TIDMCLTV

RNS Number : 7660B

Cellcast plc

25 September 2018

Cellcast plc

("Cellcast" or the "Company")

Interim results for the six months ended 30 June 2018

The Board of Cellcast plc (AIM: CLTV) announces the group's interims results for the six months ended 30 June 2018.

Highlights

-- UK interactive broadcast revenues remained broadly level at GBP5.44 million (H1 2017: GBP5.49 million)

   --      Revenues from overseas gaming services of GBP330,000 (H1 2017: GBP300,000) 
   --      Profit before tax of GBP5,000 for the period (H1 2017: loss of GBP145,000) 
   --      Earnings per share of 0.001p (H1 2017: loss per share of 0.2p) 
   --      Core focus remains in the UK, specifically the online sector 

Craig Gardiner, CEO of Cellcast plc, commented:

"Revenues in our core broadcast sector and from our overseas gaming services have remained broadly in line, however due to a reduction in cost of sales we have reported a small profit for the period. With Brexit uncertainty looming, we are focussing our efforts in our core market of the UK. In particular, we have invested in our online offering, with an emphasis on cost control and improving our margins. We therefore hope that the positive trading will carry on through the second half of the year."

For further information:

 
 Cellcast plc 
 Craig Gardiner, CEO                  Tel: +44 (0) 203 376 
                                       9420 
 craig@cellcast.tv                    www.cellcast.tv 
 
 Allenby Capital Limited (Nominated 
  Adviser) 
 Nick Naylor/James Reeve              Tel: +44 (0) 20 3328 
                                       5656 
 

CHIEF EXECUTIVE OFFICER'S STATEMENT

Half year results

UK interactive broadcast revenues for the six months ended 30 June 2018 were GBP5.44 million, which was broadly in line with the same period last year (H1 2017: GBP5.49m). Revenue from the overseas gaming consultancy services represented GBP330,000 (compared to GBP300,000 in H1 2017).

With additional savings achieved through the group's improved online strategy, the cost of sales decreased by GBP174,000 to GBP5.51m, a reduction of 3% compared to the same period last year (H1 2017 cost of sales: GBP5.68m). As a result, the gross profit for the period amounted to GBP267,000 compared to GBP89,000 in H1 2017.

General and administrative costs before the forex impact for the period were GBP277,000 (H1 2017: GBP292,000). After forex gains of GBP56,000, the general and administrative costs amounted to GBP217,000 (H1 2017: GBP162,000).

Overall, the group's operations showed a breakeven position, with a profit before tax of GBP5,000. This compares to a loss before tax of GBP145,000 for the period ending 30 June 2017.

The post-tax loss for the period amounted to GBP5,000 and earnings per share of 0.001p. By comparison, during the period to 30 June 2017 the group suffered a net loss of GBP145,000 and negative earnings per share of 0.2p.

The group's cash and cash equivalents at 30 June 2018 stood at GBP978,000 compared to a balance of GBP862,000 at 30 June 2017.

Outlook

The economic uncertainty caused by Brexit continues to present major challenges to the media and entertainment industry, so we are planning a prudent approach until there is further clarity post March 2019.

The Company's clients in Kenya have notified us of potential reduction and delays in service payments owing to lack of clarity about the application of new taxes affecting lotteries. As a result of these uncertainties, our client's marketing has been scaled back and in the coming months we may not realise the full bonus payments that form part of our service remuneration. There is expectation that any such potential decline in the lottery activity can be off-set by revenue generated by the planned launch of new products and services in that region in the last quarter of 2018.

The group has focused a lot of effort in the UK and specifically towards the online sector, with particular emphasis on cost control and improving our margins. These efforts will continue in the coming months, further refining our product portfolio.

On the broadcast side, we have made further bandwidth savings over the summer and will be monitoring the effects of these changes over the coming months.

Craig Gardiner

Chief Executive Officer

24 September 2018

UNAUDITED CONDENSED CONSOLIDATED STATEMENT of comprehensive income

 
For the 6 months ended 30 
 June 2018 
                                                                       Audited 
                                  6 months ended  6 months ended    Year ended 
                                        30/06/18        30/06/17      31/12/17 
                                             GBP             GBP           GBP 
 
Revenue                                5,772,955       5,769,311    11,969,626 
 
Cost of sales                        (5,506,046)     (5,680,171)  (11,151,615) 
 
Gross profit                             266,909          89,140       818,011 
                                  --------------  --------------  ------------ 
 
Operating costs and expenses: 
  Administrative expenses 
   (see note 5)                        (216,762)       (161,646)     (594,636) 
  Amortisation and depreciation         (42,334)        (49,368)      (92,818) 
Total operating costs and 
 expenses                              (259,096)       (211,014)     (687,454) 
                                  --------------  --------------  ------------ 
Operating profit/(loss)                    7,813       (121,874)       130,557 
 
Fair value gains and losses                    -          12,719        12,719 
Foreign exchange loss on 
 current asset investments                     -        (45,315)    (45,315) 
Impairment losses                              -               -     (754,358) 
Finance costs                            (2,460)         (2,250)       (7,953) 
Share of results of associate                  -          11,913        11,913 
 
Profit/(loss) before tax                   5,353       (144,807)     (652,437) 
                                  --------------  --------------  ------------ 
 
Taxation                                       -               -         5,794 
 
Profit/(loss) for the period               5,353       (144,807)     (646,643) 
 
Total comprehensive income 
 attributable to owners of 
 the parent                                5,353       (144,807)     (646,643) 
                                  ==============  ==============  ============ 
 
  Earnings/(loss) per share 
Basic and diluted                          0.00p          (0.2p)        (0.8p) 
                                  ==============  ==============  ============ 
 
 

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 
As at 30 June 2018 
                                                                 Audited 
                                    30/06/18       30/06/17     31/12/17 
                                         GBP            GBP          GBP 
Assets 
Non-current assets 
Intangible assets                     87,050        104,573       94,149 
Property, plant and equipment        132,794        123,584      122,741 
Investments                           88,813         88,813       88,813 
Interest in associate                      -         74,958            - 
                                     308,657        391,928      305,703 
                                 -----------  -------------  ----------- 
 
Current assets 
Trade and other receivables        1,440,521      2,825,531    1,954,053 
Cash and cash equivalents            978,206        862,446    1,057,301 
                                   2,418,727      3,687,977    3,011,354 
                                 -----------  -------------  ----------- 
 
Total assets                       2,727,384      4,079,905    3,317,057 
                                 ===========  =============  =========== 
 
 
 
Capital and reserves 
Called up share capital            2,285,398      2,285,398    2,285,398 
Share premium account              5,533,626      5,533,626    5,533,626 
Merger reserve                     1,300,395      1,300,395    1,300,395 
Warrant reserve                       13,702         13,702       13,702 
Retained earnings                (7,418,141)    (6,921,658)  (7,423,494) 
                                 -----------  -------------  ----------- 
Total equity                       1,714,980      2,211,463    1,709,627 
                                 -----------  -------------  ----------- 
 
Liabilities 
Non-current liabilities                    -        335,000       37,113 
Current liabilities 
Trade and other payables           1,012,404      1,533,442    1,570,317 
Total liabilities                  1,012,404      1,868,442    1,607,430 
                                 -----------  -------------  ----------- 
Total equity and liabilities       2,727,384      4,079,905    3,317,057 
                                 ===========  =============  =========== 
 
 
 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

 
 
 
  As at 30 June 2018   Called Up    Share 
                         Share     Premium    Merger    Warrant   Retained      Total 
                        Capital    Account    Reserve   Reserve   Earnings     Equity 
 
                             GBP        GBP        GBP      GBP          GBP        GBP 
---------------------  ---------  ---------  ---------  -------  -----------  --------- 
Balance at 1 January 
 2018                  2,285,398  5,533,626  1,300,395   13,702  (7,423,494)  1,709,627 
---------------------  ---------  ---------  ---------  -------  -----------  --------- 
Loss for the period            -          -          -        -        5,353      5,353 
Balance at 30 June 
 2018                  2,285,398  5,533,626  1,300,395   13,702  (7,418,141)  1,714,980 
---------------------  ---------  ---------  ---------  -------  -----------  --------- 
 
 
 
  As at 31 December 
  2017                   Called Up    Share 
                           Share     Premium    Merger    Warrant   Retained      Total 
                          Capital    Account    Reserve   Reserve   Earnings     Equity 
 
                               GBP        GBP        GBP      GBP          GBP        GBP 
-----------------------  ---------  ---------  ---------  -------  -----------  --------- 
Balance at 1 January 
 2017                    2,285,398  5,533,626  1,300,395   13,702  (6,776,851)  2,356,270 
-----------------------  ---------  ---------  ---------  -------  -----------  --------- 
Loss for the period              -          -          -        -    (646,643)  (646,643) 
Balance at 31 December 
 2017                    2,285,398  5,533,626  1,300,395   13,702  (7,423,494)  1,709,627 
-----------------------  ---------  ---------  ---------  -------  -----------  --------- 
 
 
 
 
  As at 30 June 2017   Called Up    Share 
                         Share     Premium    Merger    Warrant   Retained      Total 
                        Capital    Account    Reserve   Reserve   Earnings     Equity 
 
                             GBP        GBP        GBP      GBP          GBP        GBP 
---------------------  ---------  ---------  ---------  -------  -----------  --------- 
Balance at 1 January 
 2017                  2,285,398  5,533,626  1,300,395   13,702  (6,776,851)  2,356,270 
---------------------  ---------  ---------  ---------  -------  -----------  --------- 
Loss for the period            -          -          -        -    (144,807)  (144,807) 
Balance at 30 June 
 2017                  2,285,398  5,533,626  1,300,395   13,702  (6,921,658)  2,211,463 
---------------------  ---------  ---------  ---------  -------  -----------  --------- 
 

In the above tables, the amounts are attributable to the equity holders of the parent.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the 6 months ended 30 June 2018

 
                                                                             Audited 
                                          6 months ended  6 months ended  Year ended 
                                                30/06/18        30/06/17    31/12/17 
                                                     GBP             GBP         GBP 
 
Net cash (outflow) from operations    a         (31,346)       (415,943)   (154,448) 
 
 
Net cash (outflow)/inflow 
 from investing activities            b         (45,289)         179,404     118,467 
 
Net cash used in financing 
 activities                           c          (2,460)         (2,250)     (7,953) 
-----------------------------------  ---  --------------  --------------  ---------- 
 
Net (decrease) in cash and 
 cash equivalents                               (79,095)       (238,798)    (43,934) 
----------------------------------------  --------------  --------------  ---------- 
 
Cash and cash equivalents 
 at beginning of period                        1,057,301       1,101,235   1,101,235 
 
Cash and cash equivalents 
 at end of period                     d          978,206         862,446   1,057,301 
-----------------------------------  ---  --------------  --------------  ---------- 
 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the 6 months ended 30 June 2018

 
 
                                                                                  Audited 
                                              6 months ended  6 months ended   Year ended 
                                                    30/06/18        30/06/17     31/12/17 
                                                         GBP             GBP          GBP 
a   Reconciliation of net loss to 
     net cash (outflow) from operating 
     activities 
 
 Profit/(loss) before tax                              5,353       (144,807)    (646,643) 
 Income tax recognised in profit 
  or loss                                                  -               -      (5,794) 
 Fair value gains and losses                               -        (12,719)     (12,719) 
 Finance costs                                         2,460           2,250        7,953 
 Amortisation and depreciation                        42,334          49,368       92,818 
 Impairment losses                                         -               -      754,358 
 Share of associate's profit                               -        (11,913)     (11,913) 
 FX gain on current asset investment                       -          16,560       45,315 
 Decrease/(increase) in trade and 
  other receivables                                  513,532       (171,581)       20,497 
 (Decrease) in trade and other 
  payables                                         (595,025)       (143,101)    (398,338) 
 Income tax received                                       -               -           18 
 Net cash (outflow) from operations                 (31,346)       (415,943)    (154,448) 
 -----------------------------------------  ----------------  --------------  ----------- 
 
 
b   Cash flow from investing activities 
 
 Purchase of property, plant and 
  equipment                                         (45,289)        (17,700)     (49,884) 
 Proceeds from disposal of current 
  asset investments                                        -         197,104      168,351 
 Net cash (outflow) / inflow from 
  investing activities                              (45,289)         179,404      118,467 
 -----------------------------------------  ----------------  --------------  ----------- 
 
 
c   Cash flow from financing activities 
 
 Interest paid                                       (2,460)         (2,250)      (7,953) 
 Net cash used in financing activities               (2,460)         (2,250)      (7,953) 
 -----------------------------------------  ----------------  --------------  ----------- 
 
 
d   Cash and cash equivalents 
 
 Cash at bank                          978,206  862,446  1,057,301 
 Cash and cash equivalents at the 
  end of the period                    978,206  862,446  1,057,301 
 ------------------------------------  -------  -------  --------- 
 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

   1.     General Information 

Cellcast plc is a public limited company incorporated and domiciled in the United Kingdom. Its business address is 35 Soho Square, London, W1D 3QX. The address of its registered office is The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU. Copies of this statement are available from this address and from the Company's website www.cellcast.tv.

The Company is quoted on AIM, a market operating on the London Stock Exchange PLC.

This condensed consolidated interim financial information was approved for issue on 25 September 2018.

   2.     Basis of preparation 

This unaudited condensed consolidated interim financial information is for the six months ended 30 June 2018. This has been prepared in accordance with recognition and measurement principles of International Financial Reporting Standards (IFRS) as endorsed by the European Union and implemented in the UK. The financial information in this interim announcement is unaudited and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

The interim financial information does not include all of the information required for full annual financial statements and accordingly, whilst the interim financial information has been prepared in accordance with the recognition and measurement principles of IFRS, it cannot be construed as being in full compliance with IFRS.

The comparative financial information for the year ended 31 December 2017 does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The statutory accounts of the group for the year ended 31 December 2017 have been reported on by the Company's auditor and have been delivered to the Registrar of Companies. The auditor's report on those statutory accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement made under Section 498 of the Companies Act 2006.

The current and comparative periods to June have been prepared using accounting policies and practices consistent with those adopted in the annual financial statements for the year ended 31 December 2017 and are also consistent with those which will be adopted in the 31 December 2018 financial statements.

These financial statements are the first financial statements of Cellcast plc prepared in accordance with IFRS 9 and IFRS 15 which are effective for periods commencing on or after 1 January 2018. The reported financial position and financial performance for the previous period are not affected by the new standards.

There are no other Standards and Interpretations which were in issue but not effective at the date of authorisation of this condensed interim financial information that the directors anticipate will have a material impact on the financial statements.

The directors have carefully considered whether or not it is appropriate to adopt the going concern basis in preparing the interim financial report. The directors have reviewed the group's detailed cash forecast to ensure that the group's current working capital and credit facilities in place are sufficient for the foreseeable future. This assessment is based upon forecasts following the reduction in the revenue of the UK television business together with the continued reduction in operational costs implemented over the year; it also assumes the maintenance of existing relationships with key suppliers.

After making enquiries, the directors have concluded that the group has adequate resources to continue trading for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the interim financial report.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

   2.    Basis of preparation (continued) 

In the financial statements for the year ended 31 December 2017 foreign exchange gains and losses on current asset investments were presented below operating profit. In the interim period to 30 June 2017 foreign exchange losses on current asset investments were shown within administrative expenses. This presentation was deemed more appropriate by the directors as these amounts relate to the group's investment activities. To ensure amounts are comparable, for the period to 30 June 2017 presented, foreign exchange losses on current asset investments of GBP45,015 have been reclassified from administrative expenses to be presented below operating profit.

   3.     Revenue 
 
 
                                                                  Audited 
                               6 months ended  6 months ended  Year ended 
                                     30/06/18        30/06/17    31/12/17 
                                          GBP             GBP         GBP 
 
Revenue 
 Interactive broadcast              5,442,955       5,469,311  11,309,626 
 Overseas gaming consultancy 
  services                            330,000         300,000     660,000 
                               --------------  --------------  ---------- 
Total revenue                       5,772,955       5,769,311  11,969,626 
                               --------------  --------------  ---------- 
 
   4.     Earnings / (loss) per share 

Basic and diluted earnings per share is based on the profit after tax and on the following weighted average number of shares in issue.

 
                                           6 months    6 months      Audited 
                                              ended       ended   Year ended 
                                           30/06/18    30/06/17     31/12/17 
                                                GBP         GBP          GBP 
 
Reported (loss)/profit for the 
 financial period                             5,353   (144,807)    (646,643) 
                                         ----------  ----------  ----------- 
 
                                             Number      Number       Number 
 
Weighted average number of ordinary 
 shares for basic and diluted earnings 
 / (loss) per share                      77,513,224  77,513,224   77,513,224 
 
Weighted average number of ordinary 
 shares for diluted earnings / (loss) 
 per share                               77,513,224  77,513,224   77,513,224 
                                         ==========  ==========  =========== 
 
Basic earnings / (loss) per share 
 (pence)                                      0.00p      (0.2p)       (0.8p) 
Diluted earnings / (loss) per share 
 (pence)                                      0.00p      (0.2p)       (0.8p) 
                                         ----------  ----------  ----------- 
 
   5.     Foreign exchange gains and losses 

Included in administrative expenses for the 6 months ended 30/06/18 are foreign currency gains of GBP56,378 (Audited year ended 31/12/17: losses of GBP74,987. 6 months ended 30 June 2018: gains of GBP85,433).

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IR PGUUUBUPRGQC

(END) Dow Jones Newswires

September 25, 2018 02:00 ET (06:00 GMT)

Cellcast (LSE:CLTV)
Historical Stock Chart
From Dec 2021 to Jan 2022 Click Here for more Cellcast Charts.
Cellcast (LSE:CLTV)
Historical Stock Chart
From Jan 2021 to Jan 2022 Click Here for more Cellcast Charts.