TIDMSHDP
RNS Number : 8066R
Shed Media PLC
31 August 2010
31 August 2010
Shed Media plc
Interim results for the six months ended 30 June 2010
Shed Media plc ("Shed Media" or "the Group") today announces interim unaudited
results for the six months ended 30 June 2010.
Operational highlights
· Turnover up 27% to GBP59.0m (2009 GBP46.5m)
· Adjusted2 profit before tax up 22% to GBP6.2m (2009 GBP5.1m)
· 93% of targeted production revenue and 76% of targeted IP Gross Profit
committed for full year 2010
+---------------------------+----------------+------------+------------+
| Financial highlights | Six months | Six months | Year ended |
| | ended | ended | 31 |
| | 30 June 2010 | 30 June | December |
| | | 2009 | 2009 |
| | | | |
+---------------------------+----------------+------------+------------+
| Turnover | GBP59.0m | GBP46.5m | GBP92.6m |
+---------------------------+----------------+------------+------------+
| Gross profit | GBP15.8m | GBP15.7m | GBP32.1m |
+---------------------------+----------------+------------+------------+
| Adjusted1 operating | GBP7.2m | GBP6.4m | GBP14.7m |
| profit | | | |
+---------------------------+----------------+------------+------------+
| Adjusted1 operating | 12% | 14% | 16% |
| margin | | | |
+---------------------------+----------------+------------+------------+
| Adjusted2 profit before | GBP6.2m | GBP5.1m | GBP12.0m |
| tax | | | |
+---------------------------+----------------+------------+------------+
| Adjusted2 diluted | 5.20p | 4.11p | 9.89p |
| earnings per ordinary | | | |
| share | | | |
+---------------------------+----------------+------------+------------+
During the period, there were a number of non-trading items which impacted the
income statement. Operating profit included GBP0.6m (six months ended 30 June
2009 GBP1.1m and year ended 31 December 2009 GBP2.0m) of intangibles
amortisation arising from business combinations. Profit before tax also included
a fair value gain on the interest rate of collar of GBP30,000 (six months ended
30 June 2009 GBP0.2m and year ended 31 December 2009 GBP0.3m). Interest charges
relating to deferred consideration were GBPnil (six months ended 30 June 2009
GBP0.1m and year ended 31 December GBP0.1m)
+---------------------------+----------------+------------+------------+
| Unadjusted financial | Six months | Six months | Year ended |
| highlights | ended | ended | 31 |
| | 30 June 2010 | 30 June | December |
| | | 2009 | 2009 |
| | | | |
+---------------------------+----------------+------------+------------+
| Operating profit | GBP6.6m | GBP5.3m | GBP12.3m |
+---------------------------+----------------+------------+------------+
| Profit before tax | GBP5.6m | GBP4.1m | GBP9.8m |
+---------------------------+----------------+------------+------------+
| Diluted earnings per | 4.64p | 3.21p | 7.87p |
| share | | | |
+---------------------------+----------------+------------+------------+
Commenting on the results, Nick Southgate, CEO of Shed Media said:
"Shed Media has had a good first half of 2010 with adjusted2 profit before tax
up 22% from the same period last year. We have seen significant growth in
production revenue, which is up to GBP59.0m in the first half of 2010 from
GBP46.5m in the first half of 2009. We have seen an improved performance in our
UK business, where all our major brands have been secured for further series.
The US operation has continued to thrive with a number of new projects now in
production. IP has been steady in the six months delivering over GBP7.3m of
revenue (six months ended 30 June 2009 GBP7.1m).
The Group has performed well delivering a strong set of results and we are
confident in the outlook for the full year."
+--------------------------------------------------------+---------------------------------+--------------+
| Enquiries | | |
+--------------------------------------------------------+---------------------------------+--------------+
| Nick Southgate, CEO, Shed Media plc | Tel: 0207 239 1010 | |
+--------------------------------------------------------+---------------------------------+--------------+
| Nick Lyon/Wendy Baker, Hudson Sandler | Tel: 0207 796 4133 | |
+--------------------------------------------------------+---------------------------------+--------------+
| Ben Thorne/Melanie Szalkiewicz, Altium Capital Limited | Tel: 0207 484 4040 | |
+--------------------------------------------------------+---------------------------------+--------------+
| |
+---------------------------------------------------------------------------------------------------------+
| |
+--------------------------------------------------------+---------------------------------+--------------+
+----------+--------------------------------------------------------------+
| 1 | Adjusted operating profit is stated before intangibles |
| | amortisation arising from business combinations. |
+----------+--------------------------------------------------------------+
| 2 | Adjusted profit before tax and adjusted diluted earnings per |
| | ordinary share is stated before intangibles amortisation |
| | arising from business combinations, interest charges |
| | relating to discounted deferred consideration and fair value |
| | (gain)/loss on interest rate collar. |
+----------+--------------------------------------------------------------+
CHAIRMAN'S STATEMENT
I am pleased to announce these results which continue to underline the strength
of the Group. The UK broadcast market remains turbulent with significant changes
occurring across all the major broadcasters. Against this backdrop, Shed has
strengthened its position, building on returning brands, securing new high
profile commissions like Turn Back Time:The High Street (for BBC) and We Built
the Titanic (for Channel 4 and National Geographic) and developing talent both
on and off screen.
Outright as the Group's distribution company has built upon the Group's creative
output and ensured greater IP returns and has increasingly won third-party
business.
Shed Media US has continued to mature over this period and become a notable
presence with not only the continued success of Supernanny, but now the US
version of Who Do You Think You Are?.
The Group has performed well and I am confident in the outlook for the full
year.
Heather Rabbatts
Chief Executive's Statement
Overview
I am pleased to announce Shed's interim results covering the six-month period to
30 June 2010.
Turnover is up 27% at GBP59.0m (2009: GBP46.5m) and adjusted2 profit before tax
is up 22% at GBP6.2m (2009: GBP5.1m) compared to the same period last year.
Production accounted for 66% of gross profit (2009: 62%) and Group IP
exploitation was 34% of gross profit (2009: 38%). During the period, the Group
delivered 153 hours of programming comprising 84 from the UK and 69 from the US
compared to 123 hours of programming over the same period last year (74 in the
UK and 49 in the US).
In the UK, we continue to deliver popular, high-rating, award-winning
programming. Our long-running dramas, New Tricks and Waterloo Road, both
performed exceptionally well. In factual, Who Do You Think You Are? recently
returned to BBC1 with its highest ever ratings. The Choir, World's Strictest
Parents, Blood Sweat and Cowboy Builders all delivered strong performances.
Shed Media US delivered both The Marriage Ref and Who Do You Think You Are?
during the period and both were re-commissioned by NBC. A new franchise has been
started with the successful launch of NBA Wives (for VH1) and the commission of
NFL Wives (by VH1). Established brands like Supernanny, It's Me or the Dog, Real
Housewives of New York City and World's Strictest Parents all performed well.
Recommended Offer Announcement
On 5 August 2010, the directors of WB Bidco plc ("Bidco") and the independent
directors of Shed, being Heather Rabbatts, Coline McConville and Marc Watson,
announced that they had reached agreement on the terms of a recommended
acquisition by Bidco, a newly incorporated public company formed at the
direction of Warner Bros. Consumer Products (UK) Limited and the senior
management team of Shed, being Nicholas Southgate, Eileen Gallagher, Alexander
Graham and Nicholas Powell, of all of the issued and to be issued share capital
of Shed, providing shareholders with an opportunity to receive 115 pence in cash
for each one of their shares in Shed.
Outlook
Eight months into its current financial year, the Shed Group has good production
visibility with 317 hours commissioned (UK: 179 hours and US: 138 hours), which
makes up 93 % of its targeted production revenue. Intellectual property ("IP")
gross profit is at 76 % of target.
The Group is seeing growth in UK production commissioned and it is particularly
pleased that its investment in Scottish drama has paid off so quickly with the
announcement by the BBC of the James Herriot drama 'Young James' from Koco Drama
Limited, Shed's new drama subsidiary.
The US business continues to perform strongly and IP sales are robust.
The Group is making good progress and the Board continues to be confident in the
outlook for the current financial year.
Nicholas Southgate
INDEPENDENT REVIEW REPORT TO SHED MEDIA PLC
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the interim financial report for the six months ended 30 June 2010
which comprises Condensed Consolidated Statement of Comprehensive Income,
Condensed Consolidated Balance Sheet, Condensed Statement of Cash flows and
Condensed Consolidated Statement of Changes in Equity 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 and the requirements of the UK Listing Authority ('UKLA').
As disclosed in note 1, 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 six months ended 30 June 2010 is not prepared, in all material respects,
in accordance with International Accounting Standard 34 "Interim Financial
Reporting" as adopted by the European Union, the AIM Rules of the London Stock
Exchange and the requirements of the UK Listing Authority ('UKLA').
Baker Tilly UK Audit LLP
Chartered Accountants
2 Bloomsbury Street
London
WC1B 3ST
31 August 2010
SHED MEDIA PLC
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2010
+-+---------+-----------------------------+------+-------------------+-------------------+----------------+
| | | Six | Six | Year ended |
| | | months | months | 31 December |
| | | ended | ended | 2009 |
| | Note | 30 June | 30 June | |
| | | 2010 | 2009 | Audited |
| | | Unaudited | Unaudited | GBP'000 |
| | | GBP'000 | GBP'000 | |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Revenue | 2 | 59,035 | 46,468 | 92,606 |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Cost of sales | | (43,238) | (30,763) | (60,540) |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| | | | | |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Gross profit | | 15,797 | 15,705 | 32,066 |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| | | | | |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| General administrative expenses | | (8,463) | (9,010) | (17,009) |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| IFRS 2 share-based payments | | (166) | (280) | (405) |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Exceptional items - restructuring costs | | - | - | (409) |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Amortisation of intangibles arising on | | (598) | (1,083) | (1,976) |
| business combinations | | | | |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Total administrative expenses | | (9,227) | (10,373) | (19,799) |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| | | | | |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Operating profit | | 6,570 | 5,332 | 12,267 |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| | | | | |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Finance income | | 5 | 32 | 42 |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Finance costs | | (1,017) | (1,451) | (2,803) |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Fair value gain on interest rate collar | | 30 | 145 | 268 |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Net finance costs | 3 | (982) | (1,274) | (2,493) |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| | | | | |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Profit before taxation | | 5,588 | 4,058 | 9,774 |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| | | | | |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Tax expense | | (1,559) | (1,258) | (2,978) |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| | | | | |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Profit for the period / year | | 4,029 | 2,800 | 6,796 |
| attributable to owners of the parent | | | | |
| | | | | |
| Other comprehensive income | | 124 | - | (168) |
| Foreign exchange movements on foreign | | | | |
| entities | | | | |
| | | | | |
| | | | | |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Total comprehensive income net of tax | | 4,153 | 2,800 | 6,628 |
| for the period / year attributable to | | | | |
| owners of the parent | | | | |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| | | | | |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| | | | | |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Earnings per share | | | | |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Basic (pence) | 5 | 4.71p | 3.53p | 8.25p |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| Diluted (pence) | 5 | 4.64p | 3.21p | 7.87p |
+-----------------------------------------+------+-------------------+-------------------+----------------+
| | | |
+-+---------+---------------------------------------------------------------------------------------------+
| | | |
+-+---------+---------------------------------------------------------------------------------------------+
| | | | | | | |
+-+---------+-----------------------------+------+-------------------+-------------------+----------------+
All transactions arise from continuing operations.
SHED MEDIA PLC
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
At 30 June 2010
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| | | 30 June | 30 June | 31 | |
| | | 2010 | 2009 | December | |
| | Note | Unaudited | Unaudited | 2009 | |
| | | | GBP'000 | Audited | |
| | | GBP'000 | | GBP'000 | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Non-current assets | | | | | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Goodwill | | 62,306 | 62,306 | 62,306 | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Other intangible assets | | 25,616 | 25,223 | 25,680 | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Property, plant and equipment | | 1,662 | 1,167 | 1,323 | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| | | 89,584 | 88,696 | 89,309 | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| | | | | | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Current assets | | | | | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Trade and other receivables | | 18,645 | 17,709 | 16,897 | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Cash and cash equivalents | | 9,087 | 13,722 | 17,516 | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| | | 27,732 | 31,431 | 34,413 | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| | | | | |
| Total assets | 117,316 | 120,127 | 123,722 | |
+------------------------------------+------------------+------------+----------+--------------------------------------+
| | | | | | |
| Current liabilities | | | | | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Borrowings | 8 | (12,454) | (13,821) | (11,251) | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Loan notes issued | 8 | - | - | (500) | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Accruals and deferred income | | (14,524) | (16,803) | (23,622) | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Trade and other payables | | (3,908) | (2,475) | (4,032) | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Current tax liabilities | | (405) | (2,471) | (540) | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Deferred consideration | 6 | - | (5,000) | - | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Dividends payable | 4 | (395) | - | - | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| | | (31,686) | (40,570) | (39,945) | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| | | | | | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| | | | | | |
| Non-current liabilities | | | | | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Long-term borrowings | 8 | (12,316) | (18,418) | (14,255) | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Deferred tax liabilities | | (4,350) | (4,521) | (4,452) | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Derivatives and financial | | (1,297) | (1,338) | (1,327) | |
| instruments | | | | | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| | | (17,963) | (24,277) | (20,034) | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| | | | | |
| Total liabilities | (49,649) | (64,847) | (59,979) | |
+------------------------------------+------------------+------------+----------+--------------------------------------+
| Net Assets | | 67,667 | 55,280 | 63,743 | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| | | | | | |
| Equity | | | | | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Called up share capital | 7 | 86 | 81 | 86 | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Share premium account | | 33,880 | 29,385 | 33,880 | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Shares to be issued | 4 | 673 | - | - | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Share option reserve | | 1,493 | 1,251 | 1,327 | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Own shares held in trust | | (450) | (450) | (450) | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Retained earnings | | 31,985 | 25,013 | 28,900 | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
| Total equity attributable to | | 67,667 | 55,280 | 63,743 | |
| owners of the parent | | | | | |
+------------------------------------+------+-----------+------------+----------+--------------------------------------+
SHED MEDIA PLC
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2010
+-------------------------------------+------------+------------+----------+
| | Six | Six | Year |
| | months | months | ended |
| | ended | ended | |
| | 30 | 30 | 31 |
| | June | June | December |
| | 2010 | 2009 | 2009 |
| | Unaudited | Unaudited | Audited |
| | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------+------------+------------+----------+
| | | | |
+-------------------------------------+------------+------------+----------+
| Cashflows from operating activities | | | |
+-------------------------------------+------------+------------+----------+
| | | | |
+-------------------------------------+------------+------------+----------+
| Profit before taxation | 5,588 | 4,058 | 9,774 |
+-------------------------------------+------------+------------+----------+
| Adjustments for: | | | |
+-------------------------------------+------------+------------+----------+
| Depreciation and amortisation | 2,868 | 2,834 | 7,136 |
+-------------------------------------+------------+------------+----------+
| IFRS 2 share based payments | 166 | 280 | 405 |
+-------------------------------------+------------+------------+----------+
| Foreign exchange loss/(gain) | 123 | 529 | (19) |
+-------------------------------------+------------+------------+----------+
| Fair value gain on interest rate | (30) | (145) | (268) |
| collar | | | |
+-------------------------------------+------------+------------+----------+
| Discounting of deferred | - | 142 | 142 |
| consideration | | | |
+-------------------------------------+------------+------------+----------+
| Investment income | (5) | (27) | (42) |
+-------------------------------------+------------+------------+----------+
| Interest expense | 1,017 | 1,309 | 2,661 |
+-------------------------------------+------------+------------+----------+
| (Increase) / decrease in trade and | (1,752) | 3,117 | 1,552 |
| other receivables | | | |
+-------------------------------------+------------+------------+----------+
| (Decrease) / increase in trade | (8,944) | (281) | 8,554 |
| payables | | | |
+-------------------------------------+------------+------------+----------+
| Cash generated from operations | (969) | 11,816 | 29,895 |
+-------------------------------------+------------+------------+----------+
| | | | |
+-------------------------------------+------------+------------+----------+
| Taxation paid | (1,806) | (835) | (2,429) |
+-------------------------------------+------------+------------+----------+
| | | | |
+-------------------------------------+------------+------------+----------+
| Net cash from operating activities | (2,775) | 10,981 | 27,466 |
+-------------------------------------+------------+------------+----------+
| | | | |
+-------------------------------------+------------+------------+----------+
| Cashflows from investing activities | | | |
+-------------------------------------+------------+------------+----------+
| Deferred consideration on | | | |
| acquisition of subsidiaries net of | (500) | (469) | (466) |
| cash acquired | | | |
+-------------------------------------+------------+------------+----------+
| Purchase of intangible assets | (2,814) | (3,597) | (7,747) |
+-------------------------------------+------------+------------+----------+
| Purchase of property, plant and | (592) | (154) | (628) |
| equipment | | | |
+-------------------------------------+------------+------------+----------+
| Interest received | 5 | 26 | 42 |
+-------------------------------------+------------+------------+----------+
| Net cash used in investing | (3,901) | (4,194) | (8,799) |
| activities | | | |
+-------------------------------------+------------+------------+----------+
| | | | |
+-------------------------------------+------------+------------+----------+
| Cashflows from financing activities | | | |
+-------------------------------------+------------+------------+----------+
| Net repayment of borrowings | (736) | (364) | (7,333) |
+-------------------------------------+------------+------------+----------+
| Interest paid | (1,017) | (1,309) | (2,426) |
+-------------------------------------+------------+------------+----------+
| Dividends paid | - | (345) | (345) |
+-------------------------------------+------------+------------+----------+
| Net cash used in financing | (1,753) | (2,018) | (10,104) |
| activities | | | |
+-------------------------------------+------------+------------+----------+
| | | | |
+-------------------------------------+------------+------------+----------+
| | | | |
+-------------------------------------+------------+------------+----------+
| Net increase in cash and cash | (8,429) | 4,769 | 8,563 |
| equivalents | | | |
+-------------------------------------+------------+------------+----------+
| | | | |
+-------------------------------------+------------+------------+----------+
| Cash and cash equivalents at | 17,516 | 8,953 | 8,953 |
| beginning of period | | | |
+-------------------------------------+------------+------------+----------+
| | | | |
+-------------------------------------+------------+------------+----------+
| Cash and cash equivalents at end of | 9,087 | 13,722 | 17,516 |
| period | | | |
+-------------------------------------+------------+------------+----------+
| | | | |
+-------------------------------------+------------+------------+----------+
SHED MEDIA PLC
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
+---------------------+----------+---------+---------+---------+---------+----------+---------+
| Six months ended 30 | Ordinary | Share | Shares | Own | Share | Retained | Total |
| June 2010 | Shares | Premium | to be | shares | based | | |
| (unaudited) | | | issued | held | payment | Earnings | |
| | | | | in | reserve | | |
| | | | | trust | | | |
| | GBP'000 | GBP'000 | | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | GBP'000 | | | | |
+---------------------+----------+---------+---------+---------+---------+----------+---------+
| Balance at 1 | 86 | 33,880 | - | (450) | 1,327 | 28,900 | 63,743 |
| January 2010 | | | | | | | |
+---------------------+----------+---------+---------+---------+---------+----------+---------+
| Profit for the | - | - | - | - | - | 4,029 | 4,029 |
| period | | | | | | | |
+---------------------+----------+---------+---------+---------+---------+----------+---------+
| Other comprehensive | | | | | | | |
| income | | | | | | | |
+---------------------+----------+---------+---------+---------+---------+----------+---------+
| Foreign exchange | - | - | - | - | - | 124 | 124 |
| translation | | | | | | | |
+---------------------+----------+---------+---------+---------+---------+----------+---------+
| Total comprehensive | | | | | | | |
| income for the | - | - | - | - | - | 4,153 | 4,153 |
| period | | | | | | | |
+---------------------+----------+---------+---------+---------+---------+----------+---------+
| Transactions with | | | | | | | |
| owners: | | | | | | | |
+---------------------+----------+---------+---------+---------+---------+----------+---------+
| Share based | - | - | - | - | 166 | - | 166 |
| payments | | | | | | | |
+---------------------+----------+---------+---------+---------+---------+----------+---------+
| Dividends | - | - | 673 | - | - | (1,068) | (395) |
+---------------------+----------+---------+---------+---------+---------+----------+---------+
| Total transactions | - | - | 673 | - | 166 | (1,068) | (229) |
| with owners | | | | | | | |
+---------------------+----------+---------+---------+---------+---------+----------+---------+
| Balance at 30 June | 86 | 33,880 | 673 | (450) | 1,493 | 31,985 | 67,667 |
| 2010 | | | | | | | |
+---------------------+----------+---------+---------+---------+---------+----------+---------+
+----------------------+----------+---------+---------+---------+----------+---------+
| Six months ended 30 | Ordinary | Share | Own | Share | Retained | Total |
| June 2009 | Shares | Premium | shares | based | | |
| (unaudited) | | | held | payment | Earnings | |
| | | | in | reserve | | |
| | | | trust | | | |
| | GBP'000 | GBP'000 | | GBP'000 | | GBP'000 |
| | | | | | GBP'000 | |
| | | | GBP'000 | | | |
+----------------------+----------+---------+---------+---------+----------+---------+
| Balance at 1 January | 80 | 28,740 | (450) | 971 | 23,204 | 52,545 |
| 2009 | | | | | | |
+----------------------+----------+---------+---------+---------+----------+---------+
| Profit for the | | - | - | - | 2,800 | 2,800 |
| period | | | | | | |
+----------------------+----------+---------+---------+---------+----------+---------+
| Total comprehensive | | | | | | |
| income for the | - | - | - | - | 2,800 | 2,800 |
| period | | | | | | |
+----------------------+----------+---------+---------+---------+----------+---------+
| Transactions with | | | | | | |
| owners: | | | | | | |
+----------------------+----------+---------+---------+---------+----------+---------+
| Share based payments | - | - | - | 280 | - | 280 |
+----------------------+----------+---------+---------+---------+----------+---------+
| Dividends | 1 | 645 | - | - | (991) | (345) |
+----------------------+----------+---------+---------+---------+----------+---------+
| Total transactions | 1 | 645 | - | 280 | (991) | (65) |
| with owners | | | | | | |
+----------------------+----------+---------+---------+---------+----------+---------+
| Balance at 30 June | 81 | 29,385 | (450) | 1,251 | 25,013 | 55,280 |
| 2009 | | | | | | |
+----------------------+----------+---------+---------+---------+----------+---------+
SHED MEDIA PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
+----------------------+----------+---------+---------+---------+----------+--------+
| Year ended 31 | Ordinary | Share | Own | Share | Retained | Total |
| December 2009 | Shares | Premium | shares | based | | |
| (Audited) | | | held | payment | Earnings | |
| | | | in | reserve | | |
| | | | trust | | | |
| | | | | | | |
+----------------------+----------+---------+---------+---------+----------+--------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP' |
| | | | | | | 000 |
+----------------------+----------+---------+---------+---------+----------+--------+
| Balance at 1 January | 80 | 28,740 | (450) | 971 | 23,204 | 52,545 |
| 2009 | | | | | | |
+----------------------+----------+---------+---------+---------+----------+--------+
| Profit for the year | - | - | - | - | 6,796 | 6,796 |
+----------------------+----------+---------+---------+---------+----------+--------+
| Other comprehensive | | | | | | |
| income | | | | | | |
+----------------------+----------+---------+---------+---------+----------+--------+
| Foreign exchange | - | - | - | - | (168) | (168) |
| translation | | | | | | |
+----------------------+----------+---------+---------+---------+----------+--------+
| Total comprehensive | | | | | 6,628 | |
| income for the year | - | - | - | - | | 6,628 |
+----------------------+----------+---------+---------+---------+----------+--------+
| Transactions with | | | | | | |
| owners: | | | | | | |
+----------------------+----------+---------+---------+---------+----------+--------+
| Issue of equity | 6 | 5,140 | - | - | - | 5,146 |
| shares | | | | | | |
+----------------------+----------+---------+---------+---------+----------+--------+
| Share based payments | - | - | - | 356 | 49 | 405 |
+----------------------+----------+---------+---------+---------+----------+--------+
| Deferred tax | - | - | - | - | 10 | 10 |
+----------------------+----------+---------+---------+---------+----------+--------+
| Dividends | - | - | - | - | (991) | (991) |
+----------------------+----------+---------+---------+---------+----------+--------+
| Total transactions | 6 | 5,140 | - | 356 | (932) | 4,570 |
| with owners | | | | | | |
+----------------------+----------+---------+---------+---------+----------+--------+
| Balance at 31 | 86 | 33,880 | (450) | 1,327 | 28,900 | 63,743 |
| December 2009 | | | | | | |
+----------------------+----------+---------+---------+---------+----------+--------+
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2010
1. Nature of operations and general information
The principal activity of Shed Media plc and its subsidiaries (the Group) is the
production of programmes for the television industry in the United Kingdom and
the United States and the worldwide acquisition and distribution of rights in
programmes produced by the Group companies as well as programmes produced by
third party clients.
Shed Media plc is the Group's ultimate parent company. It is incorporated and
domiciled in England and Wales. The address of Shed Media plc's registered
office, which is also its principal place of business, is 2 Holford Yard,
London, WC1X 9HD. Shed Media Plc's shares trade on AIM a market operated by the
London Stock Exchange.
Shed Media Plc's condensed consolidated interim financial statements are
presented in Pounds Sterling (GBP'000s) which is also the functional currency of
the parent company.
Basis of preparation
These unaudited interim financial statements are for the six months ended 30
June 2010. They have been prepared in accordance with recognition and
measurement principles of International Financial Reporting Standards (IFRS) as
endorsed by the European Union and implemented in the UK. The financial
information in this interim announcement does not constitute statutory accounts
within the meaning of Section 434 of the Companies Act 2006.
The condensed interim financial statements have been prepared in accordance with
IAS 34 'Interim Financial Reporting' as adopted by the European Union. The
interim financial statements do not include all of the information required for
full annual financial statements accordingly, whilst the interim statements have
been prepared in accordance with the recognition and measurement principles of
IFRS, they cannot be construed as being in full compliance with IFRS.
· The comparative financial information for the year ended 31 December 2009
does not constitute statutory accounts within the meaning of Section 434 of the
Companies Act 2006. The statutory accounts of Shed Media plc for the year ended
31 December 2009 have been reported on by the Company's auditor and have been
delivered to the Registrar of Companies. The report of the auditor was
unqualified and did not contain an emphasis of matter statement. The auditor's
report did not contain statements under Section 498(2) or (3) of the Companies
Act 2006.
· The IFRS's that will be effective in the financial statements for the year
to 31 December 2010 are still subject to change and to the issue of additional
interpretation(s) and therefore cannot be determined with certainty.
Accordingly, the accounting policies for that annual period that are relevant to
this interim financial information will be determined only when the IFRS
financial statements are prepared at 31 December 2010.
· Except as described above, the current and comparative periods to June
have been prepared using accounting policies and practices consistent with those
adopted in the annual financial statements for the year ended 31 December 2009
and are also consistent with those which will be adopted in the 31 December 2010
financial statements.
· There were no other Standards and Interpretations which were in issue but
not effective at the date of authorisation of these condensed interim financial
statements that the directors anticipate will have a material impact on the
financial statements of the Group.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2010
2. Segmental Analysis
The following operating segments have been determined based on the reports
reviewed by the Board that are used to make strategic decisions.
The Board considers the business by type of revenue and geographic location. The
Group primarily operates through its offices in London and Brighton, UK and in
Los Angeles, USA but sells the rights to its programmes worldwide. The Group
differentiates between newly commissioned production revenue both in the UK and
the US and revenue arising from the sale of the rights of the Group's library
including third party rights (Intellectual Property (IP) Revenue).
The central costs segment represents the cost of the head office function. This
operates as an independent function to the trading businesses.
The Board assesses the performance of the operating segments based on a measure
of adjusted EBITDA.
+------------------+-------------+-------------+---------+---------+----------+
| For the six | Broadcaster | Broadcaster | IP | Central | Total |
| months ended | UK | US | | | |
| 30 June 2010 | GBP'000 | GBP'000 | GBP'000 | | GBP'000 |
| | | | | GBP'000 | |
+------------------+-------------+-------------+---------+---------+----------+
| Revenue | 25,472 | 26,238 | 10,541 | - | 62,251 |
+------------------+-------------+-------------+---------+---------+----------+
| Less: | - | - | (3,216) | - | (3,216) |
| intersegment | | | | | |
| sales | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Total revenue | | | | | |
| from third | 25,472 | 26,238 | 7,325 | - | 59,035 |
| parties | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Cost of sales | (21,360) | (19,986) | (1,892) | - | (43,238) |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Gross profit | 4,112 | 6,252 | 5,433 | - | 15,797 |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| General | | | | | |
| administrative | (4,846) | (1,819) | (772) | (775) | (8,212) |
| expenses | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Adjusted EBITDA* | (734) | 4,433 | 4,661 | (775) | 7,585 |
+------------------+-------------+-------------+---------+---------+----------+
| Depreciation and | | | | | |
| | (203) | (122) | (1) | (91) | (417) |
| amortisation ** | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Adjusted EBITA | (937) | 4,311 | 4,660 | (866) | 7,168 |
+------------------+-------------+-------------+---------+---------+----------+
| Less | | | | | |
| amortisation of | (452) | - | (146) | - | (598) |
| intangibles | | | | | |
| arising on | | | | | |
| business | | | | | |
| combinations | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Total operating | (1,389) | 4,311 | 4,514 | (866) | 6,570 |
| (loss) / profit | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Finance income | - | - | - | 5 | 5 |
+------------------+-------------+-------------+---------+---------+----------+
| Finance costs | - | - | - | (1,017) | (1,017) |
+------------------+-------------+-------------+---------+---------+----------+
| Fair value gain | - | - | - | 30 | 30 |
| on financial | | | | | |
| instruments | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Net finance | - | - | - | (982) | (982) |
| costs | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Profit / (loss) | (1,389) | 4,311 | 4,514 | (1,848) | 5,588 |
| before taxation | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Tax (expense) / | 389 | (1,207) | (1,264) | 523 | (1,559) |
| credit | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Profit / (loss) | | | | | |
| for the period | | | | | |
| attributable to | (1,000) | 3,104 | 3,250 | (1,325) | 4,029 |
| owners of the | | | | | |
| parent | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Total | (2,484) | - | (73) | - | (2,557) |
| amortisation | | | | | |
| charge | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Segment assets | 102,615 | 3,827 | 8,212 | 2,662 | 117,316 |
+------------------+-------------+-------------+---------+---------+----------+
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2010
2. Segmental Analysis (Continued)
+------------------+-------------+-------------+---------+---------+----------+
| For the six | Broadcaster | Broadcaster | IP | Central | Total |
| months ended | UK | US | | | |
| 30 June 2009 | GBP'000 | GBP'000 | GBP'000 | | GBP'000 |
| | | | | GBP'000 | |
+------------------+-------------+-------------+---------+---------+----------+
| Revenue | 20,065 | 19,318 | 10,537 | - | 49,920 |
+------------------+-------------+-------------+---------+---------+----------+
| Less: | - | - | (3,452) | - | (3,452) |
| intersegment | | | | | |
| sales | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Total revenue | | | | | |
| from third | 20,065 | 19,318 | 7,085 | - | 46,468 |
| parties | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
| Cost of sales | (15,354) | (14,232) | (1,177) | - | (30,763) |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Gross profit | 4,711 | 5,086 | 5,908 | - | 15,705 |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| General | | | | | |
| administrative | (5,601) | (1,777) | (599) | (1,060) | (9,037) |
| expenses | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Adjusted EBITDA* | (890) | 3,309 | 5,309 | (1,060) | 6,668 |
+------------------+-------------+-------------+---------+---------+----------+
| Depreciation and | | | | | |
| amortisation** | (142) | (67) | (3) | (41) | (253) |
+------------------+-------------+-------------+---------+---------+----------+
| Adjusted EBITA | (1,032) | 3,242 | 5,306 | (1,101) | 6,415 |
+------------------+-------------+-------------+---------+---------+----------+
| Less | | | | | |
| amortisation of | (1,010) | - | (73) | - | (1,083) |
| intangibles | | | | | |
| arising on | | | | | |
| business | | | | | |
| combinations | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Total operating | (2,042) | 3,242 | 5,233 | (1,101) | 5,332 |
| (loss) / profit | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Finance income | 24 | - | - | 8 | 32 |
+------------------+-------------+-------------+---------+---------+----------+
| Finance costs | - | - | - | (1,451) | (1,451) |
+------------------+-------------+-------------+---------+---------+----------+
| Fair value gain | - | - | - | 145 | 145 |
| on financial | | | | | |
| instruments | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Net finance | 24 | - | - | (1,298) | (1,274) |
| income / (costs) | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| (Loss) / profit | (2,018) | 3,242 | 5,233 | (2,399) | 4,058 |
| before taxation | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Tax credit / | 625 | (1,005) | (1,622) | 744 | (1,258) |
| (expense) | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| (Loss) / profit | | | | | |
| for the period | | | | | |
| attributable to | (1,393) | 2,237 | 3,611 | (1,655) | 2,800 |
| owners of the | | | | | |
| parent | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Total | (2,508) | - | (73) | - | (2,581) |
| amortisation | | | | | |
| charge | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+------------------+-------------+-------------+---------+---------+----------+
| Segment assets | 103,035 | 2,123 | 8,121 | 6,848 | 120,127 |
+------------------+-------------+-------------+---------+---------+----------+
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2010
2. Segmental Analysis (Continued)
+--------------------+-------------+-------------+---------+---------+----------+
| For the year ended | Broadcaster | Broadcaster | IP | Central | Total |
| 31 December 2009 | UK | US | | | |
| | GBP'000 | GBP'000 | GBP'000 | | GBP'000 |
| | | | | GBP'000 | |
+--------------------+-------------+-------------+---------+---------+----------+
| Revenue | 40,549 | 35,659 | 23,313 | - | 99,521 |
+--------------------+-------------+-------------+---------+---------+----------+
| Less: intersegment | (377) | - | (6,538) | - | (6,915) |
| sales | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| Total revenue from | | | | | |
| third parties | 40,172 | 35,659 | 16,775 | - | 92,606 |
+--------------------+-------------+-------------+---------+---------+----------+
| Cost of sales | (31,584) | (25,573) | (3,383) | - | (60,540) |
+--------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| Gross profit | 8,588 | 10,086 | 13,392 | - | 32,066 |
+--------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| General | (10,262) | (3,396) | (1,201) | (1,821) | (16,680) |
| administrative | | | | | |
| expenses | | | | | |
| | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| Adjusted EBITDA* | (1,674) | 6,690 | 12,191 | (1,821) | 15,386 |
+--------------------+-------------+-------------+---------+---------+----------+
| Depreciation and | (562) | (28) | (5) | (139) | (734) |
| amortisation** | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| Adjusted EBITA* | (2,236) | 6,662 | 12,186 | (1,960) | 14,652 |
+--------------------+-------------+-------------+---------+---------+----------+
| Less amortisation | | | | | |
| of intangibles | (1,830) | - | (146) | - | (1,976) |
| arising on | | | | | |
| business | - | - | - | (409) | (409) |
| combinations | | | | | |
| | | | | | |
| Exceptional items | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| Total operating | (4,066) | 6,662 | 12,040 | (2,369) | 12,267 |
| (loss)/profit | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| Finance income | - | - | - | 42 | 42 |
+--------------------+-------------+-------------+---------+---------+----------+
| Finance costs | - | - | - | (2,803) | (2,803) |
+--------------------+-------------+-------------+---------+---------+----------+
| Fair value gain on | - | - | - | 268 | 268 |
| financial | | | | | |
| instruments | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| Net finance costs | - | - | - | (2,493) | (2,493) |
+--------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| (Loss)/profit | (4,066) | 6,662 | 12,040 | (4,862) | 9,774 |
| before taxation | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| Tax | 1,138 | (2,135) | (3,371) | 1,390 | (2,978) |
| credit/(expense) | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| (Loss)/profit for | | | | | |
| the year | | | | | |
| attributable to | (2,928) | 4,527 | 8,669 | (3,472) | 6,796 |
| owners of the | | | | | |
| parent | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| Total amortisation | (6,414) | - | (146) | (22) | (6,582) |
| charge | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
| Segment assets | 109,548 | 2,438 | 9,465 | 2,271 | 123,722 |
+--------------------+-------------+-------------+---------+---------+----------+
| | | | | | |
+--------------------+-------------+-------------+---------+---------+----------+
* Adjusted EBITDA and adjusted EBITA are stated before intangibles amortisation
arising from business combinations and exceptional items
** Amortisation relating to other intangible assets
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2010
3. Finance income and costs
+---------------+-----------+----------------+----------+
| | Six | Six | Year |
| | months | months | ended |
| | ended | ended | 31 |
| | 30 | 30 | December |
| | June | June | 2009 |
| | 2010 | 2009 | Audited |
| | Unaudited | Unaudited | GBP'000 |
| | GBP'000 | GBP'000 | |
+---------------+-----------+----------------+----------+
| Interest | 5 | 32 | 42 |
| receivable | (1,017) | (1,309) | (2,661) |
| on cash | - | (142) | (142) |
| deposits | | | |
| Interest | | | |
| payable on | | | |
| borrowings | | | |
| Discounting | | | |
| deferred | | | |
| consideration | | | |
+---------------+-----------+----------------+----------+
| Fair | 30 | 145 | 268 |
| value | | | |
| gain | | | |
| on | | | |
| financial | | | |
| instruments | | | |
| - interest | | | |
| rate collar | | | |
+---------------+-----------+----------------+----------+
| | (982) | (1,274) | (2,493) |
+---------------+-----------+----------------+----------+
4. Dividend
The final scrip dividend of 1.25p per ordinary share relating to the year ending
31 December 2009, totalled GBP395,476 in cash and GBP673,404 in shares with a
reference price of 77.8p, was approved at the AGM on 30 June 2010 and was
settled on 9 July 2010 to shareholders registered at the close of business on 21
May 2010.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2010
5. Earnings per Share
Basic earnings per share are calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares in issue
during the period. The weighted average number of shares has been adjusted for
the issue of shares during the period and for treasury shares held.
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion for all dilutive potential ordinary
shares. These represent share options granted to employees where the exercise
price is less than the average market price of the Group's ordinary shares and
also contingently issuable shares on a business combination for which the
conditions have not been met.
The table below sets out the adjustments in respect of diluted potential
ordinary shares:
+-------------+------------+------------+------------+
| | Six | Six | Year |
| | months | months | ended |
| | ended | ended | 31 |
| | 30 | 30 | December |
| | June | June | 2009 |
| | 2010 | 2009 | Audited |
| | Unaudited | Unaudited | No of |
| | No of | No of | Shares |
| | Shares | Shares | |
+-------------+------------+------------+------------+
| Weighted | 85,516,967 | 79,313,600 | 82,431,039 |
| average | | | |
| number | | | |
| of | | | |
| shares | | | |
| used in | | | |
| basic | | | |
| earnings | | | |
| per | | | |
| share | | | |
| calculation | | | |
+-------------+------------+------------+------------+
| Dilutive | 1,229,111 | 7,772,755 | 3,909,615 |
| shares | | | |
+-------------+------------+------------+------------+
| Weighted | | | |
| average | 86,746,078 | 87,086,355 | 86,340,654 |
| number | | | |
| of | | | |
| shares | | | |
| used in | | | |
| diluted | | | |
| earnings | | | |
| per | | | |
| share | | | |
| calculation | | | |
+-------------+------------+------------+------------+
The adjusted EPS has been calculated to reflect the underlying profitability of
the business by excluding the effect of amortisation of intangible assets
arising on business combinations, discounting of deferred consideration, fair
value gain / loss on interest rate collar, exceptional items and the taxation
impact of these items.
The diluted adjusted earnings per share calculation is based on the diluted
number of shares calculated above. The basic and diluted earnings per share and
the adjusted basic and diluted earnings per share calculations are as follows:
+---------------+-----------+-----------+----------+
| | Six | Six | Year |
| | months | months | ended |
| | ended | ended | 31 |
| | 30 | 30 | December |
| | June | June | 2000 |
| | 2010 | 2009 | Audited |
| | Unaudited | Unaudited | GBP'000 |
| | GBP'000 | GBP'000 | |
+---------------+-----------+-----------+----------+
| Profit | 4,029 | 2,800 | 6,796 |
| for | | | |
| the | | | |
| period | | | |
| attributable | | | |
| to owners of | | | |
| the parent | | | |
+---------------+-----------+-----------+----------+
| Amortisation | 598 | 1,083 | 1,976 |
| of | | | |
| intangible | | | |
| assets | | | |
+---------------+-----------+-----------+----------+
| Exceptional | - | - | 409 |
| items - | | | |
| restructuring | | | |
| costs | | | |
+---------------+-----------+-----------+----------+
| Discounting | - | 142 | 142 |
| deferred | | | |
| consideration | | | |
+---------------+-----------+-----------+----------+
| Fair | (30) | (145) | (268) |
| value | | | |
| gain | | | |
| on | | | |
| interest | | | |
| rate | | | |
| collar | | | |
+---------------+-----------+-----------+----------+
| Taxation | (88) | (302) | (520) |
| impact | | | |
| of above | | | |
| items | | | |
+---------------+-----------+-----------+----------+
| Adjusted | 4,509 | 3,578 | 8,535 |
| profit | | | |
| for the | | | |
| period | | | |
| attributable | | | |
| to owners of | | | |
| the parent | | | |
+---------------+-----------+-----------+----------+
| | | | |
| | | | Pence |
| | Pence | Pence | |
+---------------+-----------+-----------+----------+
| Basic | 4.71p | 3.53p | 8.25p |
| earnings | | | |
| per | | | |
| share | | | |
+---------------+-----------+-----------+----------+
| Diluted | 4.64p | 3.21p | 7.87p |
| earnings | | | |
| per | | | |
| share | | | |
+---------------+-----------+-----------+----------+
| | | | |
+---------------+-----------+-----------+----------+
| Adjusted | 5.27p | 4.51p | 10.36p |
| basic | | | |
| earnings | | | |
| per | | | |
| share | | | |
+---------------+-----------+-----------+----------+
| Adjusted | 5.20p | 4.11p | 9.89p |
| diluted | | | |
| earnings | | | |
| per | | | |
| share | | | |
+---------------+-----------+-----------+----------+
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2010
6. Deferred consideration on the acquisition of a subsidiary
+---------------+---------+
| | Total |
| | |
| | |
| | GBP'000 |
+---------------+---------+
| Opening | 4,327 |
| position | |
| 1 | |
| January | |
| 2009 | |
+---------------+---------+
| Additions | 1,000 |
| in the | |
| period | |
+---------------+---------+
| Unwinding | 142 |
| of | |
| discount | |
| on | |
| deferred | |
| consideration | |
+---------------+---------+
| Utilised | (469) |
| in the | |
| period | |
+---------------+---------+
| Balance | 5,000 |
| at 30 | |
| June | |
| 2009 | |
+---------------+---------+
| Paid | (5,000) |
| in | |
| Period | |
+---------------+---------+
| Balance | - |
| at 31 | |
| December | |
| 2009 and | |
| at 30 | |
| June | |
| 2010 | |
+---------------+---------+
7. Share Capital
The share capital of Shed Media plc consists of ordinary shares with a par value
of 0.1p each. All shares are equally eligible to receive dividends and the
repayment of capital and represent one vote at shareholders' meetings
+------------------------------------------------------+-----------+-----------+----------+
| | Six | Six | Year |
| | months | months | ended |
| | ended | ended | 31 |
| | 30 | 30 | December |
| | June | June | 2009 |
| | 2010 | 2009 | Audited |
| | Unaudited | Unaudited | GBP'000 |
| | GBP'000 | GBP'000 | |
+------------------------------------------------------+-----------+-----------+----------+
| Allotted, called up and fully paid | | | |
| 85,966,967 ordinary shares of 0.1p each (30 June | | | |
| 2009: 80,681,993 ordinary shares of 0.1p each; 31 | 86 | 81 | 86 |
| December 2009: 85,966,967 ordinary shares of 0.1p | | | |
| each) | | | |
+------------------------------------------------------+-----------+-----------+----------+
| Authorised | | | |
| 105,000,000 ordinary shares at 0.1p each | | | |
| (2009:105,000,000 ordinary shares at 0.1p each) | 105 | 105 | 105 |
+------------------------------------------------------+-----------+-----------+----------+
A summary of movements from 1 January 2009 is detailed below:
+-----------------------------------------------------+------------------+
| | |
| | No of |
| | Shares |
+-----------------------------------------------------+------------------+
| At 1 January 2009 | 79,716,561 |
+-----------------------------------------------------+------------------+
| 17 June 2009 issue of shares of scrip dividend | 965,432 |
+-----------------------------------------------------+------------------+
| At 30 June 2009 | 80,681,993 |
+-----------------------------------------------------+------------------+
| 28 September 2009 issue of shares for Wall to Wall | 5,237,127 |
| Earn Out | |
+-----------------------------------------------------+------------------+
| 29 September 2009 issue of shares following share | 47,847 |
| plan issue | |
+-----------------------------------------------------+------------------+
| At 31 December 2009 and 30 June 2010 | 85,966,967 |
+-----------------------------------------------------+------------------+
| | |
+-----------------------------------------------------+------------------+
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2010
8. Borrowings
The maturity analysis of cashflows relating to borrowings is as follows:
+------------------+---------------+---------+---------+----------+
| 30 June 2010 | Less than | One to | Two to | TOTAL |
| | one year | two | | GBP'000 |
| | GBP'000 | years | five | |
| | | GBP'000 | years | |
| | | | GBP'000 | |
+------------------+---------------+---------+---------+----------+
| | | | | |
+------------------+---------------+---------+---------+----------+
| Facility A | 7,455 | 7,000 | 6,000 | 20,455 |
+------------------+---------------+---------+---------+----------+
| Facility B | 4,999 | - | - | 4,999 |
+------------------+---------------+---------+---------+----------+
| Unamortised loan | - | - | (684) | (684) |
| fees | | | | |
+------------------+---------------+---------+---------+----------+
| Total | 12,454 | 7,000 | 5,316 | 24,770 |
+------------------+---------------+---------+---------+----------+
+------------------+---------------+---------+---------+----------+
| 30 June 2009 | Less than | One to | Two to | TOTAL |
| | one year | two | | GBP'000 |
| | GBP'000 | years | five | |
| | | GBP'000 | years | |
| | | | GBP'000 | |
+------------------+---------------+---------+---------+----------+
| | | | | |
+------------------+---------------+---------+---------+----------+
| Facility A | 8,178 | 6,236 | 12,986 | 27,400 |
+------------------+---------------+---------+---------+----------+
| Facility B | 3,499 | - | - | 3,499 |
+------------------+---------------+---------+---------+----------+
| Unamortised loan | - | - | (804) | (804) |
| fees | | | | |
+------------------+---------------+---------+---------+----------+
| Production Loan | 2,144 | - | - | 2,144 |
+------------------+---------------+---------+---------+----------+
| Total | 13,821 | 6,236 | 12,182 | 32,239 |
+------------------+---------------+---------+---------+----------+
+------------------+---------------+---------+---------+----------+
| 31 December 2009 | Less than | One to | Two to | TOTAL |
| | one year | two | | GBP'000 |
| | GBP'000 | years | five | |
| | | GBP'000 | years | |
| | | | GBP'000 | |
+------------------+---------------+---------+---------+----------+
| | | | | |
+------------------+---------------+---------+---------+----------+
| Facility A | 6,752 | 7,000 | 7,939 | 21,691 |
+------------------+---------------+---------+---------+----------+
| Facility B | 4,499 | - | - | 4,499 |
+------------------+---------------+---------+---------+----------+
| Unamortised loan | - | - | (684) | (684) |
| fees | | | | |
+------------------+---------------+---------+---------+----------+
| Loan notes | 500 | - | - | 500 |
+------------------+---------------+---------+---------+----------+
| Total | 11,751 | 7,000 | 7,255 | 26,006 |
+------------------+---------------+---------+---------+----------+
The bank loans and overdraft are secured by a fixed and floating charge over the
Group's assets.
Facility A of GBP32m was drawn on 29 November 2007 and is repayable over 5
years. The terms of the arrangement were renegotiated on 6 February 2009.
Interest is payable at 2.75% over Libor and additional interest payments are due
from the structured interest rate collar in place over the facility up to a
maximum of 5.75%. Facility B was also renegotiated on 6 February 2009 and is
renegotiable on an annual basis. Interest is payable at 2.5% over Libor.
The Loan Notes were issued on 2 Oct 2009 and they were fully paid on 5 May 2010.
9. Related party transactions
The loan notes of GBP357,000 issued to Alexander Graham in relation to the Wall
to Wall Holdings Limited earn out were settled on the 5 May 2010.
The loan notes of GBP19,625 issued to Claire Hungate, relating to the Wall to
Wall Holdings Limited Earn Out were settled on 5 May 2010.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2010
Claire Hungate is a Director of Brand Events Limited in which the Group also
hold a 22.5% stake. The Group participated in a joint venture with Brand Events
Limited, which was conducted on normal trading terms except that the debtor will
not be recovered until the joint venture event is profit making. There were no
transactions in the six months ending 30 June 2010 and at 30 June 2010 there was
an outstanding debtor balance owed to the group of GBP88,167 (30 June 2009:
GBP88,167 and 31 December 2009 GBP88,167).
10. Contingent Liabilities
At 30 June 2010 there was a contingent liability relating to a HMRC enquiry into
the Wall to Wall and Twenty Twenty EMI schemes which existed at the date of
their acquisitions. The enquiry is at an early stage and therefore it is
currently not possible to estimate the potential liability with any certainty.
Should a liability arise the Group would seek reimbursements of these amounts
under the terms of the warranties attaching to the acquisitions of these
companies.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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