Source - RNS
RNS Number : 8706K
Cellcast plc
27 September 2016
 

 

Cellcast plc

("Cellcast" or the "Company")

 

Interim results for the six months ended 30 June 2016

 

 

 

The Board of Cellcast plc (AIM: CLTV) announces the Company's interims results for the six months ended 30 June 2016.

 

 

Highlights

 

·    UK interactive broadcast revenues of £5.3 million (H1 2015: £5.6 million)

 

·    Revenues from newly launched overseas gaming services of £320,000 (H1 2015: £nil)

 

·    Profit before tax of £78,000 for the period (H1 2015: £256,000)

 

·    Earnings per share of 0.1p (H1 2015: 0.4p)

 

 

 

Andrew Wilson, CEO of Cellcast plc, commented:

 

"Whilst demand for our core interactive broadcast revenues in the UK continued to decline, we are encouraged to have commenced revenue generation from our new consulting operations in the gaming and gambling sectors in emerging markets.  The Directors are hopeful that this provides an opportunity to offset further decline in the domestic TV related business."

 

 

For further information:

 

Cellcast plc


Andrew Wilson, CEO

Tel: +44 (0) 203 376 9420

[email protected]

www.cellcast.tv



Allenby Capital Limited (Nominated Adviser)


Nick Naylor/James Reeve

Tel: +44 (0) 20 3328 5656



 



 

CHIEF EXECUTIVE OFFICER'S STATEMENT

 

 

Half year results

 

UK interactive broadcast revenues for the six months ended 30 June 2016 were approximately £5.3 million, a decrease of 8% on the same period last year. Revenue from newly launched overseas gaming consultancy services represented £320,000. Gross profit amounted to £378,000 (H1 2015: £639,000).

 

Operating costs for the period were £343,000 (H1 2015: £380,000).

 

Overall, the Company's operations generated a profit before tax of £78,000. This compares to an operating profit of £256,000 for the period ending 30 June 2015.

 

The post-tax profit for the period amounted to £78,000. This represents earnings per share of 0.1p. By comparison, the period to 30 June 2015 achieved a net profit of £339,000 and earnings per share of 0.4p.

 

The Company's cash and cash equivalents at 30 June 2016 stood at £1,189,000 compared to a balance of £1,563,000 at 30 June 2015.

 

Outlook

 

As the Group's core revenues from UK interactive broadcasting diminish, the Directors are continuing to explore opportunities for diversification, specifically focussing on building revenues from the licensing, consulting and support of interactive gaming products and services in emerging markets. The Directors are pleased with the progress made in the Company's first venture into this new business area, as a services provider to a gaming operator in Kenya. Whilst launched in November 2015, the Company commenced meaningful revenue generation during H1 2016 and its contract with its local client is on-going. It is hoped that net contribution from these services could be increased by margin improvement from the economies of scale that could be achieved by expanding its portfolio of applications.

 

Whilst the Group does not envisage a short term recovery in its core UK interactive TV business, the Company is progressing interesting opportunities in these area, such as launching on a new cable TV platform and provision of new paid-for online content.  The Company's objective over the medium term is that the new and other related initiatives can offset the continuing deterioration of the domestic TV related business.

 

 

 

Andrew Wilson

 

Chief Executive Officer

27 September 2016

 

 



 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENT of comprehensive income

 

For the 6 months ended 30 June 2016







Audited


6 months ended

6 months ended

Year ended


30/06/16

30/06/15

31/12/15


£

£

£





Revenue

5,663,962

5,790,625

11,840,875





Cost of sales

(5,285,847)

(5,151,415)

(10,606,279)





Gross profit

378,115

639,210

1,234,596





Operating costs and expenses:




   Administrative expenses

(264,473)

(304,338)

(660,203)

   Amortisation and depreciation

(78,694)

(75,230)

(152,702)

Total operating costs and expenses

(343,166)

(379,568)

(812,905)

Operating profit

34,948

259,642

421,691





Interest receivable and similar income

14,352

-

28,880

Interest payable & similar charges

(4,514)

(4,000)

(6,268)

Share of results of associate

33,202

-

7,135





Profit before tax

77,989

255,642

451,438

 

 




Taxation

-

84,160

-

Tax credit

-

-

78,384





Profit for the period

77,989

339,802

529,822





Total comprehensive income attributable to owners of the parent

77,989

339,802

529,822

 

Profit per share




Basic and diluted                                 

0.1p

0.4p

0.7p





 

 



UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

As at 30 June 2016









Audited



30/06/16

30/06/15

31/12/15



£

£

£

Assets





Non-current assets





Intangible assets


129,856

185,655

154,912

Property, plant and equipment


165,752

216,447

209,373

Investments


88,813

177,627

88,813

Interest in associate


40,341

-

7,139



424,762

579,729

460,237






Current assets





Investments


242,350

165,000

205,335

Trade and other receivables


1,785,150

1,610,743

2,301,178

Cash and cash equivalents


1,188,962

1,563,601

839,276



3,216,462

3,339,344

3,345,789






Non-current assets classified as held for sale


-

-

-






Total assets


3,641,224

3,919,073

3,806,026
















Capital and reserves





Called up share capital


     2,285,398

     2,285,398

2,285,398

Share premium account


    5,533,626

    5,533,626

5,533,626

Merger reserve


    1,300,395

    1,300,395

1,300,395

Warrant reserve


13,702

13,702

13,702

Retained earnings


(7,343,666)

(7,611,675)

(7,421,655)

Equity / (deficit) attributable to owners of the parent


1,789,455

1,521,446

1,711,466






Liabilities





Non-current liabilities


435,000

535,000

485,000

Current liabilities





Trade and other payables


1,416,769

1,862,627

1,609,560

Total liabilities


1,851,769

2,397,627

2,094,560

Total equity and liabilities


3,641,224

3,919,073

3,806,026






 

 

 



UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

 

 

 

 

As at 30 June 2016

Share

Share

Merger

Warrant

Retained

Shareholders


Capital

Premium

Reserve

Reserve

Earnings

Funds









£

£

£

£

£

£

Balance at 1 January 2016

2,285,398

5,533,626

1,300,395

13,702

(7,421,655)

1,711,466

Profit for the period

-

-

-

-

77,989

77,989

Balance at 30 June 2016

2,285,398

5,533,626

1,300,395

13,702

(7,343,668)

1,789,453

 

 

 

 

As at 31 December 2015

Share

Share

Merger

Warrant

Retained

Shareholders


Capital

Premium

Reserve

Reserve

Earnings

Funds









£

£

£

£

£

£

Balance at 1 January 2015

2,285,398

5,533,626

1,300,395

13,702

(7,951,477)

1,181,644

Loss for the period

-

-

-

-

529,822

529,822

Balance at 31 December 2015

2,285,398

5,533,626

1,300,395

13,702

(7,421,655)

1,711,466

 

 

 

 

 

 

As at 30 June 2015

Share

Share

Merger

Warrant

Retained

Shareholders


Capital

Premium

Reserve

Reserve

Earnings

Funds









£

£

£

£

£

£

Balance at 1 January 2015

2,285,398

5,533,626

1,300,395

13,702

(7,951,477)

1,181,644

Profit for the period

-

-

-

-

339,802

339,802

Balance at 30 June 2015

2,285,398

5,533,626

1,300,395

13,702

(7,611,675)

1,521,446

 

 

 

 

 

 

 

In the above tables, the amounts are attributable to the equity holders of the parent.



UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 

For the 6 months ended 30 June 2016

 





Audited



6 months ended

6 months ended

Year ended



30/06/16

30/06/15

31/12/15



£

£

£






Net cash inflow / (outflow) from operations

a

364,216

(47,738)

(556,463)











Net cash (outflow) / inflow from investing activities

b

(10,017)

1,017,669

804,337






Net cash used in financing activities

c

(4,514)

(4,000)

(6,268)






Net increase in cash and cash equivalents


349,685

965,931

241,606






Cash and cash equivalents at beginning of period


839,276

597,670

597,670






Cash and cash equivalents at end of period


1,188,961

1,563,601

839,276

 

 

 

 

 

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

For the 6 months ended 30 June 2016

 








6 months ended

6 months ended

Audited

 Year ended



30/06/16

30/06/15

31/12/15



£

£

£

a

Reconciliation of net loss to net cash (outflow) / inflow from operating activities










Profit before tax

77,989

255,642

451,438


Interest receivable & similar income

(14,352)

-

(28,880)


Interest payable & similar charges

4,514

4,000

6,268


Amortisation and depreciation

78,694

75,230

152,702


Gain on sale of intellectual property

-

(173,673)

-


Share of associates profit

(33,202)

-

(7,135)


FX gain on current asset investment

(22,663)


(11,455)


Impairment of non-current asset investments

-

-

88,814


R&D tax credit

-

84,160

78,384


Decrease / (increase) in trade and other receivables

516,028

(136,811)

(827,246)


Decrease in trade and other payables

(242,791)

(156,286)

(459,353)


Net cash (outflow) / inflow from operations

364,216

(47,738)

(556,463)











b

Cash flow from investing activities










Proceeds on sale of channel

-

-

-


Proceeds on sale of intellectual property

-

173,673

-


Purchase of property, plant and equipment

(10,017)

(16,004)

(55,659)


Refund of JV

-

-

1,000,000


Investment in treasury fund

-

(165,000)

(165,000)


Sale / (purchase) of investment

-

1,025,000

-


Proceed from non-current investment

-

-

25,000


Purchase of investment in associate

-

-

(4)


Net cash inflow / (outflow) from investing activities

(10,017)

1,017,669

804,337











c

Cash flow from financing activities










Interest paid

(4,514)

(4,000)

(6,268)


Net cash used in financing activities

(4,514)

(4,000)

(6,268)

 

 

 

d

Cash and cash equivalents










Cash at bank

1,188,962

846,624

839,276


Cash and cash equivalents at the end of the period

1,188,962

846,624

839,276

 



NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

 

 

1.     General Information

 

Cellcast plc is a limited liability Company incorporated and domiciled in the United Kingdom.  Its business address is Unit 20-22 Cochran Close, Crownhill Industrial Estate, Milton Keynes, MK8 0AJ.  The address of its registered office is The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU.  Copies of this statement are available from this address and from the Company's website www.cellcast.tv.

 

The Company is quoted on the AIM Market of the London Stock Exchange.

 

This condensed consolidated interim financial information was approved for issue on 27 September 2016.

 

2.     Basis of preparation

 

This unaudited condensed consolidated interim financial information is for the six months ended 30 June 2016. This has been prepared in accordance with recognition and measurement principles of International Financial Reporting Standards (IFRS) as endorsed by the European Union and implemented in the UK. The financial information in this interim announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

 

The interim financial information does not include all of the information required for full annual financial statements and accordingly, whilst the interim financial information has been prepared in accordance with the recognition and measurement principles of IFRS, it cannot be construed as being in full compliance with IFRS.

 

The comparative financial information for the year ended 31 December 2015 does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The statutory accounts of the Group for the year ended 31 December 2014 have been reported on by the Company's auditor and have been delivered to the Registrar of Companies.

 

The current and comparative periods to June have been prepared using accounting policies and practices consistent with those adopted in the annual financial statements for the year ended 31 December 2015 and are also consistent with those which will be adopted in the 31 December 2016 financial statements. 

 

There were no other Standards and Interpretations which were in issue but not effective at the date of authorisation of this condensed interim financial information that the directors anticipate will have a material impact on the financial statements of the Group.

 

 

 



NOTES TO THE UNAUDITED INTERIM ACCOUNTS STATEMENT

 

 

3.     Revenue








Audited


6 months ended

6 months ended

Year ended


30/06/16

30/06/15

31/12/15


£

£

£





Revenue




  Interactive broadcast

5,343,767

5,790,625

11,840,875

  Overseas gaming services

320,195

-

-

Total revenue

5,663,962

5,790,625

11,840,875

 

 

4.     Earnings per share

 

Basic and diluted earnings per share is based on the profit after tax and on the following weighted average number of shares in issue.


6 months ended

6 months ended

Audited

Year ended


30/06/2016

30/06/2015

31/12/2015


£

£

£





Reported profit for the financial period

77,989

339,802

529,822






Number

Number

Number





Weighted average number of ordinary shares

76,471,557

76,471,557

76,471,557





Dilutive effect of outstanding share options and warrants

-

-

-





Weighted average number of ordinary shares for diluted earnings per share

76,471,557

76,471,557

76,471,557





Basic earnings per share (pence)

0.1p

0.4p

0.7p

Diluted earnings per share (pence)

0.1p

0.4p

0.7p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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