Interim Results
06 12월 2006 - 6:00PM
UK Regulatory
RNS Number:3355N
Eicom PLC
06 December 2006
06 December 2006
EICOM plc
INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2006
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
2006. In order to reflect the company's recent share capital reorganisation,
Eicom is changing its year end to 31 December, with the final results for the 18
month period to 31 December 2006 due to be announced in the first quarter of
2007.
Key points:
*EBITDA loss of #334,000 and a net loss of #494,000 for the period
*Company's accounting reference date changed to 31 December
*Appointment of new international channel distribution agency
*Acquisition of Programme Acquisitions Agency
*Option to acquire Film Library
*First put option of #500,000 has been exercised on Pacific Continental
Securities Ltd ("PCS")
Commenting on the results, Chief Executive, Steve Timmins said:
"The directors and management have remained focussed on the future of the
Company and have recently secured the necessary funding to develop Eicom's
channels and acquire new content and businesses. The Company can see its
prospects improving in 2007."
For further information, please contact:
Steve Timmins, Chief Executive, Eicom plc 07005 964091
Paul Fowler, Finance Director, Eicom plc 07931 351983
Sue Scott/Michael Padley, Bankside Consultants 020 7444 4140
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. 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.
Chief Executive's Review
We have made significant steps forward since the Interim Announcement on 31
March 2006. We have announced several initiatives including the restructuring of
our share capital, the appointment of a new international channel sales agent
and the development of Performance Channel's fruitful collaboration with
Guildhall School of Music & Drama, one of the world's leading Conservatoires.
In addition we have been looking for acquisitions to help the Company with its
market positioning. At a time when home entertainment is beginning to move away
from linear broadcast TV towards on-demand broadband delivery and Internet
streaming we need to be able to exploit these markets in a cost effective way.
This strategy is now beginning to pay off with the announcement of the
acquisition of a programme acquisition agency and an option to acquire a
UK-based film library.
A funding package designed to fund these activities and provide the Company with
the financial security required to fulfil its aims was put in place in November
2006.
Change of Accounting Reference Date
We have decided to change the Company's accounting reference date to 31 December
following High Court approval, (which is expected on 6 December 2006), of the
share capital reorganisation which had been passed at the EGM of 8 May 2006. By
carrying out this action, the deferred shares and share premium are transferred
to a Special Reserve and the balance sheet drawn up to the 31 December 2006
accounting reference date will reflect this share capital reorganisation. This
change of year-end also allows for easier comparison with the metrics of other
companies in the media sector.
As a consequence, the directors, herewith, present interim results to 30 June
2006. The audit for the 18 month period to 31 December 2006 will start in the
New Year with the final results expected to be announced in the first quarter.
Results
The results for the six months to 30 June 2006 were affected by the downturn in
advertising revenue over the last three months of the period. The Company's
turnover for the period was #308,000 (six months to June 2005: #349,000) and the
Company recorded an EBITDA loss of #334,000 and a net loss of #494,000 (six
months to June 2005: #374,000) for the period.
Trading
Performance Channel performed well in the last half of 2005 and the first
quarter of 2006, but did less well in the last three months of the period as the
general advertising market went into a downturn in the UK and the rates for sale
of Performance Channel's overnight hours declined due to the success of ITV's
late night gaming strategy.
However, during the period, we appointed a new international distributor,
Lagardere Networks International, ("LNI"). Under the terms of the agreements,
LNI is now the exclusive representative for Performance Channel and SciTech TV's
international distribution within Continental Europe, the Middle East, Africa
and Asia. LNI is now making progress with broadband operators and the Company's
international sales are beginning to pick up.
As part of our strategy of looking for non-broadcast revenues, we also developed
a working relationship with the leading science journal, Nature. We have worked
with the journal since October 2005 and are producing monthly web casts and
expects this relationship to continue to develop.
Recent Developments
On 3 November we announced that we had acquired the entire issued share capital
of Green Light Cable and Satellite Limited ("Greenlight"), a programme rights
acquisition agency, and had entered into an option to acquire Renown Productions
Limited, which owns a UK-based film library.
Greenlight licenses programming/films through its access to extensive UK-based
libraries or by going into the international market. It also provides a full
support service including programme/film scheduling, traffic management and
business affairs.
Greenlight currently provides programme acquisition services to Eicom's
Performance Channel and we believe that as it grows its channel portfolio,
Greenlight will provide an essential core resource as well as continuing to
service its other existing and new clients.
The Renown Library owns in excess of 300 feature films and 100 hours of classic
TV drama and it is our intention to exploit this library not just through the
creation of one or more digital TV movie channels, but on new platforms and in
new formats as they emerge in the world's market places.
We also announced that this would be funded by a series of put and call options
to raise #2.7 million net over the next 9 months. These funding arrangements
have been agreed with the Company's new brokers, PCS. PCS will receive shares
under the put and call option at a 45% discount to the then market price. PCS
have confirmed that the option shares will be sold on to their clients within
the then market spread. PCS have orderly market arrangements in place with their
clients under which they are encouraged to hold their investments for the long
term.
Outlook
Despite poor summer revenues due, primarily, to the impact of the televising of
the World Cup, revenues have started to pick up on Performance Channel.
The Company is now in receipt of the first tranche of its financing from its
brokers and the Company expects to make further announcements concerning the
remaining placings over the course of the next 9 months.
The acquisition of Greenlight has already led to the introduction of new
business and the directors expect to exercise the option to acquire the film
library, Renown Productions Limited and will, therefore, be entering into final
due diligence in January 2007.
The directors believe, as previously announced, that this greatly improves the
Company's market position and they intend both to continue with the expansion of
their existing digital TV channel plans and to develop the Company as a content
aggregator and a broadcaster ready for future platforms and formats.
Steve Timmins 6 December 2006
Chief Executive Officer
Eicom plc
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS TO 30 JUNE 2006
Notes 30 June 2006 31 Dec 2005 30 June 2005
(Unaudited) (Unaudited) (Audited)
6 Months 6 Months 6 Months
#'000 #'000 #'000
Turnover 308 421 349
Cost of sales 3 (414) (542) (355)
----------- ----------- -----------
Gross loss (106) (121) (6)
Other Operating Expenses (363) (368) (363)
----------- ----------- -----------
Operating Loss (469) (489) (369)
Interest
(payable)/receivable (25) (15) (12)
Adjustment arsing from
administration 0 0 7
----------- ----------- -----------
Net (loss)/profit for the
period (494) (504) (374)
=========== =========== ===========
(Loss)/earnings per share
(pence per share) 4 (10.89) (11.12) (9.71)
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2006
Notes 30 June 31 December 30 June
2006 2005 2005
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Fixed Assets
Intangible assets 401 456 456
Tangible assets 256 263 219
---------- ----------- -----------
657 719 675
---------- ----------- -----------
Current assets
Debtors 375 526 585
Cash at bank and in hand 16 20 260
---------- ----------- -----------
391 546 845
Creditors falling due within
one (1,113) (852) (722)
year
Convertible loans 5 (484) (468) (453)
---------- ----------- -----------
Net (liabilities)/assets (549) (55) 345
---------- ----------- -----------
Capital and Reserves
Called up share capital 5,807 5,807 5,803
Shares to be issued 150 150 150
Share Premium 8,789 8,789 8,788
Capital Redemption Reserve 117 117 117
Profit and Loss Account (15,412) (14,918) (14,414)
Merger Reserve 0 0 (99)
---------- ----------- -----------
Shareholders' Funds (549) (55) 345
---------- ----------- -----------
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2006
30 June 31 December 30 June
2006 2005 2005
(Unaudited) (Unaudited) (Audited)
6 Months 6 Months 6 Months
#'000 #'000 #'000
Cash flow from operating activities (20) (215) (161)
Capital expenditure and financial
investment 0 (45) (2)
Acquisitions and disposals 0 0 (499)
----------- ----------- -----------
Cash Outflow before Financing (20) (260) (662)
Financing 16 20 741
----------- ----------- -----------
(Decrease)/increase in Cash in the
Period (4) (240) 79
----------- ----------- -----------
Reconciliation of Net Cash Flow to
Movement in Debt
(Decrease)/increase in Cash in the
Period (4) (240) 79
New Loan Funding 0 0 (440)
Loan Repayments 0 0 0
Non-cash changes (16) 34 (13)
----------- ----------- -----------
Movement in Net Funds/(Debt) in (20) (206) (374)
Period
Net Funds/(Debt) at Start of Period (448) (242) 132
----------- ----------- -----------
Net Funds/(Debt) at Close of Period (468) (448) (242)
----------- ----------- -----------
Notes to the financial statements
1. The interim results are unaudited and do not comprise full accounts within
the meaning of Section 240 of the Companies Act 1985.
2. The comparative results have been extracted from the audited accounts for
the 12 months ended 30 June 2005 and the unaudited interim accounts to 31
December 2005.
3. Cost of Sales includes an amount of #78,000 representing the release of
prepaid programming rights (June 2005 - #76,000, December 2005 - #77,000)
4. Earnings per share have been calculated on a weighted average of 4,536,342
Ordinary Shares in issue (December 2005 - 4,532,772 Ordinary Shares, and
June 2005 - 3,852,740 Ordinary Shares). The comparative figures for the
number of Ordinary Shares in issue have been rebased following the reduction
in the Company's share capital as approved at the EGM held on 8 May 2006.
5. Convertible Loans are repayable, if requested, in three equal, annual
tranches commencing 31 January 2007.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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