RNS Number : 8040X
Local Radio Company PLC (The)
30 June 2008
30 June 2008
THE LOCAL RADIO COMPANY PLC
(the "Local Radio Company" or the "Company)
Interim results for the six months to 31st March 2008 ("the Period")
Highlights
* Launch of Jazz FM in a licencing agreement with Guardian Media Group
* Significant restructuring of and reduction in central overhead costs following
disposal of seven loss-making stations
* Like for like revenue from continuing operations up by 7% to £8 million (H1 07
£7.4million)*
* Gross profit from continuing operations up 6% to £5.9 million (H1 07 £5.5
million)*
* Continued growth in audience and hours across the Local Radio Company's stations
* First Radio Sales increased commission revenues by 12% to £2.25 million
* Revenues from newly established web business have grown substantially
* Portsmouth FC have stated their intention to exercise their option to increase their
stake in local JV for £950,000 in September
08
*figures relate to same continuing business in 08 and 07
Richard Wheatly, Executive Chairman of The Local Radio Company Plc, said:
"I am delighted to announce that we have signed a licencing agreement with Guardian Media
Group to broadcast Jazz FM on DAB, and
through the internet and digital television. This represents a major opportunity for us to
develop a new business in a market segment which
is not currently being served by any UK radio broadcaster at low risk and with minimal cash
investment. We are currently working with GMG
and expect to begin broadcasting in late autumn."
"Despite the difficult advertising environment in the radio industry our underlying
business again continues to outperform the market
across key operational measures. We have taken a number of major steps to improve operating
performance, including the disposal of
non-performing stations and continue to review all of our options in a consolidating market
place to optimise our portfolio of stations.However, although our new online business continues to perform well the prospects for the
advertising market as a whole remain uncertain in
the current economic climate."
Enquiries
Richard Wheatly/Alistair Mackenzie Tel: +44 (0) 1494 688205
The Local Radio Company Plc
www.thelocalradiocompany.com
John Craven/Michael Burt Tel: +44 (0) 20 7426 9000
Landsbanki Securities (UK) Limited
Michael Oke/Andy Mills Tel: +44 (0) 20 7321 0000
Aura Financial
www.aura-financial.com
Chairman's Statement
Despite the difficult advertising environment in the radio industry our underlying
business again continues to outperform the market
across key operational measures. We have taken a number of major steps to improve operating
performance, including the disposal of
non-performing stations and continue to review all of our options in a consolidating market
place to optimise our portfolio of stations.However, although our new online business continues to perform well the prospects for the
advertising market as a whole remain uncertain in
the current economic climate.
Acquisition of Jazz FM franchise
I am delighted to announce that we have signed a three year licencing agreement with
Guardian Media Group ("GMG") to broadcast Jazz FM
on DAB, the internet and digital television. This represents a major opportunity for us to
develop a new business in a market segment which
is not currently being served by any UK radio broadcaster at very low risk. We are currently
working with GMG and expect to begin
broadcasting in late autumn.
Our previous success in developing and building the Jazz FM brand and our ability to use
existing Local Radio Company infrastructure to
rapidly create a new radio station without significant additional costs means we are confident
that Jazz FM will provide a significant
source of new revenues and future profits and represents a unique value creation opportunity
for our shareholders.
Under the agreement GMG will assign to The Local Radio Company the rights to provide a
Jazz FM service on the London, North West and
West Midlands digital multiplexes as well as the rights to manage the Jazzfm.com website and
exploit the Jazz FM brand into a wide range of
Jazz related products and services. In addition, we will be extending digital coverage of Jazz
FM nationally through carriage on Sky TV. At
its discontinuation, The Jazz, a national DAB service had a total weekly audience of 407,000,
listening for over 2 million hours (source:
Rajar 2008) whilst Jazz FM had a total weekly audience of 1,024,000 with over 5 million
listening hours when it was sold by the current
Local Radio Company management in 2002 (source: Rajar Q2 2002).
Market outperformance
Total radio advertising revenue for the Local Radio Company was characterised by further
instability during the period. Overall
improvements in the last few months of 2007 were followed by revenue declines in the first
three months of 2008 as the widespread economic
uncertainty filtered down to the radio industry. Nevertheless, we have still managed to grow
our revenues by 7% from continuing operations
on a like for like basis despite these difficult market conditions. In the quarter to June
2008 the market has deteriorated further and
revenues for the period are likely to decline by 6% from continuing operations, a performance
which we expect to be ahead of the market.
Financial performance
In the six months to March turnover was £8m from continuing activities following the sale
of seven loss making stations (Dune FM, Vale
FM, Ivel FM, Brunel FM, Bath FM, 3TR and Pennine FM). This is 7% ahead of revenues for the
same twenty one stations last year. Due to
accounting rules, the profit and loss account for the Period includes both continuing and
discontinued activities as the disposals took
place after the end of the period. Therefore, the operating loss of £573,000 includes central
overheads for both continuing and discontinued
operations and investments in web activities. We have produced below pro forma numbers showing
revenue, cost of sales and gross profit on a
continuing and discontinued basis for the Company as this provides a more accurate picture of
the underlying performance of the Company's
businesses.
6 months to 31 March 08 6 months to 31 March 07 12 months to 30 September
07
Continuing Discontinued Continuing Discontinued Continuing
Discontinued
£'000 £'000 £'000 £'000 £'000
£'000
Revenue 7960 1213 7414 1309 15530 2536
Cost of Sales (2082) (368) (1885) (354) (3900) (581)
Gross Profit 5878 845 5529 955 11630 1955
This is the first time the group has prepared its financial statements in accordance with
IFRS Previous statements were prepared in
accordance with UK GAAP. This impacts both the way that discontinued activities are shown,
depressing group turnover, the treatment of
goodwill, under which there was a £7.95m charge in the first six months of last year and
brings in charges for share based payments and
untaken holidays. There is a reconciliation of prior results at Note 5.
Audience growth
Congratulations in this difficult market go to our programmers who, at a time of record
and growing BBC audience share, continue to grow
our total audiences. In the latest survey results we recorded 920,000 listeners per week
listening for 7.611 million hours (Rajar Q1 08)
compared to 907,000 listeners per week listening for 7.582 million hours (Rajar Q1 07), By
contrast, total local commercial listening has
fallen by 4% over this same period. I am also pleased to report that our station, Silk FM, won
the Sony Gold Award for small station of the
year, the second year running that one of our stations has won this prestigious accolade.
Operational developments
Our Joint Venture with Portsmouth Football Club ("PFC"), involving our stations in
Portsmouth, Chichester and the Isle of Wight
continues to make good progress. The project has gained added impetus from the Club's
outstanding achievement in winning the FA Cup Final in
May and it is PFC's stated intention to exercise their option to a further 24% shareholding in
the Joint Venture for £950,000 in September
2008, taking their total shareholding to 50% following their acquisition of a 26% stake for
£1 million in September 2007.
As part of our continuing review of our portfolio of stations the Board today announces
the disposal of six unprofitable stations; Bath
FM, Brunel FM, 3TR, Ivel FM, Vale FM and Pennine FM for nominal amounts. This follows the
disposal of Dune FM for a nominal sum, as
announced on 6 June 2008.
The seven stations which have been sold recorded a loss of £443,000 before central costs
during the period. Their disposal enables us
to significantly reduce central costs which will place the Company in a stronger position to
take advantage of opportunities that arise. We
will continue to review our portfolio of stations as appropriate.
Local Radio online offering
The Group's new combined radio and web based sell continues to grow in popularity with
national and local advertisers. As a result, we
have invested further in this new revenue stream during the period, incurring overheads of
over £150,000 and are investing £120,000 in
capital expenditure. We saw web revenues grow significantly from October to March and this has
continued in May and June. We expect online
revenues to have reached 5% of turnover by the end of the calendar year.
First Radio Sales
First Radio Sales, the airtime sales company representing 134 stations across the UK, in
which the Group has a 50% share, performed
strongly in the first six months of the year. Commission revenues increased by 12% to £2.25
million representing its best ever six monthly
revenues. Its revenues have fallen in the quarter to June but its year to date position is
still well ahead of last year.
Richard Wheatly
Executive Chairman
Consolidated unaudited interim income statement for the period to 31 March 2008
Unaudited Unaudited
6 months to 6 months to 12 months to
31 March 2008 31-Mar-07 30-Sep-07
Note £'000 £'000 £'000
GROUP REVENUE 7,960 8,703
18,046
Cost of sales (2,082) (2,238)
(4,480)
________ ________
________
GROSS PROFIT 5,878
6,465 13,566
Administrative expenses (6,653) (16,080)
(23,813)
Profit on sale of subsidiary - - 795
undertaking
Share of operating profit in 233 161 300
Joint Venture
Share of operating loss in (31) (55) (97)
associates
________ ________ ________
LOSS ON OPERATIONS (573) (9,509)
(9,249)
Interest receivable 46 28
62
Interest payable (1) (8)
(9)
LOSS ON CONTINUING ACTIVITIES (528) (9,489) (9,196)
BEFORE TAXATION
Tax on loss 2 - - -
________ ________ ________
LOSS FOR THE PERIOD ON (528) (9,489) (9,196)
CONTINUING ACTIVITIES
Profit/(Loss) from (443) 7 7
discontinued activities
________ ________ ________
LOSS FOR THE PERIOD (971) (9,482) (9,189)
Attributable to:
Equity holders (931) (9,463) (9,150)
Minority interest (40) (19) (39)
________ ________ ________
Loss per share in pence 3
Basic and diluted (1.29)p (14.19)p (13.19)p
Consolidated statement of changes in equity for six months ended 31st March 2008
Share Share Other Retained Total Minority
Total
Capital Premium Reserves Earnings Interest
Equity
£'000 £'000 £'000 £'000 £'000 £'000
£'000
Balance at 31 Sept 2007 2,880 47,676 450 (34,152) 16,854 13
16,867
Changes in accounting policy (339) (339)
(339)
_____ ______ _____ _______ ______ ______
______
Restated balance 2,880 47,676 450 (34,491) 16,515 13
16,528
Changes in equity for period
Loss for the period (931) (931)
(931)
Minority interest (40)
(40)
Write off of Share Premium (47,637) 47,637
account
Provision share based payments 39 39
39
Share Premium write off costs (39) (39)
(39)
_____ ______ _____ ______ ______ ______
______
Balance at 31 March 2008 2,880 nil 489 12,215 15,584 (27)
15,557
Consolidated unaudited interim balance sheet as at 31 March 2008
Note UnauditedAt 31 March 2008 Unaudited At 31
March 2007 At 30 September 2007
£*000 £*000 £*000
£*000 £*000 £*000
NON-CURRENT ASSETS
Intangible assets 10,457
10,562 10,457
Property, plant and equipment 1,548
1,629 1,713
Investment in joint venture 2,451 2,579
2,568
Investments in Associates 47 120
78
Total Investments 2,498
2,699 2,646
______
______ _______
TOTAL NON-CURRENT ASSETS 14,503
14,890 14,816
CURRENT ASSETS
Trade and other receivables 2,758 3,370
3,151
Cash and cash equivalents 2,032 ______ 1,835
_____ 2,468 _____
TOTAL CURRENT ASSETS 4,790
5,205 5,619
______
______ ______
TOTAL ASSETS 19,293
20,095 20,435
LIABILITIES
NON-CURRENT LIABILITIES
Bank Loans -
19 -
______
______ ______
TOTAL NON CURRENT LIABILITIES -
19 -
CURRENT LIABILITIES
Trade and other payables 1,758 2,127
2,476
Short-term provisions 1,978 1,803
1,431
______
_______ ______
TOTAL CURRENT LIABILITIES 3,736
3,930 3,907
______
______ ______
TOTAL LIABILITIES 3,736
3,949 3,907
______
______ ______
TOTAL NET ASSETS 15,557
16,146 16,528
Capital and reserves
attributable to equity holders
of the company
Share Capital 2,880
2,880
2,880
Share Premium Account 7
47,676 47,676
Other Reserves 7 489
389 450
Retained Earnings 7 12,215
(34,804) (34,491)
15,584
16,141 16,515
Minority Interest (27)
5 13
______
______ ______
TOTAL EQUITY 15,557
16,146 16,528
Consolidated unaudited interim cash flow statement for the period ended 31 March 2008
Unaudited Unaudited Year to
Note 6 months to 6 months to 30 September
31 March 2008 31 March 2007 2007
£'000 £'000 £'000
LOSS BEFORE TAXATION (971) (9,482) (9,189)
Loss on Sale of Subsidiary - - (795)
Interest Received (46) (28) (62)
Interest Paid 1 8 9
Share of Joint Venture Profit (233) (161) (300)
Share of Associates losses 31 55 97
Provision of share based 39 37 98
payments
Depreciation of property, 289 280 555
plant and equipment
Amortisation of intangible - 8,524 8,524
assets
(increase)/decrease in debtors 393 (116) 77
increase/(decrease) in (172) 149 105
creditors
_____ _____ _____
NET CASH USED IN OPERATING (669) (734) (881)
ACTIVITIES
INVESTING ACTIVITIES
Dividends Received 350 - 150
Capital Redistribution - 250 250
Interest and other investment 46 28 62
income received
Purchase of Fixed Assets (123) (92) (474)
Purchase of Fixed Assets - (57) (57)
investments
Sale of shares in subsidiary - - 1,000
undertakings
Disposal of subsidiary - 60 60
undertaking
_____ _____ _____
NET CASH FROM INVESTING 273 189 991
ACTIVITIES
FINANCING ACTIVITIES
Interest Paid (1) (8) (9)
Share premium write off costs (39) - -
Issue of ordinary share - 3,002 3,002
capital
Issue costs - (195) (195)
_____ ______ ______
NET CASH FROM / (USED IN) (40) 2,799 2,798
FINANCING ACTIVITIES
_____ _____ _____
NET INCREASE / (DECREASE) IN (436) 2,254 2,908
CASH
CASH AT BEGINNING OF PERIOD 8 2,468 (440) (440)
CASH AT END OF PERIOD 2,032 1,814 2,468
Notes to the unaudited financial statements
1 Basis of preparation
This is the first time the group has prepared its financial information in accordance with
IFRSs, having previously prepared its
financial information in accordance with UK GAAP accounting standards. Details of how the
transition from UK accounting standards to EU
adopted IFRS has affected the Group's reported financial position, financial performance and
cash flows are given in notes 5 to 6
The results for the Group for the six months ended 31 March 2008 and the comparative
results for the six months ended 31 March 2007 are
unaudited. The financial information contained herein does not constitute statutory accounts
within the meaning of section 240 of the
Companies Act 1985.
The comparatives for the year ended 30 September 2007 are not the Company's full statutory
accounts for that period. A copy of the
statutory accounts for that period has been delivered to the Registrar of Companies. The
auditors' report on those accounts was unqualified
and did not contain a statement under section 237 (2) - (3) of the Companies Act 1985.
Changes in accounting policies - First-time adoption
In preparing this financial information, the group has elected to apply the following
transitional arrangements permitted by IFRS 1
'First-time Adoption of International Financial Reporting Standards'. Transition date is 1st
October 2006.
* Business combinations effected before 1 October 2006 have not been restated.
The Group has made estimates under IFRSs at the date of transition, which are consistent
with those estimates made for the same date
under UK GAAP unless there is objective evidence that those estimates were in error, i.e. the
group has not reflected any new information in
its opening IFRS balance sheet but reflected that new information in its income statement for
subsequent periods.
Basis of consolidation
The consolidated financial information incorporates the results of The Local Radio Company
PLC and all of its subsidiary undertakings as
at 30 September 2007 using the acquisition method of accounting. The results of subsidiary
undertakings are included from the date of
acquisition.
Financial Instruments
Risk Management
The group is exposed through its operations to the following financial risks:
* Credit risk
* Fair value or cash flow interest rate risk
* Other market price risk
* Liquidity risk
In common with all other businesses, the group is exposed to risks that arise from its use
of financial instruments. This note describes
the group's objectives, policies and processes for managing those risks and the methods used
to measure them. Further quantitative
information in respect of these risks is presented throughout these financial statements.
There have been no substantive changes in the group's exposure to financial instrument
risks, its objectives, policies and processes for
managing those risks or the methods used to measure them from previous periods unless
otherwise stated in this note.
Notes to the unaudited financial statements (continued)
Principal financial instruments
The principal financial instruments used by the Group, from which financial instrument
risk arises, are as follows:
* trade receivables
* cash at bank
* bank overdrafts
* investments in unquoted equity securities
* trade and other payables
Joint ventures
An entity is treated as a joint venture where the Group holds a long term interest and
shares control under a contractual agreement. In
the consolidated financial statements, interests in joint ventures are accounted for using the
gross equity method of accounting.
Property, plant and equipment
Depreciation is calculated so as to write off the cost less estimated residual values of
property, plant and equipments, except for
freehold land, on a straight-line basis over the expected useful lives of the assets concerned
and are reviewed annually for any impairment
in value. The principal annual rates used for this purpose are:
Freehold buildings - 2%
Transmitter equipment - 12.5%
Studio equipment - 20%
Computer equipment - 33% - 50%
Leasehold improvements - Over the period of the lease
Office equipment - 20%
Motor vehicles - 25%
Acquired licences
The costs of acquired licences are amortised over the expected licence period, and are
reviewed annually for any impairment in value.
Investments in Associates
An entity is treated as an associate where the Group has a long term interest and
significant, but not controlling influence, generally
accompanying a shareholding of between 20% and 50%. In the consolidated financial statements,
interests in associates are accounted for
using the gross equity method of accounting. The group's share of its associates' post
acquisition results is recognised in the income
statement and the cumulative movements are adjusted against the carrying amount of the
investment.
Impairment of assets
The Group assesses at each reporting date whether there is indication that an asset may be
impaired. If any such indication exists, or
when annual impairment testing of an asset is required, the Group makes an estimate of an
asset's recoverable amount. An asset's recoverable
amount is the higher of an asset's fair value less costs to sell or cash-generating unit's
value in use and its carrying amount. Where the
carrying amount exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount. In assessing
value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset. In
determining fair value less costs to sell, an
appropriate valuation model is used. These evaluations are corroborated by valuation
multiples, quoted share prices if available or other
fair value indicators.
Revenue
Revenue represents the total invoiced value, excluding value added tax and trade
discounts, of services rendered during the period, and
is recognised as related advertising is aired.
Revenue relates entirely to the principal activities of the Group.
Notes to the unaudited financial statements (continued)
Segmental analysis
Segmental analysis is not considered necessary as all revenue and operations are UK based
and there are no significant segments of
trade.
Leases
Assets held under finance leases and hire purchase contracts are capitalised at their fair
value on the inception of the leases and
depreciated over their estimated useful lives. The finance charges are allocated over the
period of the lease in proportion to the capital
amount outstanding.
Rentals under operating leases are charged to the income statement in equal amounts over
the periods of the leases.
Deferred taxation
Deferred tax assets and liabilities are recognised where the carrying amount of an asset
or liability in the balance sheet differs from
its tax base, except for differences arising on:
* the initial recognition of goodwill;
* the initial recognition of an asset or liability in a transaction which is not a
business combination and at the time of the
transaction
affects neither accounting or taxable profit; and
* investments in subsidiaries and jointly controlled entities where the group is able to
control the timing of the reversal of the
difference and it is probable that the difference will not reverse in the foreseeable
future.
Recognition of deferred tax assets is restricted to those instances where it is probable
that taxable profit will be available against
which the difference can be utilised.
The amount of the asset or liability is determined using tax rates that have been enacted
or substantively enacted by the balance sheet
date and are expected to apply when the deferred tax liabilities/(assets) are
settled/(recovered).
Deferred tax assets and liabilities are offset when the group has a legally enforceable
right to offset current tax assets and
liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax
authority on either:
* the same taxable group company; or
* different group entities which intend either to settle current tax assets and
liabilities on a net basis, or to realise the assets and
settle
the liabilities simultaneously, in each future period in which significant amounts of
deferred tax assets or liabilities are expected
to
be settled or recovered.
Share based payments
The fair value of options granted to employees, measured on the grant date, are expensed
over the vesting period on a straight-line
basis. Market vesting conditions are factored into the fair value of the options granted. A
charge is made irrespective of whether market
vesting conditions, if any, are satisfied and the cumulative expense is not adjusted for
failure to meet these conditions.
Where the terms and conditions of options are modified before they vest any increase in
the fair value of the options is expensed over
the remaining vesting period.
Share options are valued using the Black-Scholes model.
Pensions
Some subsidiary companies participate in a defined contribution pension scheme.Contributions charged to income statement represent the
contributions payable by the Group during the period
2 Tax on loss from operations
No tax has been accounted for in the period as there are sufficient losses and capital
allowances brought forward to reduce the charge
to nil, on the basis that the tax charge for the half year is estimated on the basis of the
anticipated tax rates applying for the full
year.
Notes to the unaudited financial statements (continued)
3 Loss per share
March 2008 March 2007 September 2007
Total Total Total
Loss for the year (£000) (931) (9,463) (9,150)
Weighted average number of (Basic) 72,001,588 66,705,984 69,361,040
shares
Basic loss per share (1.29)p (14.19)p (13.19)p
Basic and diluted loss per share are the same, as the effect of all potential ordinary
shares is not dilutive.
4 Goodwill
Impairment of goodwill
Goodwill represents the excess of the cost of a business combination over the interest in
the fair value of identifiable assets,
liabilities and contingent liabilities acquired. Cost comprises the fair values of assets
given, liabilities assumed and equity instruments
issued, plus any direct costs of acquisition.
Goodwill is capitalised as an intangible asset with any impairment in carrying value being
charged to the consolidated income statement.Where the fair value of identifiable assets, liabilities and contingent liabilities exceed the
fair value of consideration paid, the excess
is credited in full to the consolidated income statement on the acquisition date.
Notes to the unaudited financial statements (continued)
5 Reconciliation of net income
6 months ended 31 March 2007 Year ended
30 September 2007
UK GAAP Effect of transition IFRS UK GAAP Effect
of transition IFRS
to IFRS
to IFRS
Restated
Note £'000 £'000 £'000 £'000
£'000 £'000
GROUP REVENUE 8,703 - 18,046
-
8,703
18,046
Cost of sales (2,238) - (4,480)
-
(2,238)
(4,480)
________ ________ ________
________
________
________
GROSS PROFIT
6,465 6,465 13,566
13,566
Administrative (16,010) (70)
(139) (23,813)
expenses (16,080) (23,674)
Profit on sale of - - - 795
- 795
subsidiary
undertaking
Share of operating 161 - 161 300
- 300
profit in Joint
Venture
Share of operating (55) (55)
(97) (97)
loss in associates
________ ________ ________ ________
________ ________
LOSS ON OPERATIONS (9,384) (125) (9,509) (9,013)
(236) (9,249)
Interest receivable 28 -
-
28 62
62
Interest payable (8) -
- (9)
(8) (9)
LOSS ON CONTINUING (9,364) (125)
(236)
ACTIVITIES (9,489) (8,960)
(9,196)
BEFORE TAXATION
Tax on loss - - -
-
-
-
________ ________ ________ ________
________ ________
LOSS FOR THE PERIOD (9,364) (125) (9,489) (8,960)
(236) (9,196)
ON CONTINUING
ACTIVITIES
Profit/(Loss) from 7 - 7 7
- 7
discontinued
activities
________ ________ ________ ________
________ ________
LOSS FOR THE PERIOD (9,482) (125) (9,482) (8,953)
(236) (9,189)
Attributable to:
Equity holders (9,338) (125) (9,463) (8,914)
(236) (9,150)
Minority interest (19) - (19) (39)
- (39)
________ ________ ________ ________
________ ________
Loss per share in
pence
Basic and diluted 3 (14.00)p (14.19)p (12.85)p
(13.19)p
Note: The £70,000 represents an accrual for holiday pay. Contractual holiday pay
entitlement accrued by employees but (as at March 31st
2007) remained untaken. (September 30th equivalent was £139,000).
Notes to the unaudited financial statements (continued)
6 Reconciliation of equity
At March 2007
At September 2007
UKGAAP Effect of transition IFRS UKGAAP
Effect of transition IFRS
to IFRS
to IFRS
restated
NON-CURRENT ASSETS
Intangible assets 10,562 10,562 10,457
- 10,457
-
Property, plant and equipment 1,629 - 1,629 1,713
- 1,713
Investment in joint venture 2,579 2,579 2,568
2,568
Investment in associates 278 (158) 120 278
(200) 278
TOTAL NON-CURRENT ASSETS 15,048 (158) 14,890 15,016
(200) 14,816
CURRENT ASSETS
Trade and other receivables 3,370 - 3,370 3,151
- 3,151
Cash and cash equivalents 1,835 - 1,835 2,468
- 2,468
_______ _______ _______ _______
_______ _______
TOTAL CURRENT ASSETS 5,205 - 5,205 5,619
- 5,619
TOTAL ASSETS 20,253 (158) 20,095 20,635
(200) 20,435
LIABILITIES
NON-CURRENT LIABILITIES
Bank Loans 19 - 19 -
- -
TOTAL NON CURRENT LIABILITIES 19 19 -
- -
-
CURRENT LIABILITIES
Trade and other payables 2,127 - 2,127 2,476
- 2,476
Short-term provisions 1,733 70 1,803 1,292
139 1,431
TOTAL CURRENT LIABILITIES 3,860 70 3,930 3,768
139 3,907
TOTAL LIABILITIES 3,879 70 3,949 3,768
139 3,907
TOTAL NET ASSETS 16,374 (228) 16,146 16,867
(339) 16,528
Capital and reserves
attributable to equity
Holders of the company
Share capital 2,880 - 2,880 2,880
- 2,880
Share premium account 47,676 - 47,676 47,676
- 47,676
Other reserves 389 - 389 450
- 450
Retained Earnings (34,576) (228) (34,804) (34,152)
(339) (34,491)
16,369 (228) 16,141 16,854
(339) 16,515
Minority interest 5 * 5 13
* 13
TOTAL EQUITY 16,374 (228) 16,146 16,867
(339) 16,528
Notes to the unaudited financial statements (continued)
Cash flow statement
There are no material differences between the cash flow statement presented under IFRS and
the cash flow statement presented under
previous GAAP.
7 Statement of movements on reserves
Group Share premium Other reserves Profit and
loss
account
£*000 £*000
£*000
Balance at 30 September 2007 47,676 450
(34,491)
Write off of share premium (47,637) -
47,637
account
Provision For share based 39
-
payments
-
Share Premium account write (39)
-
off costs -
Loss for the period - -
(931)
_______ _______
_______
Balance at 31 March 2008 - 489
12,215
_______ _______
_______
Share Premium Account
As a result of an EGM (dated 2nd October 2007) Resolution 3 sought, with the approval of
the shareholders, to seek the consent of the
Court to cancel the share premium account of The Local Radio Company Plc.
Duly, by Order of the High Court of Justice, Chancery Division (24th October 2007),
pursuant to s138 of the 1985 Companies Act,
authorisation was given under Special Resolution to cancel the share premium account of the
Local Radio Company Plc.
8 Analysis of net funds
At 1 October 2007 Cash flow Additions At31 March2008
£*000 £*000 £*000 £*000
Cash at bank and in hand 2,479 (447) - 2,032
Debt due after one year - - - -
Debt due within one year (11) 11 - -
______ ______ ______ ______
2,468 (436) * 2,032
_______ _______ _______ _______
Notes to the unaudited financial statements (continued)
9. Prior year restatement
The Local Radio Company Plc revisited its impairment testing for the period to 31st March
2007 in preparing its September 2007 annual
financial statements and the directors came to the conclusion that further impairment was
required to the value of £7,975,000. The effect of
the restatement on those financial statements is summarized below:
Effect on 2007
£'000
Increase in administration expenses 7,975
increase in loss for period 7,975
Decrease in Intangible Assets 7,975
Decrease in Net Assets 7,975
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFLERAIAFIT
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