TIDMIME
RNS Number : 0823C
Immedia Group PLC
27 September 2018
ISSUED ON BEHALF OF IMMEDIA GROUP PLC
Thursday, 27 September 2018
IMMEDIATE RELEASE
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
IMMEDIA GROUP PLC
("Immedia" or the "Company" or the "Group")
UNAUDITED HALF-YEAR RESULTS
Immedia (AIM: IME), a supplier of multi-media content and
digital audience engagement solutions for leading brands and global
businesses, announces its unaudited half-year results for the six
months ended 30 June 2018.
Commenting on the performance, Immedia's CEO Bruno Brookes
said:
"I am pleased to report that the Group has made good progress
during the first half.
Strengthened relationships with existing clients, new business
coming on stream and the impact of cost control measures
implemented in 2017 have combined to substantially turn around
below par 2017 results.
We expect the positive progress this year to continue in the
second half and are focused on maintaining growth and momentum into
2019 and beyond.
The outlook is positive. We are engaged at a senior level with
companies in all our strategic pillars of retail, sport, education
and workforce. Our innovations are working in alignment with our
strategy to transform our client companies into media owners rather
than media buyers."
HIGHLIGHTS
* 9% increase in revenue to GBP2,016,677 compared to H1
2017
* EBITDA turned positive compared to a loss in H1 2017
* Successful launch of the JD-X app with JD Sports
* The take-up of SUBWAY(R) Radio continues to exceed
Board expectations
* Post the period end:
o Service trial with major UK financial services institution has
been successful and resulted in a contract to provide services
to the entire estate
o Continued expansion of JD-X and other services to JD Sports
KEY FINANCIALS
Unaudited Unaudited Audited
Half year Half year Year to
to to 31 Dec 2017
30 June 30 June
2018 2017
Revenue GBP2,016,677 GBP1,845,278 GBP3,548,689
EBITDA* GBP39,878 GBP(104,382) GBP(512,847)
Results from operating activities GBP(33,871) GBP(188,146) GBP(692,118)
Loss before income tax GBP(35,220) GBP(188,225) GBP(693,268)
Net fair value (loss)/profit GBP(55,800) GBP(34,500) GBP7,800
on financial assets
Total comprehensive loss for GBP(91,020) GBP(222,725) GBP(663,768)
the period
Loss per share - basic (pence) (0.26) (1.37) (4.89)
Loss per share - diluted (pence) (0.26) (1.37) (4.89)
Net Cash and cash equivalents GBP148,825 GBP82,138 GBP53,743
*Profit/(Loss) before interest,
tax, depreciation, amortisation
and impairment charges
FULL STATEMENT ATTACHED
Enquiries:
Immedia Group plc Tel: +44 (0) 1635 556200
Bruno Brookes, CEO
www.immediaplc.com
SPARK Advisory Partners Limited (Nomad)
Mark Brady/Neil Baldwin Tel: +44 (0) 203 368
3550
SI Capital Limited (Stockbroker)
Nick Emerson Tel: +44 (0) 1483 413500
TooleyStreet Communications (IR & Media
Relations)
Fiona Tooley Tel: +44 (0) 7785 703523
About Immedia Group plc
www.immediaplc.com
Immedia Group is a multi-media content and digital solutions provider
to global businesses and organisations investing in internal and/or
brand communications. Our interactive audio channels deliver original
and relevant content, via Immedia's Dreamstream-X platform, to a
client's workforce and/or customer base. Each channel is supported
with powerful data analytics, which monitor audience activity and
provide data to enable Immedia to enhance audience engagement. The
Group also creates original video, 3D animation, app and web content,
as well as supplying and installing audio visual equipment.
Immedia's clients include: BP, FIFA, HSBC, JD Sports Fashion
plc, O2, Shell, Subway Europe, Superdrug and IKEA.
IMMEDIA GROUP PLC
Unaudited Half-Year Results for the six months ended 30 June
2018
INTRODUCTION
I am pleased to report that the Group enjoyed a more successful
half year than in the corresponding period last year.
Both revenue and profitability showed solid improvement over the
corresponding 2017 period and reflect the continuing strengthening
of client relationships, long awaited new business coming on stream
and the full impact of cost control measures initiated across the
business, particularly within our AVC Immedia division.
The strength of the team in all sectors - management, business
development, creative, operations and financial - gives excellent
grounds for confidence in H2 2018 and beyond.
FINANCIAL RESULTS
Revenue in the period being reported increased 9.3% to
GBP2,016,677 (H1 2017: GBP1,845,278).
The Group has continued its strong relationships with clients,
with product and service development from several clients boosting
revenues and exceeding budgeted figures.
An extensive set of measures to manage cost versus investment
within the business was implemented in 2017. We are confident that
the full benefits of these measures will be apparent in the 2018
financial year.
As we announced in April, Immedia also benefited from a one-off
installation and equipment supply contract following a successful
service implementation with a major UK financial services
institution. This association, which had been operating on an
extended trial basis, was contracted post period end and further
detail can be found below.
EBITDA
In light of the developments above EBITDA for the period was
GBP39,878 (H1 2017: loss (GBP104,382) ; a significant improvement.
Cash balances increased accordingly to GBP148,825 (H1 2017:
GBP82,138), with the Group remaining virtually debt free.
As in previous years, Immedia's investment in AudioBoom Group
plc, the leading spoken--word audio platform (AIM: BOOM), showed
significant fluctuations in value during the period. In accordance
with our IFRS accounting regime, a loss on revaluation of
investments of GBP55,800 has been reported in the first half (H1
2017: loss of GBP34,500). Cumulatively, the Group remains in profit
on its investment.
OPERATIONS
The Directors are encouraged by the performance of the business
in the period and the opportunities that lie ahead.
It is also pleasing to report that recent major contracts with
both JD Sports and SUBWAY(R) are exceeding Board expectations. In
addition, our multi-channel network propositions and brand content
delivery continue to attract substantial levels of interest and
successful conversion rates.
Overall, the new business pipeline is positive and activity is
growing across the business network. This gives the Board
confidence in its strategy and the future.
AVC IMMEDIA
2018 is a year of dynamic activity for AVC Immedia. This
division continues to work with a wide range of high-profile
customers in the energy, sport, transport, tourism and leisure
sectors. Examples of projects include:
-- FIFA - a team was sent to Russia to film Fan Fest Entertainment in World Cup stadia
-- Weir Oil and Gas - OTC 2018 production, Augmented Reality,
interactive and 3D animation content
-- Maersk - 360deg, drone and promotional project film
-- Petrofac - construction animation for building work in the Falkland Islands
-- Visit Aberdeenshire - series of promotional tourism films
PEOPLE
To support the opportunities and confirmed forward business, we
have taken the opportunity to recruit and strengthen our teams to
ensure that we have the talent and resource skills set to service
new and existing client projects. This has included adding a Client
Services Manager in Newbury and a new dedicated animation team in
Aberdeen.
The business now employs 31 people and, on behalf of all
stakeholders, I would like to thank each one of them for their hard
work and dedication.
POST PERIOD
Since the end of the period we are pleased to report that we
have provided JD Sports with updated mobile application modules for
the IOS and Android platforms. The Group has also completed the
roll-out of JD-X to over 370 of JD Sports UK stores, with a
roll-out to European stores anticipated to begin in Q4 2018.
Immedia also recently announced a contract with a major UK
financial services institution to deliver a mixture of services
including live presenter led radio in high street locations
together with equipment supply and installation, part of which had
been started in the first half of the year.
OUTLOOK
The one-off programme of installations with the major UK high
street financial services institution will contribute significantly
to profitability in 2018.
Our motivation is on maintaining momentum in recurring revenue
in 2019 and beyond. Whilst AVC Immedia is seeing improved market
conditions in the Aberdeen area as the oil price is on a rising
trend, our focus is to continue to expand the geographical reach of
AVC's state of the art film, production and 3D design services.
We continue to work in the forefront of mobile technology and in
App entertainment services to take the 'in store' experience 'out
of store'. This is the future, and I am pleased to state that
Immedia remains a leader in these new technologies and retail
experiences. We expect this trend to continue and intensify in the
coming years and the business is well placed to lead this
initiative in our key market segments.
After a positive start to the year the Directors expect this
momentum to continue over the second half of the financial year,
and are comfortable in meeting the market's expectation for the
full year.
Our aspiration driven strategy is to turn our clients into media
owners; we expect to announce further initiatives in this regard
and we look forward to keeping our stakeholders updated over the
coming months.
Bruno Brookes, CEO
On behalf of Immedia Group plc
27 September 2018
IMMEDIA GROUP PLC
(Immedia or the Company or the Group)
Unaudited Half-Year results for the six months ended 30 June
2018
Consolidated statement of profit or loss
Unaudited Unaudited Audited
Half-year Half-year Year ended
ended 30 ended 30 31 December
notes June June 2017
2018 2017
GBP GBP GBP
------------------------------ -------- ------------ ------------ -------------
Revenue 2,016,677 1,845,278 3,548,689
Cost of sales (957,450) (851,256) (1,759,046)
Gross profit 1,059,227 994,022 1,789,643
Administrative expenses (1,093,098) (1,182,168) (2,481,761)
Loss from operations (33,871) (188,146) (692,118)
------------ ------------ -------------
Finance income 71 109 202
Finance cost (1,420) (188) (1,352)
------------ ------------ -------------
Loss before tax (35,220) (188,225) (693,268)
Tax credit - - 21,700
Loss for the period (35,220) (188,225) (671,568)
------------ ------------ -------------
Earnings per share (pence)
Basic and Diluted 5 (0.26) (1.37) (4.89)
Consolidated statement of profit or loss and other comprehensive
income
Unaudited Unaudited Audited
Half-year Half-year Year ended
ended 30 ended 30 31 December
notes June June 2017
2018 2017
GBP GBP GBP
------------------------------------- --------- ----------- ----------- -------------
Loss for the period (35,220) (188,225) (671,568)
Items that will not be reclassified
subsequently to profit or loss:
Fair value (loss)/gain on equity
investments not held for trading
designated as FVTOCI (55,800) (34,500) 7,800
Total comprehensive loss for
the period (91,020) (222,725) (663,768)
----------- ----------- -------------
IMMEDIA GROUP PLC
(Immedia or the Company or the Group)
Unaudited Half-Year results for the six months ended 30 June
2018
Consolidated balance sheet
Unaudited Unaudited Audited
Half-year Half-year At
At 30 June At 30 June 31 December
notes 2018 2017 2017
GBP GBP GBP
------------------------------- -------- ------------ ------------ -------------
Assets
Non-current assets
Property, plant and equipment 176,455 260,960 200,838
Intangible assets 336,602 395,541 366,099
Deferred tax assets 34,850 13,150 34,850
Financial assets 4 117,000 130,500 172,800
------------ ------------ -------------
Total non-current assets 664,907 800,151 774,587
------------ ------------ -------------
Current assets
Inventories 162,976 147,582 69,803
Trade and other receivables 652,096 639,363 519,129
Prepayments 155,654 175,136 107,915
Cash and cash equivalents 148,825 82,138 53,743
------------ ------------ -------------
Total current assets 1,119,551 1,044,219 750,590
------------ ------------ -------------
TOTAL ASSETS 1,784,458 1,844,370 1,525,177
------------ ------------ -------------
Equity
Share capital 1,455,684 1,455,684 1,455,684
Share premium 3,586,541 3,586,541 3,586,541
Merger reserve 2,245,333 2,245,333 2,245,333
Share-based payment reserve 4,578 4,578 4,578
Investment valuation reserve 27,000 40,500 82,800
Retained losses (7,234,714) (6,716,151) (7,199,494)
------------ ------------ -------------
Total equity 84,422 616,485 175,442
------------ ------------ -------------
Liabilities
Non-current liabilities
Finance leases 2,871 5,063 1,542
Provisions 42,500 42,500 42,500
------------ ------------ -------------
Total non-current liabilities 45,371 47,563 44,042
------------ ------------ -------------
Current liabilities
Finance leases 8,612 2,495 5,514
Trade and other payables 1,461,813 1,083,275 1,233,522
Contract liabilities 184,240 94,552 66,657
------------ ------------ -------------
Total current liabilities 1,654,665 1,180,322 1,305,693
------------ ------------ -------------
Total liabilities 1,700,036 1,227,885 1,349,735
------------ ------------ -------------
Total equity and liabilities 1,784,458 1,844,370 1,525,177
------------------------------- -------- ------------ ------------ -------------
IMMEDIA GROUP PLC
(Immedia or the Company or the Group)
Unaudited Half-Year results for the six months ended 30 June
2018
Consolidated statement of changes in equity
Attributable to equity shareholders in the Company
Total equity at 30 Share Share Merger Share-based Investment Retained Total
June 2018 premium payment revaluation
account reserve
(unaudited) capital GBP Reserve reserve GBP losses Equity
GBP
GBP GBP GBP GBP
------------------------- ---------- ---------- ---------- ------------ ------------- ------------ ---------
Balance as at 1 January
2018 1,455,684 3,586,541 2,245,333 4,578 82,800 (7,199,494) 175,442
Loss for the year - - - - - (35,220) (35,220)
Other Comprehensive
Income for the period:
Fair value loss on
equity investments
not held for trading
designated as FVTOCI - - - - (55,800) - (55,800)
---------- ---------- ---------- ------------ ------------- ------------ ---------
Total comprehensive
loss for the year - - - - (55,800) (35,220) (91,020)
---------- ---------- ---------- ------------ ------------- ------------ ---------
Balance at 30 June
2018 1,455,684 3,586,541 2,245,333 4,578 27,000 (7,234,714) 84,422
---------- ---------- ---------- ------------ ------------- ------------ ---------
Total equity at 30 Share Share Merger Share-based Investment Retained Total
June 2017 premium payment revaluation
account reserve reserve
(unaudited) capital GBP Reserve GBP GBP losses Equity
GBP GBP GBP GBP
------------------------- ---------- ---------- ---------- ------------ ------------- ------------ ------------
Balance at 1 January
2017 1,455,684 3,586,541 2,245,333 4,578 75,000 (6,527,926) 839,210
Loss for the period - - - - - (188,225) (188,225)
Other comprehensive
income for the period:
Fair value loss on
equity investments
not held for trading
designated as FVTOCI - - - - (34,500) - (34,500)
---------- ---------- ---------- ------------ ------------- ------------ ------------
Total comprehensive
loss for the period - - - - (34,500) (188,225) (222,725)
---------- ---------- ---------- ------------ ------------- ------------ ------------
Balance at 30 June
2017 1,455,684 3,586,541 2,245,333 4,578 40,500 (6,716,151) 616,485
---------- ---------- ---------- ------------ ------------- ------------ ------------
Total equity at 31 Share Share Merger Share-based Investment Retained Total
December 2017 premium payment revaluation
account reserve reserve
(audited) capital GBP Reserve GBP GBP losses Equity
GBP GBP GBP GBP
------------------------- ---------- ---------- ---------- ------------ ------------- ------------- ----------
Balance as at 1 January
2017 1,455,684 3,586,541 2,245,333 4,578 75,000 (6,527,926) 839,210
Loss for the year - - - - - (671,568) (671,568)
Other comprehensive
income for the period:
Fair value gain on
equity investments
not held for trading
designated as FVTOCI - - - - 7,800 - 7,800
---------- ---------- ---------- ------------ ------------- ------------- ----------
Total comprehensive
gain/(loss) for the
year - - - - 7,800 (671,568) (663,768)
---------- ---------- ---------- ------------ ------------- ------------- ----------
Balance at 31 December
2017 1,455,684 3,586,541 2,245,333 4,578 82,800 (7,199,494) 175,442
---------- ---------- ---------- ------------ ------------- ------------- ----------
IMMEDIA GROUP PLC
(Immedia or the Company or the Group)
Unaudited Half-Year results for the six months ended 30 June
2018
Consolidated statement of cash flows
Unaudited Unaudited Audited
Half-year Half-year At
At 30 June At 30 June 31 December
notes 2018 2017 2017
GBP GBP GBP
-------------------------------------- --------- ------------ ------------ -------------
Cash flows from operating activities
Loss for the period before income
tax (35,220) (188,225) (693,268)
Adjustments for:
Depreciation, amortisation and
impairment charges 73,749 83,764 179,271
Loss on sales of assets - - 1,396
Finance income (71) (109) (202)
Finance cost 1,421 188 1,352
(Increase)/decrease in trade and
other receivables and prepayments (180,705) 80,020 267,476
(Increase)/decrease in inventories (93,173) (49,229) 28,550
Increase in trade and other payables
and contract liabilities 345,875 44,441 166,790
Net cash from operating activities 111,876 (29,150) (48,635)
------------ ------------ -------------
Taxation - - -
Cash flows from investing activities
Proceeds from sale of property, 3,160 - -
plant and equipment
Interest received 71 109 202
Acquisition of property, plant
and equipment (14,178) (11,293) (18,631)
Net cash from investing activities (10,947) (11,184) (18,429)
------------ ------------ -------------
Cash flows from financing activities
Repayment of finance leases (4,426) (3,226) (3,727)
Interest paid (1,421) (188) (1,352)
Net cash from financing activities (5,847) (3,414) (5,079)
------------ ------------ -------------
Net increase/(decrease) in cash
and cash equivalents 95,082 (43,748) (72,143)
Cash and cash equivalents at the
beginning of the period 53,743 125,886 125,886
Cash and cash equivalents at the
end of the period 148,825 82,138 53,743
------------ ------------ -------------
IMMEDIA GROUP PLC
(Immedia or the Company or the Group)
Unaudited Half-Year results for the six months ended 30 June
2018
NOTES TO THE FINANCIAL STATEMENTS
Financial information contained in this document does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006 ("the Act"). The statutory accounts for the
year ended 31 December 2017 have been filed with the Registrar of
Companies. The report of the auditors on these statutory accounts
was unqualified, did not draw to any matters by way of emphasis and
did not contain a statement under section 498(2) or (3) of the Act.
The financial information for the six months ended 30 June 2018 and
30 June 2017 is unaudited.
This announcement was approved by the Board on 26 September
2018.
1. Reporting entity
Immedia Group Plc (the "Company") is a public limited company
incorporated and domiciled in England and Wales. The address of the
Company's registered office, and its principal place of business,
is 7-9 The Broadway, Newbury, Berkshire RG14 1AS. The consolidated
financial statements of the Company as at and for the year ended 31
December 2017 comprise the Company and its subsidiaries (together
referred to as the "Group").
The Group is involved in marketing and communication services
through the provision of interactive digital channels products and
services using music, radio and screen-based media to provide brand
conversation, engaging entertainment and innovative technical
solutions. It also supplies, installs and maintains the equipment
used to deliver these services.
2. Basis of preparation
The interim financial information in this report has been
prepared using accounting policies consistent with IFRS as adopted
by the European Union. IFRS is subject to amendment and
interpretation by the International Accounting Standards Board
(IASB) and the IFRS Interpretations Committee and there is an
ongoing process of review and endorsement by the European
Commission. The financial information has been prepared on the
basis of IFRS that the Directors expect to be adopted by the
European Union and applicable as at 31 December 2017 and 31
December 2018. The Group has chosen not to adopt IAS 34 "Interim
Financial Statements" in preparing the interim financial
information.
3. Significant accounting policies
The accounting policies set out in detail in note 3 of the
Group's consolidated financial statements to 31 December 2017 have
been applied consistently to these unaudited financial statements
to 30 June 2018, with the exception of the adoption of new or
amended standards as set out below:
The following standards have become applicable for accounting
periods commencing on or after 01 January 2018 and the appropriate
adjustments have been considered:
-- IFRS 9 - Financial Instruments
-- IFRS 15 - Revenue from Contracts with Customers
The impact of the adoption of these standards and the new
accounting policies are disclosed in note 6 of these financial
statements.
4. Financial assets
In March 2014 the Group invested GBP90,000 in the purchase of
6,000,000 shares in AudioBoom Group plc, an AIM-quoted audio social
media platform, as part of the Group's strategy to broaden its
digital marketing and communications services.
As described in note 6, the Company has taken the irrevocable
election to classify this investment as FVTOCI. At 30 June 2018 the
fair value of the investment was GBP117,000 with a current period
fair value loss of GBP55,800 recognised in other comprehensive
income (30 June 2017 fair value GBP130,500 with fair value loss of
GBP34,500 recognised in other comprehensive income; 31 December
2017 fair value GBP172,800 with fair value gain of GBP7,800
recognised in other comprehensive income).
As at the date of approval of this report, the investment
represents c.0.5% of AudioBoom Group plc's shares in issue and has
a fair value of GBP126,000.
5. Earnings per share
Unaudited Unaudited Audited
as at as at as at
30 June 18 30 June 17 31 Dec 17
Number Number Number
Weighted average number of shares in issue 14,556,844 14,556,844 14,556,844
Less weighted average number of own shares (832,374) (832,374) (832,374)
Weighted average number of shares in issue for basic earnings per share 13,724,470 13,724,470 13,724,470
============ ============ ===========
The basic and diluted earnings per share are calculated using
the after tax loss attributable to equity shareholders for the
financial period of GBP35,220 (30 June 2017: loss GBP188,225; 31
December 2017: loss GBP671,568) divided by the weighted average
number of Ordinary shares in issue in each of the relevant periods:
30 June 2018: 13,724,470 shares (30 June and 31 December 2017:
13,724,470 shares). For the period to 30 June 2018 and the year to
31 December 2017 and period to 30 June 2017 and in accordance with
IAS 33, the diluted loss per share is stated as the same amount as
basic as there is no dilutive effect.
6 Adoption of new accounting standards
(i) IFRS 9 - Financial instruments
Equity investments reclassified from Available-for-Sale to
FVTOCI
As disclosed in note 4, the Group holds an investment in
Audioboom Plc. The Group does not consider this is held for
trading. As permitted by IFRS 9, the Group has designated this
investment, by way of an irrevocable election, at the date of
initial application as measured at FVTOCI. Unlike IAS 39, the
accumulated fair value reserve related to these investments will
never be reclassified to profit or loss.
Impairment of Financial Assets
IFRS 9 requires the use of an expected credit loss model to
calculate impairment losses rather than an incurred loss model.
Therefore, it is not necessary for a credit event to have occurred
before credit losses are recognised. The new impairment model
applies to the all the Group's financial assets.
No changes to the impairment provisions were made on transition
to IFRS 9 as the effects were felt to be immaterial. In assessing
impairment requirements on financial assets, the Group now
considers the historic loss rates, which have been minimal, in
conjunction with expected future losses and credit losses as a
result of potential defaults. This will, as mandated by IFRS 9,
continue to be reassessed as and when further information becomes
available or when conditions change.
(ii) IFRS 15 Revenue from Contracts with Customers
The Group has adopted IFRS 15 Revenue from Contracts with
Customers from 1(st) January 2018 and, following a review of the
contracts held by the Group, this has not resulted in any changes
to existing revenue recognition policies and no adjustments have
been made to the amounts recognised in the financial
statements.
By order of the Board
27 September 2018
FORWARD LOOKING STATEMENTS
This document contains certain forward-looking statements which
reflect the knowledge and information available to the Company
during the preparation and up to the publication of this document.
By their very nature, these statements depend upon circumstances
and relate to events that may occur in the future thereby involving
a degree of uncertainty. Although the Group believes that the
expectations reflected in these statements are reasonable, it can
give no assurance that these expectations will prove to have been
correct. Given that these statements involve risks and
uncertainties, actual results may differ materially from those
expressed or implied by these forward-looking statements.
The Group undertakes no obligation to update any forward-looking
statements whether because of new information, future events or
otherwise.
The Half-Year Report will be available to view and download from
the Group's website at www.immediaplc.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR KQLFLVKFXBBB
(END) Dow Jones Newswires
September 27, 2018 02:01 ET (06:01 GMT)
Fiinu (LSE:BANK)
Historical Stock Chart
From Apr 2024 to May 2024
Fiinu (LSE:BANK)
Historical Stock Chart
From May 2023 to May 2024