Interim Results
28 Septiembre 2007 - 2:05AM
UK Regulatory
RNS Number:6815E
Eicom PLC
28 September 2007
EICOM plc
INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2007
Eicom plc ("Eicom" or "the Company"; stock code: EIC), the digital TV channel
management Company, announces its interim results for the period ended 30 June
2007.
Key points:
*New Performance Channel for classic rock fans launched on 17 September
*Original Performance Channel more than doubled its ABC1 viewers
*New advertising sales house, Media Icon Ltd, appointed to improve
revenues
*#1.3m of new equity raised to help fund the launch of the new channel and
acquire new programmes to continue the ratings improvement
*Net loss for the period of #640,000 (2006 - #494,000) due to drop in
revenue from sales of off peak airtime
Commenting on the results, Chief Executive, Steve Timmins said:
"With the launch of Performance MainStreet, we are delivering on our strategy of
building a portfolio of strong, entertainment based channels. The original
Performance Channel has already demonstrated the potential of this approach with
strong growth in audience levels. We continue to be focussed on growth by
acquisition."
Notes to Editors
About EICOM
Eicom is building a portfolio of digital channels, which already includes the
music and arts service, Performance Channel, and the Science Channel, SciTech TV
and Performance MainStreet, targeted at classic rock fans. Eicom plans to
exploit these channels through their distribution in the UK and overseas and on
a wide variety of platforms including satellite, cable and broadband. For
further information, please visit the website, www.eicom.co.uk.
Eicom plc
Steve Timmins, Chief Executive 07005 964091
Paul Fowler, Finance Director 07931 351983
Grant Thornton
Fiona Owen 020 7383 5100
Bankside Consultants
Sue Scott/Michael Padley 020 7367 8888
Chief Executive's Review
I am pleased to report that we continue to make good progress with the
development of the Performance Channel brand. On 17 September 2007, we launched
our new digital TV Channel, Performance MainStreet. We expect to attract a
significant audience to its blend of classic rock and pop music which includes
the 1970s series, Old Grey Whistle Test, concerts from John Lennon, Genesis and
Santana, documentaries on Jimi Hendrix and Eric Clapton and series like Books
Into Film which analyses the filmed versions of books by authors like Stephen
King, J. K. Rowling, Tom Clancy and Nick Hornby.
Recent market research has shown that the audience for live music is growing to
record levels and it is our belief that the two Performance Channels fill a gap
in the market place by appealing to the large number of people who are unable to
get out to live venues to see the world's greatest performers. Eicom is able to
reach this audience by licensing in recordings of world class concerts for
viewers to watch in the comfort of their own homes.
Our own research has indicated that the audience for our channels is spread
across the whole of the British Isles and comprises a broad and mature spread of
adults with disposable income - an audience which appeals to advertisers. We are
very pleased, therefore, that the company's new air time sales house, Media Icon
Ltd, is bringing all its considerable experience to the task of selling
advertising and sponsorship on both Performance Channels.
Trading & Results
Performance Channel delivered 99% more viewer impacts and 141% more ABC1
(upmarket viewers) impacts over the period January to August 2007. Funds
received from placings have been used to enhance the channel's programme
schedule and prepare the way for the launch of a second Performance channel on
Sky - Performance MainStreet. Top rating programmes included concerts by James
Last and Roy Orbison and Nigel Kennedy's Four Seasons.
Revenues from Performance Channel's international roll out continue to increase
on the six platforms on which Performance Channel is carried across Europe
continue to grow their customer base.
During the period we sought to improve the quality of the programme material
broadcast both in the daytime tele-shopping hours and in overnight off-peak
hours. We decided not to continue selling the "after hours" slot on Performance
Channel to third party programme makers who transmitted phone / text quiz games.
Revenues decreased accordingly, but the Performance brand and reputation have
been protected from the furore surrounding the industry-wide lack of
transparency over call charging and quiz prizes.
We have recently sought to improve the value of the daily, three hour block of
tele-shopping on both Performance channels by selling the time to a company
which specialises in products which are directly complementary to the channel's
content and, therefore, more appealing to our audience.
Revenue from tele-shopping on Performance Channel is now showing an upturn and
the company is negotiating for the sale of its overnight hours to complementary,
third party content providers.
The group's turnover for the period was #249,000 (six months to June 2006:
#308,000) and the group recorded a net loss of #640,000 (six months to June
2006: #494,000) for the period. The group has total assets of #778,000.
Recent Developments
September 2007 saw the launch of the second Performance Channel and was
accompanied by the appointment of a new air time sales house to manage the sale
of advertising and sponsorship on both channels. It has always been clear that
there are two distinct parts to the Performance audience and the second channel,
Performance MainStreet is designed to address those who wish to watch classic
rock and pop performances from the greatest artists of popular music's golden
era.
The Company has revamped its websites to incorporate video and will, over the
course of the next six months, endeavour to engage its TV audiences with
additional information and content and open the path towards monetisation of
these sites.
Outlook
Eicom continues its policy of aggregating content and channels in the digital TV
marketplace. With 85% of the UK's homes now receiving their television signals
digitally and BSkyB's customer base having grown to 8.5m households, the Company
feels confident that revenues will continue to grow for products which appeal to
this broad audience.
The Company has digitised all its programme content and has started to offer
music clips on its web sites which we see as the first step in the development
of our strategy to enter the world of Internet driven delivery of entertainment
content.
Eicom continues to look for acquisitions both in terms of content and of
existing channels and other parts of the digital entertainment supply chain. The
directors remain focussed on growth by acquisition over the course of 2007/2008.
Steve Timmins 28 September
2007
Chief Executive Officer
Eicom plc
CONSOLIDATED INTERIM INCOME STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2007
Notes 6 months to 6 months to 18 months to
30 June 30 June 31 December
2006
2007 2006 (Audited)
(Unaudited) (Unaudited) #'000
#'000 #'000
Revenue 249 308 1,016
Cost of sales 2 (462) (414) (1,504)
----------- ---------- -----------
Gross loss (213) (106) (488)
Other operating expenses (376) (363) (1,357)
----------- ---------- -----------
Operating Loss (589) (469) (1,845)
Interest payable (51) (25) (141)
Profit on disposals - - 111
Amounts written off
investments - - (10)
----------- ---------- -----------
Net loss for the period (640) (494) (1,885)
=========== ========== ===========
Loss per share (pence per
share) 3 (3.69) (10.89) (41.0)
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2007
Notes 6 months to 30 6 months to 18 months to 31
June December
2007 30 June 2006
(Unaudited) 2006 (Audited)
#'000 (Unaudited) #'000
#'000
Assets
Non-current assets
--------------------
Intangible
assets 128 401 128
Programme
library 203 203 203
Plant and
fixtures 62 53 22
____ ___
---------- ---------- ----------
____ ___
Total
non-current
assets 393 657 353
____ ___
---------- ---------- ----------
____ ___
Current assets
----------------
Trade
receivables 120 130 70
Non-trade
receivables 261 245 365
Cash and cash
equivalents 4 16 31
____ ___
---------- ---------- ----------
____ ___
Total current
assets 385 391 466
____ ___
---------- ---------- ----------
____ ___
____ ___
---------- ---------- ----------
____ ___
Total Assets 778 1,048 819
____ ___
---------- ---------- ----------
____ ___
Equity and Liabilities
Equity attributable to equity
holders
--------------------------------
Share capital 142 5,807 57
Shares to be
issued - 150 -
Share premium 1,701 8,789 443
Capital
redemption
reserve 117 117 117
Retained
deficit (17,038) (15,412) (16,398)
Other reserve 14,573 - 14,573
---------- ---------- ----------
Total equity (505) (549) (1,208)
---------- ---------- ----------
____ ___
Non-current liabilities
------------------------- --- --- --- ---
Long term loans 5 517 484 499
---------- ---------- ----------
Total
non-current
liabilities 517 484 499
---------- ---------- ----------
Current liabilities
--------------------- --- --- --- ---
Trade and
other payables 723 1,113 1,090
Short term
loans 43 - 438
---------- ---------- ----------
Total current
liabilities 766 1,113 1,528
---------- ---------- ----------
____ ___
---------- ---------- ----------
____ ___
Total equity
and
liabilities 778 1,048 819
____ ___
---------- ---------- ----------
____ ___
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2007
6 months to 30 6 months to 18 months to 31
June December
2007 30 June 2006
(Unaudited) 2006 (Audited)
#'000 (Unaudited) #'000
#'000
Cash flow from operating activities
------------------------------------- --- --- ---
Operating loss (589) (469) (1,845)
Adjustments to reconcile operating loss
to net cash flows from operating
activities
----------------------------------------
Depreciation
and
amortisation 7 62 55
Impairment
provision - - 218
---------- ---------- -----------
Cash outflow
before changes
in working
capital and
provisions (582) (407) (1,572)
---
Working capital adjustments
-----------------------------
Decrease/(Incre
ase) in trade
and other
receivables 54 151 150
(Decrease)/incr
ease in trade
and other
payables (367) 261 464
---------- ---------- -----------
Cash
(outflow)/inflo
w from
operations (895) 5 (958)
Interest paid (33) (9) (29)
---------- ---------- -----------
Net cash used
in operating
activities (928) (4) (987)
---------- ---------- -----------
Cash flows from investing activities
-------------------------------------- --- --- ---
Purchase of
subsidiary
undertakings - - (10)
Purchase of
plant and
fixtures (47) - (31)
---------- ---------- -----------
Net cash used
in investing
activities (47) - (41)
---------- ---------- -----------
Cash flows from financing activities
-------------------------------------- --- --- ---
Net proceeds
from the issue
of share
capital 1,343 - 427
New loans - - 450
Repayment of
short term
loans (395) - (78)
---------- ---------- -----------
Net cash
inflows from
financing 948 - 799
---------- ---------- -----------
Net decrease in
cash and cash
equivalents (27) (4) (229)
Net cash and
cash
equivalents at
the start of
the period 31 20 260
---------- ---------- -----------
Net cash and
cash
equivalents at
the end of the
period 4 16 31
---------- ---------- -----------
STATEMENT OF CHANGES IN EQUITY
Share Capital Shares to be Share Capital Profit Other Reserves Total
issued
#'000 #'000 Premium Redemption And Loss #'000 Equity
#'000 Reserve #'000 #'000
#'000
As at 1 July
2005 (audited) 5,803 150 8,788 117 (14,414) (99) 345
Loss for the
period - - - - (504) - (504)
Elimination of
merger reserve - - - - - 99 99
Share capital
issued 4 - 1 - - - 5
------- ------- ------- -------- ------- ------- -------
As at 31
December 2005
(unaudited) 5,807 150 8,789 117 (14,918) - (55)
Loss for - - - - (494) - (494)
period
------- ------- ------- -------- ------- ------- -------
As at 30 June
2006
(unaudited) 5,807 150 8,789 117 (15,412) - (549)
Loss for the
period - - - - (887) - (887)
Eliminated
merger reserve
transferred to
profit and
loss reserve - - - - (99) - (99)
Share
reorganisation (5,785) - (8,788) - - 14,573 -
Share capital
issued 35 - 515 - - - 550
Costs of share
issue - - (73) - - - (73)
Reversal of
deferred
consideration - (150) - - - - (150)
------- ------- ------- -------- ------- ------- -------
As at 31
December 2006
(audited) 57 - 443 117 (16,398) 14,573 (1,208)
Loss for the
period - - - - (640) - (640)
Share capital
issued 85 - 1,327 - - - 1,412
Costs of share
issue - - (69) - - - (69)
------- ------- ------- -------- ------- ------- -------
As at 30 June
2007
(unaudited) 142 - 1,701 117 (17,038) 14,573 (505)
------- ------- ------- -------- ------- ------- -------
Notes to the Interim Financial statements
1 Accounting policies
Basis of Preparation
The consolidated interim results of Eicom plc for the six months ended 30 June
2007 have been prepared in accordance with the recognition and measurement
criteria of International Financial Reporting standards (IFRS) and International
Financial Reporting Interpretations Committee interpretations that have been
adopted for use in the European Union.
The interim results for the six months ended 30 June 2007 and the comparative
period to 30 June 2006 are unaudited and do not comprise full accounts within
the meaning of Section 240 of the Companies Act 1985.
The Group's results have previously been prepared in accordance with UK
Generally Accepted Accounting Practice (UK GAAP) until 31 December 2006. UK GAAP
differs from IFRS in a number of areas, although the only material effect in
these interim financial statements of the transition to IFRS is in relation to
the treatment of goodwill arising on consolidation, which is further explained
below.
Statutory accounts for Eicom plc for the 18 months ended 31 December 2006, on
which the auditors expressed an unqualified opinion, have been delivered to the
Registrar of Companies. The comparative financial information for that period
has been extracted from such accounts, and reported so as to comply with the
disclosure requirements of IFRS.
The Group's accounting policies remain as stated in the statutory accounts to 31
December 2006 except as indicated above relating to the treatment of goodwill
arising on consolidation. Up until 31 December 2006 it was the policy of the
Group to amortise such goodwill over its estimated useful life of 5 years,
however under IFRS 3 "Business Combinations", goodwill has been frozen at its
net book value as at 1 January 2007 and will be subject to an annual impairment
review, with any impairment losses being recognised immediately in the income
statement. The impact of this change in accounting policy has therefore been a
reduction in amortisation expense of approximately #17,000.
2 Cost of sales
Cost of sales includes an amount of #133,000 representing the release of prepaid
programming rights (6 months to June 2006 - #76,000, 18 months to December 2006
- #311,000).
3 Loss per share
Loss per share has been calculated on a weighted average of 17,340,739 Ordinary
Shares in issue (June 2006 - 4,536,342 December 2006 - 4,597,492 Ordinary
Shares).
4 Taxation
No provision has been made for corporation tax due to the availability of
brought forward trading losses.
At 31 December 2006 the group had approximately #14m of unrelieved trading
losses to carry forward against future trading profits, and #9.4m of unrelieved
capital losses to carry forward against future capital gains.
5 Long term loans
Convertible loans are repayable no earlier than 31 January 2009, and carry
interest at an annual rate of 7%. These convertible loans can be converted at
the option of the loan holder at a discount of 45% to the prevailing market
price at the time of the conversion.
This information is provided by RNS
The company news service from the London Stock Exchange
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