We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Top Wealth Group Holding Ltd | NASDAQ:TWG | NASDAQ | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.0348 | 4.69% | 0.777 | 0.72 | 0.766 | 0.81 | 0.72 | 0.72 | 28,144 | 20:50:08 |
Hot Features
Premium
RNS Number:2610P
Wireless Group PLC
02 September 2003
2 September 2003
TWG: FIRST EVER PROFITS
THE WIRELESS GROUP PLC ("TWG")
INTERIM RESULTS FOR THE SIX MONTHS ENDED
30 JUNE 2003
Financial results
*Group makes first ever half year profit of #0.6 million (before interest,
tax, associates, goodwill amortisation and exceptionals) against a loss of
#1.7 million
*Turnover rises by 3.8% from #14.2 million to #14.8 million
*Group generates positive half year cash flow
*Net interest cover of 2.2 times
*Local stations increase operating profit from #1.6 million to #2.6
million
*talkSPORT reports operating profit before depreciation of #0.9 million
(2002: loss of #0.3 million)
Operating achievements
*GfK electronic survey confirms talkSPORT as the UK's largest commercial
radio station with an audience of 7.7 million
*Legal action to be launched against RAJAR
*Launch of Soccer Bet magazine
*Stoke digital multiplex licence awarded in February
Outlook
*Increasing revenues in the second half: Local stations showing cash
revenue for July up 27% and August up 22%
*Confident of continuing improvement in overall performance
*Actively seeking fresh acquisitions in radio and magazine sector
Kelvin MacKenzie, Chairman and Chief Executive of TWG, said:
"The Wireless Group has reached profitability a year ahead of forecasts. We have
achieved this against the odds given the severe conditions the entire media
industry has faced over the last three years.
"It has been an historic first half. I look forward to a continuing improvement
in the Group's overall performance."
- ends -
For further information, please contact:
Kelvin MacKenzie
The Wireless Group plc 020 7959 7900
David Rydell / Luke Morton
Bell Pottinger Financial 020 7861 3232
Chairman's statement
For the six months ended 30 June 2003
The Wireless Group has reached profitability a year ahead of forecasts. We have
achieved this against the odds given the severe conditions the entire media
industry has faced over the last three years. This performance is reflected in
revenues that are at a record level, the GfK survey confirming talkSPORT as the
most listened-to commercial radio station in the UK and a cost base that has
been reduced significantly without impacting on operational performance.
In the interim period, we have out-performed our peers with a rise in top-line
income of more than double the industry average. The Group also reached positive
cash flow in the period, reducing debt to a negligible level.
This strong performance reflects the hard work of management and staff which has
turned the Group into a major powerhouse in UK radio broadcasting in less than
four years.
Importantly, we are seeing positive changes in our marketplace with a new-found
appetite among advertisers for our products and we view the prospects for the
Group with increasing confidence.
In the period the Group produced a profit of #0.6 million (before goodwill
amortisation) against a loss for the same period last year of #1.7 million. The
Group was also profitable after net interest over the period. On the above
basis, interest was covered 2.2 times. Turnover for the half year beat the
industry average, rising by 3.8% from #14.2 million to #14.8 million. This
compares to radio industry figures indicating that total advertising revenues
increased by only 1.5%.
The loss on ordinary activities before taxation was #6.5 million (2002: loss of
#8.9 million, which included the profit from the disposal of discontinued
operations of #1.1 million).
The Group also generated a positive cash flow from operating activities of #0.3
million against an outflow of #4.2 million for the comparable period in 2002.
The table below sets out the operating performance for the Group entities.
6 months to 6 months to
30 June 30 June
2003 2002
#m #m
---------- ----------
Turnover
Continuing operations 14.8 14.2
---------- ----------
Operating profit/(loss) before depreciation
and goodwill amortisation
talkSPORT 0.9 (0.3)
ILR - continuing 2.6 1.7
ILR - discontinued - (0.1)
Central costs (2.5) (2.5)
---------- ----------
Operating profit/(loss) before depreciation 1.0 (1.2)
and goodwill amortisation
Depreciation (0.4) (0.5)
---------- ----------
Operating profit/(loss) before goodwill 0.6 (1.7)
amortisation
Goodwill amortisation (6.2) (6.6)
---------- ----------
Reported operating loss (5.6) (8.3)
---------- ----------
Local radio
Our 13 local radio stations ("ILRs") performed exceptionally well in difficult
market conditions, increasing operating profit, before depreciation and goodwill
amortisation, from #1.6 million to #2.6 million. Revenue increased by 11.3% to
#9.2 million (2002: #8.2 million) for the six months to 30 June 2003. In line
with our policy of active management of all assets, this has been achieved
through new revenue initiatives adopted by management in the individual
stations.
We continue to invest in our local stations and have seen the benefits of doing
so in the first six months of the year. We are confident that the second half
will see our ILRs continue to build on the investment made with improving
listener numbers.
The RAJAR results for the quarter to June 2003 showed our ILR stations suffered
a decrease in reach of 8.4% and in total hours listened of 14.1% over the
comparable quarter for 2002. This fall was accounted for as a result of using
the latest census data that reduced the population in our survey areas. In
common with other local radio operators we also found that people switched from
music to speech stations during the war in Iraq.
talkSPORT
talkSPORT put in a sparkling performance, achieving a record operating profit
against the backdrop of a difficult national sales environment. First quarter
revenues increased by 9.5% year on year, compared to an industry movement of
2.3%. The second quarter was set against an exceptionally strong second quarter
for 2002, distorted by the phenomenal impact of the football World Cup. In this
respect the second quarter shows a year on year decrease of 20.5%.
Overall, revenues for the six months decreased by 9.2% from #6.0 million to #5.5
million. Excluding contra revenue the fall reduces to 5.7% and four of the six
months were ahead of last year.
talkSPORT saw operating profits in five of the six months of this reporting
period, resulting in an operating profit before depreciation and goodwill
amortisation for the period of #0.9 million compared to a loss of #0.3 million
for the comparable period. This #1.2 million improvement is the result of less
contra sales being executed combined with effective cost management, relating
principally to the costs of programming and outside broadcasts.
We announced in July 2003 the results of the second quarter of GfK's electronic
research methodology that measures accurately radio audiences. These showed a
weekly reach of 16% or 7.2 million listeners, which is significantly higher than
that recorded under the RAJAR system of audience measurement which reported a 4%
reach or 2.2 million listeners. The research confirms that talkSPORT is the
largest commercial radio station in the UK.
To coincide with the launch of the football season we have launched a football
betting magazine, Soccer Bet. This is a specialist magazine but in a growing
market of the betting industry. We are publishing Soccer Bet with a small team
of dedicated staff. Early indications show that the magazine is popular with
footie fans.
RAJAR
We were extremely disappointed when RAJAR rejected the opportunity to introduce
electronic audience measurement, preferring instead to fall back on its
haphazard diary system, a methodology entirely out of touch with modern
listening habits which grossly understates the true level of our audience. It
appears that some elements of the radio industry are preventing the adoption of
electronic measurement. We have asked RAJAR to substantiate its claim that its
testing produced "anomalous" results. At the time of writing they have not yet
done so. RAJAR's stance is impeding the Group's revenue potential and we view
this very seriously. As a consequence we have instructed Counsel to investigate
legal action against RAJAR.
Digital radio
We were awarded the Stoke digital multiplex licence in February this year. This
licence was awarded to our joint venture with EMAP thus sharing the cost of
carrying the multiplex. Digital is the future and the Group will continue to
support the digital concept. With the take-up of digital radios increasing
rapidly as the cost of the units falls and the range of sets available widens,
we are positioned to take advantage of this new transmission platform, both as
owners and broadcasters.
Outlook
Our prospects look good. We are seeing stronger demand for advertising - both at
national and local levels. July's cash revenues for our local stations were up
27% year on year and August should be 22% ahead of last year. Our view is that
the worst of the bad times are behind us. Importantly, the Group has used the
last three years to quietly restructure and, particularly as a result of
effective cost control, we are now in a position to see any improvement in
revenue directly fall through to further improved operating profits.
It has been an historic first half. I look forward to a continuing improvement
in the Group's overall performance.
Kelvin MacKenzie
Chairman and Chief Executive
2 September 2003
Consolidated Profit and Loss Account
6 months to 6 months to Year ended
30 June 30 June 31 December
2003 2002 2002
Notes #'000 #'000 #'000
------ -------- -------- ---------
Turnover
Continuing 14,793 14,244 28,470
operations -------- -------- ---------
Administration
expenses
goodwill (6,133) (6,569) (15,204)
amortisation
other administration (14,233) (15,941) (32,271)
expenses
-------- -------- ---------
3 (20,366) (22,510) (47,475)
-------- -------- ---------
Operating loss
Continuing (5,573) (8,266) (19,005)
operations
Income from interests (16) 134 87
in associate
undertakings
Profit on sale of 4 - 1,142 1,141
discontinued
operations
Interest receivable 318 431 880
and similar income
Amounts written off (642) (1,545) (1,760)
fixed asset
investments
Interest payable and (577) (779) (1,603)
similar charges -------- -------- ---------
Loss on ordinary (6,490) (8,883) (20,260)
activities before
taxation
Tax on loss on - - -
ordinary activities
-------- -------- ---------
Loss on ordinary (6,490) (8,883) (20,260)
activities after
taxation
Minority interests - (113) (70) (113)
equity interests
-------- -------- ---------
Retained loss for the 6 (6,603) (8,953) (20,373)
period -------- -------- ---------
Basic loss per share:
- Loss attributable to 5 (0.07) (0.09) (0.21)
each ordinary share -------- -------- ---------
(#)
- Loss attributable to 5 (68.21) (92.48) (210.45)
each "B" ordinary -------- -------- ---------
share (#)
Basic loss per share
before profit on sale
of discontinued
operations:
- Loss attributable to 5 (0.07) (0.10) (0.22)
each ordinary share -------- -------- ---------
(#)
- Loss attributable to 5 (68.21) (104.28) (222.24)
each "B" ordinary -------- -------- ---------
share (#)
Consolidated Balance Sheet
30 June 30 June 31 December
2003 2002 2002
Notes #'000 #'000 #'000
------ ---------- ---------- ----------
Fixed assets
Intangible assets
Goodwill 28,788 42,966 34,845
Other intangible assets 11,471 13,350 12,523
Tangible assets 2,247 2,832 2,584
Investments 1,083 2,132 1,726
---------- ---------- ----------
43,589 61,280 51,678
Current assets
Debtors 8,711 10,850 8,241
Loan notes receivable - 6,000 6,000
Short term deposits 15,449 15,552 15,449
Cash at bank and in hand 1,023 364 418
---------- ---------- ----------
25,183 32,766 30,108
Creditors: amounts falling
due within one year
Bank and other borrowings (5,782) (11,126) (11,287)
Loan notes (15,449) (15,552) (15,449)
Other creditors (13,248) (12,695) (13,082)
---------- ---------- ----------
(34,479) (39,373) (39,818)
---------- ---------- ----------
Net current liabilities (9,296) (6,607) (9,710)
---------- ---------- ----------
Total assets less current 34,293 54,673 41,968
liabilities
Creditors: amounts falling
due after more than one
year
Bank and other borrowings (125) (331) (219)
Other creditors (9,311) (11,471) (10,419)
---------- ---------- ----------
(9,436) (11,802) (10,638)
Provisions for liabilities (143) (197) (158)
and charges
---------- ---------- ----------
Net assets 24,714 42,674 31,172
---------- ---------- ----------
Capital and reserves
Called up share capital 9,682 9,681 9,682
Share premium account 6 35,064 35,064 35,064
Merger reserve 6 81,820 81,820 81,820
Profit and loss account 6 (102,173) (83,956) (95,570)
---------- ---------- ----------
Equity shareholders funds 24,393 42,609 30,996
Equity minority interests 321 65 176
---------- ---------- ----------
Total capital employed 24,714 42,674 31,172
---------- ---------- ----------
Consolidated Cash Flow Statement
6 months to 6 months to Year ended
30 June 30 June 31 December
2003 2002 2002
Notes #'000 #'000 #'000
------ --------- --------- ---------
Net cash inflow/ 7 328 (4,181) (3,656)
(outflow) from
operating activities
Dividends from - 7 7
associates
Return on investments 8 9 (331) (716)
and servicing of
finance
Capital expenditure 8 (133) 26 (382)
and financial
investment
Acquisitions 8 - - 271
Disposals 8 - 999 999
--------- --------- ---------
Cash inflow/(outflow) 204 (3,480) (3,477)
before management of
liquid resources and
financing
Financing and 8 (104) 2,811 3,702
management of liquid --------- --------- ---------
resources
Increase/(decrease) in 100 (669) 225
cash in the period --------- --------- ---------
Notes
1. Basis of accounting
These statements do not constitute statutory accounts within the meaning of
section 240 of the Companies Act 1985. Statutory accounts for the year ended
31 December 2002, which include an unqualified audit report, have been filed
with the Registrar of Companies.
The unaudited results have been prepared in accordance with the accounting
policies set out in the Annual Report for the year ended 31 December 2002.
Copies of the interim report will be sent to shareholders and will be
available to the public at the registered office of The Wireless Group plc,
18 Hatfields, London SE1 8DJ.
2. Segmental analysis
All turnover arose wholly within the United Kingdom. The Directors consider
that the business of The Wireless Group plc is all of one class.
3. Administration expenses
A charge of #1,490,000 was included in administration expenses for the year
ended 31 December 2002 as a provision against certain football rights
contracts. This charge in the view of the Directors has brought these future
obligations to market value.
4. Profit on sale of discontinued operations
On 19 February 2002, 1458 Big AM Limited, a wholly owned subsidiary,
disposed of its BIG AM radio licence for #235,000 after costs.
On 31 January 2002 the Group disposed of its 24.5% associate undertaking
Kingdom FM Ltd. The proceeds, after costs, on the disposal were #999,000,
which realised a profit on disposal of #906,000.
5. Loss per share
The basic loss per share attributable to each ordinary share was #0.07
(2002: #0.09) and to each "B" ordinary share was #68.21 (2002: #92.48) have
been calculated on the retained losses for the six months to 30 June 2003 of
#6,603,000 (2002: #8,953,000) and the weighted average share capital for the
period of #9,682,000 (2002: #9,681,000).
The adjusted loss for the period attributable to each ordinary share was
#0.07 (2002: #0.10 after adding back the profit on sale of Kingdom FM and
the Big AM licence) and to each "B" ordinary share was #68.21 (2002:
#104.28). This figure has been calculated on the losses attributable to
holders of ordinary shares of #6,603,000 (2002: #10,095,000 after adding
back the profit on sale of Kingdom and the Big AM licence) and weighted
average share capital for the period of #9,682,000 (2002: #9,681,000).
The loss attributable to ordinary shareholders and the weighted share
capital that would be used for the purpose of calculating the diluted loss
attributable to each ordinary share are identical to those used for the
basic loss attributable to each share. This is because the exercise of share
options would have the effect of reducing the loss attributable to each
ordinary share and is therefore not dilutive under the terms of FRS 14.
6. Reserves
Merger reserve Share premium Profit and loss
account account
#'000 #'000 #'000
----------- ---------- ----------
At 1 81,820 35,064 (95,570)
January
2003
Retained - - (6,603)
loss for ----------- ---------- ----------
the
period
At 30 June 81,820 35,064 (102,173)
2003 ----------- ---------- ----------
7.Reconciliation of operating loss to net cash inflow/(outflow) from operating
activities
6 months to 6 months to
30 June 30 June
2003 2002
#'000 #'000
----------- ----------
Operating loss (5,573) (8,266) (19,005)
Depreciation charges 411 481 942
Loss/(profit) on - 9 (17)
disposal of fixed
assets
Goodwill 6,133 6,569 13,076
amortisation
Goodwill impairment - - 2,128
Licence amortisation 1,052 827 1,654
Loss on disposal of - - 30
trade investments
(Increase)/decrease in (721) (1,826) 1,052
debtors
Decrease in (974) (1,975) (3,516)
creditors ----------- ---------- ----------
Net cash inflow/ 328 (4,181) (3,656)
(outflow) from ----------- ---------- ----------
operating activities
8. Analysis of cash flows for headings netted in the cash flow statement
6 months to 6 months to Year ended
30 June 30 June 31 December
2003 2002 2002
#'000 #'000 #'000
----------- ---------- ----------
Returns on
investments and
servicing of
finance
Interest 533 292 598
received
Dividends 38 36 78
received
Interest paid (562) (659) (1,392)
----------- ---------- ----------
Net cash inflow/ 9 (331) (716)
(outflow) ----------- ---------- ----------
Capital
expenditure and
financial
investment
Purchase of (74) (350) (596)
tangible fixed
assets
Disposal of - 141 197
tangible fixed
assets
Disposal of - 235 235
Licence
Purchase of fixed (15) - (81)
asset
investments
Purchase of (44) - (137)
minority ----------- ---------- ----------
interest
Net cash (133) 26 (382)
(outflow)/ ----------- ---------- ----------
inflow
Acquisitions and
disposals
Acquisitions
Purchase of - - (766)
subsidiary
undertakings
Cash at bank and - - 1,037
in hand ----------- ---------- ----------
acquired
Net cash inflow - - 271
----------- ---------- ----------
Disposals
Sale of - 999 999
associate ----------- ---------- ----------
Net cash inflow - 999 999
----------- ---------- ----------
Financing and
management of
liquid
resources
Financing
Net (reduction)/ (6,000) 3,000 4,000
addition in
borrowings
Proceeds from - - 1
exercise of share
options
Redemption of 6,000 - -
loan notes
receivable
Repayment of loan - - (103)
notes payable
Capital element (104) (189) (299)
of finance lease ----------- ---------- ----------
rental payments
(104) 2,811 3,599
Management of
liquid
resources
Decrease in short - - 103
term deposits
----------- ---------- ----------
Net cash (104) 2,811 3,702
(outflow)/ ----------- ---------- ----------
inflow
9. *Analysis and reconciliation of movement in net debt
6 months to 6 months to Year ended
30 June 30 June 31 December
2003 2002 2002
#'000 #'000 #'000
----------- ---------- ----------
Increase/(decrease) in 100 (669) 225
cash in the period
Cash outflow/(inflow) from 104 (2,811) (3,701)
decrease/(increase) in ----------- ---------- ----------
debt & lease financing
Change in net debt 204 (3,480) (3,476)
resulting from cash
flows
Finance leases - (31) (31)
----------- ---------- ----------
Movement in net debt in 204 (3,511) (3,507)
period
Opening net debt (5,088) (1,581) (1,581)
----------- ---------- ----------
Closing net debt (4,884) (5,092) (5,088)
----------- ---------- ----------
1 January Cash 30 June
2003 Flow 2003
#'000 #'000 #'000
---------- -------- ---------
Bank overdraft (1,081) (505) (1,586)
Cash at bank and in hand 418 605 1,023
---------- -------- ---------
(663) 100 (563)
Debt due within one year (10,000) 6,000 (4,000)
Loan notes receivable 6,000 (6,000) -
Loan notes (15,449) - (15,449)
Short term deposits 15,449 - 15,449
Finance leases (425) 104 (321)
---------- -------- ---------
(5,088) 204 (4,884)
---------- -------- ---------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SSAFWFSDSEEU
1 Year Top Wealth Chart |
1 Month Top Wealth Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
