RNS Number : 6262E
Vision Media Group (Intl) PLC
30 September 2008
Press Release 30 September 2008
Vision Media Group (International) plc
("VMG", "the Group" or "the Company")
Interim Results
Vision Media Group (International) plc (AIM:VMG), the digital outdoor media contractor, today announces its Interim Results for the six
months ended 30 June 2008.
Highlights
* Ten year partnership contract with Clear Channel Outdoor (UK) Limited
signed to produce network advertising revenues in the second half of 2008
* Acquisition of Screen Media Networks Limited and appointment of new
executive team
* Reduction of the Group's commitments to annual minimum rental guarantees
from �1.5 million to �0.2 million
* Digital network advertising revenue decreased by 13% to �656,000 (2007:
�754,000)
* Total revenue from continuing activities decreased by 32% to �710,000
(2007: �1,038,000)
* Operating losses before reorganisation costs reduced 2% to �2,210,000
(2007: loss of �2,258,000)
* Net cash used in continuing operations of �1,504,000 (2007: �3,339,000)
* Basic and fully diluted loss per share improved to 5.76 pence (2007: loss
of 12.66 pence)
Post Period Highlights
* Launch of proprietary double-sided touch-screen Iconic Pods
* Initial order placed for 100 Iconic Pods to be installed in autumn 2008
* Post installation VMG will have 200 new portrait panels and 350 existing
screens across 35 shopping malls, a 59% increase in the Group's mall
portfolio since December 2007
* Heads of agreement or contracts signed with a further 22 malls to come on
stream in 2009, making 57 shopping malls in total across the UK
* Signed agreement to outsource all local media sales to WRT Group plc, the
UK's leading local sales specialist
Mike Cottman, Executive Chairman of VMG commented: "This set of financial results does not reflect our underlying progress towards
making the Group profitable by adopting a formal strategy of outsourcing where possible whilst simultaneously partnering with market sector
leaders. Whilst advertising markets are generally difficult in the present economic uncertainty, the digital sector is bucking this trend
and the relationships we have formed with leading players give me confidence that the second half results will see improving revenues".
- Ends -
For further information:
Vision Media Group (International) plc
Mike Cottman, Executive Chairman Tel: +44 (0) 203 206 0001
mikec@visionmediagroupplc.com www.visionmediagroupplc.com
Seymour Pierce Limited
Stuart Lane / John Depasquale, Corporate Finance Tel: +44 (0) 20 7107 8000
stuartlane@seymourpierce.com www.seymourpierce.com
Media enquiries:
Abchurch Communications
Henry Harrison-Topham / Jack Ballantyne Tel: +44 (0) 20 7398 7714
jack.ballantyne@abchurch-group.com www.abchurch-group.com
JOINT CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT AND OPERATIONAL REVIEW
We are pleased to announce the results for the first half of this year. These results reflect the considerable reorganisation and
investment costs which have been incurred by the Group in order to implement the streamlined strategy and outsourced sales model we began at
the start of the year. We are now on the way to achieving our goal, the benefits of which we are starting to see in the second half of this
year and which will grow into 2009 and beyond.
During the reported period the Company used �1,504,000 of net cash in continuing operations (2007: �3,339,000) as the Group
restructured: downsizing personnel numbers, closing down non-core activities and outsourcing a number of functions. The increasingly leaner
Group meant a decrease in revenue from continuing activities, by 32% to �710,000 (2007: �1,038,000), as the Group ceased chasing certain
non-profitable income streams. Like-for-like advertising revenues across VMG's digital panel network subsequently decreased 13% to �656,000
(2007: �754,000).
As the Group cut overheads in line with the revised strategy, the one off associated costs led to an increase in operating losses of
�2,625,000 (2007: loss of �2,258,000). Operating losses before reorganisation costs, however, remained broadly the same at �2,210,000 (2007:
loss of �2,258,000).
The basic and fully diluted loss per share improved to 5.76 pence (2007: loss of 12.66 pence).
Operational Developments
These financial results clearly do not reflect the restructuring and advances undertaken by the Group in the first half of the year,
which have positioned us for considerable growth and profitability going forward.
Our first step along that journey was made in January 2008 with the successful completion of the acquisition of Screen Media Networks
Limited which has now been fully integrated into our operations. With this acquisition the name of the Group was changed to Vision Media
Group (International) plc and we strengthened our Board through the appointment of a new Chief Executive Officer, Dominic Brookman, and our
senior management executive by the appointment of Tim Ritson as Sales and Marketing Director.
Together the new management team has continued to undertake the reorganisation of the Group and to review the business model to cope
with the demands of a very competitive outdoor advertising market. This market is dominated by a few multinational media specialists and to
compete as an independent has proven to be very restrictive to growth when client media budgets tend to be allocated as part of an entire
media package to the big four outdoor media giants.
To address this, in March, we successfully completed the signing of a ten year contract with Clear Channel Outdoor UK Limited ("CCUK"),
a part of one of the world's leading outdoor advertising contractors, for the procurement of national advertising across VMG's expanding
country-wide mall network of digital panels. This contract is scheduled to commence in Q4 2008 upon the installation of our new in-house
developed, portrait format Iconic Pods, which we launched in August 2008. 100 of these proprietary double-sided interactive panels, complete
with touch-screen technology, have now been ordered and will be installed throughout autumn in time for the 2008 Christmas shopping period,
the most important spending quarter of the advertising year.
Since the launch of the Iconic Pods, VMG has reached heads of agreement or contract with a further 33 shopping malls which will bring
the total number of malls within the VMG estate to 57 with 527 operating panels. The average length of the new contracts will be 8 years
with no minimal rental guarantees.
The manufacture of the Iconic Pods has been funded through draw downs on our existing facilities provided by Trafalgar Capital
Specialised investment Fund. Further Iconic Pods, which are due to be rolled out early next year, will be funded from the increased revenues
derived from the new operational and revenue structure. The Group has also managed to renegotiate the majority of its existing minimum
rental guarantee agreements with the malls which will give greater flexibility going forward.
In addition, the Group has now concluded a deal to outsource all local media sales to the UK's leading local sales specialist, WRT Group
plc ("WRT"). This will permit us access to a national network of in excess of 160 local sales personnel, enabling us to reduce our headcount
and general overheads even further, thereby further streamlining our operational efficiency.
Both the CCUK and WRT contracts will start to generate revenues in the later part of this year, although the real benefits will be seen
in 2009.
As part of the contractual discussions with CCUK we also agreed a ten year contract with them for the Group's convenience store road
side advertising panel network which will generate revenues in the form of one-off up-front payments per site as the poster units are
installed in late autumn 2008 through into early 2009.
In April 2008 VMG also announced a new five year deal to provide Merlin Entertainments Group with new digital screen and advertising
facilities. Since then their entire theme park estate has been re-equipped with remote digital technology in time for the UK summer season.
In addition, the Group successfully renegotiated and removed its minimum rental guarantee for its banner site in the centre of the City of
Leeds.
Funding and Outlook
In the period we have funded the Group through the placing of �1,315,000 of new equity net of costs and raised a net �1,393,000 of new
term debt. Further funds are in the process of being raised to ensure financial stability and assist further expansion. The Board maintains
the view that the Group has and will have sufficient funds to meet our growth forecast.
The Group continues to experience financial restraints caused by historical losses and the need to reorganise the Group's structure and
outsource advertising selling functions. However this reorganisation is now essentially complete and the increased revenue streams from
agreements signed over the course of 2008 will start to come through in the end of this year and onwards. We would like to thank all our
staff and business partners in helping us through this transitional period and look forward to a far stronger performance going forward.
Mike Cottman Dominic Brookman
Executive Chairman Chief Executive Officer
29 September 2008
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
6 months to 6 months to Year to
30 June 30 June 31 December
2008 2007 2007
Notes Unaudited Unaudited Audited
�000's �000's �000's
Revenue from continuing 2 710 1,038 1,563
operations
Cost of sales in respect of
continuing (939) (1,203) (2,274)
operations
Gross loss from continuing (229) (165) (711)
operations
Administrative expenses
in respect of continuing (1,981) (2,093) (3,800)
operations
Operating loss before
reorganisation (2,210) (2,258) (4,511)
costs from continuing
operations
Reorganisation costs in respect
of 4 (415) - -
continuing operations
Operating loss from continuing (2,625) (2,258) (4,511)
operations
Financial income in respect of
continuing 4 26 30
operations
Financial expense in respect of
continuing (311) (192) (401)
operations
Loss before tax from continuing
operations (2,932) (2,424) (4,882)
on Ordinary Activities before
Taxation
Taxation - - -
Loss after tax from continuing (2,932) (2,424) (4,882)
operations
Loss from discontinuing
operations (net of 2 (249) (295) (662)
tax)
Loss for the period
attributable to equity (3,181) (2,719) (5,544)
holders of the parent company
Loss per ordinary share 5
Basic and diluted (5.76)p (12.66)p (24.52)p
Continuing operations - basic (5.31)p (11.29)p (22.04)p
and diluted
Discontinuing operations - (0.45)p (1.37)p (2.48)p
basic and diluted
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
30 June 30 June 31 December
2008 2007 2007
Notes Unaudited Unaudited Audited
�000's �000's �000's
Non-current assets
Property, plant and equipment 1,820 1,785 1,538
Intangible assets 3 4,642 1,220 1,200
Total non-current assets 6,462 3,005 2,738
Current assets
Trade and other receivables 1,116 1,962 1,911
Cash and cash equivalents 64 375 -
1,180 2,337 1,911
Assets held for resale 5 576 547 574
Total assets 8,218 5,889 5,223
Equity and Liabilities
Equity attributable to equity shareholders
of the company
Share capital 8 11,488 6,811 6,968
Share premium 11,972 10,920 11,372
Retained earnings (21,738) (15,732) (18,557)
Total equity 1,722 1,999 (217)
Non-current liabilities
Interest-bearing
loans and borrowings 1,080 307 95
-
continuing
operations
Total non-current liabilities 1,080 307 95
Total current liabilities
Trade and other
payables - 3,436 2,383 3,250
continuing
operations
Provisions for 415 - -
reorganisation costs
Interest-bearing
loans and borrowings 1,287 1,031 1,868
-
continuing
operations
Total current liabilities 5,138 3,414 5,118
Trade and other payables in respect of the
disposal group 219 165 162
Interest-bearing loans and borrowings in
respect of the disposal group 59 4 65
Total liabilities 6,496 3,890 5,440
Total equity and liabilities 8,218 5,889 5,223
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
6 months to 6 months to Year to
30 June 2008 30 June 2007 31 December 2007
Unaudited Unaudited Audited
�000's �000's �000's
Cash flow from continuing operating
activities
Loss before tax (3,181) (2,424) (4,882)
Depreciation 391 467 842
Amortisation of intangible assets 25 20 40
Goodwill impairment - - 74
Finance costs 311 192 401
Finance income (4) (26) (30)
(Decrease)/Increase in trade and other
receivables 806 (546) (495)
Increase/(Decrease) in trade and other
payables 347 (856) 11
Cash used in continuing operating
activities (1,305) (3,173) (4,039)
Finance costs (203) (192) (401)
Finance income 4 26 30
Taxation - - -
Net cash used in continuing operating
activities (1,504) (3,339) (4,410)
Net cash used in discontinued operating
activities (183) (295) (639)
Total cash used in operating activities (1,688) (3,634) (5,049)
Cash flows from continuing investing
activities
Payments to acquire property, plant and
equipment (337) (28) (156)
Payments to acquire intangible assets - (23) (23)
Payment to acquire subsidiaries (308) - (7)
Net cash used in continuing investing
activities (645) (51) (186)
Net cash used in discontinued investing
activities (11) (26) (80)
Total cash used in investing activities (656) (77) (266)
Cash flows from continuing financing
activities
Proceeds on issue of ordinary shares 1,403 1,000 1,609
Issue costs (88) 8 8
Proceeds of new borrowings 1,431 400 1,125
Repayment of borrowings - (200) (250)
Repayment of bank borrowings (7) (8) (15)
Invoice discounting - (126) (126)
Capital element of finance leases repaid (388) (379) (594)
Movement in group borrowings (200) (622) (955)
Net cash inflow from continuing financing
activities 2,151 73 802
Net cash inflow from discontinued financing
activities 248 619 950
Total cash inflow from financing activities 2,399 692 1,752
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
Share
Share Premiu Retained
Capita m
l Accoun Earnings Total
t
�000's �000's �000's �000's
Group
At 1 January 2007 6,611 10,112 (13,013) 3,710
Proceeds of issue of shares (net of costs) 200 808 - 1,008
Retained loss for the year - - (2,719) (2,719)
At 30 June 2007 6,811 10,920 (15,732) 1,999
Proceeds of issue of shares (net of costs) 157 452 - 609
Retained loss for the year - - (2,825) (2,825)
At 31 December 2007 6,968 11,372 (18,557) (217)
Proceeds of issue of shares (net of costs) 998 317 - 1,315
Shares issued for conversion of loan 456 199 - 655
Shares issued for fees 168 84 - 252
Shares issued for acquisition (note 3) 2.898 - - 2.898
Retained loss for the period - - (3,181) (3,181)
At 30 June 2008 11,488 11,972 (21,738) 1,722
NOTES TO THE CONDENSED CONSOLIDATED
INTERIM FINANCIAL STATEMENTS
1. Accounting policies and basis of preparation
BASIS OF PREPARATION
The Group's interim financial information consolidates the results of the company and its subsidiary undertakings made up to 30 June
2008. The company is a limited liability company incorporated and domiciled in England & Wales and whose shares are listed on the AIM market
of the London Stock Exchange.
The financial information contained in this interim report does not constitute statutory accounts as defined in section 240 of the
Companies Act 1985. It does not therefore include all the information and disclosures required in the annual financial statements and should
be read in conjunction with the Group's annual financial statements as at 31 December 2007.
The financial information for the 6 months ended 30 June 2008 is also unaudited but has been reviewed by the auditors in accordance with
International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent
Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. The Group has not applied IAS 34, Interim
Financial Reporting, which is not mandatory for UK groups, in the preparation of these interim financial statements.
The Group's statutory accounts for the year ended 31 December 2007 have been delivered to the Registrar of Companies. The report of the
auditors on these accounts was unqualified, but included an emphasis of matter paragraph, and did not contain a statement under Section
237(2) or (3) of the Companies Act 1985.
The condensed financial information has been prepared on the going concern basis, which assumes that the Group will continue in
operational existence for the foreseeable future. The Group's ability to meet its future working capital requirements, and therefore
continue as a going concern, is dependant on it being able to generate significant revenues and free cash flow. The Group has recently
announced, on 28 May 2008 an extension of the loan facilities provided by Trafalgar Capital Specialised Investment Fund. The following
drawdowns on this facility, before costs, have since been made, 28 May �250,000, 11 June �250,000, 14 August �225,000 and 31 August
�200,000. On 11 June new equity totalling �500,000 and 2 July �104,131 was raised. Negotiations to dispose of part of the Group's business
for c.�1.5m in cash and loan notes are continuing.
In common with many early stage businesses, and given the current economic climate, it is very difficult to predict the timing and
extent of future revenues. However, the directors have prepared projections which they consider to be realistic and which demonstrate that
the business can operate within existing cash resources and the funds which are expected to be raised from equity and debt fundraising and
financing initiatives currently being pursued by the directors. Alternative actions have been identified in a series of realistically
achievable measures that the Group is committed to taking to mitigate the rate of cash outflow should financing not be secured as
predicted.
Whilst there is fundamental uncertainty in relation to the above matters, the directors consider that, based on indications received
from potential financiers so far, a positive outcome is likely and they therefore consider that it is appropriate for the financial
information to be prepared on a going concern basis. The financial information therefore does not include any adjustments that might result
from the Group being unable to continue as a going concern.
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies used in the preparation of the financial information for the six months ended 30 June 2008 are in accordance
with the recognition and measurement criteria of International Financial Reporting Standards ('IFRS') as adopted by the European Union and
are consistent with those which were adopted in the annual statutory financial statements for the year ended 31 December 2007.
2. Segmental analysis
Segmental information is presented in the consolidated interim financial statements in respect of the Group's continuing business
segments, which are the primary basis of segment reporting. Inter-segment revenue is insignificant.
Revenue Loss after taxation
6 months to 6 months to Year to 31 6 months to 6 months to Year to 31
30 June 30 June December 30 June 30 June December
2008 2007 2007 2008 2007 2007
Unaudited Unaudited Audited Unaudited Unaudited Audited
�000's �000's �000's �000's �000's �000's
Continuing operations
Digital
networks 656 754 1,205 (2,461) (2,015) (4,314)
Banners 54 70 125 (52) (50) (221)
Other, inc
healthcare
and Media
- 214 233 - (360) (347)
710 1,038 1,563 (2,513) (2,424) (4,882)
Reorganisation costs (note 4) (415) - -
(2,932) (2,424) (4,882)
Discontinuing operations
Revenue 17 10 34
Costs (266) (305) (696)
Loss after tax (249) (295) (662)
(3,181) (2,719) (5,544)
3. Acquisition
During the period the group acquired the entire issued share capital of Screen Media Networks Limited for a consideration of �2,960,039,
satisfied by the issue of 29,600,392 ordinary shares of �0.10 each at par. The investment has been included in the accounts at its fair
value at the date of acquisition.
The fair value of the assets at the date of acquisition were as follows:
�000's
Property, plant and equipment 336
Trade and other receivables 11
Cash and cash equivalents 23
Trade and other payables (192)
Interest bearing loans and borrowings (561)
Total net liabilities (383)
Goodwill on acquisition 3,467
3,084
Satisfied by:
Share consideration 2,960
Costs of acquisition 124
3,084
4. Reorganisation costs
6 Months 6 Months 12 Months
30-Jun-08 30-Jun-07 31-Dec-07
Unaudited Unaudited Audited
�000's �000's �000's
OPERATING COSTS
Property closure and dilapidations 165 - -
Local sales office closures and outsourcing 35 - -
Screen reorientation & other 215 - -
Total provision for reorganisation costs 415 - -
5. Discontinuing operations and assets held for resale
The discontinuing operation is the group's TrainFX business based in Derby, the planned disposal of which was announced on 17th March
2008. Negotiations with the prospective purchasers New Planet Investments Limited remain ongoing.
30 June 30 June 31 December
2008 2007 2007
Unaudited Unaudited Audited
�000's �000's �000's
Property, plant and equipment
- Cost 334 269 323
- Accumulated depreciation (59) (35) (59)
Intangible assets
- Cost 325 325 325
- Accumulated amortisation (67) (40) (67)
533 519 522
Trade and other receivables 43 28 52
576 547 574
Liabilities in respect of the TrainFX
business:
Trade and other payables (219) (165) (162)
Deposit held (50) 0 0
Finance leases 0 (4) (1)
Bank borrowings (9) 0 (64)
(278) (169) (227)
The deposit held at 30 June 2008 relates to a working capital funding contribution received from New Planet Investments Limited which is
deductible by them if they complete the intended acquisition of the TrainFX business and assets.
6. Loss per ordinary share
The calculation of basic loss per ordinary share is based on losses attributable to equity holders issue during the period. The weighted
average number of shares in issue for the period to 30 June 2008 is 55,279,030 (31 Dec 2007 - restated 21,477,950, 30 June 2007 - restated
21,477,950)
The loss for the periods and the weighted average number of ordinary shares for calculating the diluted loss per share are identical to
those for the basic loss per share. This is because the outstanding share options would have the effect of reducing the loss per ordinary
share and would therefore not be dilutive under the terms of International Accounting Standard ("IAS") 33.
7. Tax Losses
There is no tax charge for the period and no deferred tax asset has been provided for. The group has tax losses carried forward of
approximately �20,800,000 and an unprovided potential deferred tax asset of approximately �5,824,000.
8. Share capital
Ordinary shares Deferred shares Total
Number �000's Number �000's �000's
Balance 1 January 2007; shares
of 2,103,596,066 2,104 4,507,151,760 4,507 6,611
0.1p ea
Share issue - placing 200,000,000 200 - - 200
Balance 30 June 2007 2,303,596,066 2,304 4,507,151,760 4,507 6,811
Share issue - placing 150,000,034 150 - - 150
Shares of 0.1p ea 2,453,596,100 2,454 4,507,151,760 4,507 6,961
Share consolidation (a) 24,535,961 45,071,517
Shares issued for fees 68,181 7 - - 7
Balance 31 December 2007;
shares of 10p each 24,604,142 2,461 45,071,517 4,507 6,968
Acquisition of Screen Media
Networks Limited 28,975,842 2,898 - - 2,898
Shares issued for fees 1,099,074 110 - - 110
Conversion of loan 313,480 31 - - 31
Conversion of directors loans 4,250,952 425 - - 425
Share issue - placing 9,412,970 941 - - 941
Shares of 10p each 68,656,442 6,866 45,071,517 4,507 11,373
Share split (b) 68,656,442 1,073,910,927
Share issue - placing 5,741,901 57 - - 57
Shares issued for fees 5,765,362 58 - - 58
Balance 30 June 2008; shares
of 80,163,705 6,981 1,073,910,927 4,507 11,488
1p each
(a) Following the granting of the necessary approval at the meeting held on 5 September 2007, the share capital of the company was
consolidated. In the consolidation every 100 old shares of common stock with a value of 0.1p each were exchanged for one new share with a
value of 10 pence each and every 100 deferred shares of 0.1 pence each were exchanged for one deferred share of 10 pence each.
(b) At the Extraordinary General Meeting held on 2 June 2008 each of the of the issued and unissued deferred shares of 10p each were
sub-divided and re-designated as 10 deferred shares of 1p each and each of the issued ordinary shares of 10p each were sub-divided and
re-designated into 1 ordinary share of 1p each and 9 deferred shares of 1p each, and each of the authorised but unissued ordinary shares of
10p were sub-divided and re-designated into 10 ordinary shares of 1p each.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEDFAUSASEEU
Vision Media (LSE:VMG)
Historical Stock Chart
From May 2024 to Jun 2024
Vision Media (LSE:VMG)
Historical Stock Chart
From Jun 2023 to Jun 2024
