30th Jun 2016 11:41
LONDON (Alliance News) - Event marketing and media agency Parallel Media Group PLC on Thursday said its pretax loss narrowed, despite revenue more than halving, as exceptional item charges came in much lower.
Parallel Media posted revenue of GBP241,000 for 2015, down from the GBP692,000 reported a year earlier, but saw its pretax loss narrow to GBP309,000 from GBP4.6 million, after the GBP3.1 million exceptional items charge relating to inter-company loans and related party balances that the company took in 2014 did not repeat.
The company said its balance sheet was now "much cleaner", following a year in which it restructured the balance sheet, reduced overheads and strengthened its music business in Asia.
Parallel Media added that its Chairman David Ciclitira has increased his loans to the company to GBP984,000 currently from GBP872,000 at the end of December.
Although there are as yet no formal terms for this loan, it is agreed between David Ciclitira and the independent directors, Tim Sturm and Ranjit Murugason, that the loans will not carry interest and are repayable upon demand, Parallel Media said.
As the loans are a related-party transaction, the independent directors consulted with Parallel Media's nominated advisor Stockdale Securities and found the provision of loans to be considered fair and reasonable.
"Parallel Media can now look clearly to the future to focus on its two primary sources of revenue - its live event division and its entertainment business. The board feels positive about the growth potential of the group," Ciclitira said in the statement.
Shares in Parallel Media were up 41% at 14.49 pence on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
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