Update Regarding SIS

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 £6m and £8m for its financial year. The final result for its year ended 31 March 2022 was a profit before tax of £7.0 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 £62.8 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 £4.4m 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 £58m.

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 individually significant items*	Individually significant Items*	Total	Before individually significant items*	Individually significant Items*	Total
	£'000	£'000	£'000	£'000	£'000	£'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 £0.8m (Loss of £7.8m) versus that previously reported (being a loss of £8.6m).

		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 Melvin Lawson, Non-executive Director		Mob: [phone] Tel: [phone]
Strand Hanson Limited James Harris Matthew Chandler		Tel: [phone]

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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