Interim Results

RNS Number : 3326I
Cheerful Scout PLC
10 March 2010
 

 

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

10 March 2010

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 2009.

 

Chairman's Statement

 

Cheerful has enjoyed a number of operational developments over the past six months, having broadened its offering through the creation of a new corporate events division, strengthened its team and focussed on its key value-drivers.  Although challenges still remain, the Board remains confident that these actions will place us in a good position for growth.

 

Operations

 

Cheerful is dedicated to providing an array of innovative corporate communication solutions through its On Screen, DVD and Events divisions.

 

Our On Screen division, which focuses on providing corporations with a compelling and comprehensive medium through which to portray their corporate message or strategy to their chosen audience, is performing well.  Our team continues to gain recognition for its innovative use of film, graphics and interactive events and on the back of this, we have strengthened relationships with existing clients and attracted some new clients as well.  Work completed during the period included a series of projects with FTSE listed companies operating in the financial and oil and gas sectors.  We also have a strong pipeline of exciting projects, which we hope to complete during the remainder of the year.

 

The DVD business has completed several Blu-ray projects and, although the revenue has decreased, we remain committed to this part of the business as it continues to add value to our overall offering.

 

During the period we formed a new events division, which complements and broadens our offering to current and prospective clients to such an extent that we are confident that there will be opportunities for cross selling as we deliver solutions to corporations looking to maximise their message.  We acquired certain assets on 17 December 2009 from Twentyfirst Century Communications Limited ('Twentyfirst'), an events management company, from its administrator for a nominal amount, including software, hardware, domain names and the registered trademark of 'Brand Theatre'.  We also recruited five key members of staff on who were formerly employed by Twentyfirst and whose expertise and experience in the corporate events arena are very welcome as we build this division.  Operating through the Company's wholly owned subsidiary, nVision Technology Limited, the team has already attracted new business and will also be working on our newly won position on the Central Office of Information's four year events roster. 

 

Financial Results

 

The Group is reporting a loss before tax of £21,789 (2009: profit before tax £18,109) on a turnover of £736,664 (2009: £894,889).  The operating loss for the Group is £23,499.  The Group's cash balance continues to be healthy at £901,587 (2009: £943,624).  These losses include the payment of salaries to those working in our events division and are partly attributable to a reduction in bank interest over the period.

 

Outlook

 

Looking forward, we are confident that the rest of the year will provide us with lots of opportunities, which will see your Company grow and its profile increased.   

 

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

 

S Appleton

Chairman

10 March 2010

 

** 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 2009

 

 

 

Notes

Unaudited

 

Unaudited

 

Audited

 

 

 

Six months to

 

Six months to

 

Year ended

 

 

 

31 December

 

31 December

 

30 June

 

 

 

2009

 

2008

 

2009

 

 

 

£

 

£

 

£

Continuing operations

 

 

 

 

 

 

 

Revenue

 

 

      736,664

 

894,889

 

1,269,788

 

 

 

 

 

 

 

 

Cost of sales

 

 

      (461,400)

 

(507,241)

 

        (820,026)

 

 

 

 

 

 

 

 

Gross profit

 

 

275,264

 

387,648

 

      449,762

 

 

 

 

 

 

 

 

Administrative expenses

 

 

          (298,763)

 

(384,616)

 

(718,648)

 

 

(23,499)

 

3,032

 

    (268,886)

 

 

 

 

 

 

 

 

Finance income

 

 

1,710

 

15,077

 

       23,408

 

 

 

 

 

 

 

 

(Loss) / profit before taxation

 

 

(21,789)

 

       18,109

 

      (245,478)

 

 

 

 

 

 

 

 

Taxation

 

 

       9,250

 

       -

 

       (475)

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

 

     (12,539)

 

     18,109

 

     (245,953)

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

Non-controlling interest

 

 

-

 

-

 

-

Owners of the parent

 

 

(12,539)

 

    18,109

 

      (245,953)

Total comprehensive income for the period

 

 

(12,539)

 

18,109

 

(245,953)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) / earnings per ordinary share:

 

 

 

 

 

Basic

 

5

  (0.15695)p

 

0.1848p

 

  (2.51451)p

Diluted

 

5

(0.15695)p

 

0.1848p

 

(2.51451)p

 

There are no recognised gains or losses other than those passing through the Statement of Comprehensive Income.

 

Condensed Consolidated Statement of Financial Position

At 31 December 2009

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

Six months to

 

Six months to

 

Year ended

 

 

 

31 December

 

31 December

 

30 June

 

 

 

2009

 

2008

 

2009

 

 

 

£

 

£

 

£

Non-current assets

 

 

 

 

 

 

 

Intangible assets

 

 

      365,154

 

      388,413

 

365,154

Property, plant and equipment

 

 

      155,847

 

200,072

 

        165,484

 

 

 

      521,001

 

      588,485

 

      530,638

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Inventories

 

 

          2,167

 

3,057

 

2,033

Trade and other receivables

 

 

      167,516

 

      368,809

 

      209,894

Current tax receivable

 

 

9,250

 

34,761

 

-

Cash and cash equivalents

 

 

901,587

 

    943,624

 

    831,491

 

 

 

    1,080,520

 

    1,350,251

 

    1,043,418

 

 

 

 

 

 

 

 

Total assets

 

 

    1,601,521

 

    1,938,736

 

1,574,056

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Trade and other payables

 

 

     (353,007)

 

(273,474)

 

       (300,378)

 

 

 

     (353,007)

 

(273,474)

 

     (300,378)

 

 

 

 

 

 

 

 

Net assets

 

 

1,248,514

 

    1,666,262

 

    1,273,678

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

Share capital

 

 

    1,004,688

 

    1,225,000

 

      1,054,688

Special reserves

 

 

   -

 

    -

 

      -

Capital redemption reserve

 

 

232,812

 

-

 

170,312

Retained earnings

 

 

11,014

 

440,262

 

48,678

Equity attributable to owners of the parent

 

 

    1,248,514

 

    1,665,262

 

    1,273,678

 

 

 

 

 

 

 

 

Non-controlling interest

 

 

       -

 

-

 

 -

 

 

 

 

 

 

 

 

Total equity

 

 

    1,248,514

 

1,665,262

 

    1,273,678

 

 

Condensed Consolidated Statement of Changes in Equity

At 31 December 2009


Share capital

Special reserves

Capital redemption reserve

Retained earnings

Attributable to owners of the parent

Non-controlling interest

Total equity


£

£

£

£

£

£

£

At 1 July 2008

1,225,000

1,747,416

-

(1,325,263)

1,647,153

-

1,647,153

Comprehensive income for the period

-

-

-

18,109

18,109

-

18,109

Transfer of special reserves to retained earnings

-

(1,747,416)

-

1,747,416

-

-

-

At 31 December 2008

1,225,000

-

-

440,262

1,665,262

-

1,665,262









At 1 July 2008

1,225,000

1,747,416

-

(1,325,263)

1,647,153

-

1,647,153

Comprehensive income for the period

-

-

-

(245,953)

(245,953)

-

(245,953)

Transfer of special reserves to retained earnings

-

(1,747,416)

-

1,747,416

-

-

-

Purchase of own shares

(170,312)

-

170,312

(127,522)

(127,522)

-

(127,522)

At 30 June 2009

1,054,688

-

170,312

48,678

1,273,678

-

1,273,678









At 1 July 2009

1,054,688

-

170,312

48,678

1,273,678

-

1,273,678

Comprehensive income for the period

-

-

-

(12,539)

(12,539)

-

(12,539)

Purchase of own shares

(62,500)

-

62,500

(25,125)

(25,125)

-

(25,125)

Issue of shares

12,500

-

-

-

12,500

-

12,500

At 31 December 2009

1,004,688

-

232,812

11,014

1,248,514

-

1,248,514

 

Condensed Consolidated Statement of Cash Flows

Six months ended 31 December 2009

 

 

Unaudited

 

Unaudited

 

Audited

 

Six months to

 

Six months

to

 

Year 
ended

 

31 December

 

31 December

 

30 June

 

2009

 

2008

 

2009

 

£

 

£

 

£

Cash flows from operating activities

 

 

 

 

 

(Loss) / profit before taxation

(21,789)

 

18,109

 

(245,478)

Depreciation

              32,821

 

                 26,180

 

            71,259

Amortisation of intangibles

-              

 

                 23,259

 

46,518

Gain on sale of property, plant and equipment

-

 

(20,000)

 

(20,242)

Finance income

            (1,710)

 

               (15,077)

 

(23,408)

 

9,322

 

32,471

 

(171,351)

Increase / (decrease) in trade and other payables

52,629

 

(99,647)

 

(72,743)

Decrease in trade and other receivables

            42,378

 

63,945

 

          222,860

(Increase) / decrease in inventories

                 (134)

 

(828)

 

196

Taxation

-

 

-

 

34,286

 

 

 

 

 

 

Cash generated / (used) in operating activities

104,195

 

               (4,059)

 

          13,248

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Finance income

              1,710

 

                 15,077

 

            23,408

Purchase of property, plant and equipment

            (23,184)

 

               (72,341)

 

(82,832)

Proceeds from sale of property, plant and equipment

-

 

20,000

 

20,242

Cash used in investing activities

                 (21,474)

 

               (37,264)

 

        (39,182)

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Purchase of own shares

(25,125)

 

-

 

            (127,522)

Issue of new shares

12,500

 

-

 

-

Cash used in financing activities

(12,625)

 

                 -

 

               (127,522)

 

 

 

 

 

 

 

 

 

 

 

 

Net increase / (decrease) in cash and cash equivalents

70,096

 

(41,323)

 

(153,456)

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

831,491

 

984,947

 

984,947

 

 

 

 

 

 

Cash and cash equivalents at end of period

901,587

 

943,624

 

831,491

 

 

 

 

 

 

 

 

 

Notes to the Interim Condensed Financial Statements

Six months ended 31 December 2009

 

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 2009 (including the comparatives for the periods ended 31 December 2008 and 30 June 2009) were approved by the board of directors on 10 March 2010. 

 

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 2009, 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 2009 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 2009 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 2009, 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 2009, as described in those annual financial statements.

 

The following new standards, amendments to standards or interpretations are mandatory for the first time for the financial year beginning 1 July 2009 and have been applied by the Group:

 

·    IAS 1 'Presentation of Financial Statements (Revised 2007)'

·    IFRS 2 'Share based payments (Revised 2009)'

·    IFRS 3 'Business Combinations (Revised 2008)'

·    IFRS 8 'Operating Segments'

 

The adoption of the above standards do not affect the financial position or results of the group.

 

4. Revenue and segment information

Segment information is presented in respect of the Group's primary format, business segments.  This is based on the Group's management and internal reporting structure.  Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.


On Screen

On Screen

DVD & Interactive

DVD & Interactive

Events

Events

Total

Total


6 months

6 months

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

to 31 Dec

to 31 Dec


2009

2008

2009

2008

2009

2008

2009

2008


£

£

£

£

£

£

£

£

Revenue

622,726

636,972

113,938

257,917

-

-

736,664

894,889

Segment results

109,243

73,227

(67,363)

(24,750)

(16,586)

-

25,294

48,477

Unallocated expenses







(48,793)

(45,445)

Operating (loss) / profit







(23,499)

3,032

Finance income







1,710

15,077

Taxation







9,250

-

Total comprehensive income for the period







(12,539)

18,109










Segment assets

363,084

616,995

314,802

489,411

-

-

677,886

1,106,406

Unallocated assets







923,635

832,330

Total assets

363,084

616,995

314,802

489,411

-

-

1,601,521

1,938,736










Segment liabilities

(174,233)

(142,168)

(93,986)

(62,447)

(16,584)

-

(284,803)

(204,615)

Unallocated liabilities







(68,204)

(68,859)

Total liabilities

(174,233)

(142,168)

(93,986)

(62,447)

(16,584)

-

(353,007)

(273,474)










Capital expenditure

11,592

36,171

11,592

36,170

-

-

23,184

72,341

Depreciation & amortisation

16,410

24,720

16,411

24,719

-

-

32,821

49,439

 

 

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

 

31 December

 

31 December

 

to

30 June

 

2009

 

2008

 

2009

 

£

 

£

 

£

 

 

 

 

 

 

Comprehensive income for the period

(12,539)

 

18,109

 

(245,953)

Adjusted for non-controlling interests

-

 

-

 

-

(Loss) / profit attributable to owners of parent

(12,539)

 

18,109

 

(245,953)

 

 

 

 

 

 

 

Shares

 

Shares

 

Shares

 

 

 

 

 

 

Basic weighted average number of shares

7,989,130

 

9,800,000

 

9,781,336

 

 

 

 

 

 

Dilutive potential ordinary shares:

 

 

 

 

 

Employee share options

-

 

-

 

-

Diluted weighted average number of shares

7,989,130

 

9,800,000

 

9,781,336

 

6. Capital expenditure

During the period, the Group acquired property, plant and equipment with a cost of £23,184 (2008: £72,341).  During the period, the Group disposed of property, plant and equipment for proceeds of £Nil (2008: £20,000).

 

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

 

 

 

 

2009

 

2008

 

 

 

 

£

 

£

Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts owed by subsidiaries

 

 

 

226,272

 

231,837

Less provision

 

 

 

(200,000)

 

(200,000)

 

 

 

 

 

 

 

Amounts owed by subsidiaries

 

 

 

26,272

 

31,837

 

 

 

 

 

 

 

Amounts owed to subsidiaries

 

 

 

1

 

            1

 

 

Included in the amounts owed by subsidiaries of £226,272 is £200,000 due from its subsidiary, Business Data Interactive Limited.  During the period ended 31 December 2008, Cheerful Scout plc made a provision of £200,000 against this loan as it is not considered to be recoverable. 

 

Cheerful Scout Plc is a guarantor for a lease entered into by 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

 

 

6,225

 

10,800

Centralfix Limited

           

 

4,880

 

7,265

 

 

 

 

 

 

 

 

 

11,105

 

18,065

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

£

 

£

Short-term employee benefits

 

 

75,000

 

75,000

 


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