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Pilat Media Global (PGB)

  Print      Mail a friend       Annual reports

Wednesday 30 May, 2012

Pilat Media Global

1st Quarter Results

RNS Number : 3645E
Pilat Media Global PLC
30 May 2012
 



 

 

Press Release

30 May 2012

 

Pilat Media Global PLC

 

("Pilat Media", the "Group" or the "Company")

 

Results for the three months ended 31 March 2012

 

Pilat Media Global plc (AIM:PGB), the London-based supplier of business management software to the media industry around the world, today announces its results for the three months ended 31 March 2012 ("the Quarter" or "Q1").

 

Highlights:

 

·                

Q1 revenues of £5.05 million at similar level as 2011 (Q1 2011: £5.05 million)

·                

Q1 gross profit up 2.7% to £2.29 million (Q1 2011: £2.23 million)

·                

Q1 operating profit before amortisation of intangible assets of £212,000 (Q1 2011: £11,000)

·                

Q1 profit after tax of £19,000 (Q1 2011: loss after tax of £190,000)

·                

Continued strong cash flow, £0.5 million generated from operating activities during the quarter (Q1 2011: £0.9 million)

 

Commenting on the Q1 results, Michael Rosenberg, Chairman of Pilat Media Global plc, said:

"Cash generation continues to remain strong and net cash after the loan has increased to over £7.1 million.  We continue to see increased demand from our existing clients and strong interest from new prospects, stimulated by the enhanced product offering that our R&D investments in the "new media" areas have yielded.  These prospects include two significant projects that have already commenced and are generating revenues but the contract signings are taking longer than we had originally anticipated.  We hope to secure these new contracts in the near future."

 

- Ends -



 

For further information:

Pilat Media Global plc

 

Avi Engel, Chief Executive Officer

Martin Blair, Chief Financial Officer

Tel: +44 (0) 20 8782 0700

aengel@pilatmedia.com

www.pilatmedia.com

 

Shore Capital (Nominated Adviser)

 

Dru Danford / Stephane Auton

Tel: +44 (0) 20 7408 4090

 

www.shorecap.co.uk

 

Media enquiries:

Abchurch

 

Henry Harrison-Topham / Jamie Hooper

Tel: +44 (0) 20 7398 7719

jamie.hooper@abchurch-group.com

www.abchurch-group.com



Chairman's and CEO's Statement

 

Pilat Media Global plc is pleased to announce its results for the three months ended 31 March 2012.

 

There was a small increase in revenues in Q1 2012 compared with Q1 last year.  However, as revenues in Q1 2011 included an untypically high contribution from a one-off resale of Oracle licences (£454,000), the like-for-like comparison reflects a 10% real underlying growth in quarterly revenues.  We continue to have a high demand from our existing client base for new modules, enhanced functionality and additional services.  We are also making good progress and are reaching the final stages on a number of new implementations.  We are very pleased to report that Showtime Networks Inc. went live in May 2012.  One by one we have been upgrading older clients to the latest .Net based IBMS Version 6, and by the end of this year, we expect all major clients to be on this version.  Whilst the conversion to IBMS Version 6 generates incremental revenues these upgrade projects are resource hungry which has limited our capacity for faster progress and revenue generation on other projects and new initiatives.  Completing these most recent major upgrades this year as planned should enable us to improve operational efficiency and increase gross margins.

 

Discussions with several strong prospects continue including two major opportunities where we have already started work and are already generating revenues under pre-contract purchase orders. Amongst the more promising opportunities there are license extensions and expansions that are being considered by existing clients.

 

A growing proportion of new business achieved from existing clients and proposed to new prospects is for the new IBMS functionality designed to support "new media" application and multi-platform Television Everywhere ("TVE") initiatives and the Group's R&D continues to focus on these emerging areas.

 

As we reported at the year end we were pleased with the growing contribution of our Amsterdam based MediaPro division that we created from Media Line, the Dutch company purchased in 2006 specialising in lower cost airtime sales software solutions.  At the end of Q1 2012 we signed a contract to supply MediaPro to a large multi-national broadcaster to support its advertising sales in Latin America.  This may open up new opportunities for MediaPro which so far has been focused on Central and Eastern European markets.

 

Cash has continued to grow strongly both from the completion of milestones on implementation projects and from existing clients where additional services and licences have been sold.  We expect cash to continue to increase throughout 2012.

 

Results

 

First quarter revenues in 2011 of £5,047,000 benefited from a one-off licence of £454,000 for an Oracle licence sold to a client.  Revenues for Q1 2012 of £5,053,000 therefore showed an underlying increase of 10% compared to Q1 2011 when this one-off licence is excluded.

 

The Q1 2012 revenues for implementation services (customisation, integration, training and consulting fees) excluding rechargeable costs were significantly above those of Q1 last year, with a 21.1% increase at £2,994,000 (Q1 2011: £2,472,000).  These services were mostly provided to existing clients and show the high new business potential that exists within the Company's installed client base.  The revenues for implementation services including rechargeable costs was £3,320,000 (Q1 2011: £3,067,000).

 

Maintenance revenues decreased £177,000 to £1,349,000 (Q1 2011 £1,526,000) partly due to the termination of the contract with FOX Television Stations Inc. and due to contract restructuring with another client.  Q1 2011 maintenance also included an amount paid for back dated maintenance of £78,000 which distorted the comparison.  As the current implementations reach completion we expect maintenance revenues to grow beyond the 2011 level but this may not be until 2013.  In addition to licence fees generated by the progression of the implementation projects, additional licence fees came from new modules, particularly the Advanced Rights Module being licensed by existing clients.  Licence revenues in Q1 2012 were £384,000 (Q1 2011: £454,000).

 

The quarter's gross margin increased to 45.3% (Q1 2011: 44.1%) as the comparable quarter last year was reduced by the lower margins earned on Oracle licences supplied.  The Q1 gross margin is still below our annual average due to the additional effort that was expended on some of the implementation projects which are nearing completion, particularly AT & T and Showtime Networks.  Showtime Networks went live on IBMS in May 2012 and post go live stability has now been achieved at AT&T.  The gross profit in the first quarter was £2,291,000 (Q1 2011: £2,228,000) and over the remaining nine months of 2012, as new contracts are signed and the mix of work returns to normal, we expect margins to increase and the annual average to reach the 2011 average.

 

The Company has continued its policy of making significant investments in product improvements and enhancements to meet the demands of its existing and new clients.  The research and development expenditure in the first quarter grew by 6.6% to £822,000 (Q1: 2011 £771,000).

 

Sales and marketing costs in Q1 2012 were lower at £211,000 (Q1: 2011 £274,000) as the mix of opportunities that we followed were less costly from a travel and time requirement perspective.

 

General and administrative costs at £977,000 (Q1: 2011 £1,033,000) were lower than the equivalent period last year due to the rationalisation the Company made in flattening its organisational structure in late 2011.

 

Whilst in Q1 2012, sterling continued to strengthen, the movement was not as significant as in Q1 2011 and as a result there is a currency loss of £71,000 compared to a loss in the equivalent period last year of £139,000.  The foreign currency loans that the Company put in place have had the desired impact of significantly moderating the fluctuations caused by exchange rate movements.  Therefore there was a reduced requirement for large forward contract hedges and consequently the fair value adjustments and foreign exchange movements on derivative financial instruments (Q1 2012 a gain of £67,000; Q1 2011 a loss of £15,000) were much reduced from those of previous years.

 

As the revenues in Q1 2012 were similar to Q1 2011, at a slightly improved gross margin and lower costs in part due to the structural reorganisation and lower exchange rate impact, there was an increase in the operating profit.  The operating profit before impairment of receivables and amortisation was £212,000 (2011: £11,000).  The amortisation, relating to the acquisition in 2006 of Media Line and the capitalisation of the R&D investment in technology upgrade back in 2008, has resulted in a small loss from operations of £54,000.  This has been compensated for by the fair value, foreign exchange movements and net finance income to give a small profit before tax.

 

Statement of Financial Position

 

There has been no capitalisation of software development costs in either Q1 2012 or Q1 2011.

 

Overall receivables at the end of Q1 2011 were £11.1 million having decreased from the 2011 year-end balance of £11.3 million.  The fall in trade receivables has been converted into additional cash and so cash balances, net of the foreign exchange loan have increased by 6% to £7.1 million from £6.7 million at the end of 2011. 

 

The increase in other payables from £6.8 million at the end of 2011 to £7.3 million at the end of Q1 2012 is a result of increased invoicing in advance of revenue recognition on maintenance charges.

 

Cash flow

 

The strong cash generation in Q1 2012 has caused the cash balance to increase from £12.4 million at the end of 2011 to £12.7 million at the end of the quarter, whilst the loan balance has fallen to £5.6 million from £5.8 million, due to foreign currency movements.

 

Outlook

 

The Board anticipates that in addition to the strong demand continuing from existing contracts, new contracts will be signed this year to enable revenues to reach and hopefully exceed last year's level, though it is too early to predict with any certainty the final outcome for 2012.  Work to contain and decrease costs is underway in case the signing of new contracts is delayed.  Cash, however, will continue to grow strongly and the Board is examining the best uses for this cash surplus.

 

Michael Rosenberg

Chairman

29 May 2012

Avi Engel

Chief Executive Officer

29 May 2012

 



CONSOLIDATED INCOME STATEMENT






Note

Unaudited

3 months to

31 March

2012

£000

Unaudited

3 months to

31 March

2011

£000

Audited

Year Ended

31 December

2011

£000

 






 

REVENUE


5,053

5,047

22,526

 






 

Cost of sales


(2,760)

(2,819)

(11,014)

 






 

GROSS PROFIT


2,293

2,228

11,512

 

Other operating expenses





 

Research and development


(822)

(771)

(2,941)

 

Selling and marketing


(211)

(274)

(1,385)

 

General and administrative


(977)

(1,033)

(4,508)

 

Exchange rate movement


(71)

(139)

(270)

 

 

 


(2,081)

(2,217)

 

(9,104)

 






 

Operating profit before impairment of receivables and before amortisation of intangible assets


212

11

 

2,408

 

Impairment of receivables


-

-

(2,279)

 






 

Operating profit after impairment of receivables and after amortisation intangible assets


212

11

 

129

 






 

Amortisation of intangible assets


(266)

(266)

(1,065)

 

 

LOSS FROM OPERATIONS


(54)

(255)

 

(936)

 






 

Fair value adjustment and foreign exchange movement on financial instruments


67

(15)

 

(40)

 

Finance income


24

34

74

 

Finance costs


(13)

(22)

(72)

 






 

PROFIT / (LOSS) BEFORE TAX


24

(258)

(974)

 






 

Tax (charge)/credit


(5)

68

114

 






 

PROFIT / (LOSS) FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE PARENT


19

(190)

 

(860)

 






 

EARNINGS PER SHARE





 

Basic

3

0.03p

(0.32p)

(1.44p)

 






 

Diluted

3

0.03p

(0.32p)

(1.44p)

 

 

 

Note:  The profit/(loss) from operations for the period arises from the Group's continuing operations.



 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


 

 

Unaudited

3 months to

31 March

Unaudited

3 months to

31 March

Audited

Year ended

31 December



2012

2011

2011

 



£000

£000

£000

 






 

PROFIT / (LOSS) FOR THE PERIOD


19

(190)

(860)

 






 

OTHER COMPREHENSIVE INCOME:





 

 

Deferred tax adjustments


 

-

 

-

 

(61)

 






 

 

Tax effect on share options


 

-

 

-

 

22

 

 

Exchange translation differences on foreign operations


 

(51)

 

11

 

(31)

 






 

Other comprehensive income for the period, net of tax


 

(51)

 

11

 

(70)

 






 

TOTAL COMPREHENSIVE

INCOME FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE PARENT


 

 

(32)

 

 

(179)

 

 

(930)

 






 

 



CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

 

 

ASSETS

Notes

 

Unaudited

31

March

 

Unaudited

31

March

 

Audited

31

December

NON-CURRENT ASSETS


2012

£000

2011

£000

2011

£000

Intangible assets


3,645

4,709

3,911

Property, plant and equipment


607

373

644

Deferred tax


55

28

79



4,307

5,110

4,634






CURRENT ASSETS





Trade receivables


3,760

4,682

4,450

Other receivables


7,302

9,256

6,825

Cash and cash equivalents


12,731

10,831

12,412








23,793

24,769

23,687






TOTAL ASSETS


28,100

29,879

28,321






EQUITY





Called up share capital

8

3,007

2,972

3,006

Share premium account

8

9,222

9,090

9,216

Capital redemption reserve


50

50

50

Merger reserve


(854)

(854)

(854)

Cumulative translation reserve


405

498

456

Retained earnings


7,234

7,890

7,213






EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT


19,064

19,646

19,087






LIABILITIES





NON-CURRENT LIABILITIES





Deferred taxation


304

483

340








304

483

340






CURRENT LIABILITIES





Trade and other payables


3,032

3,414

2,927

Taxation


-

295

114

Derivative financial instruments

6

73

44

94

Fixed term loan

7

5,627

5,998

5,759








8,732

9,751

8,894






TOTAL LIABILITIES


9,036

10,234

9,234






SHAREHOLDERS' EQUITY AND LIABILITIES


28,100

29,879

28,321











 


                        CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 


 

Share Capital

Share Premium Account

Capital Redemption

 Reserve

 

Merger

Reserve

Cumulative

Translation

 Reserve

 

Retained Earnings

 

 

Total


£000

£000

£000

£000

£000

£000

£000

Attributable to owners of the parent:








 

As at 1 January 2012

 

3,006

 

9,216

 

50

 

(854)

 

456

 

7,213

 

19,807

 

Profit for the period

 

-

 

-

 

-

 

-

 

-

 

19

 

19

Other comprehensive income:






 

 


Exchange translation differences on foreign operations

 

-

 

-

 

-

 

-

 

(51)

 

-

 

(51)

Total other comprehensive income, net of taxes

-

-

-

-

(51)

19

(32)









Total comprehensive income for the period

 

-

 

-

 

-

 

-

 

(51)

 

19

 

(32)

Transactions with owners:-








Proceeds of issued share capital

 

1

 

6

 

-

 

-

 

-

 

-

 

7

Share option charge for the period

 

-

 

-

 

-

 

-

 

-

 

2

 

2

Total transactions with owners

 

1

 

6

 

-

 

-

 

-

 

2

 

9

As at 31 March 2012

 

3,007

 

9,222

 

50

 

(854)

 

405

 

7,234

 

19,065

 



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 


 

Share Capital

Share Premium Account

Capital Redemption

Reserve

 

Merger

Reserve

Share

Option Reserve

 

Other Reserve

Cumulative

Translation

Reserve

 

Retained Earnings

 

 

Total


£000

£000

£000

£000

£000

£000

£000

£00

£000

Attributable to owners of Pilat Media Global plc:










 

As at 1 January 2011

 

2,970

 

9,082

 

50

 

(854)

 

1,245

 

3,108

 

487

 

3,716

 

19,804

 

Loss for the year

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(860)

 

(860)

Other comprehensive income:










Deferred tax adjustments

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(61)

 

(61)

Current tax credit in respect of share based payments

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

22

 

22

Exchange translation differences on foreign operations

 

-

 

-

 

-

 

-

 

-

 

-

 

(31)

 

 

-

 

(31)

 

Total other comprehensive income, net of taxes

-

-

-

-

-

-

(31)

(39)

(70)











Total comprehensive income for the year

 

-

 

-

 

-

 

-

 

-

 

-

 

(31)

 

(899)

 

(930)

Transactions with owners:-

 

 









Proceeds from share issue

 

36

 

134

 

-

 

-

 

-

 

-

 

-

 

-

 

170

Share option charge for the year

 

-

 

-

 

-

 

-

 

43

 

-

 

-

 

-

 

43

Total transactions with owners

 

36

 

134

 

-

 

-

 

43

 

-

 

-

 

-

 

213

Transfer of reserves

-

-

-

-

(1,288)

(3,108)

-

4,396

-

As at 31 December 2011

 

3,006

 

9,216

 

50

 

(854)

 

-

 

-

 

456

 

7,213

 

19,087

 



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 


 

Share Capital

Share Premium Account

Capital Redemption

Reserve

 

Merger

Reserve

Share

Option Reserve

 

Other Reserve

Cumulative

Translation

Reserve

 

Retained Earnings

 

 

Total


£000

£000

£000

£000

£000

£000

£000

£000

£000

Attributable to owners of Pilat Media Global plc:










 

As at 1 January 2011

 

2,970

 

9,082

 

50

 

(854)

 

1,245

 

3,108

 

487

 

3,716

 

19,804

 

Loss for the period

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(189)

 

(189)

Other comprehensive income:








 

 


Exchange translation differences on foreign operations

 

-

 

-

 

-

 

-

 

-

 

-

 

11

 

-

 

11

Total other comprehensive income, net of taxes

-

-

-

-

-

11

-

11











Total comprehensive income for the period

 

-

 

-

 

-

 

-

 

-

 

-

 

11

 

(189)

 

(178)

Transactions with owners:-

 

2

 

8

 

-

 

-

 

-

 

-

 

-

 

-

 

10

Share option charge for the period

 

-

 

-

 

-

 

-

 

10

 

-

 

-

 

-

 

10

Total transactions with owners

 

2

 

8

 

-

 

-

 

10

 

-

 

-

 

-

 

20

Reserves transfers

-

-

-

-

(1,255)

(3,108)

-

4,363

-

As at 31 March 2011

 

2,972

 

9,090

 

50

 

(854)

 

-

 

-

 

498

 

7,890

 

19,646


 

CONSOLIDATED STATEMENT OF CASH FLOWS

 





 


Notes 

Unaudited

3 months to

31 March

Unaudited

3 months to

31 March

Audited

Year ended

31 December



2012

£000

2011

£000

2011

£000






Net cash from operating activities

a

1,038

925

3,101






Income taxes (paid)/received


(555)

(73)

(189)






Interest paid


(13)

(23)

(72)






Interest received


24

34

74






Net cash generated from operating activities


494

863

 2,914






Net cash used in investing activities

b

(26)

(53)

(484)






Net cash used in financing activities

c

(124)

(147)

(149)






Net change in cash and cash equivalents


344

663

2,281






Cash and cash equivalents at beginning of period


12,412

10,152

10,152






Exchange (loss)/profit on cash and cash equivalents


(25)

16

(21)






Cash and cash equivalents at end of period


12,731

10,831

12,412

 

 



APPENDICES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS

 

 
Unaudited
3 months to
31 March
Unaudited
3 months to
31 March
Audited
Year ended
31 December
 
 
 
2012
£000
2011
£000
2011
£000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
a
Reconciliation of (loss)/profit before tax to net cash from operating activities
 
 
 
 
 
 
 
 
 
 
 
Profit / (Loss) before tax
24
(258)
(974)
 
 
Finance income
(24)
(34)
(74)
 
 
Finance costs
13
23
72
 
 
Depreciation and amortisation
329
319
1,274
 
 
Share option expense
2
11
43
 
 
(Gains) / Loss on derivative instruments
(28)
33
96
 
 
Decrease in trade and other receivables
106
685
3,339
 
 
Increase/(Decrease) in trade and other payables
616
146
(675)
 
 
 
 
 
 
 
 
Net cash from operating activities
1,038
925
3,101
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
b
Cash used in investing activities
 
 
 
 
 
 
 
 
 
 
 
Purchase of property, plant and equipment
(26)
(53)
(484)
 
 
 
 
 
 
 
 
Net cash used in investing activities
(26)
(53)
(484)
 
 
 
 
 
 
 
 
 
 
 
 
 

 
c
Cash (utilised in)/generated from financing activities
 
 
 
 
Proceeds from the issue of share capital
8
10
171
 
Decrease in long term loan
(132)
(157)
(320)
 
 
 
 
 
 
Net cash utilised in financing activities
(124)
(147)
(149)
 
 
 
 
 
 
 
 

 

1.  General Information

 

The Company is a limited liability company incorporated and domiciled in the United Kingdom.  The address of its registered office is 19th Floor, Wembley Point, 1 Harrow Road, Wembley Point, London HA9 6DE.  Copies of this statement are available from this address and from the Company's website www.pilatmedia.com.

 

The Company is quoted on the AIM Market of the London Stock Exchange and is co-listed on the Tel Aviv Stock Exchange.

 

This preliminary announcement was approved for issue on 30 May 2012.

 

2. Basis of preparation

 

The interim announcement has been prepared under the historical cost convention, except for the revaluation of derivative financial instruments, on a going concern basis and in accordance with International Accounting Standard ('IAS') 34 'Interim Financial Reporting'.

 

The interim announcement has been prepared on the basis of the same accounting policies as published in the audited financial statements of the Group for the year ended 31 December 2011 and the accounting policies to be adopted in the financial statements of the Group for the year ending 31 December 2012.  Comparative figures for the year ended 31 December 2011 have been extracted from the statutory financial statements for that period which carried an unqualified audit report.

 

Statutory financial statements for the year ended 31 December 2011 have not yet been delivered to the Registrar of Companies. The auditor's report on the statutory financial statements for the year ended 31 December 2011, was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. The financial information in this preliminary announcement does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. 

 

This interim announcement has not been audited but has been reviewed by the auditors in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim'- Financial Information Performed by the Independent Auditor of the Entity.

 



3. Earnings per share

 

Basic and diluted earnings per share are based on the profit / (loss) for the period attributable to owners of the parent and on the following weighted average number of shares in issue.

 

 

Weighted average number of shares in issue

 

 

3 months to

31 March

2012

3 months to  

31 March

2011

Year ended

31 December 2011

 

 

 

 

Basic

60,160,965

59,431,949

59,702,644

Adjustments:

 

 

 

Diluted effect of share options

 

866,622

 

-

 

-

 


 

 

 

        

Diluted

61,027,587

59,431,949

59,702,644

 

 

4. Segmental Analysis

 

IFRS 8 requires the Group to disclose segmental information based on financial data used by the Chief Operating Decision Maker (CODM) who is responsible for making financial decisions. The CODM is considered to be the Company's Senior Managers and Executive Directors.

 

There are two material customers for the 3 month period where the revenue is 10.2% and 10.1% of the total revenue respectively. (Year ended 31 December 2011: 12.9% and 12.4%; 3 Months to 31 March 2011 14.7% and 13.2%)

 

The Directors consider there to be only one segment under IFRS 8 based on the information reviewed by the CODM.

 

The Group's revenue and profit/(loss) before tax were all derived from its principal activity.  Sales and profit from operations were made in the following geographical markets:

 


REVENUE




 



3 months to

31 March

2012

£000

 

 

 

%

3 months to

31 March

2011

£000

 

 

 

%

Year ended

31 December

2011

£000

 

 

 

%










United Kingdom

387

7.7

284

5.6

1,513

6.7


USA

1,272

25.2

1,305

25.9

5,135

22.8


Canada

1,029

20.4

951

18.8

4,402

19.5


Australia

827

16.4

1,192

23.6

4,501

20.0


Other

1,538

30.3

1,315

26.1

6,975

31.0











5,053


5,047


22,526










 



 

 


NON-CURRENT ASSETS

Intangible assets

Property, Plant and equipment

 



3 Months to

31

March

2012

£000

3 Months to

31

March

2011

£000

12 Months

to 31

December

2011

£000

3 Months to

31

March

2012

£000

3 Months to

31

March

2011

£000

12 Months to

31

December

2011

£000










United Kingdom

3,645

4,709

3,911

442

201

478


Israel

-

-

-

118

132

118


Other

-

-

-

47

41

48











3,645

4,709

3,911

607

374

644









 

The above geographical location has been provided based on the destination of services provided.

 

5.  Seasonality

 

Whilst revenue is not seasonal there has been an historic trend of the second half of the year being stronger than the first half of the year.  For the year ended 31 December 2011, the 2nd half revenue represented 53% (2010: 52%) of the annual revenue.

 

6.  Derivative Financial Instruments

 



31 March

2012

£000

31 March

2011

£000

31 December

2011

£000







Forward foreign exchange contracts - classified as held for trading - Israeli New Shekel

 

(36)

 

11

 

(36)


Forward foreign exchange contracts  - classified as held for trading - Canadian Dollar

 

7

 

(25)

 

(15)


Forward foreign exchange contracts  - classified as held for trading - US Dollar

 

(37)

 

-

 

(43)


Forward foreign exchange contracts  - classified as held for trading - Australian Dollar

 

-

 

(19)

 

-







Total

(66)

(33)

(94)












Disclosed as:





Current liabilities

(73)

(44)

(94)


Current asset

7

11

-







Total

(66)

(33)

(94)






 

Derivatives are classified as a current asset or liability based on the expiry of the foreign exchange contract.

 

As at 31 March 2012, the Group held forward foreign currency contracts to sell Canadian Dollar, US Dollar and Israeli New Shekel for sterling of £468,075, £2,035,109 and £3,003,154 (March 2011 £746,622, £Nil and £875,779: Australian Dollar - £302,587; December 2011: Canadian Dollar - £790,109, US Dollar £2,517,721 and Israeli New Shekel - £2,023,881) respectively to hedge expected settlements of foreign currency receivable balances. The Canadian Dollar, US Dollar and Israeli New Shekel contracts mature over the next nine months with the final contract expiring in December 2012.

7.  Fixed term loan

 



31 March

2012

£000

31 March

2011

£000

31 December

2011

£000







CAD Fixed term loan

 

2,380

 

2,442

 

2,402


USD Fixed term loan

 

3,247

 

3,556

 

3,357







Total

 

5,627

 

5,998

 

5,759







The loans are charged interest at LIBOR plus 0.5%, secured by a charge over the company's cash balances of £6,591,950

 

(31 December 2011: £6,591,950; 31 March 2011: £6,575,860) and repayable on demand, with a maturity date of 31 December 2012.

 



8. Share Capital and Share Premium

 

 

SHARE CAPITAL

SHARE PREMIUM

SHARE CAPITAL

SHARE PREMIUM

 

31 March

31 March

31 March

31 March


2012

2011

2011

2011

 

Number of shares

£000

£000

Number of shares

£000

£000

Authorised:







Ordinary shares of 5p each

 

100,000,000

 

5,000


 

100,000,000

 

5,000,000









Allotted, issued and fully paid:







Ordinary shares of 5p each







At 1 January

60,126,838

3,006

9,216

59,400,331

2,970

9,082

Conversion of options







Employee share options at 23.5p grant price

 

 

32,668

 

 

1

 

 

6

 

 

41,667

 

 

2,083

 

 

8








At 31 December

60,159,506

3,007

9,222

59,441,998

2,972

9,090








 

 

 

SHARE CAPITAL

SHARE PREMIUM

 


 

31 December

31 December




2011

2011



 

Number of shares

£000

£000




Authorised:







Ordinary shares of 5p each

 

100,000,000

 

5,000












Allotted, issued and fully paid:







Ordinary shares of 5p each







At 1 January

59,400,331

2,970

9,082




Conversion of options







Employee share options at 23.5p grant price

726,507

36

134











At 31 December

60,126,838

3,006

9,216











 



INDEPENDENT REVIEW REPORT TO MEMBERS OF PILAT MEDIA GLOBAL PLC

 

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the interim financial report for the three months ended 31 March 2012 which comprises the Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity, Consolidated Statement of Financial Position, Consolidated Statement of Cash Flows and the related explanatory notes.  We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our review work has been undertaken so that we might state to the company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed.

 

Directors' Responsibilities

The interim financial report, is the responsibility of, and has been approved by the directors.  The directors are responsible for preparing and presenting the interim financial report in accordance with the AIM Rules for Companies.

 

As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards and International Financial Reporting Interpretations Committee ("IFRIC") pronouncements as adopted by the European Union.  The condensed set of financial statements included in this interim financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting" as adopted by the European Union.

 

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim financial report based on our review.

 

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom.  A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial report for the three months ended 31 March 2012 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union, and the AIM Rules for Companies.

 

 

Baker Tilly UK Audit LLP

Chartered Accountants

25 Farringdon Street

London

EC4A 4AB

 

29 May 2012


This information is provided by RNS
The company news service from the London Stock Exchange
 
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