TIDMCMX
RNS Number : 1826K
Catalyst Media Group PLC
31 December 2020
31 December 2020
Catalyst Media Group plc
("CMG" or the "Company")
Final Results for the year ended 30 June 2020
Notice of Annual General Meeting ("AGM")
The Board of Catalyst Media Group plc is pleased to announce the
final results for the Company for the year ended 30 June 2020. CMG
is a 20.54% shareholder in Sports Information Services (Holdings)
Ltd ("SIS") and the results for the year to 30 June 2020
incorporate its share of the profits of SIS for its year ended 31
March 2020.
Financial overview
-- CMG loss before taxation GBP1.1 million (following an
impairment charge of GBP1.2 million of the carrying value of the
interest in SIS) (2019: loss of GBP0.6 million following GBP4.3
million impairment charge)
-- Loss per share 5.27p (2019: loss per share 2.80p)
-- Net asset value per share 60.7p (2019: 67.7p)
-- SIS approved and paid a dividend of GBP5.0 million on 31 October 2019 to its shareholders
o On receipt of its share of the SIS dividend, being GBP1.03
million, the Board of CMG approved the distribution of GBP1.05
million to CMG's shareholders by way of a dividend of 5p per
share
-- SIS revenues for the year ended 31 March 2020 GBP212.6 million (2019: GBP241.4 million)
-- SIS operating profit, prior to litigation fees, of GBP3.6 million (2019: GBP7.4 milliuon)
Notice of AGM
The Annual Report and Accounts for the year ended 30 June 2020,
together with the notice of AGM and form of proxy, will shortly be
available on the Company's website at www.cmg-plc.com .
The AGM is to be held at 6 Stratton Street, London W1J 8LD on 10
February 2021 at 10.00 a.m. In light of the current Covid-19
situation, the General Meeting will be held as a closed
meeting.
Enquiries:
Catalyst Media Group Plc
Michael Rosenberg, Non-executive Chairman 07785 727 595
Melvin Lawson, Non-executive Director 020 7734 8111
Strand Hanson Limited 020 7409 3494
James Harris / Matthew Chandler / Jack Botros
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
Chairman's Statement
I am pleased to present the results for Catalyst Media Group plc
("CMG" or the "Company") for the year ended 30 June 2020, which
incorporates our share of profits for Sports Information Services
(Holdings) Ltd ("SIS") in which CMG has a 20.54% interest.
The main asset of CMG continues to be the 20.54% shareholding in
SIS, which, as detailed below. CMG equity accounts for its share in
the profits of SIS.
After taking account of CMG's share in the profits of SIS for
its year ended 31 March 2020 of GBP0.13 million (2019: GBP3.8
million), CMG recorded a loss before taxation of GBP1.1 million
(2019: loss of GBP0.6 million), following an impairment charge of
GBP1.2 million of its carrying value of its interest in SIS (2019:
GBP4.3 million). Net assets at the year end were GBP12.8 million
(60.7p per share) (2019: GBP14.7 million (69.7p per share)).
The Board of CMG (the "Board") has reviewed its investment in
SIS and has taken account of the current trading position of SIS.
As announced in June 2020 and November 2020, SIS's operations have
been impacted as a result of Covid-19. The disruption to racing
since mid-March 2020, together with the closure of licensed Betting
offices at various stages during the year, has and continues to
impact on SIS's trading in its current financial year. Accordingly,
whilst SIS has sought to take steps to mitigate the effects of
Covid-19 which are referred to later, SIS's management has informed
the Company that they expect that SIS will be loss-making in its
current financial year ending 31 March 2021. However, SIS's
management believe that the digital and international opportunities
which are now being successfully implemented should enable SIS to
return to profitability in subsequent years. Accordingly, and
notwithstanding SIS's management's view of the future opportunities
available to SIS, taking into account the impact of Covid-19 on the
operations of SIS, and the uncertainties concerning the future
possible liability that may arise from the TRP litigation, the
Board of CMG has decided to reduce the valuation of its investment
in SIS from GBP13.6 million to GBP12.5 million.
As previously reported, SIS paid a dividend of approximately
GBP5.0 million to its shareholders in October 2019, of which
GBP1.03 million was received by CMG. Upon receipt of such funds and
taking into account the Company's position at that time, the
Company distributed a total of GBP1.1 million to shareholders via a
dividend of 5p per share in November 2019.
SIS Betting - UK and Ireland Retail
SIS continues to provide a core service based on content from
Racecourse Media Group horseracing, SIS British Greyhound Service,
Irish Horseracing, Chelmsford City Horseracing, 49s and
International Horseracing on mid and long-term agreements to almost
the entire UK and Irish retail market, including all the major UK
bookmaking groups and the majority of the independent market.
Additionally, SIS supplies additional content and services to
its UK and Irish retail customers to cover early morning and
additional evening products and has recently extended these
services adding Mexican greyhound racing and renewing several
existing arrangements.
SIS Betting - International & Online
In the year SIS has continued to progress development of its
24/7 racing channels covering horseracing, greyhound racing,
virtual racing and mixed channels, with additional content and
improved user experience. SIS now has over 35 channels with
customers designed to maximise betting opportunities for
international retail and online operators and has signed numerous
international and online operators to multi-year agreements. SIS
continues to progress its strategy to increase distribution, in
both new and existing international and online markets, using
proprietary production technology as well as ultra-low latency
streaming and data pricing services.
In addition, this year saw the launch of the SIS Competitive
Gaming (e-sports) service during the lockdown in May with
commitment to customers for multiple 24/7 service channels.
SIS Results
As announced on 19 November 2020, SIS's profit before tax for
the year ended 31 March 2020, was GBP0.8 million.
SIS's cash balance as at 31 March 2020 was approximately GBP60.1
million and there has been no dividend declared nor paid by SIS
since the end of its financial year.
The results of SIS for the year ended 31 March 2020 are as
follows:
31 March 2020 31 March 2019
Before Before
individually Individually individually Individually
significant significant significant significant
items* Items* Total items* Items* Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Turnover 212,593 - 212,593 241,404 - 241,404
Operating expenses (208,975) (3,577) (212,552) (234,018) (5,147) (239,165)
--------------- -------------- ----------- --------------- -------------- -----------
Group operating profit 3,618 (3,577) 41 7,386 (5,147) 2,239
Profit on disposal
of operations - - - 17,836 - 17,836
Other interest receivable
and similar income 756 - 756 619 - 619
Interest payable and
similar expenses (1) - (1) (6) - (6)
--------------- -------------- ----------- --------------- -------------- -----------
Profit before taxation 4,373 (3,577) 796 25,835 (5,147) 20,688
Tax on profit (695) 509 (186) (3,391) 978 (2,413)
--------------- -------------- ----------- --------------- -------------- -----------
Profit after taxation 3,678 (3,068) 610 22,444 (4,169) 18,275
--------------- -------------- ----------- --------------- -------------- -----------
Other comprehensive
income 1,279 - 1,279 4,458 - 4,458
--------------- -------------- ----------- --------------- -------------- -----------
Total comprehensive
income 4,957 (3,068) 1,889 26,902 (4,169) 22,733
--------------- -------------- ----------- --------------- -------------- -----------
Notes: *Individually significant items relate to litigation
fees.
Share of net assets and liabilities
of associate
31 March 2020 31 March 2019
Total assets 97,150 119,521
Net liabilities (36,428) (55,688)
------------- -------------
Net assets 60,722 63,833
------------- -------------
India
As previously reported, the claim in respect of the Indian
project continues to be pursued but the outcome remains uncertain.
The legal and associated costs relating to this claim have been
significantly reduced but are still impacting profits. SIS have
accounted for legal costs as they arose.
Litigation
As previously announced on 9 October 2020, in the case brought
by The Racing Partnership ("TRP") and others against SIS's
subsidiary, Sports Information Services Limited ("SISL"), and
others, the Court of Appeal handed down judgment in relation to the
appeals against various elements of the High Court judgment of Mr
Justice Zacaroli in respect of liability issues in the Case as
follows:
1. Upheld SISL's appeal in relation to the finding of breach of
confidence in relation to certain race day data supplied to SISL by
a co-defendant; and
2. Upheld TRP's appeal against the dismissal of its claims for unlawful means conspiracy.
There has been no ruling given towards damages and SIS has,
after consultation with its advisors, sought an appeal to the
Supreme Court which it expects to happen in late 2021 if
granted.
Current Trading
As previously announced on 17 June 2020 and 19 November 2020,
SIS's operations were impacted between mid-March 2020 and June
2020, following the outbreak of Covid-19. Following the
cancellation of horse and greyhound racing from mid-March 2020, SIS
saw the resumption of horse and greyhound racing in England from 1
June 2020 and horseracing in Ireland from 8 June 2020, with the
reopening of Licenced Betting Offices in England from 15 June 2020
resulting in a return to full operations at SIS.
Further Covid-19 restrictions started to be implemented in
October and November 2020, as a result of which SIS saw further
temporary closure of the majority of the retail Licensed Betting
Offices which it provides services to. SIS continues to be able to
provide content for its customers during this time and has sought
to offset revenue shortfalls from retail with increased digital
revenues.
With the uncertainty and tiering system likely to continue
through to the end of SIS's financial year in March 2021, SIS's
management believes that there remains significant uncertainty as
to when retail markets will reopen in full.
SIS's profitability for the year to March 2021 has been
significantly impacted by Covid-19 and SIS's management expects to
make a loss for the current financial year, although the magnitude
of the loss is currently difficult to forecast given the uncertain
nature of the retail market return.
Despite the impact of Covid-19, SIS has continued to see growth
in its International and online customer base, most recently
launching channels for Latin American and European customers, and
has seen the launch of its Competitive Gaming (esports) product as
well as increased benefit from the acquisition of the 49's business
completed earlier in the year.
Outlook
As stated above, SIS's management have informed the Company that
they expect SIS to make a loss for the year ending March 2021 and,
accordingly, cash reserves are expected to be lower than in
previous years, though SIS's management expect that they will
however remain significant.
SIS has successfully handled the significant disruptions from
Covid-19 during 2020, which has particularly impacted the retail
customer business. Whilst SIS expects to make a loss for the year
ending March 2021 there has been significant acceleration of growth
in customers in its online business, which together with more
opportunities opening up internationally, provides diversification
of its activities and underpins the business for the future.
As a result of Covid-19 uncertainties, SIS has deferred any
dividend this financial year but will consider a dividend next
financial year.
CMG continues to be cash positive and operated at very low
overhead levels.
AGM
The next Annual General Meeting of CMG will take place on 10
February 2021. Formal Notice of the meeting is set out at the end
of the report and accounts together with the form of proxy.
Michael Rosenberg OBE
Chairman
30 December 2020
Strategic Report
The Directors present their strategic report for the year ended
30 June 2020.
Principal activities and review of the business
The principal activities of the business are outlined and
reviewed in the Chairman's Statement. A review of the business is
included within the Chairman's Statement.
Principal risks and uncertainties
Investment in SIS
The principal strategic investment of the Group is its 20.54%
holding in SIS. The Group is entitled to appoint one director to
the board of SIS which currently comprises eight directors, of
which five are appointed by shareholders, two are independent and
one is the Chairman. Although it can influence the board on
strategic decisions, the Group is not in a position to control the
day-to-day business and affairs of SIS other than with the support
of other directors and a majority of shareholders of SIS.
There are a number of risks and uncertainties associated with
the business of SIS which could potentially have an adverse impact
on the value of the Group's investment. At a technical level this
includes the fact that the customers of SIS rely upon real time
data and uninterrupted content delivery. Loss of content would
result in reduced quality of services and potentially reduced
income. Therefore SIS has adopted advanced disaster recovery
solutions and has built back up facilities which are located around
the country.
Financial risk
The Group is subject to financial risk through its exposure to
financial assets and liabilities. The Group's main financial risk
is its exposure to its investment in SIS.
Credit risk
The Group is not exposed to any credit risk.
Liquidity risk
There is a very low risk that the Group will encounter
difficulty in meeting its financial obligations as they fall due,
on the basis that the Group operates with minimal overheads and
cash flow is well managed.
The Group's policy is to ensure that it will always have
sufficient cash to allow it to meet its liabilities when they
become due. The principal liabilities of the Group and Company
arise in respect of administrative expenditure and trade and other
payables. Trade and other payables are all payable within three
months.
The Board receives cash flow projections on a regular basis as
well as information on cash balances.
Key Performance Indicators (KPIs)
The Company's key performance indicators used by the Board in
monitoring the general performance of the Group and its investments
are:
Net asset value per share
The net asset value per share of the Group was 61 pence as at 30
June 2020 (2019: 70 pence). The net asset value per share decreased
slightly during the year to 30 June 2020. The net asset value of
the Group as at 30 June 2020 and 30 June 2019 is shown in the
Group's consolidated statement of financial position on page
20.
Administrative expenses
The Directors closely monitor the anticipated overheads for the
Group and ensure that these are kept to a minimum.
Earnings per share (EPS)
EPS shows the relative performance year-on-year of the Group's
profitability measured as an amount of profit or loss attributable
to one ordinary share. The calculation of earnings per share is
based on the weighted average number of issued ordinary shares in
issue for the financial year and the profit/(loss) after taxation
attributable to ordinary shareholders. EPS in respect of operations
for the year and the previous year is shown in the Group
consolidated statement of comprehensive income on page 19.
Key Performance Indicators of Associate
The Directors additionally monitor the performance of SIS in
order to evaluate the general performance of the Group.
Michael Rosenberg OBE
Chairman
30 December 2020
Consolidated statement of comprehensive income for the year
ended 30 June 2020
Year Year
ended ended
30 June 30 June
2020 2019
Note GBP GBP
----- ------------ ------------
Revenue 3 25,000 25,000
Cost of sales - -
------------ ------------
Gross profit 25,000 25,000
Administrative expenses (123,600) (119,411)
------------ ------------
Operating loss (98,600) (94,411)
Financial income 9 712 5,312
Financial costs 10 - -
------------ ------------
Net financial income 712 5,312
Share of profit of equity-accounted
associate, net of tax 2 125,294 3,753,685
Impairment of equity-accounted associate (1,160,843) (4,270,701)
Loss before taxation (1,133,437) (606,115)
------------ ------------
Taxation 11 25,583 16,623
Loss for the year (1,107,854) (589,492)
------------ ------------
Share of other comprehensive profit
of associate 2 262,707 915,673
Total comprehensive loss for the
year (845,147) 326,181
------------ ------------
Attributable to equity holders of
the Company (845,147) 326,181
------------ ------------
Loss per share:
Basic 12 (5.27p) (2.80p)
------------ ------------
Diluted 12 (5.27p) (2.80p)
------------ ------------
Consolidated statement of financial position as at 30 June
2020
30 June 30 June
202 0 2019
Note GBP GBP
----- ----------- -----------
Assets
Non-current assets
Investment in associate 2 12,474,980 14,274,706
12,474,980 14,274,706
----------- -----------
Current assets
Trade and other receivables 14 62,741 39,007
Cash and cash equivalents 15 270,654 383,612
333,395 422,619
----------- -----------
Total assets 12,808,375 14,697,325
----------- -----------
Equity and liabilities
Capital and reserves attributable to equity holders of the parent
Share capital 16 2,103,202 2,103,202
Capital redemption reserve 711,117 711,117
Merger reserve 2,402,674 2,402,674
Retained profits 7,553,900 9,450,670
Total equity 12,770,893 14,667,663
----------- -----------
Current liabilities
Trade and other payables 18 37,482 29,662
Corporation tax payable 19 - -
37,482 29,662
Total equity and liabilities 12,808,375 14,697,325
----------- -----------
The financial statements were approved by the Board of Directors
and authorised for issue on 30 December 2020.
Michael Rosenberg OBE
Director
Consolidated statement of changes in equity for the year ended
30 June 2020
Attributable to equity holders of the Group
Capital Total
Share Share Redemption Merger Retained Shareholders
30 June 2020 Capital Premium Reserve Reserve Profits Equity
GBP GBP GBP GBP GBP GBP
At 1 July 2019 2,103,202 - 711,117 2,402,674 9,450,670 14,667,663
Loss for the
year - - - - (1,107,854) (1,107,854)
Other comprehensive
income:
Share of other
comprehensive
profit of associate - - - - 262,707 262,707
---------- --------- ------------ ---------- ------------ --------------
Total comprehensive
profit for the
period - - (845,147) (845,147)
Dividends paid (1,051,623) (1,051,623)
---------- --------- ------------ ---------- ------------ --------------
At 30 June 2020 2,103,202 - 711,117 2,402,674 7,553,900 12,770,893
---------- --------- ------------ ---------- ------------ --------------
The following describes the nature and purpose of each reserve
within owners' equity:
Share capital Amount subscribed for shares at nominal
value.
Share premium Amount subscribed for share capital in
excess of nominal value.
Capital redemption Amounts arising from the purchase by the
reserve group of its own shares.
Merger reserve Amounts arising from the merger of subsidiary
investments.
Retained profits Cumulative profit of the Group attributable
to equity shareholders.
Attributable to equity holders of the Group
Capital Total
Share Share Redemption Merger Retained Shareholders
30 June 2019 Capital Premium Reserve Reserve Profits Equity
GBP GBP GBP GBP GBP GBP
At 1 July 2018 2,103,202 - 711,117 2,402,674 21,323,087 26,540,080
Loss for the
year - - - - (589,492) (589,492)
Other comprehensive
income
Share of other
comprehensive
profit of associate - - - - 915,673 915,673
---------- --------- ------------ ---------- ------------- --------------
Total comprehensive
profit for the
period - - - - 326,181 326,181
Dividends paid (12,198,598) (12,198,598)
---------- --------- ------------ ---------- ------------- --------------
At 30 June 2019 2,103,202 - 711,117 2,402,674 9,450,670 14,667,663
---------- --------- ------------ ---------- ------------- --------------
Consolidated statement of cash flows for the year ended 30 June
2020
Year ended Year ended
30 June 30 June
202 0 2019
Note GBP GBP
----- ------------ -------------
Cash flow from operating activities
(Loss) / profit before taxation (1,133,437) (606,115)
Adjustments for:
Share of profit from associate (125,294) (3,753,685)
Impairment of investment in associate 1,160,843 4,270,701
Finance income (712) (5,312)
Corporation taxes recovered - 4,365
Net cash flow used in operating activities before changes in working capital (98,600) (90,046)
Increase in trade and other receivables 1,849 1,229
Decrease in trade and other payables 7,820 (579)
Net cash flow used in operating activities (88,931) (89,396)
Investing activities
Dividend received 1,026,884 8,214,659
Interest received 712 5,312
Net cash flow from investing activities 1,027,596 8,219,971
Financing activities
Dividends paid (1,051,623) (12,198,598)
Net cash flow used in financing activities (1,051,623) (12,198,598)
Net decrease in cash and cash equivalents in the year (112,958) ( 4,068,023)
Cash and cash equivalents at the beginning of the year 383,612 4,451,635
------------ -------------
Cash and cash equivalents at the end of the year 15 270,654 383,612
------------ -------------
Notes to the financial statements
1. Basis of preparation and significant accounting policies
These consolidated financial statements of Catalyst Media Group
plc have been prepared in accordance with accepted International
Financial Reporting Standards (IFRSs), International Accounting
Standards (IAS) and International Financial Reporting
Interpretations Committee (IFRIC) interpretations (collectively
"IFRSs") as adopted for use in the European Union and as issued by
the International Accounting Standards Board and with those parts
of the Companies Act 2006 applicable to companies reporting under
IFRS. The accounting policies listed below include those applicable
to SIS, given its materiality to the Group as a whole.
Catalyst Media Group plc is a publicly limited company
registered in England and Wales where it is domiciled for tax
purposes.
The financial statements are prepared under the historical cost
convention.
These results are audited, however the financial information set
out in this announcement does not constitute the Group's statutory
accounts for the year ended 30 June 2020, but is derived from the
2020 Report and financial statements. The auditors have issued an
unqualified audit report in respect to these financial
statements.
Going concern
The Directors can report that based on the Group's budgets and
financial projections, they have satisfied themselves that the
business is a going concern. In assessing the Group as a going
concern, the Directors are also mindful of the business of SIS,
that provides the entire value of the Group. The Directors are
satisfied that SIS is a going concern. The Board has a reasonable
expectation that the Company and Group have adequate resources and
facilities to continue in operational existence for the foreseeable
future and therefore the accounts are prepared on a going concern
basis.
2. Investment in associate
Year Ended 30 June 2020 Group
GBP
Cost
At 1 July 2019 14,274,706
Share of profit - 2020 125,294
Share of other comprehensive
profit - 2020 262,707
Dividend received - 2020 (1,026,884)
Impairment of equity-accounted
associate (1,160,843)
At 30 June 2020 12,474,980
Year Ended 30 June 2019 Group
GBP
Cost
At 1 July 2018 22,090,708
Share of profit - 2019 3,753,685
Share of other comprehensive
loss - 2019 915,673
Dividend received - 2019 (8,214,659)
Impairment of equity-accounted
associate (4,270,701)
-----------
At 30 June 2019 14,274,706
-----------
The Group's interest in the associate, SIS, a company
incorporated in England and Wales, is held by Alternateport
Limited. Alternateport Limited holds an investment of 20.54% in the
equity share capital of SIS and is entitled to appoint a director
and alternate director to the SIS board. This right has been
exercised since acquisition. Alternateport Limited is a wholly
owned subsidiary of Catalyst Media Holdings Limited, a wholly owned
subsidiary of Catalyst Media Group plc.
The Directors have noted that subsequent to SIS's 31 March 2020
reporting date, it has recorded significant losses as a result of
the restrictions imposed due to the Covid-19 pandemic. These losses
have not been formally reported on, or audited, and the Directors
note that it is not considered practicable for SIS to prepare
financial statements to 30 June 2020 under IFRS.
The Directors have assessed that while the impact of Covid-19 is
significant, given it relates to broader circumstances rather than
discretely identifiable transactions, it is not appropriate to
adjust for its share of SIS's losses for the period 1 April 2020 to
30 June 2020. These losses, together with the Group's share of
SIS's results for its remaining financial period to 31 March 2021,
will be reflected in the Group's financial statements for the year
ended 30 June 2020.
A copy of the strategic forecasts prepared by SIS was made
available to the Directors of CMG showing management forecasts of
the income statement, statement of financial position and
statements of cash flow. SIS's management have assumed a relatively
low level of future profits at a steady level over a period of five
years and applied a discount rate of 15% to arrive at a present
value. In conjunction with these forecasts, the potential impact of
the settlement of the ongoing TRP litigation has been considered.
The losses made by SIS for the period 1 April 2020 to 30 June 2020
have also been included in the analysis.
After reviewing the forecasts and other factors detailed above,
the Directors concluded that the carrying value of the investment
in SIS should be reduced to GBP12.5 million. The value of the
investment in SIS has therefore been impaired by GBP1.2 million to
achieve this.
Share of profit of associate 2020 2020 2019
CMG share CMG share
SIS Total
GBP'000 GBP'000
GBP'000
Revenue 212,593 43,667 49,584
---------- ----------- ----------
Operating profit after
individually significant
items 3,618 743 1,517
Net interest receivable 755 155 126
Profit / (losses) on
business wind down (3,577) (735) 2,606
Profit on disposal of - - -
joint venture
Profit on disposal of - - -
fixed asset
----------
Profit before tax 796 163 4,249
Taxation (186) (38) (496)
---------- ----------- ----------
Share of profit after
taxation 610 125 3,753
---------- -----------
Net income from associate 610 125 3,753
---------- ----------- ----------
Other comprehensive
income:
Actuarial gain 1,968 404 1,443
Deferred tax (689) (141) (500)
Change in value of hedging
instrument - - (27)
---------- ----------- ----------
1,279 263 916
Share of net assets
and liabilities of associate
Net assets 93,833 19,273 24,550
Net liabilities (33,111) (6,801) (11,438)
---------- ----------- ----------
Net equity 60,722 12,472 13,112
---------- ----------- ----------
As at 30 June 2020, SIS was continuing to deal with tax and
legal issues that arose from the 2010 Commonwealth Games (CWG) in
Delhi, India. SIS, via a partnership of the name of SIS Live,
delivered the host broadcast production and facilities contract for
the 2010 CWG. Given continuing scrutiny of the entire CWG project
immediately after the closure of the Games, approximately 40% of
the contract has still not been paid. A provision of GBP5.9 million
was made in respect of this non-payment in the SIS financial
statements for the year ended 31 March 2011.
As at 30 June 2020, SIS continued to be involved in a litigation
case brought by The Racing Partnership ("TRP") and others against
SIS's subsidiary, Sports Information Services Limited ("SISL"), and
others. SISL has successfully defended two of the three claims and,
following the year end, both SISL and TRP have been granted
permission by the judge to appeal elements of the judgement. SISL
have been ordered by the judge to pay 20% of TRP's costs.
SIS Live received a draft assessment in March 2014 from Indian
tax authorities in relation to the year ended March 2011. SIS has
strongly rejected the draft assessment, and continues to appeal it
through the Indian judiciary system. As appeal proceedings continue
it is not possible to quantify the potential tax liability that may
arise of the subsequent recoverability of that amount through the
courts and therefore no further provision has been made in the
accounts of SIS.
On 27 June 2020, SIS acquired 100% of the share capital of 49's
Limited for a net consideration of GBP4.8m with a potential for
further deferred consideration to follow contingent on company
performance. While the acquisition of 49's Limited is a significant
event arising after SIS's financial reporting date of 31 March
2020, the Directors have concluded that its impact on the Group's
share of SIS's results to 30 June 2020 is immaterial and therefore
does not require adjusting for.
3. Post balance sheet events
There were no events subsequent to the Statement of Financial
Position which require disclosure.
See note 2 for a description of the impact of the post balance
sheet events as they relate to SIS's reporting date (31 March 2020)
on the Group's valuation of the investment in associate as at 30
June 2020.
4. Annual Report
The Annual Report for the year ended 30 June 2020 will be
available today from the Company's website www.cmg-plc.com .
The Annual General Meeting will be held at 6 Stratton Street,
London W1J 8LD, at 10.00 a.m. on 10 February 2021.
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December 31, 2020 02:00 ET (07:00 GMT)
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