20th Dec 2019 14:50
(Alliance News) - Catalyst Media Group PLC on Friday said it swung to a loss in its most recent financial year following a substantial impairment.
Catalyst swung to a GBP606,115 loss from a GBP953,903 profit in its financial year ended June 30. This was despite its share of profit from SIS more than trebling to GBP3.8 million from GBP1.0 million. Revenue was flat at GBP25,000.
Catalyst holds a 21% stake in Sports Information Services Holdings Ltd and its results include its share of profit for SIS's year ended March 31.
SIS sold its SIS Live business for GBP17.8 million in October 2018, prompting Catalyst to review its investment and ultimately reduce the carrying value of its SIS interest to GBP14.3 million from GBP18.5 million, resulting in a GBP4.3 million impairment. No such impairment was recorded the year before.
On October 31, after Catalyst's year end, SIS paid a total dividend of GBP5.0 million - of which Catalyst's share was GBP1.0 million. This was distributed to shareholders as a 5p per share dividend, leaving Catalyst with cash of around GBP320,000.
This compares to the previous year when SIS distributed a GBP40 million dividend following the SIS Live sale, with Catalyst's share being GBP8.2 million. Catalyst used this to fund the majority of its 58p per share dividend paid in October 2018.
"As stated above, SIS expects profits to be in line with its management expectations for the year ending March 2020 and accordingly, cash reserves are expected to remain high. On that basis, the board expects further dividends to be declared by SIS going forward, though the quantum and timing of such dividends is not yet known," said Catalyst Chair Michael Rosenberg.
Shares in Catalyst were untraded at 69.00 pence in London on Friday afternoon.
By Anna Farley; [email protected]
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