------- -------
Profit from continuing 2 16,901 - 16,901 20,116 - 20,116
operations before tax
Taxation 3 (3,379) 1,215 (2,164) (4,215) (936) (5,151)
------- ------- ------- ------- ------- -------
Profit/(loss) from 13,522 1,215 14,737 15,901 (936) 14,965
continuing operations
after tax
Discontinued operations
Profit/(loss) from 4 161 (1,157) (996) 269 - 269
discontinued operations
------- ------- ------- ------- ------- -------
Profit/(loss) for the 13,683 58 13,741 16,170 (936) 15,234
year
------- ------- ------ ------- ------- ------
Attributable to:
Equity holders of the 13,415 58 13,473 15,813 (936) 14,877
parent
Non-controlling interest 268 - 268 357 - 357
------- ------- ------- ------- ------- -------
13,683 58 13,741 16,170 (936) 15,234
------- ------- ------ ------- ------- ------
Earnings per share 2013 2012
(restated)
Continuing operations
Basic 5 15.14p 15.34p
Diluted 5 14.99p 15.24p
Adjusted 5 14.41p 16.75p
Diluted adjusted 5 14.27p 16.63p
Continuing and
discontinued operations
Basic 5 14.10p 15.62p
Diluted 5 13.96p 15.52p
Adjusted 5 14.58p 17.03p
Diluted adjusted 5 14.44p 16.91p
Group Statement of Comprehensive Income
For the year ended 31 December 2013
2013 2012
(restated)
GBP000 GBP000
Profit for the year 13,741 15,234
------- -------
Other comprehensive income
Items that will not be reclassified subsequently
to profit or loss:
Actuarial gain/(loss) on defined benefit pension 5,111 (4,043)
schemes
Income tax relating to items that will not be (1,325) 809
reclassified subsequently
------- -------
3,786 (3,234)
------- -------
Items that may be reclassified subsequently to
profit or loss:
Cash flow hedges:
Loss arising during the year (4) (188)
Less transfers to the income statement 321 551
Exchange gain/(loss) on translation of foreign 932 (1,153)
operations
Income tax relating to items that may be 78 (76)
reclassified
------- -------
1,327 (866)
------- -------
Other comprehensive profit/(loss) for the year, 5,113 (4,100)
net of tax
------- -------
Total comprehensive profit for the year, net of 18,854 11,134
tax
------- -------
Attributable to:
Equity holders of the parent 18,586 10,777
Non-controlling interest 268 357
------- -------
18,854 11,134
------- -------
Group Balance Sheet
For the year ended 31 December 2013
Notes 2013 2012
GBP000 GBP000
ASSETS
Non-current assets
Property, plant and equipment 11,887 11,910
Intangible assets 177,576 176,589
Investments accounted for using the equity 114 104
method
Deferred tax asset 1,952 4,250
------- -------
191,529 192,853
------- -------
Current assets
Inventories 1,758 1,643
Trade and other receivables 23,565 25,163
Cash and short term deposits 8 10,691 10,958
------- -------
36,014 37,764
------- -------
TOTAL ASSETS 227,543 230,617
------- -------
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 (123) (1,523)
Foreign currency reserve 6,950 6,018
Cash flow hedge reserve - (251)
Retained earnings 38,531 28,680
------- -------
100,965 88,531
Non-controlling interest 106 480
------- -------
TOTAL EQUITY 101,071 89,011
------- -------
Non-current liabilities
Financial liabilities 7 55,866 58,948
Pension liability 9 4,598 12,409
Provisions 411 800
Deferred tax liabilities 35,066 36,154
------- -------
95,941 108,311
------- -------
Current liabilities
Trade and other payables 24,165 26,033
Financial liabilities 7 3,939 4,292
Derivative financial liabilities - 324
Tax payable 1,727 2,275
Provisions 700 371
------- -------
30,531 33,295
------- -------
TOTAL LIABILITIES 126,472 141,606
------- -------
TOTAL EQUITY AND LIABILITIES 227,543 230,617
------- -------
Group Cash Flow Statement
For the year ended 31 December 2013
Notes 2013 2012
(restated)
GBP000 GBP000
Operating activities
Profit before tax (i) 17,062 20,456
Adjustments to reconcile profit before tax to
net cash flows from operating activities
Foreign exchange loss/(gain) 189 (151)
Net finance costs 2,963 3,419
Share of results of associates (130) (129)
Amortisation and impairment of intangible 188 71
assets
Non cash decrease in contingent consideration (2,859) -
Depreciation of property, plant and equipment 1,929 1,758
Profit from sale of property, plant and (4) (191)
equipment
Share based payments 419 556
Difference between pension contributions paid (3,224) (601)
and amounts
recognised in the income statement
Increase in inventories (115) (110)
Decrease in trade and other receivables 1,357 956
Decrease in trade and other payables (2,999) (6,806)
Decrease in provisions (60) (30)
------- -------
Cash generated from operations before 14,716 19,198
exceptional costs
Exceptional costs (227) -
Tax paid (2,460) (1,237)
------- -------
Net cash inflow from operating activities 12,029 17,961
------- -------
Investing activities
Interest received 58 85
Proceeds on disposal of property, plant and 16 272
equipment
Purchase of property, plant and equipment (1,777) (2,436)
Dividends received from associates 120 151
Outflow on acquisition of subsidiary (200) (1,670)
undertaking
Outflow on acquisition of radio licences - (180)
------- -------
Net cash flows from investing activities (1,783) (3,778)
------- -------
Financing activities
Borrowing costs (1,891) (2,200)
Refinancing costs - (1,059)
Swap cost (321) (551)
Dividends paid to equity shareholders (6,677) (5,934)
Dividends paid to non-controlling interests (460) (300)
Repayment of borrowings (4,216) (65,948)
Proceeds from borrowings 3,000 65,595
------- -------
Net cash flows used in financing activities (10,565) (10,397)
------- -------
Net (decrease)/increase in cash and cash (319) 3,786
equivalents
Net foreign exchange differences 52 (33)
Cash and cash equivalents at 1 January 10,958 7,205
------- -------
Cash and cash equivalents at 31 December 8 10,691 10,958
------- -------
i. Includes both continuing and discontinued operations.
Group Statement of Changes in Equity
For the year ended 31 December 2013
Equity Capital Foreign Cashflow Share Non-
share redemption Treasury currency hedge Retained holder controlling
capital reserve shares reserve reserve earnings equity interest Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 January 55,557 50 (1,523) 7,171 (521) 22,414 83,148 469 83,617
2012
------ ------- ------- ------- ------- ------- ------- ------- -------
Profit for the - - - - - 14,877 14,877 357 15,234
year
Other - - - (1,153) 270 (3,217) (4,100) - (4,100)
comprehensive
(loss)/income
in the year
------ ------- ------- ------- ------- ------- ------- ------- -------
Total net - - - (1,153) 270 11,660 10,777 357 11,134
comprehensive
(loss)/income
in the year
Share based - - - - - 556 556 - 556
payment
Equity - - - - - (5,950) (5,950) (346) (6,296)
dividends paid
------ ------- ------- ------- ------- ------- ------- ------- -------
At 31 December 55,557 50 (1,523) 6,018 (251) 28,680 88,531 480 89,011
2012
------ ------- ------- ------- ------- ------- ------- ------- -------
Profit for the - - - - - 13,473 13,473 268 13,741
year
Other - - - 932 251 3,930 5,113 - 5,113
comprehensive
(loss)/income
in the year
------ ------- ------- ------- ------- ------- ------- ------- -------
Total net - - - 932 251 17,403 18,586 268 18,854
comprehensive
(loss)/income
in the year
Treasury shares - - 1,400 - - (1,521) (121) - (121)
issued
Share based - - - - - 419 419 - 419
payment
Acquisition of - - - - - 228 228 (228) -
non-controlling
interests
Equity - - - - - (6,678) (6,678) (414) (7,092)
dividends paid
------ ------- ------- ------- ------- ------- ------- ------- -------
At 31 December 55,557 50 (123) 6,950 - 38,531 100,965 106 101,071
2013
------ ------- ------- ------- ------- ------- ------- ------- -------
Notes to the accounts
For the year ended 31 December 2013
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 2013 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 Group has adopted the following new standards that are relevant for the
preparation of the financial statements for the year ended 31 December 2013:
* The Group Income Statement, the Group Statement of Comprehensive Income,
the Group Statement of Changes in Equity and affected notes for the year
ended 31 December 2012 have been restated to reflect changes in the
calculation of pension costs in accordance with IAS19 "Employee Benefits
(Revised)". This introduced the concept of recognising net interest on the
net defined benefit obligation in place of the interest on the defined
benefit obligation and the expected return on plan assets recognised under
the original standard. In conjunction with this change the directors have
also reclassified from operating costs to other finance costs the net
finance cost arising on defined benefit obligations. The net effect of
these changes for the year ended 31 December 2012 has been to increase
operating costs and reduce operating profit by GBP127,000, increase other
finance costs by GBP398,000 and recognise a tax credit on these of GBP121,000.
The restatements were reflected in the Group Statement of Comprehensive
Income. There was no impact on the disclosed defined benefit obligation at
either period end.
* The amendments to IAS 1 introduce a grouping of items presented in other
comprehensive income (OCI). Items that could be reclassified (or recycled)
to profit or loss at a future point in time now have to be presented
separately from items that will never be reclassified. The amendment
affected presentation only and had no impact on the Group's financial
position or performance.
* IFRS 13 establishes a single source of guidance under IFRS for all fair
value measurements. IFRS 13 does not change when an entity is required to
use fair value, but rather provides guidance on how to measure fair value
under IFRS when fair value is required or permitted. The application of
IFRS 13 has not materially impacted the fair value measurements carried out
by the Group.
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
2013. The statutory accounts for the year ended 31 December 2012, 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 2013 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
During 2013 the Group operated in four principal areas of activity - radio in
GB, radio in Ireland, commercial television and new media. These four principal
areas of activity also formed the basis on which the Group was managed and
reports were provided to the Chief Executive and the Board during the year.
Good progress has been made in transitioning the business to be focused
predominately on broadcasting, in line with the Board strategy. In 2013 UTV
Connect and the portals, UTV Drive, Recruit NI and PropertyPal, were identified
as being non-core to the future strategy of the Group and significant steps
have been taken to exit from these activities. Consequently, these businesses,
which operated within the New Media business segment, have been classified as
discontinued operations in the 2013 accounts.
Tibus and Simply Zesty, which also operated within the New Media business
segment, will be incorporated within the Television operating segment going
forward. As a consequence from 2014 the Group will be managed and reports
provided to the Chief Executive and the Board on the basis of three operating
segments, being Radio GB, Radio Ireland and Television.
The tables below present revenue and segment result information regarding the
Group's operating segments for the years ended 31 December 2013 and 2012 on the
basis of how the Group was managed during 2013.
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 is principally generated from advertising and sponsorship. 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.
Central costs, which had previously been included within the Television
segment, are now reported separately to the Chief Executive and the Board and
are therefore now analysed separately below. The Television segment operating
profit for the year ended 31 December 2012 has been restated for this and for
the impact of IAS 19 "Employee Benefits (Revised)" as outlined in note 1.
Revenue
Year ended 31 December 2013
Radio Radio New
GB Ireland Television Media Total
GBP000 GBP000 GBP000 GBP000 GBP000
Sales to third parties 50,471 20,767 31,892 4,641 107,771
Intersegmental sales 749 1,219 2,186 647 4,801
------- ------- ------- ------- -------
51,220 21,986 34,078 5,288 112,572
------- ------- ------- ------- -------
Year ended 31 December 2012
Radio Radio New
GB Ireland Television Media Total
GBP000 GBP000 GBP000 GBP000 GBP000
Sales to third parties 54,407 20,943 32,484 4,424 112,258
Intersegmental sales 787 1,294 2,628 295 5,004
------- ------- ------- ------- -------
55,194 22,237 35,112 4,719 117,262
------- ------- ------- ------- -------
Results
Year ended 31 December 2013
Radio Radio New
GB Ireland Television Media Total
GBP000 GBP000 GBP000 GBP000 GBP000
Segment operating profit 7,900 5,139 7,356 2,292 22,687
------- ------- ------- -------
Central costs (2,765)
Associate income 130
-------
Profit before tax and 20,052
finance costs
Net finance cost (2,963)
Foreign exchange loss (188)
-------
Profit before taxation 16,901
-------
Year ended 31 December 2012
Radio Radio New
GB Ireland Television Media Total
(restated) (restated)
GBP000 GBP000 GBP000 GBP000 GBP000
Segment operating profit 12,898 5,987 7,470 601 26,956
------- ------- ------- -------
Central costs (3,696)
Associate income 129
-------
Profit before tax and 23,389
finance costs
Net finance cost (3,419)
Foreign exchange gain 146
-------
Profit before taxation 20,116
-------
To facilitate the Group's re-focused strategy on broadcasting, a restructuring
was undertaken during the year. While there were substantial costs associated
with this restructuring, it also involved the buyout of the contingent
consideration from certain stakeholders within Simply Zesty which resulted in a
credit on the release of the remaining fair value of this financial liability.
While the overall net impact on the Group's results for the year was not
material and costs associated with the restructuring are spread across all
operating segments, the credit arising on the buyout of the contingent
consideration is totally reflected within the results of the New Media business
segment. This, coupled with the credit arising from the acquisition of the
contingent consideration rights from the previous corporate shareholder in
January 2013, has impacted on the increase in operating profit recorded within
this operating segment in the year.
3. Taxation
(a) Tax on profit on ordinary activities
2013 2012
GBP000 GBP000
Current income tax:
UK corporation tax on profits for the year (2,453) (1,053)
Adjustments in respect of previous years 248 55
------- -------
(2,205) (998)
------- -------
Foreign tax:
ROI corporation tax on profits for the year (346) (527)
Adjustments in respect of previous years 16 -
------- -------
(330) (527)
------- -------
Total current tax (2,535) (1,525)
Deferred tax:
Origination and reversal of timing differences (684) (2,937)
Adjustments in respect of previous years (160) 176
------- -------
Tax charge in the income statement on operating (3,379) (4,286)
activities
Exceptional deferred tax credit/(charge) 1,215 (936)
------- -------
Total tax charge (2,164) (5,222)
------- -------
The tax charge in the Income Statement is disclosed as:
Tax charge on continuing operations (2,164) (5,151)
Tax charge on discontinued operations - (71)
------- -------
Tax charge in the income statement (2,164) (5,222)
------- -------
Tax relating to items in the Statement of Comprehensive
Income
Deferred tax:
Actuarial (gain)/loss on pension schemes (1,022) 930
Revaluation of cash flow hedges (61) (81)
Valuation of long term incentive plan 139 5
Exceptional deferred tax charge (303) (121)
------- -------
Tax (charge)/credit in the statement of comprehensive (1,247) 733
income
------- -------
(b) Exceptional (charge)/credit
2013 2012
GBP000 GBP000
Exceptional tax credit 2,640 1,499
Exceptional tax charge (1,425) (2,435)
------- -------
1,215 (936)
------- -------
During the year, the corporation tax rate in the UK was revised from 23% to 20%
(effective from April 2015). 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 GBP2,640,000 in the year.
In 2012, 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
resulting in a net credit of GBP1,499,000 in 2012.
In the Finance Bill published on 13 February 2013 and passed into law on 27
March 2013, the rate of corporate capital gains in the Republic of Ireland was
increased from 30% to 33%. The exceptional tax charge of GBP1,425,000 in the year
arises from the restatement of the relevant deferred tax assets and liabilities
to reflect this.
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 GBP2,435,000 in 2012
arises from the restatement of the relevant deferred tax assets and liabilities
to reflect this.
4. Discontinued operations
As disclosed in note 2, UTV Connect and the portals, UTV Drive, Recruit NI and
PropertyPal, have been identified as being non-core to the future strategy of
the Group and significant steps have been taken to exit from these activities.
Consequently, these businesses, which operated within the New Media business
segment, have been classified as discontinued operations in the 2013 accounts.
The resultant gains or losses on these disposals are expected to be recognised
within discontinued operations in the Income Statement in 2014.
The results of these companies for 2012 and 2013 are presented below:
2013 2012
GBP000 GBP000
Revenue 7,014 7,852
Operating cost (6,852) (7,517)
------- -------
Operating profit 162 335
Foreign exchange (loss)/gain (1) 5
------- -------
Profit before tax from discontinued operations 161 340
Current tax charge - (71)
------- -------
Profit for the year from discontinued operations 161 269
------- -------
Exceptional Costs- discontinued operations
2013 2012
GBP000 GBP000
Restructuring costs (227) -
Impairment of assets (1,055) -
------- -------
Loss for the year from discontinued operations (1,282) -
Tax credit on the above items 125 -
------- -------
Loss for the year from discontinued operations (1,157) -
------- -------
5. 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 year.
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 and the impact of net finance costs under IAS 19 "Employee
Benefits (Revised)". This calculation uses the weighted average number of
shares in issue during the year.
Diluted earnings per share are calculated based on profit for the financial
year attributable to equity holders of the parent. Diluted adjusted earnings
per share are calculated based on profit for the financial year attributable to
equity holders of the parent before exceptional items and the impact of net
finance costs under IAS 19 "Employee Benefits (Revised)". In each case the
weighted average number of shares is adjusted to reflect the dilutive potential
of the awards expected to be vested on the Long Term Incentive Schemes.
Earnings per share for the year ended 31 December 2012 has been restated to
reflect the impact on profit of changes in the calculation of pension costs in
accordance with IAS19 "Employee Benefits (Revised)" as explained in "Basis of
preparation and statement of compliance with IFRSs" in note 2.
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
2013 2012
Continuing Discontinued Continuing Discontinued
Operations Operations Total Operations Operations Total
(restated) (restated) (restated)
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Net profit/(loss) 14,469 (996) 13,473 14,608 269 14,877
attributable to
equity holders
Adjustments to net 523 - 523 398 - 398
financing costs
Exceptional items (1,215) 1,157 (58) 936 - 936
------ ------ ------ ------ ------ ------
Total adjusted and 13,777 161 13,938 15,942 269 16,211
diluted profit
attributable to
equity holders
------- ------- ------- ------- ------- -------
Weighted average number of shares
2013 2012
thousands thousands
Shares in issue 95,903 95,903
Weighted average number of treasury shares (325) (700)
------- -------
Weighted average number of shares for basic and 95,578 95,203
adjusted earnings per share (excluding treasury shares)
Effect of dilution of the Long Term Incentive Plan 959 649
------- -------
96,537 95,852
------- -------
Earnings per share
2013 2012
(restated)
From continuing operations
Basic 15.14p 15.34p
------- -------
Diluted 14.99p 15.24p
------- -------
Adjusted 14.41p 16.75p
------- -------
Diluted adjusted 14.27p 16.63p
------- -------
From continuing and discontinued operations
Basic 14.10p 15.62p
------- -------
Diluted 13.96p 15.52p
------- -------
Adjusted 14.58p 17.03p
------- -------
Diluted adjusted 14.44p 16.91p
------- -------
From discontinued operations
Basic (1.04)p 0.28p
------- -------
Diluted (1.03)p 0.28p
------- -------
Adjusted 0.17p 0.28p
------- -------
Diluted adjusted 0.17p 0.28p
------- -------
6. Dividends
2013 2012
Equity dividends on ordinary shares GBP000 GBP000
Declared and paid during the year
Final for 2012: 5.25p (2011: 4.50p) 5,001 4,284
Interim for 2013: 1.75p (2012: 1.75p) 1,677 1,666
------- -------
Dividends paid 6,678 5,950
------- -------
Proposed for approval at Annual General Meeting (not
recognised as a liability at 31 December)
Final dividend for 2013: 5.25p (2012: 5.25p) 5,032 4,998
------- -------
7. Financial liabilities
2013 2012
GBP000 GBP000
Current
Current instalments due on bank loans 3,939 3,852
Current instalment due on contingent consideration - 440
------ ------
3,939 4,292
------ ------
Non-current
Non-current instalments due on bank loans 55,866 56,500
Non-current instalment due on contingent consideration - 2,448
------ ------
55,866 58,948
------ ------
59,805 63,240
------ ------
The bank loans at 31 December 2013 are stated net of GBP730,000 (2012: GBP939,000)
of deferred financing costs.
The contingent consideration at 31 December 2012 was in respect of the
acquisition of Simply Zesty Limited.
8. Net Debt
2013 2012
GBP000 GBP000
Bank loans (59,805) (60,352)
Cash and short term deposits 10,691 10,958
------ ------
(49,114) (49,394)
------ ------
9. Pension schemes
The IAS 19 deficit at 31 December 2013 is GBP4,598,000 compared with a deficit of
GBP12,409,000 at 31 December 2012. The reduction in the deficit was primarily
driven by the strong return on the equity investments plus the increased
funding by the company. The assets generated higher than expected return during
the year resulting in an actuarial gain of GBP8,283,000 in contrast to an overall
actuarial loss on the liabilities of GBP3,172,000.
The Group funded a discretionary amount of GBP1,209,000 towards the actuarial
deficit in 2013 (2012: GBP1,181,000) by means of a cash transfer and has agreed
to make further payments of GBP1,209,000 each year to 2015 in addition to normal
contributions.
10. 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 2012 has not
changed. There have been no significant related party transactions in the year
ended 31 December 2013.
This summary has been approved by our Directors for release to the Press today
18 March 2014 and the full printed Annual Report and Accounts will be posted to
Shareholders and Stock Exchanges on 16 April 2014. Copies will be available to
the public at the Company's registered office Ormeau Road, Belfast BT7 1EB from
that date.
END
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