TIDMCXM
RNS Number : 4314N
Conexion Media Group PLC
06 September 2013
CONEXION MEDIA GROUP PLC
Chairman's Statement
This document is available on the company's website
www.conexion-media.com
Revenue of GBP984k was 5% lower than the first half of 2012.
However an increased margin, due to the mix of business resulted in
Gross Profit of GBP623k, a 16% increase on the corresponding period
in 2012. Operating costs of GBP702k were 3% down, and the movement
in exchange rates on intercompany balances resulted in a gain on
exchange. Operating loss before amortisation and depreciation was
GBP8k (Jan-June 2012 GBP207k). After taking into account
amortisation, depreciation and finance costs, Loss for the period
was GBP341k, compared with GBP486k in the period Jan to June 2012.
Because of the collection society distribution dates, we normally
receive more income in the second half of the year.
We continue to sign new clients for collection of both music and
ancillary rights, as well as developing production deals. This year
we have signed 18 new clients to date as well as a new
production/distribution deal. In Los Angeles, we have entered into
new partnership agreements which will increase our opportunities to
license our music. We have also reorganised our sales team, and now
have a stronger presence in the areas of music supervision and
clearance.
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.
Guy Fletcher
6th September 2013
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 2013
Jan-June Jan-June Year
2013 2012 to
December
2012
unaudited unaudited audited
GBP GBP GBP
Revenue 984,077 1,035,809 2,615,350
Direct costs (361,572) (499,367) (1,202,286)
Gross Profit 622,505 536,442 1,413,064
Operating costs (702,008) (726,125) (1,443,593)
Exchange differences 71,289 (17,512) (62,532)
Operating loss before amortisation
and depreciation (8,214) (207,195) (93,061)
Amortisation and depreciation (254,375) (237,698) (473,807)
Operating loss (262,589) (444,893) (566,868)
Finance income 185 85 212
Finance costs (78,133) (42,872) (94,277)
Amounts written off investments - 1,279 1,281
Loss before taxation (340,537) (486,401) (659,652)
Taxation - - -
Loss for the period (340,537) (486,401) (659,652)
Attributable to:
Non-controlling interests (27,163) (9,779) (23,485)
Owners of the parent company (313,374) (476,622) (636,167)
Earnings/(loss) per share - continuing
operations
Basic earnings per share (pence) (0.40) (0.61) (0.81)
Diluted earnings per share (pence) (0.40) (0.61) (0.81)
Consolidated Statement of Comprehensive Income
For the six months ended 30(th) June 2013
Jan-June Jan-June Year to
2013 2012 December
2012
unaudited unaudited audited
GBP GBP GBP
(Loss) for financial year (340,537) (486,401) (659,652)
Currency translation differences (88,208) 14,848 58,295
Total Comprehensive Income (428,745) (471,553) (601,357)
Attributable to:
Non-controlling interests (27,163) (9,779) (23,485)
Owners of the parent company (401,582) (461,774) (577,872)
Total Comprehensive Income (428,745) (471,553) (601,357)
CONEXION MEDIA GROUP PLC
Consolidated Statement of Financial Position
As at 30th June 2013
As at As at As at
30(th) 30(th) 31(st)
June June December
2013 2012 2012
unaudited unaudited audited
GBP GBP GBP
Non-current assets
Intangible assets
Goodwill 1,276,044 1,276,044 1,276,044
Other 2,663,931 3,124,619 2,863,907
Property, plant and equipment 6,369 4,528 5,478
Trade and other receivables 7,779 23,681 22,738
3,954,123 4,428,872 4,168,167
Current assets
Trade and other receivables 1,151,473 1,194,812 1,090,014
Cash and short term deposits 65,434 147,728 341,104
1,216,907 1,342,540 1,431,118
Current liabilities
Trade and other payables (5,877,485) (5,904,626) (5,887,745)
Amounts due to related parties (975,000) (975,000) (975,000)
Bank overdraft and loans (128,329) (138,047) (119,922)
(6,980,814) (7,017,673) (6,982,667)
Net current liabilities (5,763,907) (5,675,133) (5,551,549)
Total assets less current liabilities (1,809,784) (1,246,261) (1,383,382)
Non-current liabilities
Amounts due to related parties - - -
Net assets (1,809,784) (1,246,261) (1,383,382)
Equity
Called up share capital 783,926 783,926 783,926
Share premium account 8,356,254 8,356,254 8,356,254
Shares to be issued 513,394 518,366 511,051
Translation reserves (465,203) (420,442) (376,995)
Retained earnings (11,215,890) (10,742,970) (10,902,516)
Equity share owners' funds (2,027,519) (1,504,866) (1,628,280)
Non-controlling interest 217,735 258,605 244,898
Total equity (1,809,784) (1,246,261) (1,383,382)
CONEXION MEDIA GROUP PLC
Consolidated Statement of Cash Flows
For the six months ended 30th June 2013
Jan-June Jan-June Year to
2013 2012 December
2012
unaudited unaudited audited
Note GBP GBP GBP
Operating cash flow 1 (133,920) (85,952) 154,747
Net finance costs (77,948) (42,787) (94,065)
Net cash inflow from operating
activities (211,868) (128,739) 60,682
Investing activities
Purchase of property, plant
and equipment (2,399) - (2,641)
Net cash flow from investing
activities (2,399) - (2,641)
Financing activities
Increase/(decrease) in bank
loan and overdraft 8,407 (9,519) (27,644)
Repayment of loans - - -
Net cash (outflow)/inflow
from financing 8,407 (9,519) (27,644)
Foreign exchange differences (69,810) 7,427 32,148
(Decrease)/Increase in cash
and cash equivalents (275,670) (130,831) 62,545
Cash and cash equivalents
at start of period 341,104 278,559 278,559
Cash and cash equivalents
at end of period 65,434 147,728 341,104
CONEXION MEDIA GROUP PLC
Notes to the Consolidated Cash Flow Statement
For the six months ended 30th June 2013
1. Reconciliation of profit before Jan-June Jan-June Year to
finance costs income and taxation 2013 2012 December
to operating cash flow 2012
GBP GBP GBP
Loss before finance costs and
taxation (262,589) (444,893) (566,868)
Amounts written off investments - - -
Depreciation 1,542 2,936 4,605
Amortisation of intangible assets 252,833 234,762 469,202
Loss on disposal of intangible - - -
assets
(Increase)/decrease in trade and
other receivables - non-current 14,959 17 960
(Increase)/decrease in trade and
other receivables - current (61,459) (127,347) (22,549)
Increase/(decrease) in trade and
other payables (10,260) 219,061 202,180
Share options charge 2,343 12,000 4,685
Exchange difference (71,289) 17,512 65,532
Operating cash flow (133,920) (85,952) 154,747
Jan-June Jan-June Year to
2. Reconciliation of net cash flow 2013 2012 December
to movement in net debt 2012
GBP GBP GBP
Increase/(decrease) in cash in
the period (275,670) (130,831) 62,545
Cash inflow from increase in debt (8,407) 9,519 27,644
Movement in net debt in the period (284,077) (121,312) 90,189
Net debt at 1(st) Ja nuary 2013 (753,818) (844,007) (844,007)
Net debt at 30th June 2013 (1,037,895) (965,319) (753,818)
3. Analysis
of
changes
in net
debt
At 1(st) Cash flow At 30(th)
January June
2013 2013
GBP GBP GBP
Cash at bank and in hand 341,104 (275,670) 65,434
Bank loan and overdrafts (119,922) (8,407) (128,329)
Loans (975,000) - (975,000)
Total (753,818) (284,077) (1,037,895)
At 1(st) Cash flow At 30(th)
January June
2012 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)
CONEXION MEDIA GROUP PLC
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 2012.
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 2014 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 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 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 2014 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
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