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Preliminary Results Presentation March 2007. 1.2006 Preliminary Results Review 2.Business Review 3.Prospects Agenda.

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Presentation on theme: "Preliminary Results Presentation March 2007. 1.2006 Preliminary Results Review 2.Business Review 3.Prospects Agenda."— Presentation transcript:

1 Preliminary Results Presentation March 2007

2 1.2006 Preliminary Results Review 2.Business Review 3.Prospects Agenda

3 2006 Overview  Solid operating performance building on last year’s restructuring  Maintained focus on improving the quality of recurring revenues  2006 acquisitions performing well  Financial restructuring completed

4 Financial Highlights  Full Year Turnover of £8.2m (£7.9m)up 4%  Recurring revenue of £5.1m (£4.6m)up 11%  Adjusted EBITDA of £1.6m (2005: £1.0m) up 60%  Adjusted PBT of £0.6m (2005: £nil) Adjusted PBT excludes: profit on sale of head office, non-recurring costs and the amortisation of intangible assets

5 Dec 2006 Dec 2005 £000 Sales8,184 7,922 2006 Recurring revenues5,100 2006 Service & system sales3,100 Adjusted EBITDA1,630 1,043 Depreciation of tangible assets (561) (672) Amortisation of intangible assets (1,903) (1,980) One-off corporate restructuring (109) (216) Charge for share scheme awards (145) (111) Operating loss(1,088) (1,936) Profit on sale of asset 609 - Interest (293) (259) Loss before taxation(772) (2,195) Taxation 361 - Loss after taxation(411) (2,195) 2006 Preliminary Results

6 20062005 £000 Intangible fixed assets9,43810,124 Tangible fixed assets8912,006 Deferred tax asset361- Total fixed assets10,69012,130 Stock440482 Debtors2,5102,051 Total assets13,64014,663 Bank overdraft(1,085)(558) Interest-bearing loans and borrowings(112)(2,747) Trade and other payables(3,709)(4,215) Current Liabilities(4,906)(7,520) Non current interest-bearing loans and borrowings(1,437)- Total Liabilities(6,343)(7,520) Net assets7,2977,143 Consolidated Balance Sheet

7 Improved financial position £’000s20062005 Current portion of secured bank loans1022,716 Current portion of Finance lease liabilities1031 Unsecured bank overdraft1,085558 1,1973,305 Oct 2006: Issued £1.45m of 5% convertible loan notes (2012) to Quester Plc

8 Business Review

9  New clients and renewals increase subscriber sites to 13,383 (12,937)  Major wins include:  New sites and renewals at:  MusicStyling.com performing well:  Impact Automedia (“Brand radio”) adds: –Cost benefit from “Waterfront” studios Trading Highlights

10  New offering in “Young persons” bar sector  Distributor appointed for Iberian Peninsular  Growing take up of broadband delivery systems  Still awaiting decision on PPL from Copyright Tribunal (Portugal) Trading Highlights

11  Sale and leaseback of Chesterfield head office –£1.6m (pre expenses) –£1.2m used to reduce debt –£0.4m (less expenses) to working capital –Book value of asset £980k – exceptional profit c. £0.6m –10 year lease at initial rent of £114,500 p.a.  Net bank debt reduced to £1.3m at year end  £1.5m convertible loan note from Quester plc  New banking facilities in place –£7m of acquisition financing Financial restructuring

12  Retail and leisure markets remain challenging –Increasing the importance of brand differentiation –Pipeline of opportunities & renewals  Strengthened management –Oliver Wilson - Sales Director (ex Avanti Screen Media) –Stephen Yapp - Non-Executive Director  Full year impact of acquisitions to come  Confident of further progress in 2007 Near term Outlook

13  Market opportunity remains attractive (UK and Europe)  Continue to improve operational gearing & profitability –Focus on higher quality clients –Adding new subscribers to existing systems  Large number of outlets still not using a third party provider  Fragmented sector offers opportunities for further consolidation Longer term outlook

14 Appendix

15 NameOutletKey customers DMX UK16,000Boots, Arcadia Group, H&M Imagesound plc13,38345 major retail & leisure clients TSG4,500Lloyds No1, Pizza hut Immedia plc4,500Lloyds Chemist, Londis TSC2,000Burger King, Café Nero GMS1,000MFI, Clarks Avanti1,500Toni & Guy, Translusis Kalidovision1200Venue Bars Creative Retail Entertainment1,200M&B Birthdays Team Talk1,200Asda, Allsports C-Burn1,000Conran Restaurants, S&N Radio Ga Ga500All Bar One Competitor analysis – UK suppliers

16 Derek MappExecutive Chairman Founder of Tom Cobleigh plc & Leapfrog Chairman of Staffline plc and senior NED at Informa plc Michael ClarkManaging Director Imagesound founder Ken PrattFinance Director Former FD and co-Director of Tom Cobleigh plc and Eton Group Limited Richard GregoryNon-exec Director Former Managing Director Yorkshire Television Non-exec Director of Yorkshire & Clydesdale Banks and National Australia Group Europe Limited Stephen YappNon-exec Director (Chairs Audit Committee) Previously DCS Group David Clayton-SmithNon-exec Director Management Consultant 12 yrs retail experience with Halfords, Boots, Do It All Group Marketing Director of Courage Directors

17 Imagesound plc. Venture Way Dunston Technology Park Chesterfield S41 8NE T: 01246 572 990 www.imagesound.co.uk


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