TIDMPGB
RNS Number : 1253U
Pilat Media Global PLC
28 November 2013
Press Release 28 November 2013
Pilat Media Global PLC
("Pilat Media", the "Group" or the "Company")
Results for the nine months ended 30 September 2013
Pilat Media Global plc (AIM:PGB), the London-based supplier of
business management software to the media industry around the
world, today announces its results for the nine months ended 30
September 2013 and the three months ended 30 September 2013 (the
"Quarter" or "Q3").
Summary:
-- Revenues:
-- Q3 revenues up 18.4% to GBP6.29 million (Q3 2012: GBP5.31
million)
-- 9 months to September revenues up 18.4% to GBP18.69
million (9 months to September 2012: GBP15.78 million)
-- Operating profit before amortisation of intangible assets:
-- Q3 GBP0.27 million (Q3 2012: GBP0.09 million)
-- 9 months to September: GBP0.94 million (9 months to
September 2012:
GBP0.68 million)
-- Profit after tax for the period:
-- Q3 GBP32,000 (Q3 2012: loss GBP20,000)
-- 9 months to September: GBP210,000 (9 months to September
2012: GBP24,000)
-- Continued strong cash flow:
o GBP592,000 generated from operations during Q3 (Q3 2012:
GBP1.1 million)
o Net cash at the end of Q3 2013: GBP12.6 million (Q2
2013: GBP12.2 million)
-- New IBMS-Express contract just signed
o Sixth new contract this year
o Small but recurring high margin revenue under a Cloud
based SaaS Model
-- Strong Q4 is expected to result in significant growth
in annual revenues and profits, compared to last year
Commenting on the results, Michael Rosenberg, Chairman of Pilat
Media Global plc, said:
"The Company is experiencing good momentum. Growth in revenues
achieved in the first half of the year has been maintained in Q3
and there is a strong backlog. Most of the annual profit of the
Group is expected to occur in the last quarter of 2013 and the
Board anticipates net profits for the year will significantly
exceed those achieved last year. Pilat Media continues to explore
new opportunities and looks to increase both the functional and
geographic reach of its products. The Group continues to generate
cash and the Board is constantly reviewing opportunities to utilise
its robust balance sheet."
- Ends -
For further information:
Pilat Media Global plc
Avi Engel, Chief Executive Officer Tel: +44 (0) 20 8782 0700
Martin Blair, Chief Financial Officer
www.pilatmedia.com
Shore Capital (Nominated Adviser)
Dru Danford / Patrick Castle Tel: +44 (0) 20 7408 4090
www.shorecap.co.uk
Media enquiries:
Abchurch
Henry Harrison-Topham / Jamie Hooper Tel: +44 (0) 20 7398 7719
henry.ht@abchurch-group.com www.abchurch-group.com
Chairman and CEO's Statement
Pilat Media Global plc is pleased to announce its results for
the nine months and three months ended 30 September 2013.
Revenues in both Q3 and the nine months to 30 September 2013
grew by 18.4% compared with the equivalent periods last year. The
five new contracts that have been signed so far this year have
started to contribute to revenues, but it is the increasing demand
from, and new projects commissioned by the nearly sixty existing
clients that generated the vast majority of revenues in the year to
date. Revenues from the new contracts are anticipated to increase
in the last quarter of this year and even more in 2014 as the work
on the new projects intensifies and in some cases agreements for
scope enlargements and accordingly incremental fees are signed.
The Company is focused on progressing and delivering the many
projects its older and new clients have commissioned and
accordingly on building up the capacity to service the growing
demand for its software and services. The Board anticipates that
the increased level of activity will continue well into next year
so in order to be able to deliver the existing backlog as well as
also to accommodate additional new contracts Pilat Media hopes to
win, the Company is scaling up and adding delivery staff such as
business analysts, software engineers and quality testers. This has
an adverse effect on gross margins in the short term until the new
recruits become fully trained and productive. The Board expects
margins will improve in Q4.
A sixth new contract has just been signed, for the provision of
our new IBMS-Express product designed for quick, lower cost but
high margin deployment of a cut-down version of IBMS
"out-of-the-box", under a SaaS (Software As A Service) recurring
revenue model. This is the Company's second Express contract which
we hope will pave the way for further expansion into the lower end
of the market so far not serviced by the Company.
Results
Q3 revenues of GBP6.29 million (Q3 2012: GBP5.31 million) were
18.4% higher than the equivalent quarter in 2012. These higher
revenues reflect increased activity across the Group's entire
existing client base, a full quarter's revenue for the new
implementation at Seven West Media in Australia and the start of
revenues from the new contracts at Digiturk in Turkey, HBO Latin
America, VTR in Chile and Starz in the US. Maintenance revenues, as
in previous quarters this year continued the trend and increased by
15.6% to GBP1.57 million (Q3 2012: GBP1.35 million) as more clients
progressed from implementation to maintenance mode during 2012 and
the first few months of 2013. Licence revenues in Q3 2013 increased
by 35% to GBP0.77 million (Q3 2012: GBP0.57 million), mostly
resulting from the progression of the large ongoing implementation
projects (old and new) where the license fee component is
recognised incrementally based on progress but also from some
up-selling of additional product licences.
Revenues from professional services (customisation, integration,
training and consulting fees) also grew, by 16.4% to GBP3.95
million (Q3 2012: GBP3.40 million), following the pattern from
previous quarters. Only 18% of these Q3 revenues (up from 13% in
Q2) originates from the new contracts, which indicates an extended
use of the Group's products within the install base and increased
demand from the established clients.
Gross profit in Q3 was GBP2.86 million (Q3 2012: GBP2.60
million), which represents a margin of 45.4% compared to 49.0% in
the equivalent period last year and 52.4% in 2012. This fall in
gross margin percentage is a result of the newly recruited staff
being trained on the job and taking some time to become fully
productive. The gross profit margin for the nine months to 30
September 2013 is higher at 48.8% then the margin for the
equivalent period last year (2012: 47.9%) and the Board expects the
margin to improve in the final quarter as the new staff become
fully trained and productive and because the Board anticipates
further increase in license fees within the revenue mix.
Research and Development ("R&D") slowed down somewhat in Q3
as more resources were allocated to customer specific work to help
in meeting the demand. The R&D expenditure in Q3 was GBP1.0
million (Q3 2012: GBP1.0 million), lower than in the previous
quarter (Q2 2013: GBP1.2 million).
Sales and marketing costs in Q3 2013 were higher at GBP0.43
million (Q3 2012: GBP0.37 million) as the Company increased its
sales resources focused on its OTT software and the increased range
of modules and paid the sales commissions due on the new contract
wins.
General and administrative costs for the quarter at GBP1.05
million (Q3: 2012 GBP1.06 million) and for the nine months to 30
September 2013 at GBP3.15 million (2012 GBP3.13 million) are
broadly in-line with the costs for the equivalent periods last
year.
The strengthening of sterling against the major currencies in
which the Company is paid by clients caused an exchange rate loss
in the quarter. The impact of the sterling strength was mitigated
by the loans that the Company put in place (in US and Canadian
Dollars) which moderated the fluctuations caused by exchange rate
movements in these two currencies. Therefore there was a reduced
requirement for large forward contract hedges and consequently the
fair value adjustments and foreign exchange movements on derivative
financial instruments for the first nine months of 2013 was
GBP116,000 (Nine months to 30 September 2012: GBP146,000) were was
lower from those of previous years.
As a result of the higher revenues in the quarter and despite
the increased staff costs in Q3 2013 there was a small operating
profit of GBP4,000 (after amortisation of intangible assets)
compared to a loss of GBP176,000 in Q3 2012. The fair value gain on
forward contracts of GBP40,000 and the interest income of GBP15,000
means that there is a higher profit before tax of GBP43,000
compared to a loss of GBP136,000 in Q3 2012.
With the tax charge at a similar level to the full year charge,
the profit after tax for the nine months to 30 September 2013 is
GBP210,000 (nine months to 30 September 2012: GBP24,000) and for
the quarter is GBP32,000 (Q3 2012: loss of GBP20,000).
Statement of Financial Position
The Group has continued its development of the new OTT product
under the OTTilus brand and GBP156,000 of software development
costs has been capitalised as an intangible asset in the quarter.
The cumulative investment in OTTilus so far has been GBP0.82
million and it is currently consuming cash in the order of
GBP60,000 a month. Nevertheless, Intangible Assets continued to
decrease in Q3 2013 by GBP110,000 net of the new capitalisation (Q3
2012: GBP266,000) due to amortisation of older assets exceeding the
newly capitalised investment.
Trade and other payables are at GBP3.44 million and are at a
higher level than Q3 2012 (GBP2.65 million) as some amounts have
been invoiced on signing of the new contracts in advance of the
revenue being recognised.
Cash flow
Cash generation continues to remain strong with cash balances
increasing to GBP16.76 million at the end of Q3 from GBP14.92
million at the end of 2012 despite the fact that approximately
GBP0.57 million has been used for OTTilus. The foreign currency
loan balance has decreased to GBP4.1 million from GBP4.2 million
meaning net cash has increased to GBP12.6 million at the end of Q3
2013 from GBP12.2 million at the end of the previous quarter.
Outlook
After five key prospects have been converted into contracts
earlier in the year and a sixth contract just signed, for
IBMS-Express, the sales pipeline still includes additional
opportunities that may be converted in the coming weeks and months
and further enhance the Company's healthy backlog.
The contribution of the new contracts will increase in Q4 and
even more so in 2014. Accordingly the Board expects that Q4 will be
Pilat Media's strongest quarter ever, when most of the annual
profits will be generated, as in previous years. This sets the
Company on track to achieving significant year-on-year growth by
the end of 2013 in all key parameters; annual revenues, operating
profit, net profit and cash.
In parallel the Board continues to examine opportunities for
suitable investment of its healthy cash reserves, in addition to
OTTilus.
Michael Rosenberg Avi Engel
Chairman Chief Executive Officer
27 November 2013 27 November 2013
CONSOLIDATED INCOME STATEMENT
Note Unaudited Unaudited Unaudited Unaudited
9 months to 9 months to 3 months to 3 months Audited
30 September 30 September 30 September to Year Ended
2013 2012 2013 30 September 31 December
GBP000 GBP000 GBP000 2012 2012
GBP000 GBP000
REVENUE 18,687 15,778 6,293 5,315 23,483
Cost of sales (9,572) (8,217) (3,436) (2,712) (11,176)
------------- ------------- ------------- ------------- ------------
GROSS PROFIT 9,115 7,561 2,857 2,603 12,307
Other operating expenses
Research and development (3,431) (2,614) (1,016) (1,013) (3,682)
Selling and marketing (1,245) (996) (425) (369) (1,491)
General and administrative (3,154) (3,126) (1,054) (1,062) (4,083)
Exchange rate movement (347) (150) (92) (69) (204)
(8,177) (6,886) (2,587) (2,513) (9,460)
------------- ------------- ------------- ------------- ------------
Operating profit before amortisation
of intangible assets 938 675 270 90 2,847
- -
Amortisation of intangible
assets (798) (798) (266) (266) (1,065)
------------- ------------- ------------- ------------- ------------
PROFIT / (LOSS) FROM OPERATIONS 140 (123) 4 (176) 1,782
Fair value adjustment and
foreign exchange movement
on financial instruments 116 146 40 52 205
Finance income 63 84 15 14 94
Finance costs (46) (74) (16) (26) (99)
------------- ------------- ------------- ------------- ------------
PROFIT / (LOSS) BEFORE TAX 273 33 43 (136) 1,982
Income tax (expense)/credit (63) (9) (11) 116 (512)
------------- ------------- ------------- ------------- ------------
PROFIT / (LOSS) FOR THE PERIOD
ATTRIBUTABLE TO OWNERS OF
THE PARENT 210 24 32 (20) 1,470
============= ============= ============= ============= ============
EARNINGS PER SHARE
Basic 3 0.34p 0.04p 0.05p (0.03p) 2.38p
============= ============= ============= ============= ============
Diluted 0.33p 0.04p 0.05p (0.03p) 2.37p
Note: The profit from operations for the period arises from the
Group's continuing operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Unaudited Unaudited Audited
9 months 9 months 3 months 3 months Year ended
to to to to 31 December
30 September 30 September 30 September 30 September
2013 2012 2013 2012 2012
GBP000 GBP000 GBP000 GBP000 GBP000
PROFIT / (LOSS )FOR THE
PERIOD 210 24 32 (20) 1,470
OTHER COMPREHENSIVE INCOME:
Tax effect on share options - - - - 5
Exchange translation differences
on foreign operations 50 (157) (96) (39) (76)
-------------- -------------- -------------- -------------- -------------
Other comprehensive income
for the period, net of tax 50 (157) (96) (39) (71)
-------------- -------------- -------------- -------------- -------------
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD ATTRIBUTABLE
TO OWNERS OF THE PARENT 260 (133) (64) (59) 1,399
============== ============== ============== ============== =============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Notes Unaudited Unaudited Audited
30 30 31
ASSETS September September December
2013 2012 2012
NON-CURRENT ASSETS GBP000 GBP000 GBP000
Intangible assets 7 2,873 3,113 2,846
Property, plant and equipment 647 627 713
Deferred tax 58 52 54
---------- ---------- ---------
3,578 3,792 3,613
---------- ---------- ---------
CURRENT ASSETS
Trade receivables 4,444 5,860 5,448
Other receivables 4,138 4,790 4,748
Taxation 202 199 -
Cash and cash equivalents 16,755 13,378 14,916
---------- ---------- ---------
25,539 24,227 25,112
---------- ---------- ---------
TOTAL ASSETS 29,117 28,019 28,725
========== ========== =========
EQUITY
Called up share capital 9 3,124 3,118 3,118
Share premium account 9 9,653 9,628 9,630
Capital redemption reserve 50 50 50
Merger reserve (854) (854) (854)
Cumulative translation reserve 430 299 380
Retained earnings 8,911 7,244 8,698
EQUITY ATTRIBUTABLE TO OWNERS OF THE
PARENT 21,314 19,485 21,022
---------- ---------- ---------
LIABILITIES
NON-CURRENT LIABILITIES
Deferred taxation 214 275 257
214 275 257
---------- ---------- ---------
CURRENT LIABILITIES
Trade and other payables 3,444 2,651 3,124
Taxation - - 132
Fixed term loan 8 4,145 5,608 4,190
7,589 8,259 7,446
---------- ---------- ---------
TOTAL LIABILITIES 7,803 8,534 7,703
---------- ---------- ---------
TOTAL EQUITY AND LIABILITIES 29,117 28,019 28,725
========== ========== =========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Capital Cumulative
Share Capital Premium Redemption Merger Translation Retained
Account Reserve Reserve Reserve Earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Attributable to owners
of the parent:
As at 1 January 2013 3,118 9,630 50 (854) 380 8,698 21,022
Profit for the period - - - - - 210 210
Other comprehensive
income:
Exchange translation
differences on foreign
operations - - - - 50 - 50
Total other
comprehensive
income, net of taxes - - - - 50 - 50
------------------------ ---------------- --------- ------------ ---------- ------------- ----------- ---------
Total comprehensive
income for the period - - - - 50 210 260
------------------------ ---------------- --------- ------------ ---------- ------------- ----------- ---------
Transactions with
owners:-
Proceeds from share
issue 6 23 - - - - 29
Share option charge
for the period - - - - - 3 3
------------------------ ---------------- --------- ------------ ---------- ------------- ----------- ---------
As at 30 September
2013 3,124 9,653 50 (854) 430 8,911 21,314
------------------------ ---------------- --------- ------------ ---------- ------------- ----------- ---------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Capital Cumulative
Share Premium Redemption Merger Translation Retained
Capital Account Reserve Reserve Reserve Earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Attributable to owners
of the parent:
As at 1 July 2013 3,121 9,641 50 (854) 526 8,878 21,362
Profit for the period - - - - -
Other comprehensive income: 32 32
Exchange translation
differences
on foreign operations - - - - (96) - (96)
Total other comprehensive
income, net of taxes - - - - (96) 32 (64)
------------------------------ ---------- --------- ------------ ---------- ------------- ----------- ---------
Total comprehensive income
for the period - - - -
------------------------------ ---------- --------- ------------ ---------- ------------- ----------- ---------
Transactions with owners:-
Proceeds of issued share
capital 3 12 - - - - 15
Share option charge for
the period - - - - - 1 1
------------------------------ ---------- --------- ------------ ---------- ------------- ----------- ---------
As at 30 September 2013 3,124 9,653 50 (854) 430 8,911 21,314
------------------------------ ---------- --------- ------------ ---------- ------------- ----------- ---------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Capital Merger Cumulative Retained Total
Capital Premium Redemption Reserve Translation Earnings
Account Reserve Reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Attributable to owners
of the parent:
As at 1 January 2012 3,006 9,216 50 (854) 456 7,213 19,087
Profit for the year - - - - - 1,470 1,470
Other comprehensive
income:
Current tax credit
in respect of share
based payments - - - - - 5 5
Exchange translation
differences on foreign
operations - - - - (111) - (111)
Deferred tax on foreign
exchange differences
on translation - - - - 35 - 35
Total other comprehensive
income, net of tax - - - - (76) 5 (71)
---------------------------- --------- --------- ------------ --------- ------------- ---------- ---------
Total comprehensive
income for the year - - - - (76) 1,475 1,399
---------------------------- --------- --------- ------------ --------- ------------- ---------- ---------
Transactions with owners:-
Proceeds from share
issue 112 414 - - - - 526
Share option charge
for the period - - - - - 10 10
---------------------------- --------- --------- ------------ --------- ------------- ---------- ---------
As at 31
December 2012 3,118 9,630 50 (854) 380 8,698 21,022
---------------------------- --------- --------- ------------ --------- ------------- ---------- ---------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Capital Cumulative
Share Premium Redemption Merger Translation Retained
Capital Account Reserve Reserve Reserve Earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Attributable to
owners of the
parent:
As at 1 January
2012 3,006 9,216 50 (854) 456 7,213 19,087
Profit for the
period - - - - - 24 24
Other comprehensive
income:
Exchange translation
differences on
foreign operations - - - - (157) - (157)
Total other comprehensive
income, net of
taxes - - - - (157) - (157)
--------------------------- ---------- --------- ------------ ---------- ------------- ----------- ---------
Total comprehensive
income for the
period - - - - (157) 24 (133)
--------------------------- ---------- --------- ------------ ---------- ------------- ----------- ---------
Transactions with
owners:-
Proceeds of issued
share capital 112 412 - - - - 524
Share option charge
for the period - - - - - 7 7
--------------------------- ---------- --------- ------------ ---------- ------------- ----------- ---------
As at 30 September
2012 3,118 9,628 50 (854) 299 7,244 19,485
--------------------------- ---------- --------- ------------ ---------- ------------- ----------- ---------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Capital Cumulative
Share Premium Redemption Merger Translation Retained
Capital Account Reserve Reserve Reserve Earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Attributable
to owners of
the parent:
As at 1 July
2012 3,118 9,628 50 (854) 338 7,261 19,541
Profit for
the period - - - - - (20) (20)
Other comprehensive
income:
Exchange translation
differences
on foreign
operations - - - - (39) - (39)
Total other
comprehensive
income, net
of taxes - - - - (39) - (39)
---------------------- ---------- --------- ------------ ---------- ------------- ----------- ---------
Total comprehensive
income for
the period - - - - (39) (20) (59)
---------------------- ---------- --------- ------------ ---------- ------------- ----------- ---------
Transactions
with owners:-
----------------------
Proceeds of
issued share - - - - - - -
capital
----------------------
Share option
charge for
the period - - - - - 3 3
---------------------- ---------- --------- ------------ ---------- ------------- ----------- ---------
As at 30 September
2012 3,118 9,628 50 (854) 299 7,244 19,485
---------------------- ---------- --------- ------------ ---------- ------------- ----------- ---------
CONSOLIDATED STATEMENT OF CASH FLOWS
Notes Unaudited Unaudited Unaudited Unaudited Audited
9 months to 9 months 3 months 3 months Year ended
30 to to to 31 December
September 30 30 30
September September September
2013 2012 2013 2012 2012
GBP000 GBP000 GBP000 GBP000 GBP000
Net cash from operating
activities a 3,018 901 592 1,149 4,263
Income taxes (paid)/received (300) (16) (51) 436 (287)
Interest paid (46) (74) (16) (26) (99)
Interest received 63 84 14 14 94
------------ ---------- ---------- ---------- ------------
Net cash generated
from / operating
activities 2,735 895 539 1,573 3,971
Net cash used in
investing activities b (965) (179) (179) (77) (334)
Net cash generated
from/(used in) financing
activities c 28 373 14 (115) (1,043)
------------ ---------- ---------- ---------- ------------
Net change in cash
and cash equivalents 1,798 1,089 374 1,381 2,594
Cash and cash equivalents
at beginning of
period 14,916 12,412 16,561 12,047 12,412
Exchange gain /
(loss) on cash and
cash equivalents 41 (123) (180) (50) (90)
------------ ---------- ---------- ---------- ------------
Cash and cash equivalents
at end of period 16,755 13,378 16,755 13,378 14,916
============ ========== ========== ========== ============
APPENDICES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Unaudited Unaudited Audited
9 months 9 months 3 months 3 months Year ended
30 Sept 30 Sept 30 Sept 30 Sept 31 December
2013 2012 2013 2012 2012
GBP000 GBP000 GBP000 GBP000 GBP000
Reconciliation of profit / loss before
a tax to net cash from operating
activities
Profit / (loss) before tax 273 33 43 (136) 1,982
Finance income (63) (84) (15) (14) (94)
Finance costs 46 74 16 26 99
Depreciation and amortisation 1,039 985 347 333 1,325
Share option expense 3 7 1 3 10
Gains / losses on derivative instruments 27 (61) 39 (21) (116)
Decrease in trade and other receivables 1,232 331 720 1,599 1,128
Increase/(decrease) in trade and other
payables 461 (384) (559) (641) (71)
------------- ---------------- ---------- ---------- -------------
Net cash from operating activities 3,018 901 592 1,149 4,263
============= ================ ========== ========== =============
b Cash used in investing activities
Purchase of property, plant and equipment (140) (179) (23) (77) (334)
Purchase of intangible fixed asset - (435) - - - -
intellectual property
Purchase of intangible fixed asset -
internal development (390) - (156) - -
============= ================ ========== ========== =============
Net cash used in investing activities (965) (179) (179) (77) (334)
============= ================ ========== ========== =============
c Cash generated from/(used in)
financing activities
Proceeds from the issue of share capital 28 524 14 - 526
Increase/ (decrease) in long term loan - (151) - (115) (1,569)
============= ================ ========== ========== =============
Net cash generated from / (used in)
financing activities 28 373 14 (115) (1,043)
============= ================ ========== ========== =============
1. General Information
The Company is a limited liability company incorporated and
domiciled in the United Kingdom. The address of its registered
office is 19(th) Floor, Wembley Point, 1 Harrow Road, Wembley
Point, London HA9 6DE. Copies of this statement are available from
this address and from the Company's website www.pilatmedia.com.
The Company is quoted on the AIM Market of the London Stock
Exchange and is co-listed on the Tel Aviv Stock Exchange.
This interim announcement was approved for issue on 28 November
2013
2. Basis of preparation
The interim announcement has been prepared under the historical
cost convention, except for the revaluation of derivative financial
instruments, on a going concern basis and in accordance with
International Accounting Standard ('IAS') 34 'Interim Financial
Reporting'.
The interim announcement has been prepared on the basis of the
same accounting policies as published in the audited financial
statements of the Group for the year ended 31 December 2012 and the
accounting policies to be adopted in the financial statements of
the Group for the year ended 31 December 2013. The annual financial
statements of the Group are prepared in accordance with
International Financial Reporting Standards and International
Financial Reporting Interpretations Committee ("IFRIC")
pronouncements as adopted by the European Union. Comparative
figures for the year ended 31 December 2012 have been extracted
from the statutory financial statements for that period.
Statutory financial statements for the year ended 31 December
2012 have been delivered to the Registrar of Companies. The
auditor's report made on the statutory financial statements for the
year ended 31 December 2012, was unqualified, did not include a
reference to any matters to which the auditor drew attention by way
of emphasis and did not contain a statement under section 498(2) or
498(3) of the Companies Act 2006. The financial information in this
interim announcement does not constitute statutory accounts within
the meaning of section 434 of the Companies Act 2006.
This interim announcement has not been audited but has been
reviewed by the auditors in accordance with International Standard
on Review Engagements (UK and Ireland) 2410 'Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity'.
3. Earnings per share
Basic and diluted earnings per share are based on the profit /
(loss) for the period attributable to the owner's of Pilat Media
Global plc and on the following weighted average number of shares
in issue.
Weighted average number of shares in issue
9 months 9 months 3 months 3 months 12 months
to to to to ended 31
30 September 30 30 September 30 December
2013 September 2013 September 2012
2012 2012
Basic 62,444,445 62,111,243 62,376,583 62,353,506 61,674,695
Adjustments:
Diluted effect
of share options 995,063 348,017 1,505,032 319,226 373,836
Diluted 63,439,508 62,459,260 63,881,615 62,672,732 62,048,531
-------------- ----------- -------------- ----------- -----------
4. Segmental Analysis
IFRS 8 - Operating Segments requires the Group to disclose
segmental information based on financial data used by the Chief
Operating Decision Maker (CODM) who is responsible for making
financial decisions. The CODM is considered to be the Company's
Senior Managers and Executive Directors.
In the 9 month period there were no material customers whose
revenues exceeded 10% of the total revenue. (Year ended 31 December
2012: 10.6% and 8.1%; 9 months to 30 September 2011: 13.9% and
12.3%)
The Directors consider there to be only one segment under IFRS 8
based on the information reviewed by the CODM.
The Group's revenue and profit/(loss) before tax were all
derived from its principal activity. Sales and profit from
operations were made in the following geographical markets:
REVENUE
9 Months 6 Months 3 Months 3 Months 12 Months to
to 30 to 30 to 30 to 30 31
September September September September December
2013 2012 2013 2012 2012
GBP000 % GBP000 % GBP000 % GBP000 % GBP000 %
United Kingdom 2,083 11.2 1,513 9.6 785 12.5 713 13.4 1,970 8.4
USA 3,744 20.0 3,507 22.2 1,483 23.5 986 18.6 4,461 19.0
Canada 2,567 13.7 3,046 19.3 827 13.1 1,008 19.0 4,087 17.4
Australia 4,932 26.4 2,297 14.6 1,501 23.9 769 14.5 4,112 17.5
Other 5,361 28.7 5,415 34.3 1,697 27.0 1,839 34.5 8,853 37.7
18,687 15,778 6,293 5,315 23,483
========== ========== ========== ============ ============
The above geographical location has been provided based on the
destination of services provided.
NON-CURRENT ASSETS Intangible assets Property, plant and equipment
30 September 30 September 31 December 30 September 30 September 31 December
2013 2012 2012 2013 2012 2012
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
United Kingdom 2,873 3,113 2,846 451 450 533
Israel - - - 132 113 115
Other - - - 64 64 65
2,873 3,113 2,846 647 627 713
============ ============ =========== ============ ============ =============
5. Seasonality
Whilst revenue is not seasonal there has been an historic trend
of the second half of the year being stronger than the first half
of the year. For the year ended 31 December 2012, the second half
revenue represented 55% (2011: 53%) of the annual revenue.
6. Derivative financial instruments
As at 30 September 2013, the Group held forward foreign currency
contracts to sell Canadian Dollar, US Dollar and Euro for sterling
of GBP127,437, GBP191,595 and GBP129,859 respectively (September
2012: sell US Dollar for sterling of GBP637,991) to hedge expected
settlements of foreign currency receivable balances. The Canadian
Dollar, US Dollar and Euro contracts mature over the next three
months with the final contract expiring in December 2013. In
addition the Group held forward contracts to buy Israeli New Shekel
for sterling of GBP1,599,704; (September 2012 GBP1,184,559;
December 2012: GBP491,811) to cover operating costs in Israel.
7. Intangible Assets
Trade Customer Intellectual Development
Mark Contracts Property Costs Total
GBP000 GBP000 GBP000 GBP000 GBP000
Cost
At 1 January 2011and at 1 January 2013 2 2,701 469 5,871 9,043
Additions during Q1 2013 - development costs - - 435 141 576
Additions during Q2 2013 - development costs - - - 93 93
Additions during Q3 2013 - development costs - - - 156 156
At 30 September 2013 2 2,701 904 6,261 9,868
======== =========== ============= ============ =========
Amortisation
At 1 January 2012 - 1,887 380 2,865 5,132
Amortisation for the year - 204 22 839 1,065
-------- ----------- ------------- ------------ ---------
At 31 December 2012 - 2,091 402 3,704 6,197
Amortisation for the period - 152 17 629 798
-------- ----------- ------------- ------------ ---------
At 30 September 2013 - 2,243 419 4,333 6,995
======== =========== ============= ============ =========
Carrying Amount
At 30 September 2013 2 458 485 1,928 2,873
======== =========== ============= ============ =========
At 31 December 2012 2 610 67 2,167 2,846
======== =========== ============= ============ =========
8. Fixed term loan
30 September 30 September 31 December 2012
2013 2012 GBP000
GBP000 GBP000
CAD Fixed term loan 2,287 2,391 2,345
USD Fixed term loan 1,858 3,217 1,845
-------------------- ------------------- --------------------------
Total 4,145 5,608 4,190
==================== =================== ==========================
The loans are charged interest at LIBOR plus 0.5%, secured by a charge over the Company's
cash balances of GBP6,594,639 (31 December 2012: GBP6,875,860; 30 September 2012: GBP6,591,950)
and repayable on demand, with a maturity date of 31 December 2013.
9. Share Capital and Share Premium
SHARE CAPITAL SHARE PREMIUM SHARE CAPITAL SHARE PREMIUM
30 September 30 September 30 September 30 September
2013 2013 2012 2012
Number GBP000 GBP000 Number GBP000 GBP000
of shares of shares
Ordinary shares
of 5p each 100,000,000 5,000 100,000,000 5,000
============= ======= ============= =======
Allotted, issued
and fully paid:
Ordinary shares
of 5p each
At 1 January 62,363,506 3,118 9,630 60,126,838 3,006 9,216
Employee share
options 110,000 6 23 2,226,668 112 412
------------- ------- -------------- ------------- ------- --------------
At 30 September 62,473,506 3,124 9,653 62,353,506 3,118 9,628
============= ======= ============== ============= ======= ==============
SHARE CAPITAL SHARE PREMIUM
31 December 31 December
2012 2012
Number GBP000 GBP000
of shares
Authorised:
Ordinary shares
of 5p each 100,000,000 5,000
============= =======
Allotted, issued
and fully paid:
Ordinary shares
of 5p each
At 1 January 60,126,838 3,006 9,216
Employee share
options at 23.5p
grant price 2,236,668 112 414
------------- ------- --------------
At 31 December 62,363,506 3,118 9,630
============= ======= ==============
INDEPENDENT REVIEW REPORT TO PILAT MEDIA GLOBAL PLC
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the interim financial report for the
three months and nine months ended 30 September 2013 which
comprises the Consolidated Income Statement, Consolidated Statement
of Comprehensive Income, Consolidated Statement of Changes in
Equity, Consolidated Statement of Financial Position, Consolidated
Statement of Cash Flows and the related explanatory notes. We have
read the other information contained in the interim financial
report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
This report is made solely to the Company in accordance with
International Standard on Review Engagements (UK and Ireland) 2410
"'Review of Interim Financial Information performed by the
Independent Auditor of the Entity" issued by the Auditing Practices
Board. Our review work has been undertaken so that we might state
to the company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company, for our review work, for this
report, or for the conclusions we have formed.
Directors' Responsibilities
The interim financial report, is the responsibility of, and has
been approved by the directors. The directors are responsible for
preparing and presenting the interim financial report in accordance
with the AIM Rules of the London Stock Exchange.
As disclosed in note 2, the annual financial statements of the
Group are prepared in accordance with International Financial
Reporting Standards and International Financial Reporting
Interpretations Committee pronouncements as adopted by the European
Union. The condensed set of financial statements included in this
interim financial report has been prepared in accordance with
International Accounting Standard 34, "Interim Financial Reporting"
as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the interim financial
report based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the interim financial report for the three and nine months ended
30 September 2013 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 "Interim
Financial Reporting" as adopted by the European Union, and the AIM
Rules of the London Stock Exchange.
Baker Tilly UK Audit LLP
Chartered Accountants
25 Farringdon Street
London
EC4A 4AB
27 November 2013
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
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