Vitesse Media plc (“Vitesse”, the “Company” or the “Group”) announces its audited final results for the 14-month period ended 31 March 2017 (the “14-month period”), the Company’s new financial year end. References in this announcement to the preceding period, being the year ended 31 January 2016, are to the “prior year”.
- Total Normalised Revenue* increased by 26% in the 14-month period to £2,688k (prior year:
- Events revenue in the 14-month period increased by 45% to £1,263k (prior year: £870k)
- Gross profit margin in the 14-month period reduced to 65% from 70% in the prior year due to
- higher revenue in the Events division, which generally has slightly lower margins than the
- traditional media mix of business in Vitesse
- Operating loss before non-recurring costs** in the 14-month period increased to £12k (prior year: £7k)
- The Group’s balance sheet has improved over the 14-month period with a strong improvement in cash from operations compared to the position at the prior year end resulting in an underlying reduction in payables and loans
- An impairment of assets has been made during the 14-month period which included the Group’s discontinued crowdfunding project, some of the Group’s websites (prior to their relaunch) and paper stock.
* Total Normalised Revenue comprises total revenue less non-recurring costs
** Non-recurring costs mainly comprise the impairment of the Group’s discontinued crowdfunding project; the impairment of some of the Group’s websites (prior to their relaunch); and the write-off of paper stock for the Group’s printed magazines
Overview of Results
In addition to changing the Company’s financial year end, by extending the period by two months to 31 March 2017, we have separately identified non-recurring costs in the income statement thereby seeking to increase transparency. Overall, we have been building on the prior year’s success, in
particular by launching new events, whilst relaunching all of our websites, which has increased traffic across our sites.
The Board is not recommending payment of a dividend.
Commentary on results
The increase in the Group’s revenue in the 14-month period compared to the prior year is almost entirely due to the continued focus on, and success of, the Group’s Events division. This included positive inaugural events for British Small Business and Tech Leaders Summit together with the continuing success of Women in IT and Investor All Stars. The media business remained relatively flat with a small increase in both lead generation and subscription revenues.
Cost of Sales
Cost of sales in the 14-month period have increased mainly due to the success of the Group’s events held throughout the period, including the launch of new events to continue the Group’s expansion of this division.
During the 14-month period, our admin expenses have included a number of non-recurring costs. Taking this into account, while the pro-rated Admin expenses are up compared to the prior year, as a percentage of revenue, they are lower than in the prior year, which we anticipate will be a continuing trend.
There were sizeable £176k of non-recurring costs included in admin expenses for the 14-month period. The main components were: the impairment of the Group’s discontinued crowdfunding project; the impairment of some of the Group’s websites (prior to their relaunch); and the write-off of paper stock for the Group’s printed magazines.
The operating loss for the 14-month period was £188,462 (prior year: £195,481).
Trading in the current year to date is in line with the Board’s expectations. The Board’s strategy has been to focus the Group’s resources on the Events division where it sees more opportunities. We intend to continue with this strategy, whilst at the same time, we intend to invest in our media businesses, which we believe will improve the Group’s performance in what is a changing market.
The business is in a much stronger position than it has been for some time and the Board is confident this will be reflected in the Group’s trading performance in the year ahead.
Notice of AGM and publication of Annual Report
The Company’s Annual General Meeting is due to be held on 26 September 2017 at 10.00am at the offices of Stephenson Harwood LLP, 1 Finsbury Circus, London EC2R 7SH.
The notice of meeting together with the Annual Report & Accounts will be dispatched to shareholders in due course and will be available on the Company’s website at www.vitessemedia.com, when published.
A copy of this announcement will be posted today on the Company’s website.
For further information, please contact:
Vitesse Media Plc Tel 020 7250 7010
Dave Smith, Non-Executive Chairman
Niki Baker, Chief Executive
Stockdale Securities Limited Tel 020 7601 6100
Tom Griffiths/David Coaten