TIDMWLG
RNS Number : 5960T
Wireless Group PLC
31 March 2016
Wireless Group plc
("WLG" or "the Company" or "the Group")
Belfast, London & Dublin - 31 March 2016: Wireless Group plc
today announces preliminary results for the year ended 31 December
2015
Financial highlights
Continuing operations*
-- Group revenue of GBP75.1m (2014 restated: GBP82.4m)
-- Group operating profit of GBP13.0m (2014 restated:
GBP14.1m)
-- Pre-tax profits of GBP10.7m (2014 restated: GBP11.9m)
-- Exceptional profit of GBP6.9m from sale of Juice FM
-- Diluted adjusted earnings per share from continuing
operations of 8.65p (2014 restated: 9.43p)
-- Proposed final dividend of 7.60p post share consolidation
* As appropriate, references to profit include income from
associates and joint venture but exclude discontinued operations
and exceptional items
Discontinued operations
-- Sale of Television assets, including defined benefit pension
scheme, for GBP100m
-- Return of capital to shareholders of GBP55m
-- Loss after tax on discontinued operations of GBP5.3m (2014
restated: profit after tax of GBP4.6m)
Prospects highlights
-- Radio GB growth from UEFA Euro Football championships
-- D2 stations successfully launched in March 2016 capitalising
on listener demand for radio on digital platforms
-- 50% of 2016 forecast revenue for D2 stations already
booked
-- Strong market positions in Ireland leave us well placed to
benefit from growing economy
-- New GBP30m multi-currency revolving credit facility in place
to February 2020 - targeted net debt/EBITDA over the period is less
than 2:1
-- Richard Huntingford appointed as Executive Chairman, John
McCann, Group Chief Executive retiring in May 2016
Richard Huntingford, Chairman, Wireless Group plc, said:
"The new Wireless Group has a very exciting future as a focused
radio business with market leading assets, a robust balance sheet
and a strong management team. We are targeting double digit profit
growth over the medium term which should deliver both significant
income and capital growth for shareholders over the coming
years."
Key dates
-- 12 May 2016 - Annual General Meeting
-- 20 May 2016 - Record date for payment of dividends
-- 15 July 2016 - Payment of dividends
-- 22 August 2016 - Interim Results Announcement
For further information contact:
Investor Enquiries www.wirelessgroupplc.com/investors
Norman McKeown, Group Finance
Director +44 (0) 28 9026 2177
Media Enquiries
Maitland
James Devas +44 (0) 20 7379 5151
Overview
In an eventful year, your Company launched UTV Ireland, was part
of the consortium that won the licence to operate the second
national digital multiplex D2, sold Juice FM in Liverpool to Global
Radio for GBP10m and agreed to sell its television business to ITV
for GBP100m. With completion of the sale of the television business
taking place on 29 February 2016, your Company, with its new name,
is now a focused radio group with highly attractive assets, strong
cash generation, a robust balance sheet and the potential to
deliver double digit growth over the medium term.
Results and dividends for the year*
Group operating profit from continuing operations was GBP13.0m
(2014 restated: GBP14.1m) reflecting the World Cup comparative,
adverse foreign exchange movements and increased competitive
pressures in Ireland. After net interest costs of GBP2.2m (2014
restated: GBP2.2m) and foreign exchange losses, group profit before
taxation and exceptional items was GBP10.7m (2014 restated:
GBP11.9m). Exceptional items arose during the year as a result of
the profit on the sale of Juice FM of GBP6.9m plus an exceptional
tax credit of GBP2.2m largely due to the impact of a change in the
rate of UK corporation tax on deferred tax balances. This resulted
in a Group profit from continuing operations after tax and
exceptional items of GBP17.6m (2014 restated: GBP9.2m).
Losses after tax of GBP5.3m on discontinued operations,
reflecting the results of the television business, were incurred in
the year (2014 restated: profit after tax GBP4.6m).
Group net debt was lower at GBP45.8m (2014: GBP46.2m).
Dividends amounting to GBP6.9m (2014: GBP6.8m) were paid during
the year, representing a final ordinary dividend for 2014 of 5.43p
per share and an interim ordinary dividend for 2015 of 1.82p per
share as shown in note 7.
A final dividend of GBP5.2m representing 7.60p per share (post
share consolidation) is proposed for approval at the Annual General
Meeting. If approved, warrants in respect of it will be despatched
on 15 July 2016 to shareholders on the register at the close of
business on 20 May 2016.
Review of activities
UTV Ireland launched on 1 January 2015, having secured
transmission on all major distribution platforms and rights to a
broad range of popular programming, including all production of ITV
Studios. Consumer confusion around both re-tuning of digital
receivers and also programming inconsistencies with the long
established UTV Northern Ireland was gradually addressed and UTV
Ireland quickly established itself as the second most watched
channel in Ireland in weekday peaktime. However, this performance
was not matched at the weekend where the absence of consistently
popular programming undermined overall audience delivery and
therefore advertising revenue projections, leading to revisions of
profit expectations. With the path to profitability extended, your
Board considered a GBP100m cash offer from ITV for our television
business as an opportunity to release immediate value for our
shareholders while substantially improving our risk profile. That
risk profile was further enhanced by the transfer to ITV of our
pension obligations under the defined benefit scheme. The
completion of the sale to ITV was conditional upon clearances from
the Broadcasting Authority of Ireland, the Competition and Consumer
Protection Commission and the Minister for Communications, Energy
and Natural Resources. These clearances were duly received and
completion of the sale took place on 29 February 2016. Of the
GBP98m net cash proceeds, GBP50.8m was returned to shareholders
through the issue and redemption of B shares on 25 March 2016,
while a further GBP4.2m will be distributed by way of special
dividend on 15 July 2016.
The Group's banking facilities were fully repaid on 29 February
2016 with new facilities put in place on this date comprising a
GBP30m dual-currency Revolving Credit Facility and overdraft
facility for 4 years. Targeted net debt/EBITDA over this period is
less than 2.00:1.
In March 2015, our Radio GB division was awarded the UK's second
national DAB multiplex licence, D2, along with its two Sound
Digital consortium partners, Bauer Media and Arqiva. Since then,
extensive preparations have taken place which culminated in the
successful launch of 3 new national radio services in March 2016.
These are talkRADIO, a talk-led service focussed on current affairs
and entertainment; Virgin Radio, a music service which brings the
famous Virgin Radio brand back to the UK under a 12 year brand
licence agreement with Virgin Group; and talkSPORT 2, a
complementary service to talkSPORT covering live action across a
broader range of sports.
In a post World Cup year, talkSPORT, with its focus on football,
continued to provide an essential service to loyal fans, recording
on average more than three million listeners every week. With
strong demand for the younger, generally affluent male demographics
of those listeners, advertisers were receptive to a significant
increase in our spot advertising rates. It's worth noting that more
than 10% of talkSPORT's revenue now comes from its digital
inventory. talkSPORT's international broadcasting business, now in
its fourth season, continues to achieve double digit sales and
profit growth with rights in place for three further seasons.
We confirmed on 9 January 2015 that our local radio stations in
GB were subject to a strategic review. This review was wide ranging
and thorough and was intended to determine whether greater value
could be derived from disposals or from driving further profits
from these stations. Despite receiving a number of attractive
offers for those radio assets, we concluded, with one exception,
that the latter option was the correct choice. The one exception
was our only youth orientated station, Juice FM in Liverpool, where
we accepted Global Radio's GBP10m offer.
The Irish radio advertising market has been severely impacted by
the years of deep recession in Ireland, falling by an estimated 50%
from peak to trough. Recovery in Irish domestic consumer demand has
lagged the very strong turnaround in the overall Irish economy but
2015 saw the Irish consumer gain confidence and Irish domestic
consumption started to record good growth. Surprisingly, this
confidence was not reflected in the Irish radio advertising market
which moved only slowly out of the trough. A feature of 2015 was
the increasingly competitive nature of the radio market.
Anticipating a return to strong advertising growth, radio station
owners became more aggressive in terms of marketing and investment
in talent, and discounted pricing remained prevalent.
Board changes
After twenty-three years' service on the Board, including
sixteen as Chief Executive, John McCann (62) decided in March 2016
that the sale of the Company's television business marked a very
natural time for him to retire. John joined UTV as Financial
Controller in 1983, becoming Director and General Manager in 1990
and Chief Executive in 1999. Under John's leadership, UTV was
transformed from its ITV regional licensee origins into one of the
most successful media companies in the UK and Ireland, with market
leading radio, television and digital media assets. John will
retire at the time of the AGM in May 2016.
(MORE TO FOLLOW) Dow Jones Newswires
March 31, 2016 02:00 ET (06:00 GMT)
On behalf of all shareholders and employees of the Company, I
would like to thank John for his outstanding leadership,
professionalism and passionate commitment to the Company over so
many years. He leaves the Company in a very healthy state and with
our fondest best wishes.
Coline McConville, who joined the Board in 2012, will also
retire at the AGM in May 2016 and I would like to thank her for the
very valuable contribution that she has made during her time on the
Board.
At the same time I would like to thank my other colleagues on
the Board, our management and staff for all their hard work and
determination during what has been an eventful and transforming
year for the Group.
Having considered the nature of the continuing Group and the
experienced existing management team, the Board has asked me to
become Executive Chairman and to lead the Company's growth strategy
as a focused radio group. I look forward to using my extensive
experience of the radio industry and existing knowledge of the
Company's businesses to ensure that the Company continues to focus
all its efforts on delivering long-term value for shareholders.
Prospects
The launch and establishment of our three new recently launched
national radio stations on D2 is a key priority for 2016. talkSPORT
2 and talkRADIO will leverage talkSPORT's brand heritage while
Virgin Radio will have instant brand recognition. All three
stations will be supported by existing infrastructure and will
benefit from cross promotion, thereby helping to keep costs as low
as possible. Our low cost model for these digital stations
envisages breakeven being achieved at modest audience delivery
levels. Operating losses at the three stations are anticipated to
be circa GBP3.6m in 2016, moving to a small loss in 2017 and
growing profitably beyond this. 50% of our forecast 2016 revenue
for the D2 stations has already been achieved.
talkSPORT has a commanding position in the UK radio market as
the premier sports radio station and will benefit from the summer
Euro 2016 tournament. Both the size and the profile of its audience
makes it an attractive medium for advertisers seeking male
audiences. While a major football tournament typically would drive
a 10% increase in sales over the course of a calendar year,
talkSPORT is experiencing good underlying sales growth in addition
to the positive effect of the Euros which augurs well for 2016. Our
local radio stations are expected to perform broadly in line with
the UK radio market for the year as a whole.
The Irish economy is forecast to grow strongly in 2016 and
beyond. Consumer expenditure is also forecast to grow. This growth
should translate into increased advertising expenditure and Irish
advertising agencies appear to be cautiously optimistic despite the
backdrop of the slowing global economy. Our radio stations in
Ireland continue to enjoy market leading positions in key urban
areas across the country which should leave them well placed to
avail of market growth. At this stage, we expect single digit Irish
radio advertising growth in 2016 with the first quarter softer due
to a very strong comparative in January.
Conclusion
The new Wireless Group has a very exciting future. As a focused
radio business with market-leading assets and a strong management
track record of growing audiences and revenues, I am confident that
we can target double digit profit growth over the medium term. Our
robust balance sheet and strong cash generation will support a
progressive dividend policy allowing shareholders to look forward
to both significant income and capital growth from the Company over
the coming years.
Richard Huntingford
Chairman
31 March 2016
Group Income Statement
For the year ended 31 December 2015
Results Results
before before
Exceptional Exceptional Exceptional Exceptional
Items Items Total Items Items Total
Notes 2015 2015 2015 2014 2014 2014
(restated) (restated)
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Continuing operations
Revenue 2 75,074 - 75,074 82,422 - 82,422
Operating costs (62,571) - (62,571) (68,601) - (68,601)
------- ------- ------- ------- ------- -------
Operating profit from
continuing operations
before tax and finance
costs 2 12,503 - 12,503 13,821 - 13,821
Share of results of
associates
and joint venture 475 - 475 314 - 314
Profit on sale of group
undertaking 3 - 6,871 6,871 - - -
------- ------- ------- ------- ------- -------
Profit from continuing
operations before tax
and finance costs 2 12,978 6,871 19,849 14,135 - 14,135
Finance revenue 37 - 37 50 - 50
Finance costs (2,221) - (2,221) (2,220) - (2,220)
Foreign exchange loss (58) - (58) (50) - (50)
------- ------- ------- ------- ------- -------
Profit from continuing
operations before tax 2 10,736 6,871 17,607 11,915 - 11,915
Taxation 4 (2,220) 2,191 (29) (2,672) - (2,672)
------- ------- ------- ------- ------- -------
Profit from continuing
operations after tax 8,516 9,062 17,578 9,243 - 9,243
Discontinued operations
(Loss)/profit from
discontinued
operations 5 (5,251) (24) (5,275) 4,557 - 4,557
------- ------- ------- ------- ------- -------
Profit for the year 3,265 9,038 12,303 13,800 - 13,800
------- ------- ------ ------- ------- ------
Attributable to:
Equity holders of the
parent 3,068 9,038 12,106 13,643 - 13,643
Non-controlling interest 197 - 197 157 - 157
------- ------- ------- ------- ------- -------
3,265 9,038 12,303 13,800 - 13,800
------- ------- ------ ------- ------- ------
Earnings per share 2015 2014
Continuing operations (restated)
Basic 6 18.13p 9.48p
Diluted 6 18.08p 9.43p
Adjusted 6 8.68p 9.48p
Diluted adjusted 6 8.65p 9.43p
Continuing and
discontinued
operations
Basic 6 12.63p 14.23p
Diluted 6 12.59p 14.16p
Adjusted 6 3.26p 14.42p
Diluted adjusted 6 3.25p 14.35p
Group Statement of Comprehensive Income
For the year ended 31 December 2015
2015 2014
(restated)
GBP000 GBP000
Profit for the year 12,303 13,800
------- -------
Other comprehensive income
Items that may be reclassified subsequently
to profit or loss:
Exchange difference on translation of
foreign operations (2,579) (3,444)
Income tax relating to items that may
be reclassified 32 (32)
------- -------
(2,547) (3,476)
------- -------
Other comprehensive loss for the year,
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net of tax (2,547) (3,476)
Other comprehensive income for the year
from discontinued operations, net of
tax 1,072 353
------- -------
Total comprehensive income for the year,
net of tax 10,828 10,677
------- -------
Attributable to:
Equity holders of the parent - continuing
operations 14,834 5,610
Equity holders of the parent - discontinued
operations (4,203) 4,910
Non-controlling interest 197 157
------- -------
10,828 10,677
------- -------
Group Balance Sheet
At 31 December 2015
Notes 2015 2014
ASSETS GBP000 GBP000
Non-current assets
Property, plant and equipment 5,701 17,360
Intangible assets 166,696 172,163
Investments accounted for using the
equity method 1,053 900
Deferred tax asset 4 719 1,531
------- -------
174,169 191,954
------- -------
Current assets
Inventories 1,584 2,390
Trade and other receivables 16,986 23,502
Financial asset 8 - 275
Cash and short term deposits 10 9,934 12,886
------- -------
28,504 39,053
------- -------
Assets of disposal group 5 22,611 -
------- -------
TOTAL ASSETS 225,284 231,007
------- -------
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 (104) (104)
Foreign currency reserve 989 3,571
Retained earnings 51,958 45,428
------- -------
Equity attributable to equity holders
of the parent 108,450 104,502
Non-controlling interest 114 53
------- -------
TOTAL EQUITY 108,564 104,555
------- -------
Non-current liabilities
Financial liabilities 9 52,322 55,399
Pension liability 11 - 1,971
Provisions 381 372
Deferred tax liabilities 4 30,853 34,266
------- -------
83,556 92,008
------- -------
Current liabilities
Trade and other payables 19,446 28,058
Financial liabilities 9 3,422 3,668
Tax payable 1,397 1,909
Provisions 665 809
------- -------
24,930 34,444
------- -------
Liabilities of disposal group 5 8,234 -
------- -------
TOTAL LIABILITIES 116,720 126,452
------- -------
------- -------
TOTAL EQUITY AND LIABILITIES 225,284 231,007
------- -------
Group Cash Flow Statement
For the year ended 31 December 2015
Notes 2015 2014
GBP000 GBP000
Operating activities
Profit before tax (i) 13,404 17,044
Adjustments to reconcile profit before
tax to
net cash flows from operating activities
Foreign exchange loss 44 75
Net finance costs 2,239 2,357
Share of results of associates and
joint venture (475) (272)
Consideration receivable from disposal
of discontinued
operations - (1,175)
Exceptional profit on the sale of
group undertaking (6,871) -
Depreciation of property, plant and
equipment 3,016 1,936
Loss from sale of property, plant
and equipment 12 32
Share based payments 266 303
Difference between pension contributions
paid and amounts
recognised in the income statement (740) (2,454)
Increase in inventories (1,138) (632)
Increase in trade and other receivables (4,188) (1,031)
(Decrease)/increase in trade and
other payables (303) 4,783
(Decrease)/increase in provisions (135) 70
------- -------
Cash generated from operations before
exceptional costs 5,131 21,036
Tax paid (2,790) (2,480)
------- -------
Net cash inflow from operating activities 2,341 18,556
------- -------
Investing activities
Interest received 41 51
Proceeds on disposal of property,
plant and equipment 9 20
Purchase of property, plant and equipment (3,171) (7,622)
Income received from associates and
joint venture 321 235
Proceeds from the disposal of discontinued
operations 325 900
Proceeds from disposal of a group
undertaking 9,542 -
------- -------
Net cash flows from investing activities 7,067 (6,416)
------- -------
Financing activities
Borrowing costs (2,311) (1,816)
Dividends paid to equity shareholders (6,909) (6,766)
Dividends paid to non-controlling
interests (136) (210)
Acquisition of treasury shares - (506)
Repayment of borrowings (3,611) (3,940)
Proceeds from borrowings 687 3,879
------- -------
Net cash flows used in financing
activities (12,280) (9,359)
------- -------
Net (decrease)/increase in cash and
cash equivalents (2,872) 2,781
Net foreign exchange differences (80) (80)
Cash and cash equivalents at 1 January 12,886 10,185
------- -------
Cash and cash equivalents at 31 December 10 9,934 12,886
------- -------
(i) Includes both continuing and discontinued operations.
Group Statement of Changes in Equity
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For the year ended 31 December 2015
Equity Capital Foreign Share
share redemption Treasury currency Retained holder Non-controlling
capital reserve shares reserve earnings equity interest Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 January
2014 55,557 50 (123) 6,950 38,531 100,965 106 101,071
------ ------- ------- ------- ------- ------- ------- -------
Profit for the
year - - - - 13,643 13,643 157 13,800
Other comprehensive
(loss)/income
in the year - - - (3,379) 256 (3,123) - (3,123)
------ ------- ------- ------- ------- ------- ------- -------
Total net
comprehensive
(loss)/income
in the year - - - (3,379) 13,899 10,520 157 10,677
Acquisition of
treasury shares - - (506) - - (506) - (506)
Treasury shares
issued - - 525 - (525) - - -
Share based payment - - - - 303 303 - 303
Equity dividends
paid - - - - (6,780) (6,780) (210) (6,990)
------ ------- ------- ------- ------- ------- ------- -------
At 31 December
2014 55,557 50 (104) 3,571 45,428 104,502 53 104,555
------ ------- ------- ------- ------- ------- ------- -------
Profit for the
year - - - - 12,106 12,106 197 12,303
Other comprehensive
(loss)/income
in the year - - - (2,579) 32 (2,547) - (2,547)
Other comprehensive
income from
discontinued
operations - - - (3) 1,075 1,072 - 1,072
------ ------ ------ ------- ------- ------- ------- -------
Total net
comprehensive
(loss)/income
in the year - - - (2,582) 13,213 10,631 197 10,828
Share based payment - - - - 266 266 - 266
Equity dividends
paid - - - - (6,949) (6,949) (136) (7,085)
------ ------- ------- ------- ------- ------- ------- -------
At 31 December
2015 55,557 50 (104) 989 51,958 108,450 114 108,564
------ ------- ------- ------- ------- ------- ------- -------
Notes to the accounts
For the year ended 31 December 2015
1. Basis of preparation
The Group's financial statements consolidate those of Wireless
Group 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 2015 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 2015: Amendment to IAS 19: Employee
Contributions, IFRS Improvements 2010 - 2012 Cycle and IFRS
Improvements 2011 - 2013 Cycle. The application of these new
standards effective from 1 January 2015 has not had an impact on
the Group's financial statements.
In October 2015 the Group entered into a conditional agreement
to sell its Television business to ITV. The sale of this business
was completed on 29 February 2016. Consequently the Group Income
Statement reflects the classification of this business as
discontinued operations for both 2015 and 2014.
The Group and Company financial statements are presented in
sterling and all values are rounded to the nearest thousand
(GBP000) except when otherwise indicated.
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 2015. The statutory
accounts for the year ended 31 December 2014, 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
2015 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
(a) Operating segments
The tables below present revenue and segment result information
regarding the Group's operating segments for the years ended 31
December 2015 and 2014. These business segments all operate as part
of the Group's continuing operations.
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. Transfer prices between
business segments are set on an arm's length basis in a manner
similar to transactions with third parties.
Following the agreement in 2015 to sell the main Television
segment businesses, UTV and UTV Ireland as outlined in note 5, and
the classification of these businesses as discontinued operations,
Tibus and Simply Zesty which were previously included within the
Television segment are now included as a separate segment, renamed
Digital Services.
The following tables present revenue, profit before tax and
business segment information regarding the Group's business
segments for the years ended 31 December 2015 and 2014. The figures
for the year ended 31 December 2014 have been restated to reflect
the change in segments noted above.
Revenue
Year ended 31 December 2015
Radio Radio Digital
GB Ireland Services Total
GBP000 GBP000 GBP000 GBP000
Sales to third parties 52,810 17,750 4,514 75,074
Intersegmental sales 690 1,254 935 2,879
------- ------- ------- -------
53,500 19,004 5,449 77,953
------- ------- ------- -------
Year ended 31 December 2014
Radio Radio Digital
GB Ireland Services Total
(restated) (restated)
GBP000 GBP000 GBP000 GBP000
Sales to third parties 56,396 20,463 5,563 82,422
Intersegmental sales 649 1,223 1,207 3,079
------- ------- ------- -------
57,045 21,686 6,770 85,501
------- ------- ------- -------
(a) Operating segments (continued)
Results
Year ended 31 December 2015
Radio Radio Digital
GB Ireland Services Total
GBP000 GBP000 GBP000 GBP000
Segment operating profit 11,737 4,382 124 16,243
------- ------- -------
Central costs (3,740)
Associate and Joint Venture
income 475
-------
Profit before exceptional
costs, tax and finance costs 12,978
Exceptional items 6,871
-------
19,849
Net finance cost (2,184)
Foreign exchange loss (58)
-------
Profit before taxation 17,607
-------
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Year ended 31 December 2014
Radio Radio Digital
GB Ireland Services Total
(restated) (restated)
GBP000 GBP000 GBP000 GBP000
Segment operating profit 11,331 5,384 954 17,669
------- ------- -------
Central costs (3,848)
Associate and Joint Venture
income 314
-------
Profit before exceptional
costs, tax and finance costs 14,135
Exceptional items -
-------
14,135
Net finance cost (2,170)
Foreign exchange loss (50)
-------
Profit before taxation 11,915
-------
3. Exceptional item
On 8 October 2015 the Group completed the sale of Juice Holdco
Limited, trading as Juice FM, to Global Radio Holdings Ltd, a
subsidiary of This is Global Ltd. This resulted in a profit on
disposal before tax of GBP6,871,000.
Profit on disposal of subsidiary
2015
GBP000
Proceeds from sale 10,421
Transitional and wind-up costs
Net assets disposed of:
* Licence (1,858)
* Other net assets (813)
Professional fees (879)
-------
Profit from disposal of subsidiary 6,871
-------
The exceptional tax credit reflects GBP334,000 arising from the
release of the deferred tax liability in respect of the radio
licence disposed of with the sale of Juice Holdco Limited plus an
additional deferred tax credit of GBP1,833,000 (2014: GBPNil) due
to the change in the UK deferred tax rate from 20% to 18%.
4. Taxation
Tax on profit on ordinary activities
2015 2014
GBP000 GBP000
Current income tax:
UK corporation tax on profits for the year (3,294) (2,962)
Adjustments in respect of previous years 369 431
------- -------
(2,925) (2,531)
------- -------
Foreign tax:
ROI corporation tax on profits for the year - (116)
Adjustments in respect of previous years 30 (27)
------- -------
30 (143)
------- -------
Total current tax (2,895) (2,674)
Deferred tax:
Origination and reversal of timing differences (280) (580)
Adjustments in respect of previous years (93) 10
------- -------
Tax charge in the income statement on operating
activities (3,268) (3,244)
Exceptional deferred tax credit 2,167 -
------- -------
Total tax charge (1,101) (3,244)
------- -------
The tax charge in the Income Statement is
disclosed as:
Tax charge on continuing operations (29) (2,672)
Tax charge on discontinued operations (1,072) (572)
------- -------
Tax charge in the income statement (1,101) (3,244)
------- -------
Tax relating to items in the Statement of
Comprehensive Income
Deferred tax:
Actuarial gain on pension schemes (241) (72)
Valuation of long term incentive plan 32 (32)
Exceptional deferred tax credit (39) -
------- -------
Tax charge in the statement of comprehensive
income (248) (104)
------- -------
5. Assets held for disposal
In October 2015 the Group entered into a conditional agreement
for the sale of UTV Limited and UTV Ireland Limited, to ITV
Broadcasting Limited for a cash consideration of GBP100million on a
cash-free debt-free basis. On 1 December 2015 the shareholders of
the Company approved the plan to sell these companies. The sale was
completed on 29 February 2016. At 31 December 2015 the Television
business was classified as a disposal group held for sale and as
discontinued operations. With UTV Limited and UTV Ireland Limited
being classified as discontinued operations the Television segment
in the segmental analysis in note 2 has been renamed, Digital
Services, reflecting the two businesses within this segment which
remain within the Group.
6. 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.
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
2015 2014
Continuing Discontinued Continuing Discontinued
Operations Operations Total Operations Operations Total
(restated) (restated)
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Net profit/(loss)
attributable
to equity holders 17,381 (5,275) 12,106 9,086 4,557 13,643
Adjustments to
net financing
costs - 55 55 - 187 187
Exceptional items (9,062) 24 (9,038) - - -
------ ------ ------ ------ ------ ------
Total adjusted
and diluted profit
attributable
to equity holders 8,319 (5,196) 3,123 9,086 4,744 13,830
------- ------- ------- ------- ------- -------
Weighted average number of shares
2015 2014
thousands thousands
Shares in issue 95,903 95,903
Weighted average number of treasury shares (53) (23)
------- -------
Weighted average number of shares for basic
and
adjusted earnings per share (excluding
treasury shares) 95,850 95,880
Effect of dilution of the Long Term Incentive
Plan 238 467
Effect of dilution of the share award element
of executive bonus 33 -
------- -------
96,121 96,347
------- -------
6. Earnings per share (continued)
2015 2014
(restated)
From continuing operations
Basic 18.13p 9.48p
------- -------
Diluted 18.08p 9.43p
------- -------
Adjusted 8.68p 9.48p
(MORE TO FOLLOW) Dow Jones Newswires
March 31, 2016 02:00 ET (06:00 GMT)
------- -------
Diluted adjusted 8.65p 9.43p
------- -------
From continuing and discontinued operations
Basic 12.63p 14.23p
------- -------
Diluted 12.59p 14.16p
------- -------
Adjusted 3.26p 14.42p
------- -------
Diluted adjusted 3.25p 14.35p
------- -------
From discontinued operations
Basic (5.50)p 4.75p
------- -------
Diluted (5.49)p 4.73p
------- -------
Adjusted (5.42)p 4.95p
------- -------
Diluted adjusted (5.40)p 4.92p
------- -------
7. Dividends
2015 2014
Equity dividends on ordinary shares GBP000 GBP000
Declared and paid during the year
Final for 2014: 5.43p (2013: 5.25p) 5,205 5,035
Interim for 2015: 1.82p (2014: 1.82p) 1,744 1,745
------- -------
Dividends paid 6,949 6,780
------- -------
Proposed for approval at Annual General Meeting
(not recognised as a liability at 31 December)
Final dividend for 2015: 7.60p (2014: 5.43p) 5,218 5,208
------- -------
The proposed final dividend for 2015 has been based on the
issued share capital at the record date, following the share
consolidation.
8. Financial asset
2015 2014
GBP000 GBP000
Contingent consideration - 275
------ ------
Contingent consideration receivable in 2014 relates to amounts
due in respect of the disposal of certain of the Group's New Media
businesses during the year.
9. Financial liabilities
2015 2014
GBP000 GBP000
Current
Current instalments due on bank loans 3,422 3,668
Non-current
Non-current instalments due on bank loans 52,322 55,399
------ ------
55,744 59,067
------ ------
The borrowings at 31 December 2015 are stated net of GBP345,000
(2014: GBP509,000) of deferred financing costs.
10. Net debt
2015 2014
GBP000 GBP000
Bank loans (55,744) (59,067)
Cash and short term deposits 9,934 12,886
------ ------
(45,810) (46,181)
------ ------
11. Pension schemes
The IAS 19 surplus at 31 December 2015 is GBP54,000 compared
with a deficit of GBP1,971,000 at 31 December 2014. The reduction
in the deficit was primarily driven by adjustments realised
following the actuarial review in the year.
The Group funded a discretionary amount of GBP1,209,000 towards
the actuarial deficit in 2015 (2014: GBP1,209,000) by means of a
cash transfer.
The defined benefit pension scheme is operated within UTV
Limited and this transferred to ITV Broadcasting Limited from 29
February 2016 on completion of the sale of this company.
12. 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 2014 has not changed. There have been no significant
related party transactions in the year ended 31 December 2015.
This summary has been approved by our Directors for release to
the Press today 31 March 2016 and the full printed Annual Report
and Accounts will be posted to Shareholders and Stock Exchanges on
12 April 2016. Copies will be available to the public at the
Company's registered office Ormeau Road, Belfast, BT7 1EB from that
date.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GMGFFKGLGVZM
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March 31, 2016 02:00 ET (06:00 GMT)
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