TIDMCXM
RNS Number : 3294M
Conexion Media Group PLC
14 September 2012
CONEXION MEDIA GROUP PLC
Chairman's Statement
This document is available on the company's website
www.conexion-media.com
We continue to sign new deals for both music publishing and
secondary rights. Our digital music platform, operated by our Los
Angeles office, is placing more of our music in U.S. films and TV
programmes. This will help to replace revenues lost because of the
reduction in sales of recorded music. We also have several TV
co-productions in development which will provide future income
streams. Our focus is on broadening the intellectual property
rights that the company administers.
The key performance indicators used by the board and executive
team to monitor performance against budgets and forecasts as well
as to measure progress against our strategic objectives are
revenue, gross profit, operating costs, and operating profit before
amortisation and depreciation.
Revenue of GBP1,035k was slightly lower than in the first half
of 2011. However an improved margin due to the mix of business
resulted in an increase in gross profit to GBP536k. Operating costs
of GBP744k were down 7% compared with the same period last year.
This was a result of continued consolidation of the back office
functions of our Nashville and Los Angeles operations. After
amortisation and finance costs, the loss for the period was
GBP486k. (First half 2011: loss GBP577k.) Our revenue is generally
higher in the second half of the year, because of the collection
societies' distribution dates.
Guy Fletcher
14th September 2012
For further information please contact:
Conexion Media
Justin Sherry, CEO, justin@conexion-media.com 020 8987 4150
finnCap
Corporate Finance
Matthew Robinson/Ben Thompson 020 7220 0500
Corporate Broking
Stephen Norcross 020 7220 0500
CONEXION MEDIA GROUP PLC
Consolidated Income Statement
For the six months ended 30th June 2012
Jan-June 2012 Jan-June Year to
2011 December
2011
unaudited unaudited audited
GBP GBP GBP
Revenue 1,035,809 1,065,640 2,716,435
Direct costs (499,367) (542,078) (1,197,809)
Gross Profit 536,442 523,562 1,518,626
Operating costs (743,637) (799,050) (1,522,575)
Operating loss before amortisation and depreciation (207,195) (275,488) (3,949)
Amortisation and depreciation (237,698) (268,236) (515,772)
Operating loss (444,893) (543,724) (519,721)
Finance income 85 42 170
Finance costs (42,872) (33,766) (72,214)
Amounts written off investments 1,279 - (36,383)
Loss before taxation (486,401) (577,448) (628,148)
Taxation - - -
Loss for the period (486,401) (577,448) (628,148)
Attributable to:
Non-controlling interests (9,779) (23,719) (37,059)
Owners of the parent company (476,622) (553,729) (591,089)
Earnings/(loss) per share - continuing operations
Basic earnings per share (pence) (0.61) (0.71) (0.75)
Diluted earnings per share (pence) (0.61) (0.71) (0.75)
Consolidated Statement of Comprehensive Income
For the six months ended 30(th) June 2012
Jan-June Jan-June Year to
2012 2011 December
2011
unaudited unaudited audited
GBP GBP GBP
(Loss) for financial year (486,401) (577,448) (628,148)
Currency translation differences 14,848 49,198 (319)
Total Comprehensive Income (471,553) (528,250) (628,467)
Attributable to:
Non-controlling interests (9,779) (23,719) (37,059)
Owners of the parent company (461,774) (504,531) (591,408)
Total Comprehensive Income (471,553) (528,250) (628,467)
CONEXION MEDIA GROUP PLC
Consolidated Statement of Financial Position
As at 30th June 2012
As at As at As at
30(th) June 30(th) June 31(st) December
2012 2011 2011
unaudited unaudited audited
GBP GBP GBP
Non-current assets
Intangible assets
Goodwill 1,276,044 1,370,520 1,276,044
Other 3,124,619 3,582,644 3,369,462
Property, plant and equipment 4,528 7,660 7,474
Trade and other receivables 23,681 23,645 23,698
4,428,872 4,984,469 4,676,678
Current assets
Trade and other receivables 1,194,812 1,208,923 1,067,465
Cash and short term deposits 147,728 76,893 278,559
1,342,540 1,285,816 1,346,024
Current liabilities
Trade and other payables (5,904,626) (5,846,915) (5,685,565)
Amounts due to related parties (975,000) (975,000) (975,000)
Bank overdraft and loans (138,047) (142,778) (147,566)
Current tax liabilities - - -
(7,017,673) (6,964,693) (6,808,131)
Net current liabilities (5,675,133) (5,678,877) (5,462,107)
Total assets less current liabilities (1,246,261) (694,408) (785,429)
Non-current liabilities
Amounts due to related parties - - -
Net assets (1,246,261) (694,408) (785,429)
Equity
Called up share capital 783,926 783,926 783,926
Share premium account 8,356,254 8,356,254 8,356,254
Other reserves - 2,654 1,301
Shares to be issued 518,366 507,392 506,366
Retained earnings (11,163,412) (10,626,339) (10,701,639)
Equity share owners' funds (1,504,866) (976,113) (1,053,792)
Non-controlling interest 258,605 281,705 268,363
Total equity (1,246,261) (694,408) (785,429)
CONEXION MEDIA GROUP PLC
Consolidated Statement of Cash Flows
For the six months ended 30th June 2012
Jan-June Jan-June Year to
2012 2011 December
2011
unaudited unaudited audited
Note GBP GBP GBP
Operating cash flow 1 (85,952) (312,144) (25,293)
Net finance costs (42,787) (33,724) (72,044)
Net cash inflow from operating activities (128,739) (345,868) (97,337)
Investing activities
Purchase of property, plant and equipment - (1,781) (5,171)
Net cash flow from investing activities - (1,781) (5,171)
Financing activities
Increase/(decrease) in bank loan and
overdraft (9,519) (18,956) (14,168)
Repayment of loans - (53,875) (53,875)
Net cash (outflow)/inflow from financing (9,519) (72,831) (68,043)
Foreign exchange differences 7,427 32,502 (15,761)
(Decrease)/Increase in cash and cash
equivalents (130,831) (387,978) (186,312)
Cash and cash equivalents at start
of period 278,559 464,871 464,871
Cash and cash equivalents at end of
period 147,728 76,893 278,559
CONEXION MEDIA GROUP PLC
Notes to the Consolidated Cash Flow Statement
For the six months ended 30th June 2012
1. Reconciliation of profit before finance costs Jan-June Jan-June Year to
income and taxation 2012 2011 December
to operating cash flow 2011
GBP GBP GBP
Loss before finance costs and taxation (444,893) (543,724) (519,721)
Amounts written off investments - - (37,738)
Depreciation 2,936 8,370 11,946
Amortisation of intangible assets 234,762 259,866 503,828
Loss on disposal of intangible assets - - 94,476
(Increase)/decrease in trade and other receivables
- non-current 17 56 3
(Increase)/decrease in trade and other receivables
- current (127,347) 9,138 150,596
Increase/(decrease) in trade and other payables 219,061 (111,387) (272,737)
Share options charge 12,000 12,000 22,550
Exchange difference 17,512 53,537 21,504
Operating cash flow (85,952) (312,144) (25,293)
Jan-June Jan-June Year to
2. Reconciliation of net cash flow to movement 2012 2011 December
in net debt 2011
GBP GBP GBP
Increase/(decrease) in cash in the period (130,831) (387,978) (186,312)
Cash inflow from increase in debt 9,519 72,831 68,043
Movement in net debt in the period (121,312) (315,147) (118,269)
Net debt at 1(st) January 2011 (844,007) (725,738) (725,738)
Net debt at 30th June 2011 (965,319) (1,040,885) (844,007)
3. Analysis of changes in net debt
3
At 1(st) Cash At
January flow 30(th)
2012 June
2012
GBP GBP GBP
Cash
at
bank
and in
hand 278,559 (130,831) 147,728
Bank loan and overdrafts (147,566) 9,519 (138,047)
Loans (975,000) - (975,000)
Total (844,007) (121,312) (965,319)
At 1(st) Cash flow At 30(th)
January June
2011 2011
GBP GBP GBP
Cash
at
bank
and
in
hand 464,871 (387,978) 76,893
Bank loan and overdrafts (161,734) 18,956 (142,778)
Loans (1,028,875) 53,875 (975,000)
Total (725,738) (315,147) (1,040,885)
1. Accounting Policies
Basis of preparation
The Financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) adopted by the
European Union. These statements do not constitute a set of
statutory financial statements within the meaning of the Companies
Act 2006.
The financial statements have been prepared on the historical
cost basis and in accordance with the accounting policies set out
in the audited statutory financial statements for the year ended 31
December 2011.
Going concern
The Directors consider that it is appropriate to prepare the
financial statements on a going concern basis because:
1. The Directors have prepared cash flow forecasts to 30(th)
September 2013 and believe that the Group will be able to meet its
working capital requirements as they fall due for a period at least
up to this date. Income has been forecast on the basis of prior
year income adjusted for trading developments. Costs have been
forecast on the basis of the current operating costs.
2. Music Publishing companies have regular sources of income, as
collection societies distribute revenues on the same dates each
year. There are monthly and quarterly distributions. In addition,
the Group has overseas partners known as sub-publishers, from whom
the Group receives royalties quarterly and semi-annually depending
on the contract. Music publishing companies only make royalty
payments after the royalties have been received and processed. The
Group accounts for royalty income on an accruals basis, and
therefore provides for the related royalty payable. The total
royalties payable in note 15 includes a significant amount relating
to the royalty payable by the group on the royalty income which has
not been received at the balance sheet date, and the royalty due
will therefore not be payable until some time after the balance
sheet date.
3. The loan from Polymer Holdings Limited, a shareholder of the
Group, of GBP975,000 is repayable on 31(st) December 2012 or on
written demand of the Lender, being a period of not less than 90
business days. The directors have received written assurance from
Polymer Holdings Limited that it is not Polymer's intention to call
in the loan before any new refinancing arrangements are in place.
Whilst an unconditional deferral of the loan to at least 30(th)
September 2013 has not been received, the directors do not believe
that Polymer will call in the loan before that date unless suitable
alternative financial arrangements are in place.
Accounting Estimates and Judgements
The Group makes estimates and judgements concerning the future
and the resulting estimates may, by definition, vary from the
actual results. The Directors considered the critical accounting
estimates and judgements used in the financial statements and
concluded that the main areas of judgement are:
-- Revenue recognition policies in respect of contracts which straddle the period end;
-- Contingent deferred payments in respect of acquisitions;
-- Recognition and quantification of share based payments; and
-- Valuation of intangible assets.
These estimates are based on historical experience and various
other assumptions that management and the Board of Directors
believe are reasonable under the circumstance.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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