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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Hollywood Media | LSE:HOL | London | Ordinary Share | GB00B1WN7R92 | ORD 0.125P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.375 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number : 6731E Hollywood Media Services plc 30 September 2008 HOLLYWOOD MEDIA SERVICES PLC ("HOLLYWOOD" OR THE "COMPANY") HALF-YEAR UNAUDITED REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2008 CHAIRMAN'S STATEMENT I am pleased to report on our results for the six months to 30 June 2008. Highlights * Acquisition of the contract for "The Bill" * Consolidated revenues up 73% to £990,981 * Pre tax loss of £212,570 after amortising the costs of The Bill for £130,046 Review of Operations The key event of the first half was the acquisition of The Bill contract in February 2008 which has the potential to double the Group's turnover and provide a significant contribution to covering the Group's overheads. In the five months we have operated it, the contract has delivered an operating margin of 10%; at which rate it should generate profits for the year in excess of the cash consideration paid of £94,500. As previously reported total consideration is up to £575,000 (the balance being in shares) of which £275,000 is payable if the contract is extended beyond 31 December 2008. The contract is particularly valuable to the group because it provides a stable cash flow during the year and therefore reduces the seasonality of the business as a whole. Accounting for the contract is governed by IFRS 3, Business Combinations, under which the acquisition costs of The Bill are required to be written off over the remaining period of the contract, regardless of any renewal. Given the contract currently runs until 31 December 2008, this results in a write off of £130,046 in the period with the balance of approximately £156,000 to be written off in the second half. The directors are confident that the Company will be successful in extending the contract beyond 31 December 2008. As I reported with the 2007 results, the traditionally slow first quarter for the continuing operations was even slower than expected in 2008, due to the after effects of the writers' strike in the USA and postponements of new production commissions by both the BBC and ITV. The second quarter saw an improvement in volumes with productions serviced including "Minder", "Apparitions", "Survivors", "Trinity" and "Damned United". In addition, we were appointed caterers to a number of pop festivals. This is a new area for the Company and follows the recruitment of a dedicated events manager as mentioned in our year end report. Financial Review The poorer than expected start to sales in the first half resulted in revenues from continuing operations for the period being down 3%. However, this was more than offset by the addition of The Bill contract as a result of which total revenues increased by 73% to £990,981 (2007: £572,336) in the first half of 2008. Trading profit (before head office costs, reorganisation costs and amortisation of goodwill) improved to £38,898 (2007: £21,769) with losses in continuing operations being exceeded by the performance of The Bill contract. Head office costs which comprise the costs of the Plc board and direct Plc overheads amounted to £74,589 (2007: nil). After the amortisation of The Bill contract of £130,046 an operating loss of £185,679 is reported for the 6 months (2007: profit of £21,769). After financial expenses of £26,891 (2007:£14,223) a pre and post tax loss of £212,570 was incurred in the 6 months (2007: pre tax profit of £7,546 and post tax profit of £8,949). As noted in the year end report, cash reserves were at their worst in May 2008 since when the position has improved as trading has recovered from the slow start mentioned above. As well as the acquisition of The Bill contract mentioned above, the Company invested around £110,000 into new equipment with the result that the Company moved to a net debt position of £321,942 including lease obligations of £76,532 and utilising invoice discounting facilities of £192,679. Since June 2008, further capital expenditure of approximately £46,000 has been undertaken utilising an existing lease facility which would otherwise have expired but, in the current financial environment, there are no further plans for significant capital expenditure despite currently healthy demand for the group's services. The group is projected to generate cash in the second half in line with the expected improvement in trading. Current Trading While increased macro economic risk makes for caution in commenting on trading prospects the improved volumes achieved in facilities in May and June have been maintained in the first three months of the second half, while the second half will also benefit from a full 6 months of The Bill. With regard to acquisitions, the board has commenced discussions with a number of potential opportunities since the year end and these remain ongoing. Whilst there can be no certainty that any discussions will conclude successfully, the Board continue to believe that there are opportunities to grow the business by acquisition, enabling cross selling of products and services as well as joint offerings to increase volume and margins. James Holmes Chairman 30 September 2008 For further information please contact:- Hollywood Tel: 0207 332 2200 Martin Eberhardt, Chief Executive Dowgate Capital Advisers Limited Tel: 020 7492 4777 Liam Murray, Antony Legge IAF Securities Limited Tel: 020 7747 7400 David Coffman UNAUDITED CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS TO 30 JUNE 2008 Six month period Six month period Year ended 31 ended 30 June 2008 ended 30 June 2007 December 2007 Note Unaudited Unaudited Audited £ £ £ Revenue Continuing operations 553,096 572,336 1,090,775 Acquisitions 437,885 - - Total revenue 990,981 572,336 1,090,775 Gross profit Continuing operations 197,884 217,464 367,246 Acquisitions 124,928 - - Total gross profit 322,812 217,464 (356,283) Administrative expenses Trading expenses Continuing operations (202,717) (195,695) (362,839) Acquisitions (81,197) - - Total administrative expenses (283,914) (195,695) (362,839) Trading profit Continuing operations (4,833) 21,769 4,407 Acquisitions 43,731 - - Total trading profit 38,898 21,769 4,407 Head office costs (74,589) - (95,393) Acquisition/Float and (19,942) - (128,050) reorganisation costs Amortisation of contract cost (130,046) - - Operating profit/(loss) (185,679) 21,769 (219,036) Financial expenses (26,891) (14,223) (42,407) Profit/(loss) before taxation (212,570) 7,546 (261,443) Taxation 2 - 1,403 - Profit/(loss) after taxation (212,570) 8,949 (261,443) UNAUDITED CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENDITURE FOR THE SIX MONTHS TO 30 JUNE 2008 Six month period Six month period Year ended 31 ended 30 June 2008 ended 30 June 2007 December 2007 Unaudited Unaudited Audited £ £ £ (Loss) for the financial year (212,570) 8,949 (261,443) Costs of flotation written off - - (377,156) to share premium account Total (losses)/gains (212,570) 8,949 (638,599) recognised since last annual report Total (losses)/gains (212,570) 8,949 (638,599) attributable to equity holders of the parent UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2008 Six month period Six month period Year ended 31 ended 30 June 2008 ended 30 June 2007 December 2007 Unaudited £ Unaudited £ Audited £ Non current assets Intangible asset 156,056 - - Property plant and equipment 592,492 472,226 529,422 Deferred tax asset 4,554 7,682 - 753,102 479,908 529,422 Current assets Inventories 31,523 15,825 15,406 Trade and other receivables 452,186 389,444 192,391 Cash and cash equivalents - - 275,909 483,709 405,269 483,706 Total assets 1,236,811 885,177 1,013,128 Current liabilities Trade and other payables (535,160) (506,059) (421,981) Financial liabilities (321,942) (192,574) (171,149) (borrowings) Tax liabilities (1,403) (3,128) - (858,505) (701,761) (593,130) Net Current (liabilities) (374,796) (296,492) (109,424) Non current liabilities Borrowings (2,600) (79,130) (38,259) Net assets 375,706 104,286 381,739 Capital and reserves Called up Share capital 89,171 50,000 85,417 Shares to be issued 205,700 - 70,000 Share premium account 504,511 - 437,427 Retained earnings (428,676) 54,286 (216,105) Share option reserve 5,000 - 5,000 Equity attributable to equity 375,706 104,286 381,739 holders of the parent UNAUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS TO 30 JUNE 2008 Six month period Six month period Year ended 31 ended 30 June 2008 ended 30 June 2007 December 2007 Unaudited £ Unaudited £ Audited £ Net cash from operating (182,166) 47,599 60,712 activities Cash flows from investing activities Interest received - - 2,329 Proceeds on disposal of 6,616 - - property plant and equipment Purchases of property, plant (110,429) (69,953) (176,367) and equipment Business acquisition (114,442) - - Fair value adjustment 8,540 - - Net cash used in investing (209,715) (69,953) (174,038) activities Cash flow from financing activities Costs of flotation - - (377,156) New finance lease liabilities - - - Repayment of obligations under (38,637) (34,165) (87,574) finance leases New borrowings 101,040 2,575 - Issue of new shares 838 49,980 850,000 Net cash used in financing 63,241 18,390 385,270 activities Net (decrease)/increase in (328,640) (3,964) 271,944 cash and cash equivalents Cash and cash equivalents At beginning of period 275,909 3,964 3,964 Net(decrease)/increase in cash (328,640) (3,964) 271,945 and cash equivalents At end of period (52,731) - 275,909 UNAUDITED CONSOLIDATED CASH FLOWS FROM OPERATING ACTIVITIES FOR THE SIX MONTHS TO 30 JUNE 2008 Six month period Six month period Year ended 31 ended 30 June 2008 ended 30 June 2007 December 2007 Unaudited £ Unaudited £ Audited £ Profit/(loss) from operations (185,679) 21,769 (219,036) Adjustments for: Movement in share option - - 5,000 reserve Depreciation of property, 53,043 38,859 88,077 plant and equipment Amortisation of intangible 130,046 - - asset Operating cash flow before (2,590) 60,628 (125,959) movements in working capital Increase in inventories (2,917) 24,500 24,919 Increase in receivables (264,350) (98,427) 106,261 (Decrease)/increase in 114,582 73,718 100,227 payables Cash generated by operations (155,275) 60,419 105,448 Income taxes refunded/(paid) - 1,403 - Interest paid (26,891) (14,223) (44,736) Net cash flow from operating (182,166) 47,599 60,712 activities NOTES TO THE UNAUDITED FINANCIAL STATEMENTS FOR THE SIX MONTHS TO 30 JUNE 2007 1. Accounting policies Basis of Preparation The half-yearly financial information in this report has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the EU applied in accordance with the provisions of the Companies Act 1985. IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) and there is an ongoing process of review and endorsement by the European Commission. The financial information has been prepared on the basis of IFRS that the Directors expect to be applicable as at 31 December 2008. The half-yearly results for the six months to June 2008 and June 2007 have been prepared under the historical cost convention, are unaudited and do not constitute statutory accounts in accordance with Section 434 of the Companies Act 2006. The principal accounting policies set out below have been consistently applied to all periods presented. Basis of consolidation The consolidated financial statements include those of the holding company and its subsidiaries made up to 31 December 2007. As the company's results are included in the consolidated profit and loss account and disclosed in the reconciliation of movements in shareholders' funds, a separate profit and loss account is not presented, as permitted by s 230 (4) of the Companies Act 2006. Entities not owned by the group over which the group has the ability to exercise control are accounted for as subsidiaries. The results of subsidiary undertakings acquired in the year are included in the consolidated profit and loss account from the date of acquisition. Acquisition accounting The assets and liabilities of subsidiary undertakings and the acquired are incorporated at their fair value at the date of acquisition and the Group income statement includes only that proportion of the result of subsidiaries arising whilst meeting the definition of a subsidiary. Intangible assets other than goodwill are stated at cost less accumulated depreciation and any impairment losses. Intangible assets arising on acquisition are recognised separately from goodwill where the fair value of the asset can be identified separately and measured reliably. Amortisation is calculated on a straight line basis over the useful life of the asset. Amortisation methods and useful lives are reviewed annually and adjusted if appropriate. Depreciation Fixed assets are stated at cost less accumulated depreciation and any recognised impairment loss. Depreciation is charged so as to write off the cost of the assets, over their estimated useful lives, using the straight line method on the following bases: Motor vehicles, trailers, plant and equipment 15% straight line Fixtures and fittings 33% straight line Leasing Leases are classified as finance leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Assets held under finance leases are recognised as assets of the Company at their fair value or, if lower, at the present value of the minimum lease payments, each determined at inception of the lease. The corresponding liability is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to the income statement. Rentals payable under operating leases are charged to the income statement on a straight line basis over the term of the relevant lease. 2. Taxation No provision for corporation tax has been provided for, due to losses incurred in previous periods. 3. Earnings per Share The earnings per share has been calculated by dividing the loss after taxation of £75,368 (June 2007: profit of £8,949) by the weighted average number of Ordinary £1 shares in issue of 49,285,732 (June 2007: 25,010). Six month period Six month period Year ended 31 ended 30 June 2008 ended 30 June 2007 December 2007 Unaudited £ Unaudited £ Audited £ Loss/Profit attributable to (212,570) 8,949 (261,443) shareholders Weighted average number of 49,285,732 25,010 25,049,348 ordinary shares in issue for calculating basic earnings per share Increase in weighted average 19,982,990 number of ordinary shares in issue at a nominal value of 0.125p following sub division of shares Weighted average number of 19,000,000 6,592,692 warrants and options Weighted average number of 20,000,000 6,703,297 preference shares Weighted average number of 88,285,732 20,008,000 38,345,337 shares for calculating dilutive earnings per share Basic (loss)/earnings per (0.004) 0.36 (0.010) share Earnings per share of 0.125p 0.000 Fully diluted (0.002) (0.007) 4. Statement of changes in equity Six month period Six month period Year ended 31 ended 30 June 2008 ended 30 June 2007 December 2007 Unaudited £ Unaudited £ Audited £ Opening balance 381,739 45,358 45,358 Profit/(loss) for the (212,570) 8,948 (261,443) period/year Issue of shares 838 49,980 899,980 Flotation costs written off - - (377,156) against Share Premium Shares to be issued 205,700 - 70,000 Gain on share options granted - - 5,000 Closing balance 375,706 104,286 381,739 5. Ultimate controlling party As at 30 June 2007, the Company's ultimate controlling party was Catering 4 Events Plc. Following the Company's admission on 30 August, there was no ultimate controlling party. 6. Distribution of half-yearly report This half-yearly report, together with the admission document, are available on the Company's website, www.hmservicesplc.com. 7. Aim Compliance Committee In accordance with AIM Rule 31 the Company is required to have in place sufficient procedures, resources and controls to enable its compliance with the AIM Rules; seek advice from its nominated adviser ("Nomad") regarding its compliance with the AIM Rules whenever appropriate and take that advice into account; provide the Company's Nomad with any information it requests in order for the Nomad to carry out is responsibilities under the AIM Rules for Companies and the AIM Rules for Nominated Advisers; ensure that each of the Company's directors accepts full responsibility, collectively and individually, for compliance with the AIM Rules; and ensure that each director discloses without delay all information which the Company needs in order to comply with AIM Rule 17 (Disclosure of Miscellaneous Information) insofar as that information is known to the director or could with reasonable diligence be ascertained by the director. In order to ensure that these obligations are being discharged, the Board has established a committee of the Board (the "AIM Committee"), chaired by Michael Johnson, a non executive director of the Company. Having reviewed relevant Board papers, and met with the Company's Executive Board and the Nomad to ensure that such is the case, the AIM Committee is satisfied that the Company's obligations under AIM Rule 31 have been satisfied during the period under review. This information is provided by RNS The company news service from the London Stock Exchange END IR EAENEDDNPEFE
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