Source - RNS
RNS Number : 1413L
Immedia Group PLC
29 September 2016
 

29 September 2016

 

IMMEDIA GROUP PLC

(AIM: IME)

("Immedia" or the "Group")

 

INTERIM RESULTS 2016

 

Immedia (AIM: IME), a supplier of multi-media content and digital solutions for leading brands and global businesses, announces its interim results for the six months ended 30 June 2016.

 

Key points:

 

·      Total comprehensive loss reduced to £0.09 million (H1 2015: £0.14 million) on reduced revenue of £1.06 million, (H1 2015: £1.37 million)

 

·      Further 12 month contract with BT signed in March for Reach 365, a 24/7 radio station for Openreach engineers delivered through Immedia's innovative mobile app
 

·      Subway® contract signed in April making Subway® Radio available to franchisees in the UK and Republic of Ireland, France, Germany, The Netherlands, Finland and Sweden:

-  highly successful initial roll-out with over 1500 stores signed up in the first 10 weeks
-  Subway® Radio subsequently made mandatory in UK and Ireland                                            

 

·      New senior management appointed within the business

 

·      Proven offering with clear focus on new business development in line with strategy.

 

Post the period end

 

·      Acquisition of AVC Immedia completed in September 2016, strengthening the Group's combined product and service offering, with new client opportunities in our target sectors

 

·      Significant contract win announced with a major UK retailer

 

·      Advanced discussions for new channel launches with two other major brands

 

Bruno Brookes, CEO of Immedia, said:

 

"We now have an impressive combination of digital services, supporting an even stronger range of multi-media audience engagement tools for clients in our primary target sectors of retail, workforce, sport and education. Following the acquisition of AVC Immedia, we are also developing an exciting new generation of services for a combined pipeline of prospects.

 

"Whilst the expiry of some long term contracts, such as Lloyds Bank, has affected the first half of the year, we expect revenue in the second half of the year to improve, even before the addition of AVC Immedia. As I have stated previously, enquiry levels in the existing Immedia business are strong, as they are in AVC Immedia, and the Board is confident that the outlook for the business is positive."

 

For further information please contact:

 

Immedia Group Plc

Bruno Brookes - Chief Executive Officer

Tel:   +44 (0) 1635 556200

SPARK Advisory Partners Limited (NOMAD)

Mark Brady/Neil Baldwin

Tel:  +44 (0) 203 368 3550

SI Capital Ltd (Broker)

Nick Emerson/Andy Thacker

Tel:  +44 (0) 1483 413500

Hudson Sandler

Catriona Valentine / Alex Clelland

Tel:  +44 (0) 207 796 4133

 

This announcement contains information which, prior to its disclosure, was inside information for the purposes of the Market Abuse Regulation.

 

About Immedia Group Plc - www.immediaplc.com

 

Immedia Group Plc is a multi-media content and digital solutions provider to global businesses and organisations, who are investing in internal and/or Brand communications. Our interactive audio - visual channels deliver original and relevant content, via Immedia's Dreamstream platform, to a client's workforce and its customer base. Each channel is supported with powerful data analytics tools, which monitor audience activity and provide data to enable us to enhance audience engagement.

 

The Group also creates original video content, 3D & 4D animation, app and web development, as well as supplying and installing Audio Visual equipment. Immedia's clients include, amongst others, HSBC, Subway Europe, Superdrug, BT Openreach, O2, FIFA, Shell and BP.

 

 

 

Financial Highlights

 

 

Restated

 

 

Unaudited 

Half year to 

 30 June 2016 

Unaudited 

Half year to 

 30 June 2015 

Audited 

Year to

31 December 2015

 

 

 

 

Revenue

£1,055,464

£1,373,657

£2,366,293

 

 

 

 

EBITDA

£15,671

£116,418

£54,767

 

 

 

 

Results from operating activities

£(14,513)

£96,035

£6,274

 

 

 

 

(Loss)/profit before income tax

£(11,575)

£95,308

£5,379

 

 

 

 

Income tax

-

-

£(100,060)

 

 

 

 

(Loss)/profit for the period

£(11,575)

£95,308

£(94,681)

 

 

 

 

Net fair value loss on available for sale assets

£(82,500)

£(239,700)

£(352,200)

 

 

 

 

 

 

 

 

Total comprehensive loss for the period

£(94,075)

£(144,392)

£(446,881)

 

 

 

 

(Loss)/earnings per share - basic (pence)

(0.08)

0.69

(0.69)

(Loss)/earnings per share - diluted (pence)

(0.08)

0.68

(0.69)

 

 

 

 

Cash and cash equivalents

£338,101

£526,438

£353,435

 

 

 

 

Net cash

£338,101

£492,624

£344,664

 

 

 

 

CHIEF EXECUTIVE'S REVIEW

 

The financial results for the first half of 2016 reflect mixed fortunes of the Group. Whilst contracts with Lloyds Bank and Game expired we have since made excellent progress with our strategy to launch new channels to a broader client base within four strategic business sectors: retail, workforce, sport and education. We are at various stages of business development in all of these sectors.

 

As the digital landscape continues to evolve, brands and businesses are seeking to establish every opportunity to communicate with their audiences in the most cost effective and engaging way. As content is king and relevance is key, Immedia has evolved its delivery to spaces and places, together with rapid developments to its mobile offering. I firmly believe this to be one of our most innovative and exciting areas of growth.

 

Results

 

Revenue reduced to £1,055,464 (H1 2015: £1,373,657), a decrease of 23% on the corresponding period in 2015, generating EBITDA of £15,671 (H1 2015: £116,418). These reductions resulted from the expiration of our contracts with Game and Lloyds Banking Group (in June 2015) and a slower than anticipated conversion of our new business pipeline.

 

The Company has net cash of £0.34 million at the period end.

 

Immedia's investment in Audioboom Group plc, the social media platform business, (AIM: BOOM), showed significant fluctuations in value during the period.  In accordance with our IFRS accounting regime, a loss on revaluation of investments of £82,500 has been reported in the period (H1 2015: restated loss of £239,700).  Cumulatively, the Group remains in profit on its investment.

 

Operations

 

We have created a stronger and broader product and service offering over the last 18 months and our strategy is firmly fixed in the four key areas of business mentioned earlier.

 

We have recently appointed Steve King as COO to strengthen our operations in readiness for growth. Steve is a media executive with over 20 years of board level experience and a proven track record in the radio business.  Steve was formerly Regional Managing Director (North West and Midlands) of Bauer Media.

 

In March 2016, the Group successfully renewed its ground-breaking contract with BT Group plc for the supply of Reach 365, an interactive, real time, digital radio channel available to the 30,000 employees in its local network business, Openreach, using Immedia's mobile audio streaming platform.  This highly scalable white label streaming platform enables large, geographically dispersed companies to engage directly with their employees and customers, using dedicated audio content streamed directly to their buildings, mobile phones and other devices.

 

The Group's most notable achievement in H1 was the launch of SUBWAY® Radio.  In April we secured a major five-year contract to supply branded in-store music and marketing channels known as SUBWAY® Radio to franchisees in the UK and Republic of Ireland, France, Germany, The Netherlands, Finland and Sweden. The Group is also providing in-store equipment.  Immedia has designed and delivered country specific versions of SUBWAY® Radio. Each of these channels, delivered via Immedia's Dreamstream™ network, features a mixture of relevant music, branding and 'on-air' SUBWAY® marketing messages to tie in with national and regional campaigns.

 

SUBWAY® Radio has been adopted rapidly in a number of European territories. In the 10 weeks from launch to the end of H1, over 1500 stores were connected.  Following the highly successful rollout subscription to the service for franchisees in the UK and Ireland is now mandatory. Rollouts of separate channels continue in Germany, the Netherlands, Finland and Sweden with new territories in development.

 

Post-period end, we announced that our contract with Arcadia Group Ltd will expire in December 2016.   We have also announced this week that we have signed a significant three year contract with a major UK retailer, which commences next month. We believe that the combination of this new contract and the better than expected take-up by Subway franchisees and other strong pipeline prospects will more than offset losses in the period.

 

Post-period end

 

Acquisition

 

Earlier this month, we were delighted to announce the post period end acquisition of the business and certain assets of  AVC Media Enterprises Ltd and AVC Media Holdings Ltd (now AVC Immedia), based in Aberdeen, for a cash consideration of £200,000. AVC Immedia is a media and communications business and digital technology specialist, supplying a range of services that include audio visual solutions, video conferencing, event production/management, video and 3D animation, web and graphic design and App development. The business is active in many sectors but is particularly well known in oil & gas, sport and tourism. Its past and current clients include leading brands and global businesses such as FA, FIFA, Shell, BP, Aker, SKY and BT Sport.

 

AVC Immedia has already secured new contracts with FIFA since its acquisition and the Board looks forward to delivering further progress reports on this new addition to the Group.

 

Significant contract win

 

The Group was very pleased to announce the signing of a significant three year contract with a major UK retailer this week, which commences next month. We believe that the combination of this new contract and the better than expected take-up by Subway franchisees and other strong pipeline prospects will more than offset losses in the period.

 

We announced that our contract with Arcadia Group Ltd will expire in December 2016.

 

Outlook

 

Immedia is in advanced discussions with a number of significant UK retailers and organisations who are keen to develop branded communications channels, one of which we have signed this week. AVC Immedia is already contributing to the Group's revenue.  In addition to the recently announced FIFA contracts, it is working on a 3D animation project for New York based SAFWAY on a two year contract as well as other animation projects with Technip and Oceaneering. We are also working with TOTAL, William Grant & Sons, The Wood Group and Maersk on audio visual projects.

 

The Board anticipates that revenue from our existing business will be stronger in the second half of the year and this will be augmented by the addition of AVC Immedia.  We are managing costs carefully as we integrate the businesses to develop a combined offering to a wider range of both existing and prospective clients.

 

I believe that Immedia's new offering is "timely", as businesses and organisations actively seek to engage with key audiences using a broad range of digital content solutions. We have built an impressive portfolio of products and services which are benefitting new business development.  Given the success of Reach 365 and SUBWAY® Radio and the current pipeline, the Board is confident of delivering significant progress in the short to mid-term.

 

Bruno Brookes

Chief Executive

 

 

 

 

 

Consolidated statement of profit or loss

 

 

 

 

 

 

Restated

 

 

 

 

Note

Unaudited

Half year to

30 June 16

£ 

 

Unaudited

Half year to

30 June 15

£ 

 

Audited

Year ended

31 Dec 15

£ 

 

 

 

 

 

 

 

Revenue

 

1,055,464

 

1,373,657

 

 2,366,293

 

 

 

 

 

 

 

Cost of sales

 

(528,074)

 

(639,001)

 

(1,119,619)

 

 

 

 

 

 

 

Gross profit

 

527,390

 

734,656

 

1,246,674

 

 

 

 

 

 

 

Administrative expenses

 

(541,903)

 

(638,621)

 

(1,240,400)

 

 

 

 

 

 

 

(Loss)/profit from operations

 

(14,513)

 

96,035

 

6,274

 

 

 

 

 

 

 

Finance income

 

3,444

 

5,832

 

11,481

 

 

 

 

 

 

 

Finance cost

 

(506)

 

(6,559)

 

(12,376)

 

 

 

 

 

 

 

(Loss)/profit before tax

 

(11,575)

 

95,308

 

5,379

 

 

 

 

 

 

 

Tax expense

4

-

 

-

 

(100,060)

 

 

 

 

 

 

 

(Loss)/profit for the period

 

(11,575)

 

95,308

 

(94,681)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/earnings per share

 

 

 

 

 

 

Basic (pence)

15

(0.08)p

 

0.69p

 

(0.69)p

 

 

 

 

 

 

 

Diluted (pence)

15

(0.08)p

 

0.68p

 

(0.69)p

 

 

 

 

 

Consolidated statement of profit or loss and other comprehensive income

 

 

 

 

 

Restated

 

 

 

 

Unaudited

Half year to

30 June 16

£ 

 

Unaudited

Half year to

30 June 15

£ 

 

Audited

Year ended

31 Dec 15

£ 

 

 

 

 

 

 

 

(Loss)/profit for the period

 

(11,575)

 

95,308

 

(94,681)

 

 

 

 

 

 

 

Items that may be reclassified subsequently to profit or loss

 

 

 

 

 

 

 

 

 

 

 

 

 

Net fair value loss on available for sale assets during the period

 

(82,500)

 

(239,700)

 

(352,200)

 

 

 

 

 

 

 

Total comprehensive loss for the period

 

(94,075)

 

(144,392)

 

(446,881)

 

 

 

 

 

 

 

 

 

Consolidated balance sheet

 

 

 

 

 

 

Restated

 

 

 

 

Note

Unaudited 

as at 

30 June 16 

 

£ 

 

Unaudited 

as at 

30 June 15 

 

£ 

 

Audited

as at

 31 Dec 15

 

£ 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Property, plant and equipment

5

184,393

 

172,804

 

211,481

Intangible assets

6

201,045

 

202,787

 

201,694

Deferred tax assets

 

60,700

 

160,760

 

60,700

Available for sale assets

9

172,500

 

367,500

 

255,000

Total non-current assets

 

618,638

 

903,851

 

728,875

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Inventories

7

54,147

 

97,101

 

89,621

Trade and other receivables

8

944,793

 

617,406

 

859,610

Prepayments

 

124,539

 

117,583

 

85,360

Cash and cash equivalents

10

338,101

 

526,438

 

353,435

Total current assets

 

1,461,580

 

1,358,528

 

1,388,026

 

 

 

 

 

 

 

Total assets

 

2,080,218

 

2,262,379

 

2,116,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Share capital

11

1,455,684

 

1,455,684

 

1,455,684

Share premium

 

3,586,541

 

3,586,541

 

3,586,541

Merger reserve

 

2,245,333

 

2,245,333

 

2,245,333

Share based payment reserve

 

4,578

 

4,578

 

4,578

Investment valuation reserve

 

82,500

 

277,500

 

165,000

Retained losses

 

(6,350,436)

 

(6,145,959)

 

(6,335,948)

Total equity

 

1,024,200

 

1,423,677

 

1,121,188

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

Trade and other payables

14

34,449

 

-

 

103,347

Provisions

 

14,063

 

-

 

14,063

Total non-current liabilities

 

48,512

 

-

 

117,410

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Borrowings

12

-

 

7,500

 

-

Finance leases

13

-

 

26,314

 

8,771

Trade and other payables

14

897,453

 

608,725

 

732,891

Deferred income

 

110,053

 

196,163

 

136,641

Total current liabilities

 

1,007,506

 

838,702

 

878,303

Total liabilities

 

1,056,018

 

838,702

 

995,713

Total equity and liabilities

 

2,080,218

 

2,262,379

 

2,116,901

 

 

 

 

 

 

 

 

 


 

 

Consolidated statement of changes in equity

 

 

 

Attributable to equity shareholders of the Company

 

 

Share capital

 

 

£ 

Share Premium account

 

£ 

Merger reserve

 

 

£ 

Share based payment reserve

 

 £

Investment revaluation reserve

£

Retained losses

 

 

£ 

Total equity

 

 

£ 

 

 

 

 

 

 

 

 

Total equity at 30 June 2016 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 January 2016

1,455,684

3,586,541

2,245,333

4,578

165,000

(6,335,948)

1,121,188 

Sale of EBT shares on exercise of share options

-

-

-

-

-

2,597

2,597

Purchase of own shares by EBT

-

-

-

-

-

(5,510)

(5,510)

Transactions with owners

-

-

-

-

-

(2,913)

(2,913)

Loss for the period

-

-

-

-

-

(11,575)

(11,575)

Other comprehensive income for the period:

 

 

 

 

 

Net fair value loss on available for sale financial assets

-

-

-

-

(82,500)

-

(82,500)

Total comprehensive loss for the period

-

-

-

-

(82,500)

(11,575)

(94,075)

Balance at 30 June 2016

1,455,684

3,586,541

2,245,333

4,578

82,500

(6,350,436)

1,024,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity at 30 June 2015 (unaudited) (Restated)

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 January 2015

1,455,684

3,586,541

2,245,333

4,578

517,200

(6,241,267)

1,568,069 

Profit for the period

-

-

-

-

-

95,308

95,308

Other comprehensive income for the period:

 

 

 

 

 

Net fair value loss on available for sale financial assets

 

-

 

-

 

-

 

-

 

(239,700)

 

-

 

(239,700)

Total comprehensive loss for the period

 

-

 

-

 

-

 

-

 

(239,700)

 

95,308

 

(144,392)

Balance at 30 June 2015

1,455,684

3,586,541

2,245,333

4,578

277,500

(6,145,959)

1,423,677

 

 

 

Consolidated statement of changes in equity continued

 

 

Attributable to equity shareholders of the Company

 

 

Share capital

 

 

£ 

Share Premium account

 

£ 

Merger reserve

 

 

£ 

Share based payment reserve

 

 £

Investment revaluation reserve

£

Retained losses

 

 

£ 

Total equity

 

 

£ 

Total equity at 31 December 2015 (audited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 January 2015

1,455,684

3,586,541

2,245,333

4,578

517,200

(6,241,267)

1,568,069 

Loss for the year

-

-

-

-

-

(94,681)

(94,681)

Other comprehensive income for the year:

 

 

 

 

 

Net fair value loss on available for sale financial assets

 

-

 

-

 

-

 

-

 

(352,200)

 

-

 

(352,200)

Total comprehensive loss for the year

 

-

 

-

 

-

 

-

 

(352,200)

 

(94,681)

 

(446,881)

Balance at 31 December 2015

1,455,684

3,586,541

2,245,333

4,578

165,000

(6,335,948)

1,121,188

 

 

 

 

 

 

 

 

 

 

Consolidated statement of cash flows

 

 

 

 

 

 

Restated

 

 

 

 

Note

Unaudited 

Half Year to 

30 June 16

£ 

 

Unaudited 

Half Year to 

30 June 15 

£ 

 

Audited

Year ended 

31 Dec 15 

£ 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

(Loss)/profit for the period before income tax

 

(11,575)

 

95,308

 

5,379

Adjustments for:

 

 

 

 

 

 

Depreciation and amortisation charges

 

30,184

 

20,384

 

48,493

Finance income

 

(3,444)

 

(5,832)

 

(11,481)

Finance cost

 

506

 

6,559

 

12,376

(Increase)/decrease in trade and other receivables and prepayments

 

 

(124,362)

 

 

278,901

 

 

68,919

Decrease/(increase) in inventories

 

35,474

 

(20,578)

 

(13,098)

Increase/(decrease) in trade and other payables and deferred income

 

 

69,074

 

 

(29,322)

 

 

138,669

Increase in provisions

 

-

 

-

 

14,063

Net cash from operating activities

 

(4,143)

 

345,420

 

263,320

 

 

 

 

 

 

 

Taxation

 

 

 

 

 

 

Taxation

 

-

 

-

 

-

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

Interest received

 

3,444

 

5,832

 

11,481

Acquisition of property, plant and equipment

5

(2,445)

 

(55,806)

 

(121,499)

Acquisition of intangible assets

6

-

 

(250)

 

(250)

Net cash from investing activities

 

999

 

(50,224)

 

(110,268)

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

Repayment of bank loan

 

-

 

(11,250)

 

(18,750)

Repayment of finance leases

 

(8,771)

 

(17,543)

 

(35,084)

Interest paid

 

(506)

 

(6,559)

 

(12,376)

Amounts repaid under invoice financing facility

 

-

 

(57,751)

 

(57,752)

Sale of EBT shares on exercise of share options

 

2,597

 

-

 

-

Purchase of own shares for EBT

 

(5,510)

 

-

 

-

Net cash from financing activities

 

(12,190)

 

(93,103)

 

(123,962)

 

 

 

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

 

 

(15,334)

 

 

202,093

 

 

29,090

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

353,435

 

324,345

 

324,345

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

10

 

338,101

 

 

526,438

 

 

353,435

 

 

 

Notes to the condensed consolidated interim financial statements

 

 

1. Reporting entity

 

Immedia Group Plc (the "Company") is a company incorporated and domiciled in the United Kingdom.  The address of the Company's registered office and its principal place of business is 7-9 The Broadway, Newbury, Berkshire RG14 1AS.

 

The condensed consolidated interim financial statements of the Company as at and for the half year ended 30 June 2016 comprise the Company and its subsidiaries (together referred to as the "Group").  The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2015 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under Section 498(2) of the Companies Act 2006. The consolidated financial statements of the Group as at and for the year ended 31 December 2015 are available at http://www.immediaplc.com/plc/annual-reports/

 

The Group primarily is involved in marketing and communication services through music, radio and screen based media together with the supply, installation and maintenance of associated equipment.

 

 

2. Basis of preparation

 

These consolidated financial statements for the half year ended 30 June 2016 are unaudited.  They have been prepared and approved by the directors following the recognition and measurement principles of International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs"); they do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2015.

The unaudited financial statements for the comparative period of six months to 30 June 2015 have been restated to include the effect of restatements in the audited accounts to 31 December 2015. These included the reclassification of the investment in Audioboom Plc as available-for-sale, which resulted in the 2015 fair value losses being disclosed in the Consolidated Statement of Other Comprehensive Income.

The effect of the restatement has been to change the loss before tax in the Consolidated Statement of Profit or Loss for the six months to 30 June 2015 from £ (144,392) to a profit of £95,308 and to change the net fair value loss on available for sale assets in the Consolidated Statement of Profit or Loss and Other Comprehensive Income from £Nil to £(239,700). The total comprehensive income for the six months to 30 June 2015 remains unchanged at a loss of £(144,392). Earnings per share (eps) for the six months to 30 June 2015 have been restated following the removal from the calculation of the net fair value loss of £239,700 and are based on the after tax profit of £95,308. Basic eps is restated from (1.052) pence loss to 0.69 pence earnings and diluted eps from (1.052) pence loss to 0.68 pence earnings.

Other changes in presentation comprise the classification of available for sale assets with non-current assets in the Consolidated Balance Sheet. Deferred taxation has been restated on a net basis and is classified with non-current assets in the Consolidated Balance Sheet. An investment valuation reserve has been included in Equity (see Consolidated Statement of Changes in Equity).

 

On the basis of current financial projections prepared up to the end of 2017, recent news of new contracts and of contract renewals, continuing improvements in management of costs, and ongoing availability of facilities, the Directors are satisfied that the Group has adequate resources to continue in operation for the foreseeable future and consequently the financial statements have been prepared on the going concern basis.

 

The interim financial statements were approved by the Board of Directors on 28 September 2016.

 

 

Notes to the condensed consolidated interim financial statements continued

 

 

3. Significant accounting policies

 

The accounting policies set out in detail in note 3 of the Group's consolidated financial statements to 31 December 2015 have been applied consistently to these unaudited financial statements to 30 June 2016, including:

 

(a) Revenue

Revenue represents the amounts receivable by the Group for the provision of its goods and services, excluding value added tax.  Revenue from production services comprise the broadcasting of live and as live radio programmes to customers' premises using appropriate technologies, together with the production of advertising content for use in those programmes. Revenue from these services is billed on time based subscriptions and recognised on the date of broadcast.  Revenue from equipment sales is recognised on the earlier of date of delivery and configuration, or when risk and rewards pass to the customer; revenue from content delivery and equipment maintenance services is billed on time based subscriptions and is recognised monthly on completion.

 

To the extent that invoices are raised to a different pattern than revenue recognition described above, appropriate adjustments are made through deferred and accrued income to account for revenue when the underlying service has been performed or goods have been transferred to the customer.

 

(b) Financial instruments: financial assets

Investments other than investments in subsidiaries are classified as either held-for-trading or as available-for-sale at initial recognition and this designation is re-evaluated at each period end date. At the period end date all such investments are classified as available-for-sale.

Available-for-sale investments are initially measured at fair value, which ordinarily equates to cost, including transaction costs. At subsequent reporting dates available-for-sale investments are measured at fair value or at cost where fair value is not readily measurable.

Gains and losses arising from changes in fair value are recognised in other comprehensive income and taken to the investment revaluation reserve until the investment is disposed of or is determined to be impaired, at which time the accumulated fair value adjustments recognised in equity are included in the statement of profit or loss as 'gains and losses from investments'.

 

 

 

4. Income tax credit in the statement of profit or loss

 

 

Unaudited

as at

30 June 16

£

 

Unaudited

as at

30 June 15

£

 

Audited

as at

31 Dec 15

£

Current tax

 

 

 

 

 

Current period

-

 

-

 

-

 

 

 

 

 

 

Deferred tax expense

 

 

 

 

 

Deferred tax

-

 

-

 

100,060

 

 

 

 

 

 

Total tax expense in consolidated statement of profit or loss

-

 

-

 

100,060

 

The utilisation of historic tax losses and excess management charges is expected to eliminate all potential tax charges for the period to 30 June 2016 (in 2015 the deferred tax expense arose from the reduction in value of deferred tax assets following losses from financial assets available for sale during the year).
 

Notes to the condensed consolidated interim financial statements continued

 

 

5. Property, plant and equipment

 

 

Plant &

Fixtures & 

Network

Total 

 

equipment

fittings 

equipment

 

 

£

£ 

£

£ 

 

 

 

 

Cost

 

 

 

 

At 1 January 2016

828,684

592,882

187,384

1,608,950

Additions

192

2,253

-

2,445

 

             

             

                  

                 

At 30 June 2016

828,876

595,135

187,384

1,611,395

 

             

             

                  

                 

Depreciation and impairment losses

 

 

 

 

At 1 January 2016

810,141

399,944

187,384

1,397,469

Charge for period

3,434

26,099

-

29,533

 

             

             

                 

                 

At 30 June 2016

813,575

426,043

187,384

1,427,002

 

             

             

                 

                 

Carrying amounts

 

 

 

 

Unaudited at 30 June 2016

15,301

169,092

-

184,393

 

             

             

                  

                 

Audited at 31 December 2015

18,543

192,938

-

211,481

 

             

             

                  

                 

Unaudited at 30 June 2015

21,947

150,857

-

172,804

 

             

             

                  

                 

 
Notes to the condensed consolidated interim financial statements continued

 

 

6. Intangible assets

 

 

Customer

Content

Goodwill

Total

 

  relationships

Delivery

 

 

 

£

£

£

£

 

 

 

 

 

Cost

 

 

 

 

At 1 January 2016

566,880

51,385

1,173,310

1,791,575

Additions in period

-

-

-

-

At 30 June 2016

566,880

51,385

1,173,310

1,791,575

 

 

 

 

 

Amortisation and impairment losses

 

 

 

 

At 1 January 2016

566,880

49,001

974,000

1,589,881

Charge for period

-

649

-

649

At 30 June 2016

566,880

49,650

974,000

1,590,530

 

 

 

 

 

Carrying amounts

 

 

 

 

Unaudited at 30 June 2016

-

1,735

199,310

201,045

 

 

 

 

 

Audited at 31 December 2015

-

2,384

199,310

201,694

 

 

 

 

 

Unaudited at 30 June 2015

-

3,477

199,310

202,787

 

 

 

 

 

 

There were no indications of impairment of intangible assets at 30 June 2016 and the annual impairment tests will be carried out at the year end.

 

 

 

 

7. Inventories

 

 

Unaudited

as at

30 June 16

£

 

Unaudited

as at

30 June 15

£

 

Audited

as at

31 Dec 15

£

 

 

 

 

 

 

Work in progress

29,101

 

19,090

 

25,831

Finished goods

25,046

 

78,011

 

63,790

 

54,147

 

97,101

 

89,621

             

 

The inventory expense included in cost of sales in the consolidated statement of profit or loss was £104,490 (30 June 2015: £139,470; 31 December 2015: £38,837). Impairment charges for obsolete and slow moving inventories were £Nil (30 June 2015: £5,391; 31 December 2015: £4,896).
 
Notes to the condensed consolidated interim financial statements continued

 

 

8. Trade and other receivables

 

 

Unaudited

as at

30 June 16

£

 

Unaudited

as at

30 June 15

£

 

Audited

as at

31 Dec 15

£

 

 

 

 

 

 

Trade receivables (i)

828,787

 

443,628

 

518,694

Accrued contract income

115,006

 

131,528

 

339,916

Other debtors

1,000

 

1,000

 

1,000

 

944,793

 

576,156

 

859,610

At 30 June 2016 trade receivables are shown after a provision for impairment of £3,580 (30 June 2015: £3,580; 31 December 2015: £3,580) arising from slow moving debts and disputed charges.

(i) At 30 June 2016 the total of trade receivables past due, net of provision for impairment, was as follows:

 

Unaudited

as at

30 June 16

£

 

Unaudited

as at

30 June 15

£

 

Audited

as at

31 Dec 15

£

 

 

 

 

 

 

Up to 3 months past due

66,350

 

58,782

 

109,013

Over 3 months past due (i)

399,386

 

72,573

 

176,860

(i) Cash collections for debts over 3 months past due improved in the third quarter of 2016.

 

 

9. Other short term financial assets

 

In March 2014 the Group invested £90,000 in the purchase of 6,000,000 shares in Audioboom Group plc, an AIM-quoted audio social media platform, as part of the Group's strategy to broaden its digital marketing and communications services.

The investment has been designated as available-for-sale with fair value changes recognised in other comprehensive income (see note 3(b) above). At 30 June 2016 the fair value of the investment was £172,500 with a current period fair value loss of £82,500 recognised in other comprehensive income (30 June 2015 fair value £367,500 with fair value loss of £239,700 recognised in other comprehensive income; 31 December 2015 fair value £255,000 with fair value loss of £352,200 recognised in other comprehensive income).

As at the date of approval of this report, the investment represents c.1.12% of Audioboom Group plc's shares in issue and has a fair value of £150,000.

 

 

 

Notes to the condensed consolidated interim financial statements continued

 

 

10. Cash and cash equivalents

 

 

Unaudited

as at

30 June 16

£

 

Unaudited

as at

30 June 15

£

 

Audited

as at

31 Dec 15

£

 

 

 

 

 

 

Bank balances

5,634

 

66,930

 

11,627

Call deposits

332,467

 

454,078

 

341,808

Credit balance on invoice finance account

-

 

5,430

 

-

Cash and cash equivalents

338,101

 

526,438

 

353,435

 

Cash and cash equivalents comprise cash balances and short-term call deposits.

 

 

11. Share Capital

 

 

Unaudited

as at

30 June 16

£

 

Unaudited

as at

30 June 15

£

 

Audited

as at

31 Dec 15

£

 

 

 

 

 

 

Authorised

 

 

 

 

 

36,000,000 Ordinary shares of 10 pence each

3,600,000

 

3,600,000

 

3,600,000

 

 

 

 

 

 

Allotted, called up and fully paid

 

 

 

 

 

14,556,844 Ordinary shares of 10 pence each

1,455,684

 

1,455,684

 

1,455,684

 

 

 

 

 

 

 

There are no restrictions on the transfer of shares in Immedia Group Plc. All shares carry equal voting rights.

 

 

12. Borrowings

 

 

Unaudited

as at

30 June 16

£

 

Unaudited

as at

30 June 15

£

 

Audited

as at

31 Dec 15

£

 

 

 

 

 

 

Current

 

 

 

 

 

Bank loan (secured) (i)

-

 

7,500

 

-

 

 

 

 

 

 

 

(i) In 2015 a two-year loan arranged with HSBC Bank Plc to part finance the conversion of ground floor space into offices in the Newbury studios building was fully repaid. The loan was secured by floating charge on the assets of Immedia Broadcast Limited.

(ii) The Group has an invoice financing facility with HSBC Invoice Financing (UK) Limited under which advances up to £250,000 are secured by debenture on Immedia Broadcast Limited's assets. There were no borrowings under this facility at 30 June 2016 (30 June and 31 December 2015: £nil).

 

 

 

Notes to the condensed consolidated interim financial statements continued

 

 

13. Finance lease arrangements

 

Certain equipment supplied to customers under contract was financed under finance lease arrangements with Aurora Leasing Limited under which advances were secured by debenture on Immedia Broadcast Limited's assets. The lease agreement was fully repaid at the end of its three-year term in March 2016. The equipment supplied was recognised as a sale in accordance with the Group's revenue recognition accounting policy as detailed in note 3(a) above; there are therefore no assets held under finance lease within Property, plant and equipment (note 5).

 

Future minimum finance lease payments were as follows:

 

 

Falling due:

Within 1 year

 

£

 

 

Unaudited at 30 June 2016

 

Net present values

-

 

                

Audited at 31 December 2015

 

Net present values

8,771

 

                

Unaudited at 30 June 2015

 

Net present values

26,314

 

                

 

The lease agreement included fixed payments and a purchase option which was exercised at the end of the three-year lease term. The agreement was non-cancellable and did not contain any further restrictions.

 

 

Notes to the condensed consolidated interim financial statements continued

 

 

14. Trade and other payables

 

 

Unaudited

as at

30 June 16

£

 

Unaudited

as at

30 June 15

£

 

Audited

as at

31 Dec 15

£

 

 

 

 

 

 

Current

 

 

 

 

 

Trade payables (i)

412,450

 

142,713

 

231,507

Other taxation & social security

101,680

 

123,457

 

83,576

Non-trade payables and accrued expenses (ii)

383,323

 

342,555

 

417,808

 

897,453

 

608,725

 

732,891

 

 

 

 

 

 

Falling due after more than one year

 

 

 

 

 

Trade payables

34,449

 

-

 

103,347

 

 

 

 

 

 

(i)  At 30 June 2016 there were Euro denominated liabilities totalling €330 (30 June 2015: €670; 31 December 2015: €nil).

(ii) Included within Non-trade payables and accrued expenses are uninvoiced charges for servicing, maintenance and licensing costs for the Group's music and radio networks, plus accruals for legal and professional fees.

 

 

15. Earnings per share

 

 

Unaudited

as at

30 June 16

Number

 

Unaudited

as at

30 June 15

Number

 

Audited

as at

31 Dec 15

Number

 

 

 

 

 

 

Weighted average number of shares in issue

14,556,844 

 

14,556,844 

 

14,556,844 

Less weighted average number of own shares

(832,374)

 

(832,374)

 

(832,374)

Weighted average number of shares in issue for basic earnings per share

13,724,470

 

13,724,470

 

13,724,470 

 

 

The basic and diluted earnings per share are calculated using the after tax loss attributable to equity shareholders for the financial period of £11,575 (30 June 2015: restated profit £95,308; 31 December 2015: loss £94,681) divided by the weighted average number of Ordinary shares in issue in each of the relevant periods: 30 June 2016: 13,724,470 shares (30 June and 31 December 2015: 13,724,470 shares).  For the period to 30 June 2016 and the year to 31 December 2015, and in accordance with IAS 33, the diluted loss per share is stated as the same amount as basic as there is no dilutive effect.

 

The weighted number of shares used for the diluted earnings per share is calculated after reflecting the outstanding share options at the period end.

 

 

 

 

 

In accordance with Rule 26 of the AIM Rules for Companies, this interim financial statement will be available on the company's website at www.immediaplc.com/plc/annual-reports/


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

Related Charts

Immedia Group (IME)

0.00p (0.00%)
delayed 18:15PM