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2005 Results Presentation. Today’s Agenda 1.2005 Results review 2.Business Review 3.Future Prospects.

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Presentation on theme: "2005 Results Presentation. Today’s Agenda 1.2005 Results review 2.Business Review 3.Future Prospects."— Presentation transcript:

1 2005 Results Presentation

2 Today’s Agenda 1.2005 Results review 2.Business Review 3.Future Prospects

3 2005 Overview Challenging year – internally and externally Core subscriber business held up well to pressure on High Street spending –Overall subscriber numbers increased 12% to [12,932] –Acquisition of Ideal Music & Media System sales below expectations: –Consumer spending impact on client spending –Legacy warranty issues Strengthened Management team Business restructuring in Q4 to focus on core growth opportunities

4 2005 Final Results Year ended 31st December 2005 £’000’s Sales7,922 Recurring revenues4,818 Service sales597 System sales2,507 Adjusted EBITDA 1,326 Depreciation (672) Adjusted operating profit 654 One-off warranty obligations (278) One-off overhead expenditure (216) Operating profit 160 Amortisation of goodwill (645) Interest (250) Profit/(Loss) before Tax (744) Earnings/(Loss) per share (1.24)p

5 Consolidated Balance Sheet

6 Business Review

7 Trading Highlights Subscriber sites increased from 11,560 to 12,937 New client wins include: Progress on existing roll-outs: Linux based AV roll-outs: Acquisition of Ideal Music completed at end of H1

8 Sales Mix

9 Other operational actions Operating efficiency measures –Adoption of Linux based software for all Audio and AV players –Migration of all clients on common operating system Addressed warranty issue –Thorough review of installed base –Upfront investment of £278k to bring inherited systems up to standard –Tightened sales/contract process to avoid repetition Investment in non-licensed music channels –Mitigates impact of proposed PPL licence fee increases –1,000 subscriber sites from January 2006

10 Restructured business to focus on growth opportunities  Exited “pro-audio” sector, reducing stock levels, service costs and warranty exposure  Closure and relocation of London manufacturing operations  Headcount reduction from 60 to 51 during the year  Exceptional reorganisation costs of £0.2m incurred in 2005 Strengthened executive management team –Derek Mapp appointed Executive Chairman in Sept 05 –Ken Pratt appointed Finance Director in March 06 Strategic Actions

11 Future Prospects

12 Near term outlook Strong order book and sales pipeline Improved operational efficiency & service Competitive market and challenging retail environment Reduced exposure to volatile systems sales Strengthened management team and financial systems

13 Market opportunity remains very attractive Operational gearing from adding new subscribers to existing system and operational structure Large number of outlets still not using a third party provider Fragmented sector offers opportunities for further consolidation Longer term outlook

14 Competitor Analysis – Major UK suppliers

15 Board of Directors Derek Mapp*Chairman Founder of Tom Cobleigh plc & Leapfrog formerly Chairman EMDA Chairman of Staffline plc and senior NED at Informa plc Michael Clark*Managing Director Imagesound CEO Ken Pratt*Finance Director formerly Finance Director of Eton Group plc Prior to that, Finance Director Tom Cobleigh plc Richard GregoryNon-exec & Senior Independent Director Former Managing Director Yorkshire Television Non-exec Director of Yorkshire & Clydesdale Banks and National Australia Group Europe Limited Charles FairbairnNon-exec Director Non-exec Director of Research Now plc, Statpro and Bright Things plc Finance Director of Perspective Capital plc and CCO Capital plc *Today’s Presentation Team

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