UTV Media plc
(“UTV” or “the Group”)
Interim Results
for the six months ended
30 June 2015
Financial highlights *
- Group revenue of £58.3m (2014: £57.8m)
- Pre-tax profit of £1.0m (2014: £10.0m)
- Group operating profit of £2.7m (2014: £11.2m)
- Net debt of £46.9m (2014: £43.5m)
- Diluted adjusted earnings per share of (0.55)p (2014:
8.28p)
- Proposed interim dividend of 1.82p (2014: 1.82p)
Operational
highlights
- Radio GB - 2014 World Cup impact softened by strong core
trading performance
- Continued strong audience performance across established radio
and television businesses
- Board has approved programming and marketing action plan for
UTV Ireland
* As appropriate, references to
profit include income from joint ventures and associates
Richard Huntingford, Chairman, UTV
Media plc, said:
“The challenges of establishing a
new television channel are evident in these results which reflect
the significant losses incurred by UTV Ireland in its first six
months on air. Less evident, but not to be lost sight of, is the
inherent value created by the establishment of a mainstream
television channel in Europe’s fastest growing economy, with long
term licensing, programme supply and infrastructure in place.”
For further information contact:
Enquiries |
|
|
Orla McKibbin,
Director of Communications |
+44 (0) 28 9026 2188
/ +44 (0) 7879 666 427 |
|
|
|
www.utvmedia.com/investors |
|
|
|
Maitland
James Devas |
+44 (0) 20 7379
5151 |
Chairman’s Statement
Introduction
The challenges of establishing a new
television channel are evident in these results which reflect the
significant losses incurred by UTV Ireland in its first six months
on air. Less evident, but not to be lost sight of, is the inherent
value created by the establishment of a mainstream television
channel in Europe’s fastest growing economy, with long term
licensing, programme supply and infrastructure in place.
Results and Dividend *
Group operating profit was £2.7m
(2014: £11.2m) on group revenue of £58.3m (2014:
£57.8m). A reduction in the net interest charge
to £1.0m (2014: £1.3m) was more than offset by a foreign exchange
loss of £0.7m (2014: £Nil) resulting in a group pre-tax profit of
£1.0m (2014: £10.0m). Diluted adjusted earnings per share
were (0.55)p (2014: 8.28p). The investment in UTV Ireland was
well supported by the strong cash generation characteristics of the
rest of the group. As a result, net debt increased by just
£3.4m to £46.9m representing Net debt/EBITDA at 30 June 2015 of 3.40 times (30 June 2014: 1.72 times). The group agreed
a relaxation with its bankers of its Net debt/EBITDA covenant from
3.50: 1 to 4.50: 1 for one year to 30 June
2016.
The Board is proposing a dividend of
1.82p (2014: 1.82p).
* As
appropriate, references to profit include income from associates
and joint
venture.
Television
Turnover in our Northern Ireland television business was down
by 2% in the first six months of the year, reflecting an 11%
decrease in advertising revenue from Belfast. This decrease
resulted from a significant cut in expenditure by government
departments in the Northern Ireland Assembly. Incorporating
the results of Tibus and Simply Zesty, operating profit in our
Northern Ireland television
business was £4.2m (2014: £4.9m).
Turnover in our new television
channel, UTV Ireland, fell below expectations as a result of a
slower build in audience numbers. In the first six months,
UTV Ireland’s share of commercial impacts was 11.4%, compared to
our original forecast of approximately 15%. Early teething
issues, such as the re-tuning of domestic digital receivers,
further compounded the problem of audience under-delivery,
resulting in turnover for the first half being recorded at £4.9m
(2014: £Nil). With costs of £12.4m (2014: £0.5m), in the
first half, operating losses at UTV Ireland were £7.5m (2014:
£0.5m), creating an overall operating loss in the television
division of £3.3m (2014: operating profit of £4.4m).
Radio *
Operating profit in our radio
division was £0.9m lower at £7.9m on turnover of £34.6m (2014:
£38.8m). Revenues in our GB radio division were down by £2.6m
to £25.8m, with lower revenues at talkSPORT accounting for all of
this. In a post World Cup year, and in the context of a
national advertising market which was flat in the six month period,
talkSPORT’s 15% revenue decline was a creditable performance, while
its cost base reduced by £2.1m. Our local radio
stations experienced modest growth and held costs at the previous
year’s level. GB Radio operating profit, therefore, was down
by only £0.5m to £5.8m. As previously reported, a strategic
review of our local radio stations is being carried out with
disposal terms in respect of one station, Juice FM in Liverpool,
having been agreed. Subject to CMA approval the £10.0m cash
proceeds of this disposal are expected to be received in Q4.
The Irish radio advertising market
failed to respond to the increasingly positive macroeconomic data
and, in the first six months, was estimated by the advertising
agencies to be down by about 4%. Significant currency
headwinds compounded this leading to an overall reduction in our
Irish radio advertising revenues of £1.5m to £8.8m. With
compensating currency tailwinds in our operating cost base, Irish
radio operating profit for the first half was £0.4m lower at
£2.1m.
* As
appropriate, references to profit include income from associates
and joint
venture.
Prospects
We are experiencing good growth from
both our London and Dublin offices and this is expected to
generate growth in Northern
Ireland television advertising revenue of 4% in the current
quarter. However the budget impasse in the local assembly
continues and this is expected to create a drag on our Northern Ireland television advertising
revenue from Belfast in the third
quarter.
UTV Ireland’s progress is closely
linked to the performance of ITV network’s programming, which is
the mainstay of its output, and there are new series scheduled for
the autumn which have been favourably commented upon.
Alongside this, we are implementing an action plan which includes
stronger domestic programming, more effective marketing and a
better defined branding strategy.
As we move through Q3, the tough
World Cup comparator for talkSPORT falls away, with good growth
forecast for both August and September. For the current
quarter as a whole, talkSPORT’s advertising revenue is expected to
be up by 1%, with similar growth from our local radio stations.
The poor performance of the Irish
radio market relative to the economy continued on into July and
August, with the strength of sterling exerting further downward
pressure on our reported Irish radio revenues. However,
advertising agencies are generally positive about the last four
months of the year and we are forecasting growth of 3% in local
currency for September which would result in a 5% reduction on the
same basis for the third quarter as a whole.
Richard Huntingford
Chairman
28 August 2015
Group Income Statement
for the six months ended
30 June 2015
|
|
|
Notes |
30 June |
30
June |
|
|
|
|
|
2015 |
2014 |
|
|
|
|
|
£000 |
£000 |
|
|
|
|
|
|
|
|
Continuing operations |
|
|
|
|
|
|
Revenue |
|
|
3 |
58,262 |
57,781 |
|
Operating costs |
|
|
|
(55,765) |
(46,731) |
|
|
|
|
|
––––––– |
––––––– |
|
Operating profit from continuing
operations before tax and finance costs |
|
|
|
2,497 |
11,050 |
|
|
|
|
|
|
|
|
Share of results of
JVs and associates accounted for using the equity method |
|
|
|
185 |
142 |
|
|
|
|
|
––––––– |
––––––– |
|
Profit from continuing operations
before tax and finance costs |
|
|
3 |
2,682 |
11,192 |
|
|
|
|
|
|
|
|
Finance revenue |
|
|
|
22 |
26 |
|
Finance costs |
|
|
|
(1,021) |
(1,283) |
|
Foreign exchange
(loss)/gain |
|
|
|
(703) |
27 |
|
|
|
|
|
––––––– |
––––––– |
|
Profit from continuing operations
before tax |
|
|
3 |
980 |
9,962 |
|
|
|
|
|
|
|
|
Taxation |
|
|
|
(1,460) |
(1,970) |
|
|
|
|
|
––––––– |
––––––– |
|
(Loss)/profit from continuing
operations after tax |
|
|
|
(480) |
7,992 |
|
|
|
|
|
|
|
|
Discontinued operations |
|
|
|
|
|
|
Loss from
discontinued operations |
|
|
|
- |
(61) |
|
|
|
|
|
––––––– |
––––––– |
|
(Loss)/profit for the
period |
|
|
|
(480) |
7,931 |
|
|
|
|
|
––––––– |
–––––– |
|
Attributable to: |
|
|
|
|
|
|
Equity holders of
the parent |
|
|
|
(556) |
7,855 |
|
Non-controlling
interest |
|
|
|
76 |
76 |
|
|
|
|
|
––––––– |
––––––– |
|
|
|
|
|
(480) |
7,931 |
|
|
|
|
|
––––––– |
–––––– |
|
|
|
|
|
|
|
(Loss)/Earnings per
share |
|
|
|
2015 |
2014 |
|
|
|
|
|
|
|
|
Continuing operations |
|
|
|
|
|
|
Basic |
|
|
6 |
(0.58)p |
8.26p |
|
Diluted |
|
|
6 |
(0.58)p |
8.19p |
|
Adjusted |
|
|
6 |
(0.55)p |
8.35p |
|
Diluted
adjusted |
|
|
6 |
(0.55)p |
8.28p |
|
|
|
|
|
|
|
|
Continuing and discontinued
operations |
|
|
|
|
|
|
Basic |
|
|
6 |
(0.58)p |
8.20p |
|
Diluted |
|
|
6 |
(0.58)p |
8.13p |
|
Adjusted |
|
|
6 |
(0.55)p |
8.29p |
|
Diluted
adjusted |
|
|
6 |
(0.55)p |
8.22p |
|
Group Statement of Comprehensive Income
for the six months ended
30 June 2015
|
|
30 June |
30 June |
|
|
2015 |
2014 |
|
|
£000 |
£000 |
|
|
|
|
(Loss)/profit for the
period |
|
(480) |
7,931 |
|
|
––––––– |
––––––– |
|
|
|
|
Other comprehensive
(loss)/income |
|
|
|
|
|
|
|
Items that will not be reclassified
subsequently to profit or loss: |
|
|
|
Actuarial loss on defined benefit
pension schemes |
|
(2,223) |
(2,081) |
Income tax relating to items that
will not be reclassified subsequently |
|
445 |
416 |
|
|
––––––– |
––––––– |
|
|
(1,778) |
(1,665) |
|
|
––––––– |
––––––– |
Items that may be reclassified
subsequently to profit or loss: |
|
|
|
Cash flow hedges |
|
|
|
Gain arising during the
period |
|
293 |
- |
Less transfers to the income
statement |
|
(17) |
- |
|
|
|
|
Exchange difference on
translation of foreign operations |
|
(3,874) |
(1,881) |
Income tax relating to items that
may be reclassified |
|
(22) |
- |
|
|
––––––– |
––––––– |
|
|
(3,620) |
(1,881) |
|
|
––––––– |
––––––– |
|
|
|
|
Other comprehensive loss for the
period, net of tax |
|
(5,398) |
(3,546) |
|
|
––––––– |
––––––– |
|
|
|
|
|
|
|
|
Total comprehensive (loss)/income
for the period, net of tax |
|
(5,878) |
4,385 |
|
|
––––––– |
––––––– |
|
|
|
|
Attributable to: |
|
|
|
Equity holders of the parent |
|
(5,954) |
4,309 |
Non-controlling interest |
|
76 |
76 |
|
|
––––––– |
––––––– |
|
|
(5,878) |
4,385 |
|
|
––––––– |
––––––– |
|
|
|
|
|
|
|
|
Group Balance Sheet
for the six months ended
30 June 2015
|
|
30 |
30 |
31 |
|
|
June |
June |
December |
|
Notes |
2015 |
2014 |
2014 |
|
|
|
|
|
|
|
£000 |
£000 |
£000 |
|
|
|
|
|
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and
equipment |
7 |
17,546 |
12,487 |
17,360 |
Intangible assets |
|
166,047 |
174,374 |
172,163 |
Investments accounted for using
the equity method |
|
864 |
890 |
900 |
Deferred tax asset |
|
1,691 |
1,818 |
1,531 |
|
|
––––––– |
––––––– |
––––––– |
|
|
186,148 |
189,569 |
191,594 |
|
|
––––––– |
––––––– |
––––––– |
Current assets |
|
|
|
|
Inventories |
|
1,591 |
785 |
2,390 |
Trade and other receivables |
|
21,567 |
22,298 |
23,502 |
Financial assets |
8 |
376 |
375 |
275 |
Cash and short term deposits |
|
12,832 |
13,906 |
12,886 |
|
|
––––––– |
––––––– |
––––––– |
|
|
36,366 |
37,364 |
39,053 |
|
|
––––––– |
––––––– |
––––––– |
TOTAL ASSETS |
|
222,514 |
226,933 |
231,007 |
|
|
––––––– |
––––––– |
––––––– |
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
Equity attributable to equity
holders of the parent |
|
|
|
|
Equity share capital |
|
55,557 |
55,557 |
55,557 |
Capital redemption reserve |
|
50 |
50 |
50 |
Treasury shares |
|
(104) |
- |
(104) |
Foreign currency reserve |
|
(303) |
5,069 |
3,571 |
Cash flow hedge reserve |
|
276 |
- |
- |
Retained earnings |
|
38,038 |
39,336 |
45,428 |
|
|
––––––– |
––––––– |
––––––– |
|
|
93,514 |
100,012 |
104,502 |
Non-controlling interest |
|
129 |
85 |
53 |
|
|
––––––– |
––––––– |
––––––– |
TOTAL EQUITY |
|
93,643 |
100,097 |
104,555 |
|
|
––––––– |
––––––– |
––––––– |
Non-current liabilities |
|
|
|
|
Financial liabilities |
8 |
56,437 |
53,594 |
55,399 |
Pension liability |
9 |
3,229 |
4,241 |
1,971 |
Provisions |
|
622 |
413 |
372 |
Deferred tax liabilities |
|
32,979 |
34,518 |
34,266 |
|
|
––––––– |
––––––– |
––––––– |
|
|
93,267 |
92,766 |
92,008 |
|
|
––––––– |
––––––– |
––––––– |
Current liabilities |
|
|
|
|
Trade and other payables |
|
29,766 |
27,291 |
28,058 |
Financial liabilities |
8 |
3,335 |
3,790 |
3,668 |
Tax payable |
|
1,829 |
2,313 |
1,909 |
Provisions |
|
674 |
676 |
809 |
|
|
––––––– |
––––––– |
––––––– |
|
|
35,604 |
34,070 |
34,444 |
|
|
––––––– |
––––––– |
––––––– |
TOTAL LIABILITIES |
|
128,871 |
126,836 |
126,452 |
|
|
––––––– |
––––––– |
––––––– |
TOTAL EQUITY AND
LIABILITIES |
|
222,514 |
226,933 |
231,007 |
|
|
––––––– |
––––––– |
––––––– |
Group Cash Flow
for the six months ended
30 June 2015
|
|
30 June |
30 June |
|
|
2015 |
2014 |
|
|
|
|
|
|
£000 |
£000 |
Operating activities |
|
|
|
Profit before tax
(i) |
|
980 |
9,851 |
Adjustments to reconcile profit
before tax to
net cash
flows from operating activities |
|
|
|
Foreign exchange loss/(gain) |
|
703 |
(27) |
Net finance costs |
|
999 |
1,257 |
Share of results of associates
and joint ventures |
|
(185) |
(142) |
Depreciation of property, plant
and equipment |
|
1,514 |
971 |
Gain from sale of property, plant
and equipment |
|
(1) |
- |
Share based payments |
|
171 |
175 |
Difference between
pension contributions paid and amounts recognised in the
income statement |
|
(1,038) |
(2,530) |
Decrease in inventories |
|
799 |
973 |
Decrease in trade and other
receivables |
|
1,286 |
228 |
Decrease in trade and other
payables |
|
(2,830) |
(1,169) |
Increase/(decrease) in
provisions |
|
115 |
(22) |
|
|
––––––– |
––––––– |
Cash generated from
operations |
|
2,513 |
9,565 |
|
|
|
|
Tax paid |
|
(1,241) |
(729) |
|
|
––––––– |
––––––– |
Net cash inflow from operating
activities |
|
1,272 |
8,836 |
|
|
––––––– |
––––––– |
Investing activities |
|
|
|
Interest received |
|
24 |
26 |
Proceeds on disposal of property,
plant and equipment |
|
1 |
1 |
Purchase of property, plant and
equipment |
|
(2,167) |
(1,893) |
Income received from associates
and joint ventures |
|
221 |
75 |
Proceeds from the disposal of
discontinued operations |
|
175 |
300 |
|
|
––––––– |
––––––– |
Net cash flows from investing
activities |
|
(1,746) |
(1,491) |
|
|
––––––– |
––––––– |
Financing activities |
|
|
|
Borrowing costs |
|
(1,084) |
(1,078) |
Acquisition of treasury
shares |
|
- |
(402) |
Dividends paid to equity
shareholders |
|
(4) |
(3) |
Dividends paid to non-controlling
interests |
|
- |
(97) |
Repayment of borrowings |
|
(1,939) |
(2,000) |
Proceeds from borrowings |
|
3,582 |
- |
|
|
––––––– |
––––––– |
Net cash flows used in financing
activities |
|
555 |
(3,580) |
|
|
––––––– |
––––––– |
Net increase in cash and cash
equivalents |
|
81 |
3,765 |
|
|
|
|
Net foreign exchange
differences |
|
(135) |
(44) |
Cash and cash equivalents at 1
January |
|
12,886 |
10,185 |
|
|
––––––– |
––––––– |
Cash and cash equivalents at 30
June |
|
12,832 |
13,906 |
|
|
––––––– |
––––––– |
(i) Includes both continuing and discontinued
operations |
|
|
|
Group Statement of Changes in Equity
for the six months ended
30 June 2015
|
Equity share
capital |
Capital redemption
reserve |
Treasury
shares |
Foreign currency
reserve |
Cashflow hedge
reserve |
Retained
earnings |
Share holder equity |
Non- controlling
interest |
Total |
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
|
|
|
At 1 January 2014 |
55,557 |
50 |
(123) |
6,950 |
- |
38,531 |
100,965 |
106 |
101,071 |
|
–––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
|
|
|
|
|
|
|
|
|
|
Profit for the period |
- |
- |
- |
- |
- |
7,855 |
7,855 |
76 |
7,931 |
Other comprehensive income in the
period |
- |
- |
- |
(1,881) |
- |
(1,665) |
(3,546) |
- |
(3,546) |
|
–––––– |
–––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
Total net comprehensive income in
the period |
- |
- |
- |
(1,881) |
- |
6,190 |
4,309 |
76 |
4,385 |
|
|
|
|
|
|
|
|
|
|
Acquisition of treasury
shares |
- |
- |
(402) |
- |
- |
- |
(402) |
- |
(402) |
Treasury shares issued |
- |
- |
525 |
- |
- |
(525) |
- |
- |
- |
Share based payment |
- |
- |
- |
- |
- |
175 |
175 |
- |
175 |
Equity dividends paid and
payable |
- |
- |
- |
- |
- |
(5,035) |
(5,035) |
(97) |
(5,132) |
|
–––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
At 30 June 2014 |
55,557 |
50 |
- |
5,069 |
- |
39,336 |
100,012 |
85 |
100,097 |
|
–––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
|
|
|
|
|
|
|
|
|
|
Profit for the period |
- |
- |
- |
- |
- |
5,788 |
5,788 |
81 |
5,869 |
Other comprehensive income/(loss)
in the period |
- |
- |
- |
(1,498) |
- |
1,921 |
423 |
- |
423 |
|
–––––– |
–––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
Total net comprehensive income in
the period |
- |
- |
- |
(1,498) |
- |
7,709 |
6,211 |
81 |
6,292 |
|
|
|
|
|
|
|
|
|
|
Acquisition of treasury
shares |
|
|
(104) |
- |
- |
- |
(104) |
- |
(104) |
Share based payment |
- |
- |
- |
- |
- |
128 |
128 |
- |
128 |
Equity dividends paid |
- |
- |
- |
- |
- |
(1,745) |
(1,745) |
(113) |
(1,858) |
|
–––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
At 31 December 2014 |
55,557 |
50 |
(104) |
3,571 |
- |
45,428 |
104,502 |
53 |
104,555 |
|
–––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
|
|
|
|
|
|
|
|
|
|
(Loss)/profit for the period |
- |
- |
- |
- |
- |
(556) |
(556) |
76 |
(480) |
Other comprehensive (loss)/income
in the period |
- |
- |
- |
(3,874) |
276 |
(1,800) |
(5,398) |
- |
(5,398) |
|
–––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
Total net comprehensive
(loss)/income in the period |
- |
- |
- |
(3,874) |
276 |
(2,356) |
(5,954) |
76 |
(5,878) |
|
|
|
|
|
|
|
|
|
|
Share based payment |
- |
- |
- |
- |
- |
171 |
171 |
- |
171 |
Equity dividends paid and
payable |
- |
- |
- |
- |
- |
(5,205) |
(5,205) |
- |
(5,205) |
|
–––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
At 30 June 2015 |
55,557 |
50 |
(104) |
(303) |
276 |
38,038 |
93,514 |
129 |
93,643 |
|
–––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
Notes to the accounts
1. Basis
of preparation
The condensed interim financial statements have been prepared in
accordance with IAS34 “Interim Financial Reporting” and the
Disclosure and Transparency Rules of the Financial Conduct
Authority.
In addition, the interim condensed financial statements have
been prepared on a basis consistent with the accounting policies
set out in the Group’s Annual Report and Accounts for the year
ended 31 December 2014. A number of New European Union
endorsed amendments to existing standards are effective for periods
beginning on or after 1 January 2015.
However, none of these have a material, if any, impact on the
annual or condensed interim financial statements of the Group in
2015.
These interim statements have been prepared on a going concern
basis as the directors, having considered available relevant
information, have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the
foreseeable future.
The interim results are unaudited
but have been formally reviewed by the auditors and their report to
the Company is set out at the end of this Interim Report. The
information shown for the year ended 31
December 2014 does not constitute statutory accounts within
the meaning of Section 434 of the Companies Act 2006 and has been
extracted from the Group’s 2014 Annual Report, which has been filed
with the Registrar of Companies. The report of the auditors
on the accounts contained within the Group’s 2014 Annual Report was
unqualified and did not contain a statement under either Section
498(2) or Section 498(3) of the Companies Act 2006 regarding
inadequate accounting records or a failure to obtain necessary
information and explanations.
2.
Seasonality and cyclicality
The established businesses
historically have had no significant seasonality or cyclicality
affecting the interim results of the operations. However, the
launch of UTV Ireland in January 2015
has had a significant impact on the seasonality and cyclicality of
the Group. The Board have agreed upon and implemented an
action plan to improve the performance of UTV Ireland in order to
reduce this impact and as such remains confident that UTV Ireland
will create long-term strategic value for shareholders.
3.
Segmental information
The Group operates in three
principal areas of activity – radio in GB, radio in Ireland and commercial television. These
three principal areas of activity also form the basis on which the
Group is managed and reports are provided to the Chief Executive
and the Board.
Revenue
Six months ended 30 June 2015
|
Radio GB |
Radio
Ireland |
Television |
Total |
|
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
Sales to third parties |
25,839 |
8,814 |
23,609 |
58,262 |
Intersegmental sales |
344 |
678 |
932 |
1,954 |
|
––––––– |
––––––– |
––––––– |
––––––– |
|
26,183 |
9,492 |
24,541 |
60,216 |
|
––––––– |
––––––– |
––––––– |
––––––– |
Six months ended 30 June 2014
|
Radio GB |
Radio
Ireland |
Television |
Total |
|
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
Sales to third parties |
28,485 |
10,287 |
19,009 |
57,781 |
Intersegmental sales |
289 |
586 |
1,493 |
2,368 |
|
––––––– |
––––––– |
––––––– |
––––––– |
|
28,774 |
10,873 |
20,502 |
60,149 |
|
––––––– |
––––––– |
––––––– |
––––––– |
Results
Six months ended 30 June 2015
|
|
Radio GB |
Radio
Ireland |
Television |
Total |
|
|
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
|
Segment operating
profit/(loss) |
|
5,573 |
2,128 |
(3,295) |
4,406 |
|
|
––––––– |
––––––– |
––––––– |
|
|
|
|
|
|
|
Central costs |
|
|
|
|
(1,909) |
Income from Joint Ventures and
Associates |
|
|
|
|
185 |
|
|
|
|
|
––––––– |
Profit before tax and finance
costs |
|
|
|
|
2,682 |
|
|
|
|
|
|
Net finance cost |
|
|
|
|
(999) |
Foreign exchange loss |
|
|
|
|
(703) |
|
|
|
|
|
––––––– |
Profit before taxation |
|
|
|
|
980 |
|
|
|
|
|
––––––– |
Six months ended 30 June 2014
|
|
Radio GB |
Radio
Ireland |
Television |
Total |
|
|
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
|
Segment operating profit |
|
6,112 |
2,533 |
4,376 |
13,021 |
|
|
––––––– |
––––––– |
––––––– |
|
|
|
|
|
|
|
Central costs |
|
|
|
|
(1,971) |
Income from Joint Ventures and
Associates |
|
|
|
|
142 |
|
|
|
|
|
––––––– |
Profit before tax and finance
costs |
|
|
|
|
11,192 |
|
|
|
|
|
|
Net finance cost |
|
|
|
|
(1,257) |
Foreign exchange gain |
|
|
|
|
27 |
|
|
|
|
|
––––––– |
Profit before taxation |
|
|
|
|
9,962 |
|
|
|
|
|
––––––– |
4. Taxation
In the budget in July 2015, it was proposed that corporation tax
rates in the UK would be reduced to 19% in 2017 and 18% in
2020. As these have not yet been substantively enacted,
deferred tax has been calculated at 20% within this Interim
Report. If the proposed corporation tax rate changes were to
be fully approved, the relevant deferred tax assets and liabilities
would be restated accordingly resulting in a net exceptional credit
of approximately £1,780,000.
5. Dividends
|
30 June
2015 |
30 June
2014 |
|
£000 |
£000 |
Equity dividends on ordinary
shares |
|
|
Declared at the AGM during the
period |
|
|
Final for 2014: 5.43p (2013:
5.25p) |
5,205 |
5,035 |
|
––––––– |
––––––– |
|
|
|
Proposed but not recognised as a
liability at 30 June |
|
|
Interim for 2015: 1.82p (2014:
1.82p) |
1,744 |
1,745 |
|
––––––– |
––––––– |
The final dividend for 2014 was paid on 15 July 2015 (2013: 15
July 2014).
6. Earnings per
share
Basic earnings per share are
calculated based on the profit for the financial period
attributable to equity holders of the parent and on the weighted
average number of shares in issue during the period.
Adjusted earnings per share are
calculated based on the profit for the financial period
attributable to equity holders of the parent adjusted for the
impact of net finance costs under IAS 19 “Employee Benefits
(Revised)”. This calculation uses the weighted average number
of shares in issue during the year.
Diluted earnings per share are
calculated based on profit for the financial period attributable to
equity holders of the parent. Diluted adjusted earnings per
share are calculated based on profit for the financial period
attributable to equity holders of the parent before the impact of
net finance costs under IAS 19 “Employee Benefits (Revised)”.
In each case the weighted average number of shares is adjusted to
reflect the dilutive potential of the awards expected to be vested
on the Long Term Incentive Schemes.
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
|
30 June 2015 |
30 June 2014 |
|
Continuing
Operations |
Discontinued
Operations |
Total |
Continuing
Operations |
Discontinued
Operations |
Total |
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
Net (loss)/profit attributable to
equity holders |
(556) |
- |
(556) |
7,916 |
(61) |
7,855 |
Adjustments to net financing
costs |
28 |
- |
28 |
93 |
- |
93 |
|
–––––– |
–––––– |
–––––– |
–––––– |
–––––– |
–––––– |
Total adjusted and diluted
(loss)/profit attributable to equity holders |
(528) |
- |
(528) |
8,009 |
(61) |
7,948 |
|
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
Weighted
average number of shares
|
2015 |
2014 |
|
thousands |
thousands |
|
|
|
Shares in issue |
95,903 |
95,903 |
Weighted average number of
treasury shares |
(53) |
(29) |
|
––––––– |
––––––– |
Weighted average
number of shares for basic and
adjusted earnings per share (excluding treasury
shares) |
95,850 |
95,874 |
Effect of dilution of the Long
Term Incentive Plan |
238 |
824 |
|
––––––– |
––––––– |
|
96,088 |
96,698 |
|
––––––– |
––––––– |
Earnings per share
|
2015 |
2014 |
|
|
|
From continuing operations |
|
|
|
|
|
Basic |
(0.58)p |
8.26p |
|
––––––– |
––––––– |
|
|
|
Diluted |
(0.58)p |
8.19p |
|
––––––– |
––––––– |
|
|
|
Adjusted |
(0.55)p |
8.35p |
|
––––––– |
––––––– |
|
|
|
Diluted adjusted |
(0.55)p |
8.28p |
|
––––––– |
––––––– |
From continuing and discontinued
operations |
|
|
|
|
|
Basic |
(0.58)p |
8.20p |
|
––––––– |
––––––– |
|
|
|
Diluted |
(0.58)p |
8.13p |
|
––––––– |
––––––– |
|
|
|
Adjusted |
(0.55)p |
8.29p |
|
––––––– |
––––––– |
|
|
|
Diluted adjusted |
(0.55)p |
8.22p |
|
––––––– |
––––––– |
From discontinued
operations |
|
|
|
|
|
Basic |
- |
(0.06)p |
|
––––––– |
––––––– |
|
|
|
Diluted |
- |
(0.06)p |
|
––––––– |
––––––– |
|
|
|
Adjusted |
- |
(0.06)p |
|
––––––– |
––––––– |
|
|
|
Diluted adjusted |
- |
(0.06)p |
|
––––––– |
––––––– |
7. Property,
plant and equipment
During the period the Group incurred
£2,020,000 (2014: £1,627,000) of capital additions.
At 30 June
2015 the Group had entered into contractual commitments for
the acquisition of property, plant and equipment amounting to
£390,000 (2014: £Nil).
8. Financial
instruments
The Group’s principal financial
instruments comprise bank loans and cash and short-term
deposits. The main purpose of these financial instruments is
to raise finance for the Group’s operations. The Group has
various other financial assets and liabilities, such as trade
receivables and trade payables, which arise directly from its
operations. Contingent consideration arises in respect of the
disposal of businesses.
Set out below is a comparison by
category of carrying amounts and fair values of the Group’s
financial assets and liabilities, excluding trade receivables and
payables, that are carried in the financial statements.
|
30
June 2015 |
30
June 2014 |
31
December 2014 |
|
Carrying
amount |
Fair
value |
Carrying
amount |
Fair
value |
Carrying
amount |
Fair
value |
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
Financial assets |
|
|
|
|
|
|
Contingent consideration |
100 |
100 |
375 |
375 |
275 |
275 |
Derivative financial assets |
276 |
276 |
- |
- |
- |
- |
|
–––––– |
–––––– |
–––––– |
–––––– |
–––––– |
–––––– |
|
376 |
376 |
375 |
375 |
275 |
275 |
|
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
Interest-bearing loans and
borrowings |
59,772 |
59,772 |
57,384 |
57,384 |
59,067 |
59,067 |
|
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
––––––– |
The Group uses the following
hierarchy as set out in IFRS 7 “Financial Instruments: Disclosures”
and IFRS 13 “Fair Value measurement” for determining and disclosing
the fair value of financial instruments by valuation technique:
- Level 1: quoted (unadjusted) prices in active markets for
identical assets or liabilities;
- Level 2: other techniques for which all inputs which have a
significant effect on the recorded fair value are observable,
either directly or indirectly; and,
- Level 3: techniques which use inputs which have a significant
effect on the recorded fair value that are not based on observable
market data.
With the exception of the contingent
consideration receivable, which is considered as falling within
level 3, the Group’s other financial assets and liabilities are
considered as falling within level 2 of this hierarchy. For assets
and liabilities that are recognised in the financial statements on
a recurring basis, the Group determines whether transfers have
occurred between levels in the hierarchy by re-assessing
categorisation at the end of each reporting period. There
have been no transfers between level 1, 2 or 3 of the hierarchy or
changes in valuation techniques during the current period or in the
previous years.
Management have assessed that the
fair value of cash and cash equivalents, trade and other
receivables and trade and other payables approximate to their
carrying amounts largely due to the short-term maturities of these
instruments. The fair value of interest bearing loans and
borrowings are also a close approximation to their carrying value
given that they bear interest at floating rates based on
Libor/Euribor.
The bank loans at 30 June 2015 are stated net of deferred financing
costs amounting to £397,000
(30 June 2014: £618,000; 31 December 2014: £509,000).
The fair value of derivative
financial assets which relate to foreign exchange forward contracts
is determined by calculating the present value of future cash
flows, estimated using forward rates from third party market price
quotations.
Contingent consideration receivable
relates to amounts due in respect of the disposal of certain of the
Group’s New Media businesses in 2014. The fair value of these
amounts is measured using the present value of the
probability-weighted average of pay out associated with each
possible outcome of customer profitability or migration milestones
achieved under the related disposal agreements. The
range of possible outcomes in respect of these arrangements is
considered by the Directors to not be materially different from
their fair values at 30 June 2015. Changes in the fair value
of these amounts during the 6 months ended 30 June 2015 and in the year ended 31 December 2014 are not material to the Group’s
Income Statement.
9. Pension schemes
The IAS 19 deficit at 30 June 2015 is £3,229,000 (30 June 2014: £4,241,000) compared with a deficit
of £1,971,000 at 31 December 2014. The increase is
predominately due to the actuarial increase in the schemes
liabilities. During the period there was a discretionary
employer contribution of £1,209,000.
10. Related
party transactions
The nature of related parties
disclosed in the consolidated financial statements for the Group as
at and for the year ended 31 December
2014 has not changed. There have been no significant
related party transactions in the six month period ended
30 June 2015.
Risks and uncertainties
The 2014 Annual Report sets out the
most significant risk factors relating to UTV Media plc’s
operations in the Company’s judgement at the time of that
report. The Company does not consider that these principal
risks and uncertainties have changed. However additional
risks and uncertainties not currently known to the Company or that
the Company does not currently deem material may also have an
adverse effect on its business.
With respect to the risks and
uncertainties identified within the Annual Report, the Chairman’s
statement highlights those risks and uncertainties that will have
significant impact throughout 2015.
Statement of directors’ responsibilities
The interim report is the
responsibility of, and has been approved by, the directors of UTV
Media plc. Accordingly, the directors confirm that to the
best of their knowledge:
· the
condensed set of financial statements has been prepared in
accordance with IAS 34 “Interim Financial Reporting” as adopted by
the European Union;
· the
interim report includes a fair review of the information required
by the Disclosure and Transparency Rules:
- DTR 4.2.7R,
being an indication of important events that have occurred during
the first six months of the financial year and their
impact on the condensed set of financial statements, and a
description of the principal risks and uncertainties for the
remaining six months of the year; and
- DTR 4.2.8R,
being related party transactions that have taken place in the first
six months of the current financial year and that have materially
affected the financial position or performance of the entity during
that period, and any changes in the related party transactions
described in the last annual report that could do so.
By order of the Board:
John McCann
Group Chief Executive
28 August 2015
Independent review report to UTV Media plc
Introduction
We have been engaged by the Company
to review the condensed set of financial statements in the
half-yearly financial report for the 6 months ended 30 June 2015 which comprises the Group Income
Statement, Group Statement of Comprehensive Income, Group Balance
Sheet, Group Statement of Changes in Equity, Group Cash Flow
Statement and the related notes 1 to 10. We have read the other
information contained in the half yearly financial report and
considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set
of financial statements.
This report is made solely to the
company in accordance with guidance contained in ISRE 2410 (UK and
Ireland) "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity" issued by the Auditing Practices Board. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company, for our work, for this report, or
for the conclusions we have formed.
Directors' Responsibilities
The half-yearly financial report is
the responsibility of, and has been approved by, the directors. The
directors are responsible for preparing the half-yearly financial
report in accordance with the Disclosure and Transparency Rules of
the United Kingdom's Financial
Conduct Authority.
As disclosed in note 1, the annual
financial statements of the group are prepared in accordance with
IFRSs as adopted by the European Union. The condensed set of
financial statements included in this half-yearly financial report
has been prepared in accordance with International Accounting
Standard 34, "Interim Financial Reporting", as adopted by the
European Union.
Our Responsibility
Our responsibility is to express to
the Company a conclusion on the condensed set of financial
statements in the half-yearly financial report based on our
review.
Scope of Review
We conducted our review in
accordance with International Standard on Review Engagements (UK
and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of
interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and
Ireland) and consequently does not
enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has
come to our attention that causes us to believe that the condensed
set of financial statements in the half-yearly financial report for
the 6 months ended 30 June 2015 is
not prepared, in all material respects, in accordance with
International Accounting Standard 34 as adopted by the European
Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct
Authority.
Ernst & Young
LLP
Belfast
28 August 2015
Notice to shareholders
Adoption of Financial Reporting Standard (FRS) 101: Reduced
Disclosure Framework
Following the publication of FRS 100
‘Application of Financial Reporting Requirements’ by the Financial
Reporting Council, UTV Media plc is required to change the
financial reporting framework used in preparing its individual
company financial statements, which is currently previous UK GAAP,
for its financial year commencing 1 January
2015.
The Board considers that it is in
the best interests of the Group and the Company for UTV Media plc
to adopt FRS101 ‘Reduced Disclosure Framework’.
A shareholder or shareholders
holding in aggregate 5% or more of the total allotted shares in UTV
Media plc may serve objections to the use of the disclosure
exemptions on UTV Media plc, in writing, to its registered office
at Ormeau Road, Belfast, BT7
1EB.