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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Catalyst Media Group Plc | LSE:CMX | London | Ordinary Share | GB00B282R334 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 70.00 | 65.00 | 75.00 | 70.00 | 70.00 | 70.00 | 23 | 07:34:23 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Computers & Software-whsl | 25k | 2.61M | 0.1243 | 5.63 | 14.72M |
From Apr 2019 to Apr 2024
TIDMCMX
RNS Number : 0196Z
Catalyst Media Group PLC
12 December 2017
Catalyst Media Group plc
("CMG" or the "Company")
Final Results for the year ended 30 June 2017
The Board of Catalyst Media Group plc is pleased to announce the final results for the Company for the year ended 30 June 2017. CMG is a 20.54% shareholder of Sports Information Services (Holdings) Ltd ("SIS") and the results for the year to 30 June 2017 incorporate its share of the profits of SIS for its year ended 31 March 2017.
Financial overview
-- CMG profit before taxation GBP3.40 million (2016: GBP0.06 million loss) -- Profit per share 15.43p per share (2016: 0.18p loss per share) - Earnings per share before impairment 15.43p per share (2016: 12.17p) -- Net Asset value per share 120.9p (2016: 98.1p) -- SIS Revenues for year ended 31 March 2017 GBP218.3 million (2016: GBP227.9 million)
-- SIS total operating profit: group and share of joint venture and associates GBP21.0 million (2016: GBP20.4 million)
-- SIS profits after tax and exceptional items GBP17.0 million (2016: GBP16.6 million) -- SIS net cash inflow from operating activities GBP43.4 million (2016: GBP48.0 million)
-- SIS declared a dividend of GBP20.0 million in July 2016, GBP4.1 million received by CMG
-- Following receipt of the SIS dividend, the Company purchased, in aggregate, 3,379,327 ordinary shares in the market at a total cost of GBP2,514,495
-- Post the period end, SIS declared a dividend of GBP15.0 million in October 2017, GBP3.1 million received by CMG
- The Company had a cash balance of GBP4.5 million as at 30 November 2017
Enquiries:
Catalyst Media Group: Michael Rosenberg Non-executive Chairman +44 (0)7785 727 595 Melvin Lawson Non-executive Director +44 (0)20 7734 8111 Strand Hanson Limited: +44 (0)20 7409 3494 James Harris Richard Tulloch
Chairman's statement
I am pleased to present the results for Catalyst Media Group plc ("CMG" or the "Company") for the year ended 30 June 2017, which incorporates our share of profits for Sports Information Services (Holdings) Ltd (SIS) in which CMG has a 20.54% interest.
After taking account of CMG's share in the profits of SIS for its year ended 31 March 2017 of GBP3.5 million (2016: GBP3.4 million), CMG recorded a profit before taxation of GBP3.40 million, (2016: loss of GBP0.06 million). No impairment charge was made in respect of the 2017 accounts (2016: GBP3.0 million). Net Assets at the year end were GBP25.4 million (120.9p per share) (2016: GBP24.9 million (98.1p per share)).
The main asset of CMG continues to be the 20.54% shareholding in SIS. CMG equity accounts for its share in the profits of SIS. For the year ended 31 March 2017, SIS had revenues of GBP218.3 million (2016: GBP227.9 million) of which GBP202.5 million was derived from Betting Services (2016: GBP209.3 million) and GBP15.8 million from SIS LIVE Services (2016: GBP18.6 million). The total operating profit for SIS was GBP21.0 million (2016: GBP20.4 million). Profits after exceptional items and taxation were GBP17.0 million (2016: GBP16.6 million). The share attributable to CMG after tax was GBP3.5 million (2016: GBP3.4 million). SIS's Net Cash inflow for the period was GBP43.4 million (2016: GBP48.0 million) from operating activities. At its year end, SIS had increased its cash position to GBP74.3 million (2016: GBP62.2 million). SIS's operating profit margin(1) increased slightly to 9.3% compared to 8.9% for the previous year.
(1) SIS's operating profit margin is the ratio of SIS's operating profit (total operating profit before exceptional items and share of associate and joint venture) to revenues expressed as a percentage.
Review of CMG's investment in SIS
As reported in the Company's trading update announced on 21 July 2017, the profit after tax was at similar levels to prior years. This was despite a reducing Licensed Betting Office UK subscriber base during the year, the impact of which was partially offset by overseas expansion.
In light of this consistent performance, the strong cash position of SIS, the progress it has made in signing new media rights and the continued positive cash flow generation from its operations SIS approved a dividend of GBP15.0 million in October 2017. CMG received its share of GBP3.1 million on 23 October 2017 and as at 30 November 2017, CMG had a cash balance of GBP4.5 million.
SIS Betting - UK Retail
As previously reported various racing media rights acquired from Arena Racing and Northern Racing expire at the end of 2017.
However, SIS has secured a series of rights to ensure a full and complete service including the following:
Ø 5-year UK Horseracing rights from Racecourse Media Group ("RMG") (which includes Ascot, Aintree, York) - commencing April 2018
Ø 5-year Extension to existing Irish Horseracing rights from Horse Racing Ireland ("HRI")
Ø Long-term agreement with Chelmsford City racecourse ("CCR")
Ø Various long-term greyhound rights - direct with 8 UK tracks
Ø Various overseas horseracing and greyhound rights
On the basis of the above rights and service SIS has already secured mid and long term agreements with around 95% of the UK and Irish retail market, including all the major UK bookmaking groups and a large number of the independent market to its service for independents for the next three years despite uncertainty caused by the DCMS Triennial Review. This review is now subject to a further 12 weeks of consultation which may result in legal restrictions on the side of individual bets on fixed odds betting terminals and the possible reduction in the number of retail betting shops. The new agreements are at lower margins overall and will impact results - with operating results expected to decline by approximately 50% as previously outlined from April 2018 with some additional impact on the current financial year. In respect of the current year, SIS is experiencing increased litigation costs and although legal advice continues to indicate a successful outcome is expected for SIS. This will have an impact on budgeted profits for the year ending 31 March 2018.
SIS Betting - International & Online
SIS is already supplying several International and online operators and has been progressing a strategy to increase its distribution in these markets using proprietary streaming and production technology as well as data pricing services.
SIS plans to use its expertise, developed in the UK retail market, delivering short form betting opportunities, with associated data and services, to maximise the value for betting operators in the International and digital arena. There has been significant progress achieved in this area and new product and services are due to go live from early 2018 which will further increase access to these markets securing both customers and distribution technology.
Whilst securing media rights for UK use SIS has also acquired rights for International and online use on all the deals signed this year including Horse Racing Ireland (HRI), Chelmsford City Racecourse (CCR) and greyhounds.
SIS has recently been shortlisted for two main industry awards, firstly for its streaming product SIS STREAM which facilitates IPTV into both online and retail at low latency enabling delivery of content anywhere in the world facilitating bespoke production services by SIS. The second nomination is for SIS Trading Services which offers operators outsourced pricing and derivative products for horse and greyhound racing.
SIS LIVE
SIS LIVE continues to offer specialised broadcast solutions including HD, UHD, satellite uplinks, streaming, satellite internet and teleport together with fibre services and transmits 250 hours of live broadcasting per day and covers over 6,000 sports events per annum. SIS LIVE has transitioned into a mixed satellite and fibre business and now has 125 fibre connections across the UK and Ireland and expects this to increase to 150 by mid-2018 together with two satellite uplink teleports.
SIS LIVE has signed agreements with SKY, Tata and other service providers for a number of sports including cricket, moto GP and rugby league and continues to expand its penetration into the key sports connectivity market.
The trend of news broadcasters to move away from Satellite News Gathering ("SNG") towards using IP technology and 4G mobile technology has continued and this has seen a decrease in demand from SIS LIVE customers for SNG trucks, with the fleet size of 34 expected to reduce over the coming years. Connected with this SIS LIVE have exited its Satellite Hardware division, which has historically provided the satellite technology for the SNG trucks, with a successful sale completed in January 2017.
Another trend being seen by SIS LIVE is the demand for additional services to pure fibre connectivity and the start of a move towards remote production which offers a significant opportunity for the business. SIS LIVE is well placed with its 125 fibred venues and its connections to broadcasters to facilitate this market change and it is expected to be an area of growth in the future.
SIS's management continue to see a prosperous future for SIS LIVE within the SIS Group, though also recognise there may be a strategic benefit for SIS LIVE in alternative ownership and they continue to keep this under review.
SIS Results
The results of SIS for the year ended 31 March 2017 are as follows:
Hot Features
Premium
31 March 2017 31 March 2016
GBP'000 GBP'000
Revenue 218,337 227,930
-------------- --------------
Operating expenses (197,345) (207,534)
Operating profit before exceptional
items 20,291 20,396
Exceptional items 701 -
-------------------------------------- -------------- --------------
Operating profit
Share of operating profit/(loss) 20,992 20,396
of joint venture:
* joint venture - (36)
-------------------------------------- -------------- --------------
Total operating profit 20,992 20,360
Profit / (Loss) on the managed
wind down of business(+)
Profit on disposal of joint venture 923 (490)
Profit on disposal of tangible
assets - 642
25 317
Net interest receivable / (payable) 534 458
Profit on ordinary activities
before tax 22,474 21,287
Tax on profit on ordinary activities (5,440) (4,686)
Retained profit transferred to
reserves 17,034 16,601
Share of net assets and liabilities
of associate
Net assets 161,735 159,128
Net liabilities (71,449) (63,858)
-------- --------
Net equity 90,286 95,270
-------- --------
(+) Profit/(Loss) on the managed wind down of business relates to the closure of SIS's Outside Broadcast Division in 2014.
India
As previously reported the claim in respect of the Indian project continues to be pursued but the outcome remains uncertain. The legal and associated costs relating to this claim have been significantly reduced but are still impacting profits. Further detail is provided in note 2 of the financial statements.
Outlook and distribution policy
SIS have considerable cash reserves and have indicated that further distributions are likely to be made to shareholders. Although CMG has recently received a dividend payment of approximately GBP3.1 million from SIS, the Board has resolved to defer a decision on the timing of distributions to its shareholders pending clarification of the timing and quantum of any such further distribution. As soon as we are advised of the timing, shareholders of CMG will be informed and a decision will be made on the form of distribution.
As already reported SIS's generation of cash in the future will be at a significantly lower level than in the past few years, reflecting the lower profits that are predicted following the changes in media rights ownership and contractual arrangements, resulting in an expected 50% reduction in SIS's underlying operating results.
AGM
The next Annual General Meeting of the Company will be held on 12 January 2018 at 10.00 a.m. Formal Notice of the meeting is set out at the end of the report and accounts together with the form of proxy.
Michael Rosenberg OBE
Chairman
11 December 2017
Consolidated statement of comprehensive income for the year ended 30 June 2017
Year ended Year ended
30 June 30 June
2017 2016
GBP GBP
Revenue 25,000 25,000
Cost of sales - -
----------- ------------
Gross profit 25,000 25,000
Administrative expenses (128,916) (112,036)
Operating loss (103,916) (87,036)
Financial income 3,056 7
Financial costs (106) (186)
----------- ------------
Net financial income 2,950 (179)
----------- ------------
Share of profit of equity-accounted
associate, net of tax 3,498,784 3,409,845
Impairment of equity-accounted associate - (3,014,622)
Transitional adjustment relating to
equity-accounted associate - (368,521)
Profit / (loss) before taxation 3,397,818 (60,513)
Taxation 16,783 16,543
Profit / (loss) for the year 3,414,601 (43,970)
Share of other comprehensive loss of
associate (414,292) (26,702)
Total comprehensive profit / (loss) 3,000,309 (70,672)
----------- ------------
Attributable to equity holders of the
Company 3,000,309 (70,672)
----------- ------------
Earnings / (loss) per share:
Basic 15.43p (0.18p)
----------- ------------
Diluted 15.43p (0.18p)
----------- ------------
Before impairment 15.43p 12.17p
----------- ------------
Consolidated statement of financial position as at 30 June 2017
30 June 30 June
2017 2016
GBP GBP
------------ -----------
Assets
Non-current assets
Investment in associate 23,976,958 25,000,000
23,976,958 25,000,000
----------- -----------
Current assets
Trade and other receivables 15,080 34,173
Cash and cash equivalents 1,463,462 633
1,478,542 34,806
----------- -----------
Total assets 25,455,500 25,034,806
----------- -----------
Equity and liabilities
Capital and reserves attributable to equity holders of the parent
Share capital 2,103,202 2,541,136
Capital redemption reserve 711,117 273,183
Merger reserve 2,402,674 2,402,674
Retained profits 20,203,836 19,718,022
Total equity 25,420,829 24,935,015
----------- -----------
Current liabilities
Trade and other payables 31,134 96,423
Corporation tax payable 3,537 3,368
34,671 99,791
Total equity and liabilities 25,455,500 25,034,806
----------- -----------
The financial statements were approved by the Board of Directors and authorised for issue on 11 December 2017.
Michael Rosenberg OBE
Director
Company registration number: 03955206
Consolidated statement of cash flows for the year ended 30 June 2017
Year ended Year ended
30 June 30 June
2017 2016
GBP GBP
------------ ------------
Cash flow from operating activities
Profit / (loss) before taxation 3,397,818 (60,513)
Adjustments for:
Share of profit from associate (3,498,784) (3,409,845)
Impairment of associate - 3,014,622
Transitional adjustment - 368,521
Finance income (3,056) (7)
Finance expense 106 186
Corporation taxes recovered 16,952 18,449
Net cash flow used in operating activities before changes in working capital (86,964) (68,587)
Decrease / (increase) in trade and other receivables 19,093 (3,513)
Increase / (decrease) in trade and other payables (65,289) 55,943
Net cash flow used in operating activities (133,160) (16,157)
Investing activities
Dividend received 4,107,534 -
Interest received 3,056 7
Net cash flow from investing activities 4,110,590 7
Financing activities
Shares purchased into Treasury (2,514,495) -
Interest paid (106) (186)
Net cash flow used in financing activities (2,514,601) (186)
Net decrease in cash and cash equivalents in the year 1,462,829 (16,336)
Cash and cash equivalents at the beginning of the year 633 16,969
------------ ------------
Cash and cash equivalents at the end of the year 1,463,462 633
------------ ------------
Notes
1. Basis of preparation
These consolidated financial statements of Catalyst Media Group plc have been prepared in accordance with accepted International Financial Reporting Standards (IFRSs), International Accounting Standards (IAS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations (collectively "IFRSs") as adopted for use in the European Union and as issued by the International Accounting Standards Board and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
Catalyst Media Group plc is a publicly limited company registered in England and Wales where it is domiciled for tax purposes.
The financial statements are prepared under the historical cost convention.
These results are audited, however the financial information set out in this announcement does not constitute the Group's statutory accounts for the year ended 30 June 2017, but is derived from the 2017 Report and financial statements. The auditors have issued an unqualified audit report in respect to these financial statements.
2. Investment in associate
Year Ended 30 June 2017
Group
GBP
Cost
At 1 July 2016 25,000,000
Share of profit - 2017 3,498,784
Share of other comprehensive loss
- 2017 (414,292)
Dividend received - 2017 (4,107,534)
Impairment - 2017 -
At 30 June 2017 - CMG share of
SIS net assets 23,976,958
Year Ended 30 June 2016
Group
GBP
Cost
At 1 July 2015 - Restated 25,000,000
Transitional adjustment (368,521)
Share of profit - 2016 3,409,845
Share of other comprehensive loss
- 2016 (26,702)
Dividend received - 2016 -
Impairment - 2016 (3,014,622)
At 30 June 2016 - CMG share of
SIS net assets 25,000,000
The Group's interest in the associate, SIS, a company incorporated in England and Wales, is held by Alternateport Limited. Alternateport Limited holds an investment of 20.54% in the equity share capital of SIS and is entitled to appoint a director and alternate director to the SIS board. This right has been exercised since acquisition. Alternateport Limited is a wholly owned subsidiary of Catalyst Media Holdings Limited a wholly owned subsidiary of Catalyst Media Group plc.
A copy of the strategic forecast prepared by SIS was made available to the Directors of CMG showing management forecasts through to 2022/2023 of the income statement, statement of financial position and statements of cash flow. The assumptions made by management were also provided.
It is expected that the net operating profits of SIS would significantly fall to a much lower level due to the change in margins arising from media rights ownership.
After reviewing the forecasts and other factors, the Directors concluded that the carrying value of the investment should continue at GBP24 million.
Share of profit of associate 2017 2016
2017 CMG share CMG share
SIS Total GBP'000 GBP'000
GBP'000
Revenue:
SIS Betting Services 202,524 41,598 42,987
SIS LIVE Services 15,813 3,248 3,830
Total revenue 218,337 44,846 46,817
----------- ---------- ----------
Operating profit 20,992 4,312 4,182
Net interest receivable / (payable) 534 110 94
Profits / (losses) on business wind
down 923 189 (101)
Profit on disposal of joint venture - - 132
Profit on disposal of fixed asset 25 5 65
Profit before tax 22,474 4,616 4,372
Taxation (5,440) (1,117) (962)
----------- ---------- ----------
Share of profit after taxation 17,034 3,499 3,410
----------- ----------
Net income from associate 17,034 3,499 3,410
----------- ---------- ----------
Other comprehensive income:
Actuarial loss (1,500) (308) (308)
Deferred tax 500 103 7
Change in value of hedging instrument (1,017) (209) 274
----------- ---------- ----------
(2,017) (414) (27)
Share of net assets and liabilities
of associate
Net assets 161,735 33,221 32,685
Net liabilities (71,449) (14,676) (13,117)
----------- ---------- ----------
Net equity 90,286 18,545 19,568
----------- ---------- ----------
As at 30 June 2017, SIS was continuing to deal with tax and legal issues that arose from the 2010 Commonwealth Games (CWG) in Delhi, India. SIS, via a partnership of the name of SIS Live, delivered the host broadcast production and facilities contract for the 2010 CWG. Given continuing scrutiny of the entire CWG project immediately after the closure of the Games, approximately 40% of the contact has still not been paid. A provision of GBP5.9 million was made in respect of this non-payment.
SIS Live received a draft assessment in March 2014 from Indian tax authorities in relation to the year ended March 2011. SIS has strongly rejected the draft assessment, and continues to appeal it through the Indian judiciary system. As appeal proceedings continue it is not possible to quantify the potential tax liability that may arise of the subsequent recoverability of that amount through the courts and therefore no further provision has been made in the accounts of SIS.
3. Annual Report
The Annual Report for the year ended 30 June 2017 will be available today from the Company's website www.cmg-plc.com.
The Annual General Meeting will be held at 6 Stratton Street, London W1J 8LD, at 10.00 a.m. on 12 January 2018.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FFFFWFFWSEIE
(END) Dow Jones Newswires
December 12, 2017 02:00 ET (07:00 GMT)
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