17th Oct 2006 11:00
Vitesse Media PLC17 October 2006 VITESSE MEDIA PLCINTERIM RESULTS Vitesse Media, the AIM-listed online, events and print media business, announcesits results for the six months ended 31 July 2006. Overview: •Underlying sales growth of nearly 25 per cent despite a tough advertising climate; overall sales up by nearly 40 per cent •Two months contribution from Blue Chip Publishing (acquired in June 2006) showing a small profit •Gross profit up 63 per cent; overall operating loss halved compared with the same time last year; loss per share reduced from 2.47p to 0.96p •Positive indicator with the level of deferred income up nearly 25 per cent to £506k over the same time last year •Net current assets up from £205k to £309k, an increase of over 50 per cent over the same time last year; cash balance at 31 July £470k (£465k at 31 January 2006) Chairman's Statement We are pleased with the progress the business has made on its path towardsprofitability; that trend will continue in the second half year which remainsthe more dominant of the two halves. Online activities continue to perform welland we are making further investment in our three major web sites,SmallBusiness.co.uk, GrowthBusiness.co.uk and GrowthCompany.co.uk. Our eventscontinue to mature and make greater financial contribution towards the business. In June we acquired Blue Chip Publishing, publisher of M & A magazine. It hasmade a small positive contribution to these figures and we remain confident thatwe can increase this contribution over the coming years by redeveloping its website and by launching events in the B2B area where we already have substantialexperience. We will be running the first ever M & A Awards in February nextyear. Our plans are well advanced to relaunch the M & A web site, to extend ourcontent management system and our customer relationship management software tothe business, improving its efficiency and enabling us to take full advantage ofall the synergies in content between the businesses. We expect this work to becompleted before the end of this financial year. The full benefits of thesedevelopments are anticipated to show through in the next two financial years. We continue to seek out appropriate acquisitions, displaying obvious synergieswith our group. Indeed, we are currently examining several possible purchases,of the same size as Blue Chip or larger. We will seek to advance only thoseacquisitions that will generate clear and demonstrable benefits for VitesseMedia shareholders. The management team has been strengthened and will drive the business forwardover the coming year by continuing its policy of acquisitive and organic growth. Consolidated profit and loss account for the six months ended 31 July 2006 Unaudited Unaudited Audited 6 months ended 6 months ended 12months ended 31 July 2006 31 July 2005 31January 2006 £'000s £'000s £'000sTURNOVER - continuing operations 1,286 1,037 2,347- acquisitions 143 - ------------ ----------- ----------- 1,429 1,037 2,347 Cost of sales (533) (486) (1,072) ------------ ----------- ----------- Gross profit 896 551 1,275 Administrative expenses- exceptional (impairment - adjustment)- exceptional (abortive acquisition costs) (28)- other (1,080) (903) (1,891) ------------ ----------- ----------- OPERATING (LOSS)/PROFIT (183) (380) (616)Interest receivable andsimilar income 5 8 13Interest payable andsimilar changes (4) (1) (3) (LOSS)/PROFIT ON ORDINARYACTIVITIES BEFORE TAXATION (182) (373) (606)Taxation - - (LOSS)/PROFIT ON ORDINARYACTIVITIES AFTER TAXATION (182) (373) (606) ============ =========== =========== EARNINGS/(LOSS) PER SHARE Basic (0.96p) (2.47p) (3.90p)Diluted (0.96p) (2.47p) (3.90p) Consolidated Balance Sheet as at 31 July 2006 Unaudited Unaudited Audited 31 July 2006 31 July 2005 31 January 2006 £'000s £'000s £'000sFIXED ASSETS Intangible assets 524 384 382Tangible assets 186 153 173 ------------ ----------- ----------- 710 537 555 ------------ ----------- -----------CURRENT ASSETS Debtors 631 547 368Cash at bank and in hand 470 404 465 ------------ ----------- ----------- 1,101 951 833CREDITORS: Amounts falling duewithin one year (792) (746) (805) ------------ ----------- ----------- NET CURRENT ASSETS 309 205 28 ------------ ----------- ----------- TOTAL ASSETS LESS CURRENTLIABILITIES 1,019 742 583 CREDITORS: Amounts falling dueafter more than one year (119) (5) (31) DEFERRED INCOME (505) (406) (255) NET ASSETS 396 331 297 ============ =========== =========== CAPITAL AND RESERVESCalled up share capital 1,894 1,513 1,595Share premium account 1,616 1,215 1,333Other reserves 104 104 104Profit and loss account (3,218) (2,501) (2,735) ------------ ----------- -----------EQUITY SHAREHOLDERS' FUNDS 396 331 297 ============ =========== =========== Consolidated cash flow statement for the six months ended 31 July 2006 Unaudited Unaudited Audited 6 months ended 6 months ended 12 months ended 31 July 2006 31 July 2005 31 January 2006 £'000s £'000s £'000s Cash flow from operatingactivities (334) (242) (355)Returns on investments andservicing of finance 1 7 10Capital expenditure (15) (57) (71)Acquisitions (220) - - ------------ ----------- -----------CASH OUTFLOW BEFORE USE OFLIQUID RESOURCES ANDFINANCING (568) (292) (416)Management of liquidresources 41 336 367Financing 491 (20) 165 ------------ ----------- -----------INCREASE/(DECREASE) INCASH IN THE PERIOD (36) 24 116 ============ =========== =========== RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Unaudited Unaudited Audited 6 months ended 6 months ended 12 months ended 31 July 2006 31 July 2005 31 January 2006 £'000s £'000s £'000sIncrease/(decrease) incash in the period (36) 24 116Cash outflow from decreasein debt and leasefinancing 11 20 35 Cash outflow/(inflow) fromchange in liquid resources (41) (336) (367) ----------- ------------ -----------CHANGE IN NET fundsresulting from cash flows (66) (292) (216) New hire purchase contract - - (50) ----------- ------------ -----------MOVEMENT IN NET funds INPERIOD (66) (292) (266) OPENING NET FUNDS 416 682 682 ----------- ------------ ----------- CLOSING NET FUNDS 350 390 416 =========== ============ =========== Notes to the Financial Statements for the six months ended 31 July 2006 Notes: 1. The financial information for each of the six month periods to 31 July isunaudited and does not constitute statutory accounts within the meaning of theCompanies Act 1985. The financial information for the period ended 31 January2006 has been extracted from the Group's statutory accounts for that year. Thesecontained an unqualified audit report which did not contain a statement undersection 237 (2) or (3) Companies Act 1985 and have been filed with the Registrarof Companies. 2. The basic loss per share of (0.96p) (six months to 31 July 2006 - (2.47p)) isbased on the loss for the period, divided by the weighted average number ofordinary shares in issue of 18,943,430 (6 months to 31 July 2006 -15,131,177).The share options are non-dilutive for the 6-month period to 31 July 2006. Inaddition to the basic and diluted loss per share shown on the face of the Profitand Loss Account, the basic and diluted loss before exceptional administrativeexpenses are shown below. Unaudited Unaudited Audited 6 months ended 6 months ended 12 months ended 31 July 2006 31 July 2005 31 January 2006 £'000s £'000s £'000s Basic before exceptionaladministrative expenses (0.96p) (2.47p) (3.90p) Diluted beforeexceptionaladministrative expenses (0.96p) (2.47p) (3.90p) 3. The accounting policies remain unchanged from those set out in the group'sstatutory accounts for the year ended 31 January 2006. 4. The interim financial statements were approved by the Board on 17th October2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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