27th Aug 2009 07:00
UTV Media plc ("UTV" or "the Company" or "the Group") Interim Results for the six months ended 30 June 2009
Financial highlights:
* Group turnover down 10% to 54.5m (2008 : 60.9m) * Group operating profit, including associates, is 11.0m (2008: 15.4m) * Pre-tax profits before exceptional items of 7.8m (2008: 11.2m) * Reduction in net debt of 12.1m * As a result of refinancing in 2008, a reduction in debt and lower interest rates, net finance costs reduced to 3.0m (2008: 4.3m) * Radio operating profit, including income from associates, down 16% to 8.2m (2008: 9.8m) accounting for 74% of total operating profit * Television operating profits down 61% to 1.8m (2008 : 4.7m) * New Media operating profits up by 9% to 1.0m (2008 : 0.9m) * 3.0m of targeted annual savings of 5.0m achieved in H1 2009 - ahead of budget
John McCann, Group Chief Executive, UTV Media plc, said:
"This has undoubtedly been a challenging six months. However, our results demonstrate the resilience of the business. Over the last six months we have actively sought to reduce costs and reduce our debt. Both have been successful and have gone some way to moderate the impact of unprecedented advertising markets. It is difficult to give a detailed outlook because of continuing macroeconomic uncertainty, nonetheless we are expecting the rate of decline in advertising to slow as comparatives ease over the coming months."
For further information contact:
Maitland +44 (0) 20 7379 5151Anthony SilvermanRowan BrownUTV Media plcJohn McCann, Group Chief Executive +44 (0) 28 9026 2202Norman McKeown, Group Finance Director +44 (0) 28 9026 2098Orla McKibbin, Head of Communications +44 (0) 28 9026 2188
Introduction
Your company's ability to cope with the severity of the recession is evidenced in these results. Prompt action in disposing of loss making radio assets and in implementing a disciplined cost reduction programme, which is ahead of target, mitigated against an unprecedented slump in advertising markets. As a result, while revenue fell by 6.4m, group operating profit was down by 4.4m to 11.0m and pre-tax profit was 7.8m (2008: 11.2m). Our continuing focus on cash management helped to drive down net debt during the period by 12.1m.
Results
Group turnover from continuing operations for the first six months of 2009 reduced by 10% to 54.5m (2008: 60.9m). Operating profit, including associates, before exceptional items was down by 29% to 11.0m (2008: 15.4m) with television profits falling by 61% to 1.8m (2008: 4.7m) and profits from GB radio reducing by 26% to 4.6m (2008: 6.2m). Our Irish radio operating profit of 3.6m was in line with last year (2008: 3.6m), assisted by exchange gains and the acquisition of FM104 in April of 2008. New Media profits of 1.0m also were comparable to last year (2008: 0.9m). After net interest costs of 3.0m (2008: 4.3m), pre-tax profits before exceptional items were down by 30% to 7.8m (2008: 11.2m). Diluted adjusted earnings per share were 6.17p (2008: 13.72p). Net debt reduced from 108.4m at the year end to 96.3m. Cash absorbed during the six months included 1.3m in respect of restructuring and 1.4m in respect of capital expenditure due to co-location of some of our radio operations, while exchange rate movements had a beneficial impact of 4.4m.
Dividend
The inherent uncertainty as to the depth and duration of the recession and its impact on advertising, forces us to adopt a more cautious approach to the interim dividend. Whilst we remain committed to the longer term objective of increasing dividends, we believe it is prudent at this time not to pay an interim dividend but to review the full year dividend payout for 2009 and our future dividend policy at the time of publication of our 2009 results in March next year.
Radio
Total revenue from our radio operations was down by 2.1m to 33.1m, with operating profit falling by 1.6m to 8.2m. Our GB radio division experienced an improving trend, with a 16% decline in revenue in the first quarter moving back to an 11% decline in the second quarter. An overall 13% reduction in the six months outperformed a market which we believe was down by 16%. Revenue from our continuing GB radio operations was 20.8m (2008: 23.8m) and operating profit was 4.6m (2008: 6.2m).
Our Irish radio division increased revenue by 0.9m, or 8%, to 12.3m, with the inclusion of FM104 for the full six months accounting for a 17% uplift and sterling translation exchange gains adding 12%. On a like for like basis, Irish Radio revenue fell by 21% in the period, with the second quarter decline being somewhat worse than anticipated at 23%. Irish radio operating profit was maintained at 3.6m for the first half.
Television
After an 18% decline in the first quarter, television advertising revenue fell more sharply in the second quarter, resulting in a 23% reduction to 14.0m (2008: 18.3m) for the period as a whole. While television advertising revenue from GB moved broadly in line with the market, our advertising revenue from the Republic of Ireland dropped by 40% in the half year largely reflecting reduced revenue from multi-national customers. Television advertising revenue from the Northern Ireland market was relatively resilient, suffering only a 6% decline. Our rigorous cost reduction programme helped to offset some of the 4.4m reduction in total television revenue from 19.9m to 15.5m to give a television operating profit for the six months of 1.8m (2008: 4.7m).
New Media
Our continued emphasis on achieving higher margins for broadband and telephony and our focus on content delivery through Tibus have ensured a solid performance in difficult trading conditions. In the six months to 30 June 2009, new media revenues were up by 1% to 5.9m (2008: 5.8m) and operating profits were up by 9% to 1.0m (2008: 0.9m)
Prospects
The task of providing guidance about future trading has never been more difficult. Nevertheless, our expectation is that as the comparative numbers become softer, the rate of decline in advertising revenue will slow.
The effect of those comparatives is beginning to be felt in GB Radio which had started to turn negative in the summer of last year. Our expectation is that GB radio revenue, which had declined by 13% in the first half of 2009, will ease to no more than a 6% reduction in the third quarter. Irish radio revenue, which was down by 21% on a like for like basis in the first 6 months of this year, is expected to be down by 20% in the current three months. The rate of decline in the television advertising marketplace is slowing in this quarter and television revenue for the 3 months to the end of September should be down by 16%. Thereafter, in both television and radio, the advertising market will be responsive to the changing macroeconomic situation, with any improvement in the latter being rewarded with enhanced demand in the former.
Our New Media division is expected to deliver revenue in line with forecasts and generate operating profit somewhat ahead of 2008. We are continuing to drive down costs wherever possible and, in the full year, expect to deliver savings of 6m compared to the targeted 5m.
Fundamentally, UTV is a strong business with excellent assets, diversified across multiple media platforms and is run by a highly experienced management team. We believe we are well positioned for the upturn when this current unpredictable period comes to an end.
John B McGuckianChairman27 August 2009Group Income Statement
for the six months ended 30 June 2009
Results Result before before Exceptional Exceptional Exceptional Exceptional Items Items Total Items Items Total 30 30 30 30 30 30 June June June June June June Notes 2009 2009 2009 2008 2008 2008 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 Continuing operations Revenue 3 54,505 - 54,505 60,899 - 60,899 Operating costs (43,634) - (43,634) (45,580) - (45,580) ----- ----- ----- ----- ----- ----- Operating profit 3 10,871 - 10,871 15,319 - 15,319from continuing operations before tax and finance costs Exceptional costs 6 - - - - (487) (487) Share of results of 143 - 143 101 - 101associates accounted for using the equity method ----- ----- ----- ----- ----- ----- Profit from continuing 11,014 - 11,014 15,420 (487) 14,933operations before tax and finance costs Finance revenue 104 - 104 188 - 188 Finance costs (3,071) - (3,071) (4,459) - (4,459) Foreign exchange (244) - (244) 78 - 78(loss)/gain ----- ----- ----- ----- ----- ----- Profit from continuing 7,803 - 7,803 11,227 (487) 10,740operations before tax Taxation (1,767) (1,500) (3,267) (2,558) 136 (2,422) ----- ----- ----- ----- ----- ----- Profit from continuing 6,036 (1,500) 4,536 8,669 (351) 8,318operations after tax Discontinued operations Loss from discontinued (222) - (222) (615) (43) (658)operations ----- ----- ----- ----- ----- ----- 6 5,814 (1,500) 4,314 8,054 (394) 7,660 ----- ----- ----- ----- ----- ----- Attributable to: Equity holders of 5,667 (1,500) 4,167 7,923 (394) 7,529the parent Minority interests 147 - 147 131 - 131 ----- ----- ----- ----- ----- ----- 5,814 (1,500) 4,314 8,054 (394) 7,660 ----- ----- ----- ----- ----- ----- Notes 2009 2008 Earnings per share Continuing operations Basic 8 4.60p 13.17p Diluted 8 4.60p 13.15p Adjusted 8 6.17p 13.74p Diluted adjusted 8 6.17p 13.72p ------ ------ Continuing and discontinued operations Basic 8 4.37p 12.11p Diluted 8 4.37p 12.09p Adjusted 8 5.94p 12.75p Diluted adjusted 8 5.94p 12.73p ------ ------ GBP000 GBP000 Dividends Declared and paid during the period 7 Nil pence per share (2008: 8.30p) - 4,759 ------ ------
Group Statement of Comprehensive Income
for the six months ended 30 June 2009
30 30 June June 2009 2008 GBP000 GBP000 Profit for the period 4,314 7,660 ------ ------ Other comprehensive income
Exchange difference on translation of foreign operations (8,850) 2,964
Actuarial loss on defined benefit pension schemes (5,960) (3,640) Gain on cash flow hedges 89 970 Tax relating to other comprehensive income 1,646 577 ------ ------
Other comprehensive (loss)/income for the period, net of (13,075) 871 tax
------ ------ Total comprehensive (loss)/income for the period, net of (8,761) 8,531tax ------ ------ Attributable to: Equity holders of the parent (8,908) 8,400 Minority interests 147 131 ------ ------ (8,761) 8,531 ------ ------Group Balance Sheetas at 30 June 2009 30 30 31 June June December 2009 2008 2008 Notes GBP000 GBP000 GBP000 ASSETS Non-current assets Property, plant and equipment 5 11,468 10,589 11,581 Intangible assets 256,491 251,598 270,542 Investments accounted for using the equity 258 298 151method Other investments - 300 - Deferred tax asset 16,758 16,078 16,783 ------ ------ ------ 284,975 278,863 299,057 ------ ------ ------ Current assets Inventories 522 480 491 Trade and other receivables 28,146 28,658 30,895 Financial assets - 1,872 - Cash and short term deposits 9,864 8,144 9,280 ------ ------ ------ 38,532 39,154 40,666 ------ ------ ------ TOTAL ASSETS 323,507 318,017 339,723 ------ ------ ------ EQUITY AND LIABILITIES Equity attributable to equity holders of the parent Equity share capital 55,557 8,086 55,557 Capital redemption reserve 50 50 50 Treasury Shares (1,258) (998) (1,258) Foreign currency reserve 9,796 4,317 18,646 Cash flow hedge reserve (1,393) 1,872 (1,455) Retained earnings 56,355 60,695 56,475 ------ ------ ------ 119,107 74,022 128,015 Minority interest 740 443 593 ------ ------ ------ TOTAL EQUITY 119,847 74,465 128,608 ------ ------ ------ Non-current liabilities Interest bearing loans and borrowings 9 97,298 112,026 108,267 Pension liability 11 13,718 4,225 8,593 Provisions 1,623 923 1,100 Deferred tax liabilities 49,244 49,454 49,037 ------ ------ ------ 161,883 166,628 166,997 ------ ------ ------ Current liabilities Trade and other payables 29,963 29,923 31,612 Current portion of interest bearing loans 9 8,255 45,005 8,650and borrowings Financial liabilities 1,869 - 1,958 Tax payable 1,348 1,545 1,556 Provisions 342 451 342 ------ ------ ------ 41,777 76,924 44,118 ------ ------ ------ TOTAL LIABILITIES 203,660 243,552 211,115 ------ ------ ------ TOTAL EQUITY AND LIABILITIES 323,507 318,017 339,723 ------ ------ ------
Group Statement of Changes in Equity
for the six months ended 30 June 2009
Cash Equity Capital Foreign flow Share- share redemption Treasury currency hedge Retained holder capital reserve shares reserve reserve earnings equity GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 Balance at 1 January 8,086 50 (740) 1,353 902 61,405 71,0562008 Acquisition of treasury - - (258) - - - (258)shares Total net comprehensive - - - 2,964 970 4,466 8,400income in the period Share based payment (417) (417) Dividends paid to - - - - - (4,759) (4,759)equity shareholders ---- ---- ---- ---- ---- ---- ----
Balance at 30 June 2008 8,086 50 (998) 4,317 1,872 60,695 74,022
Acquisition of treasury - - (260) - - - (260)shares Rights issue proceeds 49,869 - - - - - 49,869 Rights issue costs (2,398) - - - - - (2,398) Total net comprehensive - - - 14,329 (3,327) (1,072) 9,930income/(loss) in the period Dividends paid to - - - - - (3,148) (3,148)equity shareholders ---- ---- ---- ---- ---- ---- ---- Balance at 31 December 55,557 50 (1,258) 18,646 (1,455) 56,475 128,0152008 Total net comprehensive - - - (8,850) 62 (120) (8,908)(loss)/income in the period ---- ---- ---- ---- ---- ---- ----
Balance at 30 June 2009 55,557 50 (1,258) 9,796 (1,393) 56,355 119,107
---- ---- ---- ---- ---- ---- ---- Shareholder Minority equity interest Total GBP000 GBP000 GBP000 Balance at 1 January 2008 71,056 312 71,368 Acquisition of treasury shares (258) - (258) Total net comprehensive income in the period 8,400 131 8,531 Share based payments (417) - (417) Dividends paid to equity shareholders (4,759) - (4,759) ------ ------ ------ Balance at 30 June 2008 74,022 443 74,465 Acquisition of treasury shares (260) - (260) Rights issue proceeds 49,869 - 49,869 Rights issue costs (2,398) - (2,398) Total net comprehensive income/(loss) in the 9,930 150 10,080period Dividends paid to equity shareholders (3,148) - (3,148) ------ ------ ------ Balance at 31 December 2008 128,015 593 128,608 Total net comprehensive (loss)/income in the (8,908) 147 (8,761)period ------ ------ ------ Balance at 30 June 2009 119,107 740 119,847 ------ ------ ------Group Cash Flow Statement
for the six months ended 30 June 2009
30 30 June June 2009 2008 GBP000 GBP000 Operating activities
Cash generated from operations before exceptional costs 14,573 17,141
Discretionary pension payment (950) (950) Exceptional costs (1,340) (730) Tax received/(paid) 120 (605) ------ ------ Net cash inflow from operating activities 12,403 14,856 ------ ------ Investing activities Interest received 105 208 Proceeds on disposal of property, plant and equipment 65 - Purchase of property, plant and equipment (1,758) (568) Payment to acquire investments (236) (44,929) ------ ------ Net cash flows from investing activities (1,824) (45,289) ------ ------ Financing activities Borrowing costs (2,905) (4,929) Dividends paid to equity holders of the parent (9) (4,759) Repayment of borrowings (6,778) (475) Proceeds from borrowings - 38,705 Acquisition of treasury shares - (258) Rights Issue costs (23) - ------ ------ Net cash flows used in financing activities (9,715) 28,284 ------ ------ Net increase/(decrease) in cash and cash equivalents 864 (2,149) Net foreign exchange differences (280) 56 Cash and cash equivalents at 1 January 9,280 10,237 ------ ------ Cash and cash equivalents at 30 June 9,864 8,144 ------ ------Notes to the accounts1. Basis of preparation
The interim financial statements have been prepared in accordance with IAS34 "Interim Financial Reporting" and the Disclosure and Transparency Rules of the Finance Services Authority.
In addition the interim financial statements have been prepared on a basis consistent with the accounting policies set out in the Group's Annual Report and Accounts for the year ended 31 December 2008 except for the adoption of IAS1 (revised) "Presentation of Financial Statements", IAS8 "Operating Segments" and IAS32 (revised) "Borrowing Costs".
The adoption of IAS1 (revised) has required the reconciliation of movements in equity, previously disclosed in note 29 to the Group Financial Statement for the year ended 31 December 2008, to be presented as a primary statement entitled "Group Statement of Changes in Equity". In addition the Group Statement of Recognised Income and Expense has been replaced with the Group Statement of Comprehensive Income resulting in some presentational changes from the previous statement.
In adopting IFRS8 the Group concluded that the operating segments were the same business segments determined under IAS14 "Segment Reporting". Details of these operating segments are disclosed in note 3. In adopting IAS23 (revised) the Group has amended its accounting policy and, from 1 January 2009, now capitalises borrowing costs on qualifying assets. The implementation of this policy has had no material impact on the Group's financial statements.
The interim results are unaudited but have been formally reviewed by the auditors and their report to the Company is set out at the end of this Interim Report. The information shown for the year ended 31 December 2008 does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 and has been extracted from the Group's 2008 Annual Report, which has been filed with the Registrar of Companies. The report of the auditors on the accounts contained within the Group's 2008 Annual Report was unqualified and did not contain a statement under either Article 245(2) or Article 245(3) of the Companies (Northern Ireland) Order 1986 regarding inadequate accounting records or a failure to obtain necessary information and explanations.
2. Seasonality and cyclicality
There is no significant seasonality or cyclicality affecting the interim results of the operations.
3. Segmental information
The Group operates in four principal areas of activity - radio in GB, radio in Ireland, commercial television and new media. These four principal areas of activity also form the basis on which the Group is managed and reports are provided to the Chief Executive and the Board. The following is an analysis of the revenue and results for the period, analysed by reportable segment.
RevenueSix months ended 30 June 2009 Radio Radio Television New Media Total GB Ireland GBP000 GBP000 GBP000 GBP000 GBP000 Sales to third parties 20,783 12,324 15,534 5,864 54,505 Intersegmental sales 464 667 806 - 1,937 ----- ----- ----- ----- ---- Total segment revenue 21,247 12,991 16,340 5,864 56,442 ----- ----- ----- ----- ----Six months ended 30 June 2008 Radio Radio Television New Media Total GB Ireland GBP000 GBP000 GBP000 GBP000 GBP000 Sales to third parties 23,829 11,395 19,883 5,792 60,899 Intersegmental sales 517 574 607 - 1,698 ----- ----- ----- ----- ----- Total segment revenue 24,346 11,969 20,490 5,792 62,597 ----- ----- ----- ----- -----ResultsSix months ended 30 June 2009 Radio Radio Television New Media Total GB Ireland GBP000 GBP000 GBP000 GBP000 GBP000
Segment operating profit before 4,468 3,580 1,815 1,008 10,871 exceptional costs
Share of results of associates 143 - - - 143
----- ----- ----- ----- ----- Profit before tax and finance 4,611 3,580 1,815 1,008 11,014costs ----- ----- ----- ----- Net finance costs (2,967) Foreign exchange loss (244) ----- Profit before tax 7,803 Taxation (3,267) ----- Net profit for the period 4,536 -----
Six months ended 30 June 2008
Radio Radio Television New Media Total GB Ireland GBP000 GBP000 GBP000 GBP000 GBP000
Segment operating profit before 6,106 3,587 4,705 921 15,319 exceptional costs
Share of results of associates 101 - - - 101
----- ----- ----- ----- ----- Profit before tax and finance 6,207 3,587 4,705 921 15,420costs ----- ----- ----- ----- Exceptional costs (487) ----- 14,933 Net finance costs (4,271) Foreign exchange gain 78 ----- Profit before tax 10,740 Taxation (2,422) ----- Net profit for the period 8,318 -----4. Discontinued operations
Discontinued operations relate to a number of loss making radio stations in GB which were identified for sale or closure in 2008 (stations in Dundee, Stockport and Edinburgh) and 2009 (a station in Gwent). The 222,000 (2008: 658,000) loss from discontinued operations reflected in our Income Statement relates to a 252,000 (2008: 920,000) loss from operating activities less a tax credit of 30,000 (2008: 262,000).
5. Property, plant and equipment
During the period the Group spent 1,758,000 on capital additions.
6. Exceptional items 30 30 June June 2009 2008 GBP000 GBP000 Restructuring costs - (547) Tax credit associated with exceptional costs - 153 Exceptional tax charge (i) (1,500) - ----- ----- (1,500) (394) ----- -----
(i) During the year, the capital gains tax rate in the Republic of Ireland was revised from 22% to 25%. Accordingly the deferred tax liabilities in respect of radio licences in the Republic of Ireland were restated to recognise the future gains thereon at this rate. This resulted in a net charge of 1,500,000.
7. Dividends 30 30 June June 2009 2008 GBP000 GBP000 Equity dividends on ordinary shares Declared and paid during the period Final for 2008: Nil (2007: 8.30p) - 4,759 ------ ------ Proposed but not recognised as a liability at 30 June Final for 2008: 2.00p (Paid on 15 July 2009) 1,908 Interim for 2009: Nil - ------ 8. Earnings per share
Basic earnings per share is calculated based on the profit for the financial period attributable to equity holders of the parent and on the weighted average number of shares in issue during the period.
Adjusted earnings per share are calculated based on the profit for the financial period attributable to equity holders of the parent adjusted for the exceptional items. This calculation uses the weighted average number of shares in issue during the period.
Diluted earnings per share are calculated based on profit for the financial period attributable to equity holders of the parent. The weighted average number of shares is adjusted to reflect the dilutive potential of the Share Option Schemes.
Diluted adjusted earnings per share are calculated based on profit for the financial period attributable to equity holders of the parent before exceptional items. The weighted average number of shares is adjusted to reflect the dilutive potential of the Share Option Schemes.
The weighted average number of ordinary shares for the period ended 30 June 2008 has been restated to reflect the bonus element of the 2 for 3 rights issue of ordinary shares in July 2008.
The following reflects the income and share data used in the basic, adjusted, diluted and diluted adjusted earnings per share calculations:
Net profit attributable to equity holders
2009 2008 --------------------- -------------------- Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total GBP000 GBP000GBP000 GBP000 GBP000GBP000 Net profit attributable to 4,389 (222) 4,167 8,187 (658) 7,529equity holders Exceptional items (net of 1,500 - 1,500 351 43 394tax) ---- ---- --- ---- --- --- Total adjusted and diluted 5,889 (222) 5,667 8,538 (615) 7,923profit attributable to equity holders ----- ----- ---- ----- ----- ----
Weighted average number of shares
2009 2008 thousands thousands
Weighted average number of shares for basic and adjusted 95,403 62,152 earnings per share (excluding treasury shares)
Effect of dilution of the share options - 98 ----- ----- Adjusted weighted average number of ordinary shares for 95,403 62,250diluted earnings per share ------ ------Earnings per share
From continuing and discontinued operations
2009 2008 Basic 4.37p 12.11p ------ ------ Diluted 4.37p 12.09p ------ ------ Adjusted 5.94p 12.75p ------ ------ Diluted adjusted 5.94p 12.73p ------ ------ From continuing operations 2009 2008 Basic 4.60p 13.17p ------ ------ Diluted 4.60p 13.15p ------ ------ Adjusted 6.17p 13.74p ------ ------ Diluted adjusted 6.17p 13.72p ------ ------ From discontinuing operations 2009 2008 Basic (0.23)p (1.06)p ------ ------ Diluted (0.23)p (1.06)p ------ ------ Adjusted (0.23)p (0.99)p ------ ------ Diluted adjusted (0.23)p (0.99)p ------ ------9. Financial liabilities 30 30 31 June June December 2009 2008 2008 GBP000 GBP000 GBP000 Current Current instalments due on bank loans 8,255 45,005 8,650 Non-current Non-current instalments due on bank loans 97,298 112,026 108,267 ------ ------ ------ Total 105,553 157,031 116,917 ------ ------ ------
The bank loans at 30 June 2009 are stated net of deferred financing costs amounting to 671,000 (30 June 2008: 1,163,000, 31 December 2008: 786,000).
10. Net debt 30 30 31 June June December 2009 2008 2008 GBP000 GBP000 GBP000 Bank loans (106,224) (158,194) (117,703) Cash and short term deposits 9,864 8,144 9,280 ------ ------ ------ Net debt (96,360) (150,050) (108,423) ------ ------ ------11. Pension schemes
The IAS 19 deficit at 30 June 2009 is 13,718,000 compared with a deficit of 8,593,000 at 31 December 2008. The increase in the deficit partly reflects a substantial increase in the assumption for long term price inflation from the start of the year from 2.9% per annum to 3.5% per annum, as indicated by changes in the relative yields of long dated fixed interest and index linked gilts. This increased the projected benefit payments from the Scheme, albeit this effect was partly mitigated by an increase in the liability discount rate of 6.25% per annum to 6.4% per annum. The discount rate was established using a consistent approach on both dates, based on the yields available from corporate bonds with an appropriate duration to the Scheme's liabilities.
There was an actuarial loss on the assets as they produced a slightly negative return during the six months period (approximately 7% per annum).
These movements were partially offset by a payment of 950,000 to the UTV Scheme over and above normal funding during the period. The Company will also be making an additional contribution to the UTV Scheme of 1,150,000 before 31 December 2009.
12. Related party transactions
The nature of related parties disclosed in the consolidated financial statements for the Group as at and for the year ended 31 December 2008 has not changed. There have been no significant related party transactions in the six month period ended 30 June 2009.
Risks and uncertainties
The 2008 Annual Report sets out the most significant risk factors relating to UTV Media plc's operations in the Company's judgement at the time of that report. The Company does not consider that these principal risks and uncertainties have changed. However additional risks and uncertainties not currently known to the Company, or that the Company does not currently deem material, may also have an adverse effect on its business.
With respect to the risks and uncertainties identified within the Annual Report, the Chairman's statement highlights those risks and uncertainties that will have significant impact throughout 2009.
Statement of directors' responsibilities
The interim report is the responsibility of, and has been approved by, the directors of UTV Media plc. Accordingly, the directors confirm that to the best of their knowledge:
* the condensed set of financial statements has been prepared in accordance
with IAS 34 "Interim Financial Reporting" as adopted by the European Union;
* the interim report includes a fair review of the information required by
the Disclosure and Transparency Rules:
- DTR 4.2R, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the year; and
- DTR 4.2R, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period, and any changes in the related party transactions described in the last annual report that could do so.
By order of the Board:John McCannGroup Chief Executive27 August 2009
Independent Review Report to UTV Media plc
Introduction
We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the 6 months ended 30 June 2009 which comprises the Group Income Statement, Group Statement of Comprehensive Income, Group Balance Sheet, Group Statement of Changes in Equity, Group Cash Flow Statement and the related notes 1 to 12. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the company in accordance with guidance contained in ISRE 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our work, for this report, or for the conclusions we have formed.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
Scope of Review
We conducted our review 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. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the 6 months ended 30 June 2009 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
Ernst & Young LLPBelfast27 August 2009
vendorRelated Shares:
WLG.L