TIDMPAA
RNS Number : 2760S
Parallel Media Group PLC
29 September 2017
29 September 2017
PARALLEL MEDIA GROUP plc
("PMG", THE "COMPANY" OR THE "GROUP")
HALF-YEARLY RESULTS FOR THE SIX MONTHSED 30 JUNE 2017
Parallel Media Group plc (AIM: PAA), a leading live event and
entertainment agency, announces its half-yearly results for the
period ended 30 June 2017.
Highlights
o The Group has continued, with the help of its Chairman, to
consolidate its debt profile, including the payment by the Chairman
of the outstanding Lloyds Bank loan.
o Has made progress in the Group's long-term ambition of
securing a media-related acquisition in the live event and
entertainment sector.
o The Company's shares were suspended on 9(th) August 2017
pending, the outcome of ongoing discussions in relation to a
potential transaction.
Chairman of PMG, David Ciclitira, commented:
"We are making significant headway with the negotiation on the
acquisition of an exciting and compatible media business in the
live event and entertainment sector'
I would like to make a special mention of the Group's Board and
Staff worldwide for their considerable efforts and I would, at the
same time, like to thank all our stakeholders for their
support."
Contact Details
For more information please contact:
Parallel Media Group Plc
David Ciclitira
www.parallelmediagroup.com +44 (0) 20 7225 2000
Stockdale Securities
Robert Finlay / Richard Johnson/
Ed Thomas
www.stockdalesecurities.com +44 (0) 20 7601 6100
CHAIRMAN'S STATEMENT
Financial Review
This has been a limited period of activity for the Group and the
operating loss amounted to GBP0.322m (H1 2016: loss GBP0.110m). The
loss before tax for the period was GBP0.364m (H1 2016: profit of
GBP0.057m).
As in previous years, I have supported the working capital
requirements of the Group. The Company announced on 30 June 2017
that these loans have now been formalised with interest payable at
5 per cent per annum. The loans are repayable on 29 September, 2018
or at an earlier date at the discretion of the independent
directors of the Board.
I have agreed to forego half of my remuneration for the first
half of this financial year. The balance of the monies due to me
and entities owned and controlled by me at 30(th) September 2017
will be GBP1.964m.
Post Balance Sheet Events
On 9 August 2017, it was announced that PMG was in advanced
discussions with another party about a possible transaction which
would under the AIM rules constitute a reverse takeover of the
Company. As a result the Group's share price was suspended until
the publication of a readmission document or until discussions are
terminated. As stated above, the Group is negotiating an
acquisition in the live event and entertainment sector, but as
previously advised, there can be no certainty that the discussions
between the parties will lead to any agreement concerning the
possible transaction or as to the timing or terms of any such
transaction and there can be no assurance that, even if agreement
is reached, any such transaction would be completed. Further
updates will be provided to shareholders as appropriate in due
course.
Aside from the foregoing, there has not been any matter or
circumstance occurring subsequent to the end of the financial
period that has significantly affected, or may significantly
affect, the operations of the Group, the results of those
operations, or the state of affairs of the Group in future
financial years.
Going forward
I remain positive and would like to use this opportunity to
thank our board and hardworking staff, for their hard work and
support.
David Ciclitira
Chairman
Date: 29 September 2017
Consolidated income statement for half year to 30 June 2017
30 June 30 June 31 December
2017 unaudited 2016 unaudited 2016
(Restated) audited
Note GBP'000 GBP'000 GBP'000
Continuing operations
Revenue - 200 221
Cost of sales - (78) (78)
---------------- ---------------- ------------
Gross profit - 122 143
Other administrative expenses (347) (141) (495)
Foreign exchange 25 (23) (31)
Depreciation and amortisation
of non financial assets - (68) (139)
---------------- ---------------- ------------
Total admin expenses (322) (232) (665)
Operating (loss) before exceptional
items (322) (110) (522)
Exceptional items - 183 (1,182)
---------------- ---------------- ------------
Operating (loss)/profit after
exceptional items (322) 73 (1,704)
Finance costs (48) (16) (30)
(Loss)/profit before tax for
the financial period (370) 57 (1,734)
Taxation 6 - -
---------------- ---------------- ------------
(Loss)/profit for the financial
period after taxation (364) 57 (1,734)
---------------- ---------------- ------------
Attributable to:
Non-controlling interests - - -
Equity holders of the parent (364) 57 (1,734)
---------------- ---------------- ------------
(Loss)/profit for the financial
period (364) 57 (1,734)
---------------- ---------------- ------------
Earnings (Loss)/profit per share
-basic 4 (12.1)p 1.9p (57.6)p
-diluted 4 (12.1)p 1.9p (57.6)p
The accompanying accounting policies and notes form an integral
part of the financial statements. The results for the half year to
30 June, 2016 have been restated and further information is set out
in Note 11 of these financial statements.
Statement of comprehensive income for half year to 30 June
2017
Group
30 June 2017 30 June 31 December
unaudited 2016 unaudited 2016
audited
GBP'000 GBP'000 GBP'000
(Loss)/profit for the financial
period (364) 57 (1,734)
Exchange difference on translation
of foreign operations (5) (50) (60)
-------------- ---------------- ------------
Total comprehensive income/(expense)
for the period (369) 7 (1,794)
-------------- ---------------- ------------
Total comprehensive (expense)/income
attributable to:
Equity holders of the parent (369) 7 (1,794)
Non - controlling interest - - -
-------------- ---------------- ------------
(369) 7 (1,794)
-------------- ---------------- ------------
Statement of financial position for the half year to 30 June
2017
30 June 30 June 31 December
2016
2017 (unaudited) 2016 (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Non current assets
Intangible assets - Tournament rights 1 1,390 1
Total non current assets 1 1,390 1
------------------- ------------------- ------------
Current assets
Trade and other receivables 5 90 23
Cash and cash equivalents 11 (3) 25
Total current assets 16 87 48
------------------- ------------------- ------------
Current liabilities
Financial liabilities - Borrowings - 85 85
Trade and other payables 3,135 2,198 2,547
Total current liabilities 3,135 2,283 2,632
------------------- ------------------- ------------
Net current liabilities (3,119) (2,196) (2,584)
Non current liabilities
Financial liabilities - Borrowings 0 196 166
------------------- ------------------- ------------
0 196 166
Net (liabilities)/assets (3,118) (1,002) (2,749)
------------------- ------------------- ------------
Equity
Share capital 4,612 4,612 4,612
Share premium 8,741 8,741 8,741
Other reserves 557 503 557
Capital redemption reserve 5,034 5,034 5,034
Foreign exchange reserve (147) (132) (142)
Retained earnings (22,068) (19,913) (21,704)
Equity attributable to equity holders
of the parent (3,271) (1,155) (2,902)
Non-controlling interests 153 153 153
--------- --------- ---------
(3,118) (1,002) (2,749)
--------- --------- ---------
Statement of cashflows for the half year to 30 June 2017
30 June 30 June 31 December
2017 2016 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash flows from operating activity
Operating loss (322) (110) (522)
Increase in translation reserve (5) (50) (60)
Depreciation - 3 3
Amortisation of intangibles - Tournament
rights - 68 136
Impairment provision - Tournament
Rights - - 1,321
Impairment provision - Investment
in subsidiary - - 54
Gain on exceptional item - 183 -
Decrease/(increase) in receivables 18 (29) 38
Increase/(decrease) in payables 588 (31) 318
Exceptional item - - (1,182)
Cash generated from/(used in) operations 279 34 106
------------- ------------- ------------
Cash flow from investing activities
Taxation repaid 6 - -
------------- ------------- ------------
Net cash generated from investing
activities 6 - -
------------- ------------- ------------
Cash flow from financing activities
Loans repaid (251) (35) (65)
Interest paid (48) (16) (30)
Net cash used in financing activities (299) (51) (95)
------------- ------------- ------------
Cash and cash equivalents at beginning
of the period 25 14 14
Net (decrease)/increase in cash and
cash equivalents (14) (17) 11
------------- ------------- ------------
Cash and cash equivalents at end
of the period 11 (3) 25
------------- ------------- ------------
Consolidated statement of changes in equity for half year to 30
June 2017
Ordinary Share Other Capital Foreign Retained Subtotal Non Total
Share Premium Reserves Redemption Exchange Earnings controlling
Capital Reserve Interests
At 31 December
2016 4,612 8,741 557 5,034 (142) (21,704) (2,902) 153 (2,749)
Loss for the
half year - - - - - (364) (364) - (364)
Foreign
Exchange - - - - (5) - (5) - (5)
--------------- --------- --------- --------- ----------- --------- --------- --------- ------------ --------
Total
comprehensive
income - - - - -
At 30 June
2017 4,612 8,741 557 5,034 (147) (22,068) (3,271) 153 (3,118)
--------------- --------- --------- --------- ----------- --------- --------- --------- ------------ --------
Consolidated statement of changes in equity for the year ended
31 December 2016
Ordinary Share Other Capital Foreign Retained Subtotal Non Total
Share Premium Reserves Redemption Exchange Earnings controlling
Capital Reserve Interests
At 31 December
2015 4,612 8,741 503 5,034 (82) (19,970) (1,162) 153 (1,009)
Loss for the
year - - - - - (1,734) (1,734) - (1,734)
Impairment
provision - - 54 - - - 54 - 54
Foreign exchange - - - - (60) - (60) - (60)
------------------ --------- -------- --------- ----------- --------- --------- --------- ------------ --------
Total
comprehensive
income/(expense)
for the year - - 54 - (60) (1,734) (1,740) - (1,740)
At 31 December
2016 4,612 8,741 557 5,034 (142) (21,704) (2,902) 153 (2,749)
------------------ --------- -------- --------- ----------- --------- --------- --------- ------------ --------
NOTES TO THE FINANCIAL INFORMATION
1. Basis of Preparation
The condensed financial statements have been prepared using
accounting policies consistent with International Financial
Reporting Standards. The condensed consolidated half-yearly
financial statements should be read in conjunction with the annual
financial statements for the year ended 31 December 2016, which
have been prepared in accordance with International Financial
Reporting Standards. These half-yearly results are unaudited and do
not constitute statutory accounts.
2. Significant Accounting Policies
The condensed financial statements have been prepared under the
historical cost convention. The same accounting policies,
presentation and method of computation are followed in these
condensed financial statements as were applied in the preparation
of the Group's financial statements for the year ended 31 December
2016.
3. Going concern
The Directors have prepared trading and cash flow forecasts for
the Group for the year ended 31 December 2018. The forecasts
incorporate trading assumptions, including sponsorship revenues and
revenues from new events. The forecasts show that the Group has
sufficient cash to meet liabilities as they fall due for a period
of 12 months from the date of signature of the financial
statements.
In addition, the Directors have received confirmation that
financial support will be provided to the PMG Group of companies
sufficient to enable the Group to continue to trade and meet its
financial obligations as they fall due for the foreseeable future
being at least 12 months from the date that the Parallel Media
Group plc financial statements for the half year ended 30 June 2017
are approved and signed.
The Directors believe these forecasts to be realistic and
consequently have prepared the financial statements on the going
concern basis, which assumes that the Group will continue in
operational existence for the foreseeable future.
4. Segment Information - Changes in Operating Segments
The group operates under three segments, Sports, Entertainment
and Media.
Operating Segments Sports Entertainment Media Consolidated
----------------------- --------------- ---------------- -------------- ----------------
GBP'000 GBP'000 GBP'000 GBP'000
----------------------- --------------- ---------------- -------------- ----------------
June June June June June June June June
2017 2016 2017 2016 2017 2016 2017 2016
----------------------- ------- ------ ------- ------- ------ ------ -------- ------
Revenue - 200 - - - - - 200
----------------------- ------- ------ ------- ------- ------ ------ -------- ------
Joint ventures - - - - - - - -
----------------------- ------- ------ ------- ------- ------ ------ -------- ------
Segment result - 122 - - - - - 122
----------------------- ------- ------ ------- ------- ------ ------ -------- ------
Unallocated corporate
expenses (322) (232)
-------------------------------- ------ ------- ------- ------ ------ -------- ------
Exceptional items - 183
-------------------------------- ------ ------- ------- ------ ------ -------- ------
Operating profit
after exceptional
items (322) 73
-------------------------------- ------ ------- ------- ------ ------ -------- ------
Finance costs (48) (16)
-------------------------------- ------ ------- ------- ------ ------ -------- ------
(Loss)/profit
for the year
before taxation (370) 57
-------------------------------- ------ ------- ------- ------ ------ -------- ------
5. Earnings per Share
The basic earnings per share are calculated by dividing the
profit attributable to equity shareholders by the weighted average
number of shares in issue during the year. In calculating the
diluted earnings per share, any outstanding share options, warrants
and convertible loans are taken into account where the impact of
these is dilutive.
Six months Six months
to to Year ended
30 June 30 June 31 December
2017 2016 2016
(i) Basic
(Loss)/gain for the period (GBP'000) (307) 57 (1,734)
Weighted average number of shares
in issue (No.) 3,009,223 3,009,223 3,009,223
----------- ----------- -------------
(Loss)/earnings per share (p) (10.2)p 1.9p (57.6p)
(ii) Fully diluted
(Loss)/gain for the period (GBP'000) (307) 57 (1,734)
(Loss)/earnings for the period
(GBP'000) (307) 57 (1,734)
----------- ----------- -------------
Weighted average number of shares
in issue (No.) 3,009,223 3,009,223 3,009,223
3,009,223 3,009,223 3.009,223
Diluted Earnings per share (p)* (10.2)p 1.9p (57.6p)
* Diluted earnings per share in both 2017 and 2016 are the same
as basic earnings per share, as the options in issue during these
years have had no dilutive effect on continuing operations.
6. Dividends - No dividend was recommended or paid for the period under review
7. Financial Liabilities - Borrowings
30 June 30 June
2017 2016
GBP'000 GBP'000
Bank facility - 85
- 85
The bank facility represents amounts due to Lloyds Bank Plc in
less than one year. The outstanding loan was repaid by David
Ciclitira in June 2017, which was formally secured by his personal
guarantee, in the sum of GBP213,064 together with the associated
legal costs of GBP17,453.
8. Non-Current Liabilities - Borrowings
30 June 30 June
2017 2016
GBP'000 GBP'000
Bank facility > 1 year - 196
- 196
9. Issued Share Capital
Issued share capital as at 30 June 2017 is comprised as
follows:
-- 3,009,223 ordinary shares of GBP0.01p being GBP0.03 million
-- 3,009,223 new deferred shares of GBP0.518p being GBP1.559 million*
-- 199,831,545 deferred ordinary shares of 0.5p each being GBP0.999 million*
-- 103,260 deferred B shares of GBP19.60 being GBP2.024 million*
* The deferred ordinary shares and new deferred shares do not
entitle their holders to receive dividend or other distribution nor
do they entitle their holders to receive notice, attend speak or
vote at any General Meeting of the Group. The rights of deferred
shareholders are set out in full in the financial statements for
the year ended 31 December 2016.
10. Related Parties
At 30 June, 2017 the following were owed to directors of the
Company, namely, Maria Serena Ciclitira - GBP46,173 (31 December
2016: GBP38,673), and Ranjit Murugason - GBP145,200 (31 December
2016: GBP65,000) of which GBP135,700 relates to prior financial
periods and had not been fully recognised at the previous year
end.
Luna Trading Limited is a company through which Parallel Media
Group Plc ("PMG") contracts with David Ciclitira for consulting and
business services. During the period ended 30 June 2017 Luna
Trading Limited charged PMG for remote office and healthcare and
healthcare costs of GBP25,500 (H1 2016: GBP24,625).
The total amounts owed to David Ciclitira and entities under his
control at 30 June 2017 were GBP1,927k (Parallel Contemporary Arts
Ltd GBP1,141k, David Ciclitira GBP505k and Luna Trading GBP240k and
GBP41k of rolled up interest), of which GBP1,870k relates to
formalised loans and the balance in respect of accrued but unpaid
remuneration.
11. Restatement of the half year results to 30 June 2016
Management have identified that due to an accounting error, both
turnover and administration overheads were overstated in the half
year results to 30 June 2016. The restated numbers show turnover of
GBP0.200m (previously reported as GBP0.267m) and other
administration expenses of GBP0.141m (previously reported as
GBP0.208m). These adjustments produce no change to the stated
operating loss, before exceptional items, of GBP0.110m.
12. Other
Copies of the unaudited half-yearly results have not been sent
to shareholders, however copies are available at
www.parallelmediagroup.com or on request from the Group's
Registered Office.
13. Approval of Half-Yearly Financial Statements
The half-yearly financial statements were approved by the board
of directors on 29 September 2017.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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