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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Hollywood Media | LSE:HOL | London | Ordinary Share | GB00B1WN7R92 | ORD 0.125P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.375 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number : 6731E
Hollywood Media Services plc
30 September 2008
HOLLYWOOD MEDIA SERVICES PLC ("HOLLYWOOD" OR THE "COMPANY")
HALF-YEAR UNAUDITED REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2008
CHAIRMAN'S STATEMENT
I am pleased to report on our results for the six months to 30 June 2008.
Highlights
* Acquisition of the contract for "The Bill"
* Consolidated revenues up 73% to £990,981
* Pre tax loss of £212,570 after amortising the costs of The Bill for £130,046
Review of Operations
The key event of the first half was the acquisition of The Bill contract in February 2008 which has the potential to double the Group's
turnover and provide a significant contribution to covering the Group's overheads. In the five months we have operated it, the contract has
delivered an operating margin of 10%; at which rate it should generate profits for the year in excess of the cash consideration paid of
£94,500. As previously reported total consideration is up to £575,000 (the balance being in shares) of which £275,000 is payable if the
contract is extended beyond 31 December 2008. The contract is particularly valuable to the group because it provides a stable cash flow
during the year and therefore reduces the seasonality of the business as a whole.
Accounting for the contract is governed by IFRS 3, Business Combinations, under which the acquisition costs of The Bill are required to
be written off over the remaining period of the contract, regardless of any renewal. Given the contract currently runs until 31 December
2008, this results in a write off of £130,046 in the period with the balance of approximately £156,000 to be written off in the second half.
The directors are confident that the Company will be successful in extending the contract beyond 31 December 2008.
As I reported with the 2007 results, the traditionally slow first quarter for the continuing operations was even slower than expected in
2008, due to the after effects of the writers' strike in the USA and postponements of new production commissions by both the BBC and ITV.
The second quarter saw an improvement in volumes with productions serviced including "Minder", "Apparitions", "Survivors", "Trinity" and
"Damned United". In addition, we were appointed caterers to a number of pop festivals. This is a new area for the Company and follows the
recruitment of a dedicated events manager as mentioned in our year end report.
Financial Review
The poorer than expected start to sales in the first half resulted in revenues from continuing operations for the period being down 3%.
However, this was more than offset by the addition of The Bill contract as a result of which total revenues increased by 73% to £990,981
(2007: £572,336) in the first half of 2008. Trading profit (before head office costs, reorganisation costs and amortisation of goodwill)
improved to £38,898 (2007: £21,769) with losses in continuing operations being exceeded by the performance of The Bill contract. Head office
costs which comprise the costs of the Plc board and direct Plc overheads amounted to £74,589 (2007: nil). After the amortisation of The Bill
contract of £130,046 an operating loss of £185,679 is reported for the 6 months (2007: profit of £21,769). After financial expenses of
£26,891 (2007:£14,223) a pre and post tax loss of £212,570 was incurred in the 6 months (2007: pre tax profit of £7,546 and post tax profit
of £8,949).
As noted in the year end report, cash reserves were at their worst in May 2008 since when the position has improved as trading has
recovered from the slow start mentioned above. As well as the acquisition of The Bill contract mentioned above, the Company invested around
£110,000 into new equipment with the result that the Company moved to a net debt position of £321,942 including lease obligations of £76,532
and utilising invoice discounting facilities of £192,679. Since June 2008, further capital expenditure of approximately £46,000 has been
undertaken utilising an existing lease facility which would otherwise have expired but, in the current financial environment, there are no
further plans for significant capital expenditure despite currently healthy demand for the group's services. The group is projected to
generate cash in the second half in line with the expected improvement in trading.
Current Trading
While increased macro economic risk makes for caution in commenting on trading prospects the improved volumes achieved in facilities in
May and June have been maintained in the first three months of the second half, while the second half will also benefit from a full 6 months
of The Bill.
With regard to acquisitions, the board has commenced discussions with a number of potential opportunities since the year end and these
remain ongoing. Whilst there can be no certainty that any discussions will conclude successfully, the Board continue to believe that there
are opportunities to grow the business by acquisition, enabling cross selling of products and services as well as joint offerings to
increase volume and margins.
James Holmes
Chairman
30 September 2008
For further information please contact:-
Hollywood Tel: 0207 332 2200
Martin Eberhardt, Chief Executive
Dowgate Capital Advisers Limited Tel: 020 7492 4777
Liam Murray, Antony Legge
IAF Securities Limited Tel: 020 7747 7400
David Coffman
UNAUDITED CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS TO 30 JUNE 2008
Six month period Six month period Year ended 31
ended 30 June 2008 ended 30 June 2007 December 2007
Note Unaudited Unaudited Audited
£ £ £
Revenue
Continuing operations 553,096 572,336 1,090,775
Acquisitions 437,885 - -
Total revenue 990,981 572,336 1,090,775
Gross profit
Continuing operations 197,884 217,464 367,246
Acquisitions 124,928 - -
Total gross profit 322,812 217,464 (356,283)
Administrative expenses
Trading expenses
Continuing operations (202,717) (195,695) (362,839)
Acquisitions (81,197) - -
Total administrative expenses (283,914) (195,695) (362,839)
Trading profit
Continuing operations (4,833) 21,769 4,407
Acquisitions 43,731 - -
Total trading profit 38,898 21,769 4,407
Head office costs (74,589) - (95,393)
Acquisition/Float and (19,942) - (128,050)
reorganisation costs
Amortisation of contract cost (130,046) - -
Operating profit/(loss) (185,679) 21,769 (219,036)
Financial expenses (26,891) (14,223) (42,407)
Profit/(loss) before taxation (212,570) 7,546 (261,443)
Taxation 2 - 1,403 -
Profit/(loss) after taxation (212,570) 8,949 (261,443)
UNAUDITED CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENDITURE FOR THE SIX MONTHS TO 30 JUNE 2008
Six month period Six month period Year ended 31
ended 30 June 2008 ended 30 June 2007 December 2007
Unaudited Unaudited Audited
£ £ £
(Loss) for the financial year (212,570) 8,949 (261,443)
Costs of flotation written off - - (377,156)
to share premium account
Total (losses)/gains (212,570) 8,949 (638,599)
recognised since last annual
report
Total (losses)/gains (212,570) 8,949 (638,599)
attributable to equity holders
of the parent
UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2008
Six month period Six month period Year ended 31
ended 30 June 2008 ended 30 June 2007 December 2007
Unaudited £ Unaudited £ Audited £
Non current assets
Intangible asset 156,056 - -
Property plant and equipment 592,492 472,226 529,422
Deferred tax asset 4,554 7,682 -
753,102 479,908 529,422
Current assets
Inventories 31,523 15,825 15,406
Trade and other receivables 452,186 389,444 192,391
Cash and cash equivalents - - 275,909
483,709 405,269 483,706
Total assets 1,236,811 885,177 1,013,128
Current liabilities
Trade and other payables (535,160) (506,059) (421,981)
Financial liabilities (321,942) (192,574) (171,149)
(borrowings)
Tax liabilities (1,403) (3,128) -
(858,505) (701,761) (593,130)
Net Current (liabilities) (374,796) (296,492) (109,424)
Non current liabilities
Borrowings (2,600) (79,130) (38,259)
Net assets 375,706 104,286 381,739
Capital and reserves
Called up Share capital 89,171 50,000 85,417
Shares to be issued 205,700 - 70,000
Share premium account 504,511 - 437,427
Retained earnings (428,676) 54,286 (216,105)
Share option reserve 5,000 - 5,000
Equity attributable to equity 375,706 104,286 381,739
holders of the parent
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2008
Six month period Six month period Year ended 31
ended 30 June 2008 ended 30 June 2007 December 2007
Unaudited £ Unaudited £ Audited £
Net cash from operating (182,166) 47,599 60,712
activities
Cash flows from investing
activities
Interest received - - 2,329
Proceeds on disposal of 6,616 - -
property plant and equipment
Purchases of property, plant (110,429) (69,953) (176,367)
and equipment
Business acquisition (114,442) - -
Fair value adjustment 8,540 - -
Net cash used in investing (209,715) (69,953) (174,038)
activities
Cash flow from financing
activities
Costs of flotation - - (377,156)
New finance lease liabilities - - -
Repayment of obligations under (38,637) (34,165) (87,574)
finance leases
New borrowings 101,040 2,575 -
Issue of new shares 838 49,980 850,000
Net cash used in financing 63,241 18,390 385,270
activities
Net (decrease)/increase in (328,640) (3,964) 271,944
cash and cash equivalents
Cash and cash equivalents
At beginning of period 275,909 3,964 3,964
Net(decrease)/increase in cash (328,640) (3,964) 271,945
and cash equivalents
At end of period (52,731) - 275,909
UNAUDITED CONSOLIDATED CASH FLOWS FROM OPERATING ACTIVITIES
FOR THE SIX MONTHS TO 30 JUNE 2008
Six month period Six month period Year ended 31
ended 30 June 2008 ended 30 June 2007 December 2007
Unaudited £ Unaudited £ Audited £
Profit/(loss) from operations (185,679) 21,769 (219,036)
Adjustments for:
Movement in share option - - 5,000
reserve
Depreciation of property, 53,043 38,859 88,077
plant and equipment
Amortisation of intangible 130,046 - -
asset
Operating cash flow before (2,590) 60,628 (125,959)
movements in working capital
Increase in inventories (2,917) 24,500 24,919
Increase in receivables (264,350) (98,427) 106,261
(Decrease)/increase in 114,582 73,718 100,227
payables
Cash generated by operations (155,275) 60,419 105,448
Income taxes refunded/(paid) - 1,403 -
Interest paid (26,891) (14,223) (44,736)
Net cash flow from operating (182,166) 47,599 60,712
activities
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 JUNE 2007
1. Accounting policies
Basis of Preparation
The half-yearly financial information in this report has been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted for use in the EU applied in accordance with the provisions of the Companies Act 1985.
IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the International Financial
Reporting Interpretations Committee (IFRIC) and there is an ongoing process of review and endorsement by the European Commission. The
financial information has been prepared on the basis of IFRS that the Directors expect to be applicable as at 31 December 2008.
The half-yearly results for the six months to June 2008 and June 2007 have been prepared under the historical cost convention, are
unaudited and do not constitute statutory accounts in accordance with Section 434 of the Companies Act 2006. The principal accounting
policies set out below have been consistently applied to all periods presented.
Basis of consolidation
The consolidated financial statements include those of the holding company and its subsidiaries made up to 31 December 2007. As the
company's results are included in the consolidated profit and loss account and disclosed in the reconciliation of movements in shareholders'
funds, a separate profit and loss account is not presented, as permitted by s 230 (4) of the Companies Act 2006. Entities not owned by the
group over which the group has the ability to exercise control are accounted for as subsidiaries. The results of subsidiary undertakings
acquired in the year are included in the consolidated profit and loss account from the date of acquisition.
Acquisition accounting
The assets and liabilities of subsidiary undertakings and the acquired are incorporated at their fair value at the date of acquisition
and the Group income statement includes only that proportion of the result of subsidiaries arising whilst meeting the definition of a
subsidiary.
Intangible assets other than goodwill are stated at cost less accumulated depreciation and any impairment losses. Intangible assets
arising on acquisition are recognised separately from goodwill where the fair value of the asset can be identified separately and measured
reliably. Amortisation is calculated on a straight line basis over the useful life of the asset. Amortisation methods and useful lives are
reviewed annually and adjusted if appropriate.
Depreciation
Fixed assets are stated at cost less accumulated depreciation and any recognised impairment loss. Depreciation is charged so as to
write off the cost of the assets, over their estimated useful lives, using the straight line method on the following bases:
Motor vehicles, trailers, plant and equipment 15% straight line
Fixtures and fittings 33% straight line
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership
to the lessee. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets of the Company at their fair value or, if lower, at the present value of the
minimum lease payments, each determined at inception of the lease. The corresponding liability is included in the balance sheet as a finance
lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant
rate of interest on the remaining balance of the liability. Finance charges are charged to the income statement.
Rentals payable under operating leases are charged to the income statement on a straight line basis over the term of the relevant
lease.
2. Taxation
No provision for corporation tax has been provided for, due to losses incurred in previous periods.
3. Earnings per Share
The earnings per share has been calculated by dividing the loss after taxation of £75,368 (June 2007: profit of £8,949) by the
weighted average number of Ordinary £1 shares in issue of 49,285,732 (June 2007: 25,010).
Six month period Six month period Year ended 31
ended 30 June 2008 ended 30 June 2007 December 2007
Unaudited £ Unaudited £ Audited £
Loss/Profit attributable to (212,570) 8,949 (261,443)
shareholders
Weighted average number of 49,285,732 25,010 25,049,348
ordinary shares in issue for
calculating basic earnings per
share
Increase in weighted average 19,982,990
number of ordinary shares in
issue at a nominal value of
0.125p following sub division
of shares
Weighted average number of 19,000,000 6,592,692
warrants and options
Weighted average number of 20,000,000 6,703,297
preference shares
Weighted average number of 88,285,732 20,008,000 38,345,337
shares for calculating
dilutive earnings per share
Basic (loss)/earnings per (0.004) 0.36 (0.010)
share
Earnings per share of 0.125p 0.000
Fully diluted (0.002) (0.007)
4. Statement of changes in equity
Six month period Six month period Year ended 31
ended 30 June 2008 ended 30 June 2007 December 2007
Unaudited £ Unaudited £ Audited £
Opening balance 381,739 45,358 45,358
Profit/(loss) for the (212,570) 8,948 (261,443)
period/year
Issue of shares 838 49,980 899,980
Flotation costs written off - - (377,156)
against Share Premium
Shares to be issued 205,700 - 70,000
Gain on share options granted - - 5,000
Closing balance 375,706 104,286 381,739
5. Ultimate controlling party
As at 30 June 2007, the Company's ultimate controlling party was Catering 4 Events Plc. Following the Company's admission on 30 August,
there was no ultimate controlling party.
6. Distribution of half-yearly report
This half-yearly report, together with the admission document, are available on the Company's website, www.hmservicesplc.com.
7. Aim Compliance Committee
In accordance with AIM Rule 31 the Company is required to have in place sufficient procedures, resources and controls to enable its
compliance with the AIM Rules; seek advice from its nominated adviser ("Nomad") regarding its compliance with the AIM Rules whenever
appropriate and take that advice into account; provide the Company's Nomad with any information it requests in order for the Nomad to carry
out is responsibilities under the AIM Rules for Companies and the AIM Rules for Nominated Advisers; ensure that each of the Company's
directors accepts full responsibility, collectively and individually, for compliance with the AIM Rules; and ensure that each director
discloses without delay all information which the Company needs in order to comply with AIM Rule 17 (Disclosure of Miscellaneous
Information) insofar as that information is known to the director or could with reasonable diligence be ascertained by the director.
In order to ensure that these obligations are being discharged, the Board has established a committee of the Board (the "AIM
Committee"), chaired by Michael Johnson, a non executive director of the Company.
Having reviewed relevant Board papers, and met with the Company's Executive Board and the Nomad to ensure that such is the case, the AIM
Committee is satisfied that the Company's obligations under AIM Rule 31 have been satisfied during the period under review.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAENEDDNPEFE
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