TIDMPRO
RNS Number : 6227B
Progressive Digital Media Group PLC
30 October 2009
30th October 2009
PROGRESSIVE DIGITAL MEDIA GROUP PLC
(formerly TMN Group plc)
Final Results
Progressive Digital Media Group plc (AIM: PDM, the "Group" or the "Company") has
published the final results for the year to 30 April 2009.
Note: The results are reported prior to the reverse takeover of Progressive
Digital Media Limited, which transacted on the 5 June 2009 and consequently do
not include any financial information on Progressive Digital Media Limited.
These results should therefore be read in the context that they are for TMN
Group only and do not include the results of Progressive Digital Media Limited.
These accounts do however include such value adjustments, which have been made
subsequent to the purchase of Progressive Digital Media Limited to conform with
the englarged Group's accounting policies and to deal with relevant valuation
issues. These adjustments are fully detailed in the audited statements. Whilst
Progressive Digital Media Group plc (formerly TMN Group plc) is the acquiring
entity in the transaction, under IFRS, Progressive Digital Media Limited is
deemed to be the acquirer and the accounting for this transaction will be dealt
with in the next set of results.
The interim Financial Statements for Progressive Digital Media Group plc to
October 2009 will be released before the end of January 2010.
Highlights
+----------+----------+----------+---------------+
| | | ? | Group |
| | | | revenues |
| | | | GBP28.8m |
| | | | (2008: |
| | | | GBP22.5m) |
+----------+----------+----------+---------------+
| | | ? | Group |
| | | | revenues |
| | | | excluding |
| | | | discontinued |
| | | | activities |
| | | | GBP27.9m |
| | | | (2008: |
| | | | GBP22.0m) |
+----------+----------+----------+---------------+
| | | ? | Adjusted |
| | | | EBITDA |
| | | | GBP(5.4)m |
| | | | (2008: |
| | | | GBP3.1m). |
| | | | Adjusted |
| | | | EBITDA |
| | | | excludes |
| | | | amortisation |
| | | | of |
| | | | intangibles, |
| | | | depreciation |
| | | | and |
| | | | exceptional |
| | | | non-recurring |
| | | | costs |
+----------+----------+----------+---------------+
| | | ? | Operating |
| | | | (loss)/profit |
| | | | GBP(18.8m) |
| | | | (2008: |
| | | | GBP1.9m) |
+----------+----------+----------+---------------+
Simon Pyper, PDM CEO, commented,
"The enlarged Group's continued investment in digital content, digital delivery
platforms and operational infrastructure should allow the business to deliver
long term profitable growth and ensure that we are well placed to exploit market
opportunities and developments.
With regards to the performance of the Group excluding TMN, the Board is pleased
with the overall trading performance to date. Moreover, the Group is achieving
profitable revenue growth across a number of its business platforms and industry
sectors.
Whilst there is still much to do, the Board is satisfied that progress is being
made and is confident of the long-term prospects of the business."
Enquiries:
+--------------------------------------------+------------------+-----------+
| PDM plc | 0207 936 6000 |
+--------------------------------------------+------------------------------+
| Mike Danson, Chairman | | |
+--------------------------------------------+------------------+-----------+
| Simon Pyper, CEO | | |
+--------------------------------------------+------------------+-----------+
| Ken Appiah, Finance Director | | |
+--------------------------------------------+------------------+-----------+
| | | |
+--------------------------------------------+------------------+-----------+
| Investec Investment Banking, NOMAD and | 0207 597 4000 | |
| Broker | | |
+--------------------------------------------+------------------+-----------+
| Erik Anderson/ David Flin | | |
+--------------------------------------------+------------------+-----------+
| | | |
+--------------------------------------------+------------------+-----------+
| Hudson Sandler | 0207 796 4133 | |
+--------------------------------------------+------------------+-----------+
| Nick Lyon/ James White | | |
+--------------------------------------------+------------------+-----------+
CHIEF EXECUTIVE STATEMENT AND OPERATING REVIEW
Reporting basis
The Group's financial statements for the year ended 30 April 2009 have been
prepared in accordance with International Financial Reporting Standards (IFRS).
The results for the year ending 30 April 2009 are reported prior to the reverse
takeover of Progressive Digital Media Limited, which transacted on the 5 June
2009.
These results should therefore be read in the context that they are for TMN
Group only and do not include the results of Progressive Digital Media Limited.
These accounts do however include such fair value adjustments, which have been
made subsequent to the purchase of Progressive Digital Media Limited to conform
with the englarged Group's accounting policies and to deal with relevant
valuation issues, these adjustments are detailed below. Whilst Progressive
Digital Media Group plc (formerly TMN Group plc) is the acquiring entity in the
transaction, under IFRS, Progressive Digital Media Limited is deemed to be the
acquirer and the accounting for this transaction will be dealt with in the
interim results for the Group, which will be released before the end of January
2010.
With regards to the integration of the enlarged Group, the Board is satisfied
that progress is being made and is confident of the long-term prospects of the
business.
Revenue
Including discontinued operations for the year ended 30 April 2009, revenues
were GBP28.8m compared to 2008 revenues of GBP22.5m. On a proforma basis (which
annualises the revenues of acquisitions made in 2008) and excluding the trading
impact of discontinued activities, revenues decreased by 23% from GBP36.2m in
2008 to GBP27.9m in 2009.
Revenue analysed by product category and region was as follows:
+------------------------------------------------+----------+----------+----------+
| | Reported | Reported | Proforma |
+------------------------------------------------+----------+----------+----------+
| | GBP'm | GBP'm | GBP'm |
+------------------------------------------------+----------+----------+----------+
| | 2009 | 2008 | 2008 |
+------------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------------+----------+----------+----------+
| Email marketing | 8.6 | 13.1 | 15.9 |
+------------------------------------------------+----------+----------+----------+
| Affiliate marketing | 14.8 | 4.1 | 15.4 |
+------------------------------------------------+----------+----------+----------+
| Research | 2.6 | 2.7 | 2.7 |
+------------------------------------------------+----------+----------+----------+
| Publishing | 1.9 | 2.1 | 2.2 |
+------------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------------+----------+----------+----------+
| | -------- | -------- | -------- |
+------------------------------------------------+----------+----------+----------+
| | 27.9 | 22.0 | 36.2 |
+------------------------------------------------+----------+----------+----------+
| | -------- | -------- | -------- |
+------------------------------------------------+----------+----------+----------+
| United Kingdom | 24.7 | 20.4 | 32.9 |
+------------------------------------------------+----------+----------+----------+
| Netherlands | 3.2 | 1.6 | 3.3 |
+------------------------------------------------+----------+----------+----------+
| | -------- | -------- | -------- |
+------------------------------------------------+----------+----------+----------+
| | 27.9 | 22.0 | 36.2 |
+------------------------------------------------+----------+----------+----------+
| | -------- | -------- | -------- |
+------------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------------+----------+----------+----------+
On a proforma basis email marketing revenues showed a significant reduction
compared to 2008 mainly as a result of the impact of the downturn in display
advertising in the UK and Europe. Although the Group's mix of verticals has
altered significantly over the last year, the downturn in financial services and
automotive advertising has had a material impact on email marketing revenues.
For the Group's three other product categories combined, there was a marginal 5%
reduction in revenues year-on-year which should be seen in the context of the
very severe downturn in the UK advertising market and challenging macro economic
conditions in general.
Gross margin
Gross profit decreased by 19% to GBP8.5m (2008: GBP10.5m). The gross profit
margin declined to 31% from 48% in 2008. Part of this is attributable to product
mix, in particular, the full year impact of lower margin affiliate marketing.
The Group has changed its accounting policy in relation to data acquisition
costs which has resulted in a GBP1.2m reduction in gross profit in the current
year. Data acquisition costs are now expensed as a cost of sale rather than
being capitalised and amortised over two years as per the previous policy.
CHIEF EXECUTIVE STATEMENT AND OPERATING REVIEW (continued)
Adjusted results and prior year restatement
The Group reported an operating loss of GBP18.6m for the year compared to an
operating profit of GBP1.9m in 2008. To assist the understanding of underlying
performance and remove the impact of non-cash and non-recurring items, adjusted
EBITDA has been used as a basis for comparison:
+-----------------------------------------------------------+----------+------------+
| | 2009 | 2008 |
+-----------------------------------------------------------+----------+------------+
| | GBP'm | GBP'm |
+-----------------------------------------------------------+----------+------------+
| | | |
+-----------------------------------------------------------+----------+------------+
| Operating (loss)/profit | (18.6) | 1.9 |
+-----------------------------------------------------------+----------+------------+
| | | |
+-----------------------------------------------------------+----------+------------+
| Amortisation of intangibles | 2.5 | 0.8 |
+-----------------------------------------------------------+----------+------------+
| Depreciation | 0.5 | 0.2 |
+-----------------------------------------------------------+----------+------------+
| Exceptional costs | 10.2 | 0.2 |
+-----------------------------------------------------------+----------+------------+
| | | |
+-----------------------------------------------------------+----------+------------+
| | -------- | -------- |
+-----------------------------------------------------------+----------+------------+
| Adjusted EBITDA | (5.4) | 3.1 |
+-----------------------------------------------------------+----------+------------+
| | ----- | ----- |
+-----------------------------------------------------------+----------+------------+
Exceptional costs comprise of restructuring costs, principally those associated
with headcount reduction and impairment of goodwill, acquired and other
intangible assets as shown below:
+-------------+-------------+-------------+-------------+-------------+-------------+
| | 2009 | 2008 |
+---------------------------+---------------------------+---------------------------+
| | GBP'm | GBP'm |
+---------------------------+---------------------------+---------------------------+
| | | |
+---------------------------+---------------------------+---------------------------+
| Legal and professional | - | 0.2 |
| costs relating to | | |
| rejected offers for the | | |
| business | | |
+---------------------------+---------------------------+---------------------------+
| Restructuring and | 0.7 | - |
| reorganisation costs | | |
+---------------------------+---------------------------+---------------------------+
| Impairment of goodwill | 4.5 | - |
+---------------------------+---------------------------+---------------------------+
| Impairment of other | 4.9 | - |
| intangible assets | | |
+---------------------------+---------------------------+---------------------------+
| Impairment of investments | 0.1 | - |
+---------------------------+---------------------------+---------------------------+
| | -------- | -------- |
+---------------------------+---------------------------+---------------------------+
| | 10.2 | 0.2 |
+---------------------------+---------------------------+---------------------------+
| | ----- | ----- |
+-------------+-------------+-------------+-------------+-------------+-------------+
Included within administration expenses there are dilapidations charges of
GBP0.2m and onerous lease provisions of GBP0.6m this year relating to two of the
Group's unoccupied properties. During the year the Group changed the accounting
policy in relation to the treatment of database acquisition costs. The previous
policy was to capitalise the acquisition cost and amortise over two years. The
new policy is to expense acquisition costs as a cost of sale. The impact of this
change in relation to the prior year is disclosed in note 2 to the Consolidated
Financial Statements. The provision for impairment of trade receivables was
GBP2.2m at the year end (2008: GBP0.2m). This reflects a more prudent approach
in light of the current economic environment.
Loss before interest, tax and exceptional costs
Reported losses before tax, interest and exceptional costs were GBP8.4m (2008:
profit of GBP2.1m).
Taxation
The total tax credit for the year was GBP2.2m (2008: GBP0.4m charge). This is
lower than the standard corporation tax rate as applied to the loss before tax
principally as a result of expenses not deductible for tax and deferred tax not
provided on losses. In relation to unrelieved tax losses, no deferred tax asset
has been recognised.
Balance sheet and net assets
Consolidated net assets reduced by GBP16.5m to GBP3.3m (2008: GBP19.8m). The
majority of this reduction is attributable to the amortisation and impairment of
intangible assets.
CHIEF EXECUTIVE STATEMENT AND OPERATING REVIEW (continued)
Net debt, cash flow and risk
Consolidated net debt was GBP2.8m at the year end compared to GBP0.3m at 30
April 2008. Net cash used in operating activities was GBP0.3m (2008: generated
GBP1.5m) comprising of operating cash flow of GBP0.7m less GBP1.0m of interest
and tax paid.
Capital expenditure relating to computer hardware was GBP0.4m. The GBP0.3m cash
outflow from acquisitions represents the final tranche of EDR deferred cash
consideration.
The net cash inflow for the year was GBP0.6m (2008: outflow of GBP1.9m). The
debt of GBP2.8m represents gross debt of GBP3.1m less cash of GBP0.3m held
outside of the composite accounting arrangement with the Group's UK bankers.
Gross debt consists of the amounts drawn down under a revolving credit facility.
As a result of the completion of the acquisition of Progressive Digital Media
Limited on 24 June 2009, GBP1.5m of the facility has been repaid.
The majority of the Group's trade is denominated in the currencies of the
jurisdiction in which trade is conducted. As a result, the Group has currency
risk with regard to approximately 11% of revenues. No currency hedging is
entered into as exposure to fluctuations in foreign currencies is not considered
significant to the Group. The Group now has minimal exposure to interest rate
and liquidity risk as a result of the repayment of borrowings following the
completion of the acquisition.
Prospects for the future
The Group's prospects for the future, following the acquisition of Progressive
Digital Media Limited, were set out in the circular to shareholders in June
2009. We intend to update shareholders on progress when the enlarged Group's
interim results are announced in January 2010.
Key performance indicators (KPIs)
The Group uses a number of KPIs to monitor the performance of business units as
well as the individual product categories within those units. These include but
are not limited to, the following:
+----------+----------+----------+-----------------+
| | | - | Quality |
| | | | of |
| | | | databases |
| | | | in terms |
| | | | of |
| | | | activity |
| | | | levels, |
| | | | responsiveness, |
| | | | email |
| | | | deliverability, |
| | | | size and |
| | | | coverage; |
+----------+----------+----------+-----------------+
| | | - | Organic |
| | | | revenue |
| | | | growth |
| | | | compared |
| | | | to |
| | | | market |
| | | | and peer |
| | | | group |
| | | | growth |
| | | | rates; |
+----------+----------+----------+-----------------+
| | | - | Gross |
| | | | and |
| | | | operating |
| | | | profit |
| | | | margins |
| | | | as well |
| | | | as cash |
| | | | contribution |
| | | | to the |
| | | | Group's |
| | | | central cost |
| | | | base; and |
+----------+----------+----------+-----------------+
| | | - | Working |
| | | | capital |
| | | | and cash |
| | | | management |
| | | | in terms |
| | | | of |
| | | | adherence |
| | | | to |
| | | | forecast, |
| | | | borrowing |
| | | | headroom |
| | | | and levels |
| | | | of trade |
| | | | receivables |
| | | | and |
| | | | payables. |
+----------+----------+----------+-----------------+
Individual KPIs are currently being re-evaluated in light of the Group's trading
performance and the recent reverse acquisition of Progressive Digital Media
Limited.
S Pyper
Chief Executive Officer
CONSOLIDATED INCOME STATEMENT
YEAR ENDED 30 APRIL 2009
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | 2009 | 2008 |
+-------------------------+--+--------------------------------------------+------------------------------------------+
| | | Pre-exceptional | Exceptional | Total | Pre-exceptional | Exceptional | Total |
| | | costs | costs | | costs | costs | As |
| | | | | | | | restated |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| Revenue | | 27,891 | - | 27,891 | 22,004 | - | 22,004 |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| Cost of sales | | (19,372) | - | (19,372) | (11,535) | - | (11,535) |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | -------- | -------- | -------- | -------- | -------- | -------- |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| Gross profit | | 8,519 | - | 8,519 | 10,469 | - | 10,469 |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| Administrative | | (14,353) | (661) | (15,014) | (7,494) | (225) | (7,719) |
| expenses | | | | | | | |
| Other | | | | | | | |
| administrative | | | | | | | |
| expenses | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| - amortisation | | (2,519) | - | (2,519) | (847) | - | (847) |
| of intangibles | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| - impairments | | - | (9,579) | (9,579) | - | - | - |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | -------- | -------- | -------- | -------- | -------- | -------- |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| Total | | (16,872) | (10,240) | (27,112) | (8,341) | (225) | (8,566) |
| administrative | | | | | | | |
| expenses | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | -------- | -------- | -------- | -------- | -------- | -------- |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| Operating | | (8,353) | (10,240) | (18,593) | 2,128 | (225) | 1,903 |
| (loss)/profit | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | -------- | -------- | -------- | -------- | -------- | -------- |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| Finance income | | | | 5 | | | 42 |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| Finance costs | | | | (204) | | | (51) |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | ---------- | | | -------- |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| (Loss)/profit | | | | (18,792) | | | 1,894 |
| from continuing | | | | | | | |
| operations | | | | | | | |
| before taxation | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| Taxation | | | | 2,230 | | | (352) |
| credit/(charge) | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | --------- | | | -------- |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| (Loss)/profit | | | | (16,562) | | | 1,542 |
| from continuing | | | | | | | |
| operations after | | | | | | | |
| taxation | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| Profit on | | | | 167 | | | 37 |
| discontinued | | | | | | | |
| operations | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | --------- | | | -------- |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| (Loss)/profit for the | | | | (16,395) | | | 1,579 |
| year | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | ----- | | | ----- |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| (Loss)/profit | | | | (16,395) | | | 1,579 |
| attributable to | | | | | | | |
| the equity | | | | | | | |
| holders of the | | | | | | | |
| parent | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | ----- | | | ----- |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| (Loss)/earnings | | | | | | | |
| per share (note | | | | | | | |
| 5) | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| Basic (pence) | | | | | | | 2.8p |
| | | | | (21.5)p | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | ----- | | | ----- |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| Diluted (pence) | | | | (21.5)p | | | 2.7p |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | ----- | | | ----- |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
| | | | | | | | |
+-------------------------+--+-----------------+-------------+------------+-----------------+-------------+----------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 30 APRIL 2009
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| | Called | Share | Merger | Equity | Share | Trans-lation | Retained | Total |
| | up | premium | reserve | shares | option | reserve | earnings | GBP'000 |
| | share | account | GBP'000 | to be | reserve | GBP'000 | GBP'000 | |
| | capital | GBP'000 | | issued | GBP'000 | | | |
| | GBP'000 | | | GBP'000 | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| At 1 May 2007 as | 105 | 5,809 | - | 687 | 426 | 121 | 2,618 | 9,766 |
| previously stated | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Prior year | - | - | - | - | - | - | (467) | (467) |
| restatement - | | | | | | | | |
| change in | | | | | | | | |
| accounting policy | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| At 1 May 2007 as | 105 | 5,809 | - | 687 | 426 | 121 | 2,151 | 9,299 |
| restated | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Foreign exchange | - | - | - | - | - | 25 | - | 25 |
| adjustment | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Profit for the | - | - | - | - | - | - | 1,579 | 1,579 |
| financial year | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Total recognised | - | - | - | - | - | 25 | 1,579 | 1,604 |
| expense in the year | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Issue of shares | 3 | 1,864 | 7,174 | (331) | - | - | - | 8,710 |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Purchase of own | - | - | - | - | - | - | (109) | (109) |
| shares | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Share options | - | 75 | - | - | - | - | - | 75 |
| exercised | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Share options | - | - | - | - | (10) | - | 10 | - |
| cancelled | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Deferred tax on | - | - | - | - | - | - | 165 | 165 |
| share options | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Share-based payment | - | - | - | - | 27 | - | - | 27 |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| At 1 May 2008 as | 108 | 7,748 | 7,174 | 356 | 443 | 146 | 3,796 | 19,771 |
| restated | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Foreign exchange | - | - | - | - | - | 59 | - | 59 |
| adjustment | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Loss for the | - | - | - | - | - | - | (16,395) | (16,395) |
| financial year | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Total recognised | - | - | - | - | - | 59 | (16,395) | (16,336) |
| expense in the year | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Issue of shares | - | 342 | - | (356) | - | - | - | (14) |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Share options | - | - | - | - | (357) | - | 357 | - |
| exercised | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| Deferred tax on | - | - | - | - | - | - | (165) | (165) |
| share options | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| At 30 April 2009 | 108 | 8,090 | 7,174 | - | 86 | 205 | (12,407) | 3,256 |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
| | | | | | | | | |
+---------------------+---------+---------+---------+---------+---------+--------------+----------+----------+
CONSOLIDATED BALANCE SHEET
AS AT 30 APRIL 2009
+------------------------------------------+----------+--------+----------+----------+
| | | | 2009 | 2008 |
+------------------------------------------+----------+--------+----------+----------+
| | | | | As |
| | | | | restated |
+------------------------------------------+----------+--------+----------+----------+
| | | | GBP'000 | GBP'000 |
+------------------------------------------+----------+--------+----------+----------+
| | | | | |
+------------------------------------------+----------+--------+----------+----------+
| Non-current assets | | | | |
+------------------------------------------+----------+--------+----------+----------+
| Goodwill | | | 5,947 | 11,370 |
+------------------------------------------+----------+--------+----------+----------+
| Other intangible assets | | | 3,417 | 10,268 |
+------------------------------------------+----------+--------+----------+----------+
| Property, plant and equipment | | | 559 | 948 |
+------------------------------------------+----------+--------+----------+----------+
| Investments | | | 10 | 108 |
+------------------------------------------+----------+--------+----------+----------+
| | | | -------- | -------- |
+------------------------------------------+----------+--------+----------+----------+
| | | | 9,933 | 22,694 |
+------------------------------------------+----------+--------+----------+----------+
| | | | -------- | -------- |
+------------------------------------------+----------+--------+----------+----------+
| Current assets | | | | |
+------------------------------------------+----------+--------+----------+----------+
| Inventories | | | - | 277 |
+------------------------------------------+----------+--------+----------+----------+
| Trade and other receivables | | | 4,768 | 9,449 |
+------------------------------------------+----------+--------+----------+----------+
| Cash and cash equivalents | | | 253 | 2,702 |
+------------------------------------------+----------+--------+----------+----------+
| Current tax receivable | | | 624 | - |
+------------------------------------------+----------+--------+----------+----------+
| | | | -------- | -------- |
+------------------------------------------+----------+--------+----------+----------+
| | | | 5,645 | 12,428 |
+------------------------------------------+----------+--------+----------+----------+
| | | | -------- | -------- |
+------------------------------------------+----------+--------+----------+----------+
| | | | | |
+------------------------------------------+----------+--------+----------+----------+
| Total assets | | | 15,578 | 35,122 |
+------------------------------------------+----------+--------+----------+----------+
| | | | -------- | -------- |
+------------------------------------------+----------+--------+----------+----------+
| Current liabilities | | | | |
+------------------------------------------+----------+--------+----------+----------+
| Borrowings | | | - | 3,032 |
| Trade and other payables | | | 7,260 | 7,438 |
+------------------------------------------+----------+--------+----------+----------+
| Current tax liabilities | | | - | 924 |
+------------------------------------------+----------+--------+----------+----------+
| Provisions for liabilities | | | 292 | 1,408 |
+------------------------------------------+----------+--------+----------+----------+
| | | | -------- | -------- |
+------------------------------------------+----------+--------+----------+----------+
| | | | 7,552 | 12,802 |
+------------------------------------------+----------+--------+----------+----------+
| | | | -------- | -------- |
+------------------------------------------+----------+--------+----------+----------+
| Non-current liabilities | | | | |
+------------------------------------------+----------+--------+----------+----------+
| Provisions for liabilities | | | 801 | 786 |
+------------------------------------------+----------+--------+----------+----------+
| Borrowings | | | 3,012 | - |
+------------------------------------------+----------+--------+----------+----------+
| Deferred tax liabilities | | | 957 | 1,763 |
+------------------------------------------+----------+--------+----------+----------+
| | | | -------- | -------- |
+------------------------------------------+----------+--------+----------+----------+
| | | | 4,770 | 2,549 |
+------------------------------------------+----------+--------+----------+----------+
| | | | -------- | -------- |
+------------------------------------------+----------+--------+----------+----------+
| | | | | |
+------------------------------------------+----------+--------+----------+----------+
| Total liabilities | | | 12,322 | 15,351 |
+------------------------------------------+----------+--------+----------+----------+
| | | | -------- | -------- |
+------------------------------------------+----------+--------+----------+----------+
| | | | -------- | -------- |
+------------------------------------------+----------+--------+----------+----------+
| Net assets | | | 3,256 | 19,771 |
+------------------------------------------+----------+--------+----------+----------+
| | | | -------- | -------- |
+------------------------------------------+----------+--------+----------+----------+
| | | | | |
+------------------------------------------+----------+--------+----------+----------+
| SHAREHOLDERS' FUNDS | | | | |
+------------------------------------------+----------+--------+----------+----------+
| | | | | |
+------------------------------------------+----------+--------+----------+----------+
| Share capital | | | 108 | 108 |
+------------------------------------------+----------+--------+----------+----------+
| Share premium account | | | 8,090 | 7,748 |
+------------------------------------------+----------+--------+----------+----------+
| Merger reserve | | | 7,174 | 7,174 |
+------------------------------------------+----------+--------+----------+----------+
| Equity shares to be issued | | | - | 356 |
+------------------------------------------+----------+--------+----------+----------+
| Share option reserve | | | 86 | 443 |
+------------------------------------------+----------+--------+----------+----------+
| Translation reserve | | | 205 | 146 |
+------------------------------------------+----------+--------+----------+----------+
| Retained earnings | | | (12,407) | 3,796 |
+------------------------------------------+----------+--------+----------+----------+
| | | | -------- | -------- |
+------------------------------------------+----------+--------+----------+----------+
| Total equity | | | 3,256 | 19,771 |
+------------------------------------------+----------+--------+----------+----------+
| | | | ----- | ----- |
+------------------------------------------+----------+--------+----------+----------+
CONSOLIDATED CASH FLOW STATEMENT
YEAR ENDED 30 APRIL 2009
+--------------------------------------------------+--+--------+----------+----------+
| | | | 2009 | 2008 |
+--------------------------------------------------+--+--------+----------+----------+
| | | | | As |
| | | | | restated |
+--------------------------------------------------+--+--------+----------+----------+
| | | | GBP'000 | GBP'000 |
+--------------------------------------------------+--+--------+----------+----------+
| Cash flows from operating activities | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| Operating (loss)/profit | | | (18,593) | 1,903 |
+--------------------------------------------------+--+--------+----------+----------+
| | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| Adjustments for: | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| Depreciation | | | 455 | 182 |
+--------------------------------------------------+--+--------+----------+----------+
| Amortisation | | | 2,519 | 847 |
+--------------------------------------------------+--+--------+----------+----------+
| Loss on disposal of fixed assets | | | 316 | - |
+--------------------------------------------------+--+--------+----------+----------+
| Share based payments expense | | | - | 27 |
+--------------------------------------------------+--+--------+----------+----------+
| Impairment of intangibles and investments | | | 9,579 | 9 |
+--------------------------------------------------+--+--------+----------+----------+
| Foreign exchange | | | 49 | 25 |
+--------------------------------------------------+--+--------+----------+----------+
| Decrease in inventories | | | 277 | 32 |
+--------------------------------------------------+--+--------+----------+----------+
| Decrease/(increase) in receivables | | | 4,682 | (2,359) |
+--------------------------------------------------+--+--------+----------+----------+
| (Decrease)/increase in payables | | | (178) | 1,405 |
+--------------------------------------------------+--+--------+----------+----------+
| Increase/(decrease) in provisions | | | 1,450 | (105) |
+--------------------------------------------------+--+--------+----------+----------+
| Discontinued operations | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| Net cash inflow from operating activities from | | | 167 | 37 |
| discontinued operations | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| | | | -------- | ------- |
+--------------------------------------------------+--+--------+----------+----------+
| Cash generated from operations | | | 723 | 2,003 |
+--------------------------------------------------+--+--------+----------+----------+
| | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| Interest paid | | | (204) | (51) |
+--------------------------------------------------+--+--------+----------+----------+
| Income tax paid | | | (788) | (444) |
+--------------------------------------------------+--+--------+----------+----------+
| | | | -------- | -------- |
+--------------------------------------------------+--+--------+----------+----------+
| Net cash (utilised by)/generated from operating | | | (269) | 1,508 |
| activities | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| | | | -------- | -------- |
+--------------------------------------------------+--+--------+----------+----------+
| Investing activities | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| Interest received | | | 5 | 42 |
+--------------------------------------------------+--+--------+----------+----------+
| Purchases of plant, property and equipment | | | (372) | (384) |
+--------------------------------------------------+--+--------+----------+----------+
| Purchases of intangible assets | | | (607) | (374) |
+--------------------------------------------------+--+--------+----------+----------+
| Acquisition of subsidiaries | | | (300) | (2,539) |
+--------------------------------------------------+--+--------+----------+----------+
| Adjustment to fair value of subsidiary | | | (872) | - |
+--------------------------------------------------+--+--------+----------+----------+
| | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| Net cash used in investing activities | | | -------- | -------- |
+--------------------------------------------------+--+--------+----------+----------+
| | | | (2,146) | (3,255) |
+--------------------------------------------------+--+--------+----------+----------+
| | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| Financing activities | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| (Costs)/proceeds on issue of shares | | | (14) | 75 |
+--------------------------------------------------+--+--------+----------+----------+
| Purchase of own shares | | | - | (109) |
+--------------------------------------------------+--+--------+----------+----------+
| Loan note repaid | | | - | (100) |
+--------------------------------------------------+--+--------+----------+----------+
| Loan finance | | | 3,012 | - |
+--------------------------------------------------+--+--------+----------+----------+
| | | | -------- | -------- |
+--------------------------------------------------+--+--------+----------+----------+
| Net cash generated by/(utilised in) financing | | | 2,998 | (134) |
| activities | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| | | | -------- | -------- |
+--------------------------------------------------+--+--------+----------+----------+
| | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| Net increase/(decrease) in cash and cash | | | 583 | (1,881) |
| equivalents | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| Cash and cash equivalents at the beginning of | | | (330) | 1,551 |
| the year | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| | | | | |
+--------------------------------------------------+--+--------+----------+----------+
| | | | -------- | -------- |
+--------------------------------------------------+--+--------+----------+----------+
| Cash and cash equivalents at the end of the year | | | 253 | (330) |
+--------------------------------------------------+--+--------+----------+----------+
| | | | ----- | ----- |
+--------------------------------------------------+--+--------+----------+----------+
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 30 APRIL 2009
1. GENERAL INFORMATION
Progressive Digital Media Group plc is incorporated and domiciled in the United
Kingdom.
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in section 434 of the Companies Act
2006. The consolidated income statement, the consolidated statement of changes
in equity, the consolidated balance sheet at 30 April 2009, the consolidated
statement of cash flows and the associated notes for the year then ended have
been extracted from the Group's financial statements upon which the auditor's
opinion is unqualified and does not include any statement under section 498 of
the Companies Act 2006. The statutory accounts for the year ended 30 April 2009
will be delivered to the Registrar of Companies following the Group's Annual
General Meeting.
2. ACCOUNTING POLICIES
Basis of preparation
The Group's financial statements have been prepared in accordance with
applicable IFRS as adopted by the European Union and IFRS as issued by the
International Accounting Standards Board.
Going concern
The directors have undertaken a detailed review of the Group's trading
forecasts, cash flow forecasts and available financial facilities in order to
ensure that the preparation of the financial statements on the going concern
basis is appropriate. This is based on an assessment of the enlarged Group
following the reverse acquisition.
The directors consider the forecasts to have been prepared on a reasonable basis
representing management's best estimates of the Group's trading and cash flows.
The directors further note that management information for the first five months
of 2009 indicate that the Group is, to date, performing in line with forecast.
Based on their review of the forecasts, the directors have assessed that the
Group has, with a reasonable degree of headroom, access to sufficient cash flow
to enable it to continue trading and to meet its liabilities as they fall due
for the foreseeable future. In addition, the directors take comfort from the
ongoing support from a significant shareholder, should the Group require making
use of this. On this basis, the directors consider it appropriate to prepare the
financial statements on a going concern basis, and have done so.
Overall considerations
The significant accounting policies that have been used in the preparation
of these financial statements are set out in the financial statements.
The financial statements have been prepared using the measurement bases
specified by IFRS for each type of asset, liability, income and expense. The
measurement bases are more fully described in the financial statements.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 30 APRIL 2009
2. ACCOUNTING POLICIES (continued)
Prior year adjustments
During the year the Group changed its accounting policy in relation to the
treatment of database acquisition costs. Previously the Group had capitalised
the cost of acquiring email databases and amortised them over a two year period.
The Board believes that a policy of expensing these costs as incurred represents
the commercial reality of the transaction as the data concerned is not
considered to have an enduring economic value. The directors are of the opinion
that the cost of a database is a direct cost of servicing a particular client
and that any enduring economic value is considered incidental.
The effect of the new policy on the Group for the year ended 30 April 2008 is
set out in the table below. There is no affect on the Company's financial
statements.
+--------------------------------------------------+--------------+--------------+
| | 2008 |
+--------------------------------------------------+-----------------------------+
| | As | As |
| | originally | restated |
| | stated | |
+--------------------------------------------------+--------------+--------------+
| | GBP'000 | GBP'000 |
+--------------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------------+--------------+--------------+
| Brought forward retained earnings at 1 May 2007 | 2,618 | 2,151 |
+--------------------------------------------------+--------------+--------------+
| Income statement extracts: | | |
+--------------------------------------------------+--------------+--------------+
| Cost of sales (effect of expensing of additions | 10,804 | 11,958 |
| in the year) | | |
+--------------------------------------------------+--------------+--------------+
| Administrative expenses (effect of reduction in | 7,489 | 6,881 |
| amortisation charge) | | |
+--------------------------------------------------+--------------+--------------+
| Tax on profit | 635 | 352 |
+--------------------------------------------------+--------------+--------------+
| Profit for the year | 1,842 | 1,579 |
+--------------------------------------------------+--------------+--------------+
| Retained earnings at 30 April 2008 | 4,526 | 3,796 |
+--------------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------------+--------------+--------------+
| Balance sheet extracts: | | |
+--------------------------------------------------+--------------+--------------+
| Intangible assets: | | |
+--------------------------------------------------+--------------+--------------+
| Database acquisition costs | 1,012 | - |
+--------------------------------------------------+--------------+--------------+
| Domain names | 166 | 166 |
+--------------------------------------------------+--------------+--------------+
| | ------------ | ------------ |
+--------------------------------------------------+--------------+--------------+
| | 1,178 | 166 |
+--------------------------------------------------+--------------+--------------+
| | ----- | ----- |
+--------------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------------+--------------+--------------+
| Deferred tax liability | 2,046 | 1,763 |
+--------------------------------------------------+--------------+--------------+
| | ----- | ----- |
+--------------------------------------------------+--------------+--------------+
Basis of consolidation
The consolidated financial statements incorporate the results of the Company and
all of its subsidiary undertakings up to 30 April 2009. Unless otherwise stated,
the acquisition method of accounting has been adopted. Under this method, the
results of the subsidiary undertakings acquired in the year are included in the
consolidated income statement from the date of acquisition.
Significant accounting estimates and judgements
Certain estimates and judgements need to be made by the directors of the Group
which affect the results and position of the Group as reported in the financial
statements. Estimates and judgements are required if, for example, as at the
reporting date not all assets and liabilities have been settled and certain
assets and liabilities are recorded at fair value which requires a number of
estimates and assumptions to be made.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 30 APRIL 2009
2. ACCOUNTING POLICIES (continued)
The major areas for estimation within the financial statements are as follows:
Revenue recognition
At each reporting period, the Group has a number of projects in progress.
Management review each project's progress and reach a judgement as to the
revenue that should be recognised in those business streams where revenue is
recognised on a stage of completion basis. Management base this judgement on the
best available project information.
Bad debt provision
At each reporting period, management review outstanding debts and determine
appropriate provision levels. Needless to say, the recovery of certain debts is
dependent on the individual circumstances of customers. There are a number of
debts which remain outstanding past their due date, which management believe to
be recoverable.
Provision for reward points
The provision for reward points represents the estimated future liabilities of
unredeemed points where revenue attributable to the points issued has been
recognised. The provision is calculated using a standard costing method making
certain assumptions concerning redemption levels. In forming these judgements,
the directors have assessed the anticipated future profile of points redemptions
based on the Group's past experience of redemptions, the current run-rate of
points accumulation and the age profile of the points in issue.
Impairment of intangible assets
Determining whether intangible assets are impaired requires an estimation of the
value in use of the cash-generating units ("CGU") to which intangible assets
have been allocated. The value in use calculation requires the management to
estimate the future cash flows expected to arise from the CGU and a suitable
discount rate in order to calculate present value.
The major areas of judgement within the financial statements are as follows:
Deferred consideration
On deferred consideration for acquisitions and where performance criteria exist,
the likelihood of the performance criteria being achieved are assessed to
determine the level of consideration that is appropriate to recognise.
Recoverability of deferred tax assets
There is uncertainty over the recoverability of deferred tax assets. Management
review forecasts for a two year period to assess the recoverability of the
deferred tax asset.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 30 APRIL 2009
3. SEGMENTAL ANAYLSIS
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| Year ended | | Email | Affiliate | Research | Publishing | Central/ | Total |
| 30 April 2009 | | marketing | marketing | | & hosting | unallocated | |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| | | | | | | | |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| Segment revenues - | | 8,632 | 14,782 | 2,589 | 1,888 | - | 27,891 |
| continuing operations | | | | | | | |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| | | ----- | ----- | ----- | ----- | ----- | ----- |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| | | | | | | | |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| Operating loss before | | (1,803) | (3,093) | (542) | (396) | (2,519) | (8,353) |
| exceptional costs | | | | | | | |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| Exceptional costs | | (8,904) | (183) | (85) | (9) | (1,059) | (10,240) |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| | | -------- | -------- | -------- | -------- | -------- | -------- |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| Operating loss after | | (10,707) | (3,276) | (627) | (405) | (3,578) | (18,593) |
| exceptional costs | | | | | | | |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| | | ----- | ----- | ----- | ----- | ----- | -------- |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| | | | | | | | |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| Net finance costs | | | | | | | (199) |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| | | | | | | | -------- |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| Loss before taxation | | | | | | | (18,792) |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| Taxation | | | | | | | 2,230 |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| Discontinued | | | | | | | 167 |
| operations | | | | | | | |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| | | | | | | | -------- |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| Loss after tax | | | | | | | (16,395) |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| | | | | | | | ----- |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| | | | | | | | |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| Other segment | | | | | | | |
| information | | | | | | | |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| Capital expenditure | | 58 | 12 | 20 | 29 | 253 | 372 |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| Depreciation & | | 1,069 | 1,456 | 27 | 33 | 389 | 2,974 |
| amortisation | | | | | | | |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
| | | ----- | ----- | ----- | ----- | ----- | ----- |
+------------------------+-----+-----------+-----------+----------+------------+-------------+----------+
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 30 APRIL 2009
3. SEGMENTAL ANALYSIS (continued)
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| Year ended | | Email | Affiliate | Research | Publishing | Central/ | Total |
| 30 April 2008 | | marketing | marketing | | & hosting | unallocated | as |
| | | | | | | | restated |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| | | | | | | | |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| Segment revenues - | | 13,175 | 4,087 | 2,690 | 2,052 | - | 22,004 |
| continuing operations | | | | | | | |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| | | -------- | -------- | -------- | -------- | -------- | -------- |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| Operating profit before | | 1,479 | 728 | 355 | 413 | (847) | 2,128 |
| exceptional costs (as | | | | | | | |
| restated) | | | | | | | |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| Exceptional costs | | - | - | - | - | (225) | (225) |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| | | -------- | -------- | -------- | -------- | -------- | -------- |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| Operating profit after | | 1,479 | 728 | 355 | 413 | (1,072) | 1,903 |
| exceptional costs (as | | | | | | | |
| restated) | | | | | | | |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| | | ----- | ----- | ----- | ----- | ----- | |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| Net finance costs | | | | | | | (9) |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| | | | | | | | -------- |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| Profit before tax | | | | | | | 1,894 |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| Taxation | | | | | | | (352) |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| Discontinued operations | | | | | | | 37 |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| | | | | | | | -------- |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| Profit after tax | | | | | | | 1,579 |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| | | | | | | | ----- |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| | | | | | | | |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| Other Segment | | | | | | | |
| information | | | | | | | |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| Capital expenditure | | - | - | - | - | 384 | 384 |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| Depreciation & | | 178 | - | 91 | 352 | 408 | 1,029 |
| amortisation | | | | | | | |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| Share based payment | | - | - | - | - | 27 | 27 |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
| | | ----- | ----- | ----- | ----- | ----- | ----- |
+-------------------------+----+-----------+-----------+----------+------------+-------------+----------+
As these business streams are integrated with each other it is not possible to
separately identify the segmental assets and liabilities held individually.
The Group's revenue from external customers and its geographic allocation of net
assets may be summarised as follows:
+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | Year ended 30 April 2009 | Year ended 30 April 2008 |
+-----------------+-----------------------------------+-----------------------------------+
| | Revenue | Assets | Revenue | Assets |
+-----------------+-----------------+-----------------+-----------------+-----------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-----------------+-----------------+-----------------+-----------------+-----------------+
| United Kingdom | 24,716 | 3,120 | 20,385 | 19,169 |
+-----------------+-----------------+-----------------+-----------------+-----------------+
| Netherlands | 3,175 | 136 | 1,619 | 602 |
+-----------------+-----------------+-----------------+-----------------+-----------------+
| | ------------ | ----------- | ------------ | ------------ |
+-----------------+-----------------+-----------------+-----------------+-----------------+
| | 27,891 | 3,256 | 22,004 | 19,771 |
+-----------------+-----------------+-----------------+-----------------+-----------------+
| | ------ | ----- | ------ | ------ |
+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | Acquisition of | Acquisition of | Acquisition of | Acquisition of |
| | property, plant | intangibles | property, plant | intangibles |
| | and equipment | | and equipment | as restated |
+-----------------+-----------------+-----------------+-----------------+-----------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-----------------+-----------------+-----------------+-----------------+-----------------+
| United Kingdom | 356 | 607 | 384 | 374 |
+-----------------+-----------------+-----------------+-----------------+-----------------+
| Netherlands | 16 | - | - | - |
+-----------------+-----------------+-----------------+-----------------+-----------------+
| | ------------ | ----------- | ------------ | ------------ |
+-----------------+-----------------+-----------------+-----------------+-----------------+
| | 372 | 607 | 384 | 374 |
+-----------------+-----------------+-----------------+-----------------+-----------------+
| | --------- | -------- | --------- | --------- |
+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 30 APRIL 2009
4. OPERATING (LOSS)/PROFIT
Operating (loss)/profit is stated after charging:
+-----------------------------------------+-----------+-----------+-----------+
| | | 2009 | 2008 |
+-----------------------------------------+-----------+-----------+-----------+
| | | | as |
| | | | restated |
+-----------------------------------------+-----------+-----------+-----------+
| | | GBP'000 | GBP'000 |
+-----------------------------------------+-----------+-----------+-----------+
| | | | |
+-----------------------------------------+-----------+-----------+-----------+
| Amortisation of intangibles | | 2,519 | 847 |
+-----------------------------------------+-----------+-----------+-----------+
| Foreign exchange | | 45 | 12 |
+-----------------------------------------+-----------+-----------+-----------+
| Depreciation of owned assets | | 455 | 182 |
+-----------------------------------------+-----------+-----------+-----------+
| Loss on disposal of fixed assets | | 316 | - |
+-----------------------------------------+-----------+-----------+-----------+
| Auditor's remuneration (see below) | | 257 | 114 |
+-----------------------------------------+-----------+-----------+-----------+
| Operating lease expense - land and | | 493 | 212 |
| buildings | | | |
+-----------------------------------------+-----------+-----------+-----------+
| Exceptional costs (see below) | | 10,240 | 225 |
+-----------------------------------------+-----------+-----------+-----------+
| | | ----- | ----- |
+-----------------------------------------+-----------+-----------+-----------+
Exceptional costs
+-----------------------------------------+-----------+-----------+-----------+
| | | 2009 | 2008 |
+-----------------------------------------+-----------+-----------+-----------+
| | | GBP'000 | GBP'000 |
+-----------------------------------------+-----------+-----------+-----------+
| | | | |
+-----------------------------------------+-----------+-----------+-----------+
| Legal and professional costs relating | | - | 225 |
| to rejected offers for the business | | | |
+-----------------------------------------+-----------+-----------+-----------+
| Restructuring and reorganisation costs | | 661 | - |
+-----------------------------------------+-----------+-----------+-----------+
| Impairment of goodwill and intangible | | 9,579 | - |
| assets | | | |
+-----------------------------------------+-----------+-----------+-----------+
| | | -------- | -------- |
+-----------------------------------------+-----------+-----------+-----------+
| | | 10,240 | 225 |
+-----------------------------------------+-----------+-----------+-----------+
| | | ----- | ----- |
+-----------------------------------------+-----------+-----------+-----------+
Auditors' remuneration
+-----------------------------------------+-----------+-----------+-----------+
| | | 2009 | 2008 |
+-----------------------------------------+-----------+-----------+-----------+
| | | GBP'000 | GBP'000 |
+-----------------------------------------+-----------+-----------+-----------+
| | | | |
+-----------------------------------------+-----------+-----------+-----------+
| Fees payable to the Group's auditors | | 83 | 94 |
| for the audit of the Company's annual | | | |
| accounts | | | |
+-----------------------------------------+-----------+-----------+-----------+
| Other services (transaction and tax | | 150 | 20 |
| services) | | | |
+-----------------------------------------+-----------+-----------+-----------+
| Fees payable to the Company's auditors | | 24 | - |
| and their associates for other services | | | |
| to the Group | | | |
+-----------------------------------------+-----------+-----------+-----------+
| | | | |
+-----------------------------------------+-----------+-----------+-----------+
| | | -------- | -------- |
+-----------------------------------------+-----------+-----------+-----------+
| | | 257 | 114 |
+-----------------------------------------+-----------+-----------+-----------+
| | | ----- | ----- |
+-----------------------------------------+-----------+-----------+-----------+
In addition to the amounts shown above, the Group paid GBP15,042 (2008:
GBP116,000) to the auditors in respect of costs. Relating to transaction support
services which have been included within the cost of investments.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 30 APRIL 2009
5. (LOSS)/EARNINGS PER SHARE
The calculation of the basic loss per share is based on the loss for the year of
GBP16,395,000
(2008: profit GBP1,579,000) divided by the weighted average
number of shares in issue during the year of 76,098,315 (2008: 56,111,000). As
the effect of share options is anti dilutive no diluted loss per share figure
has been produced in the year to April 2009.
An adjusted loss per share has also been calculated based on the loss for the
year before amortisation of acquisition related intangible assets and
exceptional costs amounting to a total of GBP10,240,000 (2008: GBP1,072,000).
The adjusted loss per share is therefore based on the adjusted loss for the year
of GBP6,155,000 (2008: profit GBP2,651,000) divided by the weighted average
number of shares in issue during the year of 76,098,315 (2008: 56,111,000) which
results is an adjusted loss per share of 8.1 pence (2008: 4.7 pence).
The calculation of earnings per share is based on the following (loss)/profits
and number of shares:
+---------------------+----------+---------+---------+----------+----------+----------+
| | 2009 | 2008 |
+---------------------+------------------------------+--------------------------------+
| | Loss | Number | Pence | Profit | Number | Pence |
| | GBP'000 | of | per | as | of | per |
| | | shares | share | restated | shares | share |
| | | '000 | | GBP'000 | '000 | as |
| | | | | | | restated |
+---------------------+----------+---------+---------+----------+----------+----------+
| | | | | | | |
+---------------------+----------+---------+---------+----------+----------+----------+
| | | | | | | |
+---------------------+----------+---------+---------+----------+----------+----------+
| Basic | (16,395) | 76,098 | (21.5) | 1,579 | 56,111 | 2.8 |
| (loss)/earnings | | | | | | |
| per share | | | | | | |
+---------------------+----------+---------+---------+----------+----------+----------+
| | ----- | ----- | ----- | | | |
+---------------------+----------+---------+---------+----------+----------+----------+
| Dilutive effect | | | | | | |
| of securities: | | | | | | |
+---------------------+----------+---------+---------+----------+----------+----------+
| Share options | | | | | 1,789 | |
+---------------------+----------+---------+---------+----------+----------+----------+
| Deferred | | | | | 1,176 | |
| consideration to | | | | | | |
| be | | | | | | |
| settled in | | | | | | |
| shares | | | | | | |
+---------------------+----------+---------+---------+----------+----------+----------+
| | | | | -------- | -------- | -------- |
+---------------------+----------+---------+---------+----------+----------+----------+
| Diluted earnings | | | | 1,579 | 59,076 | 2.7 |
| per share | | | | | | |
+---------------------+----------+---------+---------+----------+----------+----------+
| | | | | ----- | ----- | ----- |
+---------------------+----------+---------+---------+----------+----------+----------+
6. REPORT AND ACCOUNTS
The Group's annual report and financial statements will be, where required,
posted to shareholders shortly; alternatively the annual report and financial
statements are published on our corporate web site
www.progressivedigitalmedia.com
7. ANNUAL GENERAL MEETING
The Annual General Meeting will be held on 27 November 2009 at 9am at 2 Gresham
Street, London.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR CKCKDABDDNKB
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