RNS Number:1058O
Newsplayer Group PLC
30 July 2003
FOR IMMEDIATE RELEASE
30 July 2003
NEWSPLAYER GROUP PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 APRIL 2003
Newsplayer Group plc ("NPG"), the media company, today announces interim results
for the six months ended 30 April 2003.
Financial Highlights:
* Turnover of #113,505 compared to #350,526 for the six months ended 31
October 2002.
* Pre-tax loss of #2,426,194 compared to a loss of #2,744,292 for the six
months ended 31 October 2002.
* Cash reserves of #100,252 at 30 April 2003 compared to #438,874 at 31
October 2002.
Operational Highlights:
* Agreement signed with The Footballers Football Channel to enrich the
content within Pure World Cup including the highlights of the 2002
tournament in Japan and South Korea.
* Agreement signed with Cross Media Entertainment to distribute NPG
properties in North America.
* Mobile streaming video pilot programme launched with SFR in France.
Events subsequent to period under review:
* Agreement signed with EMI to act as a Digital Service Provider in
Europe for the provision of downloaded audio tracks.
* 2-year agreement signed with NTL to provide two channels of content to
their Broadband platform.
* Referral agreement signed with Global Media Services to provide
professional services such as webcasting, encoding, storage, hosting and
e-mail marketing.
* A placing of new shares to raise a minimum of #700,000 in progress.
Commenting on the results, Paul Duffen, Chief Executive Officer, said:
"In addition to the distribution and content agreements we have signed during
the period, the first half of the year has seen a focus on increasing efficiency
and reducing costs. In February we completed the transfer of all Group
technology resources to GMS in New York at an annualised cost saving of over
#500,000 whilst at the same time securing a scalable solution to distribute our
content globally at "industry best" service levels. As a result of this
initiative and other efficiencies we have reduced the fixed cost base of the
Group to less than #900,000 per annum. We are now in the process of completing a
placing of new shares, to raise a minimum of #700,000 before expenses to enable
us to complete the all-paper acquisition of Global Media Services. As at 29 July
2003 we have commitments in hand for the minimum amount of #700,000 and
anticipate the fundraising being completed by 1 August 2003."
Enquiries:
NPG plc 020 7927 6699
Paul Duffen, CEO
Merlin Financial 020 7606 1244
Philip Ranger/Nicola Davidson
CHIEF EXECUTIVE STATEMENT
OVERVIEW
Newsplayer Group plc is a new media company that exploits rights and/or licenses
to quality cultural and historical video content and markets them globally to
business, educational and consumer audiences using interactive technology.
Revenues are generated from the licensing of content to third parties, from
subscription and pay-per-view fees paid by consumers, and from shared
advertising revenues. NPG is becoming the partner of choice for the digitization
and distribution of broadcast content and interactive programme creation.
MEDIA CHANNELS AND LICENSED CONTENT
Footage.net - A leading stock footage portal which manages the databases of many
of the world's leading stock footage libraries, including ABC News, CNN, Action
Sports, National Geographic, and many others.
Newsplayer.com - ITN/Reuters Archives. A subscription consumer channel offering
1,000 hours of footage from ITN/ Reuters, including material from Paramount,
Gaumont, British Empire News, Visnews, French Pathe et al. Features original
video footage of some of the most important and notable events of the 20th
century.
Frost.tv - The Frost Collection. A video-on-demand subscription channel
featuring the unparalleled archive of 40 years of Sir David Frost's original
interviews with the world's most famous public figures. Strategic partnership to
develop commercial applications, both on- and off-line.
Screenplayer.com - Passport International Productions. A video-on-demand
subscription channel offering the largest collection of Hollywood footage in the
world, including more than 650 hours of movie-related documentaries comprised of
film trailers, celebrity interviews and profiles of the stars.
Video.tv - EMI Catalogue. A video-on-demand subscription channel providing an
interactive collection of EMI music videos featuring artists and groups spanning
the 20th Century. Advanced negotiations are underway with other major record
labels who have expressed an interest in having their material represented on
VideoTV.
Birdstream.com - RSPB Film Collection. A video-on-demand subscription channel
giving access to 100 hours of award-winning wildlife footage in the Film
Collection of the Royal Society for the Protection of Birds. Professional
programme makers can also license the material through RSPB's website.
Pure World Cup.com- A video-on-demand subscription channel providing World Cup
highlights from 1958 to 1998.
Ucreate.tv - A unique editing tool allowing users to make their own films online
using home video material and 1,000 hours of classic archive footage from
newsplayer.com.
The Alison Mercer Collection- Exclusive licence for 80 hours, or 1400 video
clips, of film-related material of cinema's golden age and US-focused archive
news and features.
Stock Video of Boston- Exclusive licence for 150 hours of classic sports footage
from Stock Video of Boston, sourced from Columbia Sports News, Castlefilms and a
selection of private collections.
FINANCIAL RESULTS
The loss for the period was #2,426,194 compared to a loss of #720,304 for the
equivalent period in 2002. No dividend has been paid or is proposed.
OUTLOOK
The outlook for the Group continues to focus on the strategy outlined in the
annual report issued in April 2003. Our partnership with GMS in New York has
enabled the Company to strengthen and consolidate our technical resource whilst
at the same time providing us with the tools to pursue service-based revenues
around the creation and distribution of streaming media assets. The USA is
undoubtedly a very important market for the Company's products and services and
the combination of our subsidiary company, NPG Inc., and our relationship with
GMS provides an ideal platform for us to exploit that opportunity.
We have stated that it is our intention to acquire GMS. The process has taken
longer than originally anticipated but should be completed in the summer of
2003. In the meantime we continue to work closely as strategic partners and I
am confident that the combination of our two businesses with complementary
products, skill sets, geographical location and a low cost base will enable the
Company to reach monthly profitability by the end of 2003.
Paul Duffen
Chief Executive
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 APRIL 2003
Consolidated Profit and Loss Account
Note Six months ended Six months ended Year ended
30 April 2003 30 April 2002 31 Oct 2002
# # #
Turnover 5 113,505 603,738 954,264
Cost of sales (47,553) (171,723) (526,737)
Gross profit 65,952 432,015 427,527
Operating expenses before exceptional charges (1,520,349) (1,197,055) (2,953,279)
Prepayment write off 6 (682,058) - -
Impairment charges 6 (289,807) - (998,699)
Total Operating expenses (2,492,214) (1,197,055) (3,951,978)
Operating loss (2,426,262) (765,040) (3,524,451)
Interest receivable 1,068 44,736 59,855
Interest payable (1,000) - -
Loss on ordinary activities before taxation (2,426,194) (720,304) (3,464,596)
Taxation - (500) (1,000)
Loss on ordinary activities after taxation and (2,426,194) (720,804) (3,465,596)
retained profit for the period
Loss per ordinary share - basic 3 (3.49p) (1.07p) (5.03p)
All operations derive from continuing activities.
No statement of total recognised gains and losses has been presented as there
are no recognised gains and losses other than the loss for the period.
Consolidated Balance Sheet
Note At At At
30 April 2003 30 April 2002 31 Oct 2002
# # #
Fixed assets:
Intangible assets 7 2,071,624 3,218,746 2,727,455
Tangible assets 183,108 238,267 237,370
2,254,732 3,457,013 2,964,825
Current assets:
Debtors 8 218,066 2,132,230 1,067,839
Cash at bank and in hand 100,252 1,783,885 438,874
Creditors: amounts falling due within one year 9 (560,055) (499,147) (342,349)
Net current (liabilities)/assets (241,737) 3,416,968 1,164,364
Total assets less current liabilities 2,012,995 6,873,981 4,129,189
Creditors: amounts falling due in more than one 9 (160,000) - -
year
Total Net assets 1,852,995 6,873,981 4,129,189
Capital and Reserves
# # #
Called up share capital 10 722,688 692,688 692,688
Share premium account 11,827,380 11,707,380 11,707,380
Merger reserve (509,386) (509,386) (509,386)
Profit and loss account (10,187,687) (5,016,701) (7,761,493)
Shareholders' funds 11 1,852,995 6,873,981 4,129,189
Consolidated Cash Flow Statement
Note Six months ended Six months ended Year ended
30 April 2003 30 April 2002 31 Oct 2002
# # #
Net cash outflow from operating activities 12 (649,690) (795,366) (1,223,993)
Returns on investment and servicing of finance 1,068 45,313 59,855
Taxation paid - - (1,500)
Capital expenditure and financial investment - (822,186) (1,893,015)
Management of liquid resources - - -
Acquisitions and disposals - (476,731) (335,330)
Cash outflow before financing (648,622) (2,048,970) (3,393,983)
Financing:
New unsecured loan 9 160,000 - -
Issue of ordinary share capital 10 150,000 34,634 34,636
Decrease in cash (338,622) (2,014,336) (3,359,347)
Notes
1. Accounting policies and additional information
These interim results for the six month period ended 30 April 2003 do not
constitute statutory accounts and have been neither reviewed nor audited by
our auditors. The financial information for the year ended 31 October 2002
is derived from the statutory accounts for that year which have been
delivered to the Registrar of Companies. The auditors reported on those
accounts; their report was unqualified and did not contain a statement
under s237(2) or (3) Companies Act 1985.
The accounting policies are consistent with those applied in the
preparation of the statutory accounts for the year ended 31 October 2002.
2. Going concern
The Directors have prepared this financial information on a going concern
basis as the forecasts they have prepared indicate that the Group will have
sufficient cash resources to satisfy its liabilities as they fall due for a
period of at least twelve months from the date of this announcement. These
forecasts are subject to a number of uncertainties.
Firstly, the forecast contains a significant increase in revenues that are
dependent upon the completion of a number of deals that are in the final
stages of negotiation. Significant contracts have been signed after the
review period, most notably with NTL, and the Directors are confident that
they will be successful in securing further deals. Furthermore, the Group
has made a claim for more than #150,000, after expenses, in tax credits in
relation to research and development expenditure. At the date of approval
of the accounts, this tax claim had been submitted although the outcome of
the claim is still uncertain.
In addition, the Group is in the process of raising additional funding that
is necessary to fund the operations and expansion of the Group. The
Directors have agreed to defer a proportion of their entitlement to further
salary payments until this fund raising has been completed and have agreed
to accept payment in Newsplayer Group plc shares to conserve further the
cash available to the Group. With commitments already secured for the
minimum amount required, the Directors are confident that this fundraising
will be successful and as a result that the Group will remain a going
concern.
The financial information does not include any adjustments that would
result if the going concern basis of preparation was not appropriate.
3. Loss per share
The calculation of loss per share has been based on the loss after taxation
for the period of #2,426,194 and the weighted average number of ordinary
shares in issue during the period of 71,942,393.
Diluted EPS is not presented in respect of outstanding share options since
none of the options are dilutive.
4. Dividend
The directors do not recommend the payment of a dividend for the period.
5. Turnover
Turnover comprises subscription income for access to the company's web
sites, fees from licensing of media rights and licensing fees for software.
6. Prepayment write off and intangible asset impairment
In June 2003 Management performed an impairment review of the intangible
assets held by group. As a result of that review it was determined that
certain intangible assets should be impaired due to insufficient future
expected earnings relating to those assets. Consequently the intellectual
property rights were impaired by #289,807.
In July 2003 a prepayment with Hollinger became non-recoverable due to
timing restrictions on the use of the prepayment. As a result the total
amount outstanding of #682,058 was written off.
7. Intangible fixed assets
Goodwill Intellectual Property Total
# # #
Cost as at 1 November 2002 and at 30 April 233,687 4,176,741 4,410,428
2003
Amortisation as at 1 November 2002 (19,474) (1,663,499) (1,682,973)
Charge for the year (14,693) (351,331) (366,024)
Impairment - (289,807) (289,807)
Amortisation as at 30 April (34,167) (2,304,637) (2,338,804)
Net book value as at 30 April 2003 199,520 1,872,104 2,071,624
Net book value as at 31 October 2002
214,213 2,513,242 2,727,455
8. Debtors
At At
30th April 2003 31st Oct 2002
# #
Trade debtors 61,491 64,866
Prepayments and accrued income 50,813 750,023
Other debtors 105,762 252,950
Total debtors 218,066 1,067,839
9. Creditors
At At
30th April 2003 31st Oct 2002
# #
Trade creditors 199,284 89,670
Other creditors 33,409 21,491
Accruals and deferred income 327,362 231,188
Creditors falling due within one year 560,055 342,349
Creditors falling due after more than one year (convertible
loan)
160,000 -
Total creditors 720,055 342,349
10. Changes in share capital
There has been a total of 3,000,000 1p ordinary shares issued since 1
November 2002. These shares were issued as a part of the consideration in
respect of an agreement with Hollinger Advertising. #150,000 cash was
received in consideration for these shares.
11. Reconciliation of movement in shareholders' funds
Six months ended Six months ended Year ended
30 April 2003 30 April 2002 31 Oct 2002
# # #
Loss on ordinary activities after taxation (2,426,194) (720,804) (3,465,596)
Issue of ordinary share capital 150,000 1,089,255 1,089,255
Net increase/(reduction) in shareholders' (2,276,194) 368,451 (2,376,341)
funds
Opening shareholders' funds 4,129,189 6,505,530 6,505,530
Closing shareholders' funds 1,852,995 6,873,981 4,129,189
12. Reconciliation of operating loss to operating cashflows
Six months ended Six months ended Year ended
30 April 2003 30 April 2002 31 Oct 2002
# # #
Operating loss (2,426,262) (765,040) (3,524,451)
Exceptional non-cash charges 971,865 - 998,699
Depreciation 54,262 36,171 82,600
Amortisation 366,024 135,756 376,582
Decrease /(increase) in debtors 167,714 (338,830) 805,891
(Increase)/decrease in creditors 216,707 136,577 30,696
Net cash outflow from operating (649,690) (795,366) (1,223,993)
activities
This Interim Report was approved by the Directors on 29 July 2003.
The report will be sent to all registered shareholders and will be
available to members of the public from the Company's registered office at
12 Gough Square, London EC4A 3DW and online from the Company's corporate
website at www.npg-plc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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