Half Yearly Report

 

TIDMAPA 
 
RNS Number : 8947Z 
Apace Media PLC 
30 September 2009 
 

 
 
 
 
 
 
Apace Media plc ("Apace" or the "Company") 
 
 
Interim results for the six months ended 30 June 2009 
 
 
 
 
The Company is pleased to announce its Interim results for the six months ended 
30 June 2009. These are also available on the Company's website at 
www.apacegroup.co.uk 
 
 
Summary: 
 
 
  *  Turnover of GBP5.33m (2008:GBP6.38m) 
  *  Share of profit of Associate GBP504,000 (2008: GBP385,000) 
  *  EBITDA of GBP324,000 (2008: GBP652,000) 
  *  Pre tax of GBP227,000 (2008:GBP436,000) 
  *  Net assets of GBP9.8m and cash of GBP0.38m 
  *  Improved results from broadcasting, sports and factual television production 
 
Apace Media Plc: 
Martin Johnston/ Didier Stoessel    [phone] 
 
 
Seymour Pierce: 
John Depasquale                      [phone] 
 
 
 
 
 
 
   OVERVIEW 
 
 
The Company is pleased to report that the first half of the 2009 fiscal year has 
seen Apace deliver a satisfactory performance in a challenging environment. The 
Company's television businesses in broadcasting, sports and factual production, 
and programme sales and distribution showed improved results to the comparable 
2008 period, at the same time as the Group raised fresh capital and strengthened 
liquidity. 
 
 
Comparisons to 2008 are adversely affected by the steep decline at Apace Music 
due to insolvencies of major UK music distributors in the final quarter of 2008 
as previously reported to shareholders. 
 
 
During the half-year, turnover was GBP5.33 million compared to GBP6.38 million 
for 2008. Excluding the decline in the Music business, turnover in the other 
businesses increased by GBP616,000. 
 
 
Group profit before tax was GBP227,000 compared to GBP436,000 in 2008 reflecting 
the losses in Music, adverse exchange impacts, as well as one-off legal and 
financial expenses for a capital raise and our migration to Luxembourg. 
 
 
Operational Review 
 
 
Television Production 
 
 
The performance of our television production companies was buoyant in a 
difficult market. Pro-Active delivered record results, with revenues up 70% to 
GBP1.45 million and profit before tax up five-fold to GBP425,000, servicing a 
diverse range of clients in rugby, sailing, power boating, squash, and air 
sports. Revenue from the distribution of events and magazine programmes 
continues to grow and Pro-Active is increasing its operating synergies with 
Steadfast International, who have contributed additional sales support. The 
Company's strong relationship with the IRB was further illustrated by the highly 
successful production and international distribution of the Rugby Sevens World 
Cup during this period. 
 
 
Steadfast Television improved profit before tax by 68% to GBP247,000 on flat 
revenues, benefitting from improved cost-management and increased license 
revenue from the sale of its programmes through Steadfast International. 
Steadfast has succeeded in developing projects with multiple series which 
strengthens Steadfast International's programme library and validates the 
combined business model. In a difficult commissioning 
environment, Steadfast has demonstrated that its factual genre delivers strong 
popular audiences at a reasonable price. 
 
 
Steadfast International continues to build an impressive catalogue, combining 
Steadfast Television output as well as some select third-party productions and 
lifted revenues 29% to GBP594,000 compared to GBP461,000 in 2008. It continues 
to expand its number of broadcast clients and is able to exploit successful 
re-commissions with repeat customers. Profit before tax was GBP30,000 worse than 
in 2008 due primarily to negative foreign exchange movements which have now 
stabilized. 
 
 
As the directors informed shareholders in May 2008 and subsequently, we have 
sought a stronger strategic position for the UK television production businesses 
in recognition of our lack of scale in an activity of poor commercial visibility 
and have now entered into discussions with several parties. 
 
 
 
 
Apace Music 
 
 
As previously reported, on 5 February 2009, Apace Music entered into a Company 
Voluntary Arrangement ("CVA") with its third-party creditors in order to 
continue to trade with their support. This was necessitated by the failure of 
the company's main distribution channels, operating CD distribution across the 
United Kingdom, entering into Administration during November and December 2008. 
 
 
Results for Apace Music showed a dramatic drop in revenue to GBP263,000 from 
GBP1.93 million in the same period of 2008, and the 2008 profit before tax of 
GBP170,000 swung to a loss of GBP217,000. Tight cash control has enabled Apace 
Music to comply with the CVA terms and GBP105,000 has been paid into the CVA 
account as at the date of this statement. Apace Music is funding this loss 
itself since Apace Media ceased funding the subsidiary with effect from 
mid-January 2009. 
 
 
The directors are reviewing the Group's music strategy in light of the major 
structural changes to the industry. 
 
 
 
 
Eastern European Broadcasting 
 
 
Our share of Balkan Media Group's (BMGL) profit was GBP504,000, an improvement 
of 31% over the prior year in a very difficult advertising market. BMGL's dual 
subscription/advertising model proved resilient in the downturn. 
 
 
BMGL reports here for the last time as an associate of Apace, as the merger into 
TV Nova (Bulgaria) came into effect as a subsequent event on 5 August 2009. In 
future it will be held as a non-consolidated equity shareholding. In addition to 
the 5% shareholding in the expanded TV Nova, Apace will, by completion in the 
fourth quarter of this year, have received loan repayments and a liquidation 
dividend amounting in total to about EUR 1.77m (GBP1.6m). 
 
 
I refer investors to the website of Modern Times Group (www.mtg.se) to review 
the results and commentary of TV Nova. 
 
 
Current trading and future prospects 
 
 
The Group, with the exception of Apace Music, has been a stable performer 
throughout the extremely turbulent economic downturn of the first half of 2009, 
during which it executed a successful private placement and bolstered its 
liquidity. As of today the Group has approximately GBP 2.2 million in cash on 
its balance sheet. The Group has improved working capital, finalized a valuable 
merger of its Bulgarian broadcasting interests, and relocated board level 
management to Luxembourg for the efficient conduct of the Group's affairs. These 
are considerable accomplishments and serve to enhance long-term shareholder 
value. 
 
 
The directors continue to believe that the UK television production and music 
businesses lack scale and could be valuable components to larger concerns. The 
directors will seek to maximize the value of these assets in recognition of the 
continued uncertainty in a cautious media environment. 
 
 
 
 
 
Roby Burke 
Executive Chairman 
30 September 2009 
 
 
 
 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Consolidated statement of comprehensive income                                                                              | 
+-----------------------------------------------------------------------------------------------------------------------------+ 
|                                           |           |                                  6 months |    6 months | 12 months | 
|                                           |           |                                     to 30 |       to 30 |  ended 31 | 
|                                           |           |                                      June |        June |  December | 
+                                           +           +-------------------------------------------+-------------+-----------+ 
|                                           |           |                                      2009 |        2008 |      2008 | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Continuing operations                     |           |                               (unaudited) | (unaudited) | (audited) | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
|                                           | Notes     |                                   GBP'000 |     GBP'000 |   GBP'000 | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
|                                           |           |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Revenue                                   |           |                                     5,331 |       6,385 |    11,518 | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Cost of sales                             |           |                                   (3,532) |     (4,140) |   (8,360) | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Gross profit                              |           |                                     1,799 |      2,245  |     3,158 | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Administrative expenses                   |           |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
|   Exceptional                             | 3         |                                         - |       (130) |   (3,226) | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
|    Normal                                 |           |                                   (2,076) |     (2,064) |   (3,613) | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Operating (loss) / profit and (loss) /    |           |                                     (277) |         51  |   (3,681) | 
| profit on ordinary activities before      |           |                                           |             |           | 
| interest                                  |           |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Finance costs                             |           |                                         - |           - |      (21) | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Finance income                            |           |                                         - |          24 |        59 | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Share of profit / (loss) of associate     | 7         |                                       504 |         385 |       588 | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Profit / (loss) on ordinary activities    |           |                                       227 |        460  |   (3,055) | 
| before income tax                         |           |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Income tax expense on ordinary activities | 4         |                                         - |           - |        40 | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Profit / (loss) on ordinary activities    | 2         |                                       227 |        460  |   (3,015) | 
| after income tax from continuing          |           |                                           |             |           | 
| operations                                |           |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
|                                           |           |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Discontinued operations                   |           |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Net profit from discontinued operations   | 2         |                                         - |           - |         - | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
|                                           |           |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Profit/(loss) for the period              |           |                                       227 |        460  |   (3,015) | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
|                                           |           |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Other comprehensive income                |           |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Exchange difference on Associate's        | 2         |                                         2 |        (61) |     (183) | 
| opening net assets                        |           |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Total comprehensive income for the period |           |                                       229 |         399 |   (3,198) | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
|                                           |           |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Total comprehensive income attributable   |           |                                           |             |           | 
| to:                                       |           |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Shareholders' equity                      | 11        |                                       288 |         321 |   (3,041) | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Minority interest                         |           |                                      (59) |          78 |     (157) | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
|                                           |           |                                       229 |        399  |   (3,198) | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
|                                           |           |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Earnings per share                        | 5         |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| From continuing and discontinued          |           |                                           |             |           | 
| operations                                |           |                                           |             |           | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
| Basic and diluted (pence)                 |           |                                      0.23 |        0.41 |    (3.04) | 
+-------------------------------------------+-----------+-------------------------------------------+-------------+-----------+ 
 
 
 
 
 
 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Consolidated statement of financial position                                                   | 
+------------------------------------------------------------------------------------------------+ 
|                                                |       |             |             |           | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
|                                                |       | 30 June     | 30 June     | 31        | 
|                                                |       |             |             | December  | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
|                                                |Notes  | 2009        | 2008        | 2008      | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
|                                                |       | (unaudited) | (unaudited) | (audited) | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
|                                                |       | GBP'000     | GBP'000     | GBP'000   | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Assets                                         |       |             |             |           | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Non-current assets                             |       |             |             |           | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Property, plant and equipment                  |       |         453 |         462 |       475 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Intangible assets - goodwill                   |       |         150 |       2,633 |         - | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Intangible assets - other                      |       |         966 |         877 |       864 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Investment in associate                        |  7    |       5,803 |       5,044 |     5,198 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Available for sale financial assets            |       |         274 |         188 |       169 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Investments - acquisition projects             |       |          73 |         608 |        73 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Total non-current assets                       |       |       7,719 |      9,812  |     6,779 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
|                                                |       |             |             |           | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Current assets                                 |       |             |             |           | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Inventories                                    |       |         630 |         925 |       644 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Trade and other receivables                    |       |       4,169 |       5,042 |     4,269 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Cash and cash equivalents                      |       |         384 |           - |       256 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Total current assets                           |       |       5,183 |      5,967  |     5,169 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Total assets                                   |       |      12,902 |     15,779  |    11,948 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
|                                                |       |             |             |           | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Liabilities                                    |       |             |             |           | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Non-current liabilities                        |       |             |             |           | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Deferred tax liabilities                       |       |          24 |          65 |        24 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Total non-current liabilities                  |       |          24 |         65  |        24 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
|                                                |       |             |             |           | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Current liabilities                            |       |             |             |           | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Trade and other current payables               |       |       2,784 |       2,605 |     2,884 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Other taxes and social security                |       |         212 |         192 |       212 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Borrowings                                     |  8    |           - |         908 |         - | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Total current liabilities                      |       |       2,996 |      3,705  |     3,096 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Total liabilities                              |       |       3,020 |      3,770  |     3,120 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Net assets                                     |       |       9,882 |     12,009  |     8,828 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
|                                                |       |             |             |           | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Capital and reserves                           |       |             |             |           | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Called up share capital                        |  9    |       8,636 |      8,135  |     8,136 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Share premium                                  |  10   |       7,311 |      6,908  |     6,908 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Other reserve                                  |  10   |       1,375 |      1,375  |     1,375 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Translation reserve                            |  10   |       (180) |        (61) |     (183) | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Shares to be issued                            |       |          60 |          61 |        60 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Profit & loss account                          |  10   |     (7,233) |     (4,270) |   (7,519) | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Equity shareholders' funds                     |       |       9,969 |     12,148  |     8,777 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Minority interests                             |       |        (87) |       (139) |        51 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
| Capital employed                               |       |       9,882 |     12,009  |     8,828 | 
+------------------------------------------------+-------+-------------+-------------+-----------+ 
 
 
 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Consolidated statement of cash flows          | 6 months to | 6 months to  |   Year ended | 
|                                               |             |              |              | 
+-----------------------------------------------+-------------+--------------+--------------+ 
|                                          |    |     30 June |      30 June |  31 December | 
+------------------------------------------+----+-------------+--------------+--------------+ 
|                                          |    |        2009 |         2008 |         2008 | 
+------------------------------------------+----+-------------+--------------+--------------+ 
|                                          |    |     GBP'000 |      GBP'000 |      GBP'000 | 
+------------------------------------------+----+-------------+--------------+--------------+ 
|                                          |    | (unaudited) |  (unaudited) |    (audited) | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Cash flows from operating activities     |    |             |              |              | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Cash (used in) / generated from          |    |       (273) |      (1,351) |        (847) | 
| operations (note 11)                     |    |             |              |              | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Interest paid                            |    |        (11) |           -  |         (21) | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Net cash (used in) / generated from operating |       (284) |      (1,351) |        (868) | 
| activities                                    |             |              |              | 
+-----------------------------------------------+-------------+--------------+--------------+ 
|                                          |    |             |              |              | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Purchase of subsidiary undertakings      |    |       (150) |            - |            - | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Investment in associate                  |    |        (99) |        (135) |        (312) | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Purchase of tangible fixed assets        |    |        (55) |         (75) |        (148) | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Purchase of intangible fixed assets      |    |       (122) |         (64) |        (136) | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Purchase of investment property          |    |           - |         (82) |         (82) | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Disposal of investment property          |    |           - |          246 |          221 | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Proceeds from termination of investment  |    |           - |            - |          888 | 
| project                                  |    |             |              |              | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Investment project work in progress      |    |           - |         (88) |         (88) | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Interest received                        |    |          11 |           24 |           59 | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Net cash (used in)/generated from investment  |       (415) |       (174)  |          402 | 
| activities                                    |             |              |              | 
+-----------------------------------------------+-------------+--------------+--------------+ 
|                                          |    |             |              |              | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Proceeds from issue of ordinary shares   |    |         904 |          406 |          406 | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Net loan repayment by/ (made to)         |    |           - |        (307) |        (163) | 
| associate                                |    |             |              |              | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Increase in bank overdrafts              |    |           - |          908 |            - | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Dividends paid - minority interest       |    |        (77) |         (37) |         (75) | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Net cash generated from / (used in)      |    |         827 |         970  |          168 | 
| financing activities                     |    |             |              |              | 
+------------------------------------------+----+-------------+--------------+--------------+ 
|                                          |    |             |              |              | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Net decrease in cash, cash equivalents   |    |             |              |              | 
+------------------------------------------+----+-------------+--------------+--------------+ 
|  and bank overdrafts                     |    |         128 |        (555) |        (299) | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Cash, cash equivalents and bank          |    |             |              |              | 
| overdrafts at                            |    |             |              |              | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| beginning of the period                  |    |         256 |          555 |          555 | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| Cash and cash equivalents at             |    |             |              |              | 
+------------------------------------------+----+-------------+--------------+--------------+ 
| the end of the period                    |    |         384 |           -  |          256 | 
+------------------------------------------+----+-------------+--------------+--------------+ 
 
 
 
          Consolidated statement of changes in equity 
          For the period from 1 January 2008 to 30 June 2009 
 
 
 
 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
|                        | Called  |  Share  |  Other  |Translation  | Shares  |Retained  |  Total  | 
|                        |   up    |premium  |reserve  |  reserve    |  to be  |earnings  |         | 
|                        |  share  |         |         |             | issued  |          |         | 
|                        |capital  |         |         |             |         |          |         | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
|                        |GBP'000  |GBP'000  |GBP'000  |  GBP'000    |GBP'000  | GBP'000  |GBP'000  | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
|                        |         |         |         |             |         |          |         | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
| At 1 January 2008      |  7,797  |  6,840  |  1,375  |           - |     49  |  (4,652) | 11,409  | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
| Share placings         |    339  |     68  |       - |           - |       - |        - |    407  | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
| Total comprehensive    |       - |       - |       - |        (61) |       - |     382  |    321  | 
| income for the period  |         |         |         |             |         |          |         | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
| Movement in period     |       - |       - |       - |           - |     12  |        - |     12  | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
| 30 June 2008           |  8,136  |  6,908  |  1,375  |        (61) |     61  |  (4,270) | 12,149  | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
| Prior year adjustment  |       - |       - |       - |           - |       - |      (9) |     (9) | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
| Total comprehensive    |       - |       - |       - |       (122) |       - |  (3,240) | (3,362) | 
| income for the period  |         |         |         |             |         |          |         | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
| Movement in period     |       - |       - |       - |           - |     (1) |        - |     (1) | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
| 31 December 2008       |   8,136 |   6,908 |   1,375 |       (183) |      60 |  (7,519) |   8,777 | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
| Share placing          |     500 |     500 |       - |           - |       - |        - |   1,000 | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
| Expenses related to    |       - |    (96) |       - |           - |       - |        - |    (96) | 
| share placing          |         |         |         |             |         |          |         | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
| Total comprehensive    |       - |       - |       - |           2 |       - |      286 |     288 | 
| income for the period  |         |         |         |             |         |          |         | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
| 30 June 2009           |   8,636 |   7,312 |   1,375 |       (181) |      60 |  (7,233) |   9,969 | 
+------------------------+---------+---------+---------+-------------+---------+----------+---------+ 
 
 
  Notes to the interim report 
 
 
1. Summary accounting policies 
 
 
Basis of preparation 
 
 
The condensed consolidated interim financial statements for the six months ended 
30 June 2009 have been prepared under applicable International Financial 
Reporting Standards adopted by the European Union ("IFRS") which have been 
adopted and incorporated into the principal accounting policies as set out 
below. Where appropriate, the reconciliation between UK GAAP and IFRS is given 
in the notes to the accounts. 
 
 
The financial information included in this document is unaudited and does not 
comprise statutory accounts as defined by section 434(3) of the Companies Act 
2006. The comparative figures for the financial year ended 31 December 2008 are 
those in the statutory accounts for that financial year. The statutory accounts 
for the year ended 31 December 2008, prepared in accordance with IFRS, have been 
filed with the Registrar of Companies. The auditor gave an unqualified report, 
without any statement under section 237(2) or (3) of the Companies Act 1985. 
 
 
This interim financial information has been prepared on the basis of the 
recognition and measurement requirements of adopted IFRS as at 30 June 2009 that 
are effective as at 30 June 2009 and in accordance with the provisions of IAS 
34, Interim Financial Reporting. Based on these adopted IFRS, the directors have 
applied the accounting policies which they expect to apply when the financial 
statements are prepared for the year ending 31 December 2009. 
 
 
The directors do not consider that there are any material departures from the 
accounting policies applied in the 31 December 2008 financial statements to 
those used in preparing these interim financial statements. The principles and 
requirements of IFRS 8 (Operating Segments) and IAS 1 (Presentation of Financial 
Statements (Revised)) have been reflected in these interim financial statements 
and comparative disclosures restated as required. Neither standard required an 
adjustment to the underlying financial data as a result of its implementation. 
 
 
Basis of consolidation 
 
 
The Group financial statements consolidate the financial statements of the 
Company and its subsidiary undertakings made up to 31 December each year. 
 
The results of subsidiary undertakings acquired or disposed of in the year are 
included in the consolidated statement of comprehensive income from the date of 
acquisition or up to the date of disposal. 
 2. Continuing activities and assets and liabilities by segment 
 
 
+---------------------+-------------------+------------+------------+------------+ 
|                     |                   | 6 months   | 6 months   | 12 months  | 
|                     |                   | to 30 June | to 30 June | ended 31   | 
|                     |                   |            |            | December   | 
+                     +                   +------------+------------+------------+ 
|                     |                   | 2009                | 2008              | 2008       | 
+---------------------+-------------------+---------------------+-------------------+------------+ 
|                     |                   | GBP'000    | GBP'000    | GBP'000    | 
+---------------------+-------------------+------------+------------+------------+ 
|                     |                   |            |            |            | 
+---------------------+-------------------+------------+------------+------------+ 
| Continuing          |                   |            |            |            | 
| activities          |                   |            |            |            | 
+---------------------+-------------------+------------+------------+------------+ 
| Content Creation    | Revenue           |      5,331 |     6,385  |     11,518 | 
+---------------------+-------------------+------------+------------+------------+ 
|                     | Expenses          |    (5,008) |    (6,103) |   (12,027) | 
+---------------------+-------------------+------------+------------+------------+ 
|                     | Goodwill          |          - |          - |    (3,096) | 
|                     | impairment        |            |            |            | 
+---------------------+-------------------+------------+------------+------------+ 
|                     | Taxation          |          - |          - |         40 | 
+---------------------+-------------------+------------+------------+------------+ 
|                     |                   |        323 |       282  |    (3,565) | 
+---------------------+-------------------+------------+------------+------------+ 
|                     |                   |            |            |            | 
+---------------------+-------------------+------------+------------+------------+ 
| Unallocated         | Expenses          |      (600) |      (207) |       (38) | 
+---------------------+-------------------+------------+------------+------------+ 
|                     |                   |            |            |            | 
+---------------------+-------------------+------------+------------+------------+ 
| Associate           | Share of profit / |        504 |       385  |        588 | 
|                     | (loss)            |            |            |            | 
+---------------------+-------------------+------------+------------+------------+ 
| Profit / (loss) from continuing         |        227 |        460 |    (3,015) | 
| activities                              |            |            |            | 
+-----------------------------------------+------------+------------+------------+ 
|                     |                   |            |            |            | 
+---------------------+-------------------+------------+------------+------------+ 
| Attributable to:    | Equity            |        286 |        382 |    (2,858) | 
|                     | shareholders      |            |            |            | 
+---------------------+-------------------+------------+------------+------------+ 
|                     | Minority          |       (59) |         78 |      (157) | 
|                     | interests         |            |            |            | 
+---------------------+-------------------+------------+------------+------------+ 
|                     |                   |            |            |            | 
+---------------------+-------------------+------------+------------+------------+ 
|                     |                   |            |            |            | 
+---------------------+-------------------+------------+------------+------------+ 
| Assets &            |                   |            |            |            | 
| liabilities         |                   |            |            |            | 
+---------------------+-------------------+------------+------------+------------+ 
| Content Creation    | Assets            |      3,977 |      4,518 |      3,822 | 
+---------------------+-------------------+------------+------------+------------+ 
|                     | Liabilities       |      2,691 |      2,410 |      2,793 | 
+---------------------+-------------------+------------+------------+------------+ 
| Unallocated         | Assets            |      3,122 |      6,216 |      2,928 | 
+---------------------+-------------------+------------+------------+------------+ 
|                     | Liabilities       |        329 |      1,360 |        327 | 
+---------------------+-------------------+------------+------------+------------+ 
| Associate           | Assets            |      5,803 |      5,044 |      5,198 | 
+---------------------+-------------------+------------+------------+------------+ 
|                     | Liabilities       |          - |          - |          - | 
+---------------------+-------------------+------------+------------+------------+ 
| Total               | Assets            |     12,902 |     15,778 |     11,948 | 
+---------------------+-------------------+------------+------------+------------+ 
|                     | Liabilities       |      3,020 |      3,770 |      3,120 | 
+---------------------+-------------------+------------+------------+------------+ 
|                     |                   |            |            |            | 
+---------------------+-------------------+------------+------------+------------+ 
 
 
The transition from the provisions of IAS 14, Segment Reporting, to IFRS 8 has 
not given rise to any specific changes in the way Apace Media plc reports its 
operating segments; however, Management have reviewed the current segments and 
have confirmed the existing approach to be satisfactory under the provisions of 
IFRS 8. 
 
 
 
 
3. Exceptional expenses 
 
 
There are no exceptional expenses for the period under review. 
 
 
 4. Tax on profit on ordinary activities 
 
 
Due to the losses brought forward from the previous period, no provision has 
been made for UK taxation on trading. 
 
 
5. Profit / (loss) per ordinary share 
 
 
The calculations of profit / (loss) per share are based on the following profits 
/ (losses) and numbers of shares: 
 
 
+------------------------------+--------+---------+---------+---------+---------+--------+ 
|                              |  6 months ended  |  6 months ended   | 12 months ended  | 
+------------------------------+------------------+-------------------+------------------+ 
|                              |  30 June 2009    |   30 June 2008    |31 December 2008  | 
+                              +------------------+-------------------+------------------+ 
|                              |                              |        |         |         |         |         | 
+                              +------------------------------+--------+---------+---------+---------+---------+ 
|                              | Profit                       | per    | Profit  | per     | Loss    | per     | 
|                              |                              | share  |    /    | share   |         | share   | 
|                              |                              |        | (loss)  |         |         |         | 
+                              +------------------------------+--------+---------+---------+---------+---------+ 
|                              |                      GBP'000 |      p | GBP'000 |       p | GBP'000 |       p | 
+------------------------------+------------------------------+--------+---------+---------+---------+---------+ 
| From continuing operations   |        |         |         |         |         |        | 
+                              +--------+---------+---------+---------+---------+--------+ 
|                              |                          286 |   0.23 |    382  |   0.41  | (2,858) |  (3.04) | 
+------------------------------+------------------------------+--------+---------+---------+---------+---------+ 
| From continuing and          |        |         |         |         |         |        | 
| discontinued operations      |        |         |         |         |         |        | 
+                              +--------+---------+---------+---------+---------+--------+ 
|                              |                          286 |   0.23 |    382  |   0.41  | (2,858) |  (3.04) | 
+------------------------------+------------------------------+--------+---------+---------+---------+---------+ 
|                              |        |         |         |         |         |        | 
+------------------------------+--------+---------+---------+---------+---------+--------+ 
| Shares                       |      Number      |      Number       |      Number      | 
+------------------------------+------------------+-------------------+------------------+ 
| Weighted average number of   |        |         |         |         |         |        | 
| shares                       |        |         |         |         |         |        | 
+------------------------------+--------+---------+---------+---------+---------+--------+ 
| Basic and diluted            |   125,115,299    |    92,335,511     |    94,094,078    | 
+------------------------------+--------+---------+---------+---------+---------+--------+ 
 
 
There is no potential dilution of loss per share. 
 
 
6. Subsidiary undertakings 
 
 
At 30 June 2009, the Company owned the following subsidiary undertakings: 
 
 
+-----------------------------+----------------------------+---------------+------------+ 
| Subsidiary undertaking      | Principal activity         |  Country of   |    % of    | 
|                             |                            |incorporation  |equity and  | 
|                             |                            |               |votes held  | 
+-----------------------------+----------------------------+---------------+------------+ 
| Apace Rights Limited        | Exploitation of music      |    England    |       100% | 
|                             | rights                     |               |            | 
+-----------------------------+----------------------------+---------------+------------+ 
| Apace Television Limited    | Holding company            |    England    |      87.9% | 
+-----------------------------+----------------------------+---------------+------------+ 
| Apace Music Limited (in     | Record label               |    England    |       100% | 
| CVA) * |                    |                            |               |            | 
+-----------------------------+----------------------------+---------------+------------+ 
| Pro-Active Projects Limited | Television production      |    England    |       100% | 
| *                           |                            |               |            | 
+-----------------------------+----------------------------+---------------+------------+ 
| Steadfast International     | Television programme       |    England    |       100% | 
| Limited *                   | distribution               |               |            | 
+-----------------------------+----------------------------+---------------+------------+ 
| Steadfast Television        | Television production      |    England    |       100% | 
| Limited *                   |                            |               |            | 
+-----------------------------+----------------------------+---------------+------------+ 
 
 
*owned by Apace Television Limited 
| Apace Music Limited entered into a Company Voluntary Arrangement with its 
creditors on 5 February 2009.  7. Associate 
 
 
At 30 June 2009, the Company owned 50% of the issued share capital of Balkan 
Media Group Limited ("BMGL"), a company incorporated in England. MTG 
Broadcasting AB ("MTG"), a company incorporated in Sweden, owned the remaining 
shares. The shareholders are the parties to a shareholder agreement under which 
MTG exercises management control of BMGL and its subsidiaries. BMGL is 
consequently accounted for by Apace as an associate in accordance with IAS 28. 
 
 
+-------------------------------------------------------------------+---------+ 
|                                                                   | GBP'000 | 
+-------------------------------------------------------------------+---------+ 
| Balance brought forward at 1 January 2009                         |   5,198 | 
+-------------------------------------------------------------------+---------+ 
| Exchange difference taken to translation reserve                  |       2 | 
+-------------------------------------------------------------------+---------+ 
| Further investment in the period                                  |      99 | 
+-------------------------------------------------------------------+---------+ 
|                                                                   |   5,299 | 
+-------------------------------------------------------------------+---------+ 
| Apace share of profit of associate                                |     504 | 
+-------------------------------------------------------------------+---------+ 
| At 30 June 2009                                                   | 5,803   | 
+-------------------------------------------------------------------+---------+ 
 
 
Since the balance sheet date, the following announcements have been made: 
 
 
On 2 March 2009, Apace and Modern Times Group MTG AB (MTG) signed an agreement 
to merge Balkan Media Group Limited with Nova Televizia (Nova), the number two 
terrestrial broadcaster in Bulgaria. 
 
 
On 5 August 2009, the first stage of the merger process was completed whereby 
BMGL sold its Bulgarian broadcasting subsidiary, Diema Vision EAD, to Nova in 
exchange for 10% of the enlarged share capital of Nova. Debt of about EUR1m owed 
by Diema to Apace has been repaid. 
 
 
The transfer of TV ERA, BMGL's Macedonian subsidiary, to Nova is in progress. On 
completion of that transaction, BMGL will be liquidated and its net assets 
distributed to the two shareholders. Apace expects to receive a distribution of 
about EUR700k from the liquidation. Following the liquidation, Apace will directly 
own 5% of Nova. 
 
8. Borrowings 
 
 
The Company has established a bank borrowing facility, which is available to all 
UK members of the Group. Under the facility: 
 
 
  *  A Group net overdraft of up to GBP500,000 is available; 
  *  Interest is calculated daily on the Group's sterling net overdraft at 2.5% over 
  RBS base rate; 
  *  Interest is credited daily on the Group's net sterling credit balance at a 
  variable rate in excess of base rate; 
  *  Each UK group company guarantees the bank's exposure to each other group 
  company. 
  *  GBP1,000,000 is available for the funding of TV productions at interest rates 
  agreed from time to time. 
 
 
 
The Group net overdraft is subject to a personal guarantee given by Didier 
Stoessel. 
 
 
As at 30 June 2009, no net overdraft was outstanding and no TV production 
funding was in place. 
 
9. Share capital 
 
 
 
 
+------------------------------------------+-----------+------+-------+-------------+--+ 
| Ordinary shares                          |                                        |  | 
+------------------------------------------+----------------------------------------+--+ 
|                                          | Number           | Par   |             |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
|                                          | '000s            | value |     GBP'000 |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| Authorised                               |                  |       |             |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| 1 January 2009                           |        138,500   |  1p   |       1,385 |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| Increase 17 March 2009                   |          100,000 |  1p   |       1,000 |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| 30 June 2009                             |          238,500 |  1p   |       2,385 |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
|                                          |                  |       |             |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| Issued, called up and fully paid         |                  |       |             |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| 1 January 2009                           |           95,834 |  1p   |         958 |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| Share placing at 2p each                 |           50,000 |  1p   |         500 |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| 30 June 2009                             |          145,834 |  1p   |       1,458 |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
|                                          |                  |       |             |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| A Deferred shares                        |           |              |             |  | 
+------------------------------------------+-----------+--------------+-------------+--+ 
|                                          |                  |       |             |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| Authorised, issued, called up            |                  |       |             |  | 
| and fully paid                           |                  |       |             |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| 1 January 2009 and 30 June 2009          |         22,293   |  15p  |       3,344 |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
|                                          |                  |       |             |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| B Deferred shares                        |                  |       |             |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
|                                          |                  |       |             |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| Authorised                               |                  |       |             |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| 1 January 2009 and 30 June 2009          |          138,500 |  4p   |       5,540 |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
|                                          |                  |       |             |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| Issued, called up and fully paid         |                  |       |             |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| 1 January 2009 and 30 June 2009          |           95,834 |  4p   |       3,834 |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
|                                          |                  |       |             |  | 
+------------------------------------------+------------------+-------+-------------+--+ 
| Total issued share capital               |                  |       |       8,136 |  | 
| 1 January 2009                           |                  |       |       8,636 |  | 
| 30 June 2009                             |                  |       |             |  | 
+------------------------------------------+-----------+------+-------+-------------+--+ 
 
 
On 17 March 2009, 50,000,000 1p ordinary shares were issued at 2p per share. 
 
 
 
 
10. Reserves 
 
 
Movements on reserves are shown in the Statement of changes in equity. 
 
 
The other reserve represents the premium on allocation of shares by the Company 
in pursuance of the arrangement in consideration for the acquisition of 100% of 
the shares in Apace Sports Limited (previously called Apace Group Limited) on 25 
April 2005, as permitted by section 131 of the Companies Act 1985. This reserve 
is not currently distributable. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11. Cash generated from operations 
 
 
 
 
 
 
+-------------------------------------------------+------------+-----------+-------------+ 
|                                                 |  6 months  | 6 months  |             | 
|                                                 |   ended    | ended     |             | 
|                                                 |  30 June   | 30 June   |             | 
|                                                 |    2009    | 2008      |             | 
+                                                 +            +           +-------------+ 
|                                                 |            |           |          Year ended 31 December 2008            | 
+-------------------------------------------------+------------+-----------+-------------------------------------------------+ 
|                                                 | GBP'000    | GBP'000   |  GBP'000    | 
|                                                 |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                             Continuing          |            |           |             | 
|                             operations          |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           Profit / (loss) for   |        227 |       460 |     (3,015) | 
|                           the period            |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           Adjustments for:      |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           (Profit) / loss       |      (504) |     (385) |       (588) | 
|                           reported by associate |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           Impairment of         |          - |         - |       3,096 | 
|                           Goodwill              |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           Aborted investment    |          - |         - |             | 
|                           projects written off  |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           Revaluation of        |      (105) |       130 |         172 | 
|                           investments held for  |            |           |             | 
|                           resale                |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           Amortisation of       |         20 |       125 |         211 | 
|                           intangible fixed      |            |           |             | 
|                           assets                |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           Depreciation of       |         77 |        90 |         181 | 
|                           tangible fixed assets |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                            Gain on termination  |          - |         - |       (268) | 
|                            of acquisition       |            |           |             | 
|                            project              |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                            Profit on disposal   |          - |         - |           - | 
|                            of investments       |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           Loss on disposal of   |          - |         - |           - | 
|                           tangible fixed assets |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           Share-based payment   |          - |        12 |          11 | 
|                           expense               |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           Interest payable      |          - |         - |          21 | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           Interest receivable   |          - |      (24) |        (59) | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           Exchange gain         |          - |     (100) |       (254) | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           (Increase) /          |         14 |       144 |         425 | 
|                           decrease in           |            |           |             | 
|                           inventories           |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           (Increase) / decrease |        100 |   (1,612) |       (746) | 
|                           in trade and other    |            |           |             | 
|                           receivables           |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           (Decrease) / increase |      (102) |     (191) |        (35) | 
|                           in payables           |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           Cash generated from   |      (273) |   (1,351) |       (847) | 
|                           continuing operations |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
|                           Cash (used in) /      |      (273) |   (1,351) |       (847) | 
|                           generated from        |            |           |             | 
|                           operations            |            |           |             | 
+-------------------------------------------------+------------+-----------+-------------+ 
 
 
12. Share-based payments 
 
 
The Company has two option schemes for employees, the "Apace Media plc Employee 
Share Option Scheme" and the "Apace Media plc Unapproved Share Option Scheme". 
All employees are eligible to participate in the schemes. 
 
 
No share options have been granted or exercised in the period and fuller 
disclosure of the schemes is contained in the Apace Media plc Annual Report for 
the year ended 31 December 2008. 
 
13. Post balance sheet events 
 
 
Events occurring since the balance sheet date in respect of the Company's 
investment in associate are detailed in note 7 above. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IR SEIFIUSUSEIU