MEDIAZEST PLC

Interim / Quarterly Report • Dec 23, 2014

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

MEDIAZEST PLC - Half-yearly Report

PR Newswire

London, December 23

MediaZest plcUnaudited results for the six months ended 30 September 2014CHAIRMAN'S STATEMENTIntroductionI am pleased to report unaudited results for the six months ended 30 September2014 for MediaZest plc ("MediaZest", the "Company" and, together with itswholly owned subsidiary company MediaZest International Ltd (formerly TouchVision Limited) (the "Group").Financial ReviewRevenue for the period was £1,579,000 (2013: £1,572,000) and the Group made aloss for the period after taxation of £203,000 (2013: £183,000), interest of £26,000 (2013: £77,000), administrative expenses before depreciation of £708,000(2013: £674,000), depreciation of £27,000 (2013: £18,000) and amortization of £2,000 (2013: £nil).Gross profit was £528,000 (2013: £576,000). The basic and fully diluted lossper share was 0.022 pence (2013: 0.033 pence). EBITDA was a loss of £180,000(2013: £98,000).Operational ReviewThe Group has made ongoing progress in the last 12 months. Some notableachievements during the 6 month period to 30 September 2014 were the successfulcompletion of the FIFA World Cup Trophy Tour project with Coca-Cola ("FWCTT")which ended April 2014 (the financial benefits of which predominantly fell intothe preceding period); the much acclaimed Hyundai Rockar Bluewater DigitalShowroom which began in the period and launched in November 2014 with revenuessplit accordingly; Kuoni's North East flagship Newcastle outlet; audio visualand projection work for a range of Harry Ramsden's seaside restaurant locationsas well as hologram creation for UK Trade & Industry (UKTI) at an internationalexhibition in Germany. Notwithstanding, the Group continues to develop andprovide services to a diverse and high profile client base both domesticallyand overseas. The momentum generated by the FWCTT project and others has helpedthe Group to attract these new projects within the period and as a result matchthe comparable period's improved top line revenue figure.At the end of 2013, the Board identified and implemented a complementarystrategy: to focus sales effort on a concentrated number of high profileclients, providing innovative audio visual solutions which have the potentialto generate ongoing long term business opportunities, and to pursue greaterrecurring revenues by developing its own products.The strategic objective is to generate client loyalty through excellence ofdelivery coupled with offering a diverse product range including the Group'sown products. In particular the Board believes that such an approach willbenefit the business by helping it to increase recurring revenues throughservice and maintenance, content production and management, and additionalconsultancy and data analysis work.Intellectual PropertyIn December 2013, the Board identified three areas where it believed the Groupcould embark upon product development which would allow the Company to achieveimproved revenue, whilst contemporaneously creating intellectual propertyassets that would enhance the Group's valuation.The decision was made to prioritise audience measurement software, and theGroup developed and tested its own product in this area during the year,"MediaZest Retail Analytics", before releasing it to the market in November2014. A first system has already been sold and the Company is in negotiationsto test its potential with a number of existing and new clients.Costs associated with the development of this product are capitalised in theintellectual property section of the Consolidated Statement of FinancialPosition.Operating costsThe Board continues to maintain tight control of costs whilst increasinginvestment in the sales process. Administrative costs for the period to 30September 2014 were £708,000 (2013: £674,000) and this increase was partly as aresult of increased costs of the London showroom in these 6 months of £35,000and one off sales consulting costs of £13,000. The London showroom was openedin July 2013 and hence lower costs for this asset were incurred in thecomparable period.OutlookThe Company has already seen initial success with this strategy; particularlyin the period since July 2014. It has already led to several large scaleopportunities that the Group is currently pursuing, and has also enabled theGroup to gain and deliver successfully four high profile projects in recentmonths, with revenue for these projects largely falling in the 6 month periodto 30 September 2014.New business wins in the second half of the calendar year, coupled withsuccessful deployment has resulted in the Group entering 2015 with severalclients already in discussions regarding additional projects which isencouraging.The Board believes that the development of the MediaZest Retail Analyticsproduct holds much promise for the Group and the Board believes it has thepotential to generate significant and quality revenue for the Group goingforward.FundraisingOn 17 December 2014, the Company announced a conditional placing of 125,142,900shares at 0.35p per share to raise £438,000 before expenses. The Companyannounced yesterday that it had posted a circular to Shareholders containingthe notice of the General Meeting to be held at 11.00 a.m. on 8 January 2015which is being convened for the purpose of proposing the resolutions which arenecessary to implement the proposed placing. The circular sets out thebackground to and reasons for the placing.Lance O'Neill 23 December 2014ChairmanMediaZest plc CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014 Unaudited Unaudited Audited Six months Six months 12 months Notes 30-Sep-14 30-Sep-13 31-Mar-14 £'000 £'000 £'000Continuing OperationsRevenue 1,579 1,572 2,944Cost of sales (1,051) (996) (1,978)Gross profit 528 576 966Administrative expenses (708) (674) (1,474)EBITDA (180) (98) (508)Administrative expenses - depreciation & (29) (18) (39)amortisationOperating Loss (209) (116) (547)Interest (26) (77) (128)Loss before taxation (235) (193) (675)Taxation credit 32 10 22Loss for the period and total (203) (183) (653)comprehensive loss for the periodattributable to the owner of the parentLoss per ordinary 0.1p shareBasic 2 (0.022p) (0.033p) (0.09p)Diluted 2 (0.022p) (0.033p) (0.09p)MediaZest plc CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2014 Unaudited Unaudited Audited As at As at As at 31-Mar- 30-Sep-14 30-Sep-13 14 £'000 £'000 £'000Non-current assetsGoodwill 2,772 2,772 2,772Property, plant and equipment 113 51 60Intellectual property 46 51 60Total non-current assets 2,931 2,823 2,832Current assetsInventories 310 142 95Trade and other receivables 408 440 766Cash and cash equivalents 31 - 268Total current assets 749 582 1,129Current liabilitiesTrade and other payables (1,446) (1,244) (1,522)Financial liabilities (198) (393) (200)Total current liabilities (1,644) (1,637) (1,722)Net current liabilities (897) (1,055) (593)Net assets 2,036 1,768 2,239EquityShare Capital 3,174 2,879 3,174Share premium account 4,871 4,225 4,871Other reserves 7 7 7Retained earnings (6,016) (5,343) (5,813)Total equity 2,036 1,768 2,239MediaZest plc CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014 Share Share Share Retained Total Options Capital Premium Reserves Earnings Equity £'000 £'000 £'000 £'000 £'000Balance at 31 March 2013 2,736 4,029 7 (5,160) 1,612Loss for the period - - - (183) (183)Total comprehensive income for - - - (183) (183)the periodIssue of share capital 143 215 - - 358Share issue costs - (19) - - (19)Balance at 30 September 2013 2,879 4,225 7 (5,343) 1,768Loss for the period - - - (470) (470)Total comprehensive income for - - - (470) (470)the periodIssue of share capital 295 736 - - 1,031Share issue costs - (90) - - (90)Balance at 31 March 2014 3,174 4,871 7 (5,813) 2,239Loss for the period - - - (203) (203)Total comprehensive income for - - - (203) (203)the periodBalance at 30 September 2014 3,174 4,871 7 (6,016) 2,036MediaZest plcCONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014 Unaudited Unaudited Audited Six Six 12 months months months Note 30-Sep-14 30-Sep-13 31-Mar-14 £'000 £'000 £'000Net cash (used in) / generated from 3 (34) 12 (418)operating activitiesTaxation 22 - 22Investing activities cash flowPurchase of plant and machinery (82) (6) (36)Disposal of plant and machinery 2 - 3Purchase of intellectual property (48) - -Purchase of leasehold improvements - - (3)Net cash (used in) investing activities (128) (6) (36)Financing activities cash flowRepayment of borrowings - (8) (8)Other short term financing 58 - -Other loan repayments - (77) (77)Shareholder loan repayments (2) (200) (330)Interest paid (26) (77) (128)Interest repaid with equity - - (169)Loans repaid with equity - - (11)Proceeds of issue of shares - 308 1,389Share issue costs - (19) (109)Net cash (used in) / generated from 30 (73) 557financing activitiesNet (decrease) / increase in cash and cash (110) (67) 125equivalentsCash and cash equivalents at beginning of (74) (199) (199)period / yearCash and cash equivalents at end of period 4 (184) (266) (74)/ yearMediaZest plcNOTES TO THE FINANCIAL INFORMATION 1. Basis of preparationThe Group's annual financial statements are prepared in accordance withInternational Financial Reporting Standards (IFRS) as adopted for use in the EUapplied in accordance with the provisions of the Companies Act 2006 applicableto companies preparing financial statements under IFRS.Accordingly, the consolidated half-yearly financial information in this reporthas been prepared using accounting policies consistent with IFRS. IFRS issubject to amendment and interpretation by the International AccountingStandards Board (IASB) and the IFRS Interpretations Committee and there is anongoing process of review and endorsement by the European Commission. Thefinancial information has been prepared on the basis of IFRS that the Directorsexpect to be applicable as at 31 March 2015.This interim report does not comply with IAS 34 "Interim Financial Reporting"(as adopted by the European Union), as permissible under the AIM Rules forCompanies.Going ConcernThe Directors have considered financial projections based upon known futureinvoicing, existing contracts, pipeline of new business and the number ofopportunities it is currently working on, particularly in the Retail sector. Inaddition, these forecasts have been considered in the light of the ongoingeconomic difficulties in the UK and global economy, previous experience of themarkets in which the Group operates and the seasonal nature of those markets,as well as the likely impact of ongoing reductions to public sector spending.These forecasts indicate that the Group will generate sufficient cash resourcesto meet its liabilities as they fall due over the next 12 month period from thedate of this interim announcement.As a result the Directors consider that it is appropriate to draw up theaccounts on a going concern basis. Accordingly, no adjustments have been madeto reflect any write downs or provisions that would be necessary should theGroup prove not to be a going concern, including further provisions forimpairment to goodwill and investments in Group companies.Non-statutory accountsThe financial information contained in this document does not constitutestatutory accounts within the meaning of Section 434 of the Companies Act 2006("the Act").The statutory accounts for the year ended 31 March 2014 have been filed withthe Registrar of Companies. The report of the auditors on those statutoryaccounts was unqualified, did not draw attention to any matters by way ofemphasis and did not contain a statement under Section 498(2) or (3) of theAct. The financial information for the six months ended 30 September 2014 and30 September 2013 is not audited.2. Loss per shareBasic loss per share is calculated by dividing the loss attributed to ordinaryshareholders of £203,000 (2013: £183,000) by the weighted average number ofshares during the period of 914,614,741 (2013: 548,759,406). The diluted lossper share is identical to that used for basic loss per share as the exercise ofwarrants would have the effect of reducing the loss per share and therefore isnot dilutive under International Accounting Standard 33 "Earnings per Share".MediaZest plcNOTES TO THE FINANCIAL INFORMATION (Continued)3. Cash used in operations Unaudited Unaudited Audited Six months Six months 12 months 30-Sep-14 30-Sep-13 31-Mar-14 £'000 £'000 £'000Operating loss (209) (116) (547)Depreciation of tangible assets 27 18 39Amortisation of intangible assets 2 - -Decrease / (increase) in inventories (215) (19) 28Increase / (decrease) in payables 3 44 313Decrease / (increase) in receivables 358 85 (251)Net cash inflow/(outflow) from (34) 12 (418)operating activities4. Cash and cash equivalents Unaudited Unaudited Audited Six months Six months 12 months 30-Sep-14 30-Sep-13 31-Mar-14 £'000 £'000 £'000Cash held at bank 31 - 268Bank overdraft - (63) -Invoice discounting facility (215) (203) (342) (184) (266) (74)5. Subsequent eventsOn 17 December, the Company announced a conditional placing of 125,142,900shares at 0.35p per share to raise £438,000 before expenses. The shares areexpected to be admitted to AIM on 9 January 2015 subject to the passing of thenecessary resolutions at a General Meeting to be held on 8 January 2015.6. Availability of the Half-early ReportCopies of the Half-yearly Report will be available to the public from theCompany's website, www.mediazest.com, and from the Company Secretary at theCompany's registered address at 27/28 Eastcastle Street, London, W1W 8DH.MediaZest PlcTel: 020 7724 5680Geoff RobertsonChief Executive OfficerNominated AdviserNorthland Capital Partners LimitedTel: 020 7382 1100Gavin Burnell/Edward HuttonBrokerHybridan LLP020 3713 4581/4582/4583

Claire Noyce/William Lynne/Niall Pearson