RNS Number:7884I
Ulster Television PLC
17 March 2003
17 March 2003
ULSTER TELEVISION plc
("UTV" or "the Company" or "the Group")
Preliminary Results
for the year ended 31 December 2002
Ulster Television plc, the multimedia group which
broadcasts television and radio and provides internet
services throughout the island of Ireland, announces its
preliminary results for the year to 31 December 2002.
Summary of Results:-
* Group turnover increased by 10% to #47.3m (2001:#43.0m).
* Television advertising revenue continued to
outperform other ITV companies (an increase of 4.7%
compared to a decrease of 1% for ITV).
* Group operating profit before goodwill amortisation
increased by 8% to #14.6m (2001: #13.6m) with all sectors
of the business contributing.
* Group profit before tax and goodwill amortisation
increased by 3.7% to #13.9m (2001: #13.4m).
* Television operating profit of #12.3m (2001: #12.4m)
despite an increase in ITV network costs as a result of
UTV's rise in advertising revenue compared to the ITV
network.
* Radio operating profit of #2.0m (2001: #1.4m).
* Internet operating profit of #0.3m (2001: #0.2m loss).
* Adjusted earnings per share up 3.5% to 19.01p (2001: 18.37p).
* Net cash inflow from operating activities of #18.0m
(2001: #12.7m). Net debt at 31 December 2002 of #27.4m
(2001: #10.7m) with increase primarily due to #21.5m of
acquisitions .
* Recommended final dividend of 5.65p making a total
for the year of 9.6p (2001: 9.2p) an increase of 4.3%.
Other highlights :-
* Acquisition of Treaty Radio (Limerick) and City
Broadcasting (Dublin) combined with County Media (Cork)
to create a major radio group in the Republic of Ireland.
Key dates :-
* 28 March 2003: record date for payment of dividends
* 9 June 2003: payment of dividends
Commenting on the results and prospects John McCann,
Group Chief Executive of UTV, said "Despite another
difficult year for the media industry, the UTV group
continued to make excellent progress and increased its
operating profits significantly in a challenging economic
environment."
For Further Information :-
Ulster Television plc
John McCann, Group Chief Executive 028 9026 2201
Jim Downey, Group Finance Director 028 9026 2176
Weber Shandwick Square Mile
Chris Lynch/Becky Haywood 020 7067 0700
Chairman's Statement
Introduction
In another difficult year for the media industry, your
company continued to make good progress. Our television
advertising revenues again significantly outperformed
those of ITV, recording a new record share for the third
successive year. We acquired two radio stations in the
key markets of Limerick and Dublin which, along with our
radio station in Cork, give us a leading position in the
Irish commercial radio marketplace. UTV Internet moved
firmly into profit, establishing itself as a growing
force in the provision of internet services throughout
Ireland.
Results and Dividend
Group operating profit before goodwill increased by 8% to
#14.6m (2001: #13.6m) and adjusted earnings per share
improved to 19.0p (2001: 18.4p). In the context of the
market conditions experienced in 2002, this is an
excellent performance and your Board, therefore, is able
to recommend a 4.6% increase in final dividend to 5.65p
(2001: 5.40p). Together with the interim dividend
already paid of 3.95p (2001: 3.80p), this amounts to a
total dividend for the year of 9.60p (2001: 9.20p),
representing a 4.3% increase over the previous year. The
final dividend will be paid on 9 June 2003 to
shareholders on the Register at the close of business on
28 March 2003. The Annual General Meeting will be held
on 6 June 2003.
Television
For the third successive year, our television operations
significantly outperformed the ITV network. Our
advertising revenue increase of 4.7% year on year
compared to an average decline in ITV advertising
revenues of 1%, giving us a record 2.24% (2001: 2.12%)
share of the market. The pattern of this increase was
weighted towards the second half which recorded a 9%
improvement in advertising revenues following a flat
first half.
Network programme costs, which were based upon another
record share of advertising revenue in 2001, were up by
#1.2m in the year but continuing cost control ensured
that other television operating costs increased by only
#0.3m. As a result, television operating profits for the
year recorded only a modest reduction to #12.3m (2001:
#12.4m).
Radio
The results of our radio station in Cork, County Media,
have been consolidated for the full 12 month period,
compared to the part year contribution in our 2001
accounts. Treaty Radio in Limerick has been consolidated
from its date of acquisition, 24 June 2002. No account
has been taken of the results of City Broadcasting in
Dublin, which was acquired on 20 December 2002.
County Media experienced a slow start to the year with
growth in local advertising budgets being more than
offset by cutbacks in national advertising budgets,
producing a net 5% reduction in total advertising revenue
in the first half. A return to growth of 2.3% in the
seasonally stronger second half reduced the overall
decline in the radio station's revenues for the year to
just 1.5% enabling County Media to achieve an operating
profit for the year to 31 December 2002 of #1.8m, (2001:
#1.4m in 9 months to 31 December 2001).
Treaty Radio contributed operating profits of #0.2m in
the 6 months to 31 December 2002 on advertising revenues
which were lower by 4% than in the comparable period in
2001.
New Media
Our new media business recorded an operating profit in
the year of #0.3m (2001: loss of #0.2m). This was
achieved through the development of a range of new
products both in Northern Ireland and the Republic of
Ireland including broadband and the first all-Ireland
flat-rate internet service, UTVip. These new products
drove a 44% increase in turnover in the year. Tight cost
control and improved terms from our telecommunications
providers led to an increase in cost of sales of only 21%
and an increase in operating costs of only 7%.
Our commitment to expansion of consumer choice across the
island of Ireland, combined with the quality and
reliability of our services and content led to UTV
Internet winning the 'Digital Media Service Provider of
the Year' award at the Digital Media Intelligence Awards
in January 2003.
Prospects
I reported in our Interim Statement that, despite four
successive months of growth in television advertising it
was difficult to predict with any confidence an end to
the recession which has gripped the global media industry
over the past two years. That lack of confidence
continues to permeate the global economy causing many
advertisers to be reluctant to commit to increased
marketing expenditure, not least because of the threat of
war in Iraq, and making it impossible to accurately
forecast advertising revenues.
Nevertheless, there are indications, albeit fragile, that
the total television market will enjoy some growth in
2003 and that that growth will eventually filter down
into an ITV which has emerged from 2002 with a
determination not just to halt a decline in its ratings
performance but to re-invigorate its schedule. While
ITV's improved audience figures have not yet been
rewarded with sustained revenue growth your company's
outperformance of ITV in each of the last three years has
continued into the first quarter of 2003.
With Easter falling in March last year, some loss of
revenue from March into April this year was to be
anticipated but, despite this, we expect to record a 2%
increase in advertising revenue in the first quarter of
2003 compared to a 5% decline for ITV. In uncertain
market conditions, our objective will be to continue to
improve our share.
In radio, the acquisition of City Broadcasting in Dublin
combines a presence in the capital city with the market
leading positions of our stations in Cork and Limerick.
While the radio market in Ireland is not immune to the
vagaries of the global economy, nevertheless our ability
to access these key markets and to offer advertisers both
local and national propositions is an inherent strength
within our Irish radio strategy and provides a solid
foundation for future growth. In the three months to 31
March 2003, our radio advertising revenues on a like for
like basis are expected to be in line with last year.
Our internet service has demonstrated its ability to
identify opportunities for the development of products
which expand consumer choice and leverage opportunities
in the internet and telecommunications market across
Ireland. Further growth in our range of products will
continue to drive increases in both turnover and
profitability.
People
In the current difficult market conditions, it is
pleasing to be able to report further progress by your
company. Outperformance of our peers and continued
profit growth are only possible with the commitment and
dedication of your Board, management and staff. On your
behalf, I wish to thank them all for their continuing
endeavours.
John B McGuckian
Chairman
17 March 2003
Operating and Financial Review
Turnover
With more than 95% of our turnover deriving from a
depressed advertising marketplace, our key objective of
continuing to grow our business throughout 2002 was
always going to be challenging. The challenge was
successfully met in television where the advantages of
having relatively strong ratings and operating in three
different marketplaces combined to generate a further
outperformance of our ITV colleagues. The resulting
improvement in our market share to 2.24% may appear
modest in relation to the 2.12% achieved in 2001 but was
equivalent to advertising revenue of #2.0m in 2002. This
strong advertising revenue performance helped to lift
total television turnover by 4% to #39.2m (2001: #37.7m).
Radio turnover increased by 58% to #6.3m (2001: #4.0m)
reflecting the full year contribution of County Media,
which was acquired on 12 April 2001, and the half year
contribution of Treaty Radio which was acquired on 24
June 2002. The Irish radio advertising revenue
marketplace experienced similar conditions to that in
television and, on a like for like basis, advertising
revenues in our radio stations in Cork and Limerick were
slightly down on the comparable periods. However, as
with television, leadership in ratings and access to both
local and national advertising markets mitigated against
the impact of the downturn in the global marketplace.
Turnover in our internet business grew strongly by 46% to
#2.0m (2001: #1.4m). Much of this growth derived from
the introduction of new products, particularly the launch
of the first all-Ireland flat-rate internet service in
September 2002.
Costs
With the continuing uncertainty in the advertising
marketplace, we have remained focused on the tight
control of costs. The major feature of our cost
structure is the cost of network programming within our
television business. We are supportive of ITV's
determination to re-invigorate the network schedule and
to commit additional resources to help achieve that
objective. This does put some upward pressure on our
cost base but the main factor in driving up our network
programme costs is our increasing share of ITV's
advertising revenue upon which our share of network costs
is based. This latter share lags our actual share of ITV
revenue for one year, so that the costs for 2002 derive
from the share of 2001. Our advertising revenue
outperformance in 2001 drove up our programme costs in
2002 by #1.2m and our further outperformance in 2002 will
have a similar impact on our costs in 2003. With this
exception, total cost increases across the Group remained
well within notional inflation levels.
Financial Results
Group operating profit before goodwill increased by 8% to
#14.6m (2001: #13.6m). Television operating profit was
slightly down at #12.3m (2001: #12.4m), radio contributed
operating profits of #2.0m (2001: #1.4m) and internet
recorded operating profits of #0.3m (2001: loss of
#0.2m). After deducting net interest payable of #0.6m
(2001: #0.1m) and a small loss of #0.04m (2001: #nil) in
respect of joint venture activities, group profit before
tax and amortisation of goodwill was #13.9m (2001:
#13.4m).
Earnings per share before goodwill amortisation increased
by 3.5% to 19.0p (2001: 18.4p). This was marginally
lower than the increase of 3.7% in the adjusted pre tax
profit and reflected the slightly higher effective tax
rate (pre goodwill) of 28.3% (2002: 28.2%).
The underlying strength of all our businesses is
reflected in the 42% increase in the net cash inflow from
operating activities to #18.0m (2001: #12.7m). During
the year we spent #21.5m in acquiring Treaty Radio, City
Broadcasting and a 50% stake in Bocom, the overall effect
of which was to increase the net debt at year end to
#27.4m (2001: #10.7m). This net debt position at 31
December 2002 represented 1.7 times EBITDA (2001: 0.7
times).
Pensions
Based upon a valuation at 30 June 1999, the company has
not had to make pension contributions for the past
three years and no charge has been made in the
accounts for the year. A valuation at 30 June 2002 is
currently in preparation and it is likely that the
surplus in the fund will have been extinguished, given
the scale of the fall of the stockmarket since the
earlier valuation. In anticipation of this, we closed
the pension scheme to all new entrants from 21 August
2002 and entered into consultation with staff
representatives to reduce the benefits accruing to
existing members under the scheme. Upon completion of
this consultation process, and with the introduction of a
defined contribution scheme for new entrants, the company
will re-commence pension contributions in 2003.
Television
During the year, ITV made strenuous efforts to halt the
decline in viewership, investing an additional #25m in
network programmes in the second half of 2002, bringing
the total for the year to #775m. This enhanced
investment has been maintained into 2003 with the
projected network budget for this year currently at
#836m. There are encouraging signs that the renewed
focus on programming is beginning to bear fruit with
increased ITV audiences being recorded in the early weeks
of 2003 across all regions.
In the UTV region, viewers can access four terrestrial
channels from the Republic of Ireland as well as the
broad range of channels commonly available on satellite
and cable systems, making the region the most competitive
television marketplace in the UK. As a result, peak-time
viewing in Northern Ireland to channels other than the
five UK terrestrial channels was significantly higher at
22.2% than in the UK as a whole at 16.1%. Despite this,
UTV continued to enjoy peak-time audience shares in 2002
which, at 34.5%, were considerably ahead of the ITV
average peak-time share of 31.5%. Similarly, UTV's all-
time share for the year at 26.5% was well ahead of the
average ITV all-time share of 23.9%.
UTV had a commanding lead over other channels in the
region, with a peak-time share some 49% greater than BBC
Northern Ireland and 4.4 times that of our nearest
commercial competitor C4. Indeed, UTV's peak-time share
was equal to that of all the other commercial television
channels combined which included not only C4 and Five but
also all the satellite channels and the four Republic of
Ireland based channels.
UTV is also receivable in over 70% of homes in the
Republic of Ireland through a combination of off-air and
cable distribution. In those multi-channel homes, UTV's
peak-time share in 2002 at 14% was second only to RTE1,
the main state broadcasting channel.
Radio
Our radio stations in Cork and Limerick enjoyed market
leading positions throughout the year. The latest Joint
National Listenership Research (JNLR) figures published
in February of 2003 showed that for the year ended 31
December 2002, County Media achieved an impressive 57%
reach (listened yesterday) and a 50% share of the total
listenership in Cork, giving it a commanding lead over
all other radio stations in the region. In Limerick,
Treaty Radio also occupied the top radio position
reaching 55% (listened yesterday) of listeners and
attaining a 31% share of the total listenership. Since
its launch into the competitive Dublin marketplace in
June 2000, City Broadcasting, which we acquired on 20
December 2002, has built up a creditable position and
with a reach and share of 12% and 8% respectively is now
only a few percentage points behind the independent
commercial radio leaders. We are preparing a
comprehensive marketing plan to build further upon this
solid foundation.
Internet
Our new media division developed and distributed
creative, informative and up to the minute content on a
variety of platforms to meet the growing demand for
content outside of the traditional broadcast technologies
of television and radio.
Our flagship website, u.tv, delivered over 25 million
pages of content throughout 2002 and attracted 67% more
visitors than the previous year while our range of
popular websites included support for our local
television programmes. Support for our award winning
news service came from our dedicated team of online
journalists who added over 20,000 separate news, sport
and entertainment stories relevant to our audience across
the island of Ireland.
Every day, u.tv and our radio station websites in Cork
and Limerick delivered a mixture of live television and
radio output, including local information and programme
support, to communities in the immediate broadcast areas
and to an expatriate Irish community throughout the
world.
John McCann
Group Chief Executive
17 March 2003
Ulster Television plc
Group Profit and Loss Account
For the year ended 31 December 2002
2002 2001
(restated)
Notes #'000 #'000
Turnover
Group and share of joint venture's turnover 47,632 42,973
Less : share of joint venture's turnover (338) -
Continuing operations
Ongoing 46,422 42,973
Acquisition 872 -
Group Turnover 2(a) 47,294 42,973
Operating costs (34,979) (30,972)
Operating profit
Continuing operations
Operating profit before goodwill amortisation
- Ongoing 14,373 13,561
- Acquisition 240 -
---------------- ----------------
Group operating profit before goodwill amortisation 14,613 13,561
---------------- ----------------
Goodwill amortisation
- Ongoing (2,036) (1,560)
- Acquisition (262) -
---------------- ----------------
Goodwill amortisation (2,298) (1,560)
---------------- ----------------
Group Operating Profit 2(b) 12,315 12,001
Share of operating loss in joint ventures (42) -
Amortisation of goodwill arising from
acquisition of joint ventures (368) -
---------------- ----------------
Profit on ordinary activities before
interest and taxation 11,905 12,001
Net interest payable (624) (117)
---------------- ----------------
Profit on ordinary activities before taxation 11,281 11,884
Taxation on profit on ordinary activities 3 (3,951) (3,789)
---------------- ----------------
Profit for the financial year 7,330 8,095
Ordinary dividends (5,060) (4,835)
---------------- ----------------
Transfer to reserves 2,270 3,260
================ ================
Ulster Television plc
Group Profit and Loss Account (continued)
For the year ended 31 December 2002
2002 2001
(restated)
Notes
Earnings per share
Diluted 4 13.64p 15.26p
=========== =============
Basic (FRS 14) 4 13.94p 15.41p
=========== =============
Adjusted 4 19.01p 18.37p
=========== =============
Diluted Adjusted 4 18.51p 18.14p
=========== =============
Dividend per share 9.60p 9.20p
=========== =============
Group Statement of Total Recognised Gains and Losses
For the year ended 31 December 2002
2002 2001
(restated)
#'000 #'000
Profit for the financial year excluding
loss of joint ventures 7,414 8,095
Share of joint venture's loss for the year (84) -
------------ ---------------
Profit for the financial year attributable
to members of the parent company 7,330 8,095
Exchange difference on retranslation of
net assets of subsidiary undertakings 1,308 (59)
Exchange difference on loans (475) -
------------ ---------------
Recognised gains and losses for the year 8,163 8,036
===============
Prior year adjustment (as explained in note 1) (216)
------------
Total recognised gains and losses since last annual report 7,947
============
Ulster Television plc
Group Balance Sheet
At 31 December 2002
2002 2001
(restated)
Notes #'000 #'000
Fixed assets
Intangible assets 47,943 27,016
Tangible assets 8,839 7,265
Investments
- Investment in joint ventures
Share of gross assets 668 -
Share of gross liabilities (434) -
-------------- ---------------
234 -
Goodwill arising on acquisition 722 -
-------------- ---------------
956 -
Loan to joint venture 54 -
1,010 -
- Other investments 1 1
-------------- ---------------
57,793 34,282
-------------- ---------------
Current assets
Stocks 2,986 2,670
Debtors 10,375 9,545
Short term cash deposits 4,720 7,471
Cash at bank and in hand 3,860 3,173
-------------- ---------------
21,941 22,859
Creditors: amounts falling due within one year
Creditors (20,037) (12,959)
Debentures 6 - (17,550)
-------------- ---------------
Net current assets/(liabilities) 1,904 (7,650)
-------------- ---------------
Total assets less current liabilities 59,697 26,632
Creditors: amounts falling due after more than one year
Long term loans 7 (29,840) -
Convertible loan notes 8 (3,362) (3,750)
Amounts due for film rights (292) (249)
Provision for liabilities and charges (341) (262)
-------------- ---------------
Net assets 25,862 22,371
============== ===============
Capital and reserves
Called-up equity share capital 2,636 2,627
Share premium account 504 125
Profit and loss account 22,722 19,619
-------------- ---------------
Equity shareholders' funds 9 25,862 22,371
============== ===============
Ulster Television plc
Group Statement of Cash Flows
For the year ended 31 December 2002
2002 2001
Notes #'000 #'000
Net cash inflow from operating activities 10 18,019 12,701
Returns on investments and servicing of finance (730) 119
Taxation paid (4,445) (7,288)
Capital expenditure and financial investment (1,656) (859)
Acquisitions (21,454) (4,512)
Equity dividends paid (4,920) (4,677)
-------------- ---------------
Net cash outflow before use of liquid resources
and financing (15,186) (4,516)
Decrease in cash on deposit 3,091 7,265
Financing 12,742 (2,727)
-------------- ---------------
Increase in cash 647 22
============== ===============
Reconciliation of net cash flow to 2002 2001
movement in net debt #'000 #'000
Increase in cash in the year 647 22
Cash inflow from decrease in cash on deposit (3,091) (7,265)
Cash inflow from increase in loans (31,440) -
Repayment of loans and debentures 18,698 2,727
-------------- ---------------
Change in net debt resulting from cashflows (15,186) (4,516)
Debentures/loan notes issued on acquisitions - (18,031)
Loans acquired on acquisition (715) (2,343)
Conversion of loan notes 388 -
Translation difference (1,234) 85
-------------- ---------------
Movement in net debt in the year (16,747) (24,805)
Net (debt)/funds at 1 January (10,678) 14,127
-------------- ---------------
Net debt at 31 December (27,425) (10,678)
============== ===============
Ulster Television plc
Notes to the Accounts
31 December 2002
1. Basis of preparation
The results for the years ended 31 December 2002 and 31 December
2001 are an abridged extract of the Group's full accounts on
which the auditors have issued unqualified reports. The
Group's full accounts for the year ended 31 December 2001 have
been filed with the Registrar of Companies.
In preparing the financial statements for the current year the
group has adopted Financial Reporting Standard ("FRS") 19,
Deferred Taxation. The adoption of FRS 19 has resulted in a
change in accounting policy for deferred tax. Deferred tax is
accounted for on a full provision basis.
The change in accounting policy has resulted in a prior year
adjustment for both the group and the company. The impact of
FRS 19 is to restate Provisions for Liabilities and Charges
for the year ended 31 December 2001 by #216,000 to #262,000.
The effect of this is a decrease of #11,000 in the profit
after tax for the year ended 31 December 2001 together with a
decrease in the opening reserves at 1 January 2001 of
#205,000.
The financial information contained in this statement does not
constitute full accounts within the meaning of Article 262 of
the Companies (Northern Ireland) Order 1986.
2. Segmental analysis
Turnover is generated principally from the UK and Ireland with all
radio activity generated in the Republic of Ireland. Turnover
and group operating profit on ordinary activities before tax
are analysed as follows:-
2002 2001
Sales to Inter- Sales to Inter-
third segmental Total third segmental Total
parties sales sales parties sales sales
(a) TURNOVER #'000 #'000 #'000 #'000 #'000 #'000
Area of activity
Television 39,028 166 39,194 37,639 51 37,690
Radio 6,284 23 6,307 3,976 - 3,976
Internet 1,982 60 2,042 1,358 60 1,418
------------------------------------------------------------------
Total 47,294 249 47,543 42,973 111 43,084
==================================================================
2002 2001
Operating Operating
profit before Group profit before Group
amortisation Amortisation operating amortisation Amortisation operating
(b) GROUP of goodwill of goodwill profit of goodwill of goodwill profit
OPERATING PROFIT #'000 #'000 #'000 #'000 #'000 #'000
Area of activity
Television 12,263 - 12,263 12,429 - 12,429
Radio 2,049 (1,865) 184 1,365 (1,127) 238
Internet 301 (433) (132) (233) (433) (666)
-----------------------------------------------------------------------------
Total 14,613 (2,298) 12,315 13,561 (1,560) 12,001
=============================================================================
3. Taxation on profit on ordinary activities 2002 2001
#'000 #'000
Current tax :
UK corporation tax on profits for the year 3,686 3,777
Adjustments in respect of previous years (80) (187)
------------ ---------------
3,606 3,590
Foreign tax :
ROI corporation tax on profits for the year 213 188
Adjustments in respect of previous years 25 -
Share of joint venture's current tax 33 -
------------ ---------------
3,877 3,778
Deferred tax :
Origination and reversal of timing differences 74 11
------------ ---------------
3,951 3,789
============ ===============
4.Earnings per share
Basic earnings per share, in accordance with Financial Reporting
Standard No.14 (FRS 14), is calculated on the weighted average
number of shares in issue during the period being 52,588,774
(2001: 52,546,600) and is based on profit for the financial
year after exceptional items and taxation of #7,330,000 (2001:
#8,095,000).
Diluted earnings per share is calculated on 54,707,077 shares
(2001: 54,177,035 shares) reflecting the dilutive potential of
the Convertible Loan Notes (1,588,261 shares (2001:
1,630,435)) and the Share Option Schemes (530,042 shares
(2001: Nil)). The calculation is based on the profit for the
financial year of #7,462,275 (2001: #8,266,500) reflecting an
adjustment for net interest payable on the Convertible Loan
Notes of #132,275 (2000: #171,500).
An adjusted earnings per share has been calculated to exclude the
impact of goodwill amortisation.
2002 2001
(restated)
p p
Diluted Earnings per Share 13.64 15.26
Adjustments:
To reflect the dilutive potential of the
convertible loan notes 0.14 0.15
To reflect the dilutive potential of the
share option schemes 0.16 -
------------ -----------
Basic (FRS 14) Earnings per Share 13.94 15.41
Adjustments:
Goodwill amortisation 5.07 2.96
------------ -----------
Adjusted Earnings per Share 19.01 18.37
Adjustments:
To reflect the dilutive potential of the
convertible loan notes (0.19) (0.23)
To reflect the dilutive potential of the
share option schemes (0.31) -
------------ -----------
Diluted Adjusted Earnings per Share 18.51 18.14
------------ -----------
5.Investments
On 24 June 2002 the Group acquired Treaty Radio Limited, a radio
station based in Limerick in the Republic of Ireland, for a
cash consideration of #15.6m. Treaty Radio Limited
contributed #0.2m to the operating profit of the Group since
the date of acquisition to 31 December 2002.
On 20 December 2002 the Group acquired City Broadcasting Limited,
a radio station based in Dublin in the Republic of Ireland,
for a cash consideration of #15.6m. No amounts have been
recognised in the profit and loss account for the period to
31 December 2002 due to the immaterial effect to the Group
since the date of acquisition.
6.Debentures
On 3 December 2002, following notice given by the Debenture
Holders, all debentures were redeemed along with any
outstanding accrued interest.
7. Loans
2002 2001
#'000 #'000
Amounts falling due:
In one year or less or on demand 2,803 9
In more than one year but not more than two years 5,240 -
In more than two years but not more than five years 24,600 -
------------- -------------
32,643 9
Less included in creditors: amounts 2,803 9
falling due within one year
------------- -------------
29,840 -
============= =============
8.Convertible Loan Notes
In 2000, Convertible loan notes amounting to #3.75m were issued as
part consideration for the acquisition of UTV Internet
Limited and bear interest at base rate plus 0.45%. The loan
notes are convertible into Ordinary Shares of 5p each fully
paid in the Company on a basis of one share for each #2.30 of
nominal value of loan notes.
On 25 September 2002 convertible loan notes amounting to #388,000
were converted into 168,695 Ordinary Shares of 5p each.
9. Reconciliation of shareholders' funds and movement on reserves
Group 2002 2001
(Restated)
#'000 #'000
Opening balance 22,371 19,375
Prior year adjustment (see below) - (205)
------------ -------------
Opening balance restated 22,371 19,170
Conversion of loan notes 388 -
Profit for the year 7,330 8,095
Dividends (5,060) (4,835)
Exchange difference on retranslation of
net assets of subsidiary undertakings 1,308 (59)
Exchange difference on loans (475) -
------------ -------------
Closing balance 25,862 22,371
============ =============
The prior year adjustment relates to a change of accounting policy
for the recognition of deferred taxation liabilities to full provision
on a discounted basis on implementation of FRS 19, Deferred Taxation.
10. Reconciliation of operating profit to net cash flow from operating activities
2002 2001
#'000 #'000
Operating profit 12,315 12,001
Depreciation charges 1,498 1,477
Amortisation of goodwill 2,298 1,560
Profit on sale of tangible fixed assets (22) (14)
Increase in stocks (316) (463)
Decrease/(increase) in debtors 497 (977)
Increase/(decrease) in creditors 1,701 (872)
Increase/(decrease) in provisions 48 (11)
-------------- --------------
18,019 12,701
============== ==============
This summary has been approved by our Directors for release to the
Press today 17 March 2003 and the full printed Annual Report
and Accounts will be posted to Shareholders and Stock
Exchanges on 7 May 2003. Copies will be available to the
public at the Company's registered office Ormeau Road, Belfast
BT7 1EB from that date.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GUUBAWUPWGMC