Half-yearly Report
CERES MEDIA INTERNATIONAL PLC
("Ceres" or the "Company" or the "Group")
Half Yearly Report
Chairman's Statement
Ceres is a supplier of environmentally friendly and sustainable materials for
the `Out of Home' and `In-store' print industry and has made progress in
developing and refining suitable materials for these markets.
The Board presents the results for the Company for 6 months to 31 January 2013.
The Company has continued to experience difficult trading conditions since
admission of its shares to AIM in September 2011. The general lack of
confidence in the marketplace has manifested itself for Ceres business in the
slower than anticipated adoption of its new printing materials by both the Out
of Home Advertising and In store point of sales ("POS") markets.
While year on year sales growth is clearly apparent (+168%), revenues remain
significantly behind budget for the first half period for the reasons outlined
above.
Operating losses versus the same period last year are significantly reduced
from (£453k) to (£89k) primarily as a result of a sizeable overhead reduction
programme. Further improvements in sales revenue during the second half are
expected.
Shortfalls in sales revenue against projections led to the inevitable cash
shortages earlier this year and the business was pleased to receive the backing
of a number of key shareholders in raising a further £275,000 to permit the
funding of product development initiatives and ensuring their readiness for
market.
As notified in recent announcements the Company has finally received approval
for use of the TierrafilmTM Backlit product with the major `Out of Home' owners
in the UK providing the Company with access to potential advertisers in this
large market place. The Company is now working with a number of high profile
brand owners and media buyers to launch TierraFilm in the UK during 2013. This
strategy is also being applied in North America with TierrafilmTM Backlit
materials having recently been approved for use by the first major US Shopping
Mall media owner.
After experiencing numerous adhesion difficulties with the original
TierrafilmTM Window-cling a new improved variant with a light tack adhesive, as
requested by end users, has been developed and market tests have now been
successfully completed. This market ready product will be introduced to the UK
and North American markets during May 2013.
With the approval of NatureWovenTM materials by Hewlett Packard at the end of
2012 the Company has continued to see increasing enquiries for products from
international printers and distributors with trials currently underway in a
number of European countries, South America and the Middle East. The Company is
hopeful this will begin to bear further fruit in the near future.
Sales of NatureWovenTM Chorus and Gossyp continue to be below the board's
expectations, however, off-take has increased in North America as brands,
agencies and printers increasingly become aware of how to best employ
materials. The board believes this trend will continue throughout 2013.
The directors believe that Ceres now has its portfolio of products ready to
take advantage of the UK and US advertisers' needs for environmentally
responsible advertising and display materials. The directors believe this will
finally give the Company the ability to grow and successfully exploit its
products in existing, new and developing markets.
The board would like to thank shareholders for their continued support of the
Company.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31st January 2013
six months six months
to January to January
2013 2012
(unaudited) (unaudited)
Notes £ £
CONTINUING OPERATIONS
Revenue 2 141,664 52,832
Cost of Sales (102,532) (32,563)
Administrative (128,206) (472,807)
Expenses
OPERATING LOSS (89,074) (452,538)
Interest Income - -
Finance Costs (787) (2,407)
LOSS BEFORE TAX (89,861) (454,945)
Taxation - -
TOTAL COMPREHENSIVE
EXPENSE FOR THE YEAR (89,861) (454,945)
LOSS PER SHARE 4 0.001 0.015
CONSOLIDATED BALANCE SHEET
At 31 January At 31 January
2013 2012
(unaudited) (unaudited)
ASSETS
NON-CURRENT ASSETS
Goodwill - 868,088
Intangible Assets 368,977 255,213
Property, plant and equipment 4,875 15,384
373,852 1,138,685
CURRENT ASSETS
Inventories 296,612 403,975
Trade and other receivables 31,367 49,790
Cash and cash equivalents 9,835 79,970
337,814 533,735
TOTAL ASSETS 711,666 1,672,420
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 5,574,070 5,260,069
Share premium 838,822 831,887
Other reserves (3,444,553) (3,444,553)
Retained earnings (2,617,848) (1,330,117)
TOTAL EQUITY 350,491 1,317,286
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 338,264 304,731
Financial liabilities 22,911 -
Interest bearing loans and - 50,403
borrowings
TOTAL LIABILITIES 361,175 355,134
TOTAL EQUITY AND LIABILITIES 711,666 1,672,420
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
AS AT 31 JANUARY 2013
Reverse
Called up Share Merger acquisition Profit and Total
Share Premium reserve reserve loss equity
capital account
£ £ £ £ £ £
At 1 August 5,574,070 838,822 1,157,850 (4,602,402) (2,527,987) 440,353
2012
Issue of - - - - - -
Equity
Loss for the - - - - (89,861) (89,861)
period
At 31 January 5,574,070 838,822 1,157,850 (4,602,402) (2,617,848) 350,491
2013
Reverse
Called up Share Merger acquisition Profit and Total
Share Premium reserve reserve loss equity
capital account
£ £ £ £ £ £
At 1 August 5,200,348 1,157,850 (4,602,402) (875,172) 880,624
2011
Issue of 59,721 831,887 - - - 891,607
Equity
Loss for the - - - - (454,945) (454,945)
period
At 31 January 5,260,069 831,887 1,157,850 (4,602,402) (1,330,117) 1,317,286
2012
CONSOLIDATED STATEMENT OF CASHFLOWS
As at 31 January 2013
six months six months
to January to January
2013 2012
(unaudited) (unaudited)
£ £
Cash flows from operating activities
Loss before tax (89,861) (454,945)
Depreciation charges 268 2,405
Investment income - -
(Increase)/decrease in inventories 44,330 (241,312)
(Increase)/decrease in trade and other 80,971 48,523
receivables
Increase/(decrease) in trade and other 14,913 (231,983)
payables
Net cash from operating activities 50,621 (877,312)
Cash flows from investing activities
Purchase of intangible fixed assets (14,437) (31,907)
Purchase of tangible fixed assets - (6,327)
Net cash from investing activities (14,437) (38,234)
Cash flows from financing activities
New loans in the year - 109,005
Issue of equity net of costs - 891,609
Repayment of loan - (58,602)
Finance interest paid (787) (2,407)
Net cash from financing activities (787) 939,605
Increase/(decrease) in cash and cash 35,397 24,059
equivalents
Cash and cash equivalents at the beginning (48,472) 55,911
of period
Cash and cash equivalents at end of period (13,075) 79,970
NOTES TO HALF YEARLY REPORT
1. GENERAL INFORMATION
Ceres Media International plc is a public limited company incorporated and
domiciled in the United Kingdom with its shares listed on the AIM market of the
London Stock Exchange.
The principal activity of the Group is the development, production and
provision of 100% natural and compostable printing materials to the advertising
and point of sale markets.
The Ultimate parent company of the Group is Ceres Media International plc whose
principle place of business is 81 Rivington Street, London, EC2A 3AY and
registered office is 1 Charterhouse Mews, London, EC1M 6BB.
The interim financial statements for the period ended 31 January 2013
(including the comparatives for the period ended 31 January 2012) were approved
by the Board of Directors on 24 April 2013. Under the Security Regulations Act
of the European Union ("EU"), amendments to the financial statements are not
permitted after they have been approved.
The financial information set out in this interim report does not constitute
statutory accounts as defined in Section 434 of the Companies Act 2006. The
Group's statutory financial statements for the year ended 31 July 2012,
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 statements under Sections 498(2)
and 498(3) of the Companies Act 2006.
The interim financial information has been prepared using the accounting
policies set out in the Group's 2012 statutory accounts. Copies of the annual
statutory accounts and the interim report may be obtained by writing to Ceres
Media International plc, 81 Rivington Street, London EC2A 3AY and can be found
on the Company's website at www.ceresmediaplc.com
2. SEGMENTAL REPORTING
six six
months months
to to
January January
2013 2012
£ £
EU 8,266 36,443
Rest of 133,398 16,389
the world
141,664 52,832
3. EXCEPTIONAL ITEMS
There were no exceptional items during the period.
4. EARNINGS/(LOSS) PER SHARE
The calculation of earnings per share is based on the net result and ordinary
shares in issue during the period as follows:
six months six months
to January to January
2013 2012
£ £
Loss for the financial period 89,861 454,945
Weighted average shares in issue in the 63,373,961 30,978,591
period
Loss per share 0.001 0.015
5. SHARE CAPITAL
During the period Ceres Media International plc had the following shares in
issue.
Ordinary shares of 20p/1p each
In issue 1 August 2012 63,373,961
Issued during the period -
In issue 31 January 2013
Weighted average shares in issue in the 63,373,961
period
For further information, please contact:
Ceres Media International PLC Tel: 020 3178 5622
Alex Dowdeswell/Leslie Barber
Nominated Adviser, Cairn Financial Tel: 020 7148 7900
Advisers LLP
Liam Murray/Jo Turner
Broker, XCAP Securities PLC Tel: 202 7101 7070
Jon Bellis
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