TIDMMAMA
RNS Number : 4047R
MAMA Group Plc
30 April 2009
MAMA Group Plc
Interim Results for the six months ended 31 January 2009
MAMA Group Plc ("MAMA Group", "the Company" or "the Group"), the holding company
of a number of music and marketing services businesses, announces its interim
results for the six-month period ended 31 January 2009.
Financial and Operational Highlights:
* Turnover in the first half of the year increased by 38% to a total of GBP17.5m.
* Profit after tax for the period was GBP4.9m including the profit on disposal of
the subsidiaries in the new joint venture, the Mean Fiddler Group.
* Net Assets increased to GBP30.9m from GBP23.5m on 31 July 2008.
* Cash in bank and on hand increased to GBP5.34m from GBP2.98m at the year end and
the group was debt free as a result of the Mean Fiddler Group transaction.
* Earnings per share for the period were 0.62p compared to a loss of 0.03p in the
same period last year.
* Significant Joint Venture deal with HMV.
Commenting, Adam Driscoll and Dean James, Co-Chief Executives, said:
The Directors are delighted to be reporting a significant profitable result for
the period coupled with a continued strengthening of our balance sheet. The
cyclical nature of the income delivered by our festival and management
businesses mean that we are anticipating stronger revenues and operating profit
in the second half of the year.
The first half of the year was dominated by our agreement with HMV. This was a
landmark deal that alters the face of the live venue business in the UK.
The cash consideration that the Group received for this deal recapitalised the
business at an ideal time. We are free of bank debt and have cash at hand. This
is a very good position to be in, especially given some of the external economic
factors at play. There are huge opportunities in the music market and we are
ideally placed to take advantage of a number of them and ensure the continued
growth of the Group.
We expect to report further developments in the coming weeks and months and are
more excited than ever about the prospects for the continued growth of the
Group.
The full text of the Co-Chief Executives' statement and the unaudited interim
results for the period ended 31 January 2009 is set out below.
+-------------+---------------+
| For | |
| further | |
| information | |
| contact: | |
| | |
+-------------+---------------+
| Adam | 020 7688 9000 |
| Driscoll | |
| or Dean | |
| James , | |
| Co-Chief | |
| Executives, | |
| MAMA Group | |
| Plc | |
+-------------+---------------+
| David | 020 7929 5599 |
| Bick/Mark | |
| Longson | |
| Square 1 | |
| Consulting | |
| Limited | |
+-------------+---------------+
Co-Chief Executives' statement
Introduction
We are pleased to announce the results for MAMA Group Plc ("MAMA Group" or "the
Company") and its subsidiaries (together "the Group") for the six months ended
31 January 2009.
The Company has seen a number of developments in the period, with the most
significant of these being in the live music sector of our business where we
effected a transformational deal in the UK Live industry via our new partnership
with HMV Group on 14 January 2009 and further developed our Group festival
interests. Our artist management roster has continued to grow and now stands at
over 40 artists in the UK and more than 100 artists when our interest in
Nettwerk management in North America is taken into consideration. In the UK our
management clients White Lies debuted at Number 1 in the UK album charts and the
period saw successful campaigns by Franz Ferdinand, Kaiser Chiefs and Crystal
Castles amongst others.
We have strengthened our position in both the live music business and in our
artist relationships and continue to be at the forefront of a new industry model
that marries these two key areas. Our wide range of support service businesses
continue to perform well. Music and Media Solutions, our in-house music
sponsorship and endorsement agency, has had a great first half and shown
material growth since its inception whilst our merchandising company,
Slipstream, has continued to win new clients both from within the Group
management roster and from a wide range of third party sources.
Financial Results
The results for the period of six months ended 31 January 2009 show material
growth in several key metrics over the same period in the previous year:
* Turnover in the first half of the year increased by 38% to a total of GBP17.5m.
* Profit after tax for the period was GBP4.9m including the profit on disposal of
the subsidiaries in the new joint venture, the Mean Fiddler Group.
* Net Assets increased to GBP30.9m from GBP23.5m on 31 July 2008.
* Cash in bank and on hand increased to GBP5.34m from GBP2.98m at the year end and
the group was debt free as a result of the Mean Fiddler Group transaction
* Earnings per Share for the Period were 0.62p compared to a loss of 0.03p in the
same period last year.
Management are confident about the financial prospects for the company for the
rest of the financial year and beyond.
Business Review
The Group consists of two key divisions - Live Music, Artist Services and a
number of support businesses which are grouped together in a Consumer division.
Live Music
The live music market continues to perform well in spite of the well documented
economic downturn. The Group's Live Music division added a significant new venue
in September 2008 via the acquisition of Heaven in Charing Cross which now
operates a number of our key G-A-Y nights and has also given us a fantastically
located live music venue of just under 1000 capacity in the heart of London.
By far the biggest change in our UK Live Music operations occurred in January
2009 when we announced the creation of a new joint venture business with HMV
Group plc ("HMV"), the UK's leading retailer of music, DVD, games and books.
We disposed of our interests in a number of subsidiary operating companies to a
new venture, Mean Fiddler Group Limited ("MFG"). Those operating subsidiaries
are responsible for the ownership and operation of 11 venues namely, The
Hammersmith Apollo, The Forum, The Garage, Jazz Café, The Edinburgh Picture
House, The Birmingham Institute, Heaven, G-A-Y Bar, G-A-Y Late, The Borderline
and Aberdeen's Moshulu.
In consideration of this disposal, we received 50 per cent of the issued share
capital of MFG and an initial cash consideration of GBP18.245m from HMV.
MAMA Group continues to operate the venues on a day-to-day basis and the joint
venture partners are already actively considering expansion opportunities.
Elsewhere there has been growth in the Live Music division through developments
in our festival operations. Our festival 'Barfly - The Great Escape' is
scheduled to take place in Brighton in May and currently looks set to outperform
the well-received and well-attended 2008 edition. In March 2009 we increased
our stake in the Lovebox Weekender festival to 60% and early sales for this
year's event in July have got off to a promising start.
In April 2008, just prior to the period detailed in these accounts we announced
the purchase of 70% of Angel Music Group ("AMG"). Together with LN-Gaiety
Holdings Limited it owns the rights to the award winning UK festival Global
Gathering and the leading Welsh dance music festival Escape into the Park. The
line up for this year's Global Gathering is one of the most exciting in recent
years and ticket sales are currently ahead of those sold in the same period last
year. We are confident that AMG will, through Global Gathering and its other
festival operations in several overseas territories, deliver significant profits
to the Group in this financial year. It is worth noting that the festival
business is seasonal, with all of our events taking place in the second half of
the year whilst the costs are met across the 12 month period. For this reason,
overall Group operating profit is weighted toward the second half.
Artist Services
The Artist Services division has continued to develop in line with expectations
during the first half of the year. Our relationship with Nettwerk, where we
acquired a 20% stake in November 2007 continues to thrive and deepen. Our artist
management roster has continued to grow and now stands at over 40 artists in the
UK and more than 100 artists when our interest in Nettwerk management in North
America is taken into consideration. In the UK our management clients White Lies
debuted at Number 1 in the UK album charts and the period saw successful
campaigns by Franz Ferdinand, Kaiser Chiefs and Crystal Castles amongst others.
The Group continues to lead the evolution of the artist management world and we
are actively engaging with artists beyond the pure representation model that
used to be the standard interface between an artist and their manager. We are
increasingly entering into partnership arrangements with artists that enable us
to build longer term income participation structures which are better suited to
the modern music industry. MAMA's wide ranger of services, encompassing digital
distribution, publishing administration, merchandising and ticketing support,
management and live infrastructure forms the basis of an appealing proposition
to artists. We expect to report further developments in these areas in the
coming weeks and months.
Consumer
In the Consumer division our student marketing businesses, Get Real and Campus
Marketing, have had a good first half in a challenging market. These
businesses are operating in an environment that has seen marketing budgets cut
but are growing their market share and, in so doing, preserving their income and
profits.
Music and Media Solutions, our in-house music sponsorship and endorsement
agency, has had a great first half and shown material growth since its inception
whilst our merchandising company, Slipstream, has continued to win new clients
both from within the Group management roster and from a wide range of third
party sources.
Summary
The Directors are delighted to be reporting a significant profitable result for
the period coupled with a continued strengthening of our balance sheet. The
second half of the year will see stronger income driven both by our ownership of
festivals that take place in that period and via income delivered into our
artist management business by clients who are playing at a huge number of
festivals and other events around the world between now and the end of the
summer.
The first half of the year was dominated by our agreement with HMV. This was a
landmark deal that alters the face of the live venue business in the UK.
The engagement of artist and fan is the key driver of the music industry. That
engagement is at its most evident at live events. Our venues are already key
destinations for artists, promoters and fans. This new partnership between MAMA
and HMV enables that live experience to be augmented by enabling us to offer the
artist and fans a range of other opportunities to interact.
Additionally, the cash consideration that the Group received for this deal is
recapitalised the business at an ideal time. We are free of bank debt and have
cash at hand and a stronger balance sheet. This is a very good position to be
in, especially given some of the external economic factors at play. There are
huge opportunities in the music market and we are ideally placed to take
advantage of a number of them and ensure the continued growth of the Group.
We expect to report further developments in the coming weeks and months and are
more excited than ever about the prospects for the continued growth and
development of the Group.
Adam Driscoll and Dean James
Co-Chief Executives
30 April 2009
consolidated INCOME STATEMENT - FOR THE 6 months ENDED 31 January 2009
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | Unaudited | | Audited | | Unaudited | |
| | | | 6 months | | 12 | | 6 months | |
| | | | ended 31 | | months | | ended 31 | |
| | | | January | | ended | | January | |
| | | | | | 31 July | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | |Notes | 2009 | | 2008 | | 2008 | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | GBP000 | | GBP000 | | GBP000 | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Revenue | | 17,517 | | 33,511 | | 12,719 | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Cost of sales | | (9,538) | | (16,516) | | (5,223) | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Gross profit | | 7,979 | | 16,995 | | 7,496 | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Administrative expenses | | (8,803) | | (16,038) | | (7,074) | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Operating profit before | | | | | | | |
| | exceptional items | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | depreciation and amortisation | | 264 | | 3,512 | | 1,095 | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Exceptional write offs and | 3 | (170) | | (721) | | (310) | |
| | expenses | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Equity settled share based | | (22) | | (48) | | (24) | |
| | payments | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Depreciation and amortisation | | (756) | | (901) | | (339) | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Closed venues | | (140) | | (885) | | - | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | (1,088) | | (2,555) | | (673) | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Operating (loss)/profit | | (824) | | 957 | | 422 | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Share of operating | | 61 | | (359) | | (44) | |
| | profit/(loss) in associated | | | | | | | |
| | undertaking | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Profit on disposal of | | 6,845 | | - | | - | |
| | subsidiary companies | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Finance costs | 4 | (1,231) | | (819) | | (397) | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Finance income | | 103 | | 270 | | 171 | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Profit before taxation | | 4,954 | | 49 | | 152 | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Taxation | 5 | (12) | | (269) | | (27) | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Profit for the period | | 4,942 | | 220 | | 125 | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Attributable to: | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Equity holders of the parent | | 4,727 | | (1,270) | | (185) | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Minority interests | | 215 | | 1,050 | | 310 | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | | | 4,942 | | (220) | | 125 | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | Earnings/(loss) per share | | | | | | | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | - basic | 6 | 0.62p | | (0.19)p | | (0.03)p | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
| | - diluted | 6 | 0.62p | | (0.19)p | | (0.03)p | |
+---+---------------------------------+-------+-----------+---+----------+---+-----------+---+
consolidated balance sheet as at 31 January 2009
+------------------------------------+-------+-----------+---+----------+---+-----------+
| | | Unaudited | | Audited | | Unaudited |
| | | as at 31 | | as at | | as at 31 |
| | | January | | 31 July | | January |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| | | 2009 | | 2008 | | 2008 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| | Notes | GBP000 | | GBP000 | | GBP000 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Non-current assets | | | | | | |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Property, plant and equipment | | 6,163 | | 9,783 | | 4,817 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Goodwill | 2 | 15,518 | | 14,567 | | 10,499 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Other intangible assets | | 2,419 | | 2,559 | | 166 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Other non current assets | | 5,072 | | 10,233 | | 10,137 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Investments in associates | | 3,060 | | 3,040 | | 3,189 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Other investments | | 360 | | 360 | | - |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Deferred taxation | | 29 | | 29 | | 15 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Total non-current assets | | 32,621 | | 40,571 | | 28,823 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| | | | | | | |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Current assets | | | | | | |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Trade and other receivables | | 8,140 | | 7,008 | | 4,541 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Inventories | | 273 | | 315 | | 470 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Cash and equivalents | | 5,343 | | 2,981 | | 9,838 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Total current assets | | 13,756 | | 10,304 | | 14,849 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| | | | | | | |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Total assets | | 46,377 | | 50,875 | | 43,672 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| | | | | | | |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Liabilities | | | | | | |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Current liabilities | | | | | | |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Interest bearing loans | | (1,503) | | (899) | | (670) |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Hedge liability | | (833) | | (181) | | (310) |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Trade and other payables | | (12,128) | | (14,088) | | (11,993) |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Corporation tax liabilities | | (242) | | (476) | | - |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Provisions | | (401) | | (488) | | - |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Total current liabilities | | (15,107) | | (16,132) | | (12,973) |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| | | | | | | |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Non-current liabilities | | | | | | |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Interest bearing loans | | - | | (10,655) | | (11,029) |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Deferred taxation | | (288) | | (303) | | - |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Provisions | | (124) | | (255) | | (16) |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Total non-current liabilities | | (412) | | (11,213) | | (11,045) |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| | | | | | | |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Total liabilities | | (15,519) | | (27,345) | | (24,018) |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| | | | | | | |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Total assets less liabilities | | 30,858 | | 23,530 | | 19,654 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| | | | | | | |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Equity | | | | | | |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Issued capital | | 40,395 | | 37,645 | | 33,770 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Share capital to be issued | | 26 | | 26 | | 26 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Share premium account | | 2,346 | | 2,346 | | 2,154 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Other reserves | | (13,035) | | (13,103) | | (13,103) |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Retained earnings | | 1,124 | | (3,806) | | (3,150) |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Equity attributable to equity | | 30,856 | | 23,108 | | 19,697 |
| holders of the parent | | | | | | |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Minority interest in equity | | 2 | | 422 | | (43) |
+------------------------------------+-------+-----------+---+----------+---+-----------+
| Total equity | | 30,858 | | 23,530 | | 19,654 |
+------------------------------------+-------+-----------+---+----------+---+-----------+
consolidated cash flow statement for the 6 months ending 31 January 2009
+------------------------------------------+------+-----------+---+----------+---+-----------+
| | | Unaudited | | Audited | | Unaudited |
| | | 6 months | | 12 | | 6 months |
| | | ended 31 | | months | | ended 31 |
| | | January | | ended | | January |
| | | | | 31 July | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| | | 2009 | | 2008 | | 2008 |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| | | GBP000 | | GBP000 | | GBP000 |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Operating activities | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Profit for the period before minorities | | 4,953 | | 49 | | 152 |
| and tax | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Adjustments for | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Depreciation and amortisation | | 756 | | 901 | | 339 |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Amortisation of property lease premiums | | 89 | | 188 | | 72 |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Impairment charges | | - | | 286 | | - |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Amortisation of term loan fees | | 13 | | 27 | | - |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Share based payment expense | | 22 | | 48 | | 24 |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Net finance costs/(income) | | 1,128 | | 549 | | 226 |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Tax charge | | - | | - | | 27 |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Profit on sale of subsidiaries | | (6,845) | | - | | - |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Exceptional write offs | | 170 | | 330 | | - |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Share of (profit)/loss of associates | | (61) | | 359 | | 44 |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Decrease/(increase) in trade and other | | 1,121 | | (1,570) | | (1,195) |
| receivables | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Increase in inventories | | (50) | | (79) | | (246) |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| (Decrease)/increase in provisions | | (218) | | 149 | | - |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| (Decrease)/increase in trade and other | | (1,415) | | 262 | | 3,135 |
| payables | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Cash flows from operating activities | | (337) | | 1,499 | | 2,578 |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Investing activities | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Purchases of property, plant and | | (1,877) | | (6,441) | | (909) |
| equipment | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Purchases of other intangible assets | | (70) | | (112) | | (18) |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Net proceeds from sale of subsidiaries | | 17,989 | | - | | - |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Purchase of subsidiaries | | (1,715) | | (8,493) | | (5,918) |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Purchase of property lease premiums | | - | | (250) | | - |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Purchase of fixed asset investments | | (356) | | (1,741) | | (1,590) |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Finance income | | 103 | | 269 | | 171 |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Payments to minorities | | (743) | | (1,119) | | (493) |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Net cash (disposed of)/acquired with | | (2,507) | | 1,132 | | 621 |
| subsidiaries | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Cash flows from investing activities | | 10,824 | | (16,755) | | (8,136) |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Financing activities | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Issue of ordinary shares | | - | | 3,250 | | - |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Issue of convertible loan notes | | 4,250 | | - | | - |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Net proceeds from bank and other | | - | | 11,820 | | 11,649 |
| borrowings | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Repayment of bank loans and overdrafts | | (11,681) | | (347) | | - |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Repayment of finance lease creditors | | (27) | | (49) | | (4) |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Corporation tax paid | | (268) | | - | | - |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Finance costs | | (399) | | (585) | | (397) |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Cash flows from financing activities | | (8,125) | | 14,089 | | 11,248 |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Increase/(decrease) in cash and cash | | 2,362 | | (1,167) | | 5,690 |
| equivalents | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Net cash and cash equivalents at | | 2,981 | | 4,148 | | 4,148 |
| beginning of the year | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
| Net cash and cash equivalents at end of | | 5,343 | | 2,981 | | 9,838 |
| the year | | | | | | |
+------------------------------------------+------+-----------+---+----------+---+-----------+
statement of changes in equity as at 31 JANUARY 2009
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| | Share | Share | Share | Other | Retained | Total | Minority | Total |
| | capital | capital | premium | reserves | earnings | | interests | |
| | | to be | account | | | | | |
| | | issued | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| 6 months ended 31 January | | | | | | | |
| 2008 | | | | | | | |
+------------------------------+---------+---------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Balance at 1 | 32,491 | 26 | 2,154 | (13,103) | (2,672) | 18,896 | 140 | 19,036 |
| August 2007 | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| | | | | | | | | - |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| (Loss)/profit for | - | - | - | - | (185) | (185) | 310 | 125 |
| the period | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Share option | - | - | - | - | 24 | 24 | - | 24 |
| charge | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Loss on cash flow | - | - | - | - | (317) | (317) | - | (317) |
| hedge | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Shares issued | 1,279 | - | - | - | - | 1,279 | - | 1,279 |
| during the period | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Payments to | - | - | - | - | - | - | (493) | (493) |
| minorities | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Balance at 31 | 33,770 | 26 | 2,154 | (13,103) | (3,150) | 19,697 | (43) | 19,654 |
| January 2008 | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| 12 months ended 31 July | | | | | | | |
| 2008 | | | | | | | |
+------------------------------+---------+---------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Balance at 1 | 32,491 | 26 | 2,154 | (13,103) | (2,672) | 18,896 | 140 | 19,036 |
| August 2007 | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| (Loss)/profit for | - | - | - | - | (1,270) | (1,270) | 1,050 | (220) |
| the period | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Share option | - | - | - | - | 317 | 317 | - | 317 |
| charge | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Loss on cash flow | - | - | - | - | (181) | (181) | - | (181) |
| hedge | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Shares issued | 5,154 | - | 192 | - | - | 5,346 | - | 5,346 |
| during the period | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Payments to | - | - | - | - | - | - | (1,119) | (1,119) |
| minorities | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Minorities | - | - | - | - | - | - | 351 | 351 |
| acquired | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Balance at 31 July | 37,645 | 26 | 2,346 | (13,103) | (3,806) | 23,108 | 422 | 23,530 |
| 2008 | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| 6 months ended 31 January | | | | | | | |
| 2009 | | | | | | | |
+------------------------------+---------+---------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Balance at 1 | 37,645 | 26 | 2,346 | (13,103) | (3,806) | 23,108 | 422 | 23,530 |
| August 2008 | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Profit for the | - | - | - | - | 4,727 | 4,727 | 215 | 4,942 |
| period | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Shares issued | 2,750 | - | - | - | - | 2,750 | - | 2,750 |
| during the period | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Equity element of | - | - | - | 68 | - | 68 | - | 68 |
| convertible loan | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Share option | - | - | - | - | 22 | 22 | - | 22 |
| charge | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Loss on cash flow | - | - | - | - | (651) | (651) | - | (651) |
| hedge | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Cumulative loss on | - | - | - | - | 832 | 832 | - | 832 |
| cash flow hedge | | | | | | | | |
| recycled | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Payments to | - | - | - | - | - | - | (743) | (743) |
| minorities | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Minorities | - | - | - | - | - | - | 678 | 678 |
| acquired | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Minorities | - | - | - | - | - | - | (570) | (570) |
| disposed | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
| Balance at 31 | 40,395 | 26 | 2,346 | (13,035) | 1,124 | 30,856 | 2 | 30,858 |
| January 2009 | | | | | | | | |
+--------------------+---------+---------+---------+----------+----------+---------+-----------+---------+
Notes to the unaudited interim results for the period ended 31 January 2009
1. Basis of preparation
The financial information contained in this interim report does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. The
financial information contained in this interim report has been prepared on the
basis accounting policies consistent with International Financial Reporting
Standards adopted for use in the European Union ("IFRS"). The financial
information has been prepared in accordance with the accounting policies as set
out in the accounts for the year ended 31 July 2008.
References to "MAMA Group" or "the Company" are references to MAMA Group Plc.
References to "the Group" are references to MAMA Group and its subsidiary
undertakings.
2. Acquisitions and disposals
Heaven (London) Limited
On 22 September 2008, through its 66.6% subsidiary G-A-Y Group Limited, the
Group acquired the share capital of Heaven (London) Limited, which operates a
venue Heaven in London. The purchase consideration for the shares was
GBP650,000. Heaven (London) Limited acquired the business and assets of the
venue immediately prior to completion of the purchase of the shares for
GBP2,100,000. Details of the fair value of the share of the assets acquired are
set out below:
+---------------------------------------------+----------+----------+
| | | Fair |
| | | value |
+---------------------------------------------+----------+----------+
| | | GBP000 |
+---------------------------------------------+----------+----------+
| | | |
+---------------------------------------------+----------+----------+
| Property, plant and equipment | | 1,081 |
+---------------------------------------------+----------+----------+
| | | |
+---------------------------------------------+----------+----------+
| Fair value of consideration | | 2,750 |
+---------------------------------------------+----------+----------+
| Costs of acquisition | | 171 |
+---------------------------------------------+----------+----------+
| | | 2,921 |
+---------------------------------------------+----------+----------+
| | | |
+---------------------------------------------+----------+----------+
| Goodwill | | 1,840 |
+---------------------------------------------+----------+----------+
Joint venture with HMV Group Plc
On 14 January 2009 the Group entered into a joint venture arrangement with HMV.
The Group has disposed of a number of subsidiary operating companies to a new
company, Mean Fiddler Group Limited, in which MAMA has a 50% interest. Those
operating subsidiaries are responsible for the ownership and operation of 11
venues namely, hmvHammersmith Apollo, hmvForum, The Garage, Jazz Café, Edinburgh
Picture House, Birmingham Institute, Heaven, G-A-Y Bar, G-A-Y Late, Borderline
and Aberdeen's Moshulu. In accordance with the Group's accounting policies the
joint venture has been proportionally consolidated from 14 January 2009.
In consideration of this disposal, MAMA received 50 per cent. of the issued
share capital of Mean Fiddler Group Limited and an initial cash consideration of
GBP18.245m from HMV. This consideration may be subject to a maximum positive or
negative adjustment of up to GBP3.281m in cash depending on the joint venture's
EBITDA for the year ended 31 October 2009. In addition, MAMA may receive further
cash of up to a maximum of GBP5.5m from Mean Fiddler Group Limited dependent
upon the level of debt assumed by that company. The transaction has been treated
as a 100% disposal of the subsidiaries and a 50% acquisition of the joint
venture company, Mean Fiddler Group Limited. The goodwill calculated on
acquisition is as follows:
+---------------------------------------------+----------+----------+
| | | Fair |
| | | value |
+---------------------------------------------+----------+----------+
| | | GBP000 |
+---------------------------------------------+----------+----------+
| | | |
+---------------------------------------------+----------+----------+
| Net assets acquired | | 3,727 |
+---------------------------------------------+----------+----------+
| | | |
+---------------------------------------------+----------+----------+
| Fair value of consideration | | 12,745 |
+---------------------------------------------+----------+----------+
| | | |
+---------------------------------------------+----------+----------+
| Goodwill | | 9,018 |
+---------------------------------------------+----------+----------+
3.Exceptional write offs and expenses
Exceptional costs for the period of GBP170,000 represent a write down of a loan
provided to Surfstock Limited. A breakdown of exceptional write offs and
expenses for each period is shown below:
+---------------------------------------------+----------+----------+----------+
| | 6 months | Year | 6 months |
| | ended 31 | ended | ended 31 |
| | January | 31 July | January |
| | 2009 | 2008 | 2008 |
+---------------------------------------------+----------+----------+----------+
| | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------+----------+----------+----------+
| Directors' bonus plus national insurance | - | 113 | 113 |
+---------------------------------------------+----------+----------+----------+
| Directors' pension contribution | - | 100 | 110 |
+---------------------------------------------+----------+----------+----------+
| Dilapidation provision for the Jazz Cafe | - | 42 | - |
+---------------------------------------------+----------+----------+----------+
| Impairment of Pollination Music Limited | - | 300 | - |
| goodwill | | | |
+---------------------------------------------+----------+----------+----------+
| Impairment of Surfstock goodwill | - | 30 | - |
+---------------------------------------------+----------+----------+----------+
| Write off of Surfstock loan | 170 | - | - |
+---------------------------------------------+----------+----------+----------+
| Impairment of The Heights goodwill | - | 16 | - |
+---------------------------------------------+----------+----------+----------+
| Additional rent costs | - | 60 | 97 |
+---------------------------------------------+----------+----------+----------+
| Redundancy costs | - | 60 | - |
+---------------------------------------------+----------+----------+----------+
| Compensation for loss of office | - | - | - |
+---------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------+----------+----------+----------+
| Total | 170 | 721 | 310 |
+---------------------------------------------+----------+----------+----------+
4. Finance costs
Included in finance costs to 31 January 2009 is a charge of GBP832,000 relating
to the interest rate swap on the bank loan with Bank of Scotland, which was
repaid subsequent to the completion of the joint venture with HMV Group Plc on
14 January 2009. The swap remains in place at 31 January 2009 however the
forecast payments of interest against the loan are no longer expected to occur,
therefore the losses on the swap have been recycled through the profit and loss
account as required by IAS 39.
5.Taxation
The Group has estimated corporation tax losses to carry forward against future
profits of approximately GBP7.5million (31 July 2008: GBP7.5million; 31 January
2008: GBP5.5million). The tax charge for the six months represents a charge for
certain companies of the Group based on the expected tax charge for the full
year.
6.Profit per share
The calculation of profit per share is based on the unaudited consolidated
profit for the financial period and 759,821,819 (31 July 2008: 677,213,789; 31
January 2008: 658,524,341) ordinary shares being the weighted average number of
shares in issue during the period.
Diluted earnings per share for all periods is identical to the basic earnings
per share as the options are not dilutive for any of the periods.
7. Copies of this report
Copies of this interim report will be sent to shareholders. Further copies of
this interim report can be obtained from the Company's registered office at MAMA
Group Plc, 59-65 Worship Street, London, EC2A 2DU.
Directors
A C Driscoll
D James
C Pennie
C McIntyre
Secretary
K McShannon
Auditors
PKF (UK) LLP
Farringdon Place
20 Farringdon Road
London
EC1M 3AP
Bankers
Bank of Scotland plc
St James's Gate
14-16 Cockspur Street
London
SW1Y 5BL
Registered Office
59-65 Worship Street
London
EC2A 2DU
NOMINATED ADVISeR AND BROKER
Panmure Gordon & Co
Moorgate Hall
155 Moorgate
London
EC2M 6XB
Registrars
Computershare Investor Services PLC
P O Box 82
The Pavilions
Bridgewater Road
Bristol
BS99 7NH
For queries concerning share and warrant certificates and also to advise of
transfers or changes of name or address shareholders should contact
Computershare on the following numbers:
Telephone: +44 (0) 870 702 0002
Fax +44 (0) 870 703 6101
Or visit http://www-uk.computershare.com/investor
This information is provided by RNS
The company news service from the London Stock Exchange
END
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