22nd Mar 2011 07:00
UTV Media plc
("UTV" or "the Company" or "the Group")
Preliminary Results
for the year ended 31 December 2010
Financial highlights on continuing operations *
* Group revenue up by 7% to £120.2m (2009: £112.1m) * Group operating profit up by 8% to £25.9m (2009: £24.0m) * Record pre-tax profits up by 17% to £21.1m (2009: £18.1m)
* £17.0m reduction in net debt over 12 months to £71.5m (2009: £88.5m), a 34%
reduction over the last 2 years * Net finance costs down by 19% to £4.7m (2009: £5.8m) * Impairment charge of £35.0m recognised on Local Radio licences
* Diluted adjusted earnings per share from continuing operations up by 15% to
16.70p (2009: 14.49p)
* Proposed final dividend of 3.00p (2009: 2.00p) resulting in a full year
dividend up by 100% to 4.00p (2009: 2.00p)
* As appropriate, references to profit include associate income but exclude exceptional items
Operational highlights and prospects
* Continuing strong audience delivery across both Radio and Television * Radio divisions materially outperformed their markets
* GB Radio revenue, strengthened by the World Cup and Premier League content
plus the inclusion of Sport magazine, experienced significant growth in the
year * Radio Ireland delivered a robust performance in challenging market conditions * Television revenue experienced strong growth
* Greater operational flexibility created by strong cash management leading
to significant debt reduction
John McCann, Group Chief Executive, UTV Media plc, said:
"I am pleased that despite the difficult economic environment UTV achievedrecord pre tax profits, pre exceptional items, in 2010. With strong audiencesacross our platforms and significantly reduced debt we remain confident that weare well placed to meet market challenges and opportunities over the comingyear".
Key Dates
* 17 May 2011 - date of Annual General Meeting * 27 May 2011 - record date for payment of dividends * 15 July 2011 - payment of dividends
For further information contact:
MaitlandAnthony Silverman +44 (0) 20 7379 5151 UTV Media plcJohn McCann Group Chief Executive +44 (0) 28 90 26 2202 Norman McKeown Group Finance Director +44 (0) 28 90 26 2098 Orla McKibbin Head of Communications +44 (0) 28 90 26 2188
Chairman's Statement
Introduction
It is pleasing to note that, despite the macroeconomic environment, yourcompany achieved record pre tax profits, pre exceptional items, in 2010.Equally pleasing is the fact that net debt was reduced by 34% over the twoyears to 31 December 2010. This debt reduction was achieved in the difficulteconomic circumstances of the past two years whilst maintaining a level ofdividend payment to our shareholders. Our Radio businesses continued to grow inimportance for the Group and accounted for 72% of pre exceptional operatingprofit in the year under review.
Results *
Operating profit in our radio divisions increased by 12% to £18.7m (2009: £16.7m) whilst television operating profit was maintained at £5.3m. New Mediaoperating profit was slightly down at £1.9m (2009: £2.0m). Group operatingprofit therefore, was £1.9m higher at £25.9m (2009: £24.0m). After charging netinterest of £4.7m (2009: £5.8m), group profit before tax and exceptional itemswas up by 17% to £21.1m (2009: £18.1 m). The exceptional items after tax of £24.8m (2009: £2.4m) relate primarily to an accounting non-cash impairmentcharge in respect of GB radio assets.
[* As appropriate, references to Operating Profit include associate income but exclude exceptional items.]
Dividend
Our dividend policy over the past two years has been shaped by the need to becautious in recessionary times and by our stated objective to reduce our debt.While continuing to drive down debt and remaining prudent during uncertaineconomic conditions, nevertheless we believe that it is now appropriate toincrease the dividend to partly reflect our improved profit and debtperformance. Therefore, your Board is recommending a final dividend of 3.00p(2009: 2.00p) making a total for the year of 4.00p (2009: 2.00p), an increaseof 100%. The final dividend will be paid on 15 July 2011 to all shareholders onthe Register at the close of business on 27 May 2011.
Radio *
Our radio divisions accounted for 60% of group turnover and 72% of groupoperating profit in 2010. Total radio operating profit of £18.7m (2009: £16.7m)comprised £11.7m (2009: £9.7m) from our GB division and £7.0m (2009: £7.0m)from our Ireland division.Within our GB division talkSPORT, including the first full year of Sportmagazine, delivered operating profits up by 36% to £6.4m (2009: £4.7m) onturnover up by 27% to £28.2m (2009: £22.2m). This compares to a national radioadvertising market which was up by 6% in the year. talkSPORT's creditablegrowth in turnover was enhanced by the World Cup, but its ability to deliverstrong male demographic audiences year round is its key attraction toadvertisers. Our focus on providing quality programming was evident both in a24% improvement year on year in listenership and in our winning the rights totwo Premier League Football packages for the three years commencing 2010/11,which should further drive audience delivery.Our local radio stations in GB also recorded an improvement in audiencedelivery, with listenership up by 10% year on year, which helped to offsetweakness in the local advertising revenue market. Operating profit at our localradio stations was up by 6% to £5.3m (2009: £5.0m) on turnover down by 1% to £21.0m (2009: £21.3m). This compares to a local radio advertising market whichwas flat in the year.The market in which our Irish radio stations operate was extremely difficult,but this was mitigated by our ability to offer national advertisers a packagecomprising our leading stations in key urban areas. Indeed, the listenership ofthe local radio stations for which we sell airtime overtook that of the statebroadcaster's main national radio channel for the first time. Consequently,although turnover in our Irish radio division was down by 2% at constantcurrency this was a significant outperformance of a total market which weestimate to be down by at least 10%. In sterling terms, our Irish radio revenuewas down by 6% to £23.4m (2009: £24.8m). Strenuous efforts to further reducecosts ensured that operating profit at our Irish radio division was maintainedat £7.0m.Television
The television advertising market enjoyed a good recovery in 2010 with theWorld Cup providing an additional stimulus which lifted ITV network by 15% inthe year. Weakness in our advertising revenue from the Republic of Irelandresulted in our television advertising revenue underperforming that of thenetwork by 11 percentage points in the first half, but this gap was closed inthe second half when we outperformed the network by 3 percentage points. Forthe year as a whole, our television advertising revenue was up by 11%, helpingto lift total television turnover to £36.7m (2009: £32.6m). Costs were alsohigher, primarily due to World Cup rights and production, and additionalbonuses and commissions on the improved revenue. As a result televisionoperating profit was flat at £5.3m.
New Media
In a highly competitive market place our New Media division developed a numberof new revenue streams which have helped mitigate the reduction in revenue to £11.2m (2009: £11.5m). A continued focus on costs has also enabled the divisionto deliver an operating profit of £1.9m (2009: £2.0m).
Impairment Review
The Wireless Group was acquired as a single asset in 2005. Accounting rulesrequired that the carrying value of intangible assets inherent within TheWireless Group - largely the radio licences held - had to be determined at thedate of acquisition and allocated on the basis of subjective forecasts for"cash generating units" within that asset, now known as UTV Radio GB. Each yearthe individual cash generating units are assessed for impairment in our groupfinancial statements. The impact of the recession has caused us to revisedownwards the growth forecasts for the local radio stations within thatdivision. Together with a higher discount rate this has resulted in thecarrying value of the local radio station's licences within Radio GB beingsubject to an impairment charge of £35.0m which reduces the carrying value to £46.1m. talkSPORT's robust performance, even in the economic downturn, has farexceeded our original forecasts but this improvement cannot be recognised inour accounts. If reviewed in totality there would have been no requirement foran impairment charge in UTV Radio GB.
Prospects *
The new year has started well for the group despite the prevailing economicuncertainty. Our GB radio division revenue is expected to be up by 3% in thefirst four months of 2011, which would be a significant outperformance of a UKmarket likely to be down by about 6%. A similarly strong outperformance of thedepressed Irish market by our Irish radio division is expected to maintainradio advertising in the four months to the end of April at the same level aslast year against a market likely to be down at least 5%. In television, wecontinue to enjoy strong growth and anticipate an 8% improvement in the firstfour months, which should be broadly in line with the market. In the sameperiod turnover in New Media is in line with last year.Overall, therefore, we expect turnover in the first four months of 2011 to beup by 2%, which would be particularly encouraging after a year of record pretax profits. The fragility of both consumer confidence and economic recoverymay lead to volatility in the advertising markets in which we operate, makingit imprudent to forecast revenue for the year as a whole. Nevertheless, thecombination of the solid foundation of the first four months trading, strongaudience delivery in each of our divisions and a continued focus on costs andcash provides some measure of confidence for 2011.
People
I wish to place on record my appreciation of the significant contribution which the Board, management and staff made to the successful outcome for the year.
John B McGuckianChairman22 March 2011Group Income Statement
For the year ended 31 December 2010
Results Results before before Exceptional Exceptional Exceptional Exceptional Items Items Total Items Items Total Notes 2010 2010 2010 2009 2009 2009 £000 £000 £000 £000 £000 £000 Continuing operations Revenue 2 120,199 - 120,199 112,079 - 112,079 Operating costs (94,556) - (94,556) (88,396) - (88,396) --------- --------- ------- ------- --------- -------- Operating profit 25,643 - 25,643 23,683 - 23,683from continuing operations before tax and finance costs Non-operational 3 - - - - (564) (564)exceptional costs Impairment of 3 - (35,000) (35,000) - - -intangible assets Share of results 216 - 216 291 - 291of associates accounted for using the equity method --------- --------- ------- --------- --------- -------- (Loss)/profit 2 25,859 (35,000) (9,141) 23,974 (564) 23,410from continuing operations before tax and finance costs Finance revenue 76 - 76 89 - 89 Finance costs (4,760) - (4,760) (5,848) - (5,848) Foreign exchange (80) - (80) (129) - (129)loss --------- --------- ------- --------- --------- -------- (Loss)/profit 2 21,095 (35,000) (13,905) 18,086 (564) 17,522from continuing operations before tax Taxation (4,666) 10,235 5,569 (3,663) (1,492) (5,155) --------- --------- ------- --------- --------- -------- (Loss)/profit 16,429 (24,765) (8,336) 14,423 (2,056) 12,367from continuing operations after tax Discontinued operations Loss from - - - (321) (299) (620)discontinued operations --------- --------- ------- --------- --------- -------- (Loss)/profit 16,429 (24,765) (8,336) 14,102 (2,355) 11,747for the year --------- --------- ------- --------- --------- -------- Attributable to: Equity holders 16,012 (24,765) (8,753) 13,491 (2,355) 11,136of the parent Minority 417 - 417 611 - 611interests --------- --------- ------- --------- --------- -------- 16,429 (24,765) (8,336) 14,102 (2,355) 11,747 ----------- ----------- ---------- ----------- ----------- -----------Earnings per Notes 2010 2009share Continuing operations Basic and diluted 5 (9.17)p 12.32p Adjusted 5 16.78p 14.49p Diluted adjusted 5 16.70p 14.49p Continuing and discontinued operations Basic and diluted 5 (9.17)p 11.67p Adjusted 5 16.78p 14.15p Diluted adjusted 5 16.70p 14.15p
Group Statement of Comprehensive Income
For the year ended 31 December 2010
2010 2009 £000 £000 (Loss)/profit for the year (8,336) 11,747 -------- -------- Other comprehensive income Exchange difference on translation of (2,933) (6,214)foreign operations Actuarial gain/(loss) on defined benefit 3,043 (3,274)pension schemes Cash flow hedges: Loss arising during the year (1,167) (1,019) Less transfers to the income statement 1,471 1,857
Tax relating to other comprehensive income (878) 694
-------- --------
Other comprehensive loss for the year, net (464) (7,956) of tax
-------- -------- Total comprehensive (loss)/income for the (8,800) 3,791year, net of tax -------- -------- Attributable to: Equity holders of the parent (9,217) 3,180 Minority interests 417 611 -------- -------- (8,800) 3,791 ----------- -----------Group Balance SheetAt 31 December 2010 2010 2009 ASSETS Notes £000 £000 Non-current assets Property, plant and equipment 10,695 11,440 Intangible assets 221,856 261,030
Investments accounted for using the equity 172 137
method Deferred tax asset 9,876 14,255 ----------- ----------- 242,599 286,862 ----------- ----------- Current assets Inventories 1,741 1,469
Trade and other receivables 28,180 31,778 Cash and short term deposits 8 11,250 8,434
----------- ----------- 41,171 41,681 ----------- ----------- TOTAL ASSETS 283,770 328,543 ----------- ----------- EQUITY AND LIABILITIES
Equity attributable to equity holders of the
parent Equity share capital 55,557 55,557 Capital redemption reserve 50 50 Treasury shares (1,258) (1,258) Foreign currency reserve 9,499 12,432 Cash flow hedge reserve (581) (821) Retained earnings 54,441 63,409 ----------- ----------- 117,708 129,369 Minority interest 475 747 ----------- ----------- TOTAL EQUITY 118,183 130,116 ----------- ----------- Non-current liabilities Financial liabilities 7 74,490 88,532
Derivative financial liabilities 370 -
Pension liability 9 6,800 10,999 Provisions 970 1,060 Deferred tax liabilities 38,416 49,580 ----------- ----------- 121,046 150,171 ----------- ----------- Current liabilities Trade and other payables 32,363 36,793 Financial liabilities 7 8,254 8,374
Derivative financial liabilities 420 1,100
Tax payable 3,076 1,540 Provisions 428 449 ----------- ----------- 44,541 48,256 ----------- ----------- TOTAL LIABILITIES 165,587 198,427 ----------- ----------- TOTAL EQUITY AND LIABILITIES 283,770 328,543 ----------- -----------Group Cash Flow Statement
For the year ended 31 December 2010
2010 2009 Note £000 £000 Operating activities (Loss)/profit before tax (13,905) 16,767
Adjustments to reconcile (loss)/profit
before tax to
net cash flows from operating activities
Foreign exchange loss 80 129 Net finance costs before exceptional 4,684 5,759costs Share of results of associates (216)
(291)
Non-operational exceptional costs 35,000
873
Depreciation of property, plant and 1,636 1,816equipment Difference between pension contributions (1,156)
(867)
paid and amounts recognised in the
income statement
(Increase)/decrease in inventories (272)
159
Decrease/(increase) in trade and other 3,143 (2,198)receivables (Decrease)/increase in trade and other (3,584) 6,952payables Decrease in provisions (24) (246)
Profit from sale of property, plant and (21)
(29)equipment Share based payments 418 82 ----------- ----------- Cash generated from operations before 25,783 28,906exceptional costs Exceptional costs (549) (1,781) Tax paid (226) (279) ----------- ----------- Net cash inflow from operating 25,008 26,846activities ----------- ----------- Investing activities Interest received 76 96
Proceeds on disposal of property, plant 151
111and equipment Purchase of property, plant and (1,159) (2,697)equipment
Dividends received from associates 181
227
Outflow on acquisition of subsidiary (13) (154)undertaking
Outflow on acquisition of joint ventures (69)
-
Acquisition of trade and net assets - (217) ----------- ----------- Net cash flows from investing activities (833) (2,634) ----------- ----------- Financing activities Borrowing costs (3,021) (3,822) Swap cost (1,471) (1,857) Dividends paid to equity shareholders (2,851)
(1,911)
Dividends paid to minority interests (689) (457) Repayment of borrowings (13,233) (16,765) Rights issue - (50) ----------- ----------- Net cash flows used in financing (21,265) (24,862)activities ----------- ----------- Net increase/(decrease) in cash and cash 2,910 (650)equivalents Net foreign exchange differences (94)
(196)
Cash and cash equivalents at 1 January 8,434 9,280 ----------- ----------- Cash and cash equivalents at 31 December 8 11,250 8,434 ----------- -----------
Group Statement of Changes in Equity
For the year ended 31 December 2010
Equity Capital Foreign Cashflow Share share redemption Treasury currency hedge Retained holder Minority capital reserve shares reserve reserve earnings equity interest Total £000 £000 £000 £000 £000 £000 £000 £000 £000 At 1 January 55,557 50 (1,258) 18,646 (1,455) 56,475 128,015 593 128,6082009 ------ --------- ------- ------- -------- ------- ------ ------ ------- Profit for the - - - - - 11,136 11,136 611 11,747year Other - - - (6,214) 634 (2,376) (7,956) - (7,956)comprehensive (loss)/income in the year ------ --------- ------- ------- -------- ------- ------ ------ ------- Total net - - - (6,214) 634 8,760 3,180 611 3,791comprehensive income/(loss) in the year Share based - - - - - 82 82 - 82payment Equity dividends - - - - - (1,908) (1,908) (457) (2,365)paid ------ --------- ------- ------- -------- ------- ------ ------ ------- At 31 December 55,557 50 (1,258) 12,432 (821) 63,409 129,369 747 130,1162009 ------ --------- ------- ------- -------- ------- ------ ------ ------- Loss for the - - - - - (8,753) (8,753) 417 (8,336)year Other - - - (2,933) 240 2,229 (464) - (464)comprehensive (loss)/income in the year ------ --------- ------- ------- -------- ------- ----- ------ ------- Total net - - - (2,933) 240 (6,524) (9,217) 417 (8,800)comprehensive income/(loss) in the year Share based - - - - - 418 418 - 418payment Equity dividends - - - - - (2,862) (2,862) (689) (3,551)paid ------ --------- ------- ------- -------- ------- ------ ------ ------- At 31 December 55,557 50 (1,258) 9,499 (581) 54,441 117,708 475 118,1832010 --------- --------- --------- --------- ---------
--------- --------- --------- ---------
Notes to the accounts
For the year ended 31 December 2010
1. Basis of preparation
The Group's financial statements consolidate those of UTV Media plc, and itssubsidiaries (together referred to as the "Group") and the Group's interest inassociates and jointly controlled entities.The Group financial statements have been prepared in accordance withInternational Financial Reporting Standards (IFRSs) as adopted by the EuropeanUnion as they apply to the financial statements of the Group for the year ended31 December 2010 and applied in accordance with the Companies Act 2006. Theaccounts are principally prepared on the historical cost basis except whereother bases are applied under the Group's accounting policies.The financial information set out in the preliminary announcement does notconstitute statutory accounts within the meaning of Section 435 of theCompanies Act 2006 in respect of the accounts for the year ended 31 December2010. The statutory accounts for the year ended 31 December 2009, upon whichthe Company's auditors have given a report which was unqualified and did notcontain a statement under section 498(2) or (3) of the Companies Act 2006, havebeen delivered to the Registrar of Companies. The statutory accounts for theyear ended 31 December 2010 have yet to be signed. They will be finalised onthe basis of the financial information presented by the directors in thispreliminary announcement and will be delivered to the Registrar of Companies indue course.
2. Revenue and segmental analysis
The Group operates in four principal areas of activity - radio in GB, radio inIreland, commercial television and new media. These four principal areas ofactivity also form the basis on which the Group is managed and reports areprovided to the Chief Executive and the Board. Discontinued operations, whichexisted in 2009, related to a number of loss making radio stations in GB whichwere identified for sale or closure.Revenue represents the amounts derived from the provision of goods and serviceswhich fall within the Group's ordinary activities, stated net of value addedtax. Revenue from Radio and Television activities is generated from advertisingand sponsorship. Revenue from New Media is generated from the provision ofinternet services. The amount of revenue derived from the sale of goods orother activities is immaterial and therefore has not been separately disclosed.Transfer prices between business segments are set on an arm's length basis in amanner similar to transactions with third parties.The following tables' present revenue and segment result information regardingthe Group's business segments for the years ended 31 December 2010 and 2009.Revenue Year ended 31 December 2010 Radio Radio New GB Ireland Television Media Total £000 £000 £000 £000 £000 Sales to third 48,944 23,359 36,655 11,241 120,199 parties Intersegmental sales 754 1,388 2,333 - 4,475 ----------- ----------- ----------- ----------- ----------- 49,698 24,747 38,988 11,241 124,674 ----------- ----------- ----------- ----------- ---------- Year ended 31 December 2009 Radio Radio New GB Ireland Television Media Total £000 £000 £000 £000 £000 Sales to third 43,173 24,823 32,544 11,539 112,079 parties Intersegmental 846 1,544 1,838 - 4,228 sales ---------- ----------- ----------- ----------- ----------- 44,019 26,367 34,382 11,539 116,307 --------- ----------- ----------- ----------- ---------- Results
Year ended 31 December 2010 Radio Radio New GB Ireland Television Media Total £000 £000 £000 £000 £000 Segment operating 11,475 6,992 5,256 1,920 25,643profit before exceptional costs ----------- ----------- ----------- ----------- Associate income 216 ----------- Profit before 25,859exceptional costs, tax and finance costs Exceptional costs (35,000) ----------- (9,141) Net finance cost (4,684) Foreign exchange loss (80) ----------- Loss before taxation (13,905) ----------- Year ended 31 December 2009 Radio Radio New GB Ireland Television Media Total £000 £000 £000 £000 £000 Segment operating 9,420 7,036 5,258 1,969 23,683profit before exceptional costs ----------- ----------- ----------- ----------- Associate income 291 ----------- Profit before 23,974exceptional costs, tax and finance costs Exceptional costs (564) ----------- 23,410 Net finance cost (5,759) Foreign exchange loss (129) ----------- Profit before taxation 17,522 ----------- 3. Exceptional items Continuing Operations Discontinued Operations Total _____________________ _____________________ ______________________ 2010 2009 2010 2009 2010 2009 £000 £000 £000 £000 £000 £000 Impairment of (35,000) - - - (35,000) -intangible assets Fundamental - (344) - (309) - (653)restructuring costs Impairment of - (220) - - - (220)investment ------- ------- ------- ------ ------- ------- (35,000) (564) - (309) (35,000) (873) ----------- ----------- ----------- -----------
----------- -----------
Impairment of intangible assets
Despite improving listenership in the GB Local Radio business and thesignificant cost savings and efficiencies achieved over the past 18 months, aslow recovery of advertising revenues in the GB local advertising market hasnecessitated a downward revision of our growth potential in this sector. Theresultant cash flows, coupled with the impact of higher discounts rates(pre-tax discount rate of 12.8% in 2010 versus 11.4% in 2009) applied thereto,has resulted in an impairment charge of £35.0m and hence a reduction in thecarrying value of Local Radio to £46.1m (2009: £81.1m).The requirement under IAS36 to treat The Wireless Group acquisition as two cashgenerating units, means that the robust performance of talkSPORT, which hasresulted in its value far exceeding our original forecasts, cannot beconsidered in conjunction with that of Local Radio. Considered in totality,there is no requirement for an impairment charge against the cost of investmentin UTV Radio GB.Year ended 31 December 2009In 2009, this fundamental restructuring continued in Radio GB, with thedisposal or closure of loss making stations. In addition, Independent NetworkNews, the provider of a news service to the radio stations in Ireland, closedat the end of October 2009. Radio Ireland has a commitment to help fund theclosure and wind-up costs of this business. Consequently, the group investedthe necessary funds in this company but immediately recognised impairment onthis investment of £220,000.
Taxation
The exceptional tax charge of £10,235,000 (2009: £1,492,000) reflects the taxcredit of £9,450,000 (2009: £69,000) on the exceptional costs outlined aboveplus the exceptional deferred tax credit of £785,000 (2009: charge of £1,561,000) due to the change in the UK corporation tax rate from 28% to 27%(2009: change in the Republic of Ireland capital gains tax rate from 22% to25%).
4. Taxation
(a) Tax on profit on ordinary activities 2010 2009 £000 £000 Current income tax: UK corporation tax on profits for (922) (482)the year Adjustments in respect of previous (128) 470years ----------- ----------- (1,050) (12) ----------- ----------- Foreign tax:
ROI corporation tax on profits for (539) (376) the year
Adjustments in respect of previous (60) (34)years ----------- ----------- (599) (410) ----------- ----------- Total current tax (1,649) (422) Deferred tax:
Origination and reversal of timing (3,442) (3,348) differences
Adjustments in respect of previous 425 232years ----------- ----------- Tax charge in the income statement on operating activities (4,666) (3,538) Tax credit arising on exceptional 9,450 79costs Exceptional deferred tax credit/ 785 (1,561)(charge) ----------- ----------- Total tax credit/(charge) 5,569 (5,020) ----------- ----------- The tax credit/(charge) in the Income Statement is disclosed as: Tax credit/(charge) on continuing 5,569 (5,155)operations Tax credit on discontinued - 135operations ----------- ----------- Tax credit/(charge) in the income 5,569 (5,020)statement ----------- ----------- Tax relating to items in the Statement of Comprehensive Income Deferred tax: Actuarial (gain)/loss on pension (821) 917schemes Revaluation of cash flow hedges (64) (223) Valuation of long term incentive 7 -plan ----------- ----------- Tax (charge)/credit in the statement (878) 694of comprehensive income ----------- -----------(b) Exceptional credit
During the year, the corporation tax rate in the UK was revised from 28% to 27%(effective from April 2011). Accordingly all the deferred tax assets andliabilities in respect in the reporting segments subject to UK corporation taxwere restated to recognise the future gains or charges thereon at this rate.This resulted in a net credit of £785,000 in 2010. In addition, £9,450,000 wasreleased from the deferred tax liability on the recognition of the impairmentof intangible assets as outlined in note 3.In 2009, the capital gains tax rate in the Republic of Ireland was revised from22% to 25%. Accordingly all the deferred tax liabilities in respect of radiolicences in the Republic of Ireland were restated to recognise the future gainsthereon at this rate. This resulted in a net charge £1,561,000 in 2009.
5. Earnings per share
Basic earnings per share are calculated based on the profit for the financialyear attributable to equity holders of the parent and on the weighted averagenumber of shares in issue during the period.Adjusted earnings per share are calculated based on the profit for thefinancial year attributable to equity holders of the parent adjusted for theexceptional items. This calculation uses the weighted average number of sharesin issue during the period.Diluted adjusted earnings per share are calculated based on profit for thefinancial year attributable to equity holders of the parent adjusted for theexceptional items. The weighted average number of shares is adjusted to reflectthe dilutive potential of the Long Term Incentive Plan.
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 2010 2009 --------------------------------- ------------------------- Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total £000 £000 £000 £000 £000 £000 Net (loss)/profit (8,753) - (8,753) 11,756 (620) 11,136attributable to equity holders Exceptional items 24,765 - 24,765 2,056 299 2,355 ------- ------- ------ ------- ------ ------ Total adjusted and 16,012 - 16,012 13,812 (321) 13,491diluted profit attributable to equity holders ----------- ----------- ----------- -----------
----------- -----------
Weighted average number of shares
2010 2009 thousands thousands
Weighted average number of shares for basic and adjusted 95,403 95,403earnings per share (excluding treasury shares) Effect of dilution of the Long Term Incentive
456 -Plan ------- ------- 95,859 95,403 ----------- ----------- Earnings per share 2010 2009
From continuing and discontinued operations
Basic and diluted (9.17)p 11.67p ----------- ----------- Adjusted 16.78p 14.15p ----------- ----------- Diluted adjusted 16.70p 14.15p ----------- ----------- From continuing operations Basic and diluted (9.17)p 12.32p ----------- ----------- Adjusted 16.78p 14.49p ----------- ----------- Diluted adjusted 16.70p 14.49p ----------- ----------- From discontinuing operations Basic and diluted - (0.65p) ----------- ----------- Adjusted and diluted adjusted - (0.34p) ----------- -----------6. Dividends 2010 2009 £000 £000 Equity dividends on ordinary shares Declared and paid during the year
Final for 2009: 2.00p (2008: 2.00p) 1,908 1,908
Interim for 2010: 1.00p (2009: 0.00p) 954 - ------ ------ Dividends paid 2,862 1,908 ----------- ----------- Proposed for approval at Annual General Meeting (not recognised as a liability at 31 December) Final dividend for 2010: 3.00p (2009: 2,862 1,9082.00p) ----------- ----------- 7. Financial liabilities 2010 2009 £000 £000 Current Current instalments due on bank loans 8,254 8,374 Non-current Non-current instalments due on bank loans 74,490 88,532 ----------- ----------- 82,744 96,906 ----------- -----------
The financial liabilities at 31 December 2010 are stated net of £419,000 (2009: £594,000) of deferred financing costs.
8. Net Debt 2010 2009 £000 £000 Bank loans (82,744) (96,906) Cash and short term deposits 11,250 8,434 ----------- ----------- (71,494) (88,472) ----------- ----------- 9. Pension schemes The IAS 19 deficit at 31 December 2009 is £6,800,000 compared with a deficit of£10,999,000 at 31 December 2009. The reduction in the deficit was primarilydriven by the strong return on the equity investments plus the increasedfunding by the company.The assets generated higher than expected return during the year resulting inan actuarial gain of £5,642,000. The liabilities reflect a further increase inlife expectancy for the participating members by the inclusion of an allowancefor future long term improvements on mortality rates which contributed to anoverall actuarial loss on the liabilities of £2,599,000.The Group funded a discretionary amount of £1,181,000 towards the actuarialdeficit in 2010 (2009: £950,000) by means of a cash transfer and has agreed tomake further payments of £1,181,000 in each year from 2011 to 2014.
10. Related party transactions
The nature of related parties disclosed in the consolidated financialstatements for the Group as at and for the year ended 31 December 2010 has notchanged. There have been no significant related party transactions in the yearended 31 December 2010.This summary has been approved by our Directors for release to the Press today 22 March 2011 and the full printed Annual Report and Accounts will be posted toShareholders and Stock Exchanges on 18 April 2011. Copies will be available tothe public at the Company's registered office Ormeau Road, Belfast BT7 1EB fromthat date.
vendorRelated Shares:
WLG.L