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Pilat Media Global PLC  -  PGB   

Third Quarter Results

Released 07:00 30-Nov-2012

RNS Number : 3794S
Pilat Media Global PLC
30 November 2012
 

 

Press Release

30 November 2012

 

 

 

 

Pilat Media Global PLC

 

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

 

Results for the nine months ended 30 September 2012

 

Pilat Media Global plc (AIM:PGB), the London-based supplier of business management software to the media industry around the world, today announces its results for the nine months ended 30 September 2012 and the three months to 30 September 2012 ("Q3").

 

Highlights:

· 

Revenues:


·   

Q3 : £5.32 million (Q3 2011: £5.51 million)


·   

9 months to September 2012: £15.78 million (9 months to September 2011: £16.35 million)

· 

Operating profit before impairment of receivable and before amortisation of intangible assets:


·   

Q3 : £0.09 million (Q3 2011: £0.24 million)


·   

9 months to September 2012 : £0.68 million (9 months to September 2011: £1.29 million)

· 

Profit / loss after tax for the period:


·   

Q3 : loss £20,000 (Q3 2011: profit £0.37 million)


·   

9 months to September 2012 - profit £24,000 (9 months to September 2011: loss £1.33 million)

· 

Cash generation continued - cash balances (net of loans and the OTTilus investment) increased from £6.32 million at the end of Q2 to £7.77 million at the end of Q3

· 

New multi-year IBMS contract with a prominent media and entertainment company covering their linear channels and on-demand services across Europe, Middle East and Africa.

 



Commenting on the results, Michael Rosenberg, Chairman of Pilat Media Global plc, said: "The revenues for the first nine months are in line with our expectations.  The recent signing of the contract with the global media and entertainment company is a further endorsement of our IBMS software and this important contract is already contributing to revenues and its impact should increase in future quarters. The strong backlog of orders from existing clients also continues.

 

"Good progress is being made in developing our new OTT platform under the OTTilus joint venture announced in June and the initial response from existing clients and prospects has been very positive.  This new venture is enhancing our existing offering as well as opening up a new market opportunity.  The Group continued to generate cash and we continue to review the various alternative uses that could be made with the cash surplus that we are generating."

 

- Ends -

 

For further information:

Pilat Media Global plc


Avi Engel, Chief Executive Officer

Martin Blair, Chief Financial Officer

Tel: +44 (0) 20 8782 0700

aengel@pilatmedia.com

www.pilatmedia.com

 

Shore Capital (Nominated Adviser)


Dru Danford / Patrick Castle

Tel: +44 (0) 20 7408 4090


www.shorecap.co.uk

 

Media enquiries:

Abchurch Communications


Henry Harrison-Topham / Jamie Hooper

Tel: +44 (0) 20 7398 7719

henry.ht @abchurch-group.com

www.abchurch-group.com



Chairman and CEO's Statement

 

Pilat Media Global plc is pleased to announce its results for the nine months and three months ended 30 September 2012.

 

The Company's main focus in Q3 continued to be the progression of several implementation projects and the supply of software upgrades, enhancements and related services against a strong backlog of orders.  As explained in the Group's interim report this work includes the more resource hungry task of converting the last clients that were still on IBMS V4 to IBMS V6.  Two of the last three large IBMS V4 clients have now been upgraded to V6; only one large client is still to be upgraded.  The Company has also now reached the key milestone of first Go-Live also with two large and multi-year implementation clients in the USA - Showtime Networks Inc. and Screenvision.  The two to three months immediately following all these important upgrades and go-lives will continue to require a considerable amount of our focus but after this time much of our delivery capacity will be released to more profitable projects meeting the demands of existing clients and working on the new projects Pilat Media hopes to win.

 

In October 2012 the Company announced the signing of a multi-year contract with a prominent global media and entertainment company for the licensing, implementation and long term maintenance of IBMS.  Pilat Media's flagship product will serve as the central rights management, content scheduling and media trafficking system for this large organisation and will be rolled out gradually to support the client's linear channels and on-demand and new media services across Europe, Middle East and Africa.  IBMS will replace several dispersed systems to bring about improved efficiency through centralisation, standardisation and workflow automation.  The value of the licenses and implementation services contracted for is approximately £3.2 million, to be recognised gradually throughout the implementation project currently planned to be completed by early 2014.  Work on the project had commenced in the months prior to contract signing and so some revenue has been included in Q3 and previous quarters.  Maintenance and support fees will be earned annually in addition and are contracted for a five year term.

 

Another example of a project already in progress that is and will be making an increasing contribution to revenues this year and next year is the project with FOXTEL in Australia.  The Company is pleased that the first analysis and design phase of this contract signed and announced back in February 2012 has been completed and the Statement of Work (SOW) for the next implementation phase, covering the Non-Linear scheduling and Rights Management, has now been signed.  The value of licenses and services contracted for under this SOW is expected to be AU$1.7 million which will be earned over the coming months.

 

Q3 was the first quarter for OTTilus, the joint venture Pilat Media established in the summer to expand its offering into the emerging internet based OTT ("Over The Top") TV service delivery market.  The OTTilus platform vision was well received by and stimulated interest from existing clients and prospects alike.  Work enhancing the SimpleStream platform to meet the higher set of OTTilus specifications contracted for between the Company and the joint venture partner SimpleStream has commenced and is planned to take till Q1 2013.  This will include integration with IBMS to enable the OTTilus platform to utilise the rich multi-platform rights management, scheduling and media preparation functionality of IBMS.  The financial impact of OTTilus will only start to show in Q4 when the cost incurred by the Company and SimpleStream in relation to the OTTilus product and its development will start to be charged to OTTilus.

 

In Q3, continuing into Q4, the Company has further expanded its range of products by investing in creating "IBMS-Express", a de-featured scoped-down derivative of the full IBMS product to enable faster and lower budget IBMS deployments, "Out-of-the-box". IBMS-Express will have a SAAS ("Software As A Service") pricing and hosting options, whereby IBMS will be installed and operated on "the Cloud" (e.g. using Amazon) to facilitate quicker decision making and to meet demands for lower capital investment.  The Company is pleased to announce that the first IBMS Express contract is now already signed with a playout centre in Singapore, to initially support ten channels.

 

Results

 

Overall Q3 2012 revenues of £5,315,000 were 3.6% lower than the equivalent quarter in 2011 (Q3 2011: £5,514,000).  This small decline is in line with the Board's expectations and is due to the fact that much capacity was used for the low income IBMS V6 upgrade support activities as explained above.

 

Within this total revenue figure for Q3 2012 there is an increase in the license revenue, to £568,000 (Q3 2011: £498,000), in part due to the signing of the new contract referred to above and also from the sales of additional licences for the new Advanced Rights and On Demand modules recently developed by the Group.  Q3 revenues also included £3,398,000 (Q3 2011: £3,541,000) for implementation services (customisation, integration, training and consulting fees) slightly lower than the equivalent period last year due the use of the capacity for other purposes as explained above.  Recurring maintenance and support fees from "live" clients of £1,349,000 were slightly lower than in Q3 2011 (£1,475,000) and is primarily due to the termination of the contract with FOX Television Stations Inc. last year.

 

Gross profit in Q3 2012 was £2,603,000 (Q3 2011: £2,766,000), which represents a gross margin of 48.97% compared to 49.42% in the equivalent period last year.  The small decline in gross margin is mainly due to the increased effort invested in the various go-live processes referred to above.  The Board expects the annual average gross margin for the full year to reach the 2011 average thanks to improvement in the revenue mix expected in Q4.

 

The Group continued its investment in research and development with a spend in the quarter of £1,013,000 (Q3 2011: £700,000), significantly above the amount spent in the equivalent period last year as the Group continued its investment into the new IBMS:Rights and IBMS:Adapt modules.  Sales and marketing costs in Q3 2012 were slightly lower at £369,000 compared to those in the equivalent quarter for 2011 (Q3 2011: £395,000) as the Company's sales activities this quarter were more focused in Europe with reduced travel costs.

 

General and administrative costs of £1,062,000 were lower than the equivalent quarter last year (Q3 2011: £1,230,000) but very similar to those of the previous quarter (Q2 2012: £1,087,000).  The lower costs compared to the equivalent period reflect the Group's continuing efforts to reduce administrative overheads despite increasing the numbers of development and revenue generating staff.

 

Whilst there was a small increase in the volatility of exchange rates in Q3 compared with Q2 2012, the currency loss was contained at £69,000 (Q2: 2011 £156,000) as the foreign currency loans that the Company put in place have had the desired impact of significantly moderating the fluctuations caused by exchange rate movements.  The loans also reduced the requirement for large forward contract hedges and consequently the fair value adjustments and foreign exchange movements on derivative financial instruments at Q3 2012 was a gain of £52,000 (Q3 2011: loss of £25,000) reflecting lower impact compared with previous years.

 

As a consequence of the lower revenues in the quarter the Q3 2012 operating profit (before impairment of trade receivable and before amortisation of intangible assets) was marginally lower at £0.09 million (Q3: 2011 £0.24 million).  The tax charge in the quarter reflects the likely year end charge as all companies in the Group are expected to be profitable and the full year tax charge is expected to be in line with previous years.

 

Statement of Financial Position

 

There has been no capitalisation of development costs in Q3 2012.

 

Trade receivables at the end of Q3 2012 were higher as a result of increased invoicing as certain implementation projects reached significant billing milestones which generated additional invoicing with a corresponding reduction in accrued income balances.

 

The initial investment of £250,000 in the OTTilus joint venture remains in prepayments until all the investment conditions have been met and the joint venture partner, SimpleStream Limited, has delivered the enhanced intellectual property to the joint venture.  Development of the enhanced system continues and final delivery is expected in Q1 2013.

 

Cash flow

 

Net cash inflows in the quarter continued to be strong as a result of project milestones being reached on a number of long term contracts.  As a result, cash, net of the currency loans, increased to £7.8 million at the end of Q3 2012.

 



Outlook

 

The Company continues to see a strong demand for its software and services.  In the next few weeks it expects to complete the licence renewal negotiations with a number of its existing clients which will generate license fees in Q4 making it a strong and profitable quarter.  The pipeline of new sales opportunities continues to include significant prospects that can convert in the next few months.  The Board hopes the increased investment in expanding Pilat Media's offering, with the Rights and Adapt modules, IBMS-Express and OTTilus will help in generating additional prospects and revenues in the Group's existing market and in new ones the Company can now approach, leveraging its strong position.  As the cash balance continues to increase the Company will intensify its search for ways to utilise cash to build value for the shareholders.

 

 

Michael Rosenberg

Chairman

29 November 2012

Avi Engel

Chief Executive Officer

29 November 2012



CONSOLIDATED INCOME STATEMENT

 


Note

Unaudited

9 months to

30

September

2012

£000

Unaudited

9 months to

30

September

2011

£000

Unaudited

3 months to

30

September

2012

£000

Unaudited

3 months to

30

September

2011

£000

Audited

Year Ended

31 December

2011

£000








REVENUE


15,778

16,354

5,315

5,514

22,526








Cost of sales


(8,217)

(8,133)

(2,712)

(2,789)

(11,014)








GROSS PROFIT


7,561

8,221

2,603

2,725

11,512

Other operating expenses







Research and development


(2,614)

(2,266)

(1,013)

(700)

(2,941)

Selling and marketing


(996)

(1,055)

(369)

(395)

(1,385)

General and administrative


(3,126)

(3,330)

(1,062)

(1,230)

(4,508)

Exchange rate movement


(150)

(278)

(69)

(156)

(270)



(6,886)

(6,929)

(2,513)

(2,481)

(9,104)

 

OPERATING PROFIT BEFORE IMPAIRMENT OF RECEIVABLE AND BEFORE AMORTISATION OF INTANGIBLE ASSETS


 

 

 

675

 

 

 

1,292

 

 

 

90

 

 

 

244

 

 

 

2,408








Exceptional item:  (Impairment)/write back of receivable

 

 

 

-

 

(2,279)

-

544

(2,279)








Operating profit / (loss) after impairment of receivable and before amortisation of intangible assets


 

 

675

 

 

(987)

90

788

129








Amortisation of intangible assets


(798)

(798)

(266)

(266)

(1,065)

 

(LOSS)/PROFIT FROM OPERATIONS


 

(123)

 

(1,785)

(176)

522

 

(936)








Fair value adjustment and foreign exchange movement on financial instruments


 

146

 

(26)

52

(25)

(40)

Finance income


84

62

14

17

74

Finance costs


(74)

(52)

(26)

(11)

(72)








PROFIT / (LOSS) BEFORE TAX


33

(1,801)

(136)

503

(974)








Income tax (expense) / credit


(9)

476

116

(133)

114








PROFIT / (LOSS) FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF PILAT MEDIA GLOBAL PLC


 

 

24

 

 

(1,325)

(20)

370

(860)








EARNINGS / (LOSS) PER SHARE







Basic

3

0.04p

(2.22p)

(0.03p)

0.62p

1.44p








Diluted

3

0.04p

(2.22p)

(0.03p)

0.62p

1.44p

 

Note:  The (loss)/profit from operations for the period arises from the Group's continuing operations.



 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 


 

 

Unaudited

9 months to

30

September

Unaudited

9 months to

30

September

Unaudited

3 months to

30

September

Unaudited

3 months to

30

September

Audited

Year ended

31

December



2012

2011

2012

2011

2011



£000

£000

£000

£000

£000








PROFIT / (LOSS) FOR THE PERIOD


24

(1,325)

(20)

370

(860)








OTHER COMPREHENSIVE INCOME:









-

-

-

-

(61)

Deferred tax adjustments














Tax credit in respect of share based payments


 

-

 

-

 

-

 

-

 

22








Exchange translation differences on foreign operations


 

(157)

 

(11)

 

(39)

 

(64)

 

(31)








Other comprehensive income for the period, net of tax


 

(157)

 

(11)

 

(39)

 

(64)

 

(70)















TOTAL COMPREHENSIVE (LOSS) /

INCOME FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF PILAT MEDIA GLOBAL PLC


 

 

 

(133)

 

 

 

(1,336)

 

 

 

(59)

 

 

 

306

 

 

 

(930)








 



CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

 

 

ASSETS

Notes

 

Unaudited

30

September

 

Unaudited

30

September

 

Audited

31

December

 

 

NON-CURRENT ASSETS


2012

£000

2011

£000

2011

£000

Intangible assets

4

3,113

4,177

3,911

Property, plant and equipment

4

627

599

644

Deferred tax


52

26

79



3,792

4,802

4,634






CURRENT ASSETS





Trade receivables


5,860

6,229

4,450

Other receivables


4,771

7,364

6,825

Taxation


199

296

-

Derivative financial instruments

6

19

38

-

Cash and cash equivalents


13,378

9,488

12,412



24,227

23,415

23,687






TOTAL ASSETS


28,019

28,217

28,321






EQUITY





Called up share capital

9

3,118

3,000

3,006

Share premium account

9

9,628

9,194

9,216

Capital redemption reserve


50

50

50

Merger reserve


(854)

(854)

(854)

Cumulative translation reserve


299

475

456

Retained earnings


7,244

6,776

7,213






EQUITY ATTRIBUTABLE TO OWNERS OF PILAT MEDIA GLOBAL PLC


 

19,485

 

18,641

 

19,087






LIABILITIES





NON-CURRENT LIABILITIES





Deferred taxation


275

454

340



275

454

340






CURRENT LIABILITIES





Trade and other payables


2,599

3,370

2,927

Taxation


-

-

114

Derivative financial instruments

6

52

72

94

Fixed term loan

7

5,608

5,680

5,759








8,259

9,122

8,894






TOTAL LIABILITIES


8,534

9,576

9,234






SHAREHOLDERS' EQUITY AND LIABILITIES


28,019

28,217

28,321






 

 

 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


 

Share

Capital

Share

Premium

Account

Capital

Redemption

Reserve

 

Merger

Reserve

Cumulative

Translation

Reserve

 

Retained

Earnings

 

 

Total


£000

£000

£000

£000

£000

£000

£000

Attributable to owners of Pilat Media Global plc:








 

As at 1 January 2012

 

 

3,006

 

 

9,216

 

 

50

 

 

(854)

 

 

456

 

 

7,213

 

 

19,087

 

Profit for the period

 

-

 

-

 

-

 

-

 

-

 

24

 

24

 

Other comprehensive income:
















Exchange translation differences on foreign operations

 

-

 

-

 

-

 

-

 

(157)

 

-

 

(157)









Total other comprehensive income, net of taxes

 

-

 

-

 

-

 

-

 

(157)

 

-

 

(157)









Total comprehensive income for the period

-

-

-

-

(157)

24

(133)









Transactions with owners:-
















Net proceeds of issued share capital

112

412

-

-

-

-

524









Share option charge for the period

-

-

-

-

-

7

7

 

As at 30 September 2012

 

3,118

 

9,628

 

50

 

(854)

 

299

 

7,244

 

19,485



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 


 

Share

Capital

Share

Premium

Account

Capital

Redemption

Reserve

 

Merger

Reserve

Cumulative

Translation

Reserve

 

Retained

Earnings

 

 

Total


£000

£000

£000

£000

£000

£000

£000

Attributable to owners of Pilat Media Global plc:








 

As at 1 July 2012

 

3,118

 

9,628

 

50

 

(854)

 

338

 

7,261

 

19,541

 

Loss for the period

 

-

 

-

 

-

 

-

 

-

 

(20)

 

(20)

 

Other comprehensive income:
















Exchange translation differences on foreign operations

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(39)

 

 

 

-

 

 

 

(39)









Total other comprehensive income, net of taxes

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(39)

 

 

 

-

 

 

 

(39)









Total comprehensive income for the period

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(39)

 

 

(20)

 

 

(59)

Transactions with owners:-








Net proceeds of issued share capital

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

Share option charge for the period

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

3

 

 

3

 

As at 30 September 2012

 

3,118

 

9,628

 

50

 

(854)

 

299

 

7,244

 

19,485

 



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 


 

Share

Capital

Share

Premium

Account

Capital

Redemption

Reserve

 

Merger

Reserve

Share

Option

Reserve

 

Other

Reserve

Cumulative

Translation

Reserve

 

Retained

Earnings

 

 

Total


£000

£000

£000

£000

£000

£000

£000

£000

£000

Attributable to owners of Pilat Media Global plc:










 

As at 1 January 2011

 

2,970

 

9,082

 

50

 

(854)

 

1,245

 

3,108

 

487

 

3,716

 

19,804

 

Profit for the year

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(860)

 

(860)

Other comprehensive income:










Prior period deferred tax adjustments

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(61)

 

(61)

Tax effect on share options

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

22

 

22

Exchange translation differences on foreign operations

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(31)

 

 

-

 

 

(31)

Total other comprehensive income, net of tax

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(31)

 

 

(39)

 

 

(70)











Total comprehensive income for the year

 

-

 

-

 

-

 

-

 

-

 

-

 

(31)

 

(899)

 

(930)

Transactions with owners:-










Proceeds of issued share capital

 

36

 

134

 

-

 

-

 

-

 

-

 

-

 

-

 

170

Share option charge for the year

 

-

 

-

 

-

 

-

 

43

 

-

 

-

 

-

 

43

Transfer of reserves

-

-

-

-

(1,288)

(3,108)

-

4,396

-

 

As at 31 December 2011

 

 

3,006

 

 

9,216

 

 

50

 

 

(854)

 

 

-

 

 

-

 

 

456

 

 

7,213

 

 

19,087

 



 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 


 

Share

Capital

Share

Premium

Account

Capital

Redemption

Reserve

 

Merger

Reserve

Share Option

Reserve

 

Other

Reserve

Cumulative

Translation

Reserve

 

Retained

Earnings

 

 

Total


£000

£000

£000

£000

£000

£000

£000

£000

£000

Attributable to owners of Pilat Media Global plc:










 

As at 1 January 2011

 

 

2,970

 

 

9,081

 

 

50

 

 

(854)

 

 

1,245

 

 

3,108

 

 

486

 

 

3,716

 

 

19,804

 

Loss for the period

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(1,325)

 

(1,325)

Other comprehensive income:










Exchange translation differences on foreign operations

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(11)

 

 

 

-

 

 

 

(11)

Total other comprehensive income, net of taxes

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(11)

 

 

 

-

 

 

 

(11)











Total comprehensive income for the period

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(11)

 

 

 

(1,325)

 

 

 

(1,336)

Transactions with owners:-










Net proceeds of issued share capital

 

30

 

112

 

-

 

-

 

-

 

-

 

-

 

-

 

143

Share option charge for the period

 

 

-

 

 

-

 

 

-

 

 

-

 

 

32

 

 

-

 

 

-

 

 

-

 

 

32

As at 30 September 2011

 

3,000

 

9,194

 

50

 

(854)

 

1,277

 

3,108

 

475

 

2,391

 

18,641

 



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 


 

Share

Capital

Share

Premium

Account

Capital

Redemption

Reserve

 

Merger

Reserve

Share

Option

Reserve

 

Other

Reserve

Cumulative

Translation

Reserve

 

Retained

Earnings

 

 

Total


£000

£000

£000

£000

£000

£000

£000

£000

£000

Attributable to owners of Pilat Media Global plc:










 

As at 1 July 2011

 

2,980

 

9,121

 

50

 

(854)

 

1,267

 

3,108

 

539

 

2,021

 

18,232

 

Loss for the period

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

370

 

370

Other comprehensive income:










Exchange translation differences on foreign operations

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(64)

 

 

 

-

 

 

 

(64)

Total other comprehensive income, net of taxes

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

64

 

 

 

-

 

 

 

64

Total comprehensive income for the period

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

64

 

 

 

370

 

 

 

306

Transactions with owners:-










Net proceeds of issued share capital

 

20

 

73

 

-

 

-

 

-

 

-

 

-

 

-

 

93

Share option charge for the period

 

 

-

 

 

-

 

 

-

 

 

-

 

 

10

 

 

-

 

 

-

 

 

-

 

 

10

As at 30 September 2011

 

3,000

 

9,194

 

50

 

(854)

 

1,277

 

3,108

 

475

 

2,391

 

18,641

 

 


CONSOLIDATED STATEMENT OF CASH FLOWS

 


Notes

Unaudited

9 months to

30

September

Unaudited

9 months to

30

September

Unaudited

3 months to

30

September

Unaudited

3 months to

30

September

Audited

Year ended

31

December



2012

£000

2011

£000

2012

£000

2011

£000

2011

£000

Net cash from operating activities

A

901

71

1,149

(776)

3,101








Income taxes (paid)/received


(16)

(161)

436

(48)

(189)








Interest paid


(74)

(52)

(26)

(11)

(72)








Interest received


84

62

14

17

74








Net cash generated from/ (used in) operating activities


895

(80)

1,573

(818)

2,914








Net cash used in investing activities

 

B

(179)

 

(378)

(77)

 

(153)

 

(484)








Net cash generated/ (utilised) from financing activities

 

C

373

(115)








Net change in cash and cash equivalents


1,089

 

(635)

1,381

 

(1,198)

 

2,281








Cash and cash equivalents at beginning of period


12,412

10,152

12,047

10,713

10,152








Exchange (loss)/gain on cash and cash equivalents


(123)

 

(29)

(50)

 

(27)

 

(21)








Cash and cash equivalents at end of period


13,378

9,488

13,378

9,488

12,412

 

 



APPENDICES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS

 


Unaudited

9 months to

30

September

Unaudited

9 months

30

September

Unaudited

3 months

30

September

Unaudited

3 months

30

September

Audited

Year ended

31

December



2012

£000

2011

£000

2012

£000

2011

£000

2011

£000















 

a

Reconciliation of profit/(loss) before tax to net cash from operating activities














Profit/(loss) before tax

33

(1,801)

(136)

503

(974)


Finance income

(84)

(62)

(14)

(17)

(74)


Finance costs

74

52

26

50

72


Depreciation and amortisation

985

946

333

314

1,274


Share option expense

7

32

3

11

43


(Gains)/losses on derivative instruments

 

(61)

 

35

(21)

 

37

 

96


Decrease/(Increase) in trade and other receivables

331

 

697

1,599

 

(1,536)

 

3,339


(Decrease)/Increase in trade and other payables

(384)

 

143

(641)

 

(138)

 

(675)









Net cash from operating activities

901

71

1,149

(776)

3,101








 

b

 

Cash used in investing activities














Purchase of property, plant and equipment

(179)

(378)

(77)

(153)

(484)









Net cash used in investing activities

(179)

 

(378)

(77)

(153)

(484)








 

 

c

 

Cash generated/ (utilised) from financing activities







Proceeds from the issue of share capital

524

 

143

-

 

93

 

170


 

Decrease in long term loan

(151)

 

(320)

(115)

 

(320)

 

(319)









Net cash (utilised)/generated from financing activities

373

 

(177)

(115)

(227)

(149)










1.  General Information

 

The Company is a limited liability company incorporated and domiciled in the United Kingdom.  The address of its registered office is 19th Floor, Wembley Point, 1 Harrow Road, Wembley Point, London HA9 6DE.  Copies of this statement are available from this address and from the Company's website www.pilatmedia.com.

 

The Company is quoted on the AIM Market of the London Stock Exchange and is co-listed on the Tel Aviv Stock Exchange.

 

This preliminary announcement was approved for issue on 29 November 2012.

 

2.  Basis of preparation

 

The interim announcement has been prepared under the historical cost convention, except for the revaluation of derivative financial instruments, on a going concern basis and in accordance with International Accounting Standard ('IAS') 34 'Interim Financial Reporting'.

 

The interim announcement has been prepared on the basis of the same accounting policies as published in the audited financial statements of the Group for the year ended 31 December 2011 and the accounting policies to be adopted in the financial statements of the Group for the year ended 31 December 2012.  The annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards and IFRS Interpretations Committee pronouncements as adopted by the European Union. Comparative figures for the year ended 31 December 2011 have been extracted from the statutory financial statements for that period.

 

Statutory financial statements for the year ended 31 December 2011 have been delivered to the Registrar of Companies.  The auditor's report made on the statutory financial statements for the year ended 31 December 2011, was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006.  The financial information in this interim announcement does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.

 

This interim announcement has not been audited but has been reviewed by the auditors in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'.

 

3. Earnings/(loss) per share

 

Basic and diluted earnings per share are based on the profit/(loss) for the period attributable to the owners of Pilat Media Global plc and on the following weighted average number of shares in issue.

 


Weighted average number of shares in issue

 


9 months to

30

September

2012

9 months to

30

September

2011

3 months to

30

September

2012

3 months to

30

September

2011

 

31

December

2011







Basic

62,111,243

59,656,108

62,353,506

59,469,199

59,702,644

Adjustments:






Diluted effect of share options

 

348,017

 

-

 

319,226

 

-

 

-







Diluted

62,459,260

59,656,108

62,672,732

59,469,199

59,702,644







 

 

 

 

4. Operating segments

 

IFRS 8 - Operating Segments requires the Group to disclose segmental information based on financial data used by the Chief Operating Decision Maker (CODM) who is responsible for making financial decisions.  The CODM is considered to be the Company's Senior Managers and Executive Directors.

 

There are two material customers for the 9 month period where the revenue is 11.7% and 5.3% of the total revenue respectively.  Year ended 31 December 2011: 12.9% and 12.4%; 9 months to 30 September 2011: 13.9% and 12.3%)

 

The Directors consider there to be only one segment under IFRS 8 based on the information reviewed by the CODM.

 

The Group's revenue and profit/(loss) before tax were all derived from its principal activity.  Sales and profit from operations were made in the following geographical markets:

 




 


9 Months to

30

September

2012

£000

 

 

 

 

%

9 Months to

30

September

2011

£000

 

 

 

 

%

3 Months

to 30

September

2012

£000

 

 

 

 

%

3 Months

to 30

September

2011

£000

 

 

 

 

%

12 Months

to 30

December

2011

£000

 

 

 

 

%

United Kingdom

 

1,513

 

9.6

 

777

 

4.8

 

713

 

13.4

 

274

 

4.9

 

1,513

 

6.7

USA

3,507

22.2

3,918

23.9

986

18.6

1,329

24.0

5,135

22.8

Canada

3,046

19.3

3,222

19.7

1,008

19.0

1,109

20.1

4,402

19.5

Australia

2,297

14.6

3,577

21.8

769

14.5

1,330

24.1

4,501

20.0

Other

5,415

34.3

4,860

29.8

1,839

34.5

1,473

26.9

6,975

31.0


15,778


16,355


5,315

5,514

22,526


 

 


NON-CURRENT ASSETS

Intangible assets

Property, Plant and equipment



9 Months to

30

September

2012

£000

9 Months to

30

September

2011

£000

12 Months to 31

December

2011

£000

9 Months to

30

September

2011

£000

9 Months to

30

September

2011

£000

12 Months to

31

December

2011

£000










United Kingdom

3,113

4,177

3,911

450

447

478


Israel


-

-

113

120

118


Other


-

-

64

33

48











3,113

4,177

3,911

627

599

644









 

The above geographical location has been provided based on the destination of services provided.

 

 

5.  Seasonality

 

Whilst revenue is not seasonal there has been an historic trend of the second half of the year being stronger than the first half of the year.  For the year ended 31 December 2011, the second half revenue represented 53% (2010: 52%) of the annual revenue.



 

6.  Derivative Financial Instruments

 



30 September

2012

£000

30 September

2011

£000

31 December

2011

£000







Forward foreign exchange contracts - classified as held for trading

-     Canadian Dollar

 

 

-

 

 

25

 

 

(15)


-     Euro

-

4

-


-     Australian Dollar

-

8

-


-     Israeli New Shekels

(52)

(67)

(36)


-     US Dollar

19

(4)

(43)












Total

(33)

(34)

(94)












Disclosed as:





Current liabilities

(52)

(72)

(94)


Current asset

19

38

-


Total

(33)

(34)

(94)

 

Derivatives are classified as a current asset or liability based on the expiry of the foreign exchange contract.

 

As at 30 September 2012, the Group held forward foreign currency contracts to sell US Dollar for sterling of £637,991 and to buy Israeli New Shekel £1,466,281 to hedge expected settlements of foreign currency receivable and payable balances (September 2011: to sell US Dollar - £927,935; Canadian Dollar - £769,256; Australian Dollar £573,238 and to buy Israeli New Shekel £1,184,559 and US Dollar £1,531,684).  The US Dollar and Israeli New Shekel contracts mature over the next six months with the final contract expiring in March 2013.

 

7. Fixed term loan

 



30 September

2012

£000

30 September

2011

£000

31 December

2011

£000







CAD Fixed term loan

2,391

2,355

2,402

 


USD Fixed term loan

3,217

3,325

3,357







Total

5,608

5,680

5,759







The loans are charged interest at LIBOR plus 0.5%, secured by a charge over the Company's cash balances of £6,591,950 (31 December 2010: £6,875,860) and repayable on demand, with a maturity date of 31 December 2012.

 



8.  Other Receivables

 

On 14 June 2012, the Company announced it had created a joint venture OTTilus Limited ("OTTilus") with SimpleStream Limited.  OTTilus will be the parties' exclusive vehicle for delivering OTT solutions to TV broadcasters and operators.  OTTilus is owned 60% by Pilat Media Global plc and accordingly is considered to be a subsidiary undertaking.  The initial investment of £250,000 has been made into OTTilus and OTTilus has paid £250,000 to SimpleStream Limited as a deposit for the right to exploit the OTT software but until SimpleStream Limited delivers the enhanced OTT software in accordance with OTTilus' specifications the initial investment is repayable to the Company and accordingly is shown in the financial statements as a prepayment and the non-controlling interest is nil.  Once the software is accepted, Pilat Media Global plc will make a further investment of £250,000 in OTTilus and provide additional funding, by way of a loan, of £500,000.

 

9. Share Capital and Share Premium

 

 

SHARE CAPITAL

SHARE PREMIUM

SHARE CAPITAL

SHARE PREMIUM

 

 

30 September

30 September

 

30 September

30 September


2012

2012

2011

2011

 

Number of shares

£000

£000

Number of shares

£000

£000

Authorised:







Ordinary shares of 5p each

 

100,000,000

 

5,000

 

 

 

100,000,000

 

5,000









Allotted, issued and fully paid:







Ordinary shares of 5p each







At 1 January

60,126,838

3,006

9,216

59,400,331

2,970

9,082

Employee share options at 23.5p grant price

2,226,668

112

412

616,507

30,325

112








At 30 September

62,353,506

3,118

9,628

60,016,838

3,000

9,194

 

 

 

SHARE CAPITAL

SHARE PREMIUM

 

31 December

31 December


2011

2011

 

Number of shares

£000

£000

Authorised:




Ordinary shares of 5p each

 

100,000

 

5,000






Allotted, issued and fully paid:




Ordinary shares of 5p each




At 1 January

59,400,331

2,970

9,082

Employee share options at 23.5p grant price

726,507

36

134

At 31 December

60,126,838

3,006

9,216

 

 



INDEPENDENT REVIEW REPORT TO MEMBERS OF PILAT MEDIA GLOBAL PLC

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the interim financial report for the three months ended 30 September 2012 which comprises the Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity, Consolidated Statement of Financial Position, Consolidated Statement of Cash Flows and the related explanatory notes.  We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

 

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "'Review of Interim Financial Information performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board.  Our review work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.

 

Directors' Responsibilities

The interim financial report, is the responsibility of, and has been approved by the directors.  The directors are responsible for preparing and presenting the interim financial report in accordance with the AIM Rules of the London Stock Exchange.

 

As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards and IFRS Interpretations Committee pronouncements as adopted by the European Union.  The condensed set of financial statements included in this interim financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting" as adopted by the European Union.

 

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim financial report based on our review.

 

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom.  A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.  Accordingly, we do not express an audit opinion.

 

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial report for the three months ended 30 September 2012 is not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union, and the AIM Rules of the London Stock Exchange.

 

Baker Tilly UK Audit LLP

Chartered Accountants

25 Farringdon Street

London

EC4A 4AB

 

29 November 2012


This information is provided by RNS
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