Vitesse Media PLC Final Results (7195C)

TIDMVIS

RNS Number : 7195C

Vitesse Media PLC

30 June 2016

VITESSE MEDIA plc

RESULTS

Vitesse Media plc ("Vitesse" or the "Company") is pleased to announce its audited final results for the year ended 31 January 2016.

Chairman's Report

HIGHLIGHTS

   --     Total revenue decreased by 5.7% to GBP2.13m (2015: GBP2.26m) during the transition from low 

margin event management contracts to our own events

   --     Gross margin has risen to 70% (2015: 67%) 
   --     EBITDA of GBP29k (2015: GBP22k) 
   --     Operating loss at almost breakeven (-GBP7k) (2015: -GBP20k) before exceptional costs 
   --     Direct costs reduced by 12% to GBP672k (2015: GBP765k) 
   --     Positive action to remove GBP188k of exceptional costs 

-- Post-year end, subscription of GBP250,000 by Chris Ingram, Chairman of the Company, at 1.8p per share to support the Company's development and expansion

OVERVIEW OF RESULTS

2015/2016 has been a 'tidying up' year for Vitesse. Operationally, the Company has ended up in a broadly break-even position with a small operating loss of -7K versus -20K in 2015. While this is, of course, not satisfactory it means that the Company has moved away from the heavy losses of recent years to a more stable footing. The Board is not recommending the payment of a dividend.

Behind the apparent small changes in results, a number of significant things have happened:-

1. REVENUE

The 5.7% reduction in revenue year-on-year is almost entirely due to the conscious decision in the Events Division to move away from the small, low margin managed events to concentrate on our own events. This included creating new events, of which Women In Technology with 500 attendees in only its second year, is a good example with revenue increasing by 19% GBP198k.

2. COST OF SALES

Cost of sales reduced by 12.8% compared with last year due, in part, to a reduction in third-party event management coupled with some changes in product mix.

3. ADMIN EXPENSES

Savings in administrative expenses of GBP54k have been brought about by an underlying reduction in headcount and staff costs, and lower premises costs following the relocation of the office in late 2014.

4. EXCEPTIONAL COSTS

These were a sizeable GBP188k and followed a close review of the Company's accounts. The two main items were the previously announced decision not to proceed with the crowd-funding project in the way it was planned, resulting in an impairment charge of GBP125k, and GBP44k of legal costs incurred on an aborted transaction.

SUBSCRIPTION

The Company announced on 29 January 2016 that, conditional on shareholders' approval, I would invest a total of GBP250,000 for 13,888,889 new ordinary shares in the Company at 1.8p per share. The proceeds were to be used to support the Company's development and expansion. A circular was published to convene a general meeting on 12 February 2016 at which shareholders' approval was obtained.

PROSPECTS

Good progress has been made in the last two years in cutting costs. While there is some scope for further reductions, this will not play a significant part in the progress of the Company in the near future. Growing volume is now the key. However, there is certainly scope for increased productivity and that is the purpose of the imminent launch of our new technology platform, unifying our digital publishing and IT infrastructure whilst enabling us to build our data. Simply put, we need to attract considerably more of the right audience, measure them better and as a result charge advertisers and sponsors more appropriately.

We are putting more resource into Sales and Marketing - this is emphatically not an area in which to economise! The Company hired its first Commercial Director post year-end and is also making one or two more sales appointments.

Events has been the best performing division in the last few years, but there is still scope to improve: by increasing attendances to existing events and creating new ones - we have a good track record in doing this. This year new launches include The British Small Business Awards and Data 50.

All of the above relates to organic growth and we believe these steps can restore us to a position where the Company makes a sensible profit margin: starting this year, but building into 2017/18. At the same time, if relevant acquisition opportunities present themselves, we must be in the right shape to take advantage of them.

FINANCIAL YEAR-

The Group is proposing to change its year-end from 31 January to 31 March with effect from 31 March 2017. The current financial year will therefore be extended by two months to 31 March 2017, following which the Company will announce half-yearly unaudited results to 30 September 2017 with comparable figures for the 6 months ending 30 September 2016. The reason for this change is to ensure the business operations can be managed and reported more effectively. Currently many of the Company's large and successful events occur at the very end of January and this causes significant pressure in terms of management and finance.

CURRENT TRADING

The year has started well with the first four months all ahead of the corresponding months last year.

Notice of AGM and publication of Annual Report

The AGM will be held on 28 July at 10.00am at the offices of Stephenson Harwood LLP, Finsbury Circus, London EC2R 7SH. A notice of meeting together with the Annual Report & Accounts will be dispatched to shareholders on 4 July 2016.

A copy of this Chairman's Report and audited financial statements will be posted today on the Company's website at www.vitessemedia.com, as will the Annual Report & Accounts when published in due course.

The audited financial information for the years ended 31 January 2016 and 31 January 2015 contained in this announcement do not constitute statutory accounts as defined in the Companies Act 2006. The comparative financial information is based on the statutory accounts for the financial year ended 31 January 2015. Those accounts, upon which the auditors issued an unmodified opinion with an emphasis of matter paragraph relating to going concern, have been delivered to the Registrar of Companies. The financial information for the year ended 31 January 2016 has been extracted from the audited financial statements of Vitesse Media Plc which will be delivered to the Registrar of Companies in due course. The auditors have issued an unmodified opinion on the financial statements for the year ended 31 January 2016 which includes an emphasis of matter paragraph in respect of going concern and does not include any statement under Section 498 (2) or (3) of the Companies Act 2006. The preliminary announcement was approved by the Board of Directors and authorised for issue on 30th June 2016.

The Group prepares its annual consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) endorsed by the European Union (EU) and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial information included in this announcement does not include all the disclosures required by IFRS or the Companies Act 2006 and accordingly it does not itself comply with IFRS or the Companies Act 2006.

For further information, please contact:

Vitesse Media Plc

Executive Chairman: Chris Ingram

Chief Executive: Niki Baker

020 7250 7010

020 7250 7043

Stockdale Securities Limited

Tom Griffiths

020 7601 6100

Kreab

Robert Speed

020 7074 1800

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 January 2016

 
                                        2016         2015 
                                         GBP          GBP 
 
Revenue                            2,130,235    2,259,768 
Cost of sales                      (641,776)    (736,071) 
                                    ________     ________ 
Gross profit                       1,488,459    1,523,697 
 
Administrative expenses          (1,478,966)  (1,532,752) 
Share-based payments                (16,659)     (11,234) 
 
                                    ________     ________ 
Operating loss                       (7,166)     (20,289) 
 
Exceptional costs                  (188,315)            - 
Finance costs                        (8,565)      (7,767) 
                                    ________     ________ 
Loss before tax                    (204,046)     (28,056) 
Income tax                                 -            - 
                                    ________     ________ 
Loss for the year and total 
 comprehensive income for the 
 year attributable to owners 
 of the parent                     (204,046)     (28,056) 
 
Loss per share attributable 
 to the owners of the parent 
Basic and diluted                    (0.40p)      (0.06p) 
 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 January 2016

 
                                        2016         2015 
                                         GBP          GBP 
Non-current assets 
Goodwill                             729,332      739,332 
Other intangible assets            1,369,486    1,465,184 
Property, plant and equipment          1,121        3,648 
                                    ________     ________ 
                                   2,099,939    2,208,164 
                                    ________     ________ 
Current assets 
Inventories                           15,533       15,533 
Trade and other receivables          409,384      555,600 
Cash and cash equivalents             77,411       27,368 
                                    ________     ________ 
                                     502,328      598,501 
                                    ________     ________ 
Total assets                       2,602,267    2,806,665 
                                    ________     ________ 
Equity 
Share capital                      2,811,068    2,811,068 
Share premium account              3,257,810    3,257,810 

Share option reserve                 117,786      101,127 
Other reserves                       103,904      103,904 
Retained earnings                (4,866,439)  (4,662,393) 
                                    ________     ________ 
Total equity attribUtable to 
 OWNERS OF THE PARENT              1,424,129    1,611,516 
 
 
NON CURRENT LIABILITIES 
Borrowings                                 -      110,000 
                                    ________     ________ 
                                           -      110,000 
 
  CURRENT LIABILITIES 
  Trade and other payables           724,478      797,618 
Borrowings                           453,660      287,531 
                                    ________     ________ 
                                   1,178,138    1,085,149 
                                    ________     ________ 
 
Total liabilities                  1,178,138    1,195,149 
                                    ________     ________ 
Total equity and liabilities       2,602,267    2,806,665 
                                    ________     ________ 
 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 January 2016

 
                                             2016       2015 
                                              GBP        GBP 
 
CASH FLOWS GENERATED FROM/(USED 
 IN) OPERATIONS                            37,773  (197,076) 
Interest paid                             (8,565)    (7,767) 
                                          -------    ------- 
NET CASH GENERATED FROM/(USED 
 IN) OPERATING ACTIVITIES                  29,208  (204,843) 
                                          -------    ------- 
 
INVESTING ACTIVITIES 
Purchases of property, plant 
 and equipment                                  -    (1,013) 
Purchases of intangible assets           (40,794)  (149,673) 
                                           ______     ______ 
NET CASH USED IN INVESTING ACTIVITIES    (40,794)  (150,686) 
                                           ______     ______ 
 
FINANCING ACTIVITIES 
Proceeds from issue of ordinary 
 shares                                         -     56,218 
Other loans                                40,000     90,000 
(Repayment)/Payment of invoice 
 discounting facility                     (5,405)      9,200 
                                           ------     ------ 
NET CASH GENERATED FROM FINANCING 
 ACTIVITIES                                34,595    155,418 
                                           ______     ______ 
 
NET INCREASE/(DECREASE) IN CASH 
 AND CASH EQUIVALENTS                      23,009  (200,111) 
 
CASH AND CASH EQUIVALENTS AT 
 BEGINNING OF YEAR                         27,368    227,479 
                                          _______    _______ 
 
CASH AND CASH EQUIVALENTS AT 
 END OF YEAR                               50,377     27,368 
 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 January 2016

 
              ATTRIBUTABLE TO OWNERS OF THE 
               PARENT 
                                               Share-based 
                             Share      Share      payment      Other     Retained 
                           capital    premium      reserve   reserves     earnings                       Total 
                               GBP        GBP          GBP        GBP          GBP                         GBP 
 
As at 31 January 
 2014                    2,778,994  3,209,166      132,516    103,904  (4,676,960)                   1,547,620 
 
Loss for the year                -          -            -          -     (28,056)                    (28,056) 
 
Total comprehensive 
 loss for the year               -          -            -          -     (28,056)                    (28,056) 
 
 
TRANSACTIONS WITH 
 OWNERS IN THEIR 
 CAPACITY AS OWNERS 
Issue of share 
 capital                    32,074     48,644            -          -            -                      80,718 
 
Total transactions 
 with owners in 
 their capacity 
 as owners                  32,074     48,644            -          -            -                      80,718 
Recognition of 
share-based payments             -          -       11,234          -            -                      11,234 
Share options lapsed             -          -     (42,623)          -       42,623                           - 
 
 
As at 31 January 
 2015                    2,811,068  3,257,810      101,127    103,904  (4,662,393)                   1,611,516 
 
Loss for the year                -          -            -          -    (204,046)                   (204,046) 
 
Total comprehensive 
 loss for the year               -          -            -          -    (204,046)                   (204,046) 
 
 
TRANSACTIONS WITH 
 OWNERS IN THEIR 
 CAPACITY AS OWNERS 
Issue of share 
 capital                         -          -            -          -            -                           - 
 
Total transactions 
 with owners in 
 their capacity 
 as owners                       -          -            -          -            -                           - 
Recognition of 
share-based payments             -          -       16,659          -            -                      16,659 
 
 
 
  As at 31 January 
  2016                   2,811,068  3,257,810      117,786    103,904  (4,866,439)                   1,424,129 
 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR FLMPTMBITBBF

(END) Dow Jones Newswires

June 30, 2016 02:00 ET (06:00 GMT)