26th Oct 2006 07:00
Trading update The Board is pleased to announce a trading update for the year ended 30September 2006. The key financial parameters are expected to be as follows: -- Profit after tax increased 400% to £2.5m (2005: £0.5m) * -- Gross profit increased 75% to £4.7m (2005: £2.7m) -- Cash balances at the year end over £5.2m (2005: £2.8m) -- Consolidated net assets of £17.3m (2005: £14.8m) -- Earnings per share of 0.9 pence (2005: 0.2 pence) -- Cash per share of 1.8 pence (2005: 1.0 pence) * Although trading remained strong in the second half of 2006, profits wereadversely impacted by a weakening in the US dollar and by one-off costs. Thecombined affect was approximately £0.2 million. Commenting on today's announcement, Justin Drummond, CEO, said: "This is an excellent set of results; profit after tax has increased 400% in oneyear and the business now has in excess of £5 million of cash for furtherexpansion and acquisitions. Our media and advertising businesses have performed very strongly during 2006and are now well placed to grow both organically and via acquisition". Strategy going forward The Board is proposing to change its name to Media Corporation plc at anExtraordinary General Meeting to be held at the Group's registered office on 26October 2006. This reflects the fact that the Group generates its entireoperating profit from its portals and advertising businesses. Furthermore, it isthe Board's intention to make an appropriate media related non-executive boardappointment. In addition, the Board can confirm that it is seeking a buyer for its online andmobile gaming business, incorporating the www.casino.co.uk brand. The Boardbelieves that the recent changes in US regulations are extremely positive forthe valuation of both Casino.co.uk and mobile gaming business since thesebusinesses have no US customers and derive over 95% of their revenues from theUK market. It is anticipated that the sale proceeds could be significant andwould enable the Company to accelerate the growth of the media and advertisingbusiness further. The Board is still evaluating the implications of the recent US anti-gaminglegislation and has developed new functionality for the international searchengine which allows advertisers to exclude US visitors from viewing theirlistings. The traffic and click through rates to the Group's gaming related searchmarketing sites have shown no reliable pattern since 30 September 2006. It isanticipated that a trend should be evident by the end of November 2006. The Board will continue to monitor the situation and update shareholdersaccordingly. \* T Enquiries: Justin Drummond, CEO, 020 7618 9000 Paul Tuson, Group Finance Director, 020 7618 9000 Trevor Phillips, Holborn PR, 020 7929 5599 \* T Copyright Business Wire 2006Related Shares:
MDC.L