TIDMTLR
RNS Number : 4070O
Local Radio Company PLC (The)
06 March 2009
6 March 2009
The Local Radio Company plc
(the "Group" or "LRC")
Final Results for the year ended 30 September 2008
The Local Radio Company plc announces its final results for the year ended 30
September 2008. These results have been extracted from the Report and Accounts
which are being posted to shareholders today and will be available for download
from the Group's website at www.thelocalradiocompany.com later today.
Chairman's Statement
The financial results for the year ended 30 September 2008, an extremely
challenging year for the Group, have been disappointing.
The UK commercial radio market has suffered from the general downturn in
advertising spend and in economic activity generally. Commercial radio is
experiencing significant commercial and structural challenges. Indeed, recent
estimates from the industry trade body, the Radiocentre, suggest the industry as
a whole is now loss making.
The sharp slowdown in economic activity in the UK in the final quarter of 2008,
combined with the Company's fixed cost base, has resulted in the Group taking a
number of immediate management actions. Primarily the Group has reviewed its
decision to invest in Jazz FM and announced its intention to dispose of the
venture. The Group is also carrying out a radical restructuring of the business'
cost base. The Directors believe this restructuring is critical if the business
is to remain solvent.
Whilst the majority of the Group's radio stations are market-leading commercial
stations within the markets they serve, the Group is exposed to a fall in
consumer spending as there is a correlation between consumer spending and
advertising spend. Revenues are down year on year and, within a fixed cost
business such as broadcasting, this has a direct impact on the Group's
profitability and cash position.
The Directors continue to believe in the long-term strategy of owning local
radio stations and local media assets. The Directors intend to continue to
support the Group's stations in regions where the Group has a strong presence
and will also consider acquisition opportunities in areas where the Group
already has a presence and where the Directors believe the Group can
successfully operate these services at lower cost.
Accordingly, the Board is proposing to raise approximately GBP1.51 million
(gross) through an Open Offer the terms of which are set out in the Open Offer
Document which is being sent to shareholders on 6 March 2009.
I believe the actions your board have taken will position your Company well for
the future and I am committed to its future success.
Anthony Gumbiner
Chairman
Financial Review
Against the background of a depressed radio advertising market last year, the
Group has made significant cost savings within the business. The disposal of six
loss-making stations earlier in June 2008 has improved our financial
flexibility. A combination of further cost saving measures are planned in
2008/09 including a major restructuring of the business.
Group turnover
Total Group turnover, excluding the sold stations, was GBP14.74 million for the
year, a slight increase against 2007 like for like turnover.
Gross profit
Gross profit for the year, excluding the sold stations, was GBP10.88 million, a
2% decrease year on year, and the gross profit margin decreased 2% to 74%.
Group operating loss
The Group's reported operating loss for 2008 was GBP5.96 million compared to
GBP8.15 million in 2007. Goodwill impairment in 2008 was GBP4.17 million (2007:
GBP8.52 million). We have continued to apply strict criteria to our valuations,
which are based on discounted future cash flows on a station by station basis
rather than being by reference to the market values, which reflect more closely
turnover multiples which relate to licence holding. The financial statements do
not reflect the licence values in balance sheets.
Cash
There was a net cash decrease of GBP1.90 million during the year to GBP0.57
million. The Group has recently raised more cash by selling two of its freeholds
which has generated cash in excess of GBP0.62 million.
Auditor's report
The auditors have issued their opinion on the financial statements for the year
ended 30 Sptember 2008.It is unqualified, but draws attention to the disclosures
in those statements relating to the use of the going concern basis.
For further information, please contact:
Jason Bryant
The Local Radio Company Plc Tel: 01494 688205
Brett Miller/Roxane Marffy
Ruegg & Co Limited Tel: 020 7584 3663
Consolidated Income Statement
for the year ended 30 September 2008
+-----------------------------------------+----------+------------+------------+
| | | 12 months | 12 months |
| | | to | to |
+-----------------------------------------+----------+------------+------------+
| | | 30 | 30 |
| | | September | September |
| | | 2008 | 2007 |
+-----------------------------------------+----------+------------+------------+
| | Note | GBP'000 | GBP'000 |
+-----------------------------------------+----------+------------+------------+
| REVENUE | 1 | 14,740 | 14,720 |
+-----------------------------------------+----------+------------+------------+
| Cost of sales | | (3,860) | (3,589) |
+-----------------------------------------+----------+------------+------------+
| GROSS PROFIT | | 10,880 | 11,131 |
+-----------------------------------------+----------+------------+------------+
| Administrative expenses | | (16,840) | (20,075) |
+-----------------------------------------+----------+------------+------------+
| Profit on part-sale of subsidiary | | - | 795 |
| undertaking | | | |
+-----------------------------------------+----------+------------+------------+
| LOSS ON OPERATIONS | | (5,960) | (8,149) |
+-----------------------------------------+----------+------------+------------+
| Finance income | | 51 | 52 |
+-----------------------------------------+----------+------------+------------+
| Finance expense | | (2) | (8) |
+-----------------------------------------+----------+------------+------------+
| Share of profits/(losses) of | | 300 | 203 |
| associates/joint ventures | | | |
+-----------------------------------------+----------+------------+------------+
| | | | |
+-----------------------------------------+----------+------------+------------+
| LOSS ON CONTINUING ACTIVITIES BEFORE | 3 | (5,611) | (7,902) |
| TAXATION | | | |
+-----------------------------------------+----------+------------+------------+
| Tax expense | 4 | - | - |
+-----------------------------------------+----------+------------+------------+
| LOSS FOR THE YEAR ON CONTINUING | | (5,611) | (7,902) |
| ACTIVITIES | | | |
+-----------------------------------------+----------+------------+------------+
| Profit/(Loss) from discontinued | 5 | (1,325) | (1,121) |
| activities | | | |
+-----------------------------------------+----------+------------+------------+
| LOSS FOR THE YEAR | | (6,936) | (9,023) |
+-----------------------------------------+----------+------------+------------+
| | | | |
+-----------------------------------------+----------+------------+------------+
| Attributable to: | | | |
+-----------------------------------------+----------+------------+------------+
| Equity holders of the parent | | (6,899) | (9,023) |
+-----------------------------------------+----------+------------+------------+
| Minority interest | | (37) | - |
+-----------------------------------------+----------+------------+------------+
| | | | |
+-----------------------------------------+----------+------------+------------+
| (Loss)/Earnings per share attributable | 2 | | |
| to the equity holders of the parent | | | |
| during the year | | | |
+-----------------------------------------+----------+------------+------------+
| Basic and diluted | | (9.63)p | (13.01)p |
+-----------------------------------------+----------+------------+------------+
| | | | |
+-----------------------------------------+----------+------------+------------+
| Continuing operations | | | |
+-----------------------------------------+----------+------------+------------+
| Basic and diluted | | (7.79)p | (11.39)p |
+-----------------------------------------+----------+------------+------------+
| | | | |
+-----------------------------------------+----------+------------+------------+
| Discontinued operations | | | |
+-----------------------------------------+----------+------------+------------+
| Basic and diluted | | (1.84)p | (1.62)p |
+-----------------------------------------+----------+------------+------------+
Consolidated Balance Sheet
as at 30 September 2008
+-----------------------------------+----------+----------+----------+------------+
| | At 30 September | At 30 September |
| | 2008 | 2007 |
+-----------------------------------+---------------------+-----------------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------+----------+----------+----------+------------+
| NON-CURRENT ASSETS | | | | |
+-----------------------------------+----------+----------+----------+------------+
| Goodwill | | 6,143 | | 10,457 |
+-----------------------------------+----------+----------+----------+------------+
| Property, plant and equipment | | 1,040 | | 1,713 |
+-----------------------------------+----------+----------+----------+------------+
| | | | | |
+-----------------------------------+----------+----------+----------+------------+
| Investment in joint venture | | 2,582 | | 2,568 |
+-----------------------------------+----------+----------+----------+------------+
| Investments in Associates | | 15 | | 78 |
+-----------------------------------+----------+----------+----------+------------+
| TOTAL NON-CURRENT ASSETS | | 9,780 | | 14,816 |
+-----------------------------------+----------+----------+----------+------------+
| | | | | |
+-----------------------------------+----------+----------+----------+------------+
| CURRENT ASSETS | | | | |
+-----------------------------------+----------+----------+----------+------------+
| Trade and other receivables | 3,058 | | 3,151 | |
+-----------------------------------+----------+----------+----------+------------+
| Cash and cash equivalents | 566 | | 2,468 | |
+-----------------------------------+----------+----------+----------+------------+
| | | 3,624 | | 5,619 |
+-----------------------------------+----------+----------+----------+------------+
| TOTAL ASSETS | | 13,404 | | 20,435 |
+-----------------------------------+----------+----------+----------+------------+
| LIABILITIES | | | | |
+-----------------------------------+----------+----------+----------+------------+
| CURRENT LIABILITIES | | | | |
+-----------------------------------+----------+----------+----------+------------+
| Trade and other payables | 3,814 | | 3,907 | |
+-----------------------------------+----------+----------+----------+------------+
| TOTAL LIABILITIES | | 3,814 | | 3,907 |
+-----------------------------------+----------+----------+----------+------------+
| | | | | |
+-----------------------------------+----------+----------+----------+------------+
| TOTAL NET ASSETS | | 9,590 | | 16,528 |
+-----------------------------------+----------+----------+----------+------------+
| | | | | |
+-----------------------------------+----------+----------+----------+------------+
| Capital and reserves attributable | | | | |
| to equity holders of the Company | | | | |
+-----------------------------------+----------+----------+----------+------------+
| | | | | |
+-----------------------------------+----------+----------+----------+------------+
| Share Capital | | 2,880 | | 2,880 |
+-----------------------------------+----------+----------+----------+------------+
| | | | | |
+-----------------------------------+----------+----------+----------+------------+
| Share Premium Account | | - | | 47,676 |
+-----------------------------------+----------+----------+----------+------------+
| Other Reserves | | 287 | | 287 |
+-----------------------------------+----------+----------+----------+------------+
| Retained Earnings | | 6,423 | | (34,442) |
+-----------------------------------+----------+----------+----------+------------+
| | | 9,590 | | 16,401 |
+-----------------------------------+----------+----------+----------+------------+
| | | | | |
+-----------------------------------+----------+----------+----------+------------+
| Minority Interest | | - | | 127 |
+-----------------------------------+----------+----------+----------+------------+
| TOTAL EQUITY | | 9,590 | | 16,528 |
+-----------------------------------+----------+----------+----------+------------+
| | | | | |
+-----------------------------------+----------+----------+----------+------------+
Consolidated Cash Flow Statement
for the year ended 30 September 2008
+--------------------------------------------+---------+-----------+-----------+
| | | Year to | Year to |
+--------------------------------------------+---------+-----------+-----------+
| | | 30 | 30 |
| | | September | September |
| | | 2008 | 2007 |
+--------------------------------------------+---------+-----------+-----------+
| | Note | GBP'000 | GBP'000 |
+--------------------------------------------+---------+-----------+-----------+
| LOSS BEFORE TAXATION | | (5,611) | (7,902) |
+--------------------------------------------+---------+-----------+-----------+
| | | | |
+--------------------------------------------+---------+-----------+-----------+
| Loss of discontinuing operations | | (1,163) | (1,121) |
+--------------------------------------------+---------+-----------+-----------+
| Profit on Part- Sale of Subsidiary | | - | (795) |
+--------------------------------------------+---------+-----------+-----------+
| Finance income | | (51) | (62) |
+--------------------------------------------+---------+-----------+-----------+
| Finance expense | | 2 | 9 |
+--------------------------------------------+---------+-----------+-----------+
| Share of profits/(losses) of | | (300) | (203) |
| associates/joint ventures | | | |
+--------------------------------------------+---------+-----------+-----------+
| Provision of share based payments | | 88 | 98 |
+--------------------------------------------+---------+-----------+-----------+
| Depreciation | | 532 | 555 |
+--------------------------------------------+---------+-----------+-----------+
| Amortisation | | 4,170 | 8,524 |
+--------------------------------------------+---------+-----------+-----------+
| Cash flows from operating activities | | (2,333) | (897) |
| before changes in working capital and | | | |
| provisions | | | |
+--------------------------------------------+---------+-----------+-----------+
| (Increase)/Decrease in debtors | | (191) | 77 |
+--------------------------------------------+---------+-----------+-----------+
| Increase/(Decrease) in creditors | | 185 | (61) |
+--------------------------------------------+---------+-----------+-----------+
| CASH GENERATED FROM OPERATIONS | | (2,339) | (881) |
+--------------------------------------------+---------+-----------+-----------+
| | | | |
+--------------------------------------------+---------+-----------+-----------+
| INVESTING ACTIVITIES | | | |
+--------------------------------------------+---------+-----------+-----------+
| Dividends from JVs | | 350 | 150 |
+--------------------------------------------+---------+-----------+-----------+
| Capital Redistribution from JVs | | - | 250 |
+--------------------------------------------+---------+-----------+-----------+
| Finance income | | 51 | 62 |
+--------------------------------------------+---------+-----------+-----------+
| Purchase of Fixed Assets | | (214) | (474) |
+--------------------------------------------+---------+-----------+-----------+
| Purchase of Fixed Assets investments | | - | (57) |
+--------------------------------------------+---------+-----------+-----------+
| Partial sale of shares in subsidiary | | - | 1,000 |
| undertakings | | | |
+--------------------------------------------+---------+-----------+-----------+
| Disposal of subsidiary undertaking | 5 | 252 | 60 |
+--------------------------------------------+---------+-----------+-----------+
| NET CASH FROM INVESTING ACTIVITIES | | 439 | 991 |
+--------------------------------------------+---------+-----------+-----------+
| | | | |
+--------------------------------------------+---------+-----------+-----------+
| FINANCING ACTIVITIES | | | |
+--------------------------------------------+---------+-----------+-----------+
| Finance expense | | (2) | (9) |
+--------------------------------------------+---------+-----------+-----------+
| Issue of ordinary share capital | | - | 3,002 |
+--------------------------------------------+---------+-----------+-----------+
| Issue costs | | - | (195) |
+--------------------------------------------+---------+-----------+-----------+
| NET CASH FROM/(USED IN) FINANCING | | (2) | 2,798 |
| ACTIVITIES | | | |
+--------------------------------------------+---------+-----------+-----------+
| NET INCREASE/(DECREASE) IN CASH | | (1,902) | 2,908 |
+--------------------------------------------+---------+-----------+-----------+
| | | | |
+--------------------------------------------+---------+-----------+-----------+
| CASH AT BEGINNING OF YEAR | | 2,468 | (440) |
+--------------------------------------------+---------+-----------+-----------+
| | | | |
+--------------------------------------------+---------+-----------+-----------+
| CASH AT END OF YEAR | | 566 | 2,468 |
+--------------------------------------------+---------+-----------+-----------+
| | | | |
+--------------------------------------------+---------+-----------+-----------+
1 Basis of preparation
a) Statement of compliance
The financial statements have been prepared in accordance with International
Financial Reporting Standards, International Accounting Standards and
Interpretations (collectively IFRS's) issued by the International Accounting
Standards Board (IASB) as adopted by the European Union (Adopted IFRS's) and
with those parts of the Companies Act 1985 applicable to companies preparing
their accounts under Adopted IFRS's. This is the first time the Group has
prepared its financial statements in accordance with IFRS's, having previously
prepared its financial statements in accordance with UK accounting standards.
Details of the transition from UK accounting standards to IFRS's have affected
the Group's reported financial position, financial performance and cash flows
are given in note 6.
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis unless
otherwise stated in the report.
Going Concern
The financial statements have been prepared on a going concern basis. In
considering the appropriateness of the going concern assumption, the directors
have taken into consideration the open offer of new ordinary shares referred to
in the Chairman's statement and the Group's cash flow forecasts. As at the date
of approval of these financial statements the open offer is underwritten as
regards GBP1.5M of proceeds, gross of costs of the open offer, and the related
underwriting agreement will only be effective if the Company's shareholders pass
enabling resolutions at a forthcoming general meeting and the new ordinary
shares are admitted to trading on AIM. The directors are confident that these
conditions will be fulfilled and consequently that the Company will have
sufficient funding to continue as going concern. However were these conditions
not to be fulfilled the directors are of the view that the Company would no
longer be a going concern and that consequent adjustments would therefore have
to be made to the carrying value of both assets and liabilities.
Changes in accounting policies - First-time adoption
In preparing this financial information, the Group has elected to apply the
following transitional arrangements permitted by IFRS 1 `First-time Adoption of
International Financial Reporting Standards'. Transition date is 1 October 2006.
? Business combinations effected before 1 October 2006 have not been
restated.
? The carrying amount of capitalised goodwill at 30 September 2006 that arose
on business combinations accounted for using the acquisition method under UK
GAAP was frozen at this amount and tested for impairment at 1 October 2006.
+------------------------------------------+-----------------+-----------------+
| 2Loss per share | September 2008 | September 2007 |
+------------------------------------------+-----------------+-----------------+
| | Total | Total |
+------------------------------------------+-----------------+-----------------+
| Loss for the year (GBP'000) | (6,899) | (9,023) |
+------------------------------------------+-----------------+-----------------+
| Weighted average number of | 72,001,588 | 69,361,040 |
| shares (Basic) | | |
+------------------------------------------+-----------------+-----------------+
| Basic loss per share | (9.63)p | (13.01)p |
+------------------------------------------+-----------------+-----------------+
| | | |
+------------------------------------------+-----------------+-----------------+
Basic and diluted loss per share are the same, as the effect of all potential
ordinary shares is not dilutive.
+--------------------------------------------------------+----------+----------+
| 3Loss from operations |
+--------------------------------------------------------+
| | 2008 | 2007 |
+--------------------------------------------------------+----------+----------+
| Loss on ordinary activities before taxation is after | GBP'000 | GBP'000 |
| charging: | | |
+--------------------------------------------------------+----------+----------+
| Remuneration paid by the Company for: | | |
+--------------------------------------------------------+----------+----------+
| - audit of Group accounts | 24 | 24 |
+--------------------------------------------------------+----------+----------+
| - audit of individual accounts of subsidiary | 73 | 73 |
| undertakings | | |
+--------------------------------------------------------+----------+----------+
| - non-audit services - Tax | 22 | 22 |
+--------------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------------+----------+----------+
| Depreciation | 532 | 555 |
+--------------------------------------------------------+----------+----------+
| Impairment and amortisation of intangible assets | 4,169 | 8,524 |
+--------------------------------------------------------+----------+----------+
| Rentals under operating leases | 1,689 | 1,021 |
+--------------------------------------------------------+----------+----------+
| Equity settled share based payments | 88 | 98 |
+--------------------------------------------------------+----------+----------+
4Tax on loss on ordinary activities
+---------------------------------------------------------+----------+-----------+
| | 2008 | 2007 |
+---------------------------------------------------------+----------+-----------+
| | GBP'000 | GBP'000 |
+---------------------------------------------------------+----------+-----------+
| Analysis of charge in period | | |
+---------------------------------------------------------+----------+-----------+
| Current tax | | |
+---------------------------------------------------------+----------+-----------+
| UK corporation tax on profits of the period | - | - |
+---------------------------------------------------------+----------+-----------+
| Total current tax | - | - |
+---------------------------------------------------------+----------+-----------+
| | | |
+---------------------------------------------------------+----------+-----------+
| Deferred tax | | |
+---------------------------------------------------------+----------+-----------+
| Origination and reversal of timing differences | - | - |
+---------------------------------------------------------+----------+-----------+
| Tax on loss on ordinary activities | - | - |
+---------------------------------------------------------+----------+-----------+
| | | |
+---------------------------------------------------------+----------+-----------+
The reasons for the difference between the actual tax charge for the year and
the standard rate of corporation tax in the UK applied to losses for the year
are as follows:
+---------------------------------------------------------+-----------+-----------+
| | 2008 | 2007 |
+---------------------------------------------------------+-----------+-----------+
| | GBP'000 | GBP'000 |
+---------------------------------------------------------+-----------+-----------+
| Loss on ordinary activities before tax | (5,611) | (7,902) |
+---------------------------------------------------------+-----------+-----------+
| Loss on ordinary activities multiplied by standard | | |
| rate | | |
+---------------------------------------------------------+-----------+-----------+
| of UK corporation tax of 30% | | (2,371) |
+---------------------------------------------------------+-----------+-----------+
| of UK corporation tax of 29% | (1,627) | |
+---------------------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------------------+-----------+-----------+
| Effects of: | | |
+---------------------------------------------------------+-----------+-----------+
| Expenses not deductible for tax purposes | 957 | 71 |
+---------------------------------------------------------+-----------+-----------+
| Non taxable profit on disposal of shares | - | (286) |
+---------------------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------------------+-----------+-----------+
| Tax Exempt Revenues | (582) | - |
+---------------------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------------------+-----------+-----------+
| Goodwill amortisation and impairment | 1,209 | 2,557 |
+---------------------------------------------------------+-----------+-----------+
| Difference in Tax Rates | 17 | - |
+---------------------------------------------------------+-----------+-----------+
| Share of Associates losses | 29 | 29 |
+---------------------------------------------------------+-----------+-----------+
| Consortium Relief Claim | (108) | - |
+---------------------------------------------------------+-----------+-----------+
| Share in JV Profit | 105 | - |
+---------------------------------------------------------+-----------+-----------+
| Total tax charge for period | - | - |
+---------------------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------------------+-----------+-----------+
5Discontinued operations
In June 2008, the Group sold Pennine FM Ltd, Dune FM Ltd, Ivel FM Ltd, Vale FM
Ltd, Bath Radio Ltd, Brunel FM Ltd and Three Towns Radio Ltd. In August 2008 the
Group sold its remaining shareholding in Central FM Ltd.
In June 2007 the Group sold Merseyside's The Rocket Limited.
The post-tax gain/(loss) on discontinued operations was determined as follows:
+---------------------------------------+----------+----------+----------+----------+
| | At 30 September | At 30 September |
| | 2008 | 2007 |
+---------------------------------------+---------------------+---------------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------------+----------+----------+----------+----------+
| Consideration received: | | | | |
+---------------------------------------+----------+----------+----------+----------+
| Cash | 252 | | 60 | |
+---------------------------------------+----------+----------+----------+----------+
| Loan notes | - | | - | |
+---------------------------------------+----------+----------+----------+----------+
| | | 252 | | 60 |
+---------------------------------------+----------+----------+----------+----------+
| Net assets disposed (excluding | | | | |
| cash): | | | | |
+---------------------------------------+----------+----------+----------+----------+
| Intangible Assets | 145 | | (7) | |
+---------------------------------------+----------+----------+----------+----------+
| Property, plant and equipment | 352 | | 21 | |
+---------------------------------------+----------+----------+----------+----------+
| Trade and other receivables | 101 | | 60 | |
+---------------------------------------+----------+----------+----------+----------+
| Other financial assets | 182 | | - | |
+---------------------------------------+----------+----------+----------+----------+
| Bank loan and overdraft | - | | - | |
+---------------------------------------+----------+----------+----------+----------+
| Trade and other payables | (93) | | (21) | |
+---------------------------------------+----------+----------+----------+----------+
| Minority Interests | (90) | | - | |
+---------------------------------------+----------+----------+----------+----------+
| Other financial liabilities | (385) | | - | |
+---------------------------------------+----------+----------+----------+----------+
| | 212 | | 53 | |
+---------------------------------------+----------+----------+----------+----------+
| Costs on Sale of Subsidiaries | 202 | | - | |
+---------------------------------------+----------+----------+----------+----------+
| | | 414 | | 53 |
+---------------------------------------+----------+----------+----------+----------+
| Pre-tax gain/(loss) on disposal of | | (162) | | 7 |
| discontinued operation | | | | |
+---------------------------------------+----------+----------+----------+----------+
| Related tax expense | | - | | - |
+---------------------------------------+----------+----------+----------+----------+
| | | (162) | | 7 |
+---------------------------------------+----------+----------+----------+----------+
| The net cash inflow comprises: | | | | |
+---------------------------------------+----------+----------+----------+----------+
| Cash received | | 252 | | - |
+---------------------------------------+----------+----------+----------+----------+
| Bank overdraft disposed of | | - | | - |
+---------------------------------------+----------+----------+----------+----------+
| | | 252 | | - |
+---------------------------------------+----------+----------+----------+----------+
| | | | | |
+---------------------------------------+----------+----------+----------+----------+
+------------------------------------------------+-----------+---------+-----------+
| | 2008 | | 2007 |
+------------------------------------------------+-----------+---------+-----------+
| | GBP'000 | | GBP'000 |
+------------------------------------------------+-----------+---------+-----------+
| Result of discontinued operations | | | |
+------------------------------------------------+-----------+---------+-----------+
| Revenue | 2,483 | | 3,346 |
+------------------------------------------------+-----------+---------+-----------+
| Expenses other than finance costs | (3,656) | | (4,483) |
+------------------------------------------------+-----------+---------+-----------+
| Finance (Costs)/Income | 10 | | 9 |
+------------------------------------------------+-----------+---------+-----------+
| Tax expense | - | | - |
+------------------------------------------------+-----------+---------+-----------+
| Gain/(loss) from selling discontinued | (162) | | 7 |
| operations after tax | | | |
+------------------------------------------------+-----------+---------+-----------+
| Profit/(loss) for the year | (1,325) | | (1,121) |
+------------------------------------------------+-----------+---------+-----------+
| | | | |
+------------------------------------------------+-----------+---------+-----------+
| | | | |
+------------------------------------------------+-----------+---------+-----------+
The cash flow statement includes the following amounts relating to discontinued
operations:
+--------------------------------------------------------+-----------+-----------+
| | 2008 | 2007 |
+--------------------------------------------------------+-----------+-----------+
| | GBP'000 | GBP'000 |
+--------------------------------------------------------+-----------+-----------+
| Operating activities | (1,335) | (1,130) |
+--------------------------------------------------------+-----------+-----------+
| Investing activities | 10 | 9 |
+--------------------------------------------------------+-----------+-----------+
| Financing activities | - | - |
+--------------------------------------------------------+-----------+-----------+
| Net cash from/(used in) discontinued operations | (1,325) | (1,121) |
+--------------------------------------------------------+-----------+-----------+
6First time adoption of International Financial Reporting Standards (IFRS)
Reconciliations and explanatory notes on how the transition to IFRS has effected
profit and net assets previously reported under UK Generally Accepted Accounting
Principles are given below:
+------------------------------------------+------------+--------------+------------+
| Profit and loss account reconciliation |
+------------------------------------------+
| | Year ended 30 September 2007 |
+------------------------------------------+----------------------------------------+
| | UK GAAP | Adjustments | IFRS |
+------------------------------------------+------------+--------------+------------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------+------------+--------------+------------+
| REVENUE | 14,720 | - | 14,720 |
+------------------------------------------+------------+--------------+------------+
| Cost of sales | (3,589) | - | (3,589) |
+------------------------------------------+------------+--------------+------------+
| GROSS PROFIT | 11,131 | - | 11,131 |
+------------------------------------------+------------+--------------+------------+
| | | | |
+------------------------------------------+------------+--------------+------------+
| Administrative expenses a | (20,102) | 27 | (20,075) |
+------------------------------------------+------------+--------------+------------+
| Profit on part-sale of subsidiary | 795 | - | 795 |
| undertaking | | | |
+------------------------------------------+------------+--------------+------------+
| LOSS ON OPERATIONS | (8,176) | 27 | (8,149) |
+------------------------------------------+------------+--------------+------------+
| Finance income | 52 | - | 52 |
+------------------------------------------+------------+--------------+------------+
| Finance costs | (8) | - | (8) |
+------------------------------------------+------------+--------------+------------+
| Share of profits/(losses) in joint | 300 | (97) | 203 |
| venture/associates b | | | |
+------------------------------------------+------------+--------------+------------+
| | | | |
+------------------------------------------+------------+--------------+------------+
| LOSS ON CONTINUING OPERATIONS BEFORE | (7,832) | (70) | (7,902) |
| TAXATION | | | |
+------------------------------------------+------------+--------------+------------+
| Tax expense | - | - | - |
+------------------------------------------+------------+--------------+------------+
| LOSS FOR THE YEAR ON CONTINUING | (7,832) | (70) | (7,902) |
| ACTIVITIES | | | |
+------------------------------------------+------------+--------------+------------+
| Profit on discontinued operations, net | (1,121) | - | (1,121) |
| of tax | | | |
+------------------------------------------+------------+--------------+------------+
| LOSS FOR THE YEAR | (8,953) | (70) | (9,023) |
+------------------------------------------+------------+--------------+------------+
| | | | |
+------------------------------------------+------------+--------------+------------+
Note:
a. The GBP27,000 represents a reduction in the accrual for holiday pay.
Contractual holiday pay entitlement accrued by employees but (as at 30 September
2007 compared to 30 September 2006) remained untaken.
b. The GBP97,000 represents the share of the associates losses for the year,
that was not recognised under UK GAAP because of treatment as a trade
investment.
Balance sheet reconciliation as at 1 October 2006
+---------------------------------------+------------+--------------+------------+
| | At 1 October 2006 |
+---------------------------------------+----------------------------------------+
| | UK GAAP | Adjustments | IFRS |
+---------------------------------------+------------+--------------+------------+
| | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------------+------------+--------------+------------+
| NON-CURRENT ASSETS | | | |
+---------------------------------------+------------+--------------+------------+
| Intangible assets | 19,086 | - | 19,086 |
+---------------------------------------+------------+--------------+------------+
| Property, plant and equipment | 1,817 | - | 1,817 |
+---------------------------------------+------------+--------------+------------+
| Investment in joint venture | 2,668 | | 2,668 |
+---------------------------------------+------------+--------------+------------+
| Investment in associates a | 221 | (103) | 118 |
+---------------------------------------+------------+--------------+------------+
| TOTAL NON-CURRENT ASSETS | 23,792 | (103) | 23,689 |
+---------------------------------------+------------+--------------+------------+
| CURRENT ASSETS | | | |
+---------------------------------------+------------+--------------+------------+
| Trade and other receivables | 3,314 | - | 3,314 |
+---------------------------------------+------------+--------------+------------+
| Cash and cash equivalents | - | - | - |
+---------------------------------------+------------+--------------+------------+
| TOTAL CURRENT ASSETS | 3,314 | - | 3,314 |
+---------------------------------------+------------+--------------+------------+
| TOTAL ASSETS | 27,106 | (103) | 27,003 |
+---------------------------------------+------------+--------------+------------+
| LIABILITIES | | | |
+---------------------------------------+------------+--------------+------------+
| NON-CURRENT LIABILITIES | 11 | - | 11 |
| Loans and borrowings | | | |
+---------------------------------------+------------+--------------+------------+
| TOTAL NON CURRENT LIABILITIES | 11 | - | 11 |
+---------------------------------------+------------+--------------+------------+
| CURRENT LIABILITIES | | | |
+---------------------------------------+------------+--------------+------------+
| Trade and other payablesb | 4,208 | 166 | 4,374 |
+---------------------------------------+------------+--------------+------------+
| TOTAL CURRENT LIABILITIES | 4,208 | 166 | 4,374 |
+---------------------------------------+------------+--------------+------------+
| TOTAL LIABILITIES | 4,219 | 166 | 4,385 |
+---------------------------------------+------------+--------------+------------+
| TOTAL NET ASSETS | 22,887 | (269) | 22,618 |
+---------------------------------------+------------+--------------+------------+
| Capital and reserves attributable to | | | |
| equity Holders of the Company | | | |
+---------------------------------------+------------+--------------+------------+
| Share capital | 2,248 | - | 2,248 |
+---------------------------------------+------------+--------------+------------+
| Share premium account | 45,501 | - | 45,501 |
+---------------------------------------+------------+--------------+------------+
| Other reserves c | 352 | (65) | 287 |
+---------------------------------------+------------+--------------+------------+
| Retained Earnings | (25,238) | (279) | (25,517) |
+---------------------------------------+------------+--------------+------------+
| Minority interest d | 24 | 75 | 99 |
+---------------------------------------+------------+--------------+------------+
| TOTAL EQUITY | 22,887 | (269) | 22,618 |
+---------------------------------------+------------+--------------+------------+
Balance sheet reconciliation as at 30 September 2007
+---------------------------------------+------------+--------------+------------+
| | At 30 September 2007 |
+---------------------------------------+----------------------------------------+
| | UK GAAP | Adjustments | IFRS |
+---------------------------------------+------------+--------------+------------+
| | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------------+------------+--------------+------------+
| NON-CURRENT ASSETS | | | |
+---------------------------------------+------------+--------------+------------+
| Intangible assets | 10,457 | - | 10,457 |
+---------------------------------------+------------+--------------+------------+
| Property, plant and equipment | 1,713 | - | 1,713 |
+---------------------------------------+------------+--------------+------------+
| Investment in joint venture | 2,568 | - | 2,568 |
+---------------------------------------+------------+--------------+------------+
| Investment in associates a | 278 | (200) | 78 |
+---------------------------------------+------------+--------------+------------+
| TOTAL NON-CURRENT ASSETS | 15,016 | (200) | 14,816 |
+---------------------------------------+------------+--------------+------------+
| CURRENT ASSETS | | | |
+---------------------------------------+------------+--------------+------------+
| Trade and other receivables | 3,151 | - | 3,151 |
+---------------------------------------+------------+--------------+------------+
| Cash and cash equivalents | 2,468 | - | 2,468 |
+---------------------------------------+------------+--------------+------------+
| TOTAL CURRENT ASSETS | 5,619 | - | 5,619 |
+---------------------------------------+------------+--------------+------------+
| TOTAL ASSETS | 20,635 | (200) | 20,435 |
+---------------------------------------+------------+--------------+------------+
| LIABILITIES | | | |
+---------------------------------------+------------+--------------+------------+
| | | | |
+---------------------------------------+------------+--------------+------------+
| CURRENT LIABILITIES | | | |
+---------------------------------------+------------+--------------+------------+
| Trade and other payablesb | 3,768 | 139 | 3,907 |
+---------------------------------------+------------+--------------+------------+
| TOTAL CURRENT LIABILITIES | 3,768 | 139 | 3,907 |
+---------------------------------------+------------+--------------+------------+
| TOTAL LIABILITIES | 3,768 | 139 | 3,907 |
+---------------------------------------+------------+--------------+------------+
| TOTAL NET ASSETS | 16,867 | (339) | 16,528 |
+---------------------------------------+------------+--------------+------------+
| Capital and reserves attributable to | | | |
| equity | | | |
+---------------------------------------+------------+--------------+------------+
| Holders of the Company | | | |
+---------------------------------------+------------+--------------+------------+
| Share capital | 2,880 | - | 2,880 |
+---------------------------------------+------------+--------------+------------+
| Share premium account | 47,676 | - | 47,676 |
+---------------------------------------+------------+--------------+------------+
| Other reserves c | 450 | (163) | 287 |
+---------------------------------------+------------+--------------+------------+
| Retained Earnings | (34,152) | (290) | (34,442) |
+---------------------------------------+------------+--------------+------------+
| | 16,854 | (453) | 16,401 |
+---------------------------------------+------------+--------------+------------+
| Minority interest d | 13 | 114 | 127 |
+---------------------------------------+------------+--------------+------------+
| TOTAL EQUITY | 16,867 | (339) | 16,528 |
+---------------------------------------+------------+--------------+------------+
| | | | |
+---------------------------------------+------------+--------------+------------+
Note:
a. The GBP103,000 and GBP200,000 represents the share of the associates
losses for prior years, that was not recognised under UK GAAP because of
treatment as a trade investment.
b. The GBP166,000 and GBP139,000 represent an accrual for holiday pay.
Contractual holiday pay entitlement accrued by employees but (as at 30 September
2008 and 30 September 2007) remained untaken.
c. The GBP65,000 and GBP163,000 represent the transfer of share based
payments to retained earnings.
d The GBP75,000 and GBP114,000 relate to the write-back of minority interest
losses.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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