Company Announcements

Interim results for the six months ended 30 June

Source: RNS
RNS Number : 8872A
Zinc Media Group PLC
28 September 2022
 

    28 September 2022

 

Zinc Media Group plc

("Zinc Media", the "Group" or the "Company")

 

Interim results for the six months ended 30 June 2022

 

Zinc Media Group plc, the award-winning television, brand, content and audio production group, is pleased to announce its unaudited interim results for the six months to 30 June 2022 ("H1 2022").    

Headlines

The Group is pleased to report excellent progress in H1 2022 and continues to trade in line with market expectations for the current financial year. The first half of 2022 includes the following highlights:

·      Revenue of £10.8m (H1 2021: £7.0m), an increase of 54% year-on-year.

·      Adjusted EBITDA[1] loss of £0.65m (H1 2021: loss of £1.1m), an improvement of £0.45m over the prior year period.

·      Gross margins in the period were 33% (H1 2021: 34%), which remain significantly up on 2019 and 2020 when they were 25% and 30% respectively.

·      The acquisition of The Edge Picture Company ("The Edge") post period-end, announced in August, will add scale to the existing Group, supporting long-term profitability. The Edge is one of the largest brand and corporate film making production companies in the UK. It closely aligns with the Group's other film-based production businesses and is a fantastic fit for Zinc Media.

·      The Group completed a fundraise of £5m (before expenses) alongside the acquisition of The Edge. This was supported by several new and existing institutional shareholders. The proceeds of the placing were used to finance the acquisition and will also provide additional growth capital for the Group.

·      As at 26 September 2022 the enlarged group has booked £27m of revenue which has or is expected to be delivered in 2022, representing an increase of £10m since the last trading update in May 2022 and an improvement of £10m compared to the same point in 2021 in relation to that financial year.

·      The Group has a strong pipeline of potential new business for 2022 and 2023 and is confident of trading in line with market expectations.

Operational Highlights

·      There were a number of significant programme successes in the first half of the year, which included:

Being awarded the weekly BBC ONE series Sunday Morning Live for an initial two year term in a competitive tender process;

The recommission of the Group's largest ever series with Channel 5;

The recommission from the Warner Bros. Discovery Group of Spooked Scotland;

A landmark programme for BBC ONE titled Tom Daley: Illegal to be me;

Afghanistan: Getting Out, a major production for the BBC; and

Nominations for prestigious industry awards including a BAFTA, an RTS award and two Emmys in recognition of the Group's quality and impactful content.

Outlook

·      The outlook for the Group is positive, with the recent period of new business conversion underpinning the Board's confidence in meeting market expectations for the financial year, including being profitable in the second half of the year.

·      The Edge are performing very well: they are having their best ever year and expect to post record revenues in 2022.

·    The acquisition of The Edge will further strengthen and provide significant scale to the Group, resulting in annualised proforma Group revenues for FY22 of over £35m.  

Mark Browning, Chief Executive, commented: "We are delighted with the current performance of the Group which has seen a considerable increase in turnover whilst maintaining an attractive margin, with good visibility of sustainable profitability.  The organic growth, coupled with the acquisition of The Edge, provides initial scale and the Board is optimistic about the Group's outlook and views the future with confidence."

A copy of the interim results will be made available on the Company's website, zincmedia.com.

For further information, please contact:

 

Zinc Media Group plc                                                                                       +44 (0) 20 7878 2311

Mark Browning, CEO / Will Sawyer, CFO

www.zincmedia.com

 

Singer Capital Markets (NOMAD and Broker to Zinc Media Group plc)     +44 (0) 20 7496 3000

Mark Taylor / George Tzimas

 

IFC Advisory Ltd (Financial PR)                                                                     +44 (0) 20 3934 6630

Graham Herring / Zach Cohen



 

CHAIRMAN'S STATEMENT

The first six months of 2022 demonstrate the Group has largely recovered from the Covid pandemic with revenues up over 50% compared to the same period last year and is trading in line with market expectations for the full year. With the acquisition of The Edge, which was completed in August, and the scale this brings, we look forward to sustained profitability in 2023.

The Edge is synergistic with our current portfolio and was priced at a sensible valuation multiple. The level of support from new and existing shareholders for this acquisition has been overwhelming, and we thank all investors for their ongoing support. Together with our employees and clients, we are building a premium content creation Group with the ambition and financial backing to operate at significant scale.

The Group continues to deliver outstanding programmes and content across all divisions. The award of the BBC ONE series Sunday Morning Live demonstrates that the Group is ambitious to enter new markets; the renewal of the Group's largest ever series commission, Bargain Loving Brits in the Sun for Channel 5, demonstrates sustained creative and commercial firepower; and the brilliant Tom Daley: Illegal to be me for BBC ONE shows the Group continues to produce some of the most talked about factual television in the UK. With Zinc Communicate also growing by almost 80% in the period, this is a Group that is attracting the right kind of attention.

September 2022 concludes the Group's initial three year strategic plan which was announced in 2019, with all aspects successfully delivered, including the Group's latest acquisition. This is a phenomenal achievement given the significant headwinds encountered due to the Covid pandemic and current global economic conditions.  

Notwithstanding inflationary pressures and the impending economic downturn, the future of Zinc Media is looking very positive. Current strong trading and the acquisition of The Edge post period end allows for the return of market forecasts. The Group is on course for a period of steady organic growth and sustainable profitability, with the Board focussed on providing returns and value to shareholders. 

The Board would like to thank the management team, employees and freelancers for their professional and dedicated work, and our shareholders for their continued support.

 

Christopher Satterthwaite

Chairman



 

CEO'S REPORT

CURRENT TRADING, STRATEGY AND MARKET OUTLOOK

Trading in the first six months of the year has been strong with organic growth seeing revenues increase 54% to £10.8m (H1: 2021 £7.0m) with an adjusted EBITDA loss of £0.65m, an improvement of £0.45m over the same period in the prior year. 

Following the acquisition of The Edge in August, market estimates were reinstated, and the Group is trading in line with market expectations and expecting to be profitable at EBITDA level in H2 2022.

As at 26 September 2022 the enlarged group has booked £27m of revenue which has or is expected to be delivered in 2022, representing an increase of £10m since the last trading update in May 2022, and an improvement of £10m on the same point in 2021 in relation to that financial year. The Edge's financial performance will be consolidated in the Group's results from 23 August 2022 (the date of acquisition).

The strategy for 2023 and beyond is to deliver organic growth at both the revenue and EBITDA level while maintaining healthy cash reserves and continuing to strengthen the balance sheet.  As the Group delivers these objectives, it will also seek further growth through selective acquisitions. These may accelerate growth in existing business areas, further diversify Group revenues in new content genres in either television or Zinc Communicate or further build the Group's non-UK business. It remains our ambition to be a listed content producing Group operating at substantial scale.

The first six months of 2022 have seen a number of editorial highlights and new business launches in the Group. 

 

The television labels continue to produce some of the UK's most watched television. H1 2022 saw Red Sauce win the Group's largest ever volume series, a recommission of the now highly successful Bargain Loving Brits in the Sun for Channel 5. This label was launched in 2020. This was recommissioned for 54 episodes and is now running in a daytime slot as well as a peak time slot and delivering excellent ratings for the channel.  It has the added benefit to the buyer in that it can also run on some of the other channels owned by Viacom, making it a strong commercial proposition. Brook Lapping continues to produce highly reputable television. This includes the excellent Afghanistan: Getting Out which explored the chaotic withdrawal of western forces from Afghanistan, a prime-time BBC ONE documentary titled Tom Daley: Illegal to be me, which was broadcast to coincide with the Commonwealth Games and shone a light on the plight of many LGBTQ+ athletes from countries where it is illegal to be gay. The first half of the year also saw the launch of the Group's latest television production label, Rex, which aims to diversify television revenues into the large market for factual entertainment, which can deliver long running series and commercially valuable IP and formats.

 

Tern TV's Belfast based division delivered another successful series of the daytime series Critical Incident for BBC ONE. Tern TV Glasgow delivered their first series for Really (part of Warner Bros. Discovery) with a programme titled Spooked Scotland, exploring the paranormal activity north of the border. H1 2022 saw the launch of the Group's new weekly BBC ONE series Sunday Morning Live, which is produced in partnership with Green Inc who are based in Northern Ireland and have live television expertise. Tern TV also delivered one of the BBC's masthead Easter programmes, Jill Halfpenny's Easter Walks, for BBC ONE. Tern continues to be a trusted supplier to BBC Scotland, producing many programmes for the channel including Addicted which is presented by Darren McGarvey.

 

Zinc Communicate continues to grow rapidly with revenues up 78% on the same period last year. It has diversified its digital publishing revenues off the back of new products focusing on sustainable energy and producing content for the home renovation market championing green initiatives. The video marketing business, which sells and produces corporate films, secured an enviable list of new partners in the reporting period including The London Institute of Banking and Finance, Sustainable Travel International and the Association for UK Interactive Entertainment, and films are being made for blue chip companies including Shell, American Express and Easyjet.  Revenues in this division are on course to double in 2022. The branded entertainment and audio division grew audio revenues with new business from the BBC, and brand partnerships with the likes of Universal Music, The Independent and The Evening Standard.

 

Post period end, and off the back of outstanding technical innovation in the market of post-production, the Group has launched a new UK wide business called Bumblebee Post Production. Bumblebee is led by Olly Strous, the Group's CTO, who joined Zinc Media in the summer of 2021.  It offers the television and branded content market a highly automated, fully remote technical solution for uploading content and post producing programmes and aims to be carbon neutral. It will make use of Zinc Media's existing technical hubs in London, Manchester, Glasgow and Belfast, and has already secured clients including Avalon Television and the BBC.

 

The Group continues to be recognised within its industries for producing market leading, high-quality content, with nominations for prestigious awards including a BAFTA award, an RTS award, two Emmy's and a Broadcast Digital Award.

 

The market for premium factual television along with content for brands and media owners remains strong.  Broadcasters, platforms, media owners and brands continue to see content as a differentiator with their consumers.  Zinc Media Group now produces for all these markets and, while growing, still maintains a relatively small market share. While there will now be some recessionary headwinds, particularly in the UK, which may well impact speed of growth, the Group remains confident of delivering further organic growth and profitability in the years ahead.

 

 

 

Mark Browning

Chief Executive Officer

 

 

 

 

 

 

 

 



 

CFO'S REPORT

INCOME STATEMENT

Group revenues in the reporting period were up by over 50% year-on-year to £10.8m (H1 2021: £7.0m).  All divisions increased revenues year-on-year in the period, with London TV up 62%, Tern TV up 37% and Zinc Communicate up 78%.

Gross margins in the period were 33% (H1: 2021 34%), which remain significantly up on 2019 and 2020 when they were 25% and 30% respectively. 

Gross margins were lower in the period than the full year 2021, when they reached 38%, as a result of the Group deciding to invest in winning certain lower margin contracts in order to gain a foothold in new television markets, including live TV, that can provide the Group with high volume commissions in more diverse areas. This includes multi-million pound contracts for the BBC and Channel 5.

The Group has continued to invest in anticipation of further growth in H2. It has invested in new business winning talent in television, including launching a new television label called Rex in March, in sales and production teams in Zinc Communicate, and in technology, which has led to the launch of the post-production business, Bumblebee.

These initiatives suppressed the full impact of the healthy uplift in revenue during the period, resulting in an Adjusted EBITDA loss of £0.65m. This is a £0.45m improvement year-on-year, and improved profitability is anticipated in H2 2022 in line with market expectations.

Dividend

No dividend is proposed.  The Board considers the Group's investment plans, financial position and business performance in determining when to pay a dividend.

STATEMENT OF FINANCIAL POSITION

Assets

Cash at the end of June 2022 was £2.6m, having decreased by £3.0m during the period as a result of working capital required to service the increase in activity and due to the unwinding of working capital held at December 2021 where broadcasters had funded some large productions up front. Conversely trade and other receivables have increased by £3.0m since December 2021 as a result of the volume of commissions increasing markedly.

As at the end of August 2022 the Group's cash position had risen to £5.4m, driven by the proceeds from the capital fundraise in August.

Equity and Liabilities

The £0.8m reduction in equity and liabilities results from the loss for the period and a £1.0m increase in trade and other payables as a result of the increased working capital requirement in the period.

The Group had an outstanding balance on long-term debt of £3.5m as at 30 June 2022 which has remained almost unchanged (2021: £3.4m), held by two of the Company's shareholders and with no financial covenants relating to the debt. During the period the long-term debt holders agreed to extend the term of the debt by two years, such that the repayment of the debt is now due on 31 December 2024.

Post balance sheet events

The Company announced in August 2022 that it had acquired The Edge Picture Co Limited, one of the largest brand and corporate film making production companies in the UK, for an initial consideration of £1.56 million in cash and £0.54 million satisfied by the issue of 540,000 new ordinary shares in the Group, and deferred consideration of up to a further £3.875 million to be satisfied by a combination of cash and ordinary shares in the Company.

The Company also announced in August 2022 that it had raised £5.0 million (before expenses) by way of a placing of 5,037,059 ordinary shares.  

The proceeds of the placing were used to finance the initial cash consideration due in respect of the acquisition and will also provide additional growth capital for the enlarged business.

 

Will Sawyer

Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Zinc Media Group plc consolidated income statement

 

 

For the six months ended 30 June 2022

 

 

 


Unaudited

Unaudited

Audited

 



Half Year to

Half Year to

Year to

 



30 June

30 June

31 December

 



2022

2021

2021

 


Note

£'000

£'000

£'000

 






 

Revenue

3

10,775

6,975

17,491

 

Cost of sales


(7,263)

(4,628)

(10,759)

 

Gross Profit


3,512

2,347

6,732

 

Operating expenses


(5,118)

(4,295)

(9,097)

 

Operating loss


(1,606)

(1,948)

(2,365)

 

Depreciation & amortisation


737

727

1,486

 

Share based payment charge


92

40

122

 

(Profit)/loss on disposal of tangible assets


-

(1)

4

 

Exceptional items

4

132

85

141

 

Adjusted EBITDA


(645)

(1,097)

(612)

 

Finance costs


(154)

(121)

(241)

 

Finance income


-

-

-

 

Loss before tax


(1,760)

(2,069)

(2,606)

 

Taxation credit


63

61

86

 

Loss for the period


(1,697)

(2,008)

(2,520)

 

Attributable to:


 



 

Equity holders


(1,701)

(2,016)

(2,544)

 

Non-controlling interest


4

8

24

 

Retained loss for the period


(1,697)

(2,008)

(2,520)

 



 



 

Earnings per share


 



 

Basic Loss per Share

5

(10.48)p

(12.61)p

(15.80)p

 

Diluted Loss per Share

5

(10.48)p

(12.61)p

(15.80)p

 

 

 

 



 

Zinc Media Group plc consolidated statement of financial position

As at 30 June 2022

 







 

 

 

Unaudited

Unaudited

 

Audited


 

 

 

30 June

30 June

31 December


 

 

 

2022

2021

2021


 


Note

£'000

£'000

£'000


 

Assets






 

Non-current






 

Goodwill and intangible assets

6

3,464

4,153

3,800


 

Property, plant and equipment

7

850

842

      904


 

Right-of-use assets

9

943

1,269

1,159


 



5,257

6,264

    5,863


 

Current assets


 




 

Inventories


63

154

226


 

Trade and other receivables

8

6,327

3,505

     3,887


 

Cash and cash equivalents


2,596

5,460

     5,608


 



8,986

9,119

     9,721


 

Total assets


14,243

15,383

       15,584


 

Equity and liabilities






 

Shareholders' equity


 




 

Called up share capital

11

20

20

     20


 

Share premium account


4,785

4,785

      4,785


 

Merger reserve


27

27

      27


 

Share Based payment reserve


369

195

    277


 

Retained earnings


(3,087)

(858)

     (1,386)


 

Total equity attributable to equity holders of the parent


2,114

4,169

    3,723


 

Non-controlling interests


28

18

    24


 

Total Equity


2,142

4,187

3,747


 

Liabilities


 




 

Non-current


 




 

Borrowings


3,471

3,433

-


 

Deferred tax


128

218

    190


 

Provisions


250

101

        250


 

Lease liabilities

9

530

931

   735


 



4,379

4,683

      1,175


 

Current


 




 

Trade and other payables

10

7,300

5,987

      6,799


 

Current tax liabilities


4

10

          4


 

Lease liabilities

9

418

516

          431


 

Borrowings


-

-

3,428


 



7,722

6,513

        10,662


 

Total equity and liabilities


14,243

15,383

15,584


 

 



 

 

Zinc Media Group plc consolidated statement of cash flows

 

 

For the six months ended 30 June 2022

 

 

 

 




 

 

Unaudited

Unaudited

Audited


 

Half year to

Half year to

Year to


 

30 June

30 June

31 December


 

2022

2021

2021



£'000

£'000

£'000


Cash flows from operating activities





Loss for the period before tax

(1,760)

(2,069)

(2,606)


Adjustments for:

 




Depreciation

385

375

782


Amortisation and impairment of intangibles

352

352

704


Finance costs

154

121

241


Share based payment charge

92

40

122


(Gain)/Loss on disposal of assets

-

(1)

4


Consideration paid in shares

-

131

131



(777)

(1,051)

(623)


Decrease/(increase) in inventories

164

30

(42)


(Increase)/decrease in trade and other receivables

(2,440)

774

392


Increase/(decrease) in trade and other payables

501

(784)

28


Cash (used in)/generated from operations

(2,552)

(1,031)

(245)


Interest on leases

-

(33)

-


Net cash flows (used in)/generated from operating activities

(2,552)

(1,064)

(245)


Investing activities

 




Purchase of property, plant and equipment

(115)

(42)

(273)


Purchase of intangible assets

(16)

-

-


Net cash flows used in investing activities

(131)

(42)

(273)


Financing activities

 




Interest paid

(111)

(83)

(241)


Principal elements of lease payments

(218)

(160)

(432)


Net cash flows generated used in financing activities

(329)

(243)

(673)


Net decrease in cash and cash equivalents

(3,012)

(1,349)

(1,191)


Translation differences

-

4

(6)


Cash and cash equivalents at beginning of period

5,608

6,805

6,805


Cash and cash equivalents at end of period

2,596

5,460

5,608


 


 

 

 

 

Share

capital

Share

premium

Share based payment

reserve

Merger

reserve

Retained

earnings

 

Total equity attributable to equity holders of the parent

Non-controlling

interest

Total

equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 1 January 2021

20

4,654

155

27

1,158

6,014

12

6,026

Total comprehensive income for the year

-

-

-

-

(2,544)

(2,544)

24

(2,520)

Equity-settled share-based payments

-

-

122

-

-

122

-

122

Consideration paid in shares

-

131

-

-

-

131

-

131

Dividends paid

-

-

-

-

-

-

(12)

(12)

Total transactions with owners of the Company

-

131

122

-

(2,544)

(2,291)

12

(2,279)

Balance at 31 December 2021

20

4,785

277

27

(1,386)

3,723

24

3,747

 

 

 

 

 

 

 

 

 

Balance at 1 January 2021

20

4,654

155

27

1,158

6,014

12

6,026

Total comprehensive income for the year

-

-

-

-

(2,016)

(2,016)

8

(2,008)

Equity-settled share-based payments

-

-

40

-

-

40

-

40

Consideration paid in shares

0

131

-

-

-

131

-

131

Dividends paid

-

-

-

-

-

-

(2)

(2)

Total transactions with owners of the Company

0

131

40

-

(2,016)

(1,845)

6

(1,839)

Balance at 30 June 2021

20

4,785

195

27

(858)

4,169

18

4,187

 

 

 

 

 

 

 

 

 

Balance at 1 January 2022

20

4,785

277

27

(1,386)

3,723

24

3,747

Total comprehensive income for the year

-

-

-

-

(1,701)

(1,701)

4

(1,697)

Equity-settled share-based payments

-

-

92

-

-

92

-

92

Total transactions with owners of the Company

-

-

92

-

(1,701)

(1,609)

4

(1,605)

Balance at 30 June 2022

20

4,785

369

27

(3,087)

2,114

28

2,142

 


Notes to the consolidated financial statements

 

1)   GENERAL INFORMATION

 

The Company is a public limited company incorporated in the United Kingdom. The address of its registered office is 4th Floor, Saltire Court, 20 Castle Terrace, Edinburgh EH1 2EN. Its shares are traded on the AIM Market of the London Stock Exchange plc (LSE:ZIN).

 

2)   BASIS OF PREPARATION

 

The interim results for the six months ended 30 June 2022 have been prepared on the basis of the accounting policies expected to be used in the 2022 Zinc Media Group plc Annual Report and Accounts and in accordance with the recognition and measurement requirements of UK adopted International Accounting Standards (IAS) but does not include all the disclosures that would be required under IAS and should be read in conjunction with the accounts for the period ended 31 December 2021.

 

The same accounting policies, presentation and methods of computation are followed in these interim condensed set of financial statements as have been applied in the Group's latest annual audited financial statements.

 

The interim results, which were approved by the Directors on 26 September 2022, are unaudited.  The interim results do not constitute statutory financial statements within the meaning of section 434 of the Companies Act 2006.

 

Comparative figures for the 12 months ended 31 December 2021 have been extracted from the statutory accounts for the Group for that period, which carried an unqualified audit report, did not include a reference to any matters to which the auditor drew attention by way of emphasis of matter, did not contain a statement under section 498(2) or (3) of the Companies Act 2006 and have been delivered to the Registrar of Companies.

 

 

3)   SEGMENTAL INFORMATION

 

The operations of the group are managed in two principal business divisions that generate revenue: Zinc TV and Zinc Communicate. These divisions are the basis upon which the management reports its primary segmental information. The activities undertaken by the TV segment include the production of television. The Zinc Communicate unit includes content production for brands and businesses, publishing and audio production.

 


Unaudited

Unaudited

Audited

Half Year to

Half Year to

Year to


30 Jun 2022

30 Jun 2021

31 Dec 2021

Revenues by Business Division (continuing operations)

£'000's

£'000's

£'000's

Zinc TV

9,135

6,054

14,565

Zinc Communicate

1,640

921

2,926

Total

10,775

6,975

17,491

 

 



 

4)   EXCEPTIONAL ITEMS

 

Exceptional items are presented separately as, due to their nature or the infrequency of the events giving rise to them, this allows shareholders to understand better the elements of financial performance for the period, to facilitate comparison with prior periods and to assess better the trends of financial performance.

 


Unaudited

Unaudited

Audited


Half Year to

Half Year to

Year to


30 Jun 2022

30 Jun 2021

31 Dec 2021


£'000's

£'000's

Reorganisation and restructuring costs

(52)

(85)

(81)

Other exceptional items

(80)

-

(60)

Total

(132)

(85)

(141)

 

 

 

5)   EARNINGS PER SHARE

 

Basic loss per share (EPS) for the period equals the loss after tax from continuing operations attributable to the Company's ordinary shareholders divided by the weighted average number of issued ordinary shares.

When the Group makes a profit from continuing operations, diluted EPS equals the profit attributable to the Company's ordinary shareholders divided by the diluted weighted average number of issued ordinary shares. When the Group makes a loss from continuing operations, diluted EPS equals the loss attributable to the Company's ordinary shareholders divided by the basic (undiluted) weighted average number of issued ordinary shares. This ensures that EPS on losses is shown in full and not diluted by unexercised share options or awards.

 

 

 

 

 

 

Unaudited

Unaudited

Audited


Half Year to

Half Year to

Year to


30 Jun 2022

30 Jun 2021

31 Dec 2021


£'000

£'000

£'000

Weighted average number of shares used

in basic and diluted earnings per share calculation

16,200,919

15,989,252

16,095,991

Potentially dilutive effect of share options

1,467,502

788,342

1,117,890

 

Basic Loss per Share

(10.48)p

(12.61)p

(15.80)p

Diluted Loss per Share

(10.48)p

(12.61)p

(15.80)p

 

 

6)   GOODWILL AND INTANGIBLE ASSETS

 


Goodwill

Brands

Customer Relationships

Software

Distribution Catalogue

Total

 

 

£000

£000

£000

£000

£000

£000

 

Net Book Value

 






At 30 June 2022

3,055

64

279

37

29

3,464

 

At 30 June 2021

3,055

161

743

77

117

4,153

 

At 31 December 2021

3,055

111

511

50

73

3,800

 

 

 

 



 

7)   PROPERTY, PLANT AND EQUIPMENT

 


Land and buildings

Office and computer equipment

Total


£000's

£000's

£000's

Net book value

 

 

 

As at 30 June 2022

222

628

850

As at 30 June 2021

274

568

842

As at 31 December 2021

237

667

904

 

 

8)   TRADE AND OTHER RECEIVABLES

 


Unaudited

Unaudited

Audited


30 Jun 2022

30 Jun 2021

31 Dec 2021


£'000

£'000

£'000

Current

 



Trade receivables

4,380

2,507

2,609

Less provision for impairment

(467)

(487)

(549)

Net trade receivables

3,913

2,020

2,060

Prepayments

526

497

325

Contract assets

1,888

988

1,502

Total

6,327

3,505

3,887

 

The carrying amount of trade and other receivables approximates to their fair value. The creation and release of provision for impaired receivables have been included in administration expenses in the income statement.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of asset above. The Group does not hold any collateral as security for trade receivables. The Group is not subject to any significant concentrations of credit risk.

 

9)   LEASES AND RIGHT OF USE ASSETS

 

Right-of-use assets


Short leasehold land and buildings

Office and computer equipment

Total


£'000

£'000

£'000

Balance as at 30 June 2021

1,111

158

1,269

Additions

188

-

188

Depreciation

(260)

(36)

(296)

Balance as at 31 December 2021

1,039

122

1,161

Depreciation

(172)

(46)

(218)

Balance as at 30 June 2022

867

76

943

 

 



 

Lease liabilities                                                                                                           

Lease liabilities are presented in the statement of financial position as follows:


Unaudited

Unaudited

Audited


30 Jun 2022

30 Jun 2021

31 Dec 2021


£000's

£000's

£'000

Current

418

516

431

Non-current

530

931

735

 

948

1,447

1,166

 

 

 

10)  TRADE AND OTHER PAYABLES

 


Unaudited

Unaudited

Audited


30 Jun 2022

30 Jun 2021

31 Dec 2021


£'000

£'000

£'000

Current

 



Trade payables

1,297

945

764

Other payables

67

657

133

Other taxes and social security

770

296

1,348

Accruals

3,296

2,989

3,486

Contract liabilities

1,870

1,100

1,068

Total

7,300

5,987

6,799

 

The Directors consider that the carrying amount of trade and other payables approximates to their fair value. The Group's payables are unsecured.


11)  SHARE CAPITAL

 

 

 

Unaudited Half Year

 to 30 Jun 22

Unaudited Half Year

to 30 Jun 21

Audited Year

To 31 Dec 2021

 

  

Number of Shares

Share Capital £'000

Number of Shares

Share Capital £'000

Number of Shares

Share Capital £'000

 

Ordinary Shares

 

 

 

 

 

 

 

At start of period

16,200,919

20

15,963,039

20

15,963,039

20

 

Shares issued

-

-

237,880

0.3

237,880

0.3

 

At end of period

16,200,919

20

16,200,919

20

16,200,919

20

 

 

 

 





 

Total called up share capital

16,200,919

20

16,200,919

20

16,200,919

20

 

 



 


12)  POST BALANCE SHEET EVENTS

 

Acquisition of The Edge Picture Company and capital fundraise

The Company announced in August 2022 that it had acquired The Edge Picture Co Limited, one of the largest brand and corporate film making production companies in the UK, for an initial consideration of £1.56 million in cash and £0.54 million satisfied by the issue of 540,000 new ordinary shares in the Group, and deferred consideration of up to a further £3.875 million to be satisfied by a combination of cash and ordinary shares in the Company.

The Company also announced in August 2022 that it had raised £5.0 million (before expenses) by way of a placing of 5,037,059 ordinary shares.  

The proceeds of the placing were used to finance the initial cash consideration due in respect of the acquisition and will also provide additional growth capital for the enlarged business.

 

 

 

 

 

 

 

 



[1] Adjusted EBITDA defined as EBITDA before share based payment charge, profit/loss on disposal of fixed assets and exceptional items.


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