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Vitesse Media PLC (VIS)

  Print          Annual reports

Thursday 04 September, 2014

Vitesse Media PLC

Interim Results and Acquisition of Carduus Capital

RNS Number : 7956Q
Vitesse Media PLC
04 September 2014
 



Vitesse Media Plc

Unaudited interim results for the six months ended 31st July 2014; acquisition of Carduus Capital; issue of loan stock

 

 

Highlights:

 

·    Revenues for the period up 4% on H1'13

·    Significant reduction in pre-tax losses down by 48% to £72k (H1'13 loss £137k) and loss before depreciation, amortisation and share options more than halved to £45k (H1'13 loss £97k)

·    Revenue from events up by 41%

·    Development of the crowd funding platform continues apace

·    Issue of £60k loan stock completed

·    Acquisition of Carduus Capital, an FCA regulated business

 

For further information:

 

Vitesse Media plc


Executive Chairman: Sara Williams

020-7250 7010

CEO: Niki Baker

020-7250 7010



Westhouse Securities Ltd


Martin Davison

020-7601 6100



Kreab Gavin Anderson


Robert Speed

020-7074 1800

 

 

About Vitesse Media plc

Vitesse Media plc is a leading b2b media business, specialising in technology, SME business and high-net worth investment through events, digital activities, data and research. The business is developing a crowd-funding and peer-to-peer lending platform to leverage its existing client and readership base. Vitesse Media plc is quoted on AIM.

 

Comment on the results for the six months to 31 July 2014

 

Revenues for the six months ended July 2014 were ahead by 4% over the corresponding prior year period. The Group achieved a significant reduction in pre-tax losses, down by 48% to £72k and a corresponding reduction in the loss before depreciation, amortisation and share options, which was more than halved to £45k. In addition, the Group completed the issue of a £60k loan stock and secured for a nominal sum the acquisition of Carduus Capital, an FCA regulated business, in order to accelerate the regulatory approval of its crowd funding business.

 

Events revenues were up by 41% for the period, achieved mainly by winning contracts for managed events, but also the launch of SDX Symposium and Tech Invest North. Four further new events will be launched during the next twelve months.

 

Revenues from investment products rose by 3%, with online revenues increasing over 40%, which is the first increase seen in this segment in four years. Notably, the What Investment web site achieved a 76 % increase in unique users, with page views up 72% to over 600,000.

 

Trading in the first half for our SME websites was disappointing, although the transition towards non-advertising revenues continued, with an increase of 59% in revenues attributable to the small business club, guides and bespoke projects.

 

Information Age, our technology title, saw revenues for its events doubled in the period and a steady increases in online revenues and lead generation, whilst we reduced the overheads for the brand by 40%.

 

Development of the alternative finance platform

 

Development of the crowd-funding platform continues on timetable. The scoping of technical aspects is now complete and coding has begun. The group is developing marketing strategies that leverage synergies across the Vitesse client and readership base.

 

Carduus Capital

 

In order to accelerate the process of securing regulation for the Group's crowdfunding business ahead of its launch, Vitesse has acquired for the sum of £10,000 Carduus Capital from Derek Stewart, a former director and continuing shareholder of Vitesse Media plc, and his partner Scott MacDonald. The acquisition will accelerate the regulation of the Group's crowdfunding platform.

 

Issue of loan stock

 

The board decided that, in view of the development of its new business strategy, and the wish to accelerate the investment in the upgrading of our technology platforms, that it would be prudent to secure new financing for the business. Five shareholders (Andrew Brode, Greenhill LLC, Alan Mearns, David Smith and Sara Williams) have provided £60k of funding through subscription to an issue of loan stock.

 

The loan is a related party transaction for the purposes of the AIM Rules. Accordingly, as required by the AIM Rules, the independent directors of the Company, being for the purposes of the loan Niki Baker and Keith Willey, having consulted with the Company's nominated adviser, Westhouse Securities Limited, consider that the terms of the transaction are fair and reasonable in so far as the Company's shareholders are concerned.

 

Outlook

 

I am pleased to report that, despite certain challenges that remain ahead, the outlook for the group is positive for the year and the board expects year on year improvement once again.

 

  

Consolidated statement of comprehensive income

 

 

For the six months ended

 31 July 2014

 31 July 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

6 months ended

6 months ended

Year ended

 

 

 31 July 2014

 31 July 2013

31 January 2014

 

 

(unaudited)

(unaudited)

(audited)

 

 

£'000

£'000

£'000

 

 

 

 

 

Revenue

 

1,042

1,002

2,110

 

 

 

 

 

 

 

 



 

 

1,042

1,002

2,110

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

(344)

(277)

(572)

 

 

 



 

 

 

 

 

Gross profit

 

698

725

1,538

 

 

 

 

 

Administrative expenses

(761)

(858)

(1,708)

 

 

 



 

 

 

 

 

Operating loss

(63)

(133)

(170)

 

 

 

 

 

Finance costs

 

(9)

(4)

(8)

Finance income

 

 

-

0

 

 

 



 

 

 

 

 

Loss before tax

(72)

(137)

(178)

 

 

 

 

 

Tax expense

 

-

-

-

 

 

 



 

 

 

 

 

Loss for the period attributable

(72)

(137)

(178)

to owners of the parent

 



 

 

 

 

 

 

 

 

 

 

Loss per share

 

 

 

Basic

 

(0.14p)

(0.4p)

(0.47p)

Diluted

 

(0.14p)

(0.4p)

(0.47p)

 

 

 

Consolidated statement of financial position




 As at 31 July 2014






6 months ended 31 July 2014 (unaudited)

6 months ended

31 July 2013 (unaudited)

 Year ended

 31 January 2014 (audited)




£'000

£'000

£'000


ASSETS





Non-current assets





Goodwill


729

729

729


Other intangible assets


1,414

1,378

1,368


Property, plant and equipment


3

5

3


Trade and other receivables


-

21

-










2,146

2,133

2,100








Current assets





Inventories


16

18

16


Trade and other receivables


341

414

319


Cash and cash equivalents


177

19

227




534

451

562








Total assets

2,680

2,584

2,662








EQUITY AND LIABILITIES











Equity





Share capital


2,805

2,684

2,779


Share premium account


3,239

3,095

3,209


Share option reserve


133

144

133


Other reserves


104

104

104


Retained earnings


(4,749)

(4,638)

(4,677)








Total equity attributable to

1,532

1,389

1,548


owners of the parent

















Current liabilities





Trade and other payables


827

974

816


Borrowings


211

221

188



1038

1,195

1,004







Non- current liabilities





     Borrowings

110

-

110


Total liabilities

1148

1,195

 

1,114








Total equity and liabilities

2,680

2,584

2,662


 

 


 

Consolidated statement of cash flows






 6 months ended

31 July 2014

6 months ended

 31 July 2013

Year ended

31 January 2014



(unaudited)

(unaudited)

(audited)



£'000

£'000

£'000


Cash flows from operating activities





Loss before taxation

(72)

(137)

(178)







Adjustments










Finance cost

9

4

8


Amortisation

23

27

52


Depreciation of property, plant and equipment

1

2

4


Share-based payment charge

-

12

2


Operating cash flows before movements

(39)

(92)

(112)


in working capital










Decrease/(increase) in inventories

-

1

3


(Increase)/decrease in receivables

(22)

(81)

36


Increase/(decrease) in payables

11

186

27







Cash flows from (used in) operating activities

(50)

13

(46)







Interest received


-

-


Interest paid

(9)

(4)

(8)







Net Cash from/(used in) operating activities

(59)

9

(54)







Investing Activities










Purchases of property, plant and equipment

-

(4)

(4)


Purchases of intangible assets

(70)

(13)

(28)







Net cash used in investing activities

(70)

(17)

(32)







Financing Activities





Proceeds from issue of share capital

56

-

209


Share issue costs

-

-

-


Short term loan

23

55

55


Drawdown on invoice discounting facility

0

(3)

(36)


Proceeds from long-term borrowings



110


Net cash (used in)/generated from financing activities

79

52

338







Net increase in cash and cash equivalents

(50)

44

253


Cash and cash equivalents at beginning of period

227

(25)

(25)







Cash and cash equivalents at end of period

177

19

227

 

 

 

Consolidated Statement of changes in equity 

 

 

 

 

6 months ended 31 July 2014

Share capital

Share premium Account

Share options reserve

Other reserves

Retained earnings

Total


£ '000

£ '000

£ '000

£ '000

£ '000

£ '000

ATTRIBUTABLE TO OWNERS OF PARENT














As at 1st February 2014

2,779

3,209

133

104

(4,677)

1,548








Profit for the period

-

-

-

-

(72)

(72)








Total comprehensive income for the period

-

-

-

-

(72)

(72)















TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS














Issue of share capital

26

30

-

-

-

56

Issue costs

-

-

-

-

-

-








TOTAL TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS

-

-

-

-

-

-








Recognition of share-based payments

-

-


-

-


Share options lapsed

-

-

-

-

-

-

As at 31 July 2013

2,805

3,239

133

104

(4,749)

 

 

1,532








12 months ended 31 January 2014

 

ATTRIBUTABLE TO OWNERS OF PARENT







As at 1 February 2013








2,684

3,095

132

104

(4,501)

1,514

Profit for the year








-

-

-

-

(178)

(178)

Total comprehensive income for the period








-

-

-

-

(178)

(178)

TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS







Issue of share capital







Issue costs

95

114

-

-

-

209


-

-

-

-

-

-

TOTAL TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS








95

114

-

-

-

209

Recognition of share-based payments







Share options lapsed

-

-

2

-

-

2

As at 31 January 2014

-

-

(1)

-

1

-


2,779

3,209

133

104

(4,677)

1,548

 

6 months ended 31 July 2013

 

 

ATTRIBUTABLE TO OWNERS OF PARENT





















As at 1st February 2013








2,684

3,095

132

104

(4,501)

1,514

Profit for the period








-

-

-

-

(137)

(137)

Total comprehensive income for the period








-

-

-

-

(137)

(137)








TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS














Issue of share capital







Issue costs

-

-

-

-

-

-


-

-

-

-

-

-

TOTAL TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS








-

-

-

-

-

-

Recognition of share-based payments







Share options lapsed

-

-

12

-

-

12

As at 31 July 2013

-

-

-

-

-

-


2,684

3,095

144

104

(4,638)

1,389

 

 

 

Notes to the Interim Results

 

 

1. Basis of preparation

 

These unaudited condensed consolidated interim financial statements are for the six months ended 31 July 2014. They have been prepared in accordance with recognition and measurement principles of International Financial Reporting Standards (IFRS) as adopted by the European Union. This report should be read in conjunction with the annual financial statements for the year ended 31 January 2014, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and International Financial Reporting Interpretations Committee ('IFRIC') Interpretations and the Companies Act 2006, as applicable to companies reporting under IFRS.

 

The financial information in this interim announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The unaudited interim financial statements were approved by the Board on…….

The comparative financial information for the year ended 31 January 2014 does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The statutory accounts of Vitesse Media plc for the year ended 31 January 2014 have been reported on by the Company's auditor, Baker Tilly UK Audit LLP, and have been delivered to the Registrar of Companies.

 

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 January 2014.

 

The financial information for the six months ended 31 July 2014 is unaudited.

  

 

Nature of operations and general information

 

 

2. Segmental information

 

Since the end of the financial year, 31 January 2013, we report our income segments as Events, SME, Investment and Technology, dropping the segmental information on business and investment as no longer being relevant to the management of the business.

 


Events

SME

Investment

Technology

Total


£'000

£'000

£'000

£'000

£'000







6 months ended 31 July 2014











Segmental revenue - continuing

325

250

221

 

246

1,042

Total segmental revenue

325

250

221

246

1,042







Segment result

325

250

221

246

1,042







6 months ended 31 July 2013












Segmental revenue - continuing

258

277

224

242

1,001

Total segmental revenue

258

277

224

242

1,001







Segment result

258

277

224

242

1,001







  

 

12 months ended 31 January 2014












Segmental revenue - continuing

696

572

426

415

2,109

Total segmental revenue

696

572

426

415

2,109







Segment result

696

572

426

415

2,109

 

  

3. Earnings/(loss) per share

 

The calculation of loss per share is based on the following losses and numbers of shares. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has one category of dilutive potential ordinary shares: share options.

 


6 months to 31 July 2013

(Unaudited)

6 months to 31 July 2013

(Unaudited)

Period end

31 January 2014

(audited)


£'000

£'000

£'000

Earnings/(loss) for the period

(72)

(137)

(178)


No.

No.

No.

Weighted average number of shares

49,772,912

34,903,715

38,076,241





 

 

4. Dividends

No dividend is proposed for the six months ended 31 July 2014.

 

 

5. Copies of Interim Results

Copies of the Interim Results will be available from www.vitessemedia.co.uk.


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