One Media Publishing Group Plc
Consolidated Financial Statements
For the year ended 31 October 2008
Company No.5799897
One Media Publishing Group PLC
Company Information
Directors
Michael Anthony Infante JP
Nigel Smethers
Scott Cohen
Secretary
Nigel Smethers
Registered Office
Office 313/314
Main Administration Building
Pinewood Studios
Pinewood Road
Iver Heath
Buckinghamshire
SL0 0NH
Corporate Advisors
Dowgate Capital Advisers Limited
Solicitors
Bankers
Registrars
Auditors
46 Worship Street
London
EC2A 2EA
Marriott Harrison
12 Great James Street
London
WC1N 3DR
Barclays Bank Plc
Media centre
27 Soho Square
London
W1D 3QR
Share Registrars Ltd
9 Lion and Lamb Yard
Farnham
Surrey
GU9 7LL
Kingston Smith LLP
Chartered accountants
Devonshire House
60 Goswell Road
London
EC1M 7AD
One Media Publishing Group PLC
Contents
Chairman's statement
Directors' report
Independent auditors' report
Consolidated profit and loss account
Consolidated balance sheet
Company balance sheet
Consolidated cash flow statement
Notes to the consolidated cash flow statement
Page
1 - 2
3- 5
6 - 7
8
9
10
11
12
Notes to the consolidated financial statements
13 - 23
One Media Publishing Group PLC
Chairman's Statement
For the year ended 31 October 2008
I am pleased to be able to make this my first report to you as interim Chairman of the Group.
Firstly, I would like to thank Paul Evans for his Chairmanship since One Media launched in 2006. We wish Paul
continued success with his other business activities which we know to be very demanding on his time. In selecting a
new non-executive director, it is our intention to look within the music publishing industry. We are still in a great time
of evolution within our industry and, coupled with dramatic shifts in distribution models reported in the press over the
last half year, we need to embrace and monetise these changes
Over the last year, the group has made further acquisitions of music catalogues. The most significant additions of
music catalogues have been announced on the Plus market news service and are now yielding returns in both the
digital and traditional routes to market. Content will continue to be the driver for the Group's activities together with
delivering an efficient model of monetising our music assets. As predicted by the Group at flotation, meeting the
demands for the emerging digital market is beginning to be centre of the Group’s revenue source. One Media was
founded to capitalise on this market in 2006 demonstrating foresight that the old model of distribution would alter as
time elapsed from the traditional format of CD to the digital file format of the MP3.
Significant changes have been seen in the distribution model for the older formats, highlighted by the collapse of
EUK, THE, Pinnacle, Woolworths and Zavvii. Whilst being disturbing to the industry at large, this also brings greater
opportunities and a new customer base to digital distribution. Digital revenues now represent 51% of the Group’s
turnover, an increase from 21% from the year ending 31 October 2007. Our relationships with the many digital stores
that we supply is growing with over 2,300 albums now listed and generating income on ITunes, Napster, Amazon,
the
Emusic, Verizon Real Networks and Tesco, to name just a few. Our relationship with The Orchard (NASDAQ),
world’s largest digital distributor, goes from strength to strength.
I would like to thank Nigel Smethers and Scott Cohen for their continued support to the company and indeed to all
our subsidiary directors both in the UK and in North America. The UK team has made great progress in all aspects of
the business and has embraced the technical and marketing requirements needed to drive the business forward. In
North America, our directors continue to build relationships with the major players for the longer term growth of the
Group’s activities.
Review of Activities
Since our last year end report we have increased the head count of the Group to meet the administrative demands
and internal marketing activities required to increase communication with our B2B customers. We now have six full
time members of staff operating out of Pinewood Studios supporting both UK and North American activities. We
maintain a relentless watch on ‘overheads’ whilst investing for growth in both people and technology. Our ‘ingestion
team’, headed by Philip Miles, has to a great extent written our software themselves thus avoiding costly third party
involvement. We have also suspended our outsourced financial PR as share trading markets appear to be less
receptive during this time of economic unrest.
page 1
One Media Publishing Group PLC
Directors' Report
For the year ended 31 October 2008
The directors have pleasure in presenting their report and financial statements for the year ended 31 October 2008.
Principal activities
The principal activities of the Group throughout the year were the acquisition and licensing of audio-visual intellectual
copyrights and publishing for distribution through the new emerging digital downloading medium and through
traditional media outlets. The group is a B2B content supplier to the major downloading music retailers, a traditional
music licensor to the record industry and a supplier of music to the film and TV industries. The group continues to
believe that the creation of it's own dedicated consumer website is not yet of interest as that is the primary activity of
its major customers. The group outsources digital content through The Orchard its strategic partner for downloading
services.
Business review and future developments
A detailed review of the business in the year and future developments is given in the Chairman's statement on pages
1 and 2.
Whilst the group focuses on downloading the traditional routes to market are not being ignored. But with the ever
changing retail scene being accelerated by the much publicised national and global economic problems there is risk
as well as great potential.
The risk of piracy and abuse to copyright are ever present in the music industry. Piracy of music is more prevalent in
the pop/chart sectors but with the groups music aimed primarily at a different buying market the risks are less. The
last year has seen significant changes in the market for trading music catalogues, making valuations more difficult
and increasingly subjective, and with the "credit crunch" restricting the ability to raise additional funds for
development capital growth through catalogue acquisition may be restricted. The traditional risk associated with
customer insolvency, and inability or unwillingness to pay debts continues to be a threat which the group constantly
monitors. This has not however prevented the results for the year being adversely affected by bad debts as reported
elsewhere.
The group has continued to enter into representative deals with independent record labels and content owners to
market their rights in the digital arena and to invest in copyrights and intellectual property that are considered to
attract a suitable and sustainable rate of return.
The key performance indicators the directors use to monitor the perfomance of the group include :
Costs and number of tracks "ingested".
Growth in the customer base and margins achieved on sales activity.
Overhead to turnover growth.
Value and volume of "downloads".
Share price movements and changes in shareholders are constatntly monitored as a major contributor to long term
planning.
Directors' liabilty insurance
The Group provides professional indemnity insurance for directors and key staff.
Results and dividend
A loss of £89,350 is reported (2007: £27,364) after providing £59,300 for bad debts (2007: £21,000).
The directors do not recommend the payment of a dividend.
page 3
One Media Publishing Group PLC
Directors' Report (continued)
For the year ended 31 October 2008
Directors
The following directors held office during the year :
Michael Anthony Infante JP
Scott Cohen
Nigel Smethers (appointed 8 July 2008)
Paul John Evans (resigned 3 March 2009)
Keith Springall (resigned 8 July 2008)
Directors and their interests
The directors' interests (including family interests) in the shares of the company were as follows :
At 31 October 2008
Nos
500,000
17,966,737
-
-
-
Ordinary share of 0.5p each
At 31 October 2007
Nos
500,000
15,800,000
500,000
-
-
Warrants in Ordinary shares of 0.5p each
At 31 October 2008
at 2p each
Nos
500,000
4,000,000
500,000
-
-
at 1p each
Nos
8,000,000
At 31 October 2007
at 2p each
Nos
500,000
4,000,000
500,000
-
-
at 1p each
Nos
8,000,000
Paul John Evans
Michael Anthony Infante JP
Keith Springall
Nigel Smethers
Scott Cohen
Paul John Evans
Michael Anthony Infante JP
Keith Springall
Nigel Smethers
Scott Cohen
Michael Anthony Infante JP
The warrants expire on 25 September 2009.
Post balance sheet events
A number of music catalogue acquisitions have been made since the year end. The principal changes are detailed in
note 24.
page 4
Independent Auditors' Report
to the Shareholders of One Media Publishing Group PLC
We have audited the group and parent company financial statements of One Media Publishing Group PLC for the
year ended 31 October 2008 which comprise the Consolidated Profit and Loss Account, the Consolidated Balance
Sheet, the Company Balance Sheet, the Consolidated Cash Flow Statement and related notes. These financial
statements have been prepared under the historical cost convention and the accounting policies set out therein.
This report is made solely to the group's members, as a body, in accordance with section 235 of the Companies Act
1985. Our audit work has been undertaken for no purpose other than to draw to the attention of the group's members
those matters which we are required to include in an auditors' report addressed to them. To the fullest extent
permitted by law, we do not accept or assume responsibility to any party other than the group and the group's
members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of the directors and auditors
The directors' responsibilities for preparing the Annual Report and the financial statements in accordance with
applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)
are set out in the Statement of Directors' Responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements
and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and are properly
prepared in accordance with the Companies Act 1985. We also report to you whether in our opinion the information
given in the Directors' Report and the Chairman's Statement is consistent with the financial statements.
In addition we report to you, if, in our opinion, the company has not kept proper accounting records, if we have not
received all the information and explanations we require for our audit, or if information specified by law regarding
directors' remuneration and other transactions is not disclosed.
We read the other information contained in the Annual Report and consider whether it is consistent with the audited
financial statements. This information comprises only the Directors' Report and the Chairman's statement. We
consider
if we become aware of any apparent misstatements or material
inconsistencies with the financial statements. Our responsibilities do not extend to any other information.
the implications for our
report
page 6
One Media Publishing Group PLC
Consolidated Profit and Loss account
For the year ended 31 October 2008
Note
Year ended
31 October 2008
£
Year ended
31 October 2007
£
Turnover - continuing activities
Cost of sales
Gross profit
Administration expenses
Operating (loss)
Interest payable
Interest receivable
(Loss) on ordinary activities before taxation
Taxation
(Loss) for the year
Basic and fully diluted (loss) per share
2
3
4
4
5
18
8
615,677
(274,732)
340,945
(439,041)
(98,096)
(660)
9,406
(89,350)
-
(89,350)
(0.10)p
412,507
(127,267)
285,240
(323,208)
(37,968)
(2,519)
13,123
(27,364)
-
(27,364)
(0.03)p
The profit and loss account has been prepared on the basis that all operations are continuing activities.
There are no recognised gains or losses other than the loss for the financial year.
The total figures for continuing activities for the year ended 31October 2007 included the following amounts in
relation to acquisitions :
Turnover £124,591: Cost of sales of £13,106; Administrative expenses £53,478: and interest receivable £83.
page 8
One Media Publishing Group PLC
Consolidated Cash Flow Statement
For the year ended 31 October 2008
Note
Year ended
31 October 2008
£
£
Year ended
31 October 2007
£
£
Net cash outflow from operating activities
1
(66,027)
(71,808)
Return on investments and servicing of
finance
Interest received
Interest paid
Capital expenditure and financial
investments
Investments in licenses
Investment in fixed assets
Sale of motor vehicle
Acquisition
3
Acquisition of subsidiary
Cash acquired with subsidiary
Financing
Issue of ordinary shares
(Decrease) in cash
Cash at the beginning of the year
Cash at the end of the year
9,406
(660)
13,123
(2,519)
8,746
10,604
(150,596)
(15,092)
-
(11,270)
-
(114,838)
(7,103)
3,000
(165,688)
(118,941)
(366,552)
1,800
(11,270)
(364,752)
-
(234,239)
408,812
174,573
344,760
(200,137)
608,949
408,812
page 11
One Media Publishing Group PLC
Note to the Consolidated Cash Flow Statement
For the year ended 31 October 2008
1
Reconciliation of operating loss to net
cash outflow from operating activities
Operating (loss)
Depreciation and amortisation
Loss on sale of motor vehicle
(Increase) in debtors
Increase in creditors
Net cash outflow from operating activities
2
Analysis of net debt
Net cash :
Cash at bank and in hand
Debt :
Hire purchase liabilities
Year ended
31 October 2008
£
Year ended
31 October 2007
£
(98,096)
62,965
-
(101,467)
70,571
(66,027)
(37,968)
37,368
1,025
(83,252)
11,019
(71,808)
At
Other
At
31 October
2007 Cash flows
£
£
non-cash
changes
£
31 October
2008
£
408,812
(234,239)
-
174,573
Debt falling due within one year
-
1,239
(9,958)
(8,719)
Net Debt
408,812
(233,000)
(9,958)
165,854
3
Reconciliation of net cash flow to movement in debt
Decrease in cash in year
Cash inflow from increase in hire purchase
New hire purchase facility
Movement in net debt in year
Opening net debt
Closing net debt
4
Acquisition of subsidiary
Year ended
31 October 2008
£
(234,239)
1,239
(233,000)
(9,958)
(242,958)
408,812
165,854
During the year a further £11,270 was spent in finalising the acquisition of the subsidiary acquired in the
year ended 31 October 2007. There were no adjustments to the net assets acquired as a result of this
further expenditure.
page 12
One Media Publishing Group PLC
Notes to the Consolidated Financial Statements
For the year ended 31 October 2008
1
Accounting policies
Accounting basis and standards
The financial statements have been prepared under the historical cost convention and in accordance
with applicable accounting standards.
Basis of consolidation
The consolidated accounts incorporate the accounts of the company and all of its subsidiary
undertakings. Where subsidiaries are acquired or sold during the year the group profit and loss account
includes the results for the part of the year for which they were subsidiaries. The company has taken
advantage of section 230 of the Companies Act 1985 and consequently the profit and loss account of the
parent company is not presented as part of these accounts. All subsidiaries are consolidated using the
acquisition method.
Turnover
Turnover represents the value of goods and digital income generated in the accounting period and is
recognised either when goods are delivered and title passed or, in the case of digital income, when
reported to the company. Turnover excludes VAT. Estimates of revenue are based on the extent the
group has performed its contractual obligations.
Goodwill
Goodwill is determined by comparing the amount paid on the acquisition of a business and the
aggregate fair value of its separable net assets, and is written off over its economic life estimated at 20
years.
Licences
Licences are valued at cost less accumulated amortisation. Amortisation is calculated to write off the
cost in equal amounts over the life of the licences (between 26 months and 20 years).
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes an estimate of
expense incurred in developing software systems with an ongoing value to the group. Depreciation is
provided at rates calculated to write off the cost less estimated residual value of each asset over its
expected useful life, as follows :
Furniture and fixtures
Office equipment
33.33% straight line
33.33% straight line
Investment in subsidiary
Investment in subsidiary undertakings is shown at cost, less any provision for impairment.
page 13
One Media Publishing Group PLC
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 October 2008
1
Accounting policies (continued)
Deferred taxation
Deferred taxation is provided for on a full provision basis on all timing differences which have arisen but
not reversed at the balance sheet date. No timing differences are recognised in respect of (i) property
revaluation surpluses where there is no commitment to sell the asset; (ii) gains on sale of assets where
those assets have been rolled over into replacement assets; and (iii) additional tax which would arise if
profits of overseas subsidiaries are distributed except where otherwise required by accounting standards.
A deferred tax asset is not recognised to the extent that the transfer of economic benefit in future is
uncertain. Any assets and liabilities recognised have not been discounted.
Foreign currency
Transactions in foreign currency are recorded at the rate of exchange on the date the transaction occurs.
Monetary assets and liabilities denominated in foreign currency are reported at the rate of exchange
ruling on the balance sheet date.
Hire purchase
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at
their fair value. The capital element of the future payments is treated as a liability and the interest is
charged to the profit and loss account at a constant rate of charge on the capital repayments
outstanding.
Leases
Rentals payable under operating leases are charged against revenue on a straight line basis over the
lease term.
page 14
One Media Publishing Group PLC
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 October 2008
2
Turnover
Turnover is the amount attributable to the group's principal activity undertaken in the United Kingdom.
The geographic split of group sales is as follows :
United Kingdom
North America and Canada
Europe
Other
3
Operating loss
Operating loss is stated after charging :
Directors' remuneration
Amortisation of goodwill
Amortisation of licences
Depreciation of fixed assets
Operating lease - office rent
Auditors' remuneration - audit fees
Auditors' remuneration - taxation
Bad debts
4
Interest receivable and payable
Bank interest payable
Interest payable to a related party
Year ended
31 October 2008
£
Year ended
31 October 2007
£
131,173
332,063
144,764
7,677
615,677
151,744
106,983
144,238
9,542
412,507
Year ended
31 October 2008
£
Year ended
31 October 2007
£
72,187
23,385
31,734
7,846
22,498
15,000
3,000
59,300
42,565
17,009
17,902
2,457
15,475
15,375
1,500
21,000
Year ended
31 October 2008
£
Year ended
31 October 2007
£
660
-
660
488
2,031
2,519
Bank interest received
9,406
13,123
page 15
One Media Publishing Group PLC
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 October 2008
5
Taxation
Analysis of charge for the year
Current tax
UK corporation tax at 28% (2007: 30%)
Year ended
31 October 2008
£
Year ended
31 October 2007
£
-
-
The standard rate of tax for the year, based on the UK standard rate of corporation tax is 28% (2007:
30%). The actual tax charge for the current year is less than the standard rate for the reasons set out in
the following reconciliation :
Reconciliation of current tax charge
Year ended
31 October 2008
£
Year ended
31 October 2007
£
(Loss) on ordinary activities before tax
(89,350)
(27,364)
Tax on loss on ordinary activities at 28%
(2007: 30%)
Effects of unrelieved tax losses
(25,018)
25,018
-
(8,209)
8,209
-
The group has estimated losses of £167,700 (2007 £85,800) available for carry forward against future
trading profits.
No deferred taxation asset has been provided in respect of the losses carried forward as their future
recoverability is not certain.
6
Employee information
Staff costs, including directors' remuneration,
were as follows :
Year ended
31 October 2008
Year ended
31 October 2007
£
£
Directors' emoluments
Fees paid to directors
Wages and salaries
Social security costs
42,780
29,407
157,206
12,656
242,049
19,296
23,269
80,000
7,899
130,464
page 16
One Media Publishing Group PLC
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 October 2008
6
Employee information (continued)
The average monthly number of group employees (including executive and non-executive directors)
during the year was as follows :
Year ended
31 October 2008
Year ended
31 October 2007
Office and management
8
4
7
Parent company profit and loss account
The loss for the year to 31 October 2008 dealt within in the financial statements of the parent company
was £133,411 (2007: £105,602). As permitted by section 230 of the Companies Act 1985, no separate
profit and loss account is prepared for the parent company.
8
Loss per share
The calculation of the loss per share is based on the loss for the financial period of £89,350 (2007 :
£27,364) divided by the weighted average number of shares in issue 91,371,339 (2007 : 78,678,114).
The diluted loss per share is identical to that used for the basic loss per share as the exercise of options
would have the effect of reducing the loss per share and therefore is not dilutive under Financial
Reporting Standard 22 "Earnings per share".
9
Intangible assets - group
Cost
At 1 November 2007
Additions
At 31 October 2008
Amortisation
At 1 November 2007
Charge for the year
At 31 October 2008
Net book value
At 31 October 2008
At 1 November 2007
Goodwill Licences
£
£
Total
£
435,394
11,270
189,787
150,596
625,181
161,866
446,664
340,383
787,047
17,205
23,385
22,637
31,734
39,842
55,119
40,590
54,371
94,961
406,074
286,012
692,086
418,189
167,150
585,339
page 17
One Media Publishing Group PLC
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 October 2008
10
Tangible assets - group
Cost
At 1 November 2007
Additions
At 31 October 2008
Depreciation
At 1 November 2007
Charge for the year
At 31 October 2008
Net book value
At 31 October 2008
At 1 November 2007
Office
equipment
£
Furniture
and fittings
£
Total
£
10,683
22,123
3,546
1,688
14,229
23,811
32,806
5,234
38,040
1,624
6,384
1,446
1,462
3,070
7,846
8,008
2,908
10,916
24,798
2,326
27,124
9,059
2,100
11,159
Hire purchase agreements
Included within the net book value of £27,124 is £8,576 (2007: £nil) relating to assets held under hire
purchase agreements. The depreciation charged in the year in respect of assets held under hire
purchase agreements amounted to £1,383 (2007: £nil).
11
Investment in subsidiaries
Cost
At 1 November 2007
Additions
At 31 October 2008
Company
Total
£
482,547
11,270
493,817
Country of registration or
incorporation
Class
Shares held
%
One Media Publishing Limited
England and Wales
Collecting Records LLP
One Media Publishing Inc.
England and Wales
Canada
Ordinary
Ordinary
100%
100%
100%
The company's investment at the balance sheet date is 100% of the share capital of the unlisted
company One Media Publishing Limited, the unlisted company One Media Publishing Inc. and the
Limited Liability Partnership Collecting Records LLP.
page 18
One Media Publishing Group PLC
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 October 2008
12
Debtors
Group
2008
2007
Group
Company
2008
Company
2007
£
£
£
£
Amounts : owed by group undertakings
Trade debtors
Other debtors
Prepayments
-
160,257
107,519
11,145
-
48,461
116,550
12,443
186,910
-
16,666
-
168,948
-
11,845
-
278,921
177,454
203,576
180,793
13
Creditors : amounts falling due
within one year
Amounts : owed to group undertakings
Trade creditors
Social security and other taxes
Accruals
Other creditors
Lease and hire purchase
14
Creditors : amounts falling due
greater than one year
Lease and hire purchase
Group
Group
2008
2007
Company
2008
Company
2007
£
£
£
£
-
55,819
10,736
18,708
104,569
4,027
-
20,457
8,407
59,096
31,301
-
-
16,550
-
9,618
-
-
9,214
6,446
-
14,611
15,995
-
193,859
119,261
26,168
46,266
Group
Group
2008
2007
Company
2008
Company
2007
£
£
£
£
4,692
4,692
-
-
-
-
-
-
15
Commitments under hire purchase agreements
Future commitments under hire purchase agreements are as follows :
Amounts payable within 1 year
Amounts payable between 1 and 2 years
Amounts payable between 3 and 5 years
Group
2008
4,027
4,027
665
8,719
2007
£
-
-
-
-
Group
Company
2008
Company
2007
£
-
-
-
-
-
-
-
-
page 19
One Media Publishing Group PLC
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 October 2008
16
Financial instruments
The group's financial instruments comprise some cash and liquid resources and various items, such as
trade debtors, trade creditors etc. which directly arise from its operations. The main purpose of these
financial instruments is to provide finance for its operations. Trade and other short term debtors and
creditors are not discussed further in this note.
The main risks arising from the group's financial instruments are interest rate risk, liquidity risk and
foreign exchange risk. The policies for managing each of these risks, adopted during the period of the
report, are summarised below. These policies have remained unchanged throughout the period covered
by the report.
Interest rate risk
The group finances its operations through the cash derived from its issue of equity shares. It did not
enter into any interest rate derivatives transactions to manage interest rate risk.
Liquidity risk
As regards liquidity, the group's policy has been to retain cash surpluses not required for day to day
operations in interest bearing deposit accounts.
Foreign currency risk
The group operates in the UK but receives substantial portions of its income in foreign currency. Material
exchange rate risks in such sales contracts will be covered as appropriate. The group had no forward
currency contracts in the period.
Interest rate risk profile of financial assets and financial liabilities :
Financial assets
The group had no financial assets, excluding short term debtors, other than cash deposits, which are
held as part of the group's financial arrangements. Cash deposits are held in short term or overnight
deposit accounts.
Maturity of financial liabilities
The maturity profile of the group's financial liabilities at 31 October 2008 was as follows:
In one year or less on demand
Greater than one year
2008
£
193,859
4,692
198,551
2007
£
119,261
-
119,261
page 20
One Media Publishing Group PLC
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 October 2008
17
Share capital
Group and company
Authorised :
2008
£
2007
£
200,000,000 ordinary shares of 0.5p each
1,000,000
1,000,000
Issued :
91,371,399 (2007 : 91,371,339) ordinary
shares of 0.5p each
456,857
456,857
At 31 October 2008 the following warrants were outstanding :
Year of grant
2006
2006
Period of subscription
3 years
3 years
Nos of
shares
10,000,000
6,000,000
16,000,000
Price per
share
1p
2p
No warrants were exercised during the period.
18
Reserves
Group
Balance at 1 November 2007
Retained (loss) for the year
Share
premium
account
£
Profit and
loss
account
£
Total
£
663,000
-
(56,354)
(89,350)
606,646
(89,350)
Balance at 31 October 2008
663,000
(145,704)
517,296
page 21
One Media Publishing Group PLC
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 October 2008
19
Reserves
Company
Balance at 1 November 2007
Retained (loss) for the year
Share
premium
account
£
Profit and
loss
account
£
Total
£
663,000
-
(129,288)
(133,411)
533,712
(133,411)
Balance at 31 October 2008
663,000
(262,699)
400,301
20
Reconciliation of movements in
shareholders' funds
Group
£
Company
£
(Loss) for the year
Opening shareholders' funds
21
Pension scheme
(89,350)
1,063,503
974,153
(133,411)
990,569
857,158
The group does not operate or contribute into any pension schemes from the assets of the company.
22
Financial commitments
At 31 October 2008 the group was committed to making the following payments under non-cancellable
operating leases in the year to 31 October 2009 :
Operating leases which expire :
2008
£
Group
Company
2008
£
Land and buildings
Group
2007
£
Company
2007
£
Within one year
Within two to five years
22,070
-
-
-
13,700
-
-
-
page 22
One Media Publishing Group PLC
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 October 2008
23
Related party transactions
The company has taken advantage of the exemption in FRS8 Related Party transactions in respect of
disclosure of transactions with group companies.
24
Post balance sheet events
On 4 February 2009 the group announced the signing of three new digital music catalogues with various
owners. All the tracks will be distributed by the group's digital partner The Orchard.
(i)
For an initial term of ten years, the group has acquired the rights on a royalty sharing basis for the
exclusive worldwide digital distribution of over 1,200 hours of classical music tracks. Known as the Red
Note catalogue, it includes some of the world’s best known classics by various composers, including
the 100 composers
Tchaikovsky, Beethoven, Schubert and Mendelssohn to name just
included in the deal.
four out of
(ii)
In a separate and contrasting deal and for an initial consideration of £10,000, plus an onward royalty, the
group has acquired the license rights for over 60 live music tracks performed by: The Sex Pistols, Lou
Reed, Paul Weller, T.REX, Iggy Pop and other New Wave music from the 1970’s.
(iii)
Finally, for an initial consideration of £6,000 plus an onward royalty, the group has acquired a further
1,000 tracks of World Music, Folk Songs and Show Musicals.
On 24th February 2009 the group announced a further significant licensing deal with EMI Music
Publishing Ltd.
For an initial term of one year, automatically renewing thereinafter, One Media has made available to
EMI its catalogue of rights that are both published by EMI and others. Over 15% of the master rights
owned or controlled by One Media are published by EMI. These tracks, plus thousands of others not
published by EMI will be marketed via EMI’s network of offices worldwide. The deal, which is based on a
royalty sharing basis will offer greater visibility to One Media’s audio library to the many ‘music
synchronization buyers’ that regularly license music for film, TV, and advertising purposes via the EMI
model.
page 23