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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Spg Media | LSE:SPM | London | Ordinary Share | GB0008462714 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 12.50 | 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 : 5600X
SPG Media Group Plc
26 June 2008
SPG MEDIA GROUP PLC
Preliminary Results for the year ended 31 March 2008
Financial highlights
Revenue £17.2 million (2007: £ 16.6 million)
Operating profit (before amortisation of
website
publishing rights and exceptional items) £0.6 million (2007: £0.7 million)
Operating profit before interest and £0.4 million (2007: £0.4 million)
taxation
Cash generated by operations £0.7 million (2007: £1.0 million)
Cash in hand £3.6 million (2007: £3.0 million)
Stephen Davidson, Chairman:
"Although we are in threatening economic times our strategy of investing in our products and people is delivering and we will continue
with this strategy to generate revenue growth and in due course increased profitability. Our orders brought forward are up on the previous
year by 21% and our current order intake is up 30% for the first eleven weeks of the year on the same time last year. I am confident we are
on track.
The Group finished the period with net funds of £3.6 million."
Contact:
Keith Sadler SPG Media Group plc 0207 915 9600
Ken Appiah SPG Media Group plc 0207 915 9600
Mike Coe Blue Oar Securities Plc 0117 933 0020
Chairman's Statement
Trading results
I have pleasure in presenting our results for the year ended 31 March 2008. I said in my statement for the previous year that we now had
a realistic plan to deliver revenue growth and I am pleased to announce that this has been achieved. Our ongoing investment in our people
and products continues to produce positive results.
The results for the year ended 31 March 2008 show revenue increased to £17.2 million (2007: £16.6 million) up 3.5% on the previous year.
Excluding revenue generated from our operation in India (£0.6 million), which was disposed of at the beginning of the year, revenue
increased by 7.1%.
Operating profit, before exceptional items and website amortisation, was £0.6 million (2007: £0.7 million) and profit before taxation
remained at £0.4 million (2007: £0.4 million).
Net funds
The Group produced net cash flow from operating activities of £0.7 million (2007: £1.0 million) and made capital expenditure of some
£0.2 million (2007: £0.3 million). We funded the Employee Benefit Trust ("EBT") to acquire a further 956,448 shares at a total cost of
£81,950. The EBT now holds 2,170,843 shares or 2.5% of the issued share capital of the company. The Group finished the period with net funds
of £3.6 million (2007: £3.0 million). This increase reflects the earnings before interest, tax, depreciation and amortisation and indicates
healthy cash conversion.
Employees and customers
I would like to thank my Board colleagues, the staff and management of the Group for their hard work and
commitment throughout the year. Also my thanks to all our customers and clients who have placed their marketing
needs with us and supported us through this year.
Outlook
Although we are in threatening economic times our strategy of investing in our products and people is
delivering and we will continue with this strategy to generate revenue growth and in due course increased
profitability. Our orders brought forward are up on the previous year by 21% and our current order
intake is up 30% for the first eleven weeks of the year on the same time last year. I am confident we are on track.
Stephen Davidson
Chairman
25 June 2008
Business Review
Strategy
Our aim is to grow the Group from its current base by developing the current portfolio of products, to increase the revenue from each
product through investment in content, people and ideas. The result of this investment will drive response for our clients ensuring they
achieve a return on their investment with us.
SPG Media Group plc's activities are focussed in three areas, in print, online and in person. We aim to offer
measurable marketing/advertising solutions to our customers through these three channels. To achieve long term
growth for the business and increase shareholder value we need to continue investment in our product
portfolio which will lead to increased revenue and, over time, improvement in the operating profit of the Group.
The key driver for the business is the demand for advertising and marketing services from a broad spectrum of industries. We are
investing in our products to ensure we can provide services for our clients even in the cyclical nature of marketing and advertising. We
have increased the budget for content on our websites and introduced e-newsletters and job boards. All of our websites have gone through a
complete redesign and we have invested in a new platform for our content management system. Editorial and design form an important part of
our magazines where we now invest in compelling content through the editorial team writing and commissioning specific articles for the
magazines. In our events division we are introducing more opportunities for our clients to meet their potential clients through the addition
of exhibition stands, meeting chalets and establishing networking areas. We have also initiated a comprehensive marketing review of our own
products to ensure we promote our brands in the market place.
Principal risks and uncertainties facing the Group would be a failure to respond to the competitive landscape and establishing marketing
and product initiatives to ensure we remain competitive. Continuing the investment in our products in the future will be imperative if we
are to achieve and maintain a profitable Group. The Group is reliant on its sales force and critical to its success is the recruitment and
retention of skilled sales personnel.
Key performance indicators
The Board use a wide range of financial indicators to assess performance within the Group. These key performance indicators are reviewed
regularly by the Board and senior management to ensure we comply with our aims.
Order intake 2008: 19.0% 2007: (11.1)%
Product order intake (in aggregate as
above)
Sales revenue recognition
(conversion of orders into revenue) 2008: 98% 2007:110%
Orders per sales person 2008: 11.0% 2007: 24.5%
Cash conversion
(operating profit to cash from 2008: 1.84 2007: 2.51
operations)
EBITDA 2008: £0.9 million 2007: £1.4 million
Order intake and product order intake reflects the increase or decrease in orders generated during the financial year compared with the
previous year.
Sales revenue recognition compares orders generated in the year against revenues recognised in the year. A
percentage below 100% indicates orders are being carried forward to future periods. A percentage above 100%
indicates orders brought forward are greater than orders carried forward.
Orders per sales person is the increase or decrease in orders generated by the average sales person.
Group Results
Revenue for the Group increased from £16.6 million to £17.2 million. On reported revenue, print revenue was £4.0 million compared to
£4.1 million for the previous year, online was £6.6 million compared to £6.5 million and events £6.6 million compared to £5.9 million. Each
of our divisions showed increases in revenue (excluding revenue from our India operation and contra revenue), the first time this has been
achieved for a number of years. On a like for like basis, excluding revenue from India and contra revenue, revenue increased as follows:
Online 2.8%
Print 6.9%
Events 13.4%
Events showed growth in our conference area where we increased revenues by £0.6 million.
The gross profit margin, as predicted, has fallen from 54% to 50% as result of the investment we are making in staff by way of an
increase in headcount. Gross profit of £8.6 million was achieved compared to £9.0 million for the previous year.
Distribution costs have been controlled and are slightly below last year even though we have produced more editions of our magazines.
For consistency we have identified redundancy costs as exceptional and disclosed these separately on the face of the profit and loss
account. We incurred £122,000 of redundancy costs.
The Administrative expenses were reduced from £7.9 million to £7.6 million. This reduction is primarily due to a reduction in the
depreciation charge and the reduced charge for bad debts. As in the prior year we have released a further credit balance from the balance
sheet of £0.4 million (2007: £0.4 million). We expect that the remaining balance of £0.4 million will be cleared from the balance sheet by
the end of 31 March 2009.
The Group reported an operating profit before website amortisation and exceptional items of £0.6 million (2007: £0.7 million). Group
operating profit is £0.4 million (2007: £0.4 million).
Net finance income of £76,000 (2007: charge £34,000) includes a charge of £58,000 (2007: £114,000) for the discount applied on the
property provision at the time the initial provision was calculated. This is a non-cash item and increases the property provision by this
amount. As stated last year this charge reduces as the provision is reduced over time. We have generated £164,000 (2007: £82,000) of
interest from the Group's cash balances.
As a result of the increase in retained earnings the earnings per share increased to 0.51 pence from 0.42 pence in 2007.
The Group was a positive cash generator with £0.6 million added to the balance at the previous year-end making a total of £3.6 million
of cash balances held at 31 March 2008.
Online
We operate web sites where we offer a listing service to clients with a 600 word profile and five image package. These web sites are
aimed at businesses who are looking to search for the procurement of goods and services for their own businesses. We now have 28 web sites
which cover a number of industries. The full list of our current websites are as follows:
Aerospace-technology.com Mining-technology.com
Airforce-technology.com Medicaldevice-network.com
Airport-technology.com Mobilecommunication-technology.com
Army-technology.com Naval-technology.com
The-Chiefexecutive.com Offshore-technology.com
Chemicals-technology.com Packaging-gateway.com
Designbuild-network.com Pharmaceutical-technology.com
Drugdevelopment-technology.com Power-technology.com
The-Financedirector.com Railway-technology.com
Foodprocessing-technology.com Roadtraffic-technology.com
Hospitalmanagement.net Semiconductor-technology.com
Hotelmanagement-network.com Ship-technology.com
Hydrocarbons-technology.com Water-technology.net
Industryappointments.com Worldcruise-network.com
Revenues from our internet business increased by 1.1% from £6.5 million to £6.6 million in the year ended 31 March 2008. Excluding the
India operations generation of online revenues of £0.4 million and contra revenues the growth rate is 6.9%.
During the second six months of the year we initiated a whole scale redesign of our websites together with an up to date content
management system, which will improve our functionality and flexibility. This project will be completed by the end of June 2008. This will
have been the first overhaul of our online offering. As well as the redesign we have signed a contract with Thompson/Reuters to supply a
news feed to our websites, which re-enforces our goal of providing compelling content on our products. This is on top of the increase in
editorial personnel to commission and write articles for our websites thereby ensuring the sites become the hubs for search and information
in their particular sectors. The launch of our job boards and e-newsletters have added to the overall product offering, ensuring our
products develop and are an attractive marketing proposition for our clients.
We have seen an increase in order intake, up 21% for the first eleven weeks of the current financial year, based on the improvements we
have made and with the new initiatives we should see this improvement solidified or improved.
Events
Our "in person" side of the business comprises executive Forums and Conferences. The Forums consist of supplier and buyer delegates
attending meetings at which suppliers have an opportunity to make presentations to potential clients. An important element for the success
of the Forum is the seminar and conference programme for all delegates. Separate to this is our conference programme where we produce and
sell delegate places to attendees. For both of these areas we also attempt to generate sponsorship revenues. What we believe differentiates
us is our exceptional execution of both our Forums and Conferences.
We ran 16 forums (2007: 13), 2 business breakfasts (2007: 2) and 31 conferences (2007: 35) through the year. The total revenue generated
was £6.6 million up from the £6.0 million produced the previous year. Excluding revenue from India and contra revenue the increase is 16.8%,
£5.5 million to £6.5 million. This increase in revenue was from our conference events which increased revenue from £1.6 million to £2.0
million. Our average revenue per conference increased from £44,000 to £64,000. This reflects the investment we made during the year in the
number of producers, sales and marketing personnel.
Three new forums were produced during the year which produced an extra £0.6 million of revenue. These were spin-off forums from existing
events. Based on our strategy to produce high quality events which produce effective results for our attendees we have taken the decision to
consolidate our forum events around nine key events for the forthcoming year and to consolidate the revenue we generate from these events.
We have increased the programme for our conferences to take the number we produce from the 31 for the year to 31 March 2008 to 55
conferences. By undertaking this increase we will also be able to spread our activities throughout the year rather than the focus on quarter
four. Order intake for the first eleven weeks of the current year is up 28% for the whole of the events division.
Print
Our refreshed Print team have turned the corner for our magazines and delivered an increase in revenues (excluding the India revenues
and contra revenues). After a period of change we established the print division under a single head of sales. We have also improved the
quality of the magazines under the direction of our Editor in Chief. Our aim is to have compelling content within the magazines giving our
advertisers and contributors a value added product. Our publications during the year were as follows:
World Pharmaceutical Frontiers Future Airport
World Expro CEO
FDE Packaging and Converting Intelligence
Medical Device Developments Hotel Management International
Global Semiconductor CIMA Excellence in Leadership
World Cruise Industry Review Future Banking
The Wealth Collection Hospital Management International
Leaf Review Medical Imaging Technology
International Review of Patient Care Practical Patient Care
The revenue from our print division was £4.0 million compared to £4.1 million. The revenue generated,
excluding India and contra revenue, shows an increase of 2.8%. This is a turnaround from the continued revenue
decline within our print division and is based on improving the product offering to our clients and ensuring that we
offer value across all our media platforms.
We continue to review our portfolio of publications and this includes the possibility of launching new titles and
increasing the frequency of existing titles. We have a strong order book which is up 32% as at week eleven of the
current financial year.
Unaudited Consolidated income statement
For the year ended 31 March
2008 2007
Before Exceptional Total Before Exceptional Total
items and items and
exception website excepti website
al amortisatio onal amortisatio
items n items n
and (Note 5) and (Note 5)
website
amortisat website
ion amortis
ation
Notes £'000 £'000 £'000 £'000 £'000 £'000
Restated
Revenue 1 17,177 - 17,177 16,597 - 16,597
Cost of sales (8,595) - (8,595) (7,567) - (7,567)
Gross profit 8,582 - 8,582 9,030 - 9,030
Distribution costs (370) - (370) (380) - (380)
Administrative expenses (7,595) (263) (7,858) (7,916) (344) (8,260)
Administrative expenses before
website amortisation and
exceptional items
2 (7,595) - (7,595) (7,916) - (7,916)
Amortisation of website
publishing rights 2 - (141) (141) - (141) (141)
Exceptional items 5 - (122) (122) - (203) (203)
Total administrative expenses (7,595) (263) (7,858) (7,916) (344) (8,260)
Group operating profit 617 (263) 354 734 (344) 390
Finance income/(expense) - net 6 76 - 76 (34) - (34)
Profit on activities before
taxation 693 (263) 430 700 (344) 356
Taxation 7 - - - (2) - (2)
Profit on ordinary activities
after taxation and retained
profit for the financial year
693 (263) 430 698 (344) 354
Basic profit per share 8 0.51p 0.42p
Diluted profit per share 8 0.51p 0.42p
All of the activities are continuing.
There are no material differences between the profits on ordinary activities before taxation and the retained profit as stated above and
their historical cost equivalents.
Unaudited Consolidated Balance Sheet
As at 31 March 2008
2008 2007
Restated
Notes £'000 £'000
Assets
Non-current assets
Intangible assets 9 4,151 4,484
Property, plant and equipment 10 390 470
4,541 4,954
Current assets
Trade and other receivables 11 4,110 4,104
Cash and cash equivalents 3,630 3,039
7,740 7,143
Total assets 12,281 12,097
Current liabilities
Trade and other payables 13 (8,109) (8,025)
(8,109) (8,025)
Non-current liabilities
Provisions 14 (901) (1,157)
Total liabilities (9,010) (9,182)
Net assets 3,271 2,915
Equity
Called up share capital 17 4,293 4,293
Share premium account 18 7,262 7,262
Capital redemption reserve 18 7,874 7,874
Other reserves 18 733 733
Retained earnings 18 (16,891) (17,247)
Total equity 3,271 2,915
Unaudited Consolidated statement of recognised income and expense
For the year ended 31 March 2008
2008 2007
Restated
£'000 £'000
Exchange rate adjustment offset in reserves (retranslation
of foreign investments) (16) (4)
Net expense recognised directly in equity (16) (4)
Profit for the year 430 354
Total recognised income and expense for the year 414 350
Unaudited Consolidated cash flow statement
For the year ended 31 March 2008
2008 2007
Restated
Notes £'000 £'000
Cash inflow from operating activities
Cash generated from operations 19 651 981
Interest paid (30) (2)
Income tax paid - overseas corporation tax - (2)
Net cash generated from operating activities 621 977
Cash flows from financing activities
Purchase of treasury shares (81) -
Net cash used in financing activities (81) -
Cash flows from investing activities
Purchases of property, plant and equipment (159) (341)
Proceeds from sale of property, plant and equipment 46
Proceeds from sale of subsidiary - 39
Interest received 164 82
Net cash generated/(used) in investing activities 51 (220)
Net increase in cash and cash equivalents 591 757
Cash and cash equivalents at start of year 3,039 2,282
Cash and cash equivalents at end of year 3,630 3,039
Notes to the accounts
1) Segmental reporting analysis
The turnover and operating profit is derived from international business to business communications and originates in the UK and India.
Revenue generated out of India was £0.1 million (2007: £0.7 million).
Primary reporting format - Business analysis:
Online Events Publishing Group
2008 2007 2008 2007 2008 2007 2008 2007
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue 6,605 6,533 6,614 5,948 3,958 4,116 17,177 16,597
Operating results 2,568 2,936 743 356 623 704 3,934 3,996
Depreciation charge (168) (225)
Amortisation of software (236) (623)
Amortisation of website
publishing rights (141) (141)
Group costs (3,035) (2,619)
Net finance income 76 (34)
Profit before taxation 430 354
Taxation - -
Profit for the period 430 354
The calculation of operating profit before tax has been undertaken by allocating central costs to each division on the basis of
contribution generated. Group costs include shared service and corporate costs. Barter revenue of £0.4 million (2007: £0.5 million) is
contained in the above total revenue.
Secondary reporting format: Geographical analysis of turnover:
2008 2007
£'000 £'000
UK 3,771 3,892
USA 3,127 3,208
Europe (other than UK) 8,142 7,774
Other 2,137 1,723
17,177 16,597
Included in the above is contra revenue
2) Expenses by nature
2008 2007
Restated
£'000 £'000
Depreciation, amortisation and impairment
Owned assets depreciation of property, plant and equipment 168 225
Owned assets depreciation of software 236 623
Amortisation of web publishing rights 141 141
Auditors' remuneration
Fees payable to the company's auditor for the audit of the
parent company and consolidated accounts 65 58
Fees payable to the Company's auditors and its associates
for other services
The audit of company's subsidiaries pursuant to legislation 5 5
Fees for other services supplied pursuant to legislation 10 12
Tax services 24 22
Operating lease rentals
Other (land and buildings) 1,330 1,492
Plant and machinery 186 74
Other
Release of credit balances (425) (428)
The Board regularly reviews and assesses the appropriateness of credit balances held on the balance sheet. In the year, this review
resulted in the release of £425,000 (2007: £428,000).
3) Employee benefit expense
2008 2007
Restated
£'000 £'000
Staff costs (including directors)
Wages and salaries 8,645 7,975
Share based payments 23 17
Social security costs 949 988
Other pension costs 66 64
9,683 9,044
The pension costs of £65,741 (2007: £64,469) are expensed through administrative expenses.
Key management compensation
2008 2007
£'000 £'000
Short term employee benefits 919 1,019
Post employment benefits 35 40
Other long term benefits - -
Termination benefits 67 260
Share based payments 9 16
1,030 1,335
4) Number of employees
The average monthly number of persons, including executive directors, employed by the Group during the year was as follows:
2008 2007
Number Number
Sales 129 120
Production, editorial and administrative 117 102
India 8 99
Total 254 321
5) Exceptional items
The following have been identified as exceptional items and disclosed separately on the face of the profit and loss account:
Exceptional items 2008 2007
£'000 £'000
Property provisions - 603
Write down of Indian fixed assets - (81)
Tax exposure on India employees - (101)
Costs associated with potential offer - (44)
Redundancy costs and compensation for loss of office (122) (580)
(122) (203)
Year ended 31 March 2008:
During the year non-recurring costs related to redundancy were incurred of £122,000.
Year ended 31 March 2007:
Due to the surrender, letting and recalculation of the required property provision an exceptional release of
£603,000 was made. The release mainly comprised £187,000 for the surrender of Edgware Road. The fourth floor
of Goodge Street has been let for the remainder of the term at the current rent. Therefore the remaining provision
for this floor of £257,000 has been released.
A review of the carrying value of the Indian assets on the balance sheet was carried out and a provision
of £81,000 was made against these assets. The assets related to software licences. In addition a provision of
£101,000 has been made for personal tax liability of employees in India.
The costs for the potential offer for the Company relate to adviser fees and legal costs.
6) Finance income and costs
2008 2007
£'000 £'000
Finance costs
Interest on finance leases - (2)
Other interest payable (30) -
Unwinding of discount on property provisions (58) (114)
(88) (116)
Investment income
Bank interest 164 82
Total 76 (34)
The unwinding of the discount on the property provisions calculates a nominal interest charge on the property provision made. This is
not a cash charge and will fall as the provision is either released or utilised.
7) Income tax expense
2008 2007
Restated
£'000 £'000
UK corporation tax at 30% (2007: 30%) - -
Foreign taxation - (2)
Deferred taxation (note 12 ) - -
- (2)
The current tax charge is reconciled to the standard corporation tax rate applicable in the UK as follows:
2008 2007
£'000 £'000
Profit/(loss) on ordinary activities before tax 430 356
Corporation tax at 30% (2007: 30%) 129 107
Effects of:
Prior year adjustment for basis of work-in-progress 30 -
Expenses not deductible for tax purposes 11 14
Excess of capital allowances over depreciation of eligible (5) 87
assets
Utilisation of losses brought forward (187) (331)
Losses carried forward - 46
Amortisation of intangibles 10 40
Associate losses not utilised 12 37
Foreign tax - (2)
- (2)
The 2007 budget, announced by the Chancellor of the Exchequer on 21 March 2007, reduced the rate
of UK corporation tax from 30% to 28% with effect from 1 April 2008. There is no impact on the 2008 Financial
statements.
8) Earnings per share
The earnings per share of 0.51p (2007: 0.42p) and the diluted earnings per share of 0.51p (2007: 0.42p) have
been calculated on the attributable profit to shareholders of £0.4 million (2007: £0.4million).
The weighted average number of shares in issue during the period (excluding those held by the Group's Employee
Benefit Trust) were:
2008 2007
Number Number
'000 '000
Total number of shares 85,857 85,857
Shares held in employee benefit trust (2,171) (1,214)
Basic number of shares 83,686 84,643
Dilutive effect of share options 703 74
Diluted number of shares 84,389 84,717
9) Intangible assets
Website publishing rights and other Total
intangible fixed assets
Software Goodwill
£'000 £'000 £'000 £'000
Cost
At 1 April 2007 1,621 2,306 10,539 14,466
Additions 69 - - 69
Assets fully depreciated (847) - (7,707) (8,554)
written off
Disposals (41) - - (41)
At 31 March 2008 802 2,306 2,832 5,940
Amortisation/permanent
diminution
At 1 April 2007 (1,155) (838) (7,989) (9,982)
Charge for the year (236) - (141) (377)
Assets fully depreciated 847 7,707 8,554
written off
Disposals 16 - - 16
At 31 March 2008 (528) (838) (423) (1,789)
Net book value
At 31 March 2008 274 1,468 2,409 4,151
At 31 March 2007 466 1,468 2,550 4,484
Goodwill, being the excess of the consideration paid over the fair value attributed to net assets acquired, relates to the acquisitions
of Net Resources International Limited and Vision in Business Limited.
The carrying value of publishing rights relate to the fair value of the websites acquired with Net Resources International Limited.
Software Goodwill Website publishing rights and other Total
intangible fixed assets
Restated Restated
£'000 £'000 £'000 £'000
Cost
At 1 April 2006 - 2,306 10,539 12,845
Software transferred from 2,516 - - 2,516
fixed assets
Additions 119 - - 119
Assets fully depreciated (1,014) - - (1,014)
written off
At 31 March 2007 1,621 2,306 10,539 14,466
Amortisation/permanent
diminution
At 1 April 2006 - (838) (7,848) (8,686)
Software transferred from (1,546) - - (1,546)
fixed assets
Charge for the year (623) - (141) (764)
Assets fully depreciated 1,014 - - 1,014
written off
At 31 March 2007 (1,155) (838) (7,989) (9,982)
Net book value
At 31 March 2007 466 1,468 2,550 4,484
At 31 March 2006 - 1,468 2,691 4,159
Intangible amortisation is included within administration expenses in the consolidated income statement.
10) Property, plant and equipment
Short-term leasehold Equipment, vehicles fixtures and fittings Total
premises
£'000 £'000 £'000
Cost
At 1 April 2007 263 797 1,060
Additions - 90 90
Disposals - (1) (1)
Assets fully depreciated - (120) (120)
written off
Assets held in India revalued - (48) (48)
Assets written off - (123) (123)
At 31 March 2008 263 595 858
Depreciation
At 1 April 2007 (114) (476) (590)
Charge for the year (38) (130) (168)
Disposals - 1 1
Assets fully depreciated - 120 120
written off
Assets held in India revalued - 48 48
Assets written off - 121 121
At 31 March 2008 (152) (316) (468)
Net book value
At 31 March 2008 111 279 390
At 31 March 2007 149 321 470
Short-term leasehold Equipment, vehicles fixtures and fittings Total
premises
£'000 £'000 £'000
Cost
At 1 April 2006 263 4,046 4,309
Additions - 222 222
Disposals - (134) (134)
Impairment of assets held in - (81) (81)
India
Software transferred to (2,516) (2,516)
intangible assets
Assets fully depreciated - (740) (740)
written off
At 31 March 2007 263 797 1,060
Depreciation
At 1 April 2006 (76) (2,643) (2,719)
Charge for the year (38) (187) (225)
Disposals - 68 68
Software transferred to - 1,546 1,546
intangible assets
Assets fully depreciated - 740 740
written off
At 31 March 2007 (114) (476) (590)
Net book value
At 31 March 2007 149 321 470
At 31 March 2006 187 1,403 1,590
11) Trade and other receivables
2008 2007
£'000 £'000
Current
Trade receivables 5,482 7,448
Less provision for impairment of trade receivables (1,808) (3,954)
Trade receivables - net 3,674 3,494
Other debtors 349 66
Prepayments and accrued income 87 544
4,110 4,104
The carrying value and the fair value are considered to be the same.
Amounts owed by Group undertakings are repayable on demand and are non-interesting bearing.
12) Deferred income tax
The Group has a unrecognised potential deferred tax asset at the year end comprising:.
Provided Unprovided
2008 2007 2008 2007
£'000 £'000 £'000 £'000
General bad debt provisions - - 109 51
Excess capital allowances over depreciation - - 165 211
Losses - - 1,626 1,940
Capital losses - - 4,268 4,573
- - 6,168 6,775
13) Trade and other payables
2008 2007
£'000 £'000
Current
Trade creditors 384 398
Other taxes and social security costs 554 527
Other creditors 848 1,308
Accruals and deferred income 6,323 5,792
8,109 8,025
14) Provision for other liabilities and charges
2008 2007
£'000 £'000
Current
At 1 April 1,157 2,280
Utilised in year (290) (634)
Release in the year (24) (603)
Unwinding of discount (see note 6) 58 114
At 31 March 901 1,157
Provision has been made for the net present value of future residual leasehold commitments. This provision has been calculated making
assumptions on future rental income, market rents, insurance and rates this has then been discounted using a discount rate of 5.0% per
annum. As these are estimates this provision cannot be known with certainty.
The provision will be utilised over the term of the relevant leases and falls within the following periods:
2008 2007
£'000 £'000
Less than one year 186 290
Between two and five years 592 750
More than five years 123 117
Total 901 1,157
15) Financial assets and liabilities
The Group does not have any material exposure to interest rate, liquidity or currency risks. The Group has cash balances, committed
overdraft facilities if required and conducts the majority of its business in sterling. The Group does not use any swap or hedge
instruments. Cash deposits are held on term notice or placed with the money market. Interest is earned by reference to inter-bank rates.
The Group banking facility operates under a right of set-off agreement for each balance and each currency.
Short-term debtors and creditors have been excluded from the following disclosures.
The fair value of the financial assets is not materially different to the carrying value.
At the year end the Group held net £3.6 million cash balances (2007: £3.0 million), which were held in current accounts and deposit
accounts. All balances are held at Lloyds TSB Group plc which is ranked by Moody's Aaa; Fitch AA+ and Standard & Poor AA (as disclosed by
Lloyds TSB Group plc).
Financial assets: floating rate
2008 2007
£'000 £'000
EUR 35 35
USD 167 52
Indian Rupees 1 11
GB pounds 3,427 2,941
Total 3,630 3,039
Interest on floating-rate bank deposits is based on the inter-bank rate and may be fixed for up to one month. The balance held on
deposit for one month at the year end was £1.3 million (2007: £2.8 million).
16) Operating leases
Non-cancellable operating lease rentals are payable as follows:
2008 2007
£'000 £'000
Land and buildings
Less than one year 61 61
More than five years 1,211 1,211
Total 1,272 1,272
Other
Less than one year 175 40
Between two and five years 3 9
Total 178 49
17) Share capital
2008 2007 2008 2007
Number Number
'000 '000 £'000 £'000
Authorised
Ordinary shares of 5p each 223,754 223,754 11,188 11,188
Redeemable deferred shares of 1p each 535,621 535,621 5,356 5,356
At 31 March 16,544 16,544
Allotted and fully paid
Ordinary shares of 5p each 85,857 85,857 4,293 4,293
18) Changes in equity
Share premium Capital redemption Other reserves Profit and loss account
reserve
£'000 £'000 £'000 £'000
At 31 March 2007 7,262 7,874 733 (17,247)
Retained profit for the year - - - 430
Share based payments - - - 23
Loan to EBT to purchase - - - (81)
Company shares
Exchange rate differences - - - (16)
At 31 March 2008 7,262 7,874 733 (16,891)
In January 2008 the Group's EBT purchased 791,448 and 165,000 Ordinary Shares in the Company. At the 31 March 2008, the Group's EBT held
2,170,843 (2007: 1,214,395) Ordinary Shares in the Company. The historical cost of the Ordinary Shares is £1,755,000. In prior years this
was shown as a separate reserve.
Share premium Capital redemption Other reserves Profit and loss
reserve account
£'000 £'000 £'000 £'000
At 31 March 2006 7,262 7,874 733 (17,614)
Retained profit for the year - - - 354
Share based payments - - - 17
Exchange rate differences - - - (4)
At 31 March 2007 7,262 7,874 733 (17,247)
19) Cash flows from operating activities
2008 2007
£'000 £'000
Operating profit
- Group 354 390
Amortisation of publishing rights and software 141 141
Depreciation of tangible fixed assets 168 225
Amortisation of software 236 623
Share based payment 23 17
Loss on disposal of tangible fixed assets 8 26
Write-off of tangible fixed assets - 81
Operating cash flow before movements in working capital 930 1,503
Decrease in debtors 48 757
(Decrease) in creditors (13) (42)
Movement in provision for liabilities and charges (314) (1,237)
Net cash inflow from operating activities 651 981
20) Analysis of net funds
1 April 2007 Cash flow 31 March 2008
£'000 £'000 £'000
Cash at bank and in hand 3,039 591 3,630
Net funds 3,039 591 3,630
21) Basis of preparation
These unaudited preliminary results have been prepared under the historical cost convention and in accordance with International
Financial Reporting Standards ("IFRS") and interpretations in issue at 31 March 2008.
The Group published an IFRS transition statement as part of the interim results statement on 22 November 2007 which set out the effect
of adopting IFRS for the Group, the basis of preparation, the accounting policies, details of significant adjustments in respect of the
opening balance sheet at 1 April 2006, the results for the year ended 31 March 2007 and the balance sheet at 31 March 2007.
The preliminary results were approved by the Board of Directors and the Audit Committee on 25 June 2008. The preliminary results do not
constitute statutory accounts within the meaning of the Companies Act 1985 and have not been audited. Comparative figures in the results for
the year ended 31 March 2007 have been taken from the IFRS transition statement.
All periods presented are unaudited. The preliminary results will be announced to all shareholders on the London Stock Exchange and
published on the Group's website on 26 June 2008. Copies of the directors' report and the audited financial statements for the year ended 31
March 2008 will be posted to shareholders by 31 July 2008 and may be obtained from the Company's registered office.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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