Download Zest Interims 2009 PDF

30 June 2009
Zest Group plc
(“Zest” or “the Group”)
Interim Results
for the period ended 31 March 2009
Zest Group plc (AIM:ZEST), announces its interim results for the six months ended 31 March
2009.
During the period the Group made a loss before taxation of £113,000 (2008: loss £341,000).
There was a loss per share from continuing operations of 0.01p (2008: loss per share 0.20p).
Current trading
During the period the Group has continued to seek to exploit the publishing and recording rights
from Tara Chinn, Nasio Fontaine and Tony Fennell.
The Board is currently considering a proposed UK/European release for Tara Chinn's debut
album "Night Racing" through an independent marketing company and expects to make a
decision shortly.
Zest owns 100% of the recording and publishing rights of all five Nasio Fontaine's albums and is
currently negotiating a new worldwide license deal. In addition, VP Records/Greensleeves will
be releasing a "Best of" Nasio album with a DVD late in the summer of 2009. To support this
release, Nasio is being asked to tour in the USA and Europe.
A songwriter and record producer signed to Zest, Tony Fennell, has a song on hold with Disney
Records and has a number of other covers currently being considered by major record labels.
Tony is also recording and writing an album with a mainstream female artist, who for legal
reasons cannot be named at this time.
Whilst the Board continues to support these artists and is confident that the Group will receive
some positive financial benefit from these relationships, in the current economic climate the
quantum and timing of this benefit is subject to significant uncertainty. Accordingly, in order to
take a prudent view of the prospects, the Board agreed to make a full provision against the
recoverability of these amounts in the financial year to 30 September 2008.
Board changes
On 13 January 2009 Jon Crawley resigned from the Board to pursue other business interests. The
Board would like to thank him again for his contribution to the Group.
Outlook
The Group will continue to seek to optimise the value of existing artists and where the
opportunity arises, seek to add further rights by signing new artists and songwriters. In addition,
Zest continues to look for potential acquisition opportunities and to explore alternative routes to
securing shareholder value.
I would like to thank the staff and our shareholders for their continued support.
Richard Griffiths
Chairman
30 June 2009
ZEST GROUP PLC
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 31 MARCH 2009
Six months ended
Note
31 March 2009
£'000
Six months
ended 31
March 2008
£'000
Year ended 30
September
2008
£'000
(117)
(10)
(285)
(20)
(78)
(533)
(469)
(117)
(295)
(1,100)
(117)
(295)
(1,100)
4
(46)
(180)
Loss from continuing operations for the period
before taxation
(113)
(341)
(1,280)
Taxation expense
Loss from continuing operations
(113)
(341)
(1,280)
Loss from discontinued operations
Loss for the period
(113)
(738)
(1,079)
(475)
(1,755)
4
(0.01)p
(0.62)p
(1.01)p
4
(0.01)p
(0.20)p
(0.74)p
4
-p
(0.42)p
(0.27)p
Administrative expenses
- amortisation of intangibles
- impairment of intangible assets
- impairment of advance payments to artists
- other administrative expenses
Total administrative expenses
Operating loss from continuing operations
Finance costs
Basic and diluted loss per share from total operations
Basic and diluted loss per share from continuing
operations
Basic and diluted loss per share from discontinued
operations
ZEST GROUP PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2009
£'000
Share
premium
£'000
Share
based
payment
reserve
£'000
At 1 October 2007
Share based payment
Loss for the year
At 30 September 2008
Share based payments
Loss for the period
434
434
-
3,598
3,598
-
126
40
166
11
-
(2,304)
(1,755)
(4,059)
(113)
1,854
40
(1,755)
139
11
(113)
At 31 March 2009
434
3,598
177
(4,172)
37
Share
capital
Retained
earnings Total equity
£'000
£'000
ZEST GROUP PLC
UNAUDITED CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2009
31 March 2009 31 March 2008
£'000
£'000
30 September
2008
£'000
1
88
1
1
1
89
1
Current assets
Trade and other receivables
Cash and cash equivalents
Total current assets
76
53
129
595
333
928
133
62
195
Total assets
130
1,017
196
93
93
216
216
57
57
434
3,598
177
(4,172)
37
434
3,598
152
(3,383)
801
434
3,598
166
(4,059)
139
130
1,017
196
Note
ASSETS
Non-current assets
Intangible assets
Property, plant and equipment
EQUITY AND LIABILITIES
Current liabilities
Trade and other payables
Total liabilities
Equity
Share capital
Share premium
Share based payment reserve
Retained earnings
Equity shareholder's funds
Total equity and liabilities
5
ZEST GROUP PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD 31 MARCH 2009
Six months
ended 31 March
2009
£'000
Six months
ended 31
March 2008
£'000
Year to 30
September
2008
£'000
(113)
(4)
57
36
11
(341)
49
(4)
10
46
(164)
26
(1,280)
187
(7)
20
1
78
608
(323)
40
(13)
(378)
(676)
-
519
519
(13)
141
(157)
Investing activities
Continuing activities
Purchase of property, plant and equipment
Finance cost
Finance income
Net cash inflow/(outflow) from investing activities
4
4
(49)
4
(45)
(1)
(49)
7
(43)
Discontinued operations
Net cash inflow from investing activities from
discontinued operations
-
1,866
2,029
Net cash inflow from investing activities
4
1,821
1,986
Cash flow from financing activities
Continuing operations
Repayment of loans
-
(1,661)
(1,799)
Net change in cash and cash equivalents
(9)
301
30
Cash and cash equivalents at beginning of period
62
32
32
Cash and cash equivalents at end of period
53
333
62
Operating activities
Continuing activities
Loss after taxation
Finance costs
Finance income
Amortisation of intangibles
Depreciation
Impairment of intangible fixed assets
Decrease in trade and other receivables
Increase/(decrease) in trade and other payables
Equity settled share based payments
Net cash outflow from operating activities
from continuing activities
Discontinued operations
Net cash inflow from operating actives from discontinued
operations
Total cash (outflow)/inflow from operating activities
ZEST GROUP PLC
NOTES TO THE INTERIM REPORT
FOR THE PERIOD ENDED 31 MARCH 2009
1 GENERAL INFORMATION
The financial information for the period ended 31 March 2009 does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. The figures for the year ended 30 September 2008
have been extracted from the 2008 statutory financial statements prepared under International Financial
Reporting Standards as adopted by the European Union. The auditors' report on those accounts was
unqualified and did not contain a statement under section 237(2) of the Companies Act 1985.
2 BASIS OF PREPARATION
This consolidated financial information for the six months ended 31 March 2009 has been prepared in
accordance with IAS34, "Interim Financial Reporting" as adopted by the European Union. The half yearly
consolidated financial report should be read in conjunction with the annual financial statements for the year
ended 30 September 2008, which have been prepared in accordance with IFRS as adopted by the European
Union.
This interim financial information has been prepared using the accounting policies set out in the Group's
2008 statutory accounts.
Copies of the interim results for the six months are being sent to all shareholders. A copy can also be found
on the Company's website at www.zestmusic.com
3 SEGMENTAL REPORTING
(a) By business segment (Primary segment)
As defined under International Accounting Standard 14 (IAS 14) the only material business segment the
Group has is that of music publishing and distribution.
(b) By Geographical Segment (Secondary segment)
Under the definitions contained in IAS 14 the only material geographic segment the Group operates in is
the United Kingdom.
4 LOSS PER SHARE
The calculation of the loss per share is based on the loss attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the period.
Six months
Six months ended ended 31 March Year ended 30
31 March 2009
2008 September 2008
Loss for the period from total operations (£'000)
Weighted average number of 0.25p ordinary shares
Loss per share from total operations
Loss for the period from continuing operations (£'000)
Weighted average number of 0.25p ordinary shares
Loss per share from continuing operations
Loss for the period from discontinued operations (£'000)
Weighted average number of 0.25p ordinary shares
Loss per share from discontinued operations
(113)
(1,079)
(1,755)
173,619,050
173,619,050
173,619,050
(0.01)p
(0.62)p
(1.01)p
(113)
(341)
(1,280)
173,619,050
173,619,050
173,619,050
(0.01)p
(0.20)p
(0.74)p
-
(738)
(475)
173,619,050
173,619,050
173,619,050
-p
(0.42)p
(0.27)p
The share options are anti-dilutive.
5 SHARE CAPITAL
Authorised
4,000,000,000 ordinary shares of 0.25p
Allotted, issued and fully paid
173,619,050 (31 March 2008 and 30 September 2008:
173,619,050) ordinary shares of 0.25p
Unaudited 31
March 2009
£'000
Unaudited
31 March
2008
£'000
Audited
30 September
2008
£'000
10,000
10,000
10,000
434
434
434
Enquiries:
Steve Weltman, Chief Executive, Zest Group plc
+44 (0) 208 398 4144
Tim Cofman/Nicola Rayner, W H Ireland Ltd
+44 (0) 121 265 6330