TIDMCMX
RNS Number : 0995X
Catalyst Media Group PLC
30 December 2021
30 December 2021
Catalyst Media Group Plc
("CMG", the "Company" or the "Group")
Final Results for the Year Ended 30 June 2021
and Notice of Annual General Meeting
The Board of CMG (AIM: CMX) is pleased to announce the Company's
final results for its financial year ended 30 June 2021.
CMG is a 20.54% shareholder in Sports Information Services
(Holdings) Limited ("SIS") and the results for the year to 30 June
2021 incorporate its share in the profits/(losses) of SIS for its
financial year ended 31 March 2021, as an equity accounted
associate.
Highlights :
-- CMG loss after taxation of GBP1.6 million with no impairment
charge in the carrying value of the group's interest in SIS (2020:
loss of GBP1.1 million following an impairment charge of GBP1.2
million in the carrying value of the group's interest in SIS)
-- Loss per share of 7.51p (2020: loss per share of 5.27p)
-- Net asset value per share of 52.3p (2020: 60.7p)
-- For its financial year to 31 March 2021, SIS achieved:
- Turnover of GBP130.1 million (2020: GBP212.6 million)
- Operating loss prior to litigation fees of GBP8.3 million (2020: GBP3.6 million)
- Loss after taxation prior to litigation fees of GBP6.7 million
(2020: profit after taxation prior to litigation fees of GBP3.7
million)
-- SIS did not declare or pay any dividends to CMG during the
reporting period (2020: GBP5.0 million dividend declared of which
GBP1.03 million was received by CMG)
-- CMG has not declared nor paid any dividends during the
reporting period (2020: GBP1.05 million dividend (5p per share)
declared in October 2019 and paid in November 2019)
SIS Current Trading and Outlook
-- Following the relaxation of COVID-19 restrictions in May
2021, SIS's UK and Irish retail business has returned to normal
operations whilst its Digital business has continued to operate at
levels higher than pre-COVID-19 with significant growth in its
customer base and continued scaling up of its Competive Gaming
(e-sports) and Numbers draws products. Accordingly, SIS's
profitability for its current financial year to 31 March 2022 is
expected to see a significant rebound and, although still impacted
by the COVID-19 outbreak and uncertain nature of the new variants,
the Board of CMG has been informed that it currently expects to
make a profit for its financial year as a whole
-- In June 2021, SIS extended its rights agreement with
Racecourse Media Group for UK Retail Horseracing rights for a
further 3 years through to March 2026 and completed an initial
investment in, and long term partnership arrangement with, Racelab
Pty Limited, a racing data science company in Australia, to enhance
its product range
-- As at 30 November 2021, SIS had a total cash balance of
approximately GBP52m and its working capital position has returned
to normal levels. The Board of CMG is hopeful that SIS will be able
to return to paying dividends in its next financial year
Availability of Annual Report & Financial Statements and
Notice of Annual General Meeting
A pdf copy of the Company's full Annual Report and Financial
Statements for its financial year ended 30 June 2021, together with
the formal notice of Annual General Meeting ("AGM") and form of
proxy, will shortly be made available to download from the
Company's website at: www.cmg-plc.com.
The AGM is to be held at 6 Stratton Street, London W1J 8LD at
11.00 a.m. on Thursday, 27 January 2022. In light of the current
status of the evolving COVID-19 situation and any UK government
restrictions on public gatherings that may be introduced and in
force at the date of the AGM, the Directors strongly encourage all
Shareholders to vote electronically or lodge a form of proxy prior
to the meeting and not attend the meeting in person.
Enquiries:
Catalyst Media Group plc
Michael Rosenberg, Non-executive Chairman Mob: 07785 727
Melvin Lawson, Non-executive Director 595
Tel: 020 7734
8111
Strand Hanson Limited Tel: 020 7409
James Harris / Matthew Chandler 3494
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended.
Key Extracts from the Company's audited Annual Report and
Financial Statements are set out below:
Chairman's Statement
I am pleased to present the results for Catalyst Media Group plc
("CMG" or the "Company") for the year ended 30 June 2021, which
incorporates our share of profits/losses for Sports Information
Services (Holdings) Ltd ("SIS") in which CMG has a 20.54%
interest.
The main asset of CMG continues to be its 20.54% shareholding in
SIS, as detailed further below. CMG equity accounts for its share
in the profits/losses of SIS.
After taking account of CMG's share in the loss (2020: profits)
of SIS for its year ended 31 March 2021 of GBP1.47 million (2020:
GBP0.13 million), CMG recorded a loss before taxation of GBP1.6
million (2020: loss of GBP1.1 million), with no impairment charge
recognised against the carrying value of its interest in SIS (2020:
charge of GBP1.2 million). Net assets at the year end were GBP11
million (52.3p per share) (2020: GBP12.8 million (60.7p per
share)).
SIS - UK and Ireland Retail
SIS continues to provide a core service including Racecourse
Media Group horseracing, the SIS British Greyhound Service, Irish
Horseracing, Chelmsford City Horseracing, 49's and International
Horseracing to almost the entire UK and Irish retail market,
including all the major UK bookmaking groups and the majority of
the independent operators market.
Additionally, SIS supplies content and services to its UK and
Irish retail customers to cover early morning and additional
evening products and has renewed several pre-existing
arrangements.
In SIS's financial year to 31 March 2021, COVID-19 led to
Licensed Betting Offices ("LBOs") being closed or operating under
significant restrictions which resulted in no SIS Retail Services
for a period of two months and significant disruption to retail
services and revenue for a further six months.
SIS - International & Online
SIS has continued to expand both the content and customer base
for its 24/7 racing channels covering horseracing, greyhound
racing, virtual racing and mixed channels, and has improved the
user experience. SIS now has over 50 channels with customers
designed to maximise betting opportunities for international retail
and online operators and has signed numerous international and
online operators to multi-year agreements. SIS continues to
progress its strategy to increase distribution, in both new and
existing international and online markets, using proprietary
production technology, as well as ultra-low latency streaming and
data-pricing services.
The financial year also saw the launch of new online products
outside of racing which included the launch of the SIS Competitive
Gaming (e-sports) service during the UK lockdown in May 2020, with
commitment from customers for multiple 24/7 service channels.
Additionally, following the acquisition of the 49's business in
June 2020, the numbers draws and virtuals products have been
launched online and have experienced rapid growth.
SIS Results
The Company announced in March 2021 that the forecast annual
loss before tax for SIS was between GBP9m and GBP10m, whereas the
final result for its year ended 31 March 2021 was a loss before tax
of GBP8.6 million. The main driver for the loss was the significant
restrictions and disruptions to trading due to the COVID-19
pandemic.
SIS's cash balance on 31 March 2021 was approximately GBP38.9
million, down on the prior year due to the COVID-19-driven loss and
the related unwind in working capital. There has been no dividend
declared nor paid by SIS since the end of its financial year.
The results of SIS for its year ended 31 March 2021 were as
follows:
31 March 2021 31 March 2020
Before Before
individually Individually individually Individually
significant significant significant significant
items* Items* Total items* Items* Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Turnover 130,107 - 130,107 212,593 - 212,593
Operating expenses (140,267) (622) (140,889) (208,975) (3,577) (212,552)
Other operating income 1,863 - 1,863 - - -
--------------- -------------- ----------- --------------- -------------- -----------
Group operating profit
/ loss (8,297) (622) (8,919) 3,618 (3,577) 41
Other interest receivable
and similar income 310 - 310 756 - 756
Interest payable and
similar expenses (3) - (3) (1) - (1)
--------------- -------------- ----------- --------------- -------------- -----------
Profit / (loss) before
taxation (7,990) (622) (8,612) 4,373 (3,577) 796
Tax on profit / (loss) 1,337 118 1,455 (695) 509 (186)
--------------- -------------- ----------- --------------- -------------- -----------
Profit / (loss) after
taxation (6,653) (504) (7,157) 3,678 (3,068) 610
--------------- -------------- ----------- --------------- -------------- -----------
Other comprehensive
income (917) - (917) 1,279 - 1,279
--------------- -------------- ----------- --------------- -------------- -----------
Total comprehensive
income (7,570) (504) (8,074) 4,957 (3,068) 1,889
--------------- -------------- ----------- --------------- -------------- -----------
Notes: * - Individually significant items relate to litigation
fees.
Share of net assets and liabilities
of associate
31 March 2021 31 March 2020
Gross assets 100,419 97,150
Net liabilities (47,771) (36,428)
------------- -------------
Net assets 52,648 60,722
------------- -------------
India
An arbitration award was made in July 2020 in respect of the
Indian project which the respondent has paid into court. These
funds are now subject to appeals in the Delhi High Court by both
parties: SIS continues to pursue claims disallowed by the
arbitrators whilst the respondent attempts to nullify the award in
its entirety. The overall outcome therefore remains uncertain.
The legal and associated costs relating to this claim have been
significantly reduced but are still impacting SIS's profits.
Litigation
As previously announced on 9 October 2020, in the case brought
by The Racing Partnership ("TRP") and others against SIS's
subsidiary, Sports Information Services Limited ("SISL"), and
others, the Court of Appeal handed down judgment in relation to the
appeals against various elements of the High Court judgment of Mr
Justice Zacaroli in respect of liability issues. The Court of
Appeal:
1. Upheld SISL's appeal in relation to the finding of breach of
confidence in relation to certain race day data supplied to SISL by
a co-defendant; and
2. Upheld TRP's appeal against the dismissal of its claims for
unlawful means conspiracy.
The Court of Appeal was concerned only with the appeals on the
liability findings and consequently made no ruling as to
damages.
SIS has applied to the Supreme Court and has been granted an
appeal hearing which is currently expected to be held in the summer
of 2022.
Current Trading and Outlook
Following the relaxation of COVID-19 restrictions in May 2021
the UK and Irish retail business has returned to normal operations
whilst the Digital business has continued to operate at levels
higher than pre-COVID-19 and has seen significant growth in its
customer base. Additionally, the business has continued to scale
its new products of Competitive Gaming (e-sports) and Numbers
draws.
SIS's profitability for the year to 31 March 2022 will see a
significant rebound and, although still impacted by the COVID-19
outbreak, SIS expects to make a profit for the year as a whole,
albeit the magnitude of such profit is currently difficult to
forecast given the uncertain nature of the new COVID-19
variants.
In June 2021, SIS extended its rights agreement with Racecourse
Media Group for UK Retail Horseracing rights for a further 3 years
through to March 2026 and has already secured two extended
contracts for major customers of this content.
Also in June 2021, SIS completed an initial investment in, and
long term partnership arrangement with, Racelab Pty Limited, a
racing data science company in Australia, which added a range of
market leading products across the SIS portfolio of international
horse and greyhound racing
SIS's cash balance had risen to circa GBP52m as of 30 November
2021 and its working capital position has returned to normal
levels.
As a result of the COVID-19 uncertainty, SIS has deferred any
dividend this year and will next consider a dividend in 2022.
The Directors consider that the most appropriate treatment for
the Group's investment in its associate, SIS, as at 30 June 2021 is
to hold the investment at the Group's share of SIS's net assets.
For further details on this, please refer to notes 1 and 2 in the
full Annual Report and Financial Statements.
CMG's outlook and Annual General Meeting
CMG continues to be cash positive with very low overheads. As
stated above, it is hoped that SIS will be able to return to paying
dividends in its next financial year.
The next Annual General Meeting of CMG will take place on
Thursday, 27 January 2022. Formal Notice of the meeting is set out
at the end of the full Annual Report and Financial Statements
together with the form of proxy.
Michael Rosenberg, OBE
Chairman
30 December 2021
Strategic Report
The Directors present their strategic report for the year ended
30 June 2021.
Principal activities and review of the business
The principal activities of the business are outlined in the
Chairman's Statement. A review of the business is also included
within the Chairman's Statement.
Principal risks and uncertainties
Investment in SIS
The principal strategic investment of the Group is its 20.54%
shareholding in SIS. The Group is entitled to appoint one director
to the board of SIS which currently comprises eight directors, of
which five are appointed by shareholders, two are independent and
one is the Chairman. Although it can influence the board on
strategic decisions, the Group is not in a position to control the
day-to-day business and affairs of SIS other than with the support
of other directors and a majority of the shareholders of SIS.
There are a number of risks and uncertainties associated with
the business of SIS which could potentially have an adverse impact
on the value of the Group's investment. At a technical level this
includes the fact that the customers of SIS rely upon real time
data and uninterrupted content delivery. Loss of content would
result in reduced quality of services and potentially reduced
income. SIS has therefore adopted advanced disaster recovery
solutions and has built back up facilities which are located around
the UK.
Financial risk
The Group is subject to financial risk through its exposure to
financial assets and liabilities. The Group's main financial risk
is its exposure to its investment in SIS.
Credit risk
The Group is not exposed to any credit risk.
Liquidity risk
There is a very low risk that the Group will encounter
difficulty in meeting its financial obligations as they fall due,
on the basis that the Group operates with minimal overheads and
cash flow is well managed.
The Group's policy is to ensure that it will always have
sufficient cash to allow it to meet its liabilities when they
become due. The principal liabilities of the Group and Company
arise in respect of administrative expenditure and trade and other
payables. Trade and other payables are all payable within three
months.
The Board receives cash flow projections on a regular basis as
well as information on cash balances.
Key Performance Indicators (KPIs)
The Company's key performance indicators used by the Board in
monitoring the general performance of the Group and its investments
are:
Net asset value per share
The net asset value per share of the Group was 52 pence as at 30
June 2021 (2020: 61 pence). The net asset value per share has
therefore decreased during the year to 30 June 2021. The net asset
value of the Group as at 30 June 2021 and 30 June 2020 is shown in
the Group's consolidated statement of financial position.
Administrative expenses
The Directors closely monitor the anticipated overheads for the
Group and ensure that these are kept to a minimum.
Earnings per share (EPS)
EPS shows the relative performance year-on-year of the Group's
profitability measured as an amount of profit or loss attributable
to one ordinary share. The calculation of earnings per share is
based on the weighted average number of ordinary shares in issue
for the financial year concerned and the profit/(loss) after
taxation attributable to ordinary shareholders. EPS in respect of
operations for the year and the prior financial year is shown in
the Group consolidated statement of comprehensive income.
Key Performance Indicators of Associate
The Directors additionally monitor the performance of SIS in
order to evaluate the general performance of the Group.
s172 Statement
CMG's Directors are mindful of their responsibilities under
section 172 of the Companies Act 2006 to promote the success of the
business through operating in accordance with good corporate
practice and with considered engagement with the Group's
stakeholders. Several of the Group's major shareholders are also
directors of the Group and are therefore actively involved in all
key decision-making. Please see the Corporate Governance Statement
in the full Annual Report and Financial Statements for further
details of engagement with stakeholders.
The board of directors regularly review and identify other
principal stakeholders of the business, and decisions in respect of
the Group's activities are made only after reviewing, and
discussing, the potential impact on such stakeholders. Furthermore,
in terms of engagement with the Group's suppliers, the directors
continue to actively monitor ethical standards and environmental
issues to ensure that the wider business is compliant with global
standards.
Energy and carbon report
For the financial year ended 30 June 2021, CMG is classified as
a low energy user as its total energy usage for the year to 30 June
2021 was below 40,000kWh. The Company is therefore exempt from
providing an energy and carbon report under section 20D(7a) of The
Companies (Directors' Report) and Limited Liability Partnerships
(Energy and Carbon Report) Regulations 2018.
Michael Rosenberg, OBE
Chairman
30 December 2021
Consolidated statement of comprehensive income for the year
ended 30 June 2021
Year Year
Ended Ended
30 June 30 June
2021 2020
GBP GBP
------------ ------------
Revenue 25,000 25,000
Administrative expenses (130,029) (123,600)
------------ ------------
Operating loss (105,029) (98,600)
Financial income 23 712
Financial costs - -
------------ ------------
Net financial income 23 712
Share of (loss)/profit of equity-accounted
associate, net of tax (1,470,048) 125,294
Impairment of equity-accounted associate - (1,160,843)
Loss before taxation (1,575,054) (1,133,437)
------------ ------------
Taxation (4,934) 25,583
Loss for the year (1,579,988) (1,107,854)
------------ ------------
Share of other comprehensive (loss)/profit
of associate (188,352) 262,707
Total comprehensive loss for the
year (1,768,340) (845,147)
------------ ------------
Attributable to equity holders of
the Company (1,768,340) (845,147)
------------ ------------
Loss per share:
Basic (7.51p) (5.27p)
------------ ------------
Diluted (7.51p) (5.27p)
------------ ------------
The above Consolidated Statement of Comprehensive Income should
be read in conjunction with the accompanying notes in the Company's
full Annual Report and Financial Statements.
Consolidated statement of financial position as at 30 June
2021
30 June 30 June
2021 2020
GBP GBP
----------- -----------
Assets
Non-current assets
Investment in associate 10,816,580 12,474,980
10,816,580 12,474,980
----------- -----------
Current assets
Trade and other receivables 57,312 62,741
Cash and cash equivalents 167,830 270,654
225,142 333,395
----------- -----------
Total assets 11,041,722 12,808,375
----------- -----------
Equity and liabilities
Capital and reserves attributable to equity holders of the parent
Share capital 2,103,202 2,103,202
Capital redemption reserve 711,117 711,117
Merger reserve 2,402,674 2,402,674
Retained profits 5,785,560 7,553,900
Total equity 11,002,553 12,770,893
----------- -----------
Current liabilities
Trade and other payables 39,169 37,482
Total equity and liabilities 11,041,722 12,808,375
----------- -----------
The above Consolidated Statement of Financial Position should be
read in conjunction with the accompanying notes in the Company's
full Annual Report and Financial Statements.
Consolidated statement of changes in equity for the year ended
30 June 2021
Attributable to equity holders of the Group
Capital Total
Share Share Redemption Merger Retained Shareholders
30 June 2021 Capital Premium Reserve Reserve Profits Equity
GBP GBP GBP GBP GBP GBP
At 1 July 2020 2,103,202 - 711,117 2,402,674 7,553,900 12,770,893
Loss for the year - - - - (1,579,988) (1,579,988)
Other comprehensive income:
Share of other comprehensive
loss of associate - - - - (188,352) (188,352)
---------- --------- ------------ ---------- ------------ --------------
Total comprehensive loss for
the period - - - - (1,768,340) (1,768,340)
At 30 June 2021 2,103,202 - 711,117 2,402,674 5,785,560 11,002,553
---------- --------- ------------ ---------- ------------ --------------
The following describes the nature and purpose of each reserve
within owners' equity:
Share capital Amount subscribed for shares at nominal
value.
Share premium Amount subscribed for share capital in
excess of nominal value.
Capital redemption Amounts arising from the purchase by the
reserve group of its own shares.
Merger reserve Amounts arising from the merger of subsidiary
investments.
Retained profits Cumulative profit of the Group attributable
to equity shareholders.
Attributable to equity holders of the Group
Capital Total
Share Share Redemption Merger Retained Shareholders
30 June 2020 Capital Premium Reserve Reserve Profits Equity
GBP GBP GBP GBP GBP GBP
At 1 July 2019 2,103,202 - 711,117 2,402,674 9,450,670 14,667,663
Loss for the year - - - - (1,107,854) (1,107,854)
Other comprehensive income
Share of other comprehensive
profit of associate - - - - 262,707 262,707
---------- --------- ------------ ---------- ------------ --------------
Total comprehensive profit
for the period - - (845,147) (845,147)
Dividends paid (1,051,623) (1,051,623)
---------- --------- ------------ ---------- ------------ --------------
At 30 June 2020 2,103,202 - 711,117 2,402,674 7,553,900 12,770,893
---------- --------- ------------ ---------- ------------ --------------
Consolidated statement of cash flows for the year ended 30 June
2021
Year ended Year ended
30 June 30 June
2021 2020
GBP GBP
------------ ------------
Cash flow from operating activities
Loss before taxation (1,575,054) (1,133,437)
Adjustments for:
Share of loss / (profit) from associate 1,470,048 (125,294)
Impairment of investment in associate - 1,160,843
Finance income (23) (712)
Corporation taxes recovered 29,941 -
Net cash flow used in operating activities before changes in working capital (75,088) (98,600)
(Decrease) / Increase in trade and other receivables (29,446) 1,849
Increase in trade and other payables 1,687 7,820
Net cash flow used in operating activities (102,847) (88,931)
Investing activities
Dividend received - 1,026,884
Interest received 23 712
Net cash flow from investing activities 23 1,027,596
Financing activities
Dividends paid - (1,051,623)
Net cash flow used in financing activities - (1,051,623)
Net decrease in cash and cash equivalents in the year (102,824) (112,958)
Cash and cash equivalents at the beginning of the year 270,654 383,612
------------ ------------
Cash and cash equivalents at the end of the year 167,830 270,654
------------ ------------
The above Consolidated Statement of Cash Flows should be read in
conjunction with the accompanying notes in the Company's full
Annual Report and Financial Statements.
Notes to the consolidated financial information
1. Basis of preparation and significant accounting policies
The consolidated financial information set out above does not
constitute the Group's financial statements for the years ended 30
June 2021 or 30 June 2020 but is derived from those financial
statements. Statutory financial statements for 2020 have been
delivered to the Registrar of Companies and those for 2021 have
been approved by the board and will be delivered in due course. The
auditors have reported on the 2020 and 2021 financial statements
which carried an unqualified audit report, did not include a
reference to any matters to which the auditor drew attention by way
of emphasis and did not contain a statement under section 498(2) or
498(3) of the Companies Act 2006.
While the financial information included in this announcement
has been compiled in accordance with, inter alia, International
Financial Reporting Standards (IFRS), this announcement does not in
itself contain sufficient information to comply with IFRS. The
accounting policies used in the preparation of this announcement
are consistent with those in the full financial statements
including those applicable to SIS, given its materiality to the
Group as a whole.
CMG is an AIM quoted public limited company registered in
England and Wales where it is domiciled for tax purposes. Its
financial statements are prepared under the historical cost
convention.
Going concern
The directors can report that based on the Group's budgets and
financial projections, they have satisfied themselves that the
business is a going concern covering a period of at least twelve
months from the date of approval of the financial statements. In
assessing the Group as a going concern, the directors are also
mindful of the business of SIS that provides the entire value of
the Group. The directors are satisfied that SIS is a going concern.
The Board has a reasonable expectation that the Company and its
Group have adequate resources and facilities to continue in
operational existence for the foreseeable future and therefore the
accounts are prepared on a going concern basis.
2. Investment in associate
Year Ended 30 June 2021 Group
GBP
Cost
At 1 July 2020 12,474,980
Share of loss - 2021 (1,470,048)
Share of other comprehensive
loss - 2021 (188,352)
Dividend received - 2021 -
Impairment of equity-accounted -
associate
At 30 June 2021 10,816,580
Year Ended 30 June 2020 Group
GBP
Cost
At 1 July 2019 14,274,706
Share of profit - 2020 125,294
Share of other comprehensive
loss - 2020 262,707
Dividend received - 2020 (1,026,884)
Impairment of equity-accounted
associate (1,160,843)
-----------
At 30 June 2020 12,474,980
-----------
The Group's interest in its associate, SIS, a company
incorporated in England and Wales, is held by Alternateport
Limited. Alternateport Limited holds an investment of 20.54% in the
equity share capital of SIS and is entitled to appoint a director
and alternate director to the SIS board. This right has been
exercised since acquisition. Alternateport Limited is a wholly
owned subsidiary of Catalyst Media Holdings Limited, a wholly owned
subsidiary of Catalyst Media Group plc.
A copy of the strategic forecasts prepared by SIS was made
available to the Directors of CMG showing management forecasts of
the income statement, statement of financial position and
statements of cash flow. SIS's management have assumed a growing
level of future profits at a steady rate over a period of five
years. CMG's management have used these assumptions and further
applied a discount rate of 15% to arrive at a present value. In
conjunction with these forecasts, the potential impact of the
settlement of the ongoing TRP litigation has also been considered
and CMG's management have applied further sensitivities in respect
of other commercial factors including the risk of renewal of
several media rights contracts over the forecast period, and the
impact of the forecast growth of SIS on the level of its support
costs.
After reviewing the forecasts and other factor detailed above,
the Directors concluded that the carrying value of the investment
in SIS of GBP10.8m is appropriate and no impairment is required to
this value. The Directors have also concluded that there is
insufficient indication or circumstances justifying a reversal of
previously recognised impairment charges.
Share of profit of associate 2021 2021 2020
CMG share CMG share
SIS Total
GBP'000 GBP'000
GBP'000
Revenue 130,107 26,724 43,667
---------- ----------- ----------
Operating (loss) / profit
after individually significant
items (8,297) (1,704) 743
Net interest receivable 307 63 155
Profit / (losses) on
individually significant
items (622) (128) (735)
(Loss) / Profit before
tax (8,612) (1,769) 163
Taxation 1,455 299 (38)
---------- ----------- ----------
Share of loss / (profit)
after taxation (7,157) (1,470) 125
---------- -----------
Net income from associate (7,157) (1,470) 125
---------- ----------- ----------
Other comprehensive
income:
Actuarial (loss) / gain (1,411) (290) 404
Deferred tax 494 101 (141)
(917) (188) 263
Share of net assets
and liabilities of associate
Gross assets 100,419 20,629 19,957
Net liabilities (47,771) (9,812) (7,482)
---------- ----------- ----------
Net equity 52,648 10,817 12,475
---------- ----------- ----------
As at 30 June 2021, SIS was continuing to deal with tax and
legal issues that arose from the 2010 Commonwealth Games (CWG) in
Delhi, India. SIS, via a partnership in the name of SIS Live,
delivered the host broadcast production and facilities contract for
the 2010 CWG. Given continuing scrutiny of the entire CWG project
immediately after the closure of the Games, approximately 40% of
the contract has still not been paid. A provision of GBP5.9 million
was made in respect of this non-payment in SIS's financial
statements for its financial year ended 31 March 2011. There has
been no subsequent movement on this provision to 30 June 2021.
SIS Live received a draft assessment in March 2014 from Indian
tax authorities in relation to the year ended March 2011. SIS has
strongly rejected the draft assessment, and continues to appeal it
through the Indian judiciary system. As appeal proceedings continue
it is not possible to quantify the potential tax liability that may
arise or the subsequent recoverability of that amount through the
courts and therefore no further provision has been made in the
accounts of SIS.
As at 30 June 2021, SIS continued to be involved in a litigation
case brought by The Racing Partnership ("TRP") and others against
SIS's subsidiary, Sports Information Services Limited ("SISL"), and
others. SISL has successfully defended two of the three claims and,
following the year end, both SISL and TRP have been granted
permission by the judge to appeal elements of the judgement. SISL
have been ordered by the judge to pay 20% of TRP's costs. The full
outcome of the litigation was still unknown at the year end of CMG.
The Directors of SIS included an estimate of the total costs of the
claim within SIS's results to 31 March 2021.
No adjustment has been to 30 June 2021 on the basis that there
have been no further developments to either case since 31 March
2021.
On 30 June 2021, SIS acquired 25% of the share capital of
Racelab Pty Limited for a net consideration of GBP2.9m with a
potential to acquire a further shareholding in future years. While
the acquisition of Racelab Pty Limited is a significant event
arising after SIS's financial reporting date of 31 March 2021, the
Directors have concluded that its impact on the Group's share of
SIS's results to 30 June 2021 is immaterial and therefore does not
require adjusting for.
3. Post balance sheet events
There were no events subsequent to the Statement of Financial
Position which require disclosure.
See note 2 of the full Annual Report and Financial Statements
for a description of the impact of the post balance sheet events as
they relate to SIS's reporting date (31 March 2021) on the Group's
valuation of its investment in associate as at 30 June 2021.
- ENDS -
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