Vitesse Media, the AIM-listed online, events and print media business, announces its results for the six months ended 31 July 2006.

Overview:

  • Underlying sales growth of nearly 25 per cent despite a tough advertising climate; overall sales up by nearly 40 per cent.
  • Two months contribution from Blue Chip Publishing (acquired in June 2006) showing a small profit
  • Gross profit up 63 per cent; overall operating loss halved compared with the same time last year; loss per share reduced from 2.47p to 0.96p
  • Positive indicator with the level of deferred income up nearly 25 per cent to £506k over the same time last year
  • Net current assets up from £205k to £309k, an increase of over 50 per cent over the same time last year; cash balance at 31 July £470k (£465k at 31 January 2006)

Chairman's Statement

We are pleased with the progress the business has made on its path towards profitability; that trend will continue in the second half-year, which remains the more dominant of the two halves. Online activities continue to perform well and we are making further investment in our three major websites, SmallBusiness.co.uk, GrowthBusiness.co.uk and GrowthCompany.co.uk.

Our events continue to mature and make a greater financial contribution towards the business. In June we acquired Blue Chip Publishing, publisher of M&A Magazine. It has made a small positive contribution to these figures and we remain confident that we can increase this contribution over the coming years by redeveloping its website and launching events in the B2B area where we already have substantial experience. We will be running the first ever M&A Awards in February next year.

Our plans are well advanced to relaunch the M&A website, to extend our content management system and our customer relationship management software to the business, improving its efficiency and enabling us to take full advantage of all the synergies in content between the businesses. We expect this work to be completed before the end of this financial year. The full benefits of these developments are anticipated to show through in the next two financial years.

We continue to seek out appropriate acquisitions, displaying obvious synergies with our group. Indeed, we are currently examining several possible purchases, of the same size as Blue Chip or larger. We will seek to advance only those acquisitions that will generate clear and demonstrable benefits for Vitesse Media shareholders.

The management team has been strengthened and will drive the business forward over the coming year by continuing its policy of acquisitive and organic growth.