TIDMCHS
RNS Number : 2668E
Chrysalis PLC
17 December 2009
?
17 December 2009
CHRYSALIS PLC
Preliminary results for the 12 months ended 30 September 2009 (unaudited)
Chrysalis PLC today announces its unaudited preliminary results for the 12
months ended
30 September 2009. The Group changed its financial year end in 2008 to 30
September.
The comparative figures are for the 13 months ended 30 September 2008.
+-----------------------------------------+-----------------+-----------------+
| GBP'm | 12 months ended | 13 months ended |
| | | |
| | 30 September | 30 September |
| | 2009 | 2008 |
+-----------------------------------------+-----------------+-----------------+
| | | |
+-----------------------------------------+-----------------+-----------------+
| Revenue | 62.9 | 54.1 |
+-----------------------------------------+-----------------+-----------------+
| Consolidated NPS1 | 13.4 | 11.3 |
+-----------------------------------------+-----------------+-----------------+
| Normalised operating profit/(loss)2 | 3.3 | (1.0) |
+-----------------------------------------+-----------------+-----------------+
| Normalised profit/(loss) before tax2 | 0.5 | (0.7) |
+-----------------------------------------+-----------------+-----------------+
| Operating profit/(loss) | 2.2 | (20.0) |
+-----------------------------------------+-----------------+-----------------+
| Loss before tax3 | (3.8) | (18.8) |
+-----------------------------------------+-----------------+-----------------+
| Basic loss per share (pence) | (5.74)p | (21.20)p |
+-----------------------------------------+-----------------+-----------------+
| Net debt | 15.8 | 11.5 |
+-----------------------------------------+-----------------+-----------------+
+--+--+------------------------------------------------------------------------+--+--+
| Results Highlights |
+------------------------------------------------------------------------------------+
| * | Chrysalis PLC delivering on the strategy set out in 2008: focus on growing |
| | NPS, controlling overheads and increasing profits |
+-----+------------------------------------------------------------------------------+
| * | * Chrysalis PLC revenues, operating profit and NPS all ahead of Board's |
| | expectations |
+-----+------------------------------------------------------------------------------+
| * | * Chrysalis Music's consolidated NPS increased by 18.6% to GBP13.4m (12 |
| | months to September 2008: GBP11.3m) and by 7.1% to GBP12.1m on constant |
| | currency4 basis |
+-----+------------------------------------------------------------------------------+
| * | * Lasgo Chrysalis outperformed the Board's expectations with a 66.7% rise |
| | in operating profit to reach GBP2.0m (13 months to 30 September 2008: |
| | GBP1.2m) |
+-----+------------------------------------------------------------------------------+
| * | * High profile new signings include Fleet Foxes, The Horrors, Big Pink |
| | and Teddy Thompson |
+-----+------------------------------------------------------------------------------+
| * | * Successful integration of Richard Marx catalogue acquired in June 2009 |
+-----+------------------------------------------------------------------------------+
| * | * Solid financial position with unused securitisation facility of GBP32.4m |
| | available primarily for catalogue acquisitions |
+-----+------------------------------------------------------------------------------+
| * | * Encouraging release schedule in current financial year - including Robbie |
| | Williams, Cee-Lo Green, Estelle and Ray LaMontagne, plus increased income |
| | from The Beatles and Michael Jackson |
+-----+------------------------------------------------------------------------------+
| * | Current trading in line with the Board's expectations |
+-----+------------------------------------------------------------------------------+
| 1. | Net Publisher's Share (NPS) is the revenue received by a music |
| | publisher, less any royalties that have to be paid to writers, |
| | performers and others receiving a share of royalties. The comparative |
| | period is for the 12 months ended 30 September 2008. |
+-----+------------------------------------------------------------------------+
| 2. | Normalised measures are stated before separately disclosed items. See |
| | notes 2 and 3 to the attached financial information for further |
| | details. The Group believes that the normalised measures provide |
| | additional guidance to the statutory measures of the performance of |
| | the business during the period. These measures are not defined under |
| | Adopted IFRS and therefore may not be directly comparable with other |
| | companies adjusted profit measures. It is not intended to be a |
| | substitute for or superior to Adopted IFRS measurements of profit. |
+-----+------------------------------------------------------------------------+
| 3. | The loss before tax is operating profit after charging net finance |
| | costs of GBP6.0m, which includes a GBP3.2m charge in respect of the |
| | fair value movements in derivative financial instruments. |
+-----+------------------------------------------------------------------------+
| 4. | Constant currency results are calculated by restating current period |
| | local currency amounts using prior period exchange rates. |
+--+--+------------------------------------------------------------------------+--+--+
Commenting on the results, Jeremy Lascelles, Chief Executive, said:
"In a year of economic decline and continuing volatility in the record industry,
Chrysalis has increased revenues, profits and NPS from each of its divisions and
once again outperformed its competitors. This performance is testament to the
strategy we have been implementing over the past 18 months, the quality of our
publishing assets, the strength of our A&R decisions and the hard work of our
staff. What is also pleasing is the number of different writers and artists who
have contributed to this success - we are not overly reliant on a handful of
artists. Our current and future releases also make me believe that we can
continue to build on this success in 2010."
Enquiries:
+----------------------------------------------+---------------------------------------+
| Chrysalis PLC | |
+----------------------------------------------+---------------------------------------+
| Jeremy Lascelles, Group Chief Executive | 020 7465 6170 or 07767 436 300 |
+----------------------------------------------+---------------------------------------+
| Andy Mollett, Group Finance Director | 020 7465 6195 or 07825 781 785 |
+----------------------------------------------+---------------------------------------+
| | |
+----------------------------------------------+---------------------------------------+
| Brunswick | |
+----------------------------------------------+---------------------------------------+
| Tim Burt/Dania Saidam | 020 7404 5959 |
+----------------------------------------------+---------------------------------------+
| | |
+----------------------------------------------+---------------------------------------+
| Analyst Meeting: | 17 December 2009 at 9.30am |
+----------------------------------------------+---------------------------------------+
| | |
+----------------------------------------------+---------------------------------------+
| Venue: | Investec |
+----------------------------------------------+---------------------------------------+
| | 2 Gresham Street |
+----------------------------------------------+---------------------------------------+
| | London EC2V 7QP |
+----------------------------------------------+---------------------------------------+
ABOUT CHRYSALIS PLC
Chrysalis PLC is an independent music company. The Group's principal areas of
business comprise: Chrysalis Music Publishing which includes the Group's
international network of music publishing companies, whose purpose it is to
exploit and grow Chrysalis's rich catalogue of music copyrights; Chrysalis Non
Music Publishing, which is made up of The Echo Label, a copyright exploitation
company; Chrysalis Copyrights, the owner of certain Master recordings and
Flatiron Management, an artist management company. Chrysalis PLC also owns Lasgo
Chrysalis, a UK-based wholesale entertainment product distribution business
which serves both domestic and overseas wholesale, retail and entertainment
markets with CD, DVD and book products.
CHIEF EXECUTIVE'S STATEMENT
The past financial year has been very encouraging for Chrysalis. We have made
excellent progress in each of our divisions, and the financial results for the
twelve months to 30 September 2009 are ahead of the Board's expectations, with
some areas delivering an outstanding performance. Revenue for the 2009 financial
period increased by 16.3% to GBP62.9m (13 months to 30 September 2008: GBP54.1m)
- the Group has become profitable and delivered normalised operating profit of
GBP3.3m against a loss of GBP1.0m for the 13 months to 30 September 2008. Of
particular note is the performance of Lasgo Chrysalis, which delivered revenue
of GBP23.7m (13 months to 30 September 2008: GBP20.9m) and increased normalised
operating profit by 66.7% to GBP2.0m (13 months to 30 September 2008: GBP1.2m).
Chrysalis Music also delivered a normalised operating profit of GBP3.0m,
reversing a normalised operating loss of GBP0.1m for the 13 months to 30
September 2008. The consolidated NPS for the period increased by 18.6% to reach
GBP13.4m (12 months to September 2008 consolidated NPS: GBP11.3m). On a
constant currency basis consolidated NPS was GBP12.1m, up 7.1%. It is
particularly heartening that these results have been achieved in a period of
global economic instability.
Much of the improved performance at Chrysalis, particularly the increased
profitability of the Group and the uplift in NPS, follows the successful
implementation of our restructuring and the new strategy announced in the second
half of 2008. Chrysalis Music has emerged with a streamlined cost base and a
renewed focus on growing its consolidated NPS.
Chrysalis Music's publishing division has had notable chart success over the
period from our artists including, White Lies, Fleet Foxes, David Gray, The
Cribs, Yeah Yeah Yeahs, The Gossip and the Mercury-award nominated act, Bat for
Lashes. Our writers have made significant contributions to the success of
chart-topping artists including Kanye West, The Priests, Tinchy Stryder, James
Morrison, Shakira and Whitney Houston. In the US we had success with Mastodon,
Bon Iver, TV On The Radio and Ray LaMontagne, amongst others.
We have also made great progress in our commitment to strengthen the Chrysalis
music publishing catalogue both organically - through new signings and better
exploitation of existing copyrights - and by acquisition. New songwriters who
have signed to Chrysalis in 2009 include Fleet Foxes, Big Pink, The Horrors and
Teddy Thompson. In June 2009 we made our first major catalogue acquisition in
over six years, with the purchase of the Richard Marx collection of copyrights
for a total consideration of US$8.0m, US$7.5m paid in cash and the balance
payable in five years.This brings with it a number of well known and classic
songs including "Right Here Waiting", "Hazard", "Endless Summer Nights" and
"Dance With My Father". These additional copyrights have been absorbed without
altering the cost base of our publishing activities and will improve the
profitability of the division.
We continue to review appropriate catalogue acquisitions and we currently have
an unused credit facility of GBP32.4m on which we are able to draw on 10 March
2010 and 10 September 2010.
The Echo Label and Chrysalis Copyrights are now being run as pure copyright
exploitation companies. Encouragingly, both companies produced a profit in 2009
and their NPS is now included within the reported consolidated NPS figure of
GBP13.4m.
Lasgo Chrysalis has performed well ahead of the Board's expectations in the
period, and once again demonstrated the flexibility of its business model. The
management team was rapidly able to take advantage of the unique market
opportunity provided by the failure of a number of distributors in the UK
entertainment product market.
We have remained focused on minimising the corporate overhead, which was
substantially lower at GBP1.7m (13 months to 30 September 2008: GBP2.2m). In
line with our strategy to review our office buildings in London, we have repaid
the mortgage on the Bramley Road premises and are currently marketing the
freehold.
These results and the progress we have made in implementing our strategy could
not have been achieved without the dedication and hard work of all our staff at
Chrysalis Music and Lasgo Chrysalis. I would like to thank everyone for the
huge contribution that they have made to making 2009 a successful financial
year.
CURRENT TRADING AND OUTLOOK
Chrysalis Music
In the current financial year, both Chrysalis' publishing and non publishing
activities are trading in line with the Board's expectations.
The benefit of successful album releases during the autumn - from artists such
as David Gray, Athlete and The Cribs - will flow through into the 2010 financial
year, along with the income from our share of albums by Robbie Williams, The
Black Eyed Peas, Jay-Z, JLS, Snow Patrol and Cheryl Cole, where we have
songwriter representation. There is a solid release schedule for the current
year with new albums expected from Cee-Lo Green, Estelle, Laura Marling and Ray
LaMontagne, amongst others.
In addition, we will receive income from The Beatles' digitally re-mastered
catalogues released in late September 2009, for which we hold George Martin's
producer master rights. We also expect increased earnings from the Michael
Jackson songs we publish, including "Thriller" and "Off the Wall", alongside the
benefits from the 40th anniversary of the classic song "My Way" written by Paul
Anka. Additionally, our writers, Justin Vernon (Bon Iver), The Black Rebel
Motorcycle Club and Steve Schlitz (Hurricane Bells) have contributed three songs
to the soundtrack to "New Moon", the latest in the Twilight series of films.
With this in mind the Board is hopeful that consolidated NPS will increase again
in 2010.
Lasgo Chrysalis
Lasgo Chrysalis' performance in the current financial year is broadly in line
with the corresponding period in 2009. It should be noted, however, that the
exceptional performance by Lasgo Chrysalis in the second half of 2009 is
unlikely to be repeated in the current financial year. The Board is mindful
that Lasgo Chrysalis trades in the volatile entertainment product retail market,
which is very sensitive to the prevailing economic climate.
In line with the strategy presented in 2008, the Board of Chrysalis remains
committed to ensuring that the day-to-day performance of both Chrysalis Music
and Lasgo Chrysalis, as well as the future strategic direction of these
businesses, is optimal in enhancing the value of its core assets and thereby
delivering a return for all shareholders.
Jeremy Lascelles
Chief Executive
16 December 2009
BUSINESS REVIEW
CHRYSALIS MUSIC
Publishing
+----------------------------+-------------------+-------------------+
| GBP'm | 12 months ended | 13 months ended |
| | 30 September | 30 September |
| | 2009 | 2008 |
+----------------------------+-------------------+-------------------+
| | | |
+----------------------------+-------------------+-------------------+
| Revenue | 36.0 | 29.6 |
+----------------------------+-------------------+-------------------+
| Normalised operating | 2.2 | 0.4 |
| profit | | |
+----------------------------+-------------------+-------------------+
| Normalised profit before | 1.9 | 0.2 |
| tax | | |
+----------------------------+-------------------+-------------------+
For the period ended 30 September 2009, revenue at Chrysalis Music Publishing
increased to GBP36.0m (13 months ended 30 September 2008: GBP29.6m) and
normalised operating profit for the period increased to GBP2.2m (13 months ended
30 September 2008: GBP0.4m). The improved profitability of the publishing
operations has, in part, been driven by the period-on-period increase in NPS
from GBP10.7m for the 12 months to 30 September 2008 (including GBP0.5m of
accelerated NPS) to GBP12.3m for the 12 months to 30 September 2009. It also
reflects the lower level of A&R write-off which was GBP1.5m lower than in the
prior period at GBP1.0m. The reduced A&R write-off related to a lower level of
unproven new signings in the period.
The catalogue has performed extremely well in 2009. There was a healthy mix of
income generated by both back catalogue copyrights and a number of our more
recent signings. Our top earners for the year featured a number of our
'evergreen' artists including Blondie, David Bowie, Paul Anka, Outkast, Billy
Idol, Labi Siffre, Ray LaMontagne, Brian Burton (Dangermouse), Johnta Austin and
Morcheeba. The success of our A&R team in recent years is demonstrated by the
number of new signings that are now contributing significantly to the Group's
performance including Fleet Foxes, Bon Iver, Jason Harrow (Kardinal Offishal),
White Lies and The Bravery.
In 2009 we have continued with our strategy of prudent investment in A&R and our
commitment to new talent. In the UK we signed the Fleet Foxes, Big Pink and The
Horrors; and in the US we signed Low Anthem, St. Vincent, Edward Sharpe and the
Magnetic Zeros and Teddy Thompson, amongst others.
In June 2009 we acquired the Richard Marx catalogue for a total consideration of
US$8.0m, comprising US$7.5m paid in cash and the balance payable in five years -
our first acquisition of a major publishing catalogue in six years. This is in
line with our strategy to grow the number of copyrights in our music publishing
catalogue, without growing the administrative cost base. The catalogue includes
a number of well-known classic songs and will be a valuable addition to our
existing catalogues. In addition to selling over 30 million records as a
recording artist, Richard Marx has written 37 Top 30 hits including 13 US No.
1s.
The unexpected death of Michael Jackson in June this year has prompted an
extraordinary surge in the sale and airplay of his work. Chrysalis publishes a
number of his best known hit songs including "Thriller", "Rock With You" and
"Off The Wall" through our writer Rod Temperton. Any benefit from the use and
sale of these works is expected to be reflected in 2010.
Non-Publishing
+--------------------------------+-------------------+-------------------+
| GBP'm | 12 months ended | 13 months ended |
| | 30 September | 30 September |
| | 2009 | 2008 |
+--------------------------------+-------------------+-------------------+
| | | |
+--------------------------------+-------------------+-------------------+
| Revenue | 3.2 | 3.6 |
+--------------------------------+-------------------+-------------------+
| Normalised operating | 0.8 | (0.4) |
| profit/(loss) | | |
+--------------------------------+-------------------+-------------------+
| Normalised profit/(loss) | 0.8 | (0.4) |
| before tax | | |
+--------------------------------+-------------------+-------------------+
The Echo Label
Revenue for The Echo Label was GBP1.1m in 2009 (13 months to 30 September 2008:
GBP1.2m). The Echo Label produced a normalised operating profit of GBP0.4m, up
from a loss of GBP0.8m for the 13 months to 30 September 2008.
The Echo Label now trades as a pure copyright exploitation company, which
represents master recording copyrights of artists including Feeder, Moloko,
Morcheeba, Bat For Lashes, Brendan Benson, Nerina Pallot and Black Rebel
Motorcycle Club.
Chrysalis Copyrights
Revenue for Chrysalis Copyrights was GBP1.5m in 2009 (13 months ended 30
September 2008: GBP2.1m). Normalised operating profit for 2009 was GBP0.2m (13
months ended 30 September 2008: GBP0.4m).
Chrysalis Copyrights owns rights in master recordings by Tom Jones and Engelbert
Humperdinck, as well as George Martin's producer royalties for The Beatles. The
benefit of the digital re-mastering of the entire Beatles back catalogue will
come through in 2010, along with royalties associated with The Beatles Rock Band
video game, for which we have high hopes.
Flatiron Management
Revenue for Flatiron Management was GBP0.6m in 2009 (13 months ended 30
September 2008: GBP0.3m). Normalised operating profit was up by GBP0.2m from
breakeven for the 13 months ended 30 September 2008.
Flatiron Management represents amongst others, the Grammy-nominated My Morning
Jacket and Flight of the Conchords. My Morning Jacket completed an extensive 40
date tour of North America, culminating in a sold-out New Year's Eve show at
Madison Square Gardens in New York. Bandleader Jim James was also part of the
"supergroup" Monsters of Folk, who released an album in 2009 and embarked on a
sold-out tour of North America and Europe. The second Flight of the Conchords
HBO TV series (shown in the UK on BBC4) was aired in the summer of 2009. A
recently completed and hugely successful 38 date tour of the US in 2009 will be
followed by the band's eagerly-awaited first ever tour of Europe in the spring
of 2010. Their second album "I Told You I Was Freaky" was released in 2009.
Net Publisher's Share - Analysis
Following the reclassification of the gross profit from The Echo Label and
Chrysalis Copyrights as NPS in 2009, we are now reporting both a 'Consolidated
NPS' figure for Chrysalis Music and the individual NPS figures for both the
Publishing and Non-Publishing activities.
+------------------+-------------------+-----------------------+---+------------------------+---+-----------------------+
| | 12 months ended 30 September 2009 | | 12 months ended | | 13 months ended |
| | | | 30 September 2008 | | 30 September 2008 |
+------------------+-------------------------------------------+---+------------------------+---+-----------------------+
| GBPm | Reported rates | Constant currency | | Reported rates | | Reported rates |
+------------------+-------------------+-----------------------+---+------------------------+---+-----------------------+
| | | | | | | |
+------------------+-------------------+-----------------------+---+------------------------+---+-----------------------+
| Publishing | 12.3 | 11.0 | | 10.7 | | 11.0 |
+------------------+-------------------+-----------------------+---+------------------------+---+-----------------------+
| Non Publishing | 1.1 | 1.1 | | 0.6 | | 0.6 |
+------------------+-------------------+-----------------------+---+------------------------+---+-----------------------+
| Consolidated | 13.4 | 12.1 | | 11.3 | | 11.6 |
+------------------+-------------------+-----------------------+---+------------------------+---+-----------------------+
The breakdown of NPS at Chrysalis Music's publishing activities has continued to
evolve. Once again income generated by the higher margin area of Performance
(public broadcast, live performance) exceeded that of Mechanical income (sale of
physical product) - GBP4.6m for Performance and GBP4.2m for Mechanical. In 2009
Performance income accounted for 37.6% of NPS (2008: 40.0%). This was helped by
James Morrison's single Broken Strings (co-written by Chrysalis writers Fraser T
Smith and Nina Woodford), two number one singles by Tinchy Stryder and one by
Taio Cruz, all co-written by Fraser T Smith.
Encouragingly, in the face of the widely reported decline in CD sales,
Mechanical income has remained fairly stable and accounted for 34.5% of NPS
(2008: 33.7%) with good contributions from Fleet Foxes, White Lies, and No I.D.,
a US writer.Synchronisation (the use of music in TV/Film or advertising)
accounted for 27.9% (2008: 26.3%), with our copyrights being used worldwide as
the sound-track to many advertisements including Billy Idol's "White Wedding"
for Peugeot and Mick Jackson's "Blame It On The Boogie" for LG Phones in the UK;
Paul Anka's "She's A Lady" for Tropicana in the US; and Blondie's "Heart Of
Glass" for Gucci in France and the UK. Digital income remains small,
approximately 9.6% of NPS, mostly reported within the Mechanical income stream.
LASGO CHRYSALIS
Lasgo Chrysalis produced an excellent performance in the 2009 financial period,
and for the second year running far exceeded the initial expectations of the
Board. Revenue increased by 13.4% to GBP23.7m for the period (period 13 months
to September 2008: GBP20.9m) and normalised operating profit rose by over 66% to
reach GBP2.0m (13 months to September 2008: GBP1.2m).
+-----------------------------+-------------------+-------------------+
| GBP'm | 12 months ended | 13 months ended |
| | 30 September | 30 September |
| | 2009 | 2008 |
+-----------------------------+-------------------+-------------------+
| | | |
+-----------------------------+-------------------+-------------------+
| Revenue | 23.7 | 20.9 |
+-----------------------------+-------------------+-------------------+
| Normalised operating profit | 2.0 | 1.2 |
+-----------------------------+-------------------+-------------------+
| Normalised profit before | 2.0 | 1.2 |
| tax | | |
+-----------------------------+-------------------+-------------------+
Over the past 12 months we have witnessed the failure of a number of high
profile companies operating within the UK entertainment products market: Zavvi,
the high street retailer; Pinnacle Entertainment, the distributor; and
Entertainment UK, the distribution arm of Woolworths plc. The result of these
failures is that many small to medium sized record and DVD companies whose
products were distributed by Pinnacle and Entertainment UK have not only lost
their route to market, but also their largest customers - Woolworths and Zavvi.
The ensuing disruption caused by these corporate failures has provided a unique
opportunity for Lasgo Chrysalis; which was not only able to purchase
competitively priced stock from the Administrators of these failed distribution
companies, but also experienced increased demand from both new and existing
customers no longer being served by Entertainment UK or Pinnacle.
Encouragingly, all areas of Lasgo Chrysalis performed well over the period and
all contributed towards the improved financial result. Our CD and DVD business
remained resilient despite the continuing worldwide decline in demand for CDs,
as well as indications that the consumer demand for DVDs has peaked. Although
Blu-Ray has been widely promoted, we are yet to see a sustained take-up of this
format, and therefore this aspect of our business remains challenging. Our Book
business has had an excellent year, but the marketing of products such as the
Kindle, which allow books to be read on a digital reader, potentially pose a
threat to the physical book industry.
Throughout the 2009 financial period the management team has continued to
exercise tight control over the gross profit margin and overheads. This, in
addition to the unique trading environment, resulted in the exceptional boost to
the operating results of Lasgo Chrysalis and the 66.7% period-on-period
increase. It should, however, be noted that such circumstances are unlikely to
recur in the current financial year.
FINANCIAL REVIEW
+-----------------------------------------+-----------------+-----------------+
| GBP'm | 12 months ended | 13 months ended |
| | | |
| | 30 September | 30 September |
| | 2009 | 2008 |
+-----------------------------------------+-----------------+-----------------+
| | | |
+-----------------------------------------+-----------------+-----------------+
| Revenue | 62.9 | 54.1 |
+-----------------------------------------+-----------------+-----------------+
| Consolidated NPS1 | 13.4 | 11.3 |
+-----------------------------------------+-----------------+-----------------+
| Normalised operating profit/(loss) | 3.3 | (1.0) |
+-----------------------------------------+-----------------+-----------------+
| Normalised profit/(loss) before tax | 0.5 | (0.7) |
+-----------------------------------------+-----------------+-----------------+
| Operating profit/(loss) | 2.2 | (20.0) |
+-----------------------------------------+-----------------+-----------------+
| Loss before tax | (3.8) | (18.8) |
+-----------------------------------------+-----------------+-----------------+
| Basic loss per share (pence) | (5.74)p | (21.20)p |
+-----------------------------------------+-----------------+-----------------+
1. The comparative period is for the 12 months ended 30 September 2008.
Revenue increased by 16.3% from GBP54.1m to GBP62.9m. This was mainly due to
the 21.5% increase in Publishing revenue and a 13.4% increase in revenue at
Lasgo Chrysalis. This has been driven by exchange fluctuations primarily in the
Publishing division, with revenue up by 7.8% on a constant currency basis. Of
total revenue, Publishing accounted for GBP36.0m (13 months ended 30 September
2008: GBP29.6m) and Non-publishing accounted for GBP3.2m (13 months ended 30
September 2008: GBP3.6m). Lasgo Chrysalis' revenue rose to GBP23.7m (13 months
ended 30 September 2008: GBP20.9m).
The Group operating profit of GBP2.2m (13 months ended 30 September 2008: loss
GBP20.0m) includes GBP1.1m of separately disclosed items relating to the:
+--------+------------------------------------------------------------------------------------------------------+
| · | impairment of the freehold property at Bramley Road held for sale, GBP1.5m; |
+--------+------------------------------------------------------------------------------------------------------+
| · | restructuring of the corporate central service function, GBP0.1m; |
+--------+------------------------------------------------------------------------------------------------------+
| · | receipt of an early lease surrender premium, GBP0.7m credit; and |
+--------+------------------------------------------------------------------------------------------------------+
| · | amortisation of intangible assets, GBP0.3m. |
+--------+------------------------------------------------------------------------------------------------------+
The comparative period included GBP19.0m of one-off costs. Further detail is
included in note 3 to the attached financial information.
The normalised operating profit before these separately disclosed items was
GBP3.3m (13 months ended 30 September 2008: GBP1.0m loss). Publishing
normalised operating profit increased by GBP1.8m to reach GBP2.2m (13 months
ended 30 September 2008: GBP0.4m), Non-publishing normalised operating profit
improved to GBP0.8m from a loss of GBP0.4m last period, and Lasgo Chrysalis saw
normalised operating profit grow by 66.7% to GBP2.0m (13 months ended 30
September 2008: GBP1.2m). Normalised corporate overheads fell to GBP1.7m from
GBP2.2m in the 13 months ended 30 September2008, as the corporate functions
continue to be streamlined and simplified.
Interest
The Group net finance cost was GBP6.1m (13 months ended 30 September 2008:
GBP1.2m income). The net financing cost is stated after including a loss of
GBP3.2m on ineffective derivative financial instruments (13 months ended 30
September 2008: GBP0.9m gain). We have closely monitored interest rate movements
in the recent months and are increasingly of the view that we should progress
the unwinding of certain derivatives, in particular the interest rate cap and
collar. We expect to undertake this in the near future. This will result in a
cash interest saving and a reduction in the volatility of the overall charge
caused by the fair value movements. The net finance income for the 13 months
ended 30 September 2008 also benefitted from GBP2.0m of interest earned on the
Chrysalis Radio disposal proceeds prior to the cash return to shareholders.
Profit/ (loss) before tax
The normalised profit before tax for the Group for the year was GBP0.5m (13
month period ended 30 September 2008: loss of GBP0.7m). This excludes GBP0.3m
of amortisation, GBP3.2m losses on derivative financial instruments, and the
other separately disclosed items of GBP0.9m. Taking these into account, the
Group's loss before tax from continuing operations was GBP3.8m (13 months ended
30 September 2008: loss of GBP18.8m).
Tax
The tax credit of GBP116,000 for the 12 month period ended 30 September 2009 (13
months ended 30 September 2008: tax credit of GBP32,000) is substantially lower
than the statutory tax rate of 28% due to the non-recognition of deferred tax
assets in respect of unutilised tax losses.
Discontinued Operations
Discontinued operations shown in the financial results for the 13 months ended
30 September 2008 show a loss for the period of GBP0.5m relating to the
settlement with our previous Chief Executive. There are no such items this
period.
Loss per share
Our basic loss per share, which includes the separately disclosed items, was
5.74p (13 months ended 30 September 2008: 21.20p).
Dividend
It is not proposed to pay a dividend for the year ended 30 September 2009.
Future dividend policy will be determined by the Board, in relation to the
Group's ongoing earnings.
Balance Sheet
The Group's net assets have decreased significantly in period, falling from
GBP2.0m at 30 September 2008 to a net deficit of GBP4.6m, a reduction of
GBP6.6m. This principally reflects the movement in the fair value of derivative
financial instruments.
Goodwill and intangible assets
Goodwill is consistent with the prior year, with no further impairments. Other
intangible assets have increased by GBP4.6m, primarily due to the acquisition of
the Richard Marx catalogue during the year.
Working capital
Inventories have fallen GBP0.5m due to lower stocks at Lasgo Chrysalis.
Receivables and prepayments show an increase of GBP1.4m, reflecting principally
the advances in the period. The asset held for sale at GBP6.5m is the estimated
net realisable value of the freehold property at Bramley Road, as determined by
an independent valuation completed at the period end. In addition, the employee
benefit balance in 2008 of GBP1.5m due from Paternoster UK Limited following the
pension scheme buy-out has now been received.
Current liabilities of GBP38.4m are GBP4.9m lower than last year, with the
current interest-bearing loans down to GBP4.8m from GBP14.7m, as the loan notes
of GBP7.2m and property mortgage of GBP5.5m were repaid in April 2009 and March
2009 respectively. The liability position of our derivative financial
instruments has increased to GBP5.8m from GBP0.3m. As discussed earlier, we
expect to unwind the interest rate cap and collar in the near future, which will
allow us to reduce net liability position.
Long term liabilities of GBP35.1m comprise our securitisation borrowing of
GBP34.8m (stated net of unamortised issuance costs of GBP1.8m), deferred
consideration for the Richard Marx catalogue of GBP0.3m and the vacant property
provision of GBP0.9m in respect of Frestonia.
The Group's funded pension scheme, the Chrysalis Group Retirement Benefits
Scheme, was terminated on 31 January 2008 and the process of winding-up the
scheme started on that date. Although the winding-up process has not yet been
legally completed, it is in its final stages and at 30 September 2009 the Group
had settled its liability to secure members' benefits under the scheme. We do
not expect any further charges in respect of the winding-up. During the period,
the Group established a new stakeholder plan which all eligible employees can
join.
Net cash flow
The net cash outflow from operating activities for the period was GBP0.8m, an
improvement of GBP0.5m on the comparative figure for 2008 of GBP1.3m. In
addition, our net interest payments were 2.9m (13 months ended 30 September
2008: GBP2.9m). We invested GBP0.3m in property, plant and equipment during the
period (13 months ended 30 September 2008: GBP0.2m). There was one substantial
acquisition of music publishing catalogues, the Richard Marx catalogue for a
cash consideration of GBP4.6m, with a further GBP0.3m deferred for five years.
Other catalogue acquisitions were completed for GBP0.3m (13 months ended 30
September 2008: GBP0.1m).
Overall our cash and cash equivalents amounted to GBP19.2m at 30 September 2009,
a decrease of GBP1.2m on the corresponding figure for 2008 of GBP20.4m.
Our gross borrowings at 30 September 2009 amounted to GBP38.7m (13 months ended
30 September 2008: GBP33.9m) and included the music publishing securitised loan
of GBP34.9m (stated net of unamortised issuance costs amounting to GBP1.8m).
Our net debt at 30 September 2009 amounted to GBP15.8m (13 months ended 30
September 2008: net debt of GBP11.5m).
Going Concern
The Group's business activities, together with the factors likely to affect its
future development, performance and position are set out in the Key Risks and
Uncertainties section on page 12.
The Group has significant undrawn credit facilities and adequate working
capital. On the basis of current financial projections, undrawn facilities and
level of working capital, the directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence for the
foreseeable future. Accordingly, they continue to adopt the going concern basis
in preparing the annual report and accounts.
KEY RISKS AND UNCERTAINTIES
Longer than expected recovery from recession
The Group operates worldwide and, as with all international companies, is
susceptible to current weakness in the global economy. Whilst this is an
external factor, and thus beyond the Group's control, the Board regularly
reviews its progress against forecasts, in order that it is able to
appropriately adjust its business to any change in the economic backdrop.
Overall, Chrysalis is well diversified internationally, with 43.6% of its
revenue now derived from overseas territories up from 40.0% last year. Lasgo
Chrysalis's income is partially derived from the UK retail market, which is
particularly susceptible to a downturn in the UK economy, in order to manage
this risk Lasgo Chrysalis continues to broaden its customer base. Failure to
adjust to changes in the global economy as such could have a material adverse
effect on the Group's business, finances and continuing operations.
Further decline in the sales of physical music/DVD product
Both Chrysalis Music and Lasgo Chrysalis are exposed to further declines in the
sales of physical music and DVD product.
The music industry continues to face the challenge of the changing means by
which consumers choose to access music, including digital downloads, illegal
downloading and pirated product, all of which are contributing to a fall in the
sale of physical product. The industry still does not expect the downturn to be
offset by new digital and internet based revenue streams. Although as a music
publisher we are, to a certain extent, protected from price deflation in the
physical recorded music market, owing to the predominantly fixed nature of
mechanical royalties, any decline in the volume of sales of physical music
product impacts the mechanical royalty rates received by the Group and could
have a material adverse effect on the Group's business, financial condition
and/or results of operations.
80% of the revenue of Lasgo Chrysalis is generated by the sales of physical
music and DVD product. At a consumer level, there continues to be a reduction
in the average selling price of both of these formats which could result in
reduced revenue for the Group. This risk is mitigated by sustained product
diversification and active stock controls. Lasgo Chrysalis will only purchase
stock if the price is right and the demand for the product is high. The stock
holding is reviewed on a daily basis and should slow moving lines be identified,
then immediate action is taken to remedy this.
Failure to fully exploit new growth areas
There are substantial new areas within the music industry to be developed and
exploited for financial benefit. These areas include digital downloading, the
use of music on internet websites and the use of music on mobile phones. In
order to ensure that industry participants can fully benefit from these new
potential areas of income, many industry participants, including the Group,
belong to a variety of international publishing societies, such as the MCPS/PRS
Alliance. These societies represent the music publishing industry with respect
to the negotiation of the payment of royalties to publishers and songwriters by
new media players, as we are not big enough to carry out these negotiations
ourselves, unlike the Majors.
Understanding and monetising the opportunities for the Group's music publishing
business in this new media environment are an important part of the Group's
growth strategy. Failure by the Group to fully exploit the use of music in fast
growing areas of music consumption, such as social networking sites and digital
downloads, could have a material adverse effect on the Group's business,
financial condition and/or results of operations.
Failure to meet acquisition expectations
The Group regularly reviews potential acquisitions and uses third party
advisors, where necessary, to assist it in detailed financial modelling of any
potential acquisition to ensure such potential acquisition meets the Group's
growth strategy.Acquisitions typically entail risks and could result in
difficulties in integrating the operations and personnel of acquired businesses.
If the Group was not able to integrate acquisitions successfully, there is a
risk that an acquisition may fail to meet the necessary financial targets or
other anticipated advantages which could have a material adverse effect on the
Group's business, financial condition and/or results of operations.
Exchange rate risk
The non-UK entities within the Group transact and account in their local
currency. As the reporting currency of the Group is sterling, these results are
translated into sterling at the applicable exchange rate. Adverse exchange
rates could also impact on the Group's import and export business. Therefore,
any significant foreign currency exchange rate fluctuations may have a material
adverse effect on the Group's business, consolidated results of operations
and/or financial condition. The Group undertakes forward purchasing and sales of
foreign currencies and has hedging instruments in place within Chrysalis Music
to offset foreign exchange risk. In addition, fluctuations in exchange rates
could also significantly impact the comparability of the Group's results of
operations between financial periods.
Exchange rate risk at Lasgo Chrysalis is managed with a combination of high
margin imports and forward purchasing of currency.
Interest rate fluctuations
The Group's borrowings are subject to floating interest rates and it is
therefore exposed to movements in interest rates. The Group has entered into
interest rate swap and interest rate cap and collar hedging instruments to
achieve a suitable mix of fixed and floating interest exposure. These
instruments have resulted in interest cost savings in the past, however the
rapid reduction in interest rates over the last year has negated these savings,
and will result in additional interest costs if interest rates remain at the
current levels. The Group continues to monitor interest rates and will consider
restructuring these instruments, as appropriate, to manage future interest
costs.
Loss of key individuals
There are a small number of Directors and key employees whose departure from the
Group could, in the short term, adversely affect the Group. It is the policy of
the Group to provide competitive remuneration packages to enable it to attract,
retain and motivate executives of the calibre and experience required, whilst
cost-effectively incentivising executives to deliver long-term Shareholder
value. Whilst the Group has ongoing service agreements with each of its key
personnel, their retention cannot be guaranteed. Any loss of key individuals may
have a material adverse effect on the Group's business, financial condition
and/or results of operations.
Consolidated Income Statement (unaudited)
For the year ended 30 September 2009
+----------------------------------------------+------+----+---------------+---------------+
| | Note | | 12 months | 13 months |
| | | | ended | ended 30 |
| | | | 30 September | September |
| | | | 2009 | 2008 |
+----------------------------------------------+------+----+---------------+---------------+
| | | | GBP'000 | GBP'000 |
+----------------------------------------------+------+----+---------------+---------------+
| Continuing operations | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Revenue | 2 | | 62,876 | 54,078 |
+----------------------------------------------+------+----+---------------+---------------+
| | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Operating expenses | 2 | | (60,655) | (74,105) |
+----------------------------------------------+------+----+---------------+---------------+
| | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Profit/(loss) from operations | 2 | | 2,221 | (20,027) |
+----------------------------------------------+------+----+---------------+---------------+
| Analysed as: | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Operating profit/(loss) before separately | | | 3,344 | (998) |
| disclosed items | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Separately disclosed items | 3 | | (1,123) | (19,029) |
+----------------------------------------------+------+----+---------------+---------------+
| | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Finance income | 4 | | 374 | 6,449 |
+----------------------------------------------+------+----+---------------+---------------+
| Financing costs | 5 | | (6,465) | (5,292) |
+----------------------------------------------+------+----+---------------+---------------+
| Net financing (costs)/income | | | (6,091) | 1,157 |
+----------------------------------------------+------+----+---------------+---------------+
| | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Share of profits of equity accounted | | | 28 | 21 |
| investments | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Loss before tax | | | (3,842) | (18,849) |
+----------------------------------------------+------+----+---------------+---------------+
| Income tax credit | 6 | | 116 | 32 |
+----------------------------------------------+------+----+---------------+---------------+
| | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Loss after tax | | | (3,726) | (18,817) |
+----------------------------------------------+------+----+---------------+---------------+
| | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Discontinued operations | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Loss from discontinued operations (net of | 3 | | - | (528) |
| tax) | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Loss for the period | | | (3,726) | (19,345) |
+----------------------------------------------+------+----+---------------+---------------+
| | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Attributable to: | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Equity holders of parent | | | (3,856) | (19,494) |
+----------------------------------------------+------+----+---------------+---------------+
| Minority interests (equity interests) | | | 130 | 149 |
+----------------------------------------------+------+----+---------------+---------------+
| Loss for the period | | | (3,726) | (19,345) |
+----------------------------------------------+------+----+---------------+---------------+
| | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Loss earnings per share | 7 | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Basic loss per share (pence per share) | | | (5.74) | (21.20) |
+----------------------------------------------+------+----+---------------+---------------+
| | | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Loss per share from continuing operations | 7 | | | |
+----------------------------------------------+------+----+---------------+---------------+
| Basic loss per share (pence per share) | | | (5.74) | (20.62) |
+----------------------------------------------+------+----+---------------+---------------+
Consolidated statement of recognised income and expense (unaudited)
For the year ended 30 September 2009
+----------------------------------------------+---------+---------------+---------------+
| | | 12 months | 13 months |
| | | ended | ended 30 |
| | | 30 September | September |
| | | 2009 | 2008 |
+----------------------------------------------+---------+---------------+---------------+
| | | GBP'000 | GBP'000 |
+----------------------------------------------+---------+---------------+---------------+
| | | | |
+----------------------------------------------+---------+---------------+---------------+
| Exchange differences on translation of | | (313) | (332) |
| foreign operations | | | |
+----------------------------------------------+---------+---------------+---------------+
| Actuarial gains on defined benefit pension | | - | 1,364 |
| schemes | | | |
+----------------------------------------------+---------+---------------+---------------+
| Movement in fair value of cash flow hedges | | (2,328) | (1,918) |
+----------------------------------------------+---------+---------------+---------------+
| Amount recycled in respect of cash flow | | 141 | (416) |
| hedges | | | |
+----------------------------------------------+---------+---------------+---------------+
| Deemed distribution to minority shareholders | | (419) | |
+----------------------------------------------+---------+---------------+---------------+
| Tax on income and expenses recognised | | - | 70 |
| directly in equity | | | |
+----------------------------------------------+---------+---------------+---------------+
| | | | |
+----------------------------------------------+---------+---------------+---------------+
| Income and expense recognised directly in | | (2,920) | (1,232) |
| equity | | | |
+----------------------------------------------+---------+---------------+---------------+
| Loss for the period | | (3,726) | (19,345) |
+----------------------------------------------+---------+---------------+---------------+
| Total recognised income and expense for the | | (6,645) | (20,577) |
| period | | | |
+----------------------------------------------+---------+---------------+---------------+
| | | | |
+----------------------------------------------+---------+---------------+---------------+
| Attributable to: | | | |
+----------------------------------------------+---------+---------------+---------------+
| Equity holders of parent | | (6,435) | (20,776) |
+----------------------------------------------+---------+---------------+---------------+
| Minority interests | | (210) | 199 |
+----------------------------------------------+---------+---------------+---------------+
| Total recognised income and expense for the | | (6,645) | (20,577) |
| period | | | |
+----------------------------------------------+---------+---------------+---------------+
Consolidated balance sheet (unaudited)
As at 30 September 2009
+----------------------------------------------+---+------+---------------+---------------+
| | | Note | 30 September | 30 September |
| | | | 2009 | 2008 |
+----------------------------------------------+---+------+---------------+---------------+
| | | | GBP'000 | GBP'000 |
+----------------------------------------------+---+------+---------------+---------------+
| Assets | | | | |
+----------------------------------------------+---+------+---------------+---------------+
| Goodwill | | | 1,061 | 1,061 |
+----------------------------------------------+---+------+---------------+---------------+
| Other intangible assets | | | 9,174 | 4,188 |
+----------------------------------------------+---+------+---------------+---------------+
| Property, plant and equipment | | | 848 | 1,010 |
+----------------------------------------------+---+------+---------------+---------------+
| Total non-current assets | | | 11,083 | 6,259 |
+----------------------------------------------+---+------+---------------+---------------+
| | | | | |
+----------------------------------------------+---+------+---------------+---------------+
| Inventories | | | 1,742 | 2,227 |
+----------------------------------------------+---+------+---------------+---------------+
| Trade and other receivables | | | 26,607 | 25,237 |
+----------------------------------------------+---+------+---------------+---------------+
| Employee benefits | | | - | 1,495 |
+----------------------------------------------+---+------+---------------+---------------+
| Asset held for sale | | | 6,500 | 8,000 |
+----------------------------------------------+---+------+---------------+---------------+
| Cash and cash equivalents | | 8 | 22,947 | 22,426 |
+----------------------------------------------+---+------+---------------+---------------+
| Total currents assets | | | 57,796 | 59,385 |
+----------------------------------------------+---+------+---------------+---------------+
| Total assets | | | 68,879 | 65,644 |
+----------------------------------------------+---+------+---------------+---------------+
| | | | | |
+----------------------------------------------+---+------+---------------+---------------+
| Liabilities | | | | |
+----------------------------------------------+---+------+---------------+---------------+
| Interest-bearing loans and borrowings | | | (33,876) | (19,217) |
+----------------------------------------------+---+------+---------------+---------------+
| Deferred consideration | | | (313) | - |
+----------------------------------------------+---+------+---------------+---------------+
| Provisions | | | (898) | (1,115) |
+----------------------------------------------+---+------+---------------+---------------+
| Total non-current liabilities | | | (35,087) | (20,332) |
+----------------------------------------------+---+------+---------------+---------------+
| | | | | |
+----------------------------------------------+---+------+---------------+---------------+
| Interest-bearing loans and borrowings | | | (4,826) | (14,720) |
+----------------------------------------------+---+------+---------------+---------------+
| Trade and other payables | | | (27,839) | (28,239) |
+----------------------------------------------+---+------+---------------+---------------+
| Derivative financial instruments | | | (5,761) | (342) |
+----------------------------------------------+---+------+---------------+---------------+
| Total current liabilities | | | (38,426) | (43,301) |
+----------------------------------------------+---+------+---------------+---------------+
| Total liabilities | | | (73,513) | (63,633) |
+----------------------------------------------+---+------+---------------+---------------+
| | | | | |
+----------------------------------------------+---+------+---------------+---------------+
| Net current assets | | | 19,370 | 16,084 |
+----------------------------------------------+---+------+---------------+---------------+
| | | | | |
+----------------------------------------------+---+------+---------------+---------------+
| Net (liabilities)/assets | | | (4,634) | 2,011 |
+----------------------------------------------+---+------+---------------+---------------+
| | | | | |
+----------------------------------------------+---+------+---------------+---------------+
| Equity attributable to equity holders of | | | | |
| parent | | | | |
+----------------------------------------------+---+------+---------------+---------------+
| Issued capital | | 9 | 1,343 | 1,343 |
+----------------------------------------------+---+------+---------------+---------------+
| Share premium | | 9 | 4 | 4 |
+----------------------------------------------+---+------+---------------+---------------+
| Other reserves | | 9 | 467 | 3,046 |
+----------------------------------------------+---+------+---------------+---------------+
| Retained (deficit)/earnings | | 9 | (6,634) | (2,778) |
+----------------------------------------------+---+------+---------------+---------------+
| | | | (4,820) | 1,615 |
+----------------------------------------------+---+------+---------------+---------------+
| Minority interests (equity interests) | | | 186 | 396 |
+----------------------------------------------+---+------+---------------+---------------+
| | | | | |
+----------------------------------------------+---+------+---------------+---------------+
| Total equity | | | (4,634) | 2,011 |
+----------------------------------------------+---+------+---------------+---------------+
Consolidated statement of cash flows (unaudited)
For the year ended 30 September 2009
+--------------------------------------------------+------+---------------+---------------+
| | | 12 months | 13 months |
| | | ended 30 | ended |
| | | September | 30 September |
| | | 2009 | 2008 |
+--------------------------------------------------+------+---------------+---------------+
| | Note | GBP'000 | GBP'000 |
+--------------------------------------------------+------+---------------+---------------+
| Cash flows from operating activities | | | |
+--------------------------------------------------+------+---------------+---------------+
| Loss for the period | | (3,726) | (19,345) |
+--------------------------------------------------+------+---------------+---------------+
| Adjustments for: | | | |
+--------------------------------------------------+------+---------------+---------------+
| Depreciation | | 475 | 878 |
+--------------------------------------------------+------+---------------+---------------+
| Finance income | | (374) | (4,637) |
+--------------------------------------------------+------+---------------+---------------+
| Financing costs | | 3,233 | 4,377 |
+--------------------------------------------------+------+---------------+---------------+
| Share of profits of equity accounted investments | | (28) | (21) |
+--------------------------------------------------+------+---------------+---------------+
| Separately disclosed items | 3 | 5,006 | 18,660 |
+--------------------------------------------------+------+---------------+---------------+
| Gain on sale of property, plant and equipment | | - | (7) |
+--------------------------------------------------+------+---------------+---------------+
| Income tax credit | | (528) | (32) |
+--------------------------------------------------+------+---------------+---------------+
| Non-cash items | | (195) | (58) |
+--------------------------------------------------+------+---------------+---------------+
| | | 3,863 | (185) |
+--------------------------------------------------+------+---------------+---------------+
| (Increase)/decrease in trade and other | | (3,257) | 5,329 |
| receivables | | | |
+--------------------------------------------------+------+---------------+---------------+
| Decrease/(increase) in inventories | | 485 | (326) |
+--------------------------------------------------+------+---------------+---------------+
| Increase/(decrease) in trade and other payables | | 672 | (8,601) |
+--------------------------------------------------+------+---------------+---------------+
| Decrease in provisions | | (313) | - |
+--------------------------------------------------+------+---------------+---------------+
| | | 1,450 | (3,783) |
+--------------------------------------------------+------+---------------+---------------+
| | | | |
+--------------------------------------------------+------+---------------+---------------+
| Interest received | | 374 | 5,133 |
+--------------------------------------------------+------+---------------+---------------+
| Interest paid | | (2,718) | (2,899) |
+--------------------------------------------------+------+---------------+---------------+
| Income tax received | | 59 | 208 |
+--------------------------------------------------+------+---------------+---------------+
| | | (2,285) | 2,442 |
+--------------------------------------------------+------+---------------+---------------+
| | | | |
+--------------------------------------------------+------+---------------+---------------+
| Net cash used in operating activities | | (835) | (1,341) |
+--------------------------------------------------+------+---------------+---------------+
| | | | |
+--------------------------------------------------+------+---------------+---------------+
| Cash flows from investing activities | | | |
+--------------------------------------------------+------+---------------+---------------+
| Acquisition of intangible assets | | (4,904) | (13) |
+--------------------------------------------------+------+---------------+---------------+
| Acquisition of property, plant and equipment | | (295) | (175) |
+--------------------------------------------------+------+---------------+---------------+
| Receipt/(payment) in respect of pension scheme | | 1,495 | (12,000) |
| buyout | | | |
+--------------------------------------------------+------+---------------+---------------+
| Proceeds from the sale of equity accounted | | - | 14 |
| investments | | | |
+--------------------------------------------------+------+---------------+---------------+
| Loans repaid by equity accounted investments | | 48 | 46 |
+--------------------------------------------------+------+---------------+---------------+
| Net cash used in investing activities | | (3,656) | (12,128) |
+--------------------------------------------------+------+---------------+---------------+
| | | | |
+--------------------------------------------------+------+---------------+---------------+
| Cash flows from financing activities | | | |
+--------------------------------------------------+------+---------------+---------------+
| Proceeds from the issue of share capital | | - | 4 |
+--------------------------------------------------+------+---------------+---------------+
| Return of capital to shareholders | | - | (96,500) |
+--------------------------------------------------+------+---------------+---------------+
| Expenses related to return of capital | | - | (1,077) |
+--------------------------------------------------+------+---------------+---------------+
| Repayment of borrowings | | (12,700) | (40,000) |
+--------------------------------------------------+------+---------------+---------------+
| New borrowings | | 15,500 | - |
+--------------------------------------------------+------+---------------+---------------+
| | | | |
+--------------------------------------------------+------+---------------+---------------+
| Net cash (used in)/from financing activities | | 2,800 | (137,573) |
+--------------------------------------------------+------+---------------+---------------+
| | | | |
+--------------------------------------------------+------+---------------+---------------+
| Net decrease in cash and cash equivalents in | | (1,691) | (151,072) |
| continuing operations | | | |
+--------------------------------------------------+------+---------------+---------------+
| Cash and cash equivalents at start of the period | | 20,406 | 170,948 |
+--------------------------------------------------+------+---------------+---------------+
| Effects of exchange rate changes on cash and | | 473 | 530 |
| cash equivalents | | | |
+--------------------------------------------------+------+---------------+---------------+
| | | | |
+--------------------------------------------------+------+---------------+---------------+
| Cash and cash equivalents at end of the period | | 19,188 | 20,406 |
+--------------------------------------------------+------+---------------+---------------+
Notes to the financial statements
+-------------------+--------------------------------------------------------------------------------------------------------------+
| 1. | Basis of preparation |
+-------------------+--------------------------------------------------------------------------------------------------------------+
The Group financial statements consolidate those of Chrysalis PLC and its
subsidiaries (together referred to as the "Group") and the Groups
interest in jointly controlled entities. The financial statements have been
prepared on the basis of the accounting policies set out on pages
31 to
35 of the Chrysalis PLC Annual Report and Accounts for 2008.
As required by EU law (IAS Regulation EC 1606/2002) the Groups accounts have
been prepared in accordance with International Financial
Reporting
Standards adopted by the International Accounting Standard Board (IASB), as
adopted by the EU ("Adopted IFRS").
The accounts are principally prepared on the historical cost basis except for
derivative financial instruments which are stated at their fair
value.
Assets held for sale are stated at the lower of previous carrying amount and
fair value less costs to sell.
The financial information set out above does not constitute the company's
statutory accounts for the 12 months ended 30 September 2009
and 13
months ended 30 September 2008. The financial information for 2008 is derived
from the statutory accounts for 2008 which have
been delivered to the
registrar of companies. The auditors have reported on the 2008 accounts; their
report was (i) unqualified, (ii) did not
include a reference to any
matters to which the auditors drew attention by way of emphasis without
qualifying their report and (iii) did not
contain a statement under
section 498 (2) or (3) of the Companies Act 2006. The statutory accounts for
2009 will be finalised on the basis of
the financial information
presented by the directors in this preliminary announcement and will be
delivered to the registrar of companies in
due course.
Change in estimate
On 1 October 2008, The Group revised the useful economic life of all music
catalogues to bring these in line with that of the industry. This
change was applied prospectively and resulted in additional amortisation of
GBP0.1m being charged in the current period.
Use of non-GAAP profit and loss measures
The Group believes that along with operating loss, the following measures:
+----+------------------------------------------------------------------------------------------------------------+
| · | normalised operating loss; and |
| | |
+----+------------------------------------------------------------------------------------------------------------+
| · | normalised loss before tax |
| | |
+----+------------------------------------------------------------------------------------------------------------+
provide additional guidance to the statutory measures of the performance of the
business during the financial period.
Normalised measures are stated before separately disclosed items. None of the
these non-GAAP profit and loss measures set out above are
Adopted IFRS
and therefore may not be directly comparable with other companies adjusted
profit measures. They are not intended to be a
substitute for or
superior to Adopted IFRS measurements of profit.
+----------+--------+------------------------------+--------+--------------------+--------------------------+-------------------+
| 2. | Segment reporting | |
+-------------------+------------------------------+----------------------------------------------------------------------------+
| | Revenue | 12 months ended | | 13 months ended |
| | | 30 September 2009 | | 30 September 2008 |
+----------+------------------------------------------------+--------------------+--------------------------+-------------------+
| | | GBP'000 | | GBP'000 |
+----------+------------------------------------------------+--------------------+--------------------------+-------------------+
| | | | | |
+----------+------------------------------------------------+--------------------+--------------------------+-------------------+
| | Publishing | 36,006 | | 29,628 |
+----------+------------------------------------------------+--------------------+--------------------------+-------------------+
| | Non-publishing | 3,233 | | 3,644 |
+----------+------------------------------------------------+--------------------+--------------------------+-------------------+
| | Lasgo Chrysalis | 23,712 | | 20,856 |
+----------+------------------------------------------------+--------------------+--------------------------+-------------------+
| | | 62,951 | | 54,128 |
+----------+------------------------------------------------+--------------------+--------------------------+-------------------+
| | Less: Share of equity accounted revenue | (75) | | (50) |
| | (Publishing) | | | |
+----------+------------------------------------------------+--------------------+--------------------------+-------------------+
| | | 62,876 | | 54,078 |
+----------+--------+------------------------------+--------+--------------------+--------------------------+-------------------+
+--------+--------------------------+------------------------------+-----------+----------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
| 2. | Segment reporting (continued) | |
+-----------------------------------+------------------------------------------+------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | Normalised | Separately | 12 months ended | Normalised | Separately | 13 months ended |
| | | | disclosed | 30 September | | disclosed | 30 September |
| | | | items | 2009 | | items | 2008 |
| | | | (Note 3) | Total | | (Note 3) | Total |
+--------+---------------------------------------------------------+----------------------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
| | Segment result | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+--------+---------------------------------------------------------+----------------------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
| | | | | | | | |
+--------+---------------------------------------------------------+----------------------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
| | Publishing | 2,203 | (274) | 1,929 | 377 | (5,463) | (2,934) |
+--------+---------------------------------------------------------+----------------------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
| | Non-publishing | 756 | - | 756 | (429) | (1,806) | (1,133) |
+--------+---------------------------------------------------------+----------------------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
| | Lasgo Chrysalis | 2,036 | - | 2,036 | 1,248 | - | 1,248 |
+--------+---------------------------------------------------------+----------------------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
| | Corporate | (1,651) | (849) | (2,500) | (2,194) | (11,760) | (17,208) |
+--------+---------------------------------------------------------+----------------------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
| | Operating profit/(loss) | 3,344 | (1,123) | 2,221 | (998) | (19,029) | (20,027) |
+--------+---------------------------------------------------------+----------------------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
| | Net finance (costs)/income | | (3,232) | (6,091) | 260 | 897 | |
| | | (2,859) | | | | | 1,157 |
| | | | | | | | 21 |
+--------+---------------------------------------------------------+----------------------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
| | Share of profits/(loss) of equity accounted investments | 28 | - | 28 | 21 | - | 21 |
+--------+---------------------------------------------------------+----------------------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
| | Profit/(loss) before tax | 513 | (4,355) | (3,842) | (717) | (18,132) | (18,849) |
+--------+---------------------------------------------------------+----------------------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
| | Tax credit | 116 | - | 116 | 32 | - | 32 |
+--------+---------------------------------------------------------+----------------------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
| | Profit/(loss) for the period from continuing operations | 629 | (4,355) | (3,726) | (685) | (18,132) | (18,817) |
+--------+---------------------------------------------------------+----------------------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
| | Loss from discontinued operations | - | - | - | - | (528) | (528) |
+--------+---------------------------------------------------------+----------------------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
| | Profit/(loss) for the period | 629 | (4,355) | (3,726) | (685) | (18,660) | (19,345) |
+--------+--------------------------+------------------------------+-----------+----------------------------------------------------------------------------+--------------+--------------------+--------------+-------------+--------------------+
Further details on the separately disclosed items are included in Note 3.
+--------------------------------------+--------------+--------------------+-----------+----------------+-------------------+
| | Depreciation | Amortisation of | | Depreciation | Amortisation of |
| | | intangibles | | | intangibles |
+--------------------------------------+--------------+--------------------+-----------+----------------+-------------------+
| | 2009 | 2009 | | 2008 | 2008 |
+--------------------------------------+--------------+--------------------+-----------+----------------+-------------------+
| | GBP'000 | GBP'000 | | GBP'000 | GBP'000 |
+--------------------------------------+--------------+--------------------+-----------+----------------+-------------------+
| | | | | | |
+--------------------------------------+--------------+--------------------+-----------+----------------+-------------------+
| Publishing | 137 | 274 | | 119 | 180 |
+--------------------------------------+--------------+--------------------+-----------+----------------+-------------------+
| Non-publishing | - | - | | - | - |
+--------------------------------------+--------------+--------------------+-----------+----------------+-------------------+
| Lasgo Chrysalis | 73 | - | | 91 | - |
+--------------------------------------+--------------+--------------------+-----------+----------------+-------------------+
| Corporate | 265 | - | | 668 | - |
+--------------------------------------+--------------+--------------------+-----------+----------------+-------------------+
| | 475 | 274 | | 878 | 180 |
+--------------------------------------+--------------+--------------------+-----------+----------------+-------------------+
+---------+------------------------------+
| 3. | Separately disclosed items |
+---------+------------------------------+
Separately disclosed items impact operating profit/(loss), net finance
(cost)/income and loss from discontinued business as follows:
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| | | 12 months ended | 13 months ended |
| | | 30 September 2009 | 30 September 2008 |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| | | GBP'000 | GBP'000 |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| | | | |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| Amortisation of intangible assets | | 274 | 180 |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| Lease surrender premium | (a) | (740) | - |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| Redundancy costs | (b) | 89 | 696 |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| Impairment of land and buildings | (c) | 1,500 | 1,515 |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| Costs relating to pension scheme buyout | (e) | - | 8,230 |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| Impairment of goodwill | (f) | - | 2,152 |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| Restructuring of the Echo business | (g) | - | 1,806 |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| Costs relating to vacant properties | (h) | - | 1,115 |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| Costs relating to offer process | (i) | - | 900 |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| Impairment of intangible assets | (j) | - | 2,435 |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| Operating profit/(loss) | | 1,123 | 19,029 |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| Net finance cost/(income) | (d) | 3,232 | (897) |
| | | | |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| Loss from discontinued business | (k) | - | 528 |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
| Total separately disclosed items | | 4,355 | 18,660 |
+-------------------------------------------------------------------+-----------+-------------------+-------------------+
2009
+----+----------------------------------------------------------------------------------------------------------------+
| a) | This relates to a lease surrender premium received from Global Radio following its early termination of |
| | operating leases over office space. |
+----+----------------------------------------------------------------------------------------------------------------+
| b) | This comprises redundancy payments and associated costs of reorganising the corporate function. The |
| | comparative amount related to similar payments in relation to the European and US publishing operations. |
+----+----------------------------------------------------------------------------------------------------------------+
| c) | This relates to an impairment loss recognised against land and buildings held for sale to reflect the current |
| | fair value. |
+----+----------------------------------------------------------------------------------------------------------------+
| d) | This relates to the fair value movements in ineffective derivative financial instruments. |
| | |
+----+----------------------------------------------------------------------------------------------------------------+
2008
+----+----------------------------------------------------------------------------------------------------------------+
| e) | On 31 January 2008, the Board of Directors committed to the winding up of the Chrysalis Group Retirement |
| | Benefits Scheme. This amount represents the net cost of the buyout by Paternoster UK Limited. |
+----+----------------------------------------------------------------------------------------------------------------+
| f) | This was the impairment of the goodwill associated with Chrysalis Music Holdings GmbH. |
| | |
+----+----------------------------------------------------------------------------------------------------------------+
| g) | As a result of the unexpectedly poor results generated by the Echo operations, a full review of the business |
| | operating model was undertaken. The review resulted in a reorganisation which included staff redundancy costs |
| | of GBP54,000, other working capital provisions of GBP650,000 and the impairment of all related goodwill of |
| | GBP1.1 million. |
+----+----------------------------------------------------------------------------------------------------------------+
| h) | This related to the cost of vacant leasehold properties in the UK. |
| | |
+----+----------------------------------------------------------------------------------------------------------------+
| i) | This related to the aborted costs incurred in considering and assessing offers received from third parties for |
| | the Group, principally legal and professional fees. |
+----+----------------------------------------------------------------------------------------------------------------+
| j) | This comprised impairment losses recognised in respect of certain UK and French music catalogues. |
| | |
+----+----------------------------------------------------------------------------------------------------------------+
| k) | This relates to amounts paid to a former director, Richard Huntingford, following his resignation from the |
| | Board in September 2007. |
+----+----------------------------------------------------------------------------------------------------------------+
+--------+----+--------------------------+----+-----+-----------+-------------------+-------------------+
| 4. | Finance income | |
+-------------+--------------------------+--------------------------------------------------------------+
| | | | | 12 months ended | 13 months ended |
| | | | | 30 September 2009 | 30 September 2008 |
+--------+------------------------------------+-----+-----------+-------------------+-------------------+
| | | | | GBP'000 | GBP'000 |
+--------+------------------------------------+-----+-----------+-------------------+-------------------+
| | | | | | |
+--------+------------------------------------+-----+-----------+-------------------+-------------------+
| | Bank interest receivable | | | 374 | 2,824 |
+--------+------------------------------------+-----+-----------+-------------------+-------------------+
| | Expected return on pension | | | - | 1,347 |
| | scheme assets | | | | |
+--------+------------------------------------+-----+-----------+-------------------+-------------------+
| | Gain on settlement of | | | - | 2,228 |
| | derivative financial | | | | |
| | instruments | | | | |
+--------+------------------------------------+-----+-----------+-------------------+-------------------+
| | Other interest receivable | | | - | 50 |
+--------+------------------------------------+-----+-----------+-------------------+-------------------+
| | | | | 374 | 6,449 |
+--------+----+--------------------------+----+-----+-----------+-------------------+-------------------+
+-------------------+--------------------------------------------------------------------------------------------------------------+
| 5. | Financing costs |
+-------------------+--------------------------------------------------------------------------------------------------------------+
+------------------------------------------------------+--------+-----------------+-------------------+-------------------+
| | | | 12 months ended | 13 months ended |
| | | | 30 September 2009 | 30 September 2008 |
+------------------------------------------------------+--------+-----------------+-------------------+-------------------+
| | | | GBP'000 | GBP'000 |
+------------------------------------------------------+--------+-----------------+-------------------+-------------------+
| | | | | |
+------------------------------------------------------+--------+-----------------+-------------------+-------------------+
| Bank loans and overdrafts | | | 2,694 | 2,172 |
+------------------------------------------------------+--------+-----------------+-------------------+-------------------+
| Amortisation of issuance costs on securitisation | | | 227 | 243 |
| loan | | | | |
+------------------------------------------------------+--------+-----------------+-------------------+-------------------+
| Loss on derivative financial instruments on | | | 3,232 | 915 |
| remeasurement to fair value | | | | |
+------------------------------------------------------+--------+-----------------+-------------------+-------------------+
| Unwinding of discount | | | 38 | - |
+------------------------------------------------------+--------+-----------------+-------------------+-------------------+
| Interest cost on pension scheme liabilities | | | - | 1,431 |
+------------------------------------------------------+--------+-----------------+-------------------+-------------------+
| Other | | | 274 | 531 |
+------------------------------------------------------+--------+-----------------+-------------------+-------------------+
| | | | 6,465 | 5,292 |
+------------------------------------------------------+--------+-----------------+-------------------+-------------------+
+---------+--------------------------------------------------------------------------------------------------------+
| 6. | Income tax credit |
+---------+--------------------------------------------------------------------------------------------------------+
+--------------------------------------------------------------------------+-----------+-------------------+-------------------+
| | | 12 months ended | 13 months ended |
| | | 30 September 2009 | 30 September 2008 |
+--------------------------------------------------------------------------+-----------+-------------------+-------------------+
| | | GBP'000 | GBP'000 |
+--------------------------------------------------------------------------+-----------+-------------------+-------------------+
| | | | |
+--------------------------------------------------------------------------+-----------+-------------------+-------------------+
| UK Corporation tax | | | |
+--------------------------------------------------------------------------+-----------+-------------------+-------------------+
| Current tax credit on income for the year at 28% (2008: 28%) | | 488 | 860 |
+--------------------------------------------------------------------------+-----------+-------------------+-------------------+
| Overseas tax | | | |
+--------------------------------------------------------------------------+-----------+-------------------+-------------------+
| Current tax charge on income for the year at 28% (2008: 28%) | | (267) | (145) |
+--------------------------------------------------------------------------+-----------+-------------------+-------------------+
| Withholding taxes | | (105) | (132) |
+--------------------------------------------------------------------------+-----------+-------------------+-------------------+
| | | | |
+--------------------------------------------------------------------------+-----------+-------------------+-------------------+
| Total current tax | | 116 | 583 |
+--------------------------------------------------------------------------+-----------+-------------------+-------------------+
| Deferred tax | | - | (551) |
+--------------------------------------------------------------------------+-----------+-------------------+-------------------+
| Total tax credit for the year | | 116 | 32 |
+--------------------------------------------------------------------------+-----------+-------------------+-------------------+
+-----+--------------------------------------------------------------------------------------------------------------+
| 6. | Income tax credit (continued) |
+-----+--------------------------------------------------------------------------------------------------------------+
Reconciliation of notional tax credit at UK standard rate to the actual credit
The total tax credit is lower than the standard rate of corporation tax in the
UK. The differences are explained below.
:
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| | | 12 months ended | 13 months ended |
| | | 30 September 2009 | 30 September 2008 |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| | | GBP'000 | GBP'000 |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| | | | |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| Loss before tax | | 3,842 | 18,849 |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| | | | |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| Notional tax credit at UK standard rate of 28% (2008: 28%) | | 1,076 | 5,278 |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| Utilisation of tax losses | | 378 | 680 |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| Non-deductible expenses | | (470) | (2,593) |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| Non utilisation of tax losses | | (848) | (3,234) |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| Depreciation in excess of capital allowances | | (113) | (655) |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| Hedging losses/profits not taxable | | (905) | (257) |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| Withholding tax | | (105) | (132) |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| Adjustment to prior period provisions/ assessments | | 410 | 811 |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| Other timing differences | | 712 | - |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| Other | | (19) | 134 |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
| | | 116 | 32 |
+-----------------------------------------------------------------------+--------+-------------------+-------------------+
The difference between the tax credit and the standard rate of corporation tax
of 28% is mainly due to the non-recognition of deferred tax assets in respect of
unutilised tax losses and depreciation in excess of capital allowances.
+---------+--------------------------------------------------------------------------------------------------------+
| 7. | Loss per share |
+---------+--------------------------------------------------------------------------------------------------------+
+------------------------------------------------------------+---+----------------+-------------------+-------------------+
| | | | 12 months ended | 13 months ended |
| | | | 30 September | 30 September 2008 |
| | | | 2009 | |
+------------------------------------------------------------+---+----------------+-------------------+-------------------+
| | | | GBP000 | GBP000 |
+------------------------------------------------------------+---+----------------+-------------------+-------------------+
| | | | | |
+------------------------------------------------------------+---+----------------+-------------------+-------------------+
| Loss attributable to equity holders of parent | | | (3,856) | (19,494) |
+------------------------------------------------------------+---+----------------+-------------------+-------------------+
| Loss from discontinued operations | | | - | 528 |
+------------------------------------------------------------+---+----------------+-------------------+-------------------+
| Loss from continuing operations | | | (3,856) | (18,966) |
+------------------------------------------------------------+---+----------------+-------------------+-------------------+
| Separately disclosed items | | | 4,355 | 18,132 |
+------------------------------------------------------------+---+----------------+-------------------+-------------------+
| Normalised profit/(loss) from continuing operations | | | 499 | (834) |
+------------------------------------------------------------+---+----------------+-------------------+-------------------+
| | | | | |
+------------------------------------------------------------+---+----------------+-------------------+-------------------+
| Weighted average number of shares in issue ('000) | | | | |
| Basic | | | 67,143 | 91,966 |
+------------------------------------------------------------+---+----------------+-------------------+-------------------+
| | | | | |
+------------------------------------------------------------+---+----------------+-------------------+-------------------+
| Loss per share | | | | |
| Basic and diluted | | | (5.74)p | (21.20)p |
+------------------------------------------------------------+---+----------------+-------------------+-------------------+
| Loss per share from continuing operations | | | | |
| Basic and diluted | | | (5.74)p | (20.62)p |
+------------------------------------------------------------+---+----------------+-------------------+-------------------+
| Loss per share from discontinued operations | | | | |
| Basic and diluted | | | - | (0.57)p |
+------------------------------------------------------------+---+----------------+-------------------+-------------------+
+---------+--------------------------------------------------------------------------------------------------------+
| 8. | Cash and cash equivalents |
+---------+--------------------------------------------------------------------------------------------------------+
+-------------------------------------------------------------------------------+-------------------+-------------------+
| | 2009 | 2008 |
| | GBP000 | GBP000 |
+-------------------------------------------------------------------------------+-------------------+-------------------+
| | | |
+-------------------------------------------------------------------------------+-------------------+-------------------+
| Cash and cash equivalents per balance sheet | 22,947 | 22,426 |
+-------------------------------------------------------------------------------+-------------------+-------------------+
| Bank overdrafts | (3,759) | (2,020) |
+-------------------------------------------------------------------------------+-------------------+-------------------+
| Cash and cash equivalents in the statement of cash flows | 19,188 | 20,406 |
+-------------------------------------------------------------------------------+-------------------+-------------------+
Cash and cash equivalents at 30 September 2009 comprise cash deposits and
exclude GBP0.5m (2008: GBP0.5m) of cash deposits which have been used to offset
overdrafts and interest bearing loans and borrowings due within one
year.
Cash includes GBPnil (2008: GBP5.0m) held in an escrow account in
respect of the repayment of the loan notes.
+--+----------------+----------------------------+----------------+------------+------------+------------+------------+------------+------------+------------+
| 9. | Capital and reserves | |
+-------------------+----------------------------+-----------------------------------------------------------------------------------------------------------+
| | | Share | Share | Other | Retained | | Minority | Total |
| | | capital | premium | reserves | deficit | Total | interest | equity |
+--+--------------------------------------------------------------+------------+------------+------------+------------+------------+------------+------------+
| | | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+--+--------------------------------------------------------------+------------+------------+------------+------------+------------+------------+------------+
| | | | | | | | | |
+--+--------------------------------------------------------------+------------+------------+------------+------------+------------+------------+------------+
| | Balance at 1 October 2008 | 1,343 | 4 | 3,046 | (2,778) | 1,615 | 396 | 2,011 |
+--+--------------------------------------------------------------+------------+------------+------------+------------+------------+------------+------------+
| | Loss for the period | - | - | - | (3,856) | (3,856) | 130 | (3,726) |
+--+--------------------------------------------------------------+------------+------------+------------+------------+------------+------------+------------+
| | Exchange differences on translation of foreign operations | - | - | (392) | - | (392) | 79 | (313) |
+--+--------------------------------------------------------------+------------+------------+------------+------------+------------+------------+------------+
| | Deemed distribution | - | - | - | - | - | (419) | (419) |
+--+--------------------------------------------------------------+------------+------------+------------+------------+------------+------------+------------+
| | Movement in fair value of cash flow hedges | - | - | (2,328) | - | (2,328) | - | (2,328) |
+--+--------------------------------------------------------------+------------+------------+------------+------------+------------+------------+------------+
| | Amount recycled in respect of cash flow hedges | - | | 141 | - | 141 | - | 141 |
+--+--------------------------------------------------------------+------------+------------+------------+------------+------------+------------+------------+
| | Balance at 30 September 2009 | 1,343 | 4 | 467 | (6,634) | (4,820) | 186 | (4,634) |
+--+----------------+----------------------------+----------------+------------+------------+------------+------------+------------+------------+------------+
Analysis of other reserves
+------------------------------------------------------------+-----------+-----------+-----------+-----------+-----------+
| | | | | | |
| | | | Foreign | | |
| | Merger | Other | exchange | Hedging | |
| | reserve | reserve | reserve | reserve | Total |
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------------------------------------------------+-----------+-----------+-----------+-----------+-----------+
| | | | | | |
+------------------------------------------------------------+-----------+-----------+-----------+-----------+-----------+
| Balance at 1 October 2008 | 1,343 | 741 | (529) | 1,491 | 3,046 |
+------------------------------------------------------------+-----------+-----------+-----------+-----------+-----------+
| Exchange differences on translation of foreign operations | - | - | (392) | - | (392) |
+------------------------------------------------------------+-----------+-----------+-----------+-----------+-----------+
| Movement in fair value of cash flow hedges | - | - | - | (2,328) | (2,328) |
+------------------------------------------------------------+-----------+-----------+-----------+-----------+-----------+
| Amount recycled in respect of cash flow hedges | - | - | - | 141 | 141 |
+------------------------------------------------------------+-----------+-----------+-----------+-----------+-----------+
| Balance at 30 September 2009 | 1,343 | 741 | (921) | (696) | 467 |
+------------------------------------------------------------+-----------+-----------+-----------+-----------+-----------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR BCBDDGXBGGCL
Chrysalis (LSE:CHS)
Historical Stock Chart
Von Dez 2024 bis Jan 2025
Chrysalis (LSE:CHS)
Historical Stock Chart
Von Jan 2024 bis Jan 2025
