Interim Results

RNS Number : 9645B
Cheerful Scout PLC
28 February 2011
 



Cheerful Scout Plc / Index: AIM / Epic: CLS / Sector: Media

28 February 2011

Cheerful Scout Plc ('Cheerful' or 'the Company')

Interim Results

 

Cheerful Scout Plc, the AIM-traded multi media specialist, announces its results for the six months ended 31 December 2010.

 

Chairman's Statement

 

The first six months of the year were very busy for the Company as we focussed on developing our client base in the private sector.  Following the acquisition of Twentyfirst Century Communications Limited ('Twentyfirst') in January 2010, turnover has increased by 34 per cent. to £985,640 (2009: £736,664). 

 

Operations

 

Cheerful provides high quality corporate communication solutions through two divisions - On Screen and Events.

 

Our On Screen division provides innovative and comprehensive visuals to convey corporate messages and strategy.  Our team continues to gain recognition and we have been nominated for awards at the New York Film Festival for our work with an international law firm and a leading engineering company, the results of which will be announced in April 2011. 

 

We have had success in broadening our client base within the private sector, which we anticipate will be reflected in our results during the second half of the year.  This focus has provided some resilience to recent cuts in government spending which have naturally affected some contracts within the public sector, including the Central Office of Information.  Although challenges remain, we are confident that our long term relationships with our public sector clients will maintain our position as their corporate communications company of choice, and that we can continue to make inroads into the private sector. 

 

The Events division, which was created as a result of the acquisition of Twentyfirst in January 2010, is now fully integrated and performing well.  During the period, we completed a number of exciting projects including a product launch for a leading software agency as well as a series of charity events for Trinity Hospice and Oasis, the Archant London Business Awards, the National Magazine Company awards gala, and the BVCA's annual gala dinner. 

 

Financial Results

 

The Group is reporting a loss before tax of £84,552 (2009: loss of 21,789) on a turnover of £985,640 (2009: £736,664).  The operating loss for the Group is £84,697 (2009: loss of £23,499).  The Group's cash balance continues to be healthy at £681,756 (2009: £901,587). 

 

Outlook

 

Over the next six months we will focus on building relationships with our new clients and increasing our profile in the corporate communications arena.  We expect gross margins to recover somewhat in the second half of the year, thus improving our full year financial performance.

 

I would like to thank the team for their hard work and shareholders for their continued support.

 

S Appleton

Chairman

28 February 2011

 

** ENDS **

 

For further information visit www.cheerfulscout.com or contact:

Gary Fitzpatrick

Cheerful Scout Plc

Tel: 020 7291 0444

Mark Percy

Seymour Pierce

Tel: 020 7107 8000

Catherine Leftley

Seymour Pierce

Tel: 020 7107 8000

Elisabeth Cowell

St Brides Media & Finance Ltd

Tel: 020 7236 1177

 

 

 

Condensed Consolidated Statement of Comprehensive Income

Six months ended 31 December 2010                          

 

 

Notes

Unaudited

 

Unaudited

 

Audited

 

 

Six months to

 

Six months to

 

Year ended

 

 

31 December

 

31 December

 

30 June

 

 

2010

 

2009

 

2010

 

 

£

 

£

 

£

Continuing operations

 

 

 

 

 

 

 

 

Revenue

 

      985,640

 

736,664

 

1,809,757

 

 

 

 

 

 

 

Cost of sales

 

      (692,840)

 

(461,400)

 

        (1,132,142)

 

 

 

 

 

 

 

Gross profit

 

292,800

 

275,264

 

      677,615

 

 

 

 

 

 

 

Administrative expenses

 

          (377,497)

 

(298,763)

 

(695,275)

 

(84,697)

 

(23,499)

 

    (17,660)

 

 

 

 

 

 

 

Finance income

 

145

 

1,710

 

       1,883

Other income

 

-

 

-

 

16,921

 

 

 

 

 

 

 

(Loss) / profit before taxation

 

(84,552)

 

       (21,789)

 

      1,144

 

 

 

 

 

 

 

Taxation

 

       -

 

     9,250

 

       49,082

 

 

 

 

 

 

 

Total comprehensive (loss) / income for the period attributable to owners of the parent

 

     (84,552)

 

(12,539)

 

     50,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

5

(1.07881)p   

 

(0.15695)p

 

    0.63098p

Diluted

 

5

(1.07881)p

 

(0.15695)p

 

0.63098p

 

There are no other comprehensive income items.

 

 

Condensed Consolidated Statement of Financial Position

At 31 December 2010 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

Six months to

 

Six months to

 

Year ended

 

 

31 December

 

31 December

 

30 June

 

 

2010

 

2009

 

2010

 

 

£

 

£

 

£

Non-current assets

 

 

 

 

 

 

Intangible assets

 

      365,154

 

      365,154

 

365,154

Property, plant and equipment

 

      111,618

 

      155,847

 

        133,375

Deferred taxation

 

39,832

 

-

 

39,832

 

 

      516,604

 

      521,001

 

538,361

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Inventories

 

          2,674

 

          2,167

 

2,252

Trade and other receivables

 

366,088      

 

      167,516

 

      506,592

Current tax receivable

 

-

 

9,250

 

-

Cash and cash equivalents

 

681,756

 

901,587

 

632,200

 

 

    1,050,518

 

    1,080,520

 

    1,141,044

 

 

 

 

 

 

 

Total assets

 

    1,567,122

 

    1,601,521

 

1,679,405

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade and other payables

 

     (342,937)

 

     (353,007)

 

       (386,226)

 

 

     (342,937)

 

     (353,007)

 

     (386,226)

 

 

 

 

 

 

 

Net assets

 

1,224,185

 

1,248,514

 

    1,293,179

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Share capital

 

979,688

 

    1,004,688

 

     979,688

Capital redemption reserve

 

257,812

 

232,812

 

257,812

Retained earnings

 

(28,873)

 

11,014

 

55,679

Share based payment reserve

 

15,558

 

-

 

-

Equity attributable to equity holders of the parent

 

1,224,185

 

1,248,514

 

    1,293,179

 

Condensed Consolidated Statement of Changes in Equity

At 31 December 2010

 

 

     Share capital

Capital redemption reserve

Retained earnings

Share based payment reserve

Total equity

 

£

£

£

£

£

At 1 July 2009

1,054,688

170,312

48,678

-

1,273,678

Comprehensive expense for the period

-

-

(12,539)

-

(12,539)

Purchase of own shares

(62,500)

62,500

(25,125)

-

(25,125)

Issue of shares

12,500

-

-

-

12,500

At 31 December 2009

1,004,668

232,812

11,014

 

1,248,514

 

 

 

 

 

 

At 1 July 2009

1,054,688

170,312

48,678

-

1,273,678

Comprehensive income for the period

-

-

50,226

-

50,226

Purchase of own shares

(87,500)

87,500

(43,225)

-

(43,225)

Issue of new shares

12,500

-

-

-

12,500

At 30 June 2010

979,688

257,812

55,679

-

1,293,179

 

 

 

 

 

 

At 1 July 2010

979,688

257,812

55,679

-

1,293,179

Comprehensive expense for the period

-

-

   (84,552)

-

(84,552)

Share based payments

-

-

-

15,558

15,558

At 31 December 2010

979,688

257,812

(28,873)

15,558

1,224,185

 

 

Condensed Consolidated Statement of Cash Flows

Six months ended 31 December 2010

 

 

Unaudited

 

Unaudited

 

Audited

 

 

Six months to

 

Six months to

 

Year ended

 

 

31 December

 

31 December

 

30 June

 

 

2010

 

2009

 

2010

 

 

£

 

£

 

£

Cash flows from operating activities

 

 

 

 

 

 

(Loss) / profit before taxation

 

(84,552)

 

(21,789)

 

1,144

Depreciation

 

              35,607

 

                 32,821

 

           68,908

Gain on sale of property, plant and equipment

 

(15,000)

 

-

 

-

Share based payment

 

15,558

 

-

 

-

Finance income

            (145)

 

               (1,710)

 

(1,883)

 

(48,532)

 

9,322

 

68,169

Increase in trade and other payables

140,504

 

52,629

 

85,848

(Increase) / decrease in trade and other receivables

            (43,289)

 

42,378

 

          (296,698)

Increase in inventories

                 (422)

 

(134)

 

(219)

Taxation

-

 

-

 

9,250

 

 

 

 

 

 

Cash generated / (used) in operating activities

48,261

 

104,195

 

          (133,650)

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Finance income

              145

 

1,710

 

            1,883

Purchase of property, plant and equipment

            (13,850)

 

               (23,184)

 

(36,799)

Proceeds from sale of property, plant and equipment

15,000

 

-

 

-

Cash generated / (used) in investing activities

                 1,295

 

               (21,474)

 

        (34,916)

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Purchase of own shares

-

 

(25,125)

 

(43,225)

Issue of new shares

-

 

12,500

 

12,500

Cash used in financing activities

-

 

(12,625)

 

(30,725)

 

 

 

 

 

 

 

 

 

 

 

 

Net increase / (decrease) in cash and cash equivalents

49,556

 

70,096

 

(199,291)

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

632,200

 

831,491

 

831,491

 

 

 

 

 

 

Cash and cash equivalents at end of period

681,756

 

901,587

 

632,200

 

 

 

 

 

 

 

 

Cheerful Scout plc

 

Notes to the Interim Condensed Financial Statements

Six months ended 31 December 2010

 

 

1    General information

Cheerful Scout Plc is a public limited company incorporated in the United Kingdom under the Companies Act 1985.  The Company is domiciled in the United Kingdom and its principal place of business in 25-27 Riding House Street, London, W1P 7PB.  The Company's Ordinary Shares are traded on the AIM market of the London Stock Exchange.

                                                                       

These condensed consolidated interim financial statements for the period ended 31 December 2010 (including the comparatives for the periods ended 31 December 2009 and 30 June 2010) were approved by the board of directors on 28 February 2011. 

 

The financial information set out in this interim report does not constitute statutory accounts for the purposes of section 434 of the Companies Act 2006.  The Group's statutory financial statements for the year ended 30 June 2010, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies.  The auditor's report on those financial statements was unqualified and did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006. 

 

The interim financial statements have been prepared using the accounting policies set out in the Group's 2010 statutory accounts and have not been audited.

 

Copies of the annual statutory accounts and the interim report can be found on our website at www.cheerfulscout.com or can be requested from the Company Secretary at the Company's Registered Office: 65 New Cavendish Street, London, W1G 7LS.

 

2     Basis of preparation

These condensed consolidated interim financial statements for the period ended 31 December 2010 have been prepared in accordance with IAS 34, 'Interim Financial Reporting' as adopted by the European Union.  The interim condensed consolidated financial statements should be read in conjunction with the annual financial statements for the year ended 30 June 2010, which have been prepared in accordance with IFRS's as adopted by the European Union.

 

3      Accounting policies

The accounting policies adopted are consistent with those of the annual financial statements for the year ended 30 June 2010, as described in those annual financial statements.  There has been no impact on the Group's financial position or performance from new and amended IFRS and IFRIC interpretations mandatory as of 1 July 2010.

 

4   Revenue and segment information

Revenue and segmental results have been disclosed by two operating segments of On Screen and Events in the manner that the information is presented to the Board of Directors, being the Chief Operating Decision Makers.  From 1 July 2010, the company's DVD & Interactive segment has been incorporated into the On Screen segment.  Comparative figures for On Screen include DVD & Interactive.

 

On Screen

On Screen

Events

Events

Total

Total

 

6 months

6 months

6 months

6 months

6

months

6 months

 

to 31 Dec

to 31 Dec

to 31 Dec

to 31 Dec

to 31 Dec

to 31 Dec

 

2010

2009

2010

2009

2010

2009

 

£

£

£

£

£

£

Revenue

482,625

736,664

503,015

-

985,640

736,664

Segment results

(36,765)

41,880

31,943

(16,586)

(4,822)

25,294

Unallocated expenses

 

 

 

 

(79,875)

(48,793)

Operating loss

 

 

 

 

(84,697)

(23,499)

Finance income

 

 

 

 

145

1,710

Taxation

 

 

 

 

-

9,250

Total comprehensive expense for the period

 

 

 

 

(84,552)

(12,539)

 

 

 

 

 

 

 

Segment assets

521,759

677,886

258,482

-

780,241

677,886

Unallocated assets

 

 

 

 

786,881

923,635

Total assets

521,759

677,886

258,482

-

1,567,122

1,601,521

 

 

 

 

 

 

 

Segment liabilities

(176,722)

(268,219)

(136,394)

(16,584)

(313,116)

(284,803)

Unallocated liabilities

 

 

 

 

(29,821)

(68,204)

Total liabilities

(176,722)

(268,219)

(136,394)

(16,584)

(342,937)

(353,007)

 

 

 

 

 

 

 

Capital expenditure

10,868

23,184

2,983

-

13,851

23,184

Depreciation & amortisation

35,247

32,821

360

-

35,607

32,821

 

 

 

5     Earnings per share

Basic earnings per share are calculated by dividing the profit or loss attributable to ordinary owners of the parent by the weighted average number of ordinary shares outstanding during the year.

 

Diluted earnings per share are calculated by dividing the profit or loss attributable to ordinary owners of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would have been issued on the conversion of all dilutive potential ordinary shares in ordinary shares.

 

The following reflects the income and share data used and dilutive earnings per share computations:

 

 

Unaudited

 

Unaudited

 

Audited

 

Six months to

 

Six months to

 

Year ended to

 

31 December

 

31 December

 

30 June

 

2010

 

2009

 

2010

 

£

 

£

 

£

 

 

 

 

 

 

(Loss) / profit attributable to owners of parent

(84,552)

 

(12,539)

 

50,226

 

 

 

 

 

 

 

Shares

 

Shares

 

Shares

 

 

 

 

 

 

Basic and diluted weighted average number of shares

7,837,500

 

7,989,130

 

7,959,966

 

 

 

 

 

 

 

6     Capital expenditure

During the period, the Group acquired property, plant and equipment with a cost of £13,851 (2009: £23,184).  During the period, the Group disposed of property, plant and equipment for proceeds of £15,000 (2009: £Nil).

 

7     Related party transactions

 

The Group has a related party relationship with its subsidiaries and its directors.

 

Transactions between Group companies, which are related parties, have been eliminated on consolidation and are therefore not included in these consolidated interim financial statements. 

 

 

 

Unaudited

 

Unaudited

 

 

 

Six months to

 

Six months to

 

 

 

31 December

 

31 December

 

 

 

2010

 

2009

 

 

£

 

£

Subsidiaries

 

 

 

 

 

 

 

 

 

Amounts owed by subsidiaries

 

396,423

 

226,272

Less provision

 

(201,308)

 

(200,000)

 

 

 

 

 

Amounts owed by subsidiaries

 

195,115

 

26,272

 

 

 

 

 

Amounts owed to subsidiaries

 

-                

 

            1

 

 

Cheerful Scout Plc is a guarantor for a lease entered into by Cheerful Scout Productions Limited (formerly known as Centralfix Limited), its subsidiary undertaking.

 

Harris and Trotter LLP is a firm in which N J Newman is a member.  The following was charged to the Group in respect of professional services.

 

Harris and Trotter LLP

 

 

£

 

£

Cheerful Scout plc

 

 

8,008

 

6,225

Cheerful Scout Productions Limited

           

 

4,017

 

4,880

nVision Technology Limited

 

 

2,800

 

-

 

 

 

 

 

 

 

 

 

14,825

 

11,105

 

The compensation of key management (including directors) of the Group is as follows:

 

 

 

£

 

£

Short-term employee benefits

 

60,150

 

75,000

Post-employee benefits

 

26,492

 

-

 

 

 

 

 

 

 

86,642

 

75,000

 

 


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