Catalyst Media Group PLC Update Regarding SIS (9813G)

TIDMCMX

RNS Number : 9813G

Catalyst Media Group PLC

21 November 2022

21 November 2022

Catalyst Media Group Plc

("CMG", "Catalyst" or the "Company")

Update regarding SIS

CMG is pleased to provide the following update in respect of Sports Information Services (Holdings) Limited ("SIS") in which the Company has an approximate 20.54% interest, following the publication of SIS's audited financial statements for its financial year ended 31 March 2022.

On 30 June 2022, the Company announced that SIS was expected to return to profitability with an anticipated profit before tax of between GBP6m and GBP8m for its financial year. The final result for its year ended 31 March 2022 was a profit before tax of GBP7.0 million, the main driver being a return to normal trading conditions following the COVID-19 pandemic abating and the expansion of SIS's online customer base.

SIS's cash balance on 31 March 2022 was approximately GBP62.8 million, an increase on the prior year due to its return to profitability and a normal working capital position after the pandemic disruption. On 18 November 2022, SIS declared an interim dividend of GBP4.4m with CMG expecting to receive its share of such dividend shortly.

The Company has been informed that SIS has started its new financial year well, and management continues to pursue and win new business opportunities and has advised CMG that it expects to close its financial year to March 2023 with increased turnover year-on-year.

SIS' cash position as at 1 November 2022 was approximately GBP58m.

SIS has informed the Company that it has engaged Oakvale Capital LLP to review strategic options for the SIS business .

The principal results of SIS for its financial year ended 31 March 2022 were as follows:

 
                                                                                         As restated ** 
                                           31 March 2022                                 31 March 2021 
                                     Before                                        Before 
                               individually    Individually                  individually    Individually 
                                significant     significant                   significant     significant 
                                     items*          Items*        Total           items*          Items*        Total 
                                    GBP'000         GBP'000      GBP'000          GBP'000         GBP'000      GBP'000 
Turnover                            218,349               -      218,349          130,107               -      130,107 
Operating expenses                (209,290)         (2,200)    (211,490)        (139,425)           (622)    (140,047) 
Other operating income                  105               -          105            1,863               -        1,863 
                            ---------------  --------------  -----------  ---------------  --------------  ----------- 
Group operating profit 
 / (loss)                             9,164         (2,200)        6,964          (7,455)           (622)      (8,077) 
Other interest receivable 
 and similar income                     275               -          275              310               -          310 
Interest payable and 
 similar expenses                     (277)               -        (277)              (3)               -          (3) 
                            ---------------  --------------  -----------  ---------------  --------------  ----------- 
Profit / (loss) before 
 taxation                             9,162         (2,200)        6,962          (7,148)           (622)      (7,770) 
Tax on (profit) / loss              (1,762)             418      (1,344)              935             118        1,053 
                            ---------------  --------------  -----------  ---------------  --------------  ----------- 
Profit / (loss) after 
 taxation                             7,400         (1,782)        5,618          (6,213)           (504)      (6,717) 
                            ---------------  --------------  -----------  ---------------  --------------  ----------- 
Other comprehensive 
 income                                 330               -          330            (917)               -        (917) 
                            ---------------  --------------  -----------  ---------------  --------------  ----------- 
Total comprehensive 
 income                               7,730         (1,782)        5,948          (7,130)           (504)      (7,634) 
                            ---------------  --------------  -----------  ---------------  --------------  ----------- 
 

Notes :

* - Individually significant items relate to litigation fees.

** - SIS's FY2021 accounts were restated to reflect the capitalisation of new product and IT development costs. The impact on the prior year profit before tax was GBP0.8m (Loss of GBP7.8m) versus that previously reported (being a loss of GBP8.6m).

 
                                     As restated 
                    31 March 2022  31 March 2021 
Gross assets              126,605        102,135 
Gross liabilities        (66,293)       (47,771) 
                    -------------  ------------- 
Net assets                 60,312         54,364 
                    -------------  ------------- 
 

In light of SIS's abovementioned positive results, the Company is in the process of reviewing the carrying value of its interest in SIS in connection with the preparation of Catalyst's forthcoming accounts for its financial year ended 30 June 2022, and, while still subject to finalisation, it is currently anticipated that there will be a material reversal of historic impairments.

Enquiries :

 
 Catalyst Media Group plc 
  Michael Rosenberg, Non-executive Chairman       Mob: [phone] 
  Melvin Lawson, Non-executive Director           595 
                                                  Tel: [phone] 
                                                  8111 
 Strand Hanson Limited                          Tel: [phone] 
  James Harris                                   3494 
  Matthew Chandler 
 
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended.

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November 21, 2022 02:00 ET (07:00 GMT)