TIDMMAMA
RNS Number : 1173E
MAMA Group Plc
15 December 2009
MAMA Group Plc
Audited Results for the period ended 31 July 2009
MAMA Group Plc ("MAMA Group" or "the Company"), the holding company of a number
of music and marketing services businesses (together with MAMA, the "Group"),
announces its audited final results for the twelve month period ended 31 July
2009.
Financial Highlights:
* Turnover increased by 14.0%; Group revenues for the period totalled GBP38.2m;
* Profit before interest and taxation for the year was GBP6.03m, compared to
GBP0.60m for the year ended 31 July 2008;
* EBITDA (operating profit before exceptional items, interest, taxation,
deprecation and amortisation) of GBP3.58m compared to GBP3.51m for the year 31
July 2008. EBITDA reduced by GBP0.92m following the disposal to HMV of 50% of
the venues within Mean Fiddler Group ("MFG") in the second half of the year.
Adding back this impact gives an Operational EBITDA of GBP4.50m, 28% up on the
year.
* Net assets increased to GBP29.59m from GBP23.53m on 31 July 2008;
* Gross cash reserves stood at GBP7.15m at 31 July 2009;
* The group bank borrowings have been eliminated as a result of the HMV
transaction.
Operational Highlights:
* A year in which the recent strong top line growth of the Group translated to
bottom line profit growth;
* Announcement in September 2008 of the acquisition of Heaven from Pure Management
Group for GBP2.75m;
* The opening of the 1,500 capacity The Picture House in Edinburgh in September
2008;
* Announcement in January 2009 of a landmark deal with the disposal of 50% of Mean
Fiddler Group to HMV for an initial consideration of GBP18.245m. The deal
created a strong new player in the UK live music market and gives the Group
access to HMV's distribution capacity via their 270 UK stores and 55m visits to
HMV.com;
* Opening of the 800 capacity Garage in London in June 2009;
* 75,000 festival attendees for the Group's outdoor festivals in July 2009;
* The Group now operates the largest number of live music venues in the UK and is
the second largest music festival operator.
* The Group's artist management operations together with the Company's 20% stake
in North American based, Nettwerk, represents the largest integrated artist
management business in the World.
Commenting, Adam Driscoll and Dean James, Co-Chief Executives, said:
"We are delighted to be reporting growth in profit before interest and taxation
for the year. On a like-for-like basis we have also improved EBITDA by 28%. We
are also pleased to be able to report that trading after the reported balance
sheet date has continued to be strong.
"Strategically, our combination of strong live venues married to both a growing
artist management roster and significant positions in ticketing, sponsorship and
digital environment is, we believe, the model for the industry of the future.
Our results are demonstrating that to be the case. We see opportunities for
further growth.
"The partnership we announced with HMV in January created one of the strongest
live music companies to emerge in the UK in recent years. Our combination of
music venues and HMV's distribution capabilities allows us to work closely with
artists at all stages of their careers to drive ticket and merchandise sales. We
believe this presents both artists and the UK music industry at large with a new
and potentially significant driver of top line growth. We see continued
opportunities to work with artists to further develop new income streams.
"The last 12 months have seen us consolidate our position as one of the UK's
leading music businesses whilst at the same time delivering advances to the
bottom line. We have a strong balance sheet and we are confident for the
future".
The full text of the Co-Chief Executives' statement and the results for the year
ended 31 July 2009 is set out below.
+-------------+---------------+
| For | |
| further | |
| information | |
| contact: | |
| | |
+-------------+---------------+
| Adam | |
| Driscoll | 020 7688 9000 |
| or Dean | |
| James , | |
| Co-Chief | 020 7929 5599 |
| Executives, | |
| MAMA Group | |
| Plc | |
| | |
| David | |
| Bick/Mark | |
| Longson | |
| Square1 | |
| Consulting | |
| Limited | |
+-------------+---------------+
MAMA Group Plc
CO-CHIEF EXECUTIVES' STATEMENT
for the year ended 31 July 2009
Introduction
We are pleased to announce the results for MAMA Group Plc ('MAMA' or 'the
Company') and its subsidiaries (together 'the Group') for the year ended 31 July
2009.
This last year has been a year of significant progress for the Group. The
revenue growth that has been experienced in recent years has been translated
into bottom line profitability in our growth markets. The partnership
established with HMV Group Plc ('HMV') in January 2009 has allowed us to develop
one of the strongest music companies in the UK live music market. Our joint
venture has worked well at a financial, strategic and operational level. The HMV
deal also enabled the Group to eliminate its bank borrowings and strengthen the
balance sheet.
Our long established strategy has been to marry the two key pillars of today's
music industry - the live business and artist management and development. A
strong live music business enables us to build a wider set of rights and
relationships with artists. We are now seeing the fruits of that strategy
pay off in increased revenue and profit for the Group. We are also pleased to be
able to report that trading after the reported balance sheet date has continued
to be strong. We are particularly satisfied with our results given the adverse
economic climate of the last few months.
Financial Results
The results for the year ended 31 July 2009 show growth and improvement over the
same period in the previous year:
* Revenue increased by 14.0%; Group revenues for the period totalled GBP38.2m
(2008: GBP33.5m);
* Profit before interest and taxation for the year was GBP6.0m, compared to
GBP0.6m for the year ended 31 July 2008;
* EBITDA (Operating profit before exceptional items, interest, depreciation and
amortisation) of GBP3.58m compared to GBP3.51m for the year 31 July 2008. EBITDA
was reduced by GBP0.92m following the disposal to HMV of 50% of Mama's interest
in the venues in the Mean Fiddler Group in the second half of the year. Adding
back this impact gives an Operational EBITDA of GBP4.50m, 28% up on the year.
* Net assets increased to GBP29.59 m from GBP23.53m on 31 July 2008;
* Gross cash reserves stood at GBP7.15m at 31 July 2009 (2008: GBP2.98m);
* The group bank borrowings have been eliminated as a result of the HMV
transaction.
Trading since the year end has been strong and the Directors are confident about
the Group's prospects.
Business Review
The Group consists of three divisions - Live Music, Artist Services and
Consumer.
Live Music
The live music market has seen another strong period of growth. In September
2008 we completed the acquisition of Heaven nightclub in London and at the same
time transferred the weekly G-A-Y club nights from a third party owned venue to
Heaven thereby generating attendance of approximately 250,000 clubbers per
annum. We also opened Heaven for pre club live music shows in January with the
first performance being by MAMA managed artist Franz Ferdinand. This additional
live activity increases utilisation and profitability at the venue. We are
encouraged by the way the venue has performed this year. The refurbishment of
The Picture House in Edinburgh was completed in September 2008 and the venue has
become an important part of the music scene in Edinburgh, playing host to a
number of well known artists.
In January 2009 we announced a transformative deal with HMV which saw it pay an
initial GBP18.245m for 50% of Mean Fiddler Group Ltd ('MFG'). In addition, MAMA
received cash of GBP4.5m from MFG as a result of debt being obtained by the
joint venture via a facility with Lloyds Banking Group. MFG comprises the venues
hmv Hammersmith Apollo, hmvForum, The Relentless Garage, Jazz Café, The
Edinburgh Picture House, The Birmingham Institute, Heaven, G-A-Y Bar, G-A-Y
Late, The Borderline and Aberdeen's Warehouse.
The Directors believe this is a landmark deal that alters the face of the live
venue business in the UK. The engagement of artist and fan is the key driver of
the music industry. That engagement is at its most evident at live events. This
partnership between the Group and HMV augments that live experience by enabling
us to offer the artist and fans a range of other opportunities to interact. The
Group believes that linking tickets, tracks and merchandise through a direct
artist-to-fan relationship is a way to help the music industry grow and prosper.
MFG makes this a reality by partnering some of the best UK music venues with the
UK's leading entertainment retailer. Artists such as White Lies, La Roux and
Paulo Nutini have performed at MFG venues recently with a strong link to HMV's
retail distribution helping drive CD sales and securing good chart positions for
the artist during the week of release. This is changing the way artists and
record labels view live venues as distribution points for recorded product.
Significant post deal developments in MFG include: the record year enjoyed by
the HMV Forum, a 2,350 capacity venue in London; and, the refurbishment,
re-opening and subsequent encouraging trading of the 800 capacity Relentless
Garage venue in London. We are also able to report that trading after 31 July
2009 at the HMV Hammersmith Apollo, MFG's flagship 5,100 capacity venue, has
been at record levels.
The Group's Barfly live music division underwent a further period of
restructuring and, following an operational review, a decision was taken to
close the Glasgow and Fly (London) venues. The venue in Liverpool was sold.
Our music festival business had a very strong year with each of the Group's four
music festivals reporting good profit contributions. Angel Music Group Ltd (AMG)
a subsidiary of MAMA operates the 50,000 capacity Global Gathering festival in
Stratford and the 15,000 capacity Escape into the Park festival in Swansea. In
addition, AMG organises 11 international festivals under the Godskitchen and
Global Gathering brands in mainland Europe and Asia. During the period we
increased our stake in the Lovebox Weekender festival to 60% This event takes
place in London in July and the festival delivered good levels of profitability
with its best ever attendance figures. Additionally The Great Escape festival
was held for the fourth time in Brighton in May 2009 and reported another year
of profit. The Group also set up a division to operate its own bars this year
having previously contracted this out to a third party. This business delivered
incremental profit to the festival business and we expect to see this trend
continuing at next summer's festivals.
In the year to 31 July 2009, revenues within the division were GBP30.8m versus
GBP28.2m to 31 July 2008. The disposal of 50% of MFG to HMV reduced the revenue
of the Group in the period from disposal by GBP5.5m.
Artist Services
The artist services division had a good year with revenues from some of our
well-known artists now being augmented with income from new, developing talent.
Revenues for the period totalled GBP5.1m.
SuperVision Management Group continued to grow with a number of new Limited
Liability Partnerships (LLPs) being formed with incoming managers. Our artist
management business is made up of a number of LLPs with most partnerships being
majority owned by the Group. Non controlling interests relating to the
individual managers are shown separately in the income statement. A number of
the artists that we represent have continued to meet with significant commercial
success. Kaiser Chiefs played to packed arenas around the UK and released their
third studio album in October 2008, Franz Ferdinand completed their third album
which was released in January 2009 and new clients, White Lies, debuted at the
top of the UK albums chart. A number of other artists had commercial success,
including The Cribs, Crystal Castles and Los Campesinos, whilst our pipeline of
new artists continued to grow. SuperVision now counts over 40 artists on its
roster and represents the strongest line up of managed musical talent under one
roof in the UK industry.
We believe we lead the way in terms of management services and we now enter into
partnership arrangements with a number of our artist clients which enables us to
take a more active role in the management of their businesses. We have had early
commercial success with Girls, a San Francisco based band and are confident that
we will continue to make significant strides in evolving SuperVision from a pure
management model into a management and business partnership company. Changing
the commercial terms of our engagement with artists in this manner will bring
financial benefits to both us and our clients.
We maintain our close working relationship with the Nettwerk management and
recording businesses in North America following our acquisition of a 20% stake
in November 2007. This strategic investment created a substantial artist
management collective with Nettwerk's roster of more than 60 recording artists
complementing MAMA's management activities. This underpins our strategic
evolution into an artist partnership business which is supplemented by our
activities in the merchandising and publishing sectors via Slipstream
Merchandising and Manett publishing, two Group companies.
We have built a forward-thinking artist management business that is now
capitalising upon an industry-wide accretion of power at the artist and artist
manager level.
Consumer
The Consumer division comprises sponsorship, marketing and media activities that
support the two main divisions of the Group. Revenues at GBP2.0m were in line
with 2008; we believe a good result in a challenging market.
Sponsorship revenues have benefited from the close link between MAMA's in house
sponsorship business, Music and Media Solutions Ltd, and the Group's Live and
Artist Services divisions. This has resulted in a substantial uplift in revenues
from the aggregation of deals with brands such as Levis, Gaymers, Red Stripe,
Top Man and Red Bull. We see further scope for developing this business as more
consumer brands seek to align themselves with the Group's music operations.
Marketing activities are driven by our Campus Media Ltd subsidiary which has
done well in what was a tough year for marketing consumer products to students.
Overall profitability of the Consumer Division was GBP345k, an increase of
GBP215k on the prior year.
Summary
In this current economic climate where there is a high degree of uncertainty, we
are delighted to be reporting improvements in profitability across the Group.
Importantly, we believe that the growth and development of the business over the
last 18 months is set to continue.
Strategically, our combination of strong live venues married to both a growing
artist management roster and significant positions in ticketing, sponsorship and
digital environment is, we believe, the model for the industry of the future.
Our results are demonstrating that to be the case. We see opportunities for
further growth.
The last 12 months have seen us consolidate our position as one of the UK's
leading music businesses whilst at the same time delivering advances to the
bottom line. We have a strong balance sheet and we are confident for the future.
Adam Driscoll and Dean James
Co-Chief Executives
14 December 2009
MAMA Group Plc
OPERATING AND FINANCIAL REVIEW
for the year ended 31 July 2009
1. ANALYSIS OF THE BUSINESS OF MAMA GROUP PLC
1.1 Results for the year ended 31 July 2009
The Group profit for the year before tax amounted to GBP4,766k (31 July 2008:
GBP49k). The Group's EBITDA (operating profit before exceptional costs,
interest, depreciation and amortisation) was GBP3,576k (2008: GBP3,512k). The
result for the year reflects the impact of disposing of 50% of the Mean Fiddler
Group to HMV. This deal effectively stripped out GBP0.92m of EBITDA and GBP5.5m
of revenue. Adding back this impact would increase EBITDA and revenue by 28% and
30% for the year respectively.
1.2 Principal activities and development of the business during the year
The Group consists of three divisions: Live Music, Artist Services and Consumer.
A summary of the performance of each division during the year appears below,
together with the significant developments that have occurred in each of them.
1.3 Live Music division
The Live Music division continues to be the largest part of the Group in terms
of turnover and profitability. At the end of the year the division consisted of
3 business units; the Mean Fiddler Group of venues, Barfly group of venues and
the music festival businesses.
+--------------------------------+----------+--+----------+---+----------+--+--------+
| Table 1 | Live Music division |
+--------------------------------+---------------------------------------------------+
| | Year ended 31 July |
+-------------------------------------------------------------+----------------------+
| | 2009 | | 2008 |
+-------------------------------------------------------------+----------+--+--------+
| | Total | | Total |
+-------------------------------------------------------------+----------+--+--------+
| | GBP000 | | GBP000 |
+-------------------------------------------------------------+----------+--+--------+
| Revenue | 30,783 | | 28,180 |
+-------------------------------------------------------------+----------+--+--------+
| Operating profit before exceptional items, depreciation and | 4,049 | | 3,700 |
| amortization ("Result") | | | |
+-------------------------------------------------------------+----------+--+--------+
| Exceptional items | - | | (72) |
+-------------------------------------------------------------+----------+--+--------+
| Closed venues | (349) | | (885) |
+-------------------------------------------------------------+----------+--+--------+
| Depreciation and amortisation | (1,348) | | (815) |
+-------------------------------------------------------------+----------+--+--------+
| Contribution (pre non controlling interests) | 2,352 | | 1,928 |
+-------------------------------------------------------------+----------+--+--------+
| | | | |
+-------------------------------------------------------------+----------+--+--------+
| | Year ended 31 July |
+--------------------------------+---------------------------------------------------+
| | 2009 | | 2008 |
+--------------------------------+------------------------+---+----------------------+
| Analysis | Revenue | | Result | | Revenue | | Result |
+--------------------------------+----------+--+----------+---+----------+--+--------+
| | GBP000 | | GBP000 | | GBP000 | | GBP000 |
+--------------------------------+----------+--+----------+---+----------+--+--------+
| Venues operating at start of | 14,212 | | 1,578 | | 12,883 | | 2,654 |
| year | | | | | | | |
+--------------------------------+----------+--+----------+---+----------+--+--------+
| New venues and operations in | 8,172 | | 947 | | 8,352 | | (281) |
| year | | | | | | | |
+--------------------------------+----------+--+----------+---+----------+--+--------+
| Closed venues | 715 | | - | | 627 | | - |
+--------------------------------+----------+--+----------+---+----------+--+--------+
| Festivals and related services | 7,684 | | 1,524 | | 6,318 | | 1,327 |
+--------------------------------+----------+--+----------+---+----------+--+--------+
| | 30,783 | | 4,049 | | 28,180 | | 3,700 |
+--------------------------------+----------+--+----------+---+----------+--+--------+
| | | | | | | | |
+--------------------------------+----------+--+----------+---+----------+--+--------+
| | | | 2009 | | | | 2008 |
+--------------------------------+----------+--+----------+---+----------+--+--------+
| | | | GBP000 | | | | GBP000 |
+--------------------------------+----------+--+----------+---+----------+--+--------+
| Net assets of division | | | 23,597 | | | | 30,170 |
+--------------------------------+----------+--+----------+---+----------+--+--------+
Mean Fiddler Group
In January 2009, we part disposed of our interest in a number of subsidiary
operating companies to a new venture, the Mean Fiddler Group Ltd ("MFG"). This
Group is responsible for the ownership and operation of 11 venues namely, The
hmv Hammersmith Apollo, hmv Forum, Relentless Garage, Jazz Café, Edinburgh hmv
Picture House, Birmingham Institute, Heaven, G-A-Y Bar, G-A-Y Late, The
Borderline and Aberdeen Warehouse.
In consideration of this disposal we received 50% of the issued share capital in
MFG and cash consideration of GBP18.245m from HMV. This consideration was
subject to a positive or negative adjustment depending on subsequent EBITDA. The
period relating to the earn out has recently ended and no adjustment is
expected. The results of MFG are proportionately consolidated within the Group's
accounts.
During the reporting period 3 venues opened for trading. In September 2008, the
Group announced the acquisition of Heaven in Charing Cross which now operates a
number of our key G-A-Y nights. That month also saw the opening of the hmv
Picture House in Edinburgh. The freehold of this building was acquired in March
2008 and the venue opened following a GBP0.6m refurbishment. The Relentless
Garage in London re-opened in June 2009 following a GBP1m refurbishment and a
long period of closure. Along with HMV, our joint venture partner, we continue
to seek further high quality expansion opportunities.
Barfly
We instigated a strategic review following a sustained difficult period of
trading for this business. As a result the Barfly Group has been reduced to 3
trading venues in Cardiff, York and Camden. During the year 4 venues have been
disposed of or closed and a further venue in the West End was closed in December
2009, post the year end. The results for the closed venues are highlighted
within closed operations with a loss of GBP349k.
The 4th annual live music festival event, The Great Escape, was held in Brighton
in May 2009 and has become a regularly profitable venture.
Festivals
The festival division consists of three key business units with Angel Music
Group (AMG) being the largest of these. The Group increased its share in AMG
from 70% to 85% after the year end. The AMG group has two principal
activities. The first of these is the provision of services in respect of music
festivals throughout the world which utilise the AMG brands of Godskitchen and
Global Gathering. These services are delivered principally through a contract to
provide consultancy services to a major international corporation in support of
the corporation's sponsorship of festivals overseas utilising the Godskitchen
and Global Gathering names. AMG also has a 49.9% investment in a joint
venture - Angel Festivals Limited with LN Gaiety Limited through which it
operates and runs a major summer music festival, Global Gathering, which is held
annually in July together with a smaller festival, Escape into the Park, held in
June. The results of this joint venture are consolidated proportionately within
MAMA.
MAMA, through its 60% ownership of Lovebox Festivals Ltd, also operates the
Lovebox festival in Victoria Park, London.
AMG and Lovebox have both delivered significant profit growth to the Group
during the financial year, mainly a result of tight cost controls and increased
festival ticket sales.
During the year the Group also started its own bar operation at festivals. This
function had previously been provided by third parties but in 2009 we brought
this important revenue and profit stream in-house. The business had a successful
and profitable first year. This venture is operated through MAMA Festivals
Limited, a wholly owned subsidiary of MAMA Group.
A new festival, High Voltage, has been launched post year end. This will take
place in July 2010 in Victoria Park, London. A number of key high profile acts
have already been secured and the event, operated through MAMA Festivals
Limited, is expected to drive profit growth.
1.4 Artist Services division
The Artist Services division contains five business units - artist management,
record producer management, a small recording production business, music
publishing and merchandising.
+----------------------+--------+--------+--+------------+--+------------+--+------------+
| Table 2 | Artist Services division |
+-------------------------------+--------------------------------------------------------+
| | |
| | Year ended 31 July |
+-----------------------------------------------------------+----------------------------+
| | | | |
| | | | Restated |
+-----------------------------------------------------------+------------+--+------------+
| | 2009 | | 2008 |
+-----------------------------------------------------------+------------+--+------------+
| | Total | | Total |
+-----------------------------------------------------------+------------+--+------------+
| | | | |
+-----------------------------------------------------------+------------+--+------------+
| | GBP000 | | GBP000 |
+-----------------------------------------------------------+------------+--+------------+
| | | | |
+-----------------------------------------------------------+------------+--+------------+
| Revenue | 5,122 | | 3,220 |
+-----------------------------------------------------------+------------+--+------------+
| | | | |
+-----------------------------------------------------------+------------+--+------------+
| Operating profit before exceptional items, depreciation | 1,105 | | 999 |
| and amortisation ("Result") | | | |
+-----------------------------------------------------------+------------+--+------------+
| Exceptional items | (2) | | (16) |
+-----------------------------------------------------------+------------+--+------------+
| Depreciation and amortisation | (13) | | (4) |
+-----------------------------------------------------------+------------+--+------------+
| Contribution (pre non controlling interests) | 1,090 | | 979 |
+-----------------------------------------------------------+------------+--+------------+
| | | | |
+-----------------------------------------------------------+------------+--+------------+
| | |
| | Year ended 31 July |
+----------------------+-----------------------------------------------------------------+
| | 2009 | | 2008 |
+----------------------+---------------------------------+--+----------------------------+
| Analysis | Revenue | | Result | | Revenue | | Result |
+----------------------+-----------------+--+------------+--+------------+--+------------+
| | GBP000 | | GBP000 | | GBP000 | | GBP000 |
+----------------------+-----------------+--+------------+--+------------+--+------------+
| | | | | | | | |
+----------------------+-----------------+--+------------+--+------------+--+------------+
| Artist and producer | 5,061 | | 1,243 | | 3,151 | | 1,121 |
| management | | | | | | | |
+----------------------+-----------------+--+------------+--+------------+--+------------+
| Recordings activity | 61 | | (138) | | 69 | | (122) |
+----------------------+-----------------+--+------------+--+------------+--+------------+
| | 5,122 | | 1,105 | | 3,220 | | 999 |
+----------------------+-----------------+--+------------+--+------------+--+------------+
| | | | | | | | |
+----------------------+-----------------+--+------------+--+------------+--+------------+
| | | | 2009 | | | | 2008 |
+----------------------+-----------------+--+------------+--+------------+--+------------+
| | | | GBP000 | | | | GBP000 |
+----------------------+-----------------+--+------------+--+------------+--+------------+
| | | | | | | | |
+----------------------+-----------------+--+------------+--+------------+--+------------+
| Net assets of | | | 2,721 | | | | 1,317 |
| division | | | | | | | |
+----------------------+-----------------+--+------------+--+------------+--+------------+
| | | | | | | | |
+----------------------+--------+--------+--+------------+--+------------+--+------------+
The most significant part of the Artist and Producer management operation
continues to be Supervision Management Group Limited (SVM). This company has
investments in a number of majority owned limited liability partnerships (LLPs)
which are linked to specific artists and managers. The LLP structure provides a
means of providing managers direct benefits from the success of the artists they
represent. There are now 16 such LLPs and SVM has minority interests in 3
further LLPs. Currently the Group is in partnership with 16 managers and has
over 40 clients under management.
The activities of artists under management have grown during 2009. Of particular
note are White Lies who debuted at number 1 in the UK charts with their first
album release, Franz Ferdinand who continued to have international success and
Kaiser Chiefs who released their third album and toured successfully in many
territories. The SVM group has a number of other artists who are showing growing
levels of fan support and income, including The Cribs, Gang of Four, Music Go
Music, Crystal Castles, Princess Superstar, Air Traffic and The Magic Numbers.
Stephen Budd Management Limited (SBM), the Group's record producer management
business, continues to find trading conditions difficult, reflecting the
continuing pressures being applied to recording budgets by major record labels
as they seek to cut costs. This company and Pollination, which operates in
conjunction with SBM, posted a small loss for the year.
Slipstream, the Group's merchandising operation, completed its second year of
trading and revenue grew by GBP1.8m up 227% on 2008. The business made a small
operating loss in the year. This LLP enters into merchandising contracts with
artists both on a concession basis and as the provider of the merchandise goods.
The operation supports artists on tours by selling merchandise to the public.
The Group's recording production business was not a major contributor to
revenues or overheads in the year, but generated an EBITDA loss at a similar
level to last year. This reflects the cost of investment in artists which are
only expensed when it is not expected that the costs will be recovered. The
artists now under contract include Johnny Foreigner, who have released an album
after the year end, and Danananakroyd.
The Artist Division is also responsible for the strategic minority investments
in various companies in the international Nettwerk group. The Nettwerk companies
combine to be one of North America's leading privately owned record label,
artist management and publishing organisations. These investments are accounted
for as associated companies.
1.5 Consumer division
The Consumer division contains three business units: Music and Media Solutions
Group Limited, (MMSG), which publishes The Fly magazine and manages the Group's
digital services; Music and Media Solutions Limited (MMS), which provides
marketing services, and the Campus Group, a specialist provider of
student-related marketing services.
+-------------------------+------------------+--+----------+--+-----------+--+----------+
| Table 3 | Consumer division |
+-------------------------+-------------------------------------------------------------+
| | Year ended 31 July |
+-------------------------------------------------------------+-------------------------+
| | | | | Restated |
+----------------------------------------------------------+--+-----------+--+----------+
| | | 2009 | | 2008 |
+----------------------------------------------------------+--+-----------+--+----------+
| | | Total | | Total |
+----------------------------------------------------------+--+-----------+--+----------+
| | | GBP000 | | GBP000 |
+----------------------------------------------------------+--+-----------+--+----------+
| | | | | |
+----------------------------------------------------------+--+-----------+--+----------+
| Revenue | | 2,063 | | 2,022 |
+----------------------------------------------------------+--+-----------+--+----------+
| Operating profit before exceptional items, depreciation | | 345 | | 130 |
| and amortisation | | | | |
+----------------------------------------------------------+--+-----------+--+----------+
| Depreciation and amortization | | (26) | | (26) |
+----------------------------------------------------------+--+-----------+--+----------+
| Contribution | | 319 | | 104 |
+----------------------------------------------------------+--+-----------+--+----------+
| | | | | |
+----------------------------------------------------------+--+-----------+--+----------+
| | | | | 2009 | | 2008 |
+--------------------------------------------+--+----------+--+-----------+--+----------+
| | | | | GBP000 | | GBP000 |
+--------------------------------------------+--+----------+--+-----------+--+----------+
| | | | | | | |
+--------------------------------------------+--+----------+--+-----------+--+----------+
| Net assets of division | | | | 1,832 | | 390 |
+-------------------------+------------------+--+----------+--+-----------+--+----------+
The Fly publication made a small loss in the year due to reduced levels of
sponsorship in a challenging market.
Music and Media Solutions Ltd works in a strategic fashion with clients to
develop bespoke campaigns around music that reach the growing number of opinion
forming youth audiences. The business had another successful period of activity
bringing a higher level of sponsorship activities to the Live division venues
and events than they have previously enjoyed.
The Get Real Marketing Company Limited had a more difficult year but remains
profitable in what has been a challenging environment for a marketing services
company.
1.6 Overall results
+----------+----------------------+----------------------+--+----------+--+-----------+
| Table 4 | Summary - reconciliation to full year |
+---------------------------------+---------------------------------------------------+
| | | Year ended 31 July |
+--------------------------------------------------------+--+-------------------------+
| | | | | Restated |
+--------------------------------------------------------+--+----------+--+-----------+
| | | 2009 | | 2008 |
+--------------------------------------------------------+--+----------+--+-----------+
| | | Total | | Total |
+--------------------------------------------------------+--+----------+--+-----------+
| | | GBP000 | | GBP000 |
+--------------------------------------------------------+--+----------+--+-----------+
| Revenue | | | | |
+--------------------------------------------------------+--+----------+--+-----------+
| | Live Music | | 30,783 | | 28,180 |
+----------+---------------------------------------------+--+----------+--+-----------+
| | Artist Services | | 5,122 | | 3,220 |
+----------+---------------------------------------------+--+----------+--+-----------+
| | Consumer | | 2,063 | | 2,022 |
+----------+---------------------------------------------+--+----------+--+-----------+
| | Central | | 220 | | 89 |
+----------+---------------------------------------------+--+----------+--+-----------+
| | | | 38,188 | | 33,511 |
+----------+---------------------------------------------+--+----------+--+-----------+
| Operating profit before exceptional items, | | | | |
| depreciation and amortisation | | | | |
+--------------------------------------------------------+--+----------+--+-----------+
| | Live Music | | 4,049 | | 3,700 |
+----------+---------------------------------------------+--+----------+--+-----------+
| | Artist Services | | 1,105 | | 999 |
+----------+---------------------------------------------+--+----------+--+-----------+
| | Consumer | | 345 | | 130 |
+----------+---------------------------------------------+--+----------+--+-----------+
| | | | 5,499 | | 4,829 |
+----------+---------------------------------------------+--+----------+--+-----------+
| | Central costs | | (1,923) | | (1,317) |
+----------+---------------------------------------------+--+----------+--+-----------+
| Operating profit before exceptional items, | | 3,576 | | 3,512 |
| depreciation and amortisation | | | | |
+----------+----------------------+----------------------+--+----------+--+-----------+
1.7 Position as at the year end
At the year end, cash at bank and in hand stood at GBP7.15 m (2008: GBP2.98 m)
and the Group's consolidated net assets were GBP29.59m (2008: GBP23.53m). The
increase was a result of disposing of the live venues to the MFG joint venture
with HMV and the resulting reduction in bank debt.
1.8 Dividends
No dividends have been paid or are being proposed (2008: nil).
1.9 Developments since the year end
Further to MAMA's announcement of 14 January 2009 of its joint venture with HMV,
the Group received cash of GBP4.5m from Mean Fiddler Group Limited. The cash was
made available by a new banking facility entered into by MFG with Lloyds Banking
Group (Lloyds).
MAMA Group Plc
CONSOLIDATED INCOME STATEMENT
for the year ended 31 July 2009
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | 2009 | | 2008 | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | Notes | | GBP000 | | GBP000 | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| CONTINUING OPERATIONS | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Revenue | | | 38,188 | | 33,511 | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Cost of sales | | | (21,364) | | (16,516) | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| GROSS PROFIT | | | 16,824 | | 16,995 | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Administrative expenses | | | (16,394) | | (16,038) | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Operating profit before | | | 3,576 | | 3,512 | |
| exceptional items | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| depreciation AND AMORTISATION | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Exceptional write offs and | | | (1,151) | | (721) | |
| expenses | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Equity settled share based | | | (40) | | (48) | |
| payments | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Depreciation and amortisation | | | (1,416) | | (901) | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Acquisition costs | | | (190) | | - | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Closed venues | | | (349) | | (885) | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | (3,146) | | (2,555) | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| OPERATING PROFIT | | | 430 | | 957 | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Profit on disposal of subsidiary | | | 6,038 | | - | |
| undertakings | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Share of loss in associated | | | (437) | | (359) | |
| undertakings | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Finance costs | | | (1,401) | | (819) | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Finance income | | | 136 | | 270 | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| PROFIT BEFORE TAX | | | 4,766 | | 49 | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Tax | | | (567) | | (269) | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| PROFIT/(LOSS) FOR THE YEAR | | | 4,199 | | (220) | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Attributable to: | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Equity holders of the parent | | | 2,929 | | (1,270) | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Non controlling interests | | | 1,270 | | 1,050 | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | 4,199 | | (220) | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Earnings/(loss) per share | | | | | | |
| expressed | | | | | | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Basic | 2 | | 0.37p | | (0.19p) | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
| Diluted | 2 | | 0.37p | | (0.19p) | |
+-----------------------------------+----------+--------------+----------+--+----------+--+
MAMA Group Plc
CONSOLIDATED BALANCE SHEET
31 July 2009
+--------------------------------+-------------+--------------+----------+--+----------+
| | | | 2009 | | 2008 |
+--------------------------------+-------------+--------------+----------+--+----------+
| | Notes | | GBP000 | | GBP000 |
+--------------------------------+-------------+--------------+----------+--+----------+
| ASSETS | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Non-current assets | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Goodwill | 3 | | 14,749 | | 14,567 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Intangible assets | | | 2,621 | | 2,559 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Property, plant and equipment | | | 5,914 | | 9,783 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Investments in associates | | | 2,660 | | 3,040 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Other investments | | | 429 | | 360 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Property lease premiums | | | 6,116 | | 10,233 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Deferred taxation | | | 42 | | 29 |
+--------------------------------+-------------+--------------+----------+--+----------+
| | | | 32,531 | | 40,571 |
+--------------------------------+-------------+--------------+----------+--+----------+
| | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Current assets | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Inventories | | | 265 | | 315 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Trade and other receivables | | | 8,228 | | 7,008 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Cash and equivalents | | | 7,151 | | 2,981 |
+--------------------------------+-------------+--------------+----------+--+----------+
| | | | 15,644 | | 10,304 |
+--------------------------------+-------------+--------------+----------+--+----------+
| | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Liabilities | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Current liabilities | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Trade and other payables | | | 13,927 | | 14,269 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Financial liabilities - | | | | | |
| borrowings | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Interest bearing loans and | | | 2,528 | | 899 |
| borrowings | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Corporation tax liabilities | | | 838 | | 476 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Provisions | | | 154 | | 488 |
+--------------------------------+-------------+--------------+----------+--+----------+
| | | | 17,447 | | 16,132 |
+--------------------------------+-------------+--------------+----------+--+----------+
| | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Net current liabilities | | | (1,803) | | (5,828) |
+--------------------------------+-------------+--------------+----------+--+----------+
| | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Non-current liabilities | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Financial liabilities - | | | | | |
| borrowings | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Interest bearing loans and | | | 27 | | 10,655 |
| borrowings | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Deferred taxation | | | 480 | | 303 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Provisions | | | 634 | | 255 |
+--------------------------------+-------------+--------------+----------+--+----------+
| | | | 1,141 | | 11,213 |
+--------------------------------+-------------+--------------+----------+--+----------+
| | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| NET ASSETS | | | 29,587 | | 23,530 |
+--------------------------------+-------------+--------------+----------+--+----------+
| | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Shareholders' Equity | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Called up share capital | 4 | | 40,395 | | 37,645 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Share capital to be issued | | | 26 | | 26 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Share premium | | | 2,346 | | 2,346 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Merger reserve | | | 546 | | 546 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Reverse acquisition accounting | | | (13,649) | | (13,649) |
| reserve | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Retained earnings | | | (656) | | (3,806) |
+--------------------------------+-------------+--------------+----------+--+----------+
| Equity attributable to equity | | | 29,008 | | 23,108 |
| holders of the parent | | | | | |
+--------------------------------+-------------+--------------+----------+--+----------+
| Non controlling Interest | | | 579 | | 422 |
+--------------------------------+-------------+--------------+----------+--+----------+
| Total equity | | | 29,587 | | 23,530 |
+--------------------------------+-------------+--------------+----------+--+----------+
MAMA Group Plc
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 July 2009
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| | Share | Share | Share | Merger | Reverse | Retained | Total | Non | Total |
| | capital | capital | premium | reserve | acquisition | earnings | | controlling | equity |
| | | to be | account | | accounting | | | interests | |
| | | issued | | | reserve | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Balance at | 32,491 | 26 | 2,154 | 546 | (13,649) | (2,672) | 18,896 | 140 | 19,036 |
| 1 August | | | | | | | | | |
| 2007 | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| (Loss)/profit | - | - | - | - | - | (1,270) | (1,270) | 1,050 | (220) |
| for the year | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Hedge | - | - | - | - | - | (181) | (181) | - | (181) |
| liability | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Total | | | | | | (1,451) | (1,451) | 1,050 | (401) |
| recognised | | | | | | | | | |
| income & | | | | | | | | | |
| expense | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Shares | 5,154 | - | 192 | - | - | - | 5,346 | - | 5,346 |
| issued | | | | | | | | | |
| during the | | | | | | | | | |
| period | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Share | - | - | - | - | - | 317 | 317 | - | 317 |
| option | | | | | | | | | |
| charge | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Payments | - | - | - | - | - | - | - | (1,119) | (1,119) |
| to Non | | | | | | | | | |
| controlling | | | | | | | | | |
| interests | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Non | - | - | - | - | - | - | - | 351 | 351 |
| controlling | | | | | | | | | |
| interests | | | | | | | | | |
| acquired | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Balance at | 37,645 | 26 | 2,346 | 546 | (13,649) | (3,806) | 23,108 | 422 | 23,530 |
| 31 July | | | | | | | | | |
| 2008 | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Loss on | | | | | | (651) | (651) | - | (651) |
| cashflow | | | | | | | | | |
| hedge | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Profit for | - | - | - | - | - | 2,929 | 2,929 | 1,270 | 4,199 |
| the year | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Total | | | | | | 2,278 | 2,278 | 1,270 | 3,548 |
| recognised | | | | | | | | | |
| income and | | | | | | | | | |
| expense | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Shares | 2,750 | - | - | - | - | - | 2,750 | - | 2,750 |
| issued | | | | | | | | | |
| during the | | | | | | | | | |
| period | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Share | - | - | - | - | - | 40 | 40 | - | 40 |
| option | | | | | | | | | |
| charge | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Payments | - | - | - | - | - | - | - | (936) | (936) |
| to Non | | | | | | | | | |
| controlling | | | | | | | | | |
| interests | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Non | - | - | - | - | - | - | - | 401 | 401 |
| controlling | | | | | | | | | |
| interests | | | | | | | | | |
| acquired | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Non | - | - | - | - | - | - | - | (578) | (578) |
| controlling | | | | | | | | | |
| interests | | | | | | | | | |
| disposed | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Cumulative | | | | | | 832 | 832 | - | 832 |
| loss on | | | | | | | | | |
| cashflow | | | | | | | | | |
| hedge | | | | | | | | | |
| recycled | | | | | | | | | |
| to income | | | | | | | | | |
| statement | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
| Balance at | 40,395 | 26 | 2,346 | 546 | (13,649) | (656) | 29,008 | 579 | 29,587 |
| 31 July | | | | | | | | | |
| 2009 | | | | | | | | | |
+---------------+-----------+---------+---------+---------+-------------+----------+---------+-------------+---------+
MAMA Group Plc
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 July 2009
+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | 2009 | | 2008 | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| |Notes | | GBP000 | | GBP000 | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Cash flows from operating | | | | | | |
| activities | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Cash generated from operations | 1 | | 4,397 | | 1,499 | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Cash flows from operating | | | 4,397 | | 1,499 | |
| activities | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Cash flows from investing | | | | | | |
| activities | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Purchases of investments | | | - | | (8,493) | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Purchases of other intangible | | | (1,337) | | (112) | |
| assets | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Purchase of property, plant and | | | (4,314) | | (6,441) | |
| equipment | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Purchase of property lease premiums | | | - | | (250) | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Purchase of fixed asset investments | | | (136) | | (1,741) | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Purchase of subsidiaries | | | (650) | | - | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Purchase of associates/joint | 3 | | (441) | | - | |
| ventures | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Interest received | | | 135 | | 269 | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Payments to Non controlling | | | (936) | | (1,119) | |
| interests | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Net proceeds from disposal of | | | 17,958 | | - | |
| subsidiaries | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Net cash acquired on acquisition of | | | 3,044 | | 1,132 | |
| subsidiaries | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Net cash disposed on disposal of | | | (6,088) | | - | |
| subsidiaries | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Cash flows from investing | | | 7,022 | | (16,755) | |
| activities | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Cash flows from financing | | | | | | |
| activities | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Net proceeds from Bank and other | | | 5,251 | | 12,000 | |
| borrowings | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Loan repayments in year | | | (11,529) | | (347) | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Loan inception fees | | | - | | (180) | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Interest paid | | | (724) | | (585) | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| New finance leases | | | 63 | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Finance lease payments | | | (70) | | (49) | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Share issue | | | - | | 3,250 | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Corporation tax paid | | | (240) | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Costs paid on issue of ordinary | | | - | | - | |
| shares | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Cash flows from financing | | | (7,249) | | 14,089 | |
| activities | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Increase/(decrease) in cash and | | | 4,170 | | (1,167) | |
| cash equivalents | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Net cash and cash equivalents at | 2 | | 2,981 | | 4,148 | |
| beginning of the year | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
| Net cash and cash equivalents at | 2 | | 7,151 | | 2,981 | |
| end of the year | | | | | | |
+-------------------------------------+-------+--+-------------+--+-------------+--+
MAMA Group Plc
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 July 2009
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | 2009 | | 2008 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | |Notes | | GBP000 | | GBP000 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| 1 | Reconciliation of Profit before | | | | | | |
| | income tax to cash generated from | | | | | | |
| | operations | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Profit before income tax | | | 4,766 | | 49 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Depreciation charges | | | 1,076 | | 684 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Amortisation of intangible fixed | | | 340 | | 217 | |
| | assets | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Impairment charges | | | - | | 286 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Amortisation of property lease | | | 156 | | 188 | |
| | premiums | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Amortisation of term loan fees | | | 13 | | 27 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Exceptional impairments | | | 237 | | 330 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Share based payment expense | | | 40 | | 48 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Exceptional write offs | | | 354 | | - | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Share of loss of associated | | | 437 | | 359 | |
| | companies | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Profit on sale of subsidiaries | | | (6,038) | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Finance costs | | | 1,401 | | 819 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Finance income | | | (136) | | (270) | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | 2,646 | | 2,737 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Decrease in inventories | | | (48) | | (79) | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Increase in trade and other | | | (2,104) | | (1,570) | |
| | receivables | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Increase in trade and other | | | 3,858 | | 262 | |
| | payables | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Increase in provisions | | | 45 | | 149 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Cash generated from operations | | | 4,397 | | 1,499 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| 2 | Cash and Cash equivalents | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | The amounts disclosed on the cash | | | | | | |
| | flow in respect of cash and cash | | | | | | |
| | equivalents are in respect of these | | | | | | |
| | balance sheet amounts: | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | 2009 | | 2008 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | GBP000 | | GBP000 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Year ended 31 July 2009 | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Cash and cash equivalents | | | 7,151 | | 2,981 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | 2008 | | 2007 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | GBP000 | | GBP000 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Year ended 31 July 2008 | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | Cash and cash equivalents | | | 2,981 | | 4,148 | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| | | | | | | | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
| 3 | Total disposal consideration comprising cash and cash equivalents was | |
| | GBP18,245,000 (2008: nil) | |
+---+-------------------------------------+-------+--+-------------+--+-------------+--+
MAMA Group Plc
NOTES
for the year ended 31 July 2008
1.BASIS OF PREPARATION
The financial information contained in this preliminary announcement does not
constitute the company's statutory accounts for 31 July 2009. Statutory accounts
for the years ended 31 July 2009 and 31 July 2008 have been reported on by the
Independent Auditors. The Independent Auditors' Report on the Annual Report and
Financial Statements for 2008 was qualified, by way of limitation of scope, and
did not contain a statement under 237(2) or 237(3) of the Companies Act 1985.
The Independent Auditors' Report on the Annual Report and Financial Statements
for 2009 is unqualified, does not draw attention to any matters by way of
emphasis, and does not contain a statement under 498(2) or 498(3) of the
Companies Act 2006.
Statutory accounts for the year ended 31 July 2008 have been filed with the
Registrar of Companies. The statutory accounts for the year ended 31 July 2009
will be delivered to the Registrar in due course.
The financial information has been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European Union, and with
those parts of the Companies Act 1985 as applicable to companies reporting under
IFRS.
2.EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the profit attributable to
ordinary shareholders of GBP2,929,000 (2008: loss of GBP1,270,000) by the
weighted average number of ordinary shares outstanding during the period of
786,191,682 (2008: 677,213,789).
Diluted earnings per share is calculated using the weighted average number of
shares adjusted to assume the conversion of all dilutive potential ordinary
shares. The diluted earnings per share for the year ended 31 July 2009 and the
year ended 31 July 2008 is identical to the basic earnings per share as the
options are not dilutive for either period.
3.GOODWILL
+------------------------------------------------+------------+------------+
| | 2009 | 2008 |
+------------------------------------------------+------------+------------+
| | GBP000 | GBP000 |
+------------------------------------------------+------------+------------+
| At 1 August | 14,567 | 7,230 |
+------------------------------------------------+------------+------------+
| Additions | 10,003 | 7,667 |
+------------------------------------------------+------------+------------+
| Impairments during the year | (170) | (330) |
+------------------------------------------------+------------+------------+
| Disposals | 1,081 | - |
+------------------------------------------------+------------+------------+
| At 31 July | 14,749 | 14,567 |
+------------------------------------------------+------------+------------+
Additions during the year can be broken down as follows:
+------------------------------------------------+------------+
| | Goodwill |
+------------------------------------------------+------------+
| | GBP000 |
+------------------------------------------------+------------+
| Mean Fiddler Group Limited | 8,537 |
+------------------------------------------------+------------+
| Angel Music Group Limited | 385 |
+------------------------------------------------+------------+
| Heaven (London) Limited | 1,081 |
+------------------------------------------------+------------+
| Total | 8,922 |
+------------------------------------------------+------------+
An impairment has been made for the goodwill in respect of Pollination Music
Group Limited. Goodwill on acquisition of this company was GBP470,000 however
value in use calculations indicate that the recoverable amount is below the
carrying amount. A provision of GBP170,000 (2008: GBP300,000) has been made to
reduce the goodwill to the expected recoverable amount.
On 22 September 2009 the Company acquired 100% of the share capital of Heaven
(London) Limited and Heaven (London) Limited acquired the business and assets of
the venue (Heaven) giving rise to the goodwill as disclosed above.
Mean Fiddler Group Limited - Joint venture with hmv group plc
On 14 January 2009, the Group entered into a joint venture arrangement with HMV
group plc and acquired 50% of the issued capital of the joint venture company,
Mean Fiddler Group Limited. In calculating the goodwill arising on acquisition,
the fair value of net assets of the above subsidiaries have been assessed and
adjustments from book value have been made where necessary. These adjustments
have been summarised in the following table:
+-------------------------+-----------+----------+----------+-------------+----------+
| | | | Net Book | Fair | Fair |
| | | | value | value | value of |
| | | | | adjustments | assets |
| | | | | | acquired |
+-------------------------+-----------+----------+----------+-------------+----------+
| | | | GBP000 | GBP000 | GBP000 |
+-------------------------+-----------+----------+----------+-------------+----------+
| Non Current Assets | | | | | |
+-------------------------+-----------+----------+----------+-------------+----------+
| Intangible assets (note | | | 57 | 252 | 309 |
| A) | | | | | |
+-------------------------+-----------+----------+----------+-------------+----------+
| Property, plant and | | | 5,041 | (723) | 4,318 |
| equipment (note B) | | | | | |
+-------------------------+-----------+----------+----------+-------------+----------+
| Property lease premiums | | | 5,072 | 1,200 | 6,272 |
+-------------------------+-----------+----------+----------+-------------+----------+
| | | | 10,170 | 729 | 10,899 |
+-------------------------+-----------+----------+----------+-------------+----------+
| Current Assets | | | | | |
+-------------------------+-----------+----------+----------+-------------+----------+
| Stock | | | 98 | - | 98 |
+-------------------------+-----------+----------+----------+-------------+----------+
| Trade and other | | | 530 | - | 530 |
| receivables | | | | | |
+-------------------------+-----------+----------+----------+-------------+----------+
| Cash at bank and in | | | 3,044 | - | 3,044 |
| hand | | | | | |
+-------------------------+-----------+----------+----------+-------------+----------+
| Total assets | | | 13,842 | 729 | 14,571 |
+-------------------------+-----------+----------+----------+-------------+----------+
| | | | | | |
+-------------------------+-----------+----------+----------+-------------+----------+
| Liabilities | | | | | |
+-------------------------+-----------+----------+----------+-------------+----------+
| Current (note C) | | | (3,987) | (204) | (4191) |
+-------------------------+-----------+----------+----------+-------------+----------+
| | | | | | |
+-------------------------+-----------+----------+----------+-------------+----------+
| Net Assets | | | 9,855 | 525 | 10,380 |
+-------------------------+-----------+----------+----------+-------------+----------+
| | | | | | |
+-------------------------+-----------+----------+----------+-------------+----------+
| Less: Non controlling | | | | | (672) |
| interest | | | | | |
+-------------------------+-----------+----------+----------+-------------+----------+
| Share of assets | | | | | 9,708 |
| acquired | | | | | |
+-------------------------+-----------+----------+----------+-------------+----------+
| | | | | | |
+-------------------------+-----------+----------+----------+-------------+----------+
| | | | | | |
+-------------------------+-----------+----------+----------+-------------+----------+
| Consideration | | | | | 18,245 |
+-------------------------+-----------+----------+----------+-------------+----------+
| Goodwill | | | | | 8,537 |
+-------------------------+-----------+----------+----------+-------------+----------+
Note A: The recognition of intangibles relate to G-A-Y and Mean Fiddler brand
names.
Note B: The fair value adjustment of property, plant and equipment relates to
the assessed fair value of freehold and leasehold property on acquisition. The
fair value adjustment in respect of the property lease premiums relate to the
assessed fair value of lease premiums on long and short leasehold properties on
acquisition.
Note C: A deferred tax liability of GBP204,000 has been provided against the
increase in tangible and intangible assets at 28%.
4.CALLED UP SHARE CAPITAL
+-------------------------------+---------------+---------------+------------+------------+
| | Number | Number | 2009 | 2008 |
+-------------------------------+---------------+---------------+------------+------------+
| | 2009 | 2008 | GBP000 | GBP000 |
+-------------------------------+---------------+---------------+------------+------------+
| Authorised | | | | |
+-------------------------------+---------------+---------------+------------+------------+
| Ordinary shares of 5p each | 2,000,000,000 | 2,000,000,000 | 100,000 | 100,000 |
+-------------------------------+---------------+---------------+------------+------------+
| | | | | |
+-------------------------------+---------------+---------------+------------+------------+
| | Number | Number | 2008 | 2007 |
+-------------------------------+---------------+---------------+------------+------------+
| | 2008 | 2007 | GBP000 | GBP000 |
+-------------------------------+---------------+---------------+------------+------------+
| Allotted, called up and fully | | | | |
| paid | | | | |
+-------------------------------+---------------+---------------+------------+------------+
| As at 1 August | 752,890,312 | 649,314,864 | 37,645 | 32,491 |
+-------------------------------+---------------+---------------+------------+------------+
| Share issue - placing | - | 65,000,000 | - | 3,250 |
+-------------------------------+---------------+---------------+------------+------------+
| Share issue - Nettwerk | - | 25,575,448 | | 1,279 |
+-------------------------------+---------------+---------------+------------+------------+
| Share issue - Angel Music | - | 12,500,000 | | 625 |
| Group | | | | |
+-------------------------------+---------------+---------------+------------+------------+
| Share issue - Pacific S.A.R.L | 55,000,000 | - | 2,750 | - |
+-------------------------------+---------------+---------------+------------+------------+
| At 31 July | 807,890,312 | 752,890,312 | 40,395 | 37,645 |
+-------------------------------+---------------+---------------+------------+------------+
| | | | | |
+-------------------------------+---------------+---------------+------------+------------+
On 23 December 2008, the Company issued 55,000,000 new ordinary shares at 5
pence in settlement of loan notes issued during the year.
The market price of the Company's shares at 31 July 2009 was 4.5 pence. During
the year the highest market price of the Company's shares was 5.73 pence and the
lowest was 4 pence. The average market price during the year was 4.84 pence.
5.POST BALANCE SHEET EVENTS
Joint venture with HMV Group Plc
On 13 November 2009 the company received GBP4.5m in cash following the debt
raising in the joint venture with HMV Group Plc (HMV).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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