TIDMTAL
RNS Number : 7605I
Ten Alps PLC
30 March 2015
30 March 2015
Ten Alps Plc
Unaudited Interim Results for the six months ended 31 December
2014
Board change
Ten Alps Plc ("Ten Alps" or the "Group"), multimedia producer of
high quality TV and radio together with publishing and
communications content, today announces its unaudited interim
results for the six months to 31 December 2014.
Revenue and EBITDA, which are in line with our internal
expectations, show a decline in comparison to figures for the same
period in the previous year, largely because of phasing of certain
contracted work and the impact of restructuring. We continue to
expect our full-year results to be broadly in line with our
internal expectations and see encouraging momentum building across
the portfolio.
We continue to make progress in refocussing the business.
Forward bookings are encouraging in TV, our print business is
diversifying with growth of digital and events revenue and we are
winning new business in digital content marketing.
Highlights for the period include:
Performance
-- Group revenues of GBP10.17m (2013: GBP11.71m)
-- EBITDA loss of GBP(0.64)m (2013: GBP(0.53)m)
-- Operating losses of GBP(0.73)m (2013: GBP(0.71)m)
-- Loss for the period after tax and before discontinued
operations GBP(1.0)m (2013: GBP(1.01)m)
-- Diluted loss per share (0.36)p (2013: (0.42)p)
-- Total assets GBP14.02m (2013: GBP16.51m)
-- Net debt of GBP6.38m (2013: GBP6.85m) with facilities maturing in February and March 2016
As mentioned in our previous statement, although we recorded a
loss in the period, we believe we are on the right track. Our focus
will continue to be on the key performance indicators (KPIs) we
have adopted, mainly:
-- creative and digital story telling
-- cash generation
-- core market growth
-- enhanced overall performance and
-- investment opportunities
These KPIs should enable us to continue to address the interests
of the various stakeholders of the Group.
Board Change
With effect from today Brian Walden will be retiring from the
plc Board.
Peter Bertram, Chairman, commented "The Board is very grateful
to Brian for his invaluable contribution to the Company and we wish
him all the best."
Brian Walden commented "I am grateful for the experience I have
I had with Ten Alps and I wish everyone in the Group success."
For further information, please contact:
Ten Alps plc
Mark Wood, CEO Tel: +44 (0) 20 7878
Peter Bertram, Chairman 2311
c/o Moira McManus/Emer Donohoe
www.tenalps.com
Grant Thornton, Nominated Adviser Tel: +44 (0) 20 7383
5100
Colin Aaronson / Jen Clarke/ Jamie Barklem
www.grant-thornton.co.uk
BUSINESS OVERVIEW
Our long term goal is to move all business units into
profitability and see encouraging order pipelines building across
the Company. We are creating a more integrated business in which
digital expertise in particular is shared across the divisions. Ten
Alps is being reshaped as an 'indie' programme maker, B2B publisher
in attractive niches and digital content marketing and services
business. In each case we are focused on markets where we see
opportunities for significant growth.
Television
Key highlights included the release of 'Hockney', from Blakeway
Productions; a 90-minute biopic of the artist which was first shown
in cinemas in the UK, before being broadcast by the BBC. Another
Blakeway-produced programme, 'Hunted', about the treatment of gay
people in Russia, has been highly praised around the world and
nominated for an Emmy Award in the US.
We continued to deliver programmes for BBC's Panorama and
Channel 4's Dispatches. A one-hour special for Panorama, 'Ebola
Frontline', was nominated for a BAFTA.
We have won a major commission from a global group of
broadcasters to produce an ambitious, 4-part series on a US
political theme, in addition to which we have been securing orders
in other global markets. These include an 8-part series ('The
Secrets of Branding') for CCTV China and three one-hour
documentaries for the Japanese market. Broadening our international
sales will be a top priority for the Company in the period
ahead.
Publishing
We signed a new five year contract with the Local Authority
Building Control to produce planning guidelines and local trade
directories for every local authority in the UK. In conjunction
with this we launched a new website, Home and Build, which we are
now developing into a digital trusted traders directory. Redesigns
of many of our key B2B titles, including Farm Business, Business
Today, Director of Finance, SME, The Pharmacist and Primary Care
Today, have produced higher levels of engagement and an uplift in
advertising.
We have launched a series of events including awards, breakfast
briefings and roundtable conferences in the health and financial
segments, as we seek to diversify revenues. In the farming sector
we have continued to expand our already successful awards events,
including the Food and Farming Awards and the premier dairy
industry event, the Cream Awards.
We agreed a new three-year contract to produce Community
Practitioner magazine and develop a new website for Unite, the
national trade union. We also won a contract from British Airways
to manage advertising sales in all their staff publications.
Communication
On 25 March 2015, we announced that Ten Alps Communicate, our
digital content marketing and communications business, secured the
renewal of a contract with Transport for London to manage its
digital road safety campaigns for children. The contract, worth
over GBP1 million per annum, represents an increase of
approximately 30 per cent. of the value of the previous contract.
The contract runs for a minimum of three and a half years, with the
potential to extend it for a further three years after expiry of
the initial term.
We redesigned the education website we manage for Nationwide and
produced a series of animated promotions for their young savers'
account scheme.
We have begun to extend our content marketing and corporate
communications business, leveraging the story-telling skills in
both our TV and our communications businesses. We have also begun
producing pilots for one large organization and are in commercial
discussions with several more.
FINANCIAL REVIEW
Revenue from continuing operations was down by 13.15% to
GBP10.17m (2013: GBP11.71m) and gross profit decreased by 18.01% to
GBP3.05m (2013: GBP3.72m). The main variance in revenues came from
the Company's publishing division which saw revenues decrease by
GBP1.58m, representing a decrease of 24.06%, year on year.
Gross margin decreased from 31.73% to 29.94% in the period, with
operating expenses remaining steady at 36.25% of revenues (2013:
36.24%). The reduction in gross margin was due to an operational
reclassification of cost of sales in certain business units.
EBITDA, or headline profit, a key performance indicator used by
the board, was recorded at a loss of GBP0.64m (2013: loss of
GBP0.53m). Operating loss was at a similar level to the
corresponding period last year, at GBP0.73m (2013: loss of
GBP0.71m), after an amortisation charge of GBP0.06m (2013:
GBP0.1m).
The finance charges for the period were GBP0.27m (2013:
GBP0.23m) and reflect the accrued costs on the Company's
outstanding debt obligations. As the Group recorded losses at the
31 December period end, no corporation tax charge was incurred.
With no movement in the deferred tax asset, no charge was incurred
for the period GBPNil (2013: GBP0.08m). The loss for the period was
GBP1.0m (2013: GBP1.01m).
Earnings per share
Basic and diluted loss per share from continuing operations in
the year was 0.36p (2013: loss 0.37p) and was based on the losses
for the period of GBP0.94m (2013: loss GBP1.01m) with a weighted
average number of shares in issue during the year of 276,666,012
(2013: 276,666,012).
Statement of Financial Position
Assets
Non-current assets consisted of goodwill and intangibles of
GBP6.91m (2013: GBP7.04m), property, plant and equipment of
GBP0.16m (2013: GBP0.22m) and deferred tax asset of GBP0.49m (2013:
GBP0.69m)
Inventories and trade receivables have decreased by GBP2.20m to
GBP2.83m (2013: GBP5.03m) reflecting the impact of a reduction in
revenue and work in progress. On a like for like basis, the net
decrease in inventories and trade receivables since 30 June 2014
was GBP0.71m. Other receivables have also decreased to GBP1.17m
(2013: GBP1.44m) reflecting a decrease in accrued income in the
period.
The Group had a cash balance of GBP2.47m as at 31 December
(2013: GBP2.01m). The balance is higher than last year, reflecting
the increase in gross long term debt from GBP8.3m to GBP8.61m. Net
debt at the period end was GBP6.39m (2013: GBP6.85m). Included in
the 2013 comparative is a balance due of GBP0.65m regarding a loan
relating to production finance. This was repaid following
successful completion of the production.
Total assets of the Group were GBP14.02m (2013: GBP16.51m) with
the main movements being net working capital of GBP1.8m and losses
incurred in the period.
Equity and Liabilities
Retained losses as at 31 December 2014 were GBP23.85m (2013:
losses: GBP21.54m) and total shareholders' equity at that date was
GBP(2.39)m (2013:loss of GBP0.08m).
On 4 December 2014 the Group entered into an underwriting
agreement ("Letter of Subscription") with certain existing
shareholders and directors of the Company (the "Investors") to
subscribe for ordinary shares of the Company up to an aggregate
value of approximately GBP1 million (the "Subscription").
Under the Letter of Subscription certain directors of the
Company being Peter Bertram, Mark Wood and Tim Hoare will each
subscribe for GBP50,000 and Nitil Patel for GBP20,000. The maximum
amount that can be raised under the Letter of Subscription may be
increased if other investors become party to the agreement and it
is valid until 31 May 2015.
The Group had an outstanding balance on current and long term
debt of GBP8.86m (2013: GBP8.95m), held predominantly by several of
the Company's shareholders, with borrowings are split into four
categories. Long term debt comprises an unsecured debt facility of
GBP4.54m (2013: GBP4.35m), secured loan notes of GBP2.60m (2013:
GBP2.52m) and unsecured loan notes of GBP1.47m (2013: GBP1.43m).
The debt facility is due for repayment in February 2016 and the
loan notes in March 2016 with no mandatory repayments on either of
these amounts until the due dates. Furthermore, the Company has a
short term unsecured loan note of GBP0.25m (2013: GBPNil) which is
due for repayment by 30 June 2015.
Current liabilities consisting of trade, other creditors
(including deferred income of GBP1.77m (2013: GBP1.54m)) and
current borrowings have decreased in the period under review by
GBP0.48m to GBP7.81m (2013: GBP8.29m).
Cash flows
During the period the Group used GBP0.34m (2013: GBP1.53m) of
cash flow from day to day operations. After accounting for finance
costs and investing and an increase in borrowings of GBP0.25m
(2013: GBP1.90m), the net movement in the period was a decrease in
cash of GBP0.11m (2013: increase of GBP0.35m).
Mark Wood
CEO
Condensed consolidated interim income statement
Half Year Half Year 15 months
to to to
31-Dec 31 Dec 30 June
2014 2013 2014
GBP'000's GBP'000's GBP'000's
-------------------------------------- ---------- ---------- ----------
Continuing operations
Revenue 10,171 11,707 29,454
Cost of sales (7,126) (7,992) (20,030)
--------------------------------------- ---------- ---------- ----------
Gross Profit 3,045 3,715 9,424
Operating expenses (3,687) (4,243) (10,549)
EBITDA (642) (528) (1,125)
Reorganisation and restructuring
costs - - (329)
Depreciation (34) (77) (179)
Amortisation and impairment of
intangible assets (57) (102) (353)
Operating loss (733) (707) (1,986)
Finance costs (265) (226) (570)
Finance income - - -
-------------------------------------- ---------- ---------- ----------
Loss before tax (998) (933) (2,556)
Taxation - (80) (247)
Loss for the period (998) (1,013) (2,803)
Discontinued operations
Profit/(loss) for the year from
discontinued operations - 243 243
Loss for the period (998) (770) (2,560)
--------------------------------------- ---------- ---------- ----------
Continuing operations attributable
to:
Equity holders (998) (1,013) (2,803)
Discontinued operations attributable
to:
Minority interest - - -
Equity holders - 243 243
Retained profit for the year (998) (770) (2,560)
--------------------------------------- ---------- ---------- ----------
Basic earnings per share
From continuing operations (0.36)p (0.42)p (1.01)p
From discontinued operations - 0.10p 0.09p
Total (0.36)p (0.32)p (0.93)p
Diluted earnings per share
From continuing operations (0.36)p (0.42)p (1.01)p
From discontinued operations - 0.10p 0.09p
Total (0.36)p (0.32)p (0.93)p
Ten Alps plc consolidated statement of comprehensive
income
For the six months ended 31 December
2014
Half Year Half Year 15 months
to to to
31-Dec 31 Dec 30 June
2014 2013 2013
GBP'000's GBP'000's GBP'000's
-------------------------------------------- ---------- ---------- ----------
Profit for the period (998) (770) (2,560)
Other comprehensive income
Foreign investment translation differences - (14) -
Total comprehensive income for the
period (998) (784) (2,560)
--------------------------------------------- ---------- ---------- ----------
Attributable to:
Equity holders (998) (784) (2,560)
Minority interest - - -
(998) (784) (2,560)
-------------------------------------------- ---------- ---------- ----------
Condensed consolidated statement of financial position
Unaudited Unaudited Audited
------------------------------- ------ ---------- ---------- ---------
31-Dec 31 Dec 30 June
2014 2013 2014
Note GBP '000 GBP '000 GBP '000
------------------------------- ------ ---------- ---------- ---------
Assets
Non-current
Goodwill and intangibles 6,906 7,035 6,953
Other intangible assets - - -
Property, plant and equipment 158 222 186
Deferred tax 493 688 493
7,557 7,945 7,632
-------------------------------------- ---------- ---------- ---------
Current assets
Inventories 942 1,821 989
Trade receivables 1,889 3,211 2,552
Other receivables 1,165 1,436 1,596
Cash and cash equivalents 2,469 2,099 2,578
6,465 8,567 7,715
-------------------------------------- ---------- ---------- ---------
Total Assets 14,022 16,512 15,347
--------------------------------------- ---------- ---------- ---------
Equity and liabilities
Shareholders' equity
Called up share capital 5,534 5,534 5,534
Share premium account 15,228 15,228 15,228
Merger reserve 696 696 696
Exchange reserve - - -
Retained earnings (23,852) (21,539) (22,854)
--------------------------------------- ---------- ---------- ---------
Total Shareholders' Equity (2,394) (81) (1,396)
Minority interest - - -
------------------------------- ------ ---------- ---------- ---------
Total Equity (2,394) (81) (1,396)
Liabilities
Non-current
Borrowings 8,607 8,300 8,447
Other non-current liabilities - - -
8,607 8,300 8,447
-------------------------------------- ---------- ---------- ---------
Current liabilities
Trade payables 2,928 3,245 3,013
Other payables 4,631 4,398 5,283
Current tax liabilities - - -
Borrowings - current 250 650 -
7,809 8,293 8,296
-------------------------------------- ---------- ---------- ---------
Total equity and liabilities 14,022 16,512 15,347
--------------------------------------- ---------- ---------- ---------
Condensed consolidated statement of cash flows
Unaudited Unaudited Audited
15 mth
period
6 month 6 month to
31-Dec 31 Dec 30 June
2014 2013 2014
GBP '000 GBP '000 GBP '000
------------------------------------------- ---------- ---------- ---------
Operating activities
Reconciliation of profit to operating
cash flows
Loss for the period (998) (770) (2,560)
Add back:
Taxation - 80 247
Depreciation 34 78 179
Amortisation & impairment 57 102 354
Finance costs 265 225 570
Finance income - - 2
(Profit) on disposal of subsidiaries - (237) (237)
Loss on sale of fixed assets - - 3
------------------------------------------- ---------- ---------- ---------
(642) (522) (1,442)
Decrease/(Increase)in work in progress 47 (61) 709
Decrease in trade and other receivables 1,094 129 1,483
(Decrease) in trade and other creditors (842) (1,080) (2,323)
------------------------------------------- ---------- ---------- ---------
Cash (used in) from operations (343) (1,534) (1,574)
Finance costs - (100) (295)
Net cash flows (used in)/from operations
activities (343) (1,634) (1,869)
------------------------------------------- ---------- ---------- ---------
Investing activities
Disposal (Acquisition) of subsidiary undertakings,
net of cash
and overdrafts acquired - 163
Payment of deferred consideration - (90) (100)
Purchase of property, plant and
equipment (6) 6 (5)
Proceeds of sale of property, plant
and equipment - (1) 3
Net cash flows used in investing
activities (6) 78 61
------------------------------------------- ---------- ---------- ---------
Financing activities
Borrowings repaid (50) - -
Borrowings received 300 1,901 1,250
Net cash flows from financing activities 250 1,901 1,250
------------------------------------------- ---------- ---------- ---------
Net decrease in cash and cash equivalents (99) 345 (558)
Translation differences (10) 3 6
Cash and cash equivalents at beginning
of period 2,578 1,752 3,130
Cash and cash equivalents at end
of period 2,469 2,100 2,578
------------------------------------------- ---------- ---------- ---------
Condensed consolidated statement of changes in equity
Share Share Merger Exchange Retained Non Controlling Total
capital premium reserve reserve earnings Total interest equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1 January 2013 5,051 15,228 696 - (14,128) 6,847 - 6,847
---------------------------- -------- -------- -------- --------- --------- -------- ---------------- --------
Loss for the Period - - - - (7,397) (7,397) - (7,397)
Other comprehensive income
Translation differences - - - (14) - (14) - (14)
---------------------------- -------- -------- -------- --------- --------- -------- ---------------- --------
Total comprehensive income - - - (14) (7,397) (7,411) - (7,411)
Equity-settled share-based - - - - - - - -
payments
Shares issued 483 - - - - 483 - 483
Balance at 31 December 2013 5,534 15,228 696 (14) (21,525) (81) - (81)
---------------------------- -------- -------- -------- --------- --------- -------- ---------------- --------
Balance at 1 July 2013 5,534 15,228 696 - (20,512) 946 - 946
---------------------------- -------- -------- -------- --------- --------- -------- ---------------- --------
Loss for the Period - - - - (1,013) (1,013) - (1,013)
Foreign investment
translation
differences - - - (14) - (14) (14)
---------------------------- -------- -------- -------- --------- --------- -------- ---------------- --------
Total comprehensive income - - - (14) (1,013) (1,027) - (1,027)
Equity-settled share-based - - - - - - - -
payments
Dividends paid - - - - - - - -
Shares issued - - - - - - - -
Balance at 31 December 2013 5,534 15,228 696 (14) (21,525) (81) - (81)
---------------------------- -------- -------- -------- --------- --------- -------- ---------------- --------
Balance at 1 July 2014 5,534 15,228 696 - (22,854) (1,396) - (1,396)
---------------------------- -------- -------- -------- --------- --------- -------- ---------------- --------
Loss for the Period - - - - (998) (998) - (998)
Foreign investment - - - - - - -
translation
differences
---------------------------- -------- -------- -------- --------- --------- -------- ---------------- --------
Total comprehensive income - - - - (998) (998) - (998)
Equity-settled share-based - - - - - - - -
payments
Dividends paid - - - - - - - -
Shares issued - - - - - - - -
Balance at 31 December 2014 5,534 15,228 696 - (23,852) (2,394) - (2,394)
---------------------------- -------- -------- -------- --------- --------- -------- ---------------- --------
Notes to the consolidated financial statements
1) GENERAL INFORMATION
The condensed interim financial statements for the six months
ended 31 December 2014 were authorised for issue in accordance with
a resolution of the Board of Directors on 27 March 2015.
The Company is a public limited company incorporated in the
United Kingdom. The address of its registered office is 7 Exchange
Crescent, Conference Square, Edinburgh, EH3 8AN.
The Company is listed on the London Stock Exchange's AIM
Market.
These financial statements do not comprise statutory accounts
within the meaning of Section 434 of the Companies Act 2006.
Statutory accounts for the period ended 30 June 2014, which were
approved by the Board of Directors on 3 December 2014, received an
unqualified auditors' report and have been delivered to the
delivered to the Registrar of Companies. The interim financial
information contained in this report is unaudited.
2) BASIS OF PREPARATION
These condensed consolidated interim financial statements (the
interim financial statements) have been prepared in accordance with
the accounting policies adopted in the last annual financial
statements for the 15 month period to 30 June 2014.
3) SEGMENTAL INFORMATION
The operations of the group are managed in three principle
business divisions, Broadcast, Publishing and Communications
Agency. These divisions are the basis upon which the management
reports its primary segment information.
Unaudited Unaudited Audited
6 Months 6 Months 15 months
to to to
31-Dec 31-Dec 30-Jun
2014 2013 2014
Revenues by Business Division GBP'000's GBP'000's GBP'000's
------------------------------- ---------- ---------- ----------
Television 4,247 4,160 10,733
Publishing 4,983 6,562 15,874
Communications 801 802 2,423
Other 140 182 424
-------------------------------- ---------- ---------- ----------
Total 10,171 11,706 29,454
-------------------------------- ---------- ---------- ----------
4) EARNINGS PER SHARE
6 mths to 6 mths to 15 mths to
Dec Dec Jun
2014 2013 2014
Number of Number of Number of
Shares Shares Shares
Weighted average number of shares
used in basic
earnings per share calculation 276,666,012 276,666,012 276,666,012
Dilutive effect of share options - - -
------------------------------------------ ------------ ------------ ------------
Weighted average number of shares
used in diluted earnings per share
calculation 276,666,012 276,666,012 276,666,012
------------------------------------------ ------------ ------------ ------------
GBP'000 GBP'000 GBP'000
Loss for the period (998) (1,013) (2,803)
Amortisation of intangible assets
post deferred tax impact 57 102 327
Restructuring costs - - 329
Adjusted profit for year attributable
to shareholders (941) (911) (2,147)
------------------------------------------ ------------ ------------ ------------
Profit for year from discontinued
operations attributable to shareholders - 243 243
------------------------------------------ ------------ ------------ ------------
Continuing operations
Basic Earnings per Share (0.36)p (0.37)p (1.01)p
Diluted Earnings per Share (0.36)p (0.37)p (1.01)p
Adjusted Basic Earnings per Share (0.34)p (0.33)p (0.78)p
Adjusted Diluted Earnings per Share (0.34)p (0.33)p (0.78)p
Discontinued operations
Basic Earnings per Share - 0.09 p 0.09 p
Diluted Earnings per Share - 0.09 p 0.09 p
5) SHARE CAPITAL
2014 2013
Shares Share Share Shares Share Share
No capital premium No capital premium
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- ------------ ------------
Authorised ordinary shares
of 2p each unlimited unlimited
-------------------------------- ------------ -------- --------- ------------ -------- ---------
Allotted, called up and fully
paid ordinary
of 2p each:
At start of year 276,666,012 5,533 15,228 276,666,012 5,533 15,228
Shares issued as consideration - - - - - -
Shares issued as remuneration - - - - - -
Shares issued as private
placement - - - - - -
At end of year 276,666,012 5,533 15,228 276,666,012 5,533 15,228
-------------------------------- ------------ -------- --------- ------------ -------- ---------
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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