Catalyst Media Group PLC Trading Update and Proposed Share Buy Back (5764M)
October 14 2016 - 4:18AM
UK Regulatory
TIDMCMX
RNS Number : 5764M
Catalyst Media Group PLC
14 October 2016
14 October 2016
Catalyst Media Group plc
("CMG" or the "Company")
Trading Update and Proposed Share Buy Back
CMG provides the following update in respect of Satellite
Information Services (Holdings) Ltd ("SIS") in which it has an
approximate 20.54 per cent. interest.
SIS has now finalised its results for the year ended 31 March
2016, which show revenues of GBP227.9 million (2015: GBP229.0
million) and profit after tax of GBP16.6 million (2015: GBP21.4
million). The profits were below the prior year due to a reduction
in the customer subscriber base during the year, the impact of
which was partially offset by an increase in charges to
subscribers, combining with increased costs arising from media
rights additional content and inflationary factors. In the year
ended 31 March 2016, net cash generated from operating activities
increased significantly to GBP43.2 million (2015: GBP32.3 million),
due mainly to working capital movements, and as at 31 March 2016,
SIS had a substantially increased cash position of GBP62.2 million
(2015: GBP21.9 million) prior to the payment of the dividend
referred to below.
Given the strong cash position of SIS as set above, the progress
it has made in signing new media rights and the continued positive
cash flow generation of its operations, as announced on 29 July
2016, SIS approved a dividend of GBP20.0 million. Accordingly, the
dividend received by CMG was GBP4.1 million. Since its year end,
SIS is trading in line with management's expectations and continues
to generate positive cash flow.
As previously reported various racing media, rights acquired
from Arena Racing and from Northern Racing expire at the end of
2016 and 2017 but, following the agreement with Racecourse Media
Group ("RMG"), the main media and data rights relating to horse
racing have now been extended from 2018 to 2023. Meanwhile the
board of SIS has been pursuing its growth initiatives to widen the
base of the company in the digital streaming sector and on line
gaming. This has involved direct investments of approximately
GBP8.0 million as at 31 March 2016 and is ongoing.
The claim in respect of the Indian project referred to in
previous statements continues to be pursued but it's outcome
remains uncertain.
Taking account of CMG's share of SIS's profit for 2015 of GBP3.4
million, together with a one off charge to reflect accounting
changes in SIS of GBP0.4 million and an impairment charge of GBP3.0
million, on the basis CMG's investment in SIS has been maintained
at GBP25.0 million, CMG anticipates announcing a small loss for the
year ended 30 June 2016. In assessing the value of the Company's
investment in SIS, the Board takes into account the performance and
prospects of SIS, which are in line with the Board's expectations
and hence, in line with previous treatment, the Company has made an
impairment charge equal to its profit share in order to maintain
the value of its investment in SIS.
The final audited statements of CMG for the year ended 30 June
2016 are expected to be published on or before 20 December
2016.
CMG continues to trade with very low overheads at a net cost of
approximately GBP112,000 per annum and accordingly, following the
receipt of the dividend from SIS, the Board of CMG has now resolved
to offer to purchase up to 3,411,704 ordinary shares of 10p each in
CMG ("Ordinary Share") in accordance with the authority granted at
the last Annual General Meeting of the Company. WH Ireland Limited
has been engaged to undertake the share repurchase programme on the
Company's behalf. In accordance with the authority granted, the
maximum price which may be paid for an Ordinary Share is equal to
105 per cent. of the average of the middle market quotations for an
Ordinary Share as derived from the AIM Appendix to The London Stock
Exchange Daily Official List for the five business days immediately
preceding the day on which such Ordinary Share is contracted to be
purchased. The Company will not purchase Ordinary Shares at a price
greater than 75p per share. This arrangement will expire on 11
November 2016. Those shareholders wishing to take advantage of this
should contact their brokers or other financial advisers.
Enquiries:
Catalyst Media Group plc
Michael Rosenberg, Non-Executive Chairman +44 (0)7785 727 595
Melvin Lawson, Non-Executive Director +44 (0)20 7734 8111
Strand Hanson Limited +44 (0)20 7409 3494
James Harris
Richard Tulloch
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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