REG - Catalyst Media Group - Update Regarding SIS

Catalyst MediaAnnouncement

21/11/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221121:nRSU9813Ga&default-theme=true

RNS Number : 9813G  Catalyst Media Group PLC  21 November 2022

21 November 2022

 

Catalyst Media Group Plc

("CMG", "Catalyst" or the "Company")

 

Update regarding SIS

CMG is pleased to provide the following update in respect of Sports
Information Services (Holdings) Limited ("SIS") in which the Company has an
approximate 20.54% interest, following the publication of SIS's audited
financial statements for its financial year ended 31 March 2022.

On 30 June 2022, the Company announced that SIS was expected to return to
profitability with an anticipated profit before tax of between £6m and £8m
for its financial year. The final result for its year ended 31 March 2022 was
a profit before tax of £7.0 million, the main driver being a return to normal
trading conditions following the COVID-19 pandemic abating and the expansion
of SIS's online customer base.

SIS's cash balance on 31 March 2022 was approximately £62.8 million, an
increase on the prior year due to its return to profitability and a normal
working capital position after the pandemic disruption. On 18 November 2022,
SIS declared an interim dividend of £4.4m with CMG expecting to receive its
share of such dividend shortly.

The Company has been informed that SIS has started its new financial year
well, and management continues to pursue and win new business opportunities
and has advised CMG that it expects to close its financial year to March 2023
with increased turnover year-on-year.

SIS' cash position as at 1 November 2022 was approximately £58m.

SIS has informed the Company that it has engaged Oakvale Capital LLP to review
strategic options for the SIS business.

The principal results of SIS for its financial year ended 31 March 2022 were
as follows:

                                                                                                                            As restated **
                                               31 March 2022                                                                31 March 2021
                                               Before individually significant items*  Individually significant  Total      Before individually significant items*  Individually significant  Total

                                                                                       Items*                                                                       Items*
                                               £'000                                   £'000                     £'000      £'000                                   £'000                     £'000
 Turnover                                      218,349                                 -                         218,349    130,107                                 -                         130,107
 Operating expenses                            (209,290)                               (2,200)                   (211,490)  (139,425)                               (622)                     (140,047)
 Other operating income                        105                                     -                         105        1,863                                   -                         1,863
 Group operating profit / (loss)               9,164                                   (2,200)                   6,964      (7,455)                                 (622)                     (8,077)
 Other interest receivable and similar income  275                                     -                         275        310                                     -                         310
 Interest payable and similar expenses         (277)                                   -                         (277)      (3)                                     -                         (3)
 Profit / (loss) before taxation               9,162                                   (2,200)                   6,962      (7,148)                                 (622)                     (7,770)
 Tax on (profit) / loss                        (1,762)                                 418                       (1,344)    935                                     118                       1,053
 Profit / (loss) after taxation                7,400                                   (1,782)                   5,618      (6,213)                                 (504)                     (6,717)
 Other comprehensive income                    330                                     -                         330        (917)                                   -                         (917)
 Total comprehensive income                    7,730                                   (1,782)                   5,948      (7,130)                                 (504)                     (7,634)

 

Notes:

* - Individually significant items relate to litigation fees.

** - SIS's FY2021 accounts were restated to reflect the capitalisation of new
product and IT development costs. The impact on the prior year profit before
tax was £0.8m (Loss of £7.8m) versus that previously reported (being a loss
of £8.6m).

                                   As restated
                    31 March 2022  31 March 2021
 Gross assets       126,605        102,135
 Gross liabilities  (66,293)       (47,771)
 Net assets         60,312         54,364

 

In light of SIS's abovementioned positive results, the Company is in the
process of reviewing the carrying value of its interest in SIS in connection
with the preparation of Catalyst's forthcoming accounts for its financial year
ended 30 June 2022, and, while still subject to finalisation, it is currently
anticipated that there will be a material reversal of historic impairments.

 

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.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDURUURUOUAUAA