REG - Catalyst Media Group - Interim Results
31/03/2025 07:15
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RNS Number : 7552C Catalyst Media Group PLC 31 March 2025
31 March 2025
Catalyst Media Group Plc
("CMG", "Catalyst" or the "Company")
Interim Results for the Six Months Ended 31 December 2024
The Board of CMG (AIM: CMX) is pleased to announce the Company's unaudited
interim results for the six months ended 31 December 2024.
CMG is a 20.54% shareholder in Sports Information Services (Holdings) Limited
("SIS") and the results include its share in the profits/(losses) of SIS as an
equity accounted associate.
Highlights:
· CMG loss after taxation of £0.41 million (2023: profit of
£0.77 million)
· Loss per share of 1.94p (2023: earnings per share of 3.64p)
· Net asset value per share of 147.3p (2023: 151.6p) at the end
of the reporting period
· For the six months to 30 September 2024, SIS achieved:
- Revenues of £100.0 million (2023: £133.5 million)
- Operating loss of £2.2 million (2023: profit of £4.6 million)
- Loss after tax on ordinary activities of £1.8 million (2023: profit
of £4.0 million)
· On 31 October 2024, the Company received its £0.63 million
share of a dividend paid by SIS and post the reporting period end, on 31
January 2025, paid a final dividend of approximately £0.84 million, equating
to 4 pence per CMG ordinary share.
· On 7 March 2025, SIS announced a further two year nine month
extension to its pre-existing distribution agreement with Racecourse Media
Group ("RMG") to the end of 2028
SIS's Current Trading and Outlook
SIS's racing business, both for retail and online, has remained robust in the
period although market conditions for racing continue to be tough. On 7 March
2025, SIS was successful in securing an extension to its pre-existing
distribution agreement with RMG to the end of 2028.
SIS's non-racing business (eSports and Numbers) has seen significant growth in
the period from both an increase in customers, and revenue growth from
existing customers. However, the onboarding of new customers has been achieved
later in the period than expected, impacting profitability in its current
financial year ending 31 March 2025.
In October 2024, FanDuel, a major US Sportsbook and part of the Flutter Group,
launched the eBasketball Competitive Gaming product, with early performance
being encouraging and above initial expectations. Overall, we are pleased by
the growth achieved to date and the prospects for SIS's Competitive Gaming
service.
SIS has previously advised CMG that, following changes to its Greyhound rights
and, in particular, with the cessation of Sport Stuff TV (formerly Greyhound
Television) in April 2024, together with its ongoing investment in the scaling
of its non-racing content creation business, its financial year ending 31
March 2025 will see a decline in profitability year on year. The overall
strategy for non-racing content is in place and bodes well for the future of
the business, but initial delays with customers, now resolved, mean that
profit for the year is set to be at a lower level than originally expected.
Enquiries:
Catalyst Media Group Plc
Michael Rosenberg, Non-executive Chairman Mob: 07785 727 595
Melvin Lawson, Non-executive Director Tel:
020 7734 8111
Strand Hanson
Limited
Tel: 020 7409 3494
James Harris / Matthew Chandler
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.
Chairman's Statement
For the six-month period ended 31 December 2024, the Company recorded a net
loss after taxation of £0.41 million (2023: profit of £0.77 million).
Net assets as at 31 December 2024 were £31.0 million (30 June 2024: £31.4
million). Net cash as at 31 December 2024 was approximately £1.1 million (30
June 2024: £0.5 million).
CMG's main asset remains its 20.54% stake in SIS and, at the end of October
2024, the Company received its £0.63 million share of a dividend from SIS.
The value of CMG's investment in SIS has reduced from approximately £30.8
million as at 30 June 2024 to approximately £29.8 million as at 31 December
2024, reflecting the impact of such dividend receipt and CMG's share of the
losses recorded by SIS in the six months to 30 September 2024. As a result,
CMG's net assets per share as at 31 December 2024 were 147.3p (2023: 151.6p).
The carrying value of our investment in SIS will be reviewed again at our
financial year end.
CMG equity accounts for its share in the loss of SIS which was £1.8 million
after tax for its six-month period to 30 September 2024 (2023: profit of £4.0
million). SIS's revenues for such period were £100.0 million (2023: £133.5
million) which were derived from its business of providing integrated
television and data services to Licensed Betting Offices in the UK, Ireland
and overseas. SIS generated an operating loss for this period of £2.2
million, compared to an operating profit of £4.6 million in the comparable
period for 2023.
CMG has sufficient working capital for its current needs as the group's
overheads are expected to remain at a consistently low level.
Set out below is an overview of the activities of SIS's key divisions for the
period under review:
SIS - UK and Ireland Retail
SIS continues to provide a core service including Racecourse Media Group
horseracing, Irish Horseracing, Chelmsford City Horseracing, the SIS British
Greyhound Service, 49's and International Horseracing to almost the entire UK
and Irish retail market, including all of the major UK bookmaking groups and
the majority of independent outlets.
As announced earlier this month, SIS has secured a new contract with
Racecourse Media Group for the supply of its horseracing coverage to retail
bookmakers in the UK and Ireland through to the end of 2028 and it is
currently in the process of extending its relevant major Bookmaker agreements.
SIS - International & Online
SIS has continued to progress its international customer reach and secured the
renewal of racing rights content from rightsowners in Australia, Chile and the
Middle East.
SIS has over 150 live feeds to customers designed to maximise betting
opportunities for international retail and online operators, and has
signed numerous such operators to multi-year agreements. SIS continues to
progress its strategy to increase distribution in both new, and existing,
international and online markets, using proprietary production technology as
well as ultra-low latency streaming and data pricing services.
SIS - Non-racing content
The SIS Competitive Gaming (eSports) service has seen significant customer
growth in the period in its two sports related titles, e-football and
e-basketball. The events are supplied to customers in a number of territories
worldwide, all of which have seen strong growth. The US in particular has seen
marked growth linked to both new customers and an increase in licenced States,
with SIS now operating in 12 States, versus 3 at the equivalent point last
year. SIS is currently producing c.150,000 unique events per annum from these
two sports lines, with plans underway to increase this number further. SIS
expects to launch new sports titles over the next 12 months.
49's Ltd, the branded numbers business, continues to enhance its product
offering with refreshes of its virtual racing products, and a pending refresh
of the main 49's draw product. The full product range now includes the
original 49's draw, Fast 15's and 39's, plus virtual racing products and a
bespoke draw product for bet365, producing, in aggregate, over 500,000 draws
per annum.
India
An arbitration award was made in July 2020 which the respondent has paid into
court. These funds are now subject to appeals in the Delhi High Court by both
parties: SIS continues to pursue claims disallowed by the arbitrators whilst
the respondent attempts to nullify the award in its entirety. The overall
outcome therefore remains uncertain.
The legal and associated costs relating to this claim have been significantly
reduced but are still impacting SIS's profits.
SIS's Current Trading and Outlook
SIS's racing business, both for retail and online, has remained robust in the
period although market conditions for racing continue to be tough. On 7 March
2025, SIS was successful in securing an extension to its pre-existing
distribution agreement with RMG to the end of 2028.
SIS's non-racing business (eSports and Numbers) has seen significant growth in
the period from both an increase in customers, and revenue growth from
existing customers. However, the onboarding of new customers has been achieved
later in the period than expected, impacting profitability in its current
financial year ending 31 March 2025.
In October 2024, FanDuel, a major US Sportsbook and part of the Flutter Group,
launched the eBasketball Competitive Gaming product, with early performance
being encouraging and above initial expectations. Overall, we are pleased by
the growth achieved to date and the prospects for SIS's Competitive Gaming
service.
SIS has previously advised CMG that, following changes to its Greyhound rights
and, in particular, with the cessation of Sport Stuff TV (formerly Greyhound
Television) in April 2024, together with its ongoing investment in the scaling
of its non-racing content creation business, its financial year ending 31
March 2025 will see a decline in profitability year on year. The overall
strategy for non-racing content is in place and bodes well for the future of
the business but initial delays with customers, now resolved, will mean that
profit for the year is set to be at a lower level than originally expected.
SIS's cash position as of 20 March 2025 was net debt of £0.6 million with an
available working capital credit facility of £35m.
CMG Outlook
The Board of CMG notes the report from SIS that its profits are expected to
decrease for its financial year ending 31 March 2025, compared to the previous
year. Meanwhile overheads for CMG continue to remain at a very low level as in
previous years.
Michael Rosenberg OBE
Chairman
28 March 2025
Consolidated interim statement of comprehensive income
Notes 6 months to 31 December 2024 6 months to 31 December 2023 12 months to 30 June 2024
£ £ £
Unaudited Unaudited Audited
Revenue 12,500 12,500 25,000
Cost of sales - - -
Gross profit 12,500 12,500 25,000
Administrative expenses (67,810) (96,739) (184,611)
14,669
Other operating - -
income
Operating loss (55,310) (84,239) (144,942)
Financial income 5,474 6,134 9,859
Financial costs (262) - -
Net financial income 5,212 6,134 9,859
Share of (loss)/profit of equity-accounted associate 3 (370,131) 829,405 386,768
(Loss)/profit before taxation (420,229) 751,300 251,685
Taxation 12,200 15,300 31,500
(Loss)/profit for the period (408,029) 766,600 283,185
Share of other comprehensive loss of associate - - (5,751)
Total comprehensive (loss)/income for the period (408,029) 766,600 277,434
Attributable to equity holders of the Company (408,029) 766,600 277,434
(Loss)/Earnings per share: 4
Basic (1.94p) 3.64p 1.35p
Diluted (1.94p) 3.64p 1.35p
Consolidated interim statement of financial position
Notes 31 December 31 December 30 June
2024 2023 2024
£ £ £
Unaudited Unaudited Audited
Assets
Non-current assets
Investment in associate 3 29,828,893 31,279,687 30,831,299
29,828,893 31,279,687 30,831,299
Current assets
Trade and other receivables 84,405 100,834 95,203
Cash and cash equivalents 1,106,696 608,166 525,192
1,191,101 709,000 620,395
Total assets 31,019,994 31,988,687 31,451,694
Equity and liabilities
Capital and reserves attributable to equity holders of the parent
Share capital 2,103,202 2,103,202 2,103,202
Capital redemption reserve 711,117 711,117 711,117
Merger reserve 2,402,674 2,402,674 2,402,674
Retained profits 25,769,966 26,667,161 26,177,995
30,986,959 31,884,154 31,394,988
Current liabilities
Trade and other payables 33,035 104,533 56,706
33,035 104,533 56,706
Total equity and liabilities 31,019,994 31,988,687 31,451,694
Consolidated interim cash flow statement
6 months 6 months 12 months
to 31 December 2024 to 31 December 2023 to 30
June
£ £ 2024
Unaudited Unaudited
£
Audited
Cash flow from operating activities
Profit before taxation (420,229) 751,300 251,685
Adjustments for:
Share of loss/(profit) from associate 370,131 (829,405) (386,768)
Reversal of impairment in associate - - -
Finance income (5,474) (6,134) (9,859)
Finance cost 262 - -
Corporation taxes recovered 36,549 - -
Net cash outflow from operating activities before changes in working capital (18,761) (84,239) (144,942)
(Increase) / Decrease in trade and other receivables (13,550) (6,867) 14,965
Increase / (Decrease) in trade and other payables (23,672) 36,171 (11,657)
Net cash outflow used in operating activities (55,983) (54,935) (141,634)
Investing activities
Dividend received 632,275 6,161,302 6,161,302
Interest received 5,474 6,134 9,859
Net cash inflow from investing activities 637,749 6,167,436 6,171,161
Financing activities
Dividends paid - (5,678,699) (5,678,699)
Interest paid (262) - -
Net cash outflow used in financing activities (262) (5,678,699) (5,678,699)
Net movement in cash and cash equivalents in the period 581,504 433,802 350,828
Cash and cash equivalents at the beginning of the period 525,192 174,364 174,364
Cash and cash equivalents at the end of the period 1,106,696 608,166 525,192
Consolidated interim statement of changes in equity
Share Capital redemption reserve Merger Retained Total shareholders equity
capital £ reserve surplus/ £
Unaudited (deficit) Unaudited
£ £ £
Unaudited Unaudited Unaudited
At 1 July 2023 2,103,202 711,117 2,402,674 31,579,260 36,796,253
Profit for the 6 month period to 31 December 2023 - - - 766,600 766,600
Total comprehensive profit for the period - - - 766,600 766,600
Dividend paid to the Company's shareholders - - - (5,678,699) (5,678,699)
At 31 December 2023 2,103,202 711,117 2,402,674 26,667,161 31,884,154
Loss for the 6 month period to 30 June 2024 - - - (483,415) (483,415)
Share of other comprehensive loss of associate - - - (5,751) (5,751)
Total comprehensive loss for the period - - - (489,166) (489,166)
At 30 June 2024 2,103,202 711,117 2,402,674 26,177,995 31,394,988
Share Capital redemption reserve Merger Retained Total
capital £ reserve surplus/ shareholders
Unaudited (deficit) equity
£ £ £ £
Unaudited Unaudited Unaudited Unaudited
At 1 July 2024 2,103,202 711,117 2,402,674 26,177,995 31,394,988
Loss for the 6 month period to 31 December 2024 - - - (408,029) (408,029)
Total comprehensive loss for the period - - - (408,029) (408,029)
At 31 December 2024 2,103,202 711,117 2,402,674 25,769,966 30,986,959
Notes to the interim financial statements
1. Corporate information
CMG is a company incorporated in England and Wales and is quoted on the AIM
market operated by London Stock Exchange plc.
2. Basis of preparation
These unaudited consolidated interim financial statements cover the six month
period from 1 July 2024 to 31 December 2024 including the financial results of
Sports Information Services (Holdings) Limited ("SIS") for its six month
period to 30 September 2024.
These consolidated interim financial statements of the Company and its
subsidiaries (the "Group") for the six months ended 31 December 2024 have been
prepared in accordance with UK-adopted international accounting standards and
in accordance with the provisions of the Companies Act 2006.
The accounting policies adopted for the preparation of these unaudited interim
financial statements are consistent with the accounting policies adopted in
the Group's financial statements for the year ended 30 June 2024 and will
remain so for the year ending 30 June 2025.
The financial information set out above does not constitute statutory accounts
as defined in section 434 of the Companies Act 2006. Statutory accounts for
the year ended 30 June 2024, on which the report of the auditors was
unqualified and did not contain a statement under section 498 of the Companies
Act 2006, have been filed with the Registrar of Companies.
New financial reporting requirements
The Group, including SIS, has applied the following new financial reporting
standards for the first time in preparing its financial statements for the six
month period ended 31 December 2024. All were effective as of 1 January 2024:
§ General Requirements for Disclosure of Sustainability-related Financial
Information and Climate-related Disclosures (Amendments to IFRS S1 and S2)
§ Non-current Liabilities with Covenants and Classification of Liabilities as
Current or Non-current (Amendments to IAS 1)
§ Lease Liability in a Sale and Leaseback (Amendments to IAS 16)
§ Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
Standards, interpretations and amendments to published standards not yet
effective
At the date of authorisation of these consolidated interim financial
statements, the IASB and IFRIC have issued the following standards and
interpretations which are effective for annual accounting periods beginning on
or after the stated effective date. These standards are not effective for,
and have not been applied in, the preparation of these consolidated interim
financial statements:
§ Lack of Exchangeability (Amendments to IAS 21) (effective as of 1 January
2025)
§ Classification and Measurement of Financial Instruments (Amendments to IFRS
9 and IFRS 7) (effective as of 1 January 2026)
§ Presentation and Disclosure in Financial Statements (IFRS 18) (effective as
of 1 January 2027)
§ Subsidiaries without Public Accountability (IFRS 19) (effective as of 1
January 2027)
The Directors anticipate that the adoption of these standards will not have a
material impact on the Group's financial statements in the period of initial
adoption.
3. Investment in associate
Total
Group
£
Cost
At 1 July 2024 30,831,299
Additions - share of loss (370,131)
Dividends received (632,275)
At 31 December 2024 29,828,893
The Group's interest in its associate, SIS, a company incorporated in England
and Wales, is held by Alternateport Limited ("Alternateport"). Alternateport
holds an investment of 20.54% in the equity share capital of SIS and is
entitled to appoint one director to the SIS board. The Group currently has no
representative on the board of SIS. Alternateport is a wholly-owned subsidiary
of Catalyst Media Holdings Limited, a wholly-owned subsidiary of the Company.
The Board has reviewed its valuation of the Company's investment in SIS as at
31 December 2024 and has, in line with the Group's accounting policies,
decreased the value of its investment by the amount of its share of losses for
the period, less the value of the dividend received. As a result, the
investment is now carried at a value of approximately £29.8m.
Share of profit of associate* 30 September 31 December 2024 31 December 2023 30 June
2024 2024
SIS Total CMG share CMG share CMG share
£'000 £'000 £'000 £'000
Revenue:
SIS Betting Services 100,025 20,545 27,412 48,088
Total revenue 100,025 20,545 27,412 48,088
Operating profit/(loss) from ongoing operations (2,193) (450) 941 1,543
Group's share of loss in associate - - - -
Net interest receivable / (payable) (108) (22) 174 238
Individually significant items - - - (833)
Profit/(loss) before tax (2,301) (472) 1,115 948
Taxation 499 102 (286) (561)
Share of income/(loss) after taxation (1,802) (370) 829 387
Net income from associate (1,802) (370) 829 387
IFRS 9 expected credit loss provision - - - -
Adjusted net income from associate (1,802) (370) 829 387
Other comprehensive income
Actuarial gain/(loss) - - - (9)
Deferred tax - - - 3
Acquisition of a subsidiary and revaluation loss - - -
Total other comprehensive income - - - (6)
Share of gross assets and liabilities of associate
Gross assets 71,254 14,636 25,386 17,161
Gross liabilities (43,354) (8,905) (12,924) (11,112)
Net equity 27,900 5,731 12,462 6,049
* - The period covered by the associate's accounts is for the six months to 30
September 2024. The revenues have been stated excluding internal revenues.
4. Earnings per share
The calculation of the basic earnings per ordinary share of 10p each in the
capital of the Company ("Share") is based upon the following:
6 months to 6 months to 12 months to 30 June
31 December 2024 31 December 2023 2024
£ £ £
Basic and Diluted
Earnings per share - pence (1.94p) 3.64p 1.35p
Profit attributable to equity shareholders (408,029) 766,600 283,185
Weighted average number of Shares in issue 21,032,030 21,032,030 21,032,030
- ENDS -
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