Share Name Share Symbol Market Type Share ISIN Share Description
Cellcast Plc LSE:CLTV London Ordinary Share GB00B0GWFM68 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.05p +2.00% 2.55p 2.40p 2.70p 2.55p 2.50p 2.50p 200,000 16:14:40
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Media 12.1 0.7 0.8 3.2 1.98

Cellcast plc Half-year Report

25/09/2017 7:00am

UK Regulatory (RNS & others)


Cellcast (LSE:CLTV)
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TIDMCLTV

RNS Number : 6357R

Cellcast plc

25 September 2017

Cellcast plc

("Cellcast" or the "Company")

Interim results for the six months ended 30 June 2017

The Board of Cellcast plc (AIM: CLTV) announces the group's interims results for the six months ended 30 June 2017.

Highlights

   --    UK interactive broadcast revenues of GBP5.5 million (H1 2016: GBP5.3 million) 
   --    Revenues from newly launched overseas gaming services of GBP300,000 (H1 2016: GBP320,000) 
   --    Loss before tax of GBP145,000 for the period (H1 2016: profit of GBP78,000) 
   --    Loss per share of 0.2p (H1 2016: earnings per share of 0.1p) 

-- Board changes- Samuel Malin appointed as a Non-Executive Director and Craig Gardiner appointed as Chief Executive officer, strengthening the composition of the board.

Craig Gardiner, CEO of Cellcast plc, commented:

"Revenues in our core broadcast sector have continued to decline. Nevertheless, this decline has been offset by growth in online revenues, albeit these have come at an increased cost. Steady income derived from consultancy agreements has also helped fill the gap left by the decline of the broadcast derived revenues."

"The commencement of the renegotiated supplier agreement at the beginning of August has led to a substantial and material reduction in costs, giving us increased flexibility to deal with the challenging marketplace."

For further information:

 
 Cellcast plc 
 Craig Gardiner, CEO       Tel: +44 (0) 203 
                            376 9420 
 craig@cellcast.tv         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 2017 were GBP5.5 million, an increase of 2% on the same period last year. Revenue from the overseas gaming consultancy services represented GBP300,000. Gross profit for the period amounted to GBP89,000 (H1 2016: GBP378,000).

Operating costs for the period were GBP256,000 (H1 2016: GBP343,000).

Overall, the group's operations generated a loss before tax of GBP145,000. This compares to a profit before tax of GBP78,000 for the period ending 30 June 2016.

The cost of sales has risen by 7% from GBP5,285,847 to GBP5,680,171. This increase comes from the growth in online revenues that carry more direct costs.

The post-tax loss for the period amounted to GBP145,000. This represents negative earnings per share of 0.2p. By comparison, during the period to 30 June 2016 the group achieved a net profit of GBP78,000 and earnings per share of 0.1p.

The group's cash and cash equivalents at 30 June 2017 stood at GBP862,000 compared to a balance of GBP1,189,000 at 30 June 2016.

The Company's treasury management scheme and investment strategy (the Lexinta Fund, based in Zurich) as reported in the last annual accounts amounted to GBP510,920. In the period, the decision was taken to redeem the investments and bring the cash back into the business, as the Fund Manager had decided it was time to liquidate the entire portfolio. The funds due back to the group are included in debtors as at 30 June 2017. The company expects to receive the remitted funds before the year-end. This will further strengthen the balance sheet of the company.

Outlook

The first six months of 2017 continued to be challenging. Revenues from Cellcast's core Voice and SMS business have continued to decline as viewing habits continue to change. However, the group has had some growing success in driving TV viewers onto the web where the service offering can be broadened. Revenues derived from the web now amount to 70% of those derived from the core broadcast business with the caveat that such revenues come with lower margins.

Consultancy and management services to companies in the lottery, gaming and entertainment sector in East Africa have provided a continuing source of revenue and both service and geographic diversification.

Costs have been significantly reduced with the new supplier agreement which was announced on 27 July 2017 and which came into effect on 1 August 2017. The new DMOL (Digital Television Multiplex Operators Ltd) EPG (Electronic Program Guide) which came into effect on 3 August saw the group's TV channels move to different viewing locations. The group will continue to monitor any impacts on the revenues that this may have in the second half of the year.

Craig Gardiner

Chief Executive Officer

25 September 2017

UNAUDITED CONDENSED CONSOLIDATED STATEMENT of comprehensive income

 
For the 6 months ended 
 30 June 2017 
                                                                 Audited 
                                     6 months     6 months 
                                        ended        ended    Year ended 
                                     30/06/17     30/06/16      31/12/16 
                                          GBP          GBP           GBP 
 
Revenue                             5,769,311    5,663,962    12,072,101 
 
Cost of sales                     (5,680,171)  (5,285,847)  (10,949,499) 
 
Gross profit                           89,140      378,115     1,122,602 
                                  -----------  -----------  ------------ 
 
Operating costs and 
 expenses: 
  Administrative expenses 
   (see note 6)                     (206,961)    (264,472)     (452,847) 
  Amortisation and depreciation      (49,368)     (78,694)     (123,470) 
Total operating costs 
 and expenses                       (256,329)    (343,166)     (576,317) 
                                  -----------  -----------  ------------ 
Operating (loss)/profit             (167,189)       34,949       546,285 
 
Fair value gains and 
 losses                                12,719       14,352        58,196 
Finance costs                         (2,250)      (4,514)       (8,388) 
Share of results of 
 associate                             11,913       33,202        55,906 
 
(Loss)/profit before 
 tax                                (144,807)       77,989       651,999 
                                  -----------  -----------  ------------ 
 
Taxation                                    -            -       (7,195) 
 
(Loss)/profit for the 
 period                             (144,807)       77,989       644,804 
 
Total comprehensive 
 income attributable 
 to owners of the parent            (144,807)       77,989       644,804 
                                  ===========  ===========  ============ 
 
  (Loss)/ profit per 
  share 
Basic and diluted                      (0.2p)         0.1p          0.8p 
                                  ===========  ===========  ============ 
 
 

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 
As at 30 June 2017 
                                                                 Audited 
                                    30/06/17       30/06/16     31/12/16 
                                         GBP            GBP          GBP 
Assets 
Non-current assets 
Intangible assets                    104,573        129,856      119,221 
Property, plant and equipment        123,584        165,752      140,603 
Investments                           88,813         88,813       88,813 
Interest in associate                 74,958         40,341       63,045 
                                     391,928        424,762      411,682 
                                 -----------  -------------  ----------- 
 
Current assets 
Investments - financial 
 assets                                    -        242,350      510,920 
Trade and other receivables        2,825,531      1,785,150    2,343,977 
Cash and cash equivalents            862,446      1,188,962    1,101,235 
                                   3,687,977      3,216,462    3,956,132 
                                 -----------  -------------  ----------- 
 
Total assets                       4,079,905      3,641,224    4,367,814 
                                 ===========  =============  =========== 
 
 
 
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                (6,921,658)    (7,343,666)  (6,776,851) 
                                 -----------  -------------  ----------- 
Total equity                       2,211,463      1,789,455    2,356,270 
                                 -----------  -------------  ----------- 
 
Liabilities 
Non-current liabilities              335,000        435,000      385,000 
Current liabilities 
Trade and other payables           1,533,442      1,416,769    1,626,544 
Total liabilities                  1,868,442      1,851,769    2,011,544 
                                 -----------  -------------  ----------- 
Total equity and liabilities       4,079,905      3,641,224    4,367,814 
                                 ===========  =============  =========== 
 
 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

 
 
 
  As at 30 June    Called 
  2017                Up       Share 
                    Share     Premium    Merger    Warrant   Retained      Total 
                   Capital    Account    Reserve   Reserve   Earnings     Equity 
 
                        GBP        GBP        GBP      GBP          GBP        GBP 
----------------  ---------  ---------  ---------  -------  -----------  --------- 
Balance at 1 
 January 2017     2,285,398  5,533,626  1,300,395   13,702  (6,776,851)  2,356,270 
----------------  ---------  ---------  ---------  -------  -----------  --------- 
Loss for the 
 period                   -          -          -        -    (144,807)  (144,807) 
Balance at 30 
 June 2017        2,285,398  5,533,626  1,300,395   13,702  (6,921,658)  2,211,463 
----------------  ---------  ---------  ---------  -------  -----------  --------- 
 
 
 
  As at 31 December    Called 
  2016                    Up       Share 
                        Share     Premium    Merger    Warrant   Retained      Total 
                       Capital    Account    Reserve   Reserve   Earnings     Equity 
 
                            GBP        GBP        GBP      GBP          GBP        GBP 
--------------------  ---------  ---------  ---------  -------  -----------  --------- 
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                       -          -          -        -      644,804    644,804 
Balance at 31 
 December 2016        2,285,398  5,533,626  1,300,395   13,702  (6,776,851)  2,356,270 
--------------------  ---------  ---------  ---------  -------  -----------  --------- 
 
 
 
 
  As at 30 June    Called 
  2016                Up       Share 
                    Share     Premium    Merger    Warrant   Retained      Total 
                   Capital    Account    Reserve   Reserve   Earnings     Equity 
 
                        GBP        GBP        GBP      GBP          GBP        GBP 
----------------  ---------  ---------  ---------  -------  -----------  --------- 
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  (7,343,666)  1,789,455 
----------------  ---------  ---------  ---------  -------  -----------  --------- 
 

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 2017

 
                                                             Audited 
                                     6 months   6 months 
                                        ended      ended  Year ended 
                                     30/06/17   30/06/16    31/12/16 
                                          GBP        GBP         GBP 
 
Net cash (outflow)/inflow 
 from operations                a   (415,943)    364,216     457,707 
 
 
Net cash inflow/(outflow) 
 from investing activities      b     179,404   (10,016)   (187,360) 
 
Net cash used in financing 
 activities                     c     (2,250)    (4,514)     (8,388) 
------------------------------      ---------  ---------  ---------- 
 
Net (decrease)/increase 
 in cash and cash equivalents       (238,789)    349,686     261,959 
----------------------------------  ---------  ---------  ---------- 
 
Cash and cash equivalents 
 at beginning of period             1,101,235    839,276     839,276 
 
Cash and cash equivalents 
 at end of period                     862,446  1,188,962   1,101,235 
----------------------------------  ---------  ---------  ---------- 
 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the 6 months ended 30 June 2017

 
 
                                                6 months   6 months      Audited 
                                                   ended      ended   Year ended 
                                                30/06/17   30/06/16     31/12/16 
                                                     GBP        GBP          GBP 
a   Reconciliation of net loss 
     to net cash (outflow) / 
     inflow from operating activities 
 
 (Loss)/profit before tax                      (144,807)     77,989      651,999 
 Fair value gains and losses                    (12,719)   (14,352)     (58,196) 
 Finance costs                                     2,250      4,514        8,388 
 Amortisation and depreciation                    49,368     78,694      123,470 
    Gain on sale of intellectual 
     property                                          -          -            - 
 Share of associates profit                     (11,913)   (33,202)     (55,906) 
 FX gain on current asset 
  investment                                      16,560   (22,664)     (79,038) 
    Impairment of non-current 
     asset investments                                 -          -            - 
    R&D tax credit                                     -          -            - 
 (Increase)/decrease in 
  trade and other receivables                  (171,581)    516,028    (126,959) 
 Decrease in trade and other 
  payables                                     (143,101)  (242,791)     (83,017) 
 Income tax received                                   -          -       76,966 
 Net cash (outflow) / inflow 
  from operations                              (415,943)    364,216      457,707 
 -------------------------------------  ----------------  ---------  ----------- 
 
 
    Cash flow from investing 
b    activities 
 
    Proceeds on sale of channels                       -          -            - 
    Proceeds on sale of intellectual 
     property                                          -          -            - 
 Purchase of property, plant 
  and equipment                                 (17,700)   (10,016)     (19,010) 
    Refund of JV                                       -          -            - 
 Investment in current asset 
  investments                                          -          -    (168,350) 
 Proceeds from disposal 
  of current asset investments                   197,104          -            - 
    Purchase of investment 
     in associate                                      -          -            - 
 Net cash inflow / (outflow) 
  from investing activities                      179,404   (10,016)    (187,360) 
 -------------------------------------  ----------------  ---------  ----------- 
 
 
    Cash flow from financing 
c    activities 
 
 Interest paid                                   (2,250)    (4,514)      (8,388) 
 Net cash used in financing 
  activities                                     (2,250)    (4,514)      (8,388) 
 -------------------------------------  ----------------  ---------  ----------- 
 
 
d   Cash and cash equivalents 
 
 Cash at bank                   862,446  1,188,962  1,101,235 
 Cash and cash equivalents 
  at the end of the period      862,446  1,188,962  1,101,235 
 -----------------------------  -------  ---------  --------- 
 

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 35 Soho Square, London, W1D 3QX. 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 AIM, a Market operated by the London Stock Exchange.

This condensed consolidated interim financial information was approved for issue on 25 September 2017.

   2.     Basis of preparation 

This unaudited condensed consolidated interim financial information is for the six months ended 30 June 2017. 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 is unaudited and 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 2016 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 2016 have been reported on by the Company's auditor and have been delivered to the Registrar of Companies. The auditor's report on those statutory accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement made under Section 498 of the Companies Act 2006.

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 2016 and are also consistent with those which will be adopted in the 31 December 2017 financial statements.

The directors have considered Standards and Interpretations which were in issue but not effective at the date of authorisation of this condensed interim financial information. The directors have particularly considered the impact of IFRS 15 to the group's revenue recognition policies. The accounting policy for recognising broadcast revenue is not expected to change when the rules under IFRS 15 are applied. A further, detailed review of the policy for recognising revenue generated from the provision of management and consultancy services will be required when IFRS 15 is adopted but given the relative amount of this revenue as a proportion of total revenue the directors do not expect a material impact on the group financial statements in the period of initial application.

There are 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.

The directors have carefully considered whether or not it is appropriate to adopt the going concern basis in preparing the interim financial report. The directors have reviewed the group's detailed cash forecast to ensure that the group's current working capital and credit facilities in place are sufficient for the foreseeable future. This assessment is based upon forecasts following the reduction in the revenue of the UK television business together with the continued reduction in operational costs implemented over the year; it also assumes the maintenance of existing relationships with key suppliers.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

   3.     Basis of preparation (continued) 

After making enquiries, the directors have concluded that the group has adequate resources to continue trading for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the interim financial report.

   4.     Revenue 
 
 
                                                        Audited 
                                6 months   6 months 
                                   ended      ended  Year ended 
                                30/06/17   30/06/16    31/12/16 
                                     GBP        GBP         GBP 
 
Revenue 
 Interactive broadcast         5,469,311  5,343,767  11,452,101 
 Overseas gaming consultancy 
  services                       300,000    320,195     620,000 
                               ---------  ---------  ---------- 
Total revenue                  5,769,311  5,663,962  12,072,101 
                               ---------  ---------  ---------- 
 
   5.     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    6 months      Audited 
                                      ended       ended   Year ended 
                                   30/06/17    30/06/16     31/12/16 
                                        GBP         GBP          GBP 
 
Reported (loss)/profit 
 for the financial period         (144,807)      77,989      644,804 
                                 ----------  ----------  ----------- 
 
                                     Number      Number       Number 
 
Weighted average number 
 of ordinary shares              77,513,224  77,513,224   77,513,224 
 
Dilutive effect of outstanding 
 share options and warrants               -           -            - 
 
Weighted average number 
 of ordinary shares for 
 diluted earnings per share      77,513,224  77,513,224   77,513,224 
                                 ==========  ==========  =========== 
 
Basic earnings per share 
 (pence)                             (0.2p)        0.1p         0.8p 
Diluted earnings per share 
 (pence)                             (0.2p)        0.1p         0.8p 
                                 ----------  ----------  ----------- 
 
   6.     Foreign exchange gains and losses 

Included in administrative expenses for the 6 months ended 30/06/17 are foreign currency gains of GBP85,433 (Audited year ended 31/12/16: gains of GBP140,043).

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR PGUBPBUPMURC

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