REG - Catalyst Media Group - Final Results for 30 June 2025 and Notice of AGM
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RNS Number : 4108M Catalyst Media Group PLC 22 December 2025
22 December 2025
Catalyst Media Group Plc
("CMG", the "Company" or the "Group")
Final Results for the Year Ended 30 June 2025 and
Notice of Annual General Meeting ("AGM")
The Board of CMG (AIM: CMX) is pleased to announce the Company's final results
for its financial year ended 30 June 2025.
CMG is a 20.54% shareholder in Sports Information Services (Holdings) Limited
("SIS") and the results for the year to 30 June 2025 incorporate its share in
the profits of SIS for its financial year ended 31 March 2025, as an
equity-accounted associate.
Highlights:
· CMG profit after taxation of £387k (2024: £283k)
· Profit per share of 1.84p (2024: 1.35p)
· Net asset value per share of approximately 147p (2024: 149p)
· For its financial year to 31 March 2025, SIS achieved:
- Turnover of £190.5 million (2024: £234.1 million)
- Operating profit of £3.2 million (2024: £3.5 million)
- Profit after taxation of £2.3 million (2024: £1.9 million)
· On 31 October 2025, SIS declared a final dividend of, in
aggregate, £1.721 million in respect of its financial year ended 31 March
2025 and CMG has received its share of such dividend of approximately £0.35
million
· The Board of CMG has resolved to maintain the Company's cash
reserves and is not intending to declare or make a dividend payment in respect
of these full year results and continues to operate CMG's business with
minimal overheads
SIS Current Trading and Outlook
Management is continuing to invest in scaling its content creation business
with a focus on increasing the volume of events and securing additional
customers whilst also driving the continued expansion of its racing business
both through direct deals and distributors. Progress in North America remains
strong and SIS Content Services Inc. continues to apply for regulatory
licences to support availability of the Competitive Gaming products in further
licensed jurisdictions beyond the current 18 which will serve to fuel growth
of the existing Competitive Gaming business in the US.
The UK budget announcement in November 2025 on, inter alia, gambling taxes did
not directly impact SIS however the impact on both shop numbers and racing
content revenue share from the UK is as yet unknown. The Content Creation
division sees the majority of its revenues from outside the UK and therefore
it is expected the budget will have minimal impact thereon.
SIS has advised CMG that following the growth in its content creation
business, driven by the increased volume of content and the increase in its
customer base, SIS will see growth in its overall like for like operating
profit, before investment in new titles, in its financial year to 31 March
2026.
Availability of Annual Report & Financial Statements and Notice of AGM
A PDF copy of the Company's full Annual Report and Financial Statements for
its financial year ended 30 June 2025, together with the formal notice of AGM
and form of proxy, will shortly be made available to download from the
Company's website at: www.cmg-plc.com (http://www.cmg-plc.com/) .
The AGM is to be held at 6 Stratton Street, London, W1J 8LD at 11.00 a.m. on
Friday, 30 January 2026.
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 Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.
Key Extracts from the Company's audited Annual Report and Financial Statements
are set out below:
Chairman's Statement
The Board of Catalyst Media Group plc ("CMG" or the "Company") is pleased to
present the audited financial statements of CMG and its subsidiaries
(together, the "Group") for the year ended 30 June 2025. Such results
incorporate the Company's share of profits/losses from Sports Information
Services (Holdings) Ltd ("SIS") in which CMG has a 20.54% interest.
The main asset of CMG continues to be its 20.54% shareholding in SIS and, as
detailed further below, CMG equity accounts for its share in the
profits/losses of SIS.
After taking account of CMG's share in the profit of SIS for its year ended 31
March 2025 of £0.47 million (2024: £0.39 million), CMG recorded a profit
before taxation of £0.36 million (2024: £0.25 million). Net assets at the
year end were £30.9 million (147.1p per share) (2024: £31.4 million (149.3p
per share)).
In late October 2024 SIS declared a dividend of £3.1 million and CMG received
its share of such dividend on 31 October 2024 amounting to £0.63 million. On
31 October 2025, SIS declared a final dividend of, in aggregate, £1.721
million in respect of its financial year ended 31 March 2025 and CMG has
received its share of such dividend of approximately £0.354 million.
SIS provides essential 24/7 betting content and services to retail and online
operators worldwide through two complementary divisions: Racing Content &
Services and Content Creation, each plays an important role in its business
model.
SIS Racing Content & Services
SIS is a leading distributor of live horse and greyhound racing content,
providing pictures, commentary, data, and pricing to operators globally.
The SIS rights portfolio of more than 60,000 events spans over 100 racecourses
in 15 countries, including the UK, Ireland, and key international horseracing
markets such as Australia, Europe and the Americas.
The strategic focus for this division is to grow racing rights through
long-term agreements, expand its international reach, and enhance data,
production and distribution capabilities to maintain SIS's position as a
trusted source for racing content and associated services.
SIS supplies its retail services, production, distribution and content, to the
major retail brands in the UK on recently renewed long term agreements and
supplies an independent bookmaker service to smaller brands and individual
bookmakers in the UK and Ireland. SIS also supplies the major UK online
operators with horseracing and greyhound racing events and channels optimised
for online viewing. The UK market for racing content remains a challenge with
betting turnover on such content showing a continued year on year downward
trend per the Gambling Commission Industry Statistics annual report which
impacts SIS's revenues on content although production and distribution
revenues are mainly unaffected.
SIS continues to expand its customer base geographically with over 150 live
feeds to customers designed to maximise betting opportunities for
international retail and online operators through multi-year agreements.
SIS Content Creation
The business has diversified in recent years from traditional racing products
and services to investing in short-form, high-frequency betting content. This
includes esports through SIS Competitive Gaming products, and live fixed-odds
numbers draws such as 49's, Fast 15s and 39's, via SIS Numbers products.
These products are produced by SIS in-house, with a strong focus on ensuring
integrity and reliability.
Competitive Gaming (under the H2H Esports brand) delivers 200,000 unique live
events annually and carries ESIC Gold Standard accreditation. The focus to
date has been on two sports; eBasketball and eSoccer however the business
plans to launch two additional sports titles in its current financial year
which will significantly increase the volume of events produced.
The events are distributed in territories worldwide and its last year has seen
significant expansion, particularly in North America with the number of
licensed jurisdictions in which its products are live increasing from 10 to
18. US based Hard Rock Bet has recently launched both existing titles and
FanDuel has now added eSoccer having taken eBasketball since 2024. SIS is
seeing significant growth in revenues year on year and expects this to
continue as additional customers and sports titles are launched under the H2H
Esports Competitive Gaming brand.
The 49's branded numbers business has a range of products from its original
draw (twice daily) to over 500,000 draws per annum from its stable of branded
products, 49's, Fast 15's, 39's and the 49's virtual racing product plus a
bespoke draw product, Lotto365, for bet365.
In total the two divisions, Racing Content & Services and Content
Creation, deliver over 750,000 betting events annually to more than 400
operator clients in over 50 countries, supported by multi-channel distribution
across retail, online, and mobile platforms.
SIS - Results
SIS's final result for its year ended 31 March 2025, prepared in compliance
with United Kingdom Accounting Standards, including Financial Reporting
Standard 102, was a profit before tax of £3.0 million (2024: £4.6 million
(£6.8 million prior to accounting for the discontinued operations of its
Racelab subsidiary)). As previously reported, the reduction in profit before
tax has been driven by a combination of changes to its greyhound racing rights
and, in particular, the cessation of Greyhound Television in April 2024
together with its ongoing investment in the scaling of its content creation
business.
SIS's cash balance on 31 March 2025 was approximately £1.9 million (2024:
£5.9 million). In December 2023, SIS secured an initial £35 million banking
facility to provide funds for working capital and to finance growth, including
acquisition financing. Such banking facility can be increased to £50 million.
On 31 October 2025, SIS declared a total dividend of approximately £1.7
million (2024: £3.1 million) and CMG received its share of such dividend
amounting to £0.35 million on the same date.
The consolidated results of Sports Information Services (Holdings) Limited and
its subsidiaries for its year ended 31 March 2025, prepared in compliance with
United Kingdom Accounting Standards, including Financial Reporting Standard
102, were as follows:
31 March 2025 31 March 2024
Before individually significant items* Individually significant Total Before individually significant items* Individually significant Total
Items* Items*
£'000 £'000 £'000 £'000 £'000 £'000
Turnover 190,519 - 190,519 234,117 - 234,117
Operating expenses (187,373) - (187,373) (226,606) - (226,606)
Impairment of investment - - - - (4,059) (4,059)
Group operating profit / (loss) 3,146 - 3,146 7,511 (4,059) 3,452
Other interest receivable and similar income 170 - 170 1,204 - 1,204
Interest payable and similar expenses (313) - (313) (43) - (43)
Profit / (loss) before taxation 3,003 - 3,003 8,672 (4,059) 4,613
Tax on (profit) (704) - (704) (2,730) - (2,730)
Profit / (loss) after taxation 2,299 - 2,299 5,942 (4,059) 1,883
Other comprehensive income (4) - (4) (28) - (28)
Total comprehensive income 2,295 - 2,295 5,914 (4,059) 1,855
Note: * - Individually significant items for 2024 relate to the impairment of
an investment.
Share of assets and liabilities of associate
31 March 2025 31 March 2024
Non-current assets 27,679 32,950
Current assets 42,350 49,301
Current liabilities (40,578) (52,179)
Non-current liabilities (1,825) (1,922)
Defined benefit pension asset 1,101 1,301
Net assets 28,727 29,451
SIS - India
An arbitration award was made in SIS Live's favour in July 2020 with the award
paid into court. The award is 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 profits.
SIS - Current Trading and Outlook
Management is continuing to invest in scaling its content creation business
with a focus on increasing the volume of events and securing additional
customers whilst also driving the continued expansion of its racing business
both through direct deals and distributors. Progress in North America remains
strong and SIS Content Services Inc. continues to apply for regulatory
licences to support availability of the Competitive Gaming products in further
licensed jurisdictions beyond the current 18 which will serve to fuel growth
of the existing Competitive Gaming business in the US.
The UK budget announcement in November 2025 on, inter alia, gambling taxes did
not directly impact SIS however the impact on both shop numbers and racing
content revenue share from the UK is as yet unknown. The Content Creation
division sees the majority of its revenues from outside the UK and therefore
it is expected the budget will have minimal impact thereon.
SIS has advised CMG that following the growth in its content creation
business, driven by the increased volume of content and the increase in its
customer base, SIS will see growth in its overall like for like operating
profit, before investment in new titles, in its financial year to 31 March
2026.
SIS's cash position as of 30 November 2025 was approximately £8.1 million.
CMG's outlook and Annual General Meeting
The Directors consider that the most appropriate treatment for the Group's
investment in its associate, SIS, as at 30 June 2025 is to retain its holding
at the existing carrying value for the investment of £30.7 million (2024:
£30.8 million), the movement on which reflects the Group's share of SIS's
total comprehensive income of £0.47 million (2024: £0.38 million) and the
dividend received from SIS amounting to £0.63 million (2024: £6.16 million).
The Directors consider that, as at 30 June 2025, there were indicators of
potential impairment relating to the investment in SIS, primarily due to the
decline in racing demand. However, indicators continue to support the strategy
of expansion and increased focus on the growing Competitive Gaming industry.
The Directors consider a value in use calculation as being sufficiently
reliable to support the recoverable amount of the investment as being in
excess of its current carrying value.
The Directors have prepared detailed forecasts for a five-year period based on
the associate's approved business plan, adjusted for expected market
conditions. Beyond the forecast period, a terminal value was calculated using
a terminal growth rate of 3%, which reflects long-term industry growth
expectations and inflation. A discount rate of 14% was applied to the cash
flows as part of the assessment and sensitivity analysis was undertaken to
determine the impact of changes in the assumptions used.
For further details in respect of the judgments and estimation techniques used
by the Directors in their assessment, please refer to notes 1 and 2 to the
full financial statements.
While there can be no certainty of the potential realisation value of this
asset, it is the reasonable belief and judgement of the Directors based,
inter alia, on extensive discussions with SIS's management and a review of its
strategic plans and current and forecast trading, that it is appropriate to
maintain the carrying value of the asset at its current level.
As stated above, SIS is on course to continue to expand its interests in the
USA and elsewhere. Following the recent receipt of its £0.35 million share of
a dividend payment from SIS on 31 October 2025, the Board of CMG has resolved
to maintain the Company's cash reserves and is not intending to declare or
make a dividend payment in respect of these full year results. It will
continue to operate CMG's business with minimal overheads
The next Annual General Meeting of CMG will take place on Friday, 30 January
2026. Formal notice of the meeting is set out at the end of the annual
report and financial statements together with a form of proxy.
Michael Rosenberg, OBE
Chairman
18 December 2025
Strategic Report
The Directors present their strategic report for the year ended 30 June 2025.
Principal activities and review of the business
The principal activities of the business are outlined in the Chairman's
Statement. A review of the business is also included within the Chairman's
Statement.
Principal risks and uncertainties
Investment in SIS
The principal strategic investment of the Group is its 20.54% shareholding in
SIS. The Group is entitled to appoint one director to the board of SIS which
currently comprises nine directors, of which five are appointed by
shareholders, two are independent and one is the Chairman. Although it can
influence the board on strategic decisions, the Group is not in a position to
control the day-to-day business and affairs of SIS other than with the support
of other directors and a majority of the shareholders of SIS. The Group
currently has no representative on the board of SIS.
There are a number of risks and uncertainties associated with the business of
SIS which could potentially have an adverse impact on the value of the Group's
investment. At a technical level this includes the fact that the customers of
SIS rely upon real time data and uninterrupted content delivery. Loss of
content would result in reduced quality of services and potentially reduced
income. SIS has therefore adopted advanced disaster recovery solutions and has
built back up facilities which are located around the UK.
Financial risk
The Group is subject to financial risk through its exposure to financial
assets and liabilities. The Group's main financial risk is its exposure to its
investment in SIS.
Liquidity risk
There is a very low risk that the Group will encounter difficulty in meeting
its financial obligations as they fall due, on the basis that the Group
operates with minimal overheads and cash flow is well managed.
The Group's policy is to ensure that it will always have sufficient cash to
allow it to meet its liabilities when they become due. The principal
liabilities of the Group and Company arise in respect of administrative
expenditure and trade and other payables. Trade and other payables are all
payable within three months.
The Board receives cash flow projections on a regular basis as well as
information on cash balances.
Key Performance Indicators ("KPIs")
The Company's key performance indicators used by the Board in monitoring the
general performance of the Group and its investments are:
Net asset value per share
The net asset value per share of the Group was approximately 147 pence as at
30 June 2025 (2024: 149 pence). The net asset value of the Group as at 30 June
2025 and 30 June 2024 is shown in the Group's consolidated statement of
financial position.
Administrative expenses
The Directors closely monitor the anticipated overheads for the Group and
ensure that these are kept to a minimum.
Earnings per share ("EPS")
EPS shows the relative performance year-on-year of the Group's profitability
measured as an amount of profit or loss attributable to one ordinary share.
The calculation of earnings per share is based on the weighted average number
of ordinary shares in issue for the financial year concerned and the
profit/(loss) after taxation attributable to ordinary shareholders. EPS in
respect of operations for the year and the prior financial year is shown in
the Group consolidated statement of comprehensive income.
Key Performance Indicators of Associate
The Directors additionally monitor the performance of SIS in order to evaluate
the general performance of the Group. The Directors consider that group
turnover, group operating profit percentage before individually significant
items, net cashflow from operating profits and average number of employees are
of most significance in evaluating the performance of the Group. The 2025
financial results of SIS are disclosed in the Chairman's Statement.
s172 Statement
CMG's directors are mindful of their responsibilities under section 172 of the
Companies Act 2006 to promote the success of the business through operating in
accordance with good corporate practice and with considered engagement with
the Group's stakeholders. Several of the Group's major shareholders are also
directors of the Group, as referenced in the Directors' Report, and are
therefore actively involved in all key decision-making. Please refer to the
Corporate Governance Statement for further details of engagement with
stakeholders.
The Board of directors regularly review and identify other principal
stakeholders of the business, and decisions in respect of the Group's
activities are made only after reviewing, and discussing, the potential impact
on such stakeholders. Furthermore, in terms of engagement with the Group's
suppliers, the directors continue to actively monitor ethical standards and
environmental issues to ensure that the wider business is compliant with
global standards.
Michael Rosenberg, OBE
Chairman
18 December 2025
Consolidated statement of comprehensive income for the year ended 30 June 2025
Year Year
ended ended
30 June 30 June
2025 2024
£ £
Revenue 25,000 25,000
Administrative expenses (148,960) (184,611)
Other operating income 3,005 14,669
Operating loss (120,955) (144,942)
Financial income 7,652 9,859
Financial costs (292) -
Net financial income 7,360 9,859
Share of profit of equity-accounted associate, net of tax 472,215 386,768
Profit before taxation 358,620 251,685
Taxation 28,500 31,500
Profit for the year 387,120 283,185
Share of other comprehensive loss of associate (822) (5,751)
Total comprehensive profit for the year 386,298 277,434
Attributable to equity holders of the Company 386,298 277,434
Profit per share:
Basic 1.84p 1.35p
Diluted 1.84p 1.35p
The above Consolidated Statement of Comprehensive Income should be read in
conjunction with the accompanying notes in the Company's full Annual Report
and Financial Statements.
Consolidated statement of financial position as at 30 June 2025
30 June 30 June
2025 2024
£ £
Assets
Non-current assets
Investment in associate 30,670,417 30,831,299
30,670,417 30,831,299
Current assets
Trade and other receivables 115,522 95,203
Cash and cash equivalents 206,650 525,192
322,172 620,395
Total assets 30,992,589 31,451,694
Equity and liabilities
Capital and reserves attributable to equity holders of the parent
Share capital 2,103,202 2,103,202
Capital redemption reserve 711,117 711,117
Merger reserve 2,402,674 2,402,674
Retained profits 25,723,012 26,177,995
Total equity 30,940,005 31,394,988
Current liabilities
Trade and other payables 52,584 56,706
Total equity and liabilities 30,992,589 31,451,694
The above Consolidated Statement of Financial Position should be read in
conjunction with the accompanying notes in the Company's full Annual Report
and Financial Statements.
Consolidated statement of changes in equity for the year ended 30 June 2025
Attributable to equity holders of the Parent Company
30 June 2025 Share Capital Merger Retained Total
Capital Redemption Reserve Reserve Profits Shareholders
Equity
£ £ £ £ £
At 1 July 2024 2,103,202 711,117 2,402,674 26,177,995 31,394,988
Profit for the year - - - 387,120 387,120
Other comprehensive income:
Share of other comprehensive loss of associate - - - (822) (822)
Total comprehensive profit for the period - - - 386,298 386,298
Dividends paid - - - (841,281) (841,281)
At 30 June 2025 2,103,202 711,117 2,402,674 25,723,012 30,940,005
The following describes the nature and purpose of each reserve within owners'
equity:
Share capital Amount subscribed for shares at nominal value.
Capital redemption reserve Amounts arising from the purchase by the group of its own shares.
Merger reserve Amounts arising from the merger of subsidiary investments.
Retained profits Cumulative profit of the Group attributable to equity shareholders.
Attributable to equity holders of the Parent Company
30 June 2024 Share Capital Merger Retained Total
Capital Redemption Reserve Reserve Profits Shareholders
Equity
£ £ £ £ £
At 1 July 2023 2,103,202 711,117 2,402,674 31,579,260 36,796,253
Profit for the year - - - 283,185 283,185
Other comprehensive income
Share of other comprehensive loss of associate - - - (5,751) (5,751)
Total comprehensive profit for the period - - - 277,434 277,434
Dividends paid - - - (5,678,699) (5,678,699)
At 30 June 2024 2,103,202 711,117 2,402,674 26,177,995 31,394,988
Consolidated statement of cash flows for the year ended 30 June 2025
Year ended Year ended
30 June 30 June
2025 2024
£ £
Cash flow from operating activities
Profit before taxation 358,620 251,685
Adjustments for:
Share of (profit) from associate (472,215) (386,768)
Finance income (7,652) (9,859)
Finance expense 292 -
Corporation taxes recovered 36,549 -
Net cash flow used in operating activities before changes in working capital (84,406) (144,942)
(Increase) / decrease in trade and other receivables (28,368) 14,965
(Decrease) in trade and other payables (4,122) (11,657)
Net cash flow used in operating activities (116,896) (141,634)
Investing activities
Dividend received 632,275 6,161,302
Interest received 7,652 9,859
Net cash flow from investing activities 639,927 6,171,161
Financing activities
Dividends paid (841,281) (5,678,699)
Interest paid (292) -
Net cash flow used in financing activities (841,573) (5,678,699)
Net (decrease) / increase in cash and cash equivalents in the year (318,542) 350,828
Cash and cash equivalents at the beginning of the year 525,192 174,364
Cash and cash equivalents at the end of the year 206,650 525,192
The above Consolidated Statement of Cash Flows should be read in conjunction
with the accompanying notes in the Company's full Annual Report and Financial
Statements.
Notes to the consolidated financial information
1. Basis of preparation and significant accounting policies
The consolidated financial information set out above does not constitute the
Group's financial statements for the years ended 30 June 2025 or 30 June 2024
but is derived from those financial statements. Statutory financial
statements for 2024 have been delivered to the Registrar of Companies and
those for 2025 have been approved by the Board and will be delivered in due
course. The auditors have reported on the 2025 and 2024 financial statements
which carried unqualified audit reports and did not contain a statement under
section 498(2) or 498(3) of the Companies Act 2006.
While the financial information included in this announcement has been
compiled in accordance with, inter alia, UK-adopted international accounting
standards, this announcement does not in itself contain sufficient information
to comply with such standards. The accounting policies used in the preparation
of this announcement are consistent with those in the full financial
statements including those applicable to SIS, given its materiality to the
Group as a whole.
CMG is an AIM quoted public limited company registered in England and Wales
where it is domiciled for tax purposes. Its financial statements are
prepared under the historical cost convention.
Going concern
The Directors can report that based on the Group's budgets and financial
projections, they have satisfied themselves that the business is a going
concern covering a period of at least twelve months from the date of approval
of the financial statements. In assessing the Group as a going concern, the
directors are also mindful of the business of SIS that provides the entire
value of the Group. The directors are satisfied that SIS is a going concern.
The Board has a reasonable expectation that the Company and its Group have
adequate resources and facilities to continue in operational existence for the
foreseeable future and the financial statements are accordingly prepared on a
going concern basis.
2. Investment in associate
Year Ended 30 June 2025 Group
£
Cost
At 1 July 2024 30,831,299
Share of profit - 2025 472,215
Share of other comprehensive loss of associate - 2025 (822)
Dividend received - 2025 (632,275)
At 30 June 2025 30,670,417
Year Ended 30 June 2024 Group
£
Cost
At 1 July 2023 36,611,584
Share of profit - 2024 386,768
Share of other comprehensive loss of associate - 2024 (5,751)
Dividend received - 2024 (6,161,302)
At 30 June 2024 30,831,299
The Group's interest in its associate, SIS, a company incorporated in England
and Wales, is held by Alternateport Limited. Alternateport Limited holds an
investment of 20.54% in the equity share capital of SIS and is entitled to
appoint a director and alternate director to the SIS board. Alternateport
Limited is a wholly owned subsidiary of Catalyst Media Holdings Limited, which
is itself a wholly owned subsidiary of Catalyst Media Group plc.
A copy of the strategic forecasts prepared by SIS was made available to the
Directors of CMG, showing management forecasts of the statement of
comprehensive income, statement of financial position and statement of cash
flows. SIS's management have assumed a growing level of future profits at a
steady rate over a period of five years.
In assessing whether any impairment indicators existed at 30 June 2025, the
Directors of CMG considered the requirements of IAS 36 and evaluated the value
in use of the investment in SIS. The value in use calculation was based on
SIS's most recently reported EBITDA, adjusted for exceptional and
non-recurring items, and projected cash flows derived from SIS's strategic
forecasts. These cash flows were discounted to present value using a discount
rate that reflects current market assessments of the time value of money and
the risks specific to SIS.
The Directors consider that, as at 30 June 2025, there were indicators of
potential impairment relating to the investment in SIS, primarily due to the
decline in racing demand. However, indicators continue to support the strategy
of expansion and increased focus on the growing Competitive Gaming industry.
The value in use calculation indicated that the recoverable amount of the
investment in SIS exceeded its carrying value of £30.7m, and therefore no
impairment is required. The Directors consider that the value at 30 June 2025
is appropriate based on the strategic plans of SIS. Further details of the
significant judgments applied in determining the recoverable amount of the
investment in SIS are set out in Note 1 of the Company's full Annual Report
and Financial Statements.
Share of profit of associate
2025 2025 2024
CMG share CMG share
SIS Total
£'000 £'000
£'000
Revenue 190,519 39,133 48,088
Operating profit before individually significant items
3,146 646 1,543
Net interest (payable)/receivable (143) (29) 238
Individually significant items - - (833)
Profit before tax 3,003 617 948
Taxation (704) (145) (561)
Share of profit after taxation 2,299 472 387
Net income from associate 2,299 472 387
Other comprehensive income:
Actuarial (loss) (5) (1) (9)
Deferred tax 1 - 3
Total other comprehensive income (4) (1) (6)
Share of assets and liabilities of associate
Gross assets 71,130 14,610 17,161
Gross liabilities (42,403) (8,710) (11,112)
Share of Net Asset Value 28,727 5,900 6,049
SIS prepares financial statements in accordance with FRS 102, whereas CMG
prepares financial statements in accordance with UK-adopted international
accounting standards. The directors have reviewed the potential differences in
accounting treatment under the respective frameworks and have made an
adjustment to reflect an expected credit loss provision of £nil (2024: £nil)
under IFRS 9, and to recognise adjusted net income from its associate of
£0.47m (2024: £0.39m). Following the review, the directors have concluded
that there are no other material differences of accounting treatment in the
application of FRS 102 and IFRS on SIS's results for the year.
Regarding SIS India, as referenced in the Chairman's statement, 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 profits.
3. Post Balance Sheet Events
On 9 September 2025, the Company purchased on the market 180,102 ordinary
shares of 10p each in its capital at a price of 50p per ordinary share for
total consideration of £90,051, utilising and within the set parameters of
the Company's pre-existing authority to make such market purchases as granted
at the Company's annual general meeting held on 17 January 2025. The purchased
shares are being held in treasury.
On 31 October 2025, CMG received its 20.54% share of an ordinary dividend paid
by SIS totalling approximately £1.7 million. As noted, the Board of CMG is
not intending to declare or make a dividend payment in respect of these full
year results.
See note 2 for a description of the impact of the post balance sheet events as
they relate to SIS's reporting date (31 March 2025) on the Group's valuation
of its investment in associate as at 30 June 2025.
- ENDS -
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