23rd Mar 2010 07:00
UTV Media plc
("UTV" or "the Company" or "the Group")
Preliminary Resultsfor the year ended 31 December 2009
Financial highlights on continuing operations
* Group revenue down by 6% to £112.1m (2008: £119.7m) * Group operating profit is £23.7m (2008: £28.3m) * Pre-tax profits before exceptional items of £18.1m (2008: £20.7m) * 18% reduction in net debt from £107.6m to £88.5m * Annualised cost savings of £6.0m achieved in 2009 * Net finance costs down 29% to £5.8m (2008: £8.1m) * Exceptional costs before tax of £0.6m (2008: £4.5m) * Proposed final dividend of 2.00p (2008: 2.00p) resulting in a full year dividend of 2.00p (2008: 5.30p)
Operational highlights and prospects
* Continuing strong audience delivery across both Radio and Television * GB Radio and Television revenue have turned positive in the first four months of 2010, whilst the rate of decline in Irish Radio has slowed
* GB Radio expanded by the acquisition of Sport magazine which complements
the strong sports-led offering to advertisers * Valley Radio and Central Radio, which accounted for £0.6m of loss from discontinued operations, were disposed of during the year * Subsequent to the year end, greater operational flexibility has been facilitated by the renegotiation of key banking covenants at favourable market rates
John McCann, Group Chief Executive, UTV Media plc, said:
"The current, prolonged downturn is unprecedented. Despite that, I believe today's results demonstrate the robustness of UTV Media. They are also testament to the hard work in very difficult conditions of everyone in the company.
"I am particularly pleased that throughout the difficulties we have been ableto significantly improve our capital position. The reduction in net debt by 18%and cost savings ahead of target, mean that the company is in a strong positionto tackle the new financial year. I am acutely aware that any recovery is veryfragile, but I am pleased that we have seen some improvements in theadvertising market so far this year."
Key Dates
* 18 May 2009 - date of Annual General Meeting * 28 May 2010 - record date for payment of dividends * 15 July 2010 - payment of dividends
For further information contact:
Maitland +44 (0) 20 7379 5151Anthony SilvermanUTV Media plcJohn McCann Group Chief Executive +44 (0) 28 9026
2202
Norman McKeown Group Finance Director +44 (0) 28 9026
2098
Orla McKibbin Head of Communications +44 (0) 28 9026 2188Chairman's StatementIntroduction
The strong underlying performance of your company in the severest recession ina generation is evident in this report. Your company responded to theunprecedented downturn in advertising revenue across the media sector bydisposing of loss making activities, restructuring various parts of thebusiness, imposing a general pay freeze and further tightening cost control.This delivered group operating profit of £23.7m (2008 : £28.3m). Strongcashflow and strict working capital management also proved very effective, withnet debt being substantially reduced by £19.1m to £88.5m (2008 : £107.6m).Overall, and in the context of the most challenging market conditions we haveexperienced, your company emerged from 2009 with pre-tax profits beforeexceptional items from continuing operations of £18.1m (2008 : £20.7m).
Results from continuing operations
Group revenue, from continuing operations, was £112.1m (2008: £119.7m). Within this, the effect of acquisitions boosted turnover by £3.9m, while foreign exchange movements added £2.2m.
Continuing group operating profit, including associates, before exceptionalitems, was £24.0m (2008 : £28.6m), with radio operating profit of £16.7m (2008:£18.9m) accounting for 70% of the total. Television operating profit declinedto £5.3m (2008 : £7.7m) and new media operating profit was maintained at £2.0m.Net interest and finance charges were significantly lower at £5.8m (2008 : £8.1m), and we incurred a small loss on foreign exchange of £0.1m (2008 : Gain £0.3m). Pre-tax exceptional costs on continuing operations of £0.6m (2008 : £4.5m) comprised restructuring costs in GB radio and television and our share ofbusiness closure costs in radio Ireland.
Dividend
Your Board has reviewed dividend policy in light of changed credit conditionsand the economic downturn. A key priority is to realign the group financialstructure with new market norms and, consequently, to further reduce net debt.We recommend, therefore, a dividend of 2.0p (2008: 5.30p) for the year, whichwould allow most of the cash flow generated from operations to be utilised inpaying down borrowings. The dividend will be paid on 15 July 2010 to allshareholders on the Register at the close of business on 28 May 2010.
Radio
Revenue from continuing radio operations was £68.0m (2008 : £70.2 m),representing more than 60% of group turnover. Of that amount, £43.2m (2008 : £45.3m) was generated in our GB Radio division and £24.8m (2008 : £24.9m) wasderived from our Irish radio operations.With the continued deterioration of the advertising markets, we implemented afurther cost reduction plan which resulted in some redundancies and areappraisal of all expenditure. We also adopted a robust approach to radiostations which could not be brought to profitability within a reasonabletimeframe and as a result we disposed of Valleys Radio and Central Radio in ourGB Radio division. By contrast, we saw an opportunity to generate profitswithin such a timeframe and to complement our already strong sports-ledoffering to advertisers by acquiring the loss-making Sport magazine for anominal sum. This publication was quickly integrated into our existing salesoperation, its cost base was significantly reduced and revenue of £1.8m wasgenerated during the period. As we forecast in our business plan for themagazine, it made a small loss in the period of £0.3m. Overall, our GB Radiodivision delivered operating profit of £9.4m (2008 : £10.6m). On a like forlike basis, advertising revenue from our GB radio division was down by 8%.Market conditions were also difficult in the Irish radio market. Revenue of £24.8m was maintained with the favourable impact of foreign exchange movementsaccounting for £2.2m and the full year effect of the acquisition of FM104 inApril 2008, accounting for an additional £1.9m of revenue. Excluding theseelements, Irish radio advertising revenue was down by 16% on a like for likebasis. Cost reduction was also a key feature of our radio business in Ireland,mitigating the revenue downturn and contributing to an operating profit of
£7.0m (2008 : £8.0m).TelevisionConditions in the television market were difficult with turnover for thisdivision down by £5.5m to £32.5m (2008 : £38.0m). The Dublin market place wasparticularly challenging with our television advertising revenue from therefalling 33%. Again, a focus on cost control mitigated much of this downturn,but television operating profit still dropped by £2.4m to £5.3m (2008 : £7.7m).
New Media
Our new media division was not immune to the effects of the recession but delivered a very satisfactory outcome. The higher margin business of web development helped to offset some of the competitive pricing issues in broadband and telephony. Both turnover and operating profit were maintained at £11.5m and £2.0m respectively.
Cost reduction programme
I referred in last year's Report to the cost-cutting plan which we wereimplementing to counter the impact of the recession. This was executed acrossthe group in 2009 and in total we achieved cost savings of over £6.0m in theyear under review.Financing
Despite reduced profits, we achieved debt reduction of £19.1m (18%) during theyear. We also confidently managed tightening debt covenants, althoughoperational flexibility was sometimes constrained by this. Our budgets indicatefurther debt reduction in 2010 and continuing compliance with tightercovenants. However, to ensure optimal operational flexibility we have agreedterms with our banks for the continuation of covenants at current levels for2010 and thereafter on the original reducing basis, deferred by one year. Thisis in return for a modest increase in interest margin up to a maximum of 2.85%,ratcheting downwards, which your Board believes is an attractive rate in thecurrent market.ProspectsThe macroeconomic environment continues to be of concern and recovery may befragile. Uncertainty in the economy impacts negatively on advertisers'expenditure commitments and hence, the advertising market remains very shortterm.However, trading in the first few weeks of 2010 has been more encouraging withthe UK television market, in particular, showing some signs of improvement. Wehave shared in this improvement, but continuing weakness in the Irish markethas affected the overall performance of our television advertising revenuewhich, nevertheless, is expected to be up by 2% in the first four months.Softer comparatives in the second and third quarter, combined with the positiveimpact of the World Cup should provide some momentum in the next six months,though visibility on this is limited.
Greater confidence can be attached to revenue forecasts for talkSPORT in a World Cup year. Already, talkSPORT appears to be gaining some advertising and sponsorship traction and in the first four months of 2010 is expected to achieve revenue growth of 16%. talkSPORT was also successful recently in winning two exclusive Premier League broadcast rights packages and these, coupled with the World Cup and record audience figures, should ensure a stronger revenue performance in the year ahead.
The revenue decline in our local radio stations in Great Britain slowedconsiderably in the first few weeks of 2010, and the first four months isexpected to be down by 3%. Again, softer comparatives and any improvement inthe wider economy should prove to be positive for our stations during the restof the year.Revenue from Sport magazine is expected to have doubled in the first fourmonths and the publication is now achieving profit targets. Overall, revenue inour GB radio division is forecast to be up by 6% on a like for like basis inthe first few months of 2010.Our Irish radio division experienced a slower rate of decline in turnover inthe early weeks of 2010 and is expected to record a revenue reduction of 6% inthe first four months.
Revenue in our new media division has held up reasonably well in the first four months and is trading broadly in line with the previous year.
People
The severity of the recession has put enormous pressures on management and staff across the group. Redundancies, pay freezes and general cost cutting have been painful and it is to the credit of all concerned that the group has weathered the economic storm so well. I wish to thank Board, management and staff for their continuing efforts to maintain the success of the company.
John B McGuckianChairman23 March 2010Group Income StatementFor the year ended 31 December 2009 Results Results before before Exceptional Exceptional Exceptional Exceptional Items Items Total Items Items Total 2009 2009 2009 2008 2008 2008 Notes £000 £000 £000 £000 £000 £000 Continuing operations Revenue 2 112,079 - 112,079 119,670 - 119,670 Operating costs 2 (88,396) - (88,396) (91,374) - (91,374) ----- ----- ----- ----- ----- ----- Operating profit from 23,683 - 23,683 28,296 - 28,296continuing operations before tax and finance costs Non-operational exceptional - (564) (564) - (3,159) (3,159)costs Share of results of 291 - 291 260 - 260associates accounted for using the equity method ----- ----- ----- ----- ----- ----- Profit from 2 23,974 (564) 23,410 28,556 (3,159) 25,397continuing operations before tax and finance costs Finance revenue 89 - 89 382 - 382 Finance costs (5,848) - (5,848) (8,526) (1,367) (9,893) Foreign exchange (loss)/ (129) - (129) 316 - 316gain ----- ----- ----- ----- ----- ----- Profit from continuing 18,086 (564) 17,522 20,728 (4,526) 16,202operations before tax Taxation 4 (3,663) (1,492) (5,155) (4,523) (378) (4,901) ----- ----- ----- ----- ----- ----- Profit from continuing 14,423 (2,056) 12,367 16,205 (4,904) 11,301operations after tax Discontinued operations Loss from discontinued (321) (299) (620) (1,371) (669) (2,040)operations ----- ----- ----- ----- ----- ----- Profit for the year 14,102 (2,355) 11,747 14,834 (5,573) 9,261 ------ ------ ------ ------ ------ ------ Attributable to: Equity holders of the 13,491 (2,355) 11,136 14,553 (5,573) 8,980parent Minority interests 611 - 611 281 - 281 ----- ----- ----- ----- ----- ----- 14,102 (2,355) 11,747 14,834 (5,573) 9,261 ------ ------ ------ ------ ------ ------Earnings per share 2009 2008 Continuing operations Basic and diluted 5 12.32p 14.26p Adjusted and diluted adjusted 5 14.49p 20.61p
From continuing and discontinued operations
Basic and diluted 5 11.67p 11.62p Adjusted and diluted adjusted 5 14.15p 18.84pGroup Statement of Comprehensive IncomeFor the year ended 31 December 2009 2009 2008 £000 £000 Profit for the year 11,747 9,261 ------ ------ Other comprehensive income
Exchange difference on translation of foreign operations (6,214) 17,293
Actuarial loss on defined benefit pension schemes (3,274) (7,813) Cash flow hedges: Loss arising during the year (1,019) (1,855) Less transfers to the income statement 1,857
(1,005)
Tax relating to other comprehensive income 694 2,535 ------ ------ Other comprehensive (loss)/income for the year, net of tax (7,956) 9,155 ------ ------ Total comprehensive income for the year, net of tax 3,791 18,416 ------ ------ Attributable to: Equity holders of the parent 3,180 18,135 Minority interests 611 281 ------ ------ 3,791 18,416 ------ ------Group Balance SheetAt 31 December 2009 2009 2008 Notes £000 £000 ASSETS Non-current assets Property, plant and equipment 11,440 11,581 Intangible assets 261,030 270,542
Investments accounted for using the equity method 137
151 Deferred tax asset 14,255 16,783 ------ ------ 286,862 299,057 ------ ------ Current assets Inventories 332 491 Trade and other receivables 32,915
30,895
Cash and short term deposits 8,434 9,280 ------ ------ 41,681 40,666 ------ ------ TOTAL ASSETS 328,543 339,723 ------ ------ 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 12,432 18,646 Cash flow hedge reserve (821) (1,455) Retained earnings 63,409 56,475 ------ ------ 129,369 128,015 Minority interest 747 593 ------ ------ TOTAL EQUITY 130,116 128,608 ------ ------ Non-current liabilities Financial liabilities 7 88,532 108,267 Pension liability 10,999 8,593 Provisions 1,060 1,100 Deferred tax liabilities 49,580 49,037 ------ ------ 150,171 166,997 ------ ------ Current liabilities Trade and other payables 36,793 31,612 Financial liabilities 7 8,374 8,650 Derivative financial liabilities 1,100 1,958 Tax payable 1,540 1,556 Provisions 449 342 ------ ------ Net current liabilities 48,256 44,118 ------ ------ TOTAL LIABILITIES 198,427 211,115 ------ ------ TOTAL EQUITY AND LIABILITIES 328,543 339,723 ------ ------Group Cash Flow StatementFor the year ended 31 December 2009 2009 2008 £000 £000 Operating activities Profit before tax 16,767 13,575
Adjustments to reconcile profit before tax to net cash flows
from operating activities Foreign exchange loss/(gain) 129 (316) Net finance costs before exceptional costs 5,759
8,144
Share of results of associates (291)
(260)
Non-operational exceptional costs 873
5,245
Depreciation of property, plant and equipment 1,816
1,879
Difference between pension contributions paid and amounts (867) (1,435) recognised in the income statement
Decrease in inventories 159 6
(Increase)/Decrease in trade and other receivables (2,772)
417
Increase in trade and other payables 6,952 2,095 Increase in provisions 328 113
Profit from sale of property, plant and equipment (29)
(5) Share based payments 82 (417) ------ ------ Cash generated from operations before exceptional 28,906 29,041costs Exceptional costs (1,781) (1,492) Tax paid (279) (443) ------ ------ Net cash inflow from operating activities 26,846 27,106 ------ ------ Investing activities Interest received 96 409
Proceeds on disposal of property, plant and equipment 111
16
Purchase of property, plant and equipment (2,697)
(1,963)
Dividends received from associates 227
154
Proceeds from disposal of subsidiary undertaking and -
140business units Outflow on acquisition of subsidiary undertaking (154)
(46,108)
Acquisition of trade and net assets (217) (100) ------ ------ Net cash flows from investing activities (2,634) (47,452) ------ ------ Financing activities Borrowing costs (3,822) (10,875) Swap (cost)/income (1,857) 1,005 Acquisition of treasury shares -
(518)
Dividends paid to equity shareholders (1,911)
(7,877)
Dividends paid to minority interests (457)
- Repayment of borrowings (16,765) (51,806) Proceeds from borrowings - 41,705 Rights issue (50) 47,529 ------ ------ Net cash flows used in financing activities (24,862) 19,163 ------ ------ Net decrease in cash and cash equivalents (650)
(1,183)
Net foreign exchange differences (196)
226
Cash and cash equivalents at 1 January 9,280 10,237 ------ ------ Cash and cash equivalents at 31 December 8,434 9,280 ------ ------Group Statement of Changes in EquityFor the year ended 31 December 2009
Year ended 31 December 2009
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 Total net - - - (6,214) 634 8,760 3,180 611 3,791comprehensive income/(loss) in the year Dividends - - - - - - - (457) (457)paid to minority shareholders Share based - - - - - 82 82 - 82payment Dividends - - - - - (1,908) (1,908) - (1,908)paid to equity shareholders ----- ----- ----- ----- ----- ----- ----- ----- ----- At 31 55,557 50 (1,258) 12,432 (821) 63,409 129,369 747 130,116December 2009 ----- ----- ----- ----- ----- ----- ----- ----- -----
Year ended 31 December 2008
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 8,086 50 (740) 1,353 902 61,405 71,056 312 71,3682008 Total net - - - 17,293 (2,357) 3,199 18,135 281 18,416comprehensive income/(loss) in the year Acquisition - - (518) - - - (518) - (518)of treasury shares Rights issue 49,869 - - - - - 49,869 - 49,869proceeds Rights issue (2,398) - - - - - (2,398) - (2,398)costs Share based - - - - - (222) (222) - (222)payment Dividends - - - - - (7,907) (7,907) - (7,907)paid to equity shareholders ----- ----- ----- ----- ----- ----- ----- ----- ----- At 31 55,557 50 (1,258) 18,646 (1,455) 56,475 128,015 593 128,608December 2008 ----- ----- ----- ----- ----- ----- ----- ----- -----
Notes to the Group Financial Statements
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 2009 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 December2009 or Section 240 of the Companies Act 1985 in respect of the accounts forthe year ended 31 December 2008. The statutory accounts for the year ended 31December 2008, upon which the Company's auditors have given a report which wasunqualified and did not contain a statement under section 237(2) or (3) of theCompanies Act 1985, have been delivered to the Registrar of Companies. Thestatutory accounts for the year ended 31 December 2009 have yet to be signed.They will be finalised on the basis of the financial information presented bythe directors in this preliminary announcement and will be delivered to theRegistrar of Companies in due 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 relateto a number of loss making radio stations in GB which were identified for saleor 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 2009 and 2008.RevenueYear ended 31 December 2009 Radio Radio New GB Ireland Television Media Total £000 £000 £000 £000 £000 Sales to third parties 43,173 24,823 32,544 11,539 112,079 Intersegmental sales 846 1,544 1,838 - 4,228 ------ ------ ------ ------ ------ 44,019 26,367 34,382 11,539 116,307 ------ ------ ------ ------ ------Year ended 31 December 2008 Radio Radio New GB Ireland Television Media Total £000 £000 £000 £000 £000 Sales to third parties 45,287 24,870 38,001 11,512 119,670 Intersegmental sales 1,005 1,173 1,317 - 3,495 ------ ------ ------ ------ ------ 46,292 26,043 39,318 11,512 123,165 ------ ------ ------ ------ ------ResultsYear ended 31 December 2009 Radio Radio New GB Ireland Television Media Total £000 £000 £000 £000 £000 Segment profit (operating profit before 9,420 7,036 5,258 1,969 23,683exceptional costs) ------ ------ ------ ------ Associate income 291 Exceptional costs (564) Net finance cost (5,759) Foreign exchange loss (129) ------ Profit before taxation 17,522 ------Year ended 31 December 2008 Radio Radio New GB Ireland Television Media Total £000 £000 £000 £000 £000 Segment profit (operating profit before 10,646 8,028 7,650 1,972 28,296exceptional costs) ------ ------ ------ ------ Associate income 260 Exceptional costs (4,526) Net finance cost (8,144) Foreign exchange gain 316 ------ Profit before taxation 16,202 ------3. Exceptional items Continuing Discontinued Operations Operations Total _____________ _____________ ____________ 2009 2008 2009 2008 2009 2008 £000 £000 £000 £000 £000 £000 Fundamental restructuring costs (344) (2,859) (309) (719) (653) (3,578) Impairment of investment (220) (300) - - (220) (300) ------ ------ ------ ---- ---- ------ (564) (3,159) (309) (719) (873) (3,878) ------ ------ ------ ----- ---- ------
Fundamental restructuring costs
In 2008, the Group undertook a review and fundamental restructuring of itsoperations. This resulted in the disposal or closure of radio stations; theconsolidation of operations in both GB and Ireland; and the rationalisation ofthe television operations in line with the reduction in local programming hoursintroduced by Ofcom. In 2009, this fundamental restructuring continued in RadioGB, with the further disposal or closure of loss making stations.
Impairment of investments
In 2008 Channel 4 cancelled its plans to invest further in a new digital radio platform and thus the 4 Digital consortium which it led. Following this decision, in 2008 UTV wrote off its 10% investment in the 4Digital.
Independent Network News, the provider of a news service to the radio stationsin Ireland, closed at the end of October 2009. Radio Ireland has a commitmentto help fund the closure and wind-up costs of this business. Consequently, thegroup invested the necessary funds in this company but immediately recognisedimpairment on this investment.
Exceptional finance charges of £1,367,000 in 2008 relate to costs incurred on the financing of the acquisition of FM104 in April 2008 and the deferred financing costs in respect of the original debt facilities as part of the refinancing of the Group debt facilities in July 2008.
The exceptional tax charge of £1,492,000 (2008: charge of £378,000) is explained within note 4.
4. Taxation
(a) Tax on profit on ordinary activities
2009 2008 £000 £000 Current income tax: UK corporation tax on profits for the year (482)
(1,090)
Adjustments in respect of previous years 470
800 ------ ------ (12) (290) ------- ------ Foreign tax: ROI corporation tax on profits for the year (376)
(764)
Adjustments in respect of previous years (34)
- ------ ------ (410) (764) ------ ------ Total current tax (422) (1,054) Deferred tax: Origination and reversal of timing differences (3,348)
(2,931)
Adjustments in respect of previous years 232
- ------ ------
Tax charge in the income statement on operating activities (3,538) (3,985)
Tax credit arising on exceptional costs 79
991
Exceptional deferred tax (charge)/credit (1,561) (1,319) ------ ------ Total tax (charge)/credit (5,020) (4,313) ------ ------
The tax charge in the Income Statement is disclosed as: Tax expense on continuing operations (5,155)
(4,901)
Tax credit on discontinued operations 135
588 ------ ------ Tax charge in the income statement (5,020) (4,313) ------ ------
Tax relating to items in the Statement of Comprehensive
Income Deferred tax: Actuarial gain on pension schemes 917
2,193
Revaluation of cash flow hedges (223)
732
Valuation of long term incentive plan - (195) ------ ------ Tax credit/(charge) in the statement of comprehensive income 694 2,730 ------ ------(b) Exceptional credit
During the year, the capital gains tax rate in the Republic of Ireland wasrevised from 22% to 25% (2008: from 20% to 22%). Accordingly all the deferredtax liabilities in respect of radio licences in the Republic of Ireland wererestated to recognise the future gains thereon at this rate. This resulted in anet charge of £1,561,000 (2008: £1,117,000).
In 2008, the deferred tax was adjusted to reflect the phasing out of industrial building allowances in the UK. This resulted in an exceptional charge of £ 202,000 as a result of temporary differences in respect of ACA's.
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. The weighted average number of ordinary shares forthe year ended 31 December 2008 reflects the bonus element of the 2 for 3rights 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 £000 £000 £000 £000 £000 £000 Net profit 11,756 (620) 11,136 11,020 (2,040) 8,980attributable to equity holders Exceptional items 564 309 873 4,526 719 5,245 Taxation relating to (69) (10) (79) (941) (50) (991)above items Exceptional tax 1,561 - 1,561 1,319 - 1,319charge ------ ------ ------ ------- ------ ------ Total adjusted and 13,812 (321) 13,491 15,924 (1,371) 14,553diluted profit attributable to equity holders ------ ------ ------ ------- ------ ------
Weighted average number of shares
2009 2008 thousands thousands
Weighted average number of shares for basic and adjusted 95,403 77,274 earnings per share (excluding treasury shares)
------ ------ Earnings per share 2009 2008
From continuing and discontinued operations
Basic 11.67p 11.62p ------ ------ Adjusted and diluted adjusted 14.15p 18.84p ------ ------ From continuing operations Basic 12.32p 14.26p ------ ------ Adjusted and diluted adjusted 14.49p 20.61p ------ ------ From discontinuing operations Basic (0.65p) (2.64p) ------ ------ Adjusted and diluted adjusted (0.34p) (1.77p) ------ ------6. Dividends 2009 2008 £000 £000
Equity dividends on ordinary shares Declared and paid during the year Final for 2008: 2.00p (2007: 8.30p) 1,908
4,759
Interim for 2009: 0.00p (2008: 3.30p) - 3,148 --- ---- Dividends paid 1,908 7,907 ------ --------
Proposed for approval at Annual General Meeting (not recognised as a liability at 31 December) Final dividend for 2009: 2.00p (2008: 2.00p) 1,908 1,908 ------ -------7. Financial Liabilities 2009 2008 £000 £000 Current Current instalments due on bank loans (8,374) (8,650) Non-current Non-current instalments due on bank loans (88,532) (108,267) ------ ------ Total (96,906) (116,917) ------ ------
The financial liabilities at 31 December 2009 are stated net of £594,000 (2008: £786,000) of deferred financing costs.
8. Net Debt 2009 2008 £000 £000 Bank loans (96,906) (116,917) Cash and short term deposits 8,434 9,280 ------ ------ Net Debt (88,472) (107,637) ------ ------9. Pension schemesThe IAS 19 deficit at 31 December 2009 is £10,999,000 compared with a deficitof £8,593,000 at 31 December 2008. The increase in the deficit partly reflectsa substantial increase in the assumption for long term price inflation from thestart of the year from 2.9% per annum to 3.6% per annum, as indicated bychanges in the relative yields of long dated fixed interest and index linkedgilts. This increased the projected benefit payments from the Scheme. This wasfurther impacted by the decrease in the liability discount rate of 6.25% perannum to 5.70% per annum. The discount rate was established using a consistentapproach on both dates, based on the yields available from corporate bonds withan appropriate duration to the Scheme's liabilities.
There was an actuarial gain on the assets as they produced a slightly positive return during the year.
These movements were partially offset by a payment of £950,000 to the UTVScheme over and above normal funding during the period. In addition to thisduring the year the Group transferred certain properties to the Scheme andentered into a five year lease of those properties at an annual rent of £92,000per annum. The Group and the Trustees of the UTV Scheme have also entered intoan agreement which provides both parties with an option to effect a transfer ofthe properties from the UTV Scheme to the Group at the end of the lease termfor consideration of £1,450,000. For accounting purposes these transactions aretreated as part of the schedule of contributions and hence are accounted for ona cash basis, with no de-recognition of the properties or recognition of anyfuture liabilities in the Group's financial statements.
The Group has agreed to fund £1,181,000 each year from 2010 to 2014 in addition to normal contributions.
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 2008 has notchanged. There have been no significant related party transactions in the yearended 31 December 2009.
vendorRelated Shares:
WLG.L