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Tuesday 25 September, 2007

Ind. Media Support

Interim Results

Independent Media Support Group PLC
25 September 2007


FOR IMMEDIATE RELEASE
                                                               25 SEPTEMBER 2007


                      INDEPENDENT MEDIA SUPPORT GROUP PLC
                            ('IMS' or the 'Company')

              INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2007

                                GROUP HIGHLIGHTS

IMS today announces its interim results for the 6 months to 30 June 2007.

Financial Results

Turnover       £2,794,000 2006: £3,014,000

Pre Tax Profit £86,000    2006: £292,000

Operational Highlights

Subtitling volumes up, mitigating against reduced prices;

Number of television channels mandated to provide media access services to be
reduced in 2008;

Continued strong performance in Welsh-English translation.


Chairman Sylvia Sheridan said:


'It is encouraging that IMS has returned a modest profit in the first half of
the year. IMS has continued to demonstrate that it can service the increasing
demands of major UK and international broadcasters for high volumes of media
access and localisation services.'


Contacts:

IMS                                         Tel: 020 7440 5400
Sylvia Sheridan, Executive Chairman
Mark Robinson, Managing Director

Beaumont Cornish Limited                    Tel: 020 7628 3396
Michael Cornish


INDEPENDENT MEDIA SUPPORT GROUP PLC

CHAIRMAN'S STATEMENT
INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2007

SUMMARY OF RESULTS
                           Six Months to      Six Months to         Year to 31
                            30 June 2007       30 June 2006      December 2006
                                   £'000              £'000              £'000

Turnover                           2,794              3,014              5,403
Profit/(loss) before Tax              86                292             (1,267)
Profit/(loss) after Tax               67                212             (1,258)

Earnings per Share (pence)
Basic                               0.26               0.81              (4.82)
Diluted                             0.25               0.79              (4.72)



FINANCE AND CASH FLOW


As I highlighted in the 2006 Annual Report, the Group's trading in first half of
2007 has been encouraging. Turnover has increased by 7% over the second half of
2006 and, after a loss of £419,000 in the same period (excluding goodwill
impairment), there has been a return to modest profitability.


The losses in the second half of 2006 also impacted on the Group's cash flow.
However, I am pleased to note that this first half return to profitability has
similarly improved the Group's cash position.


The adoption of IFRS for the first time has resulted in one major variation from
the previous GAAP requirements in that goodwill is no longer written off on a
straight-line basis but is subject to impairment review. Having written down the
Group's goodwill at the end of 2006, the Board is of the opinion that no further
impairment is required at this stage. Under UK GAAP the amortisation charge
would have been £119,000 for the first six months.


OPERATING REPORT AND CURRENT TRADING


With new contract terms coming into effect with a major customer in the second
half of 2006, profitability was always going to be dependent on higher volumes
of subtitling, which, within media access services, is the major income stream
for the Group, offsetting the reduction in prices. The volume of subtitles
produced by IMS in the first six months of the year increased by 75% over the
same period in 2006 and, at least in the medium term, it is envisaged that
growth will continue under Ofcom mandated targets. However, shareholders should
be aware that the total number of channels required to provide television access
services in 2008 has shrunk under Ofcom's dual criteria of audience share and
affordability and this trend, if continued, may have some impact on the Group's
results in future years.


At the time of the 2006 Annual Report, I also highlighted IMS's work for another
major international broadcaster in handling localisation for its channel
launches across Europe and I am delighted that this work continues.


I am also pleased to note that the Group's subsidiary, Trosol, a market leader
in Welsh-English translation with a strong customer base consisting primarily of
government agencies, continues to perform well.


SYLVIA SHERIDAN O.B.E.
Chairman
25 September 2007


INDEPENDENT MEDIA SUPPORT GROUP PLC

CONSOLIDATED INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2007

                                  Six months to   Six months to      Year to 31
                                   30 June 2007    30 June 2006   December 2006
                          Note            £'000           £'000           £'000

Revenue                                   2,794           3,014           5,403

Cost of sales                            (1,747)         (1,590)         (3,336)
                                  -------------   -------------   -------------

GROSS PROFIT                              1,047           1,424           2,067

Administrative expenses                    (961)         (1,122)         (3,319)
                                  -------------   -------------   -------------
OPERATING PROFIT/(LOSS)                      86             302          (1,252)

Finance income                                9              13              24
Finance costs                                (9)            (23)            (39)
                                  -------------   -------------   -------------
PROFIT/(LOSS) BEFORE TAX                     86             292          (1,267)

Tax (charge)/credit                         (19)            (80)              9
                                  -------------   -------------   -------------

PROFIT/(LOSS) ATTRIBUTABLE
TO EQUITY HOLDERS OF THE
PARENT COMPANY FOR THE                       
PERIOD                                       67             212          (1,258)
                                  =============   =============   =============

EARNINGS/(LOSS) PER SHARE

BASIC                         3           0.26p           0.81p          (4.82)p
                                  =============   =============   =============

DILUTED                       3           0.25p           0.79p          (4.72)p
                                  =============   =============   =============


All of the activities of the group are classed as continuing.


INDEPENDENT MEDIA SUPPORT GROUP PLC

CONSOLIDATED BALANCE SHEET (UNAUDITED)
AS AT 30 JUNE 2007

                                           At 30 June      At 30 June           At 31
                                                 2007            2006   December 2006
                                                £'000           £'000           £'000
-----------------------------------        ----------      ----------      ----------
ASSETS
Non-current assets
Property, plant and equipment                     407             525             449
Goodwill                                        3,000           4,258           3,000
                                        -------------   -------------    ------------
                                                3,407           4,783           3,449
                                        -------------   -------------    ------------

Current assets
Trade and other receivables                     1,386           1,546           1,525
Cash and cash equivalents                         389             825             275
                                        -------------   -------------    ------------
                                                1,775           2,371           1,800
                                        -------------   -------------    ------------
Total assets                                    5,182           7,154           5,249
                                        =============   =============   =============

EQUITY
Capital and reserves attributable to
equity holders of the parent company    
Called up share capital                           652             652             652
Share premium account                           4,741           4,741           4,741
Other reserve                                      60              87              66
Retained earnings                              (1,272)            131          (1,339)
                                        -------------   -------------    ------------
Total equity                                    4,181           5,611           4,120
                                        -------------   -------------    ------------
LIABILITIES
Non-current liabilities
Long-term borrowings                                -             250               -
Deferred tax liabilities                            3              16               4
                                        -------------   -------------    ------------
                                                    3             266               4
                                        -------------   -------------    ------------
Current liabilities
Trade and other payables                          717             886             863
Current portion of long-term
borrowings                                        250             250             250
Current tax liabilities                            31             141              12
                                        -------------   -------------    ------------
                                                  998           1,277           1,125
                                        -------------   -------------    ------------
Total liabilities                               1,001           1,543           1,129
                                        -------------   -------------    ------------
Total equity and liabilities                    5,182           7,154           5,249
                                        =============   =============   =============


INDEPENDENT MEDIA SUPPORT GROUP PLC

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2007

                         Share Capital    Share Premium    Other reserve    Retained Earnings          Total
                                 £'000            £'000            £'000             £'000             £'000
                        --------------   --------------   --------------   ---------------   ---------------
Balance at 1
January 2006                       652            4,741              109               (81)            5,421
Profit for the
period                               -                -                -               212                93
Employee share
option credit                        -                -              (22)                -               (22)
                        --------------   --------------   --------------   ---------------   ---------------
Balance at 30
June 2006                          652            4,741               87               131             5,611
Loss for the
period                               -                -                -            (1,470)           (1,470)
Employee share
option credit                        -                -              (21)                -               (21)
                        --------------   --------------   --------------   ---------------   ---------------
Balance at 31
December 2006                      652            4,741               66            (1,339)            4,120
Profit for the
period                               -                -                -                67                67
Employee share
option credit                        -                -               (6)                -                (6)
                        --------------   --------------   --------------   ---------------   ---------------
Balance at 30
June 2007                          652            4,741               60            (1,272)            4,181
                        ==============   ==============   ==============   ===============   ===============


INDEPENDENT MEDIA SUPPORT GROUP PLC

CONSOLIDATED INTERIM CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2007

                              Six months to    Six months to         Year to 31
                               30 June 2007     30 June 2006      December 2006
                                      £'000            £'000              £'000
---------------------------      ----------       ----------         ----------
Cash flows from operating
activities                       
Profit/(loss) for the
period                                   67              212             (1,258)
Adjustments for:
Tax charge/(credit)                      19               80                 (9)
Finance income                           (9)             (13)               (24)
Finance cost                              9               23                 39
Depreciation and
amortisation                             74               91              1,435
Provisions                                              (166)              (165)
Share option credit                      (6)             (22)               (43)
Decrease/(increase) in
trade and other
receivables                             139              (66)               (45)
(Decrease)/increase in
trade and other payables               (163)              17                 (6)
                             --------------   --------------    ---------------
Cash generated from/(used
in) operations                          130              156                (76)
Tax paid                                  -                -                (53)
                             --------------   --------------    ---------------
Net cash from/(used in)
operating activities                    130              156               (129)
                             --------------   --------------    ---------------
Cash flows from investing
activities                     
Purchases of property,
plant and equipment                     (33)             (41)               (51)
Interest received                         9               13                 24
                             --------------   --------------    ---------------
Net cash used in investing
activities                              (24)             (28)               (27)
                             --------------   --------------    ---------------
Cash flows from financing
activities                      
Interest paid                            (9)             (23)               (39)
Capital element of finance
leases paid                             (13)               -                  -
Capital element of finance
leases received                          30                -                  -
Long-term loans repaid                    -                -               (250)
                             --------------   --------------    ---------------
Net cash from/(used in)
financing activities                      8              (23)              (289)
                             --------------   --------------    ---------------
Net increase/(decrease) in
cash and bank overdrafts                114              105               (445)
Cash and bank overdrafts
at beginning of period                  275              720                720
                             --------------   --------------    ---------------
Cash and cash equivalents               389              825                275
                             ==============   ==============    ===============


INDEPENDENT MEDIA SUPPORT GROUP PLC

NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2007



   1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)    Basis of preparation

       The Group's consolidated financial statements for the year ending 31
       December 2007 will be the first results to be prepared on the basis of
       all International Accounting Standards, International Financial Reporting
       Standards and International Financial Reporting Interpretations Committee
       interpretations issued by the International Accounting Standards Board
       adopted for use in the EU (called 'IFRS' in this document).

       These interim results for the six months ended 30 June 2007 have been
       prepared using the historical cost and fair value conventions on the
       basis of the accounting policies set out below, which the Company expects
       to apply to its financial statements for year ending 31 December 2007
       which are to be prepared in accordance with IFRS.

       Independent Media Support Group Plc's consolidated financial statements
       were prepared in accordance with UK Generally Accepted Accounting
       Principles (UK GAAP) until 31 December 2006. UK GAAP differs in some
       areas from IFRS. In preparing the interim results, management has amended
       certain accounting methods applied in the UK GAAP financial statements to
       comply with IFRS. The comparative figures in respect of 2006 were
       restated to reflect these adjustments.

       Reconciliations and descriptions of the effect of the transition from UK
       GAAP to IFRS on the Group's equity and its net income and cash flows are
       provided in Note 5.

       These interim results have been prepared under the historical cost
       convention. Areas where other bases are applied are identified in the
       accounting policies below.

       The financial information set out in this interim report does not
       constitute statutory accounts as defined in Section 240 of the Companies
       Act 1985. The Group's statutory financial statements for the year ended
       31 December 2006, prepared under UK GAAP, have been filed with the
       Registrar of Companies. The auditor's report on those financial
       statements was unqualified and did not contain a statement under Sections
       237(2) and (3) of the Companies Act 1985.

       The results for the six months ended 30 June 2007 were approved by the
       Board on 25 September 2007.

(b)    Basis of consolidation

       The interim results have been prepared using the purchase method and
       incorporate the results of Independent Media Support Group Plc and
       entities controlled by Independent Media Support Group Plc (its
       subsidiaries). Control is achieved where Independent Media Support Group
       Plc has the power to govern the financial and operating policies of an
       entity so as to obtain benefits from its activities. The results of
       subsidiaries sold or acquired are included in the income statement up to
       or from the date control passes. Intra-group sales, profits and balances
       are eliminated fully on consolidation.

(c)    Goodwill

       Goodwill representing the excess of the cost of acquisition over the fair
       value of the group's share of the identifiable net assets acquired, is
       capitalised and reviewed annually for impairment or whenever there is an
       indication that it may be impaired. Goodwill is carried at cost less
       accumulated impairment losses. Negative goodwill is recognised
       immediately after acquisition in the income statement. Goodwill written
       off to reserves prior to date of transition to IFRS remains in reserves.
       There is no restatement of goodwill that was amortised prior to
       transition to IFRS. Goodwill previously written off to reserves is not
       written back to income on subsequent disposal.

(d)    Segment reporting

       A business segment is a group of assets and operations engaged in
       providing products or services that are subject to risks and returns that
       are different from those of other business segments.

(e)    Revenue recognition

       Revenue comprises the fair value of the sale of goods and services
       delivered by the Group to third parties, net of value-added tax, rebates
       and discounts.

INDEPENDENT MEDIA SUPPORT GROUP PLC

NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2007

   1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(f)    Property, plant and equipment

       Tangible fixed assets are stated at historical cost less accumulated
       depreciation.

       Depreciation is provided to write off the cost of all fixed assets, less
       estimated residual values, evenly over their expected useful lives.
       Depreciation is calculated at the following annual rates:

       Leasehold property and improvements      Over the life of the lease
       Computer equipment                       25% straight line
       Other equipment                          10 - 15% straight line
       Furniture and fixtures                   10 - 15% straight line

(g)    Foreign currencies

       Transactions in foreign currencies are translated into sterling at the
       exchange rate ruling at the date of the transaction. Monetary assets and
       liabilities in foreign currencies are translated at the exchange rates
       ruling at the balance sheet date. All exchange differences are dealt with
       through the income statement.

(h)    Borrowings

       Interest-bearing bank loans and overdrafts are initially recorded as the
       proceeds received, net of direct issue costs. Direct issue costs are
       amortised over the period of the loans and overdrafts to which they
       relate.

(i)    Taxation

       Taxation expense represents the sum of the current tax payable and
       deferred tax.

       Current tax expense is recognised in these interim results based on
       management's best estimates of the tax rate expected for the full
       financial year.

       Deferred tax is provided in full, using the balance sheet liability
       method, on temporary differences arising between the tax bases of assets
       and liabilities and their carrying amounts in the balance sheet. The
       deferred tax is not accounted for if it arises from initial recognition
       of an asset or liability in a transaction, other than a business
       combination, that at the time of the transaction affects neither
       accounting nor taxable income or cost. Deferred tax is determined using
       tax rates (and laws) that have been enacted or substantially enacted by
       the balance sheet date and are expected to apply when the related
       deferred tax asset is realised or the deferred tax liability is settled.
       Deferred tax assets are recognised to the extent that it is probable that
       future taxable profit will be available against which the temporary
       differences can be utilised.

(j)    Operating leases

       Rentals applicable to operating leases where substantially all of the
       benefits and risks of ownership remain with the lessor are charged to the
       income statement on a straight-line basis over the term of the lease.

(k)    Pensions

       The Group, via its subsidiaries, operates defined contribution personal
       pension schemes for staff. The assets of the schemes are held separately
       from those of the Group in independently administered funds. The pension
       charge represents contributions payable by the Group during the year.

(l)    Employee share options

       The Group issues equity settled share-based payments to certain
       employees. A fair value for the equity settled share awards is measured
       at the date of grant. The fair value is measured using the Binomial model
       of valuation, which is considered to be the most appropriate valuation
       technique. The valuation takes into account factors such as
       non-transferability, exercise restrictions and behavioural
       considerations. An expense is recognised to spread the fair value of each
       award over the vesting period on a straight-line basis, based on an
       estimate of the share awards that will actually vest. The estimate of
       vesting is reviewed annually, with any impact on the cumulative charge
       being recognised immediately.


INDEPENDENT MEDIA SUPPORT GROUP PLC

NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2007

   2.  BUSINESS SEGMENT ANALYSIS

       The segmental revenue for the six months ended 30 June 2007 is:

                                          Six months   Six months     Year to 31
                                                  to           to       December
                                        30 June 2007 30 June 2006           2006
                                               £'000        £'000          £'000

       Media access services                   2,388        2,632          4,648
       Document translation and                  406          382            755
       interpreting                      
                                          ----------   ----------     ----------
       Total                                   2,794        3,014          5,403
                                          ==========   ==========     ==========

       The company's financial reporting system is not configured to enable it
       to report the result by business segment.

   3.  EARNINGS/(LOSS) PER SHARE    

       The calculation of the (loss)/earnings per share is based on the following (loss)/
       profit and number of shares:

                                  Six months to     Six months to      Year to 31 December
                                   30 June 2007      30 June 2006                     2006

       Earnings/(loss) for the               
       period (£'000)                        67               212                   (1,258)
                                        =======           =======                  =======
       Weighted average number          
       of shares (000s)                  26,087            26,087                   26,087
       Dilutive potential
       ordinary shares:            
       Share options (000s)                 302               732                      544
                                        -------           -------                  -------
       Diluted weighted average          
       number of shares (000s)           26,389            26,819                   26,631
                                        =======           =======                  =======

                                       Six months to     Six months to         Year to 31
                                       30 June 2007      30 June 2006        December 2006
                                      Basic   Diluted    Basic   Diluted    Basic   Diluted

       Earnings/(loss) per share      0.26p     0.25p    0.81p     0.79p   (4.82)p  (4.72)p
                                      ======   ======   ======    ======    ======  ======

   4.  TRANSITION TO IFRS

       The Group's financial statements for the year ending 31 December 2007 will be
       the first annual financial statements that comply with IFRS. These interim
       results have been prepared as described in Note 1. The Group has applied IFRS
       1 in preparing these interim results.

       Independent Media Support Group plc's transition date is 1 January 2006. The
       Group prepared its opening IFRS balance sheet at that date. The reporting
       date of these interim results is 30 June 2007. The Group's IFRS adoption date
       is 1 January 2007.

INDEPENDENT MEDIA SUPPORT GROUP PLC

NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2007

   5.  EXPLANATION OF THE EFFECT OF THE TRANSITION TO IFRS

       The following explains the material adjustments on the transition to IFRS

5(a)   Adjustment to goodwill

       Goodwill is not amortised under IFRS but is measured at cost less
       impairment losses. Under UK GAAP, goodwill was amortised on a
       straight-line basis over the time that the Group was estimated to benefit
       from it. The change does not affect equity at 1 January 2006 because, as
       permitted by IFRS 1, goodwill arising on acquisitions before 1 January
       2006 (date of transition to IFRS) has been frozen at the UK GAAP amounts
       subject to being tested for impairment at that date, the results of which
       assessment indicated no such impairment.

       Within the Group's financial statements for the year ended 31 December
       2006, goodwill was judged by the directors to be impaired as at 31
       December 2006 and, under UK GAAP, a charge was made in addition to the
       normal annual amortisation. The directors consider that the value of the
       Group's goodwill under IFRS is identical to that under UK GAAP as at that
       date.
                                          Six months     Six months       At 31
                                                  to          to 31    December   
                                        30 June 2006  December 2006        2006
                                               £'000        £'000        £'000

       Amortisation of goodwill                  119          118          237
       Impairment of goodwill                      -         (237)        (237)
                                          ----------   ----------   ----------
       Increase/(decrease) in the value          
       of goodwill                               119         (119)           -
                                          ==========   ==========   ==========

5(b)   Adjustments to administrative      Six months   Six months   Year ended
       expenses                                   to        to 31           31
                                             30 June     December     December
                                                2006         2006         2006
                                               £'000        £'000        £'000

       Amortisation of goodwill                  119          118          237
       Impairment of goodwill                      -         (237)        (237)
                                          ----------   ----------   ----------
       Decrease/(increase) in                   
       administrative expenses                   119         (119)           -
                                          ==========   ==========   ==========                                         

5(c)   Adjustments to Retained Earnings
                                                At 1        At 30        At 31
                                             January    June 2006     December
                                                2006                      2006
                                               £'000        £'000        £'000

       Amortisation of goodwill                  119          118          237
       Impairment of goodwill                      -         (237)        (237)
                                          ----------   ----------   ----------
       Increase/(decrease) in retained           
       earnings                                  119         (119)           -
                                          ==========   ==========   ==========                                         


5(d)   Cash flows

       The transition to IFRS has no impact on the Group's reported net cash
       flows other than presentational matters and accordingly no reconciliation
       statement is presented.

5 (e)  Share-based payments

       In the Group's financial statements for the year ended 31 December 2006,
       FRS 20 Share-based payments was adopted for the first time. The
       comparative figures for the six months to 30 June 2006 as included herein
       have been restated to include the effect of such adoption, which is
       identical to the effect of adopting IFRS 2.

INDEPENDENT MEDIA SUPPORT GROUP PLC

NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2007

6(a). RECONCILIATION OF EQUITY AT 1 JANUARY 2006

                            Note        UK GAAP      Adjustments            IFRS
                                          £'000            £'000           £'000
ASSETS
Non-current assets
Property, plant and
equipment                                   575                -             575
Goodwill                  5(a)            4,258                -           4,258
                                  -------------    -------------   -------------
                                          4,833                -           4,833
                                  -------------    -------------   -------------
Current assets
Trade and other                           1,480                -           1,480
receivables               
Cash and cash equivalents                   732                -             732
                                  -------------    -------------   -------------
                                          2,212                -           2,212
                                  -------------    -------------   -------------
Total assets                              7,045                -           7,045
                                  =============    =============   =============

EQUITY
Capital and reserves
attributable to equity   
holders of the parent
company
Called up share capital                     652                -             652
Share premium account                     4,741                -           4,741
Other reserve             5(e)              109                -             109
Retained earnings         5(c)              (81)               -             (81)
                                  -------------    -------------    ------------
Total equity                              5,421                -           5,421
                                  -------------    -------------    ------------
LIABILITIES
Non-current liabilities
Long term borrowings                        250                -             250
Deferred tax liabilities                     17                -              17
                                  -------------    -------------    ------------
                                            267                -             267
                                  -------------    -------------    ------------
Current liabilities
Trade and other payables                    870                -             870
Short-term borrowings                        12                -              12
Current portion of
long-term borrowings                        250                -             250
Current tax liabilities                      60                -              60
Provisions                                  165                -             165
                                  -------------    -------------    ------------
                                          1,357                -           1,357
                                  -------------    -------------    ------------
Total liabilities                         1,624                -           1,624
                                  -------------    -------------    ------------
Total equity and                          
liabilities                               7,045                            7,045
                                  =============    =============   =============

INDEPENDENT MEDIA SUPPORT GROUP PLC

NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2007

6(b). RECONCILIATION OF NET INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2006

                            Note        UK GAAP     Adjustments            IFRS
                                          £'000           £'000           £'000

Revenue                                   3,014               -           3,014
Cost of sales                            (1,590)              -          (1,590)
                                  -------------   -------------   -------------
GROSS PROFIT                              1,424               -           1,424
Administrative expenses 5(b),(e)         (1,241)            119          (1,122)
                                  -------------   -------------   -------------
OPERATING PROFIT                            183             119             302
Finance income                               13               -              13
Finance costs                               (23)              -             (23)
                                  -------------   -------------   -------------
PROFIT BEFORE TAX                           173             119             292
Tax charge                                  (80)              -             (80)
                                  -------------   -------------   -------------
PROFIT ATTRIBUTABLE TO
EQUITY HOLDERS OF THE
PARENT COMPANY FOR THE
PERIOD                                       93             119             212
                                  =============    =============   =============

INDEPENDENT MEDIA SUPPORT GROUP PLC

NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2007

6(c). RECONCILIATION OF EQUITY AT 30 JUNE 2006

                          Note         UK GAAP     Adjustments            IFRS
                                         £'000           £'000           £'000
ASSETS
Non-current assets
Property, plant and
equipment                                  525               -             525
Goodwill                  5(a)           4,139             119           4,258
                                 -------------   -------------   -------------
                                         4,664             119           4,783
                                 -------------   -------------   -------------
Trade and other                          1,546               -           1,546
receivables               
Cash and cash equivalents                  825               -             825
                                 -------------   -------------   -------------
                                         2,371               -           2,371
                                 -------------   -------------   -------------
Total assets                             7,035             119           7,154
                                 =============   =============   =============
EQUITY
Capital and reserves
attributable to equity    
holders of the parent
company
Called up share capital                    652               -             652
Share premium account                    4,741               -           4,741
Other reserve             5(e)              87               -              87
Retained earnings         5(c)              12             119             131
                                 -------------   -------------   -------------
Total equity                             5,492             119           5,611
                                 -------------   -------------   -------------
LIABILITIES
Non-current liabilities
Long term borrowings                       250               -             250
Deferred tax liabilities                    16               -              16
                                 -------------   -------------   -------------
                                           266               -             266
                                 -------------   -------------   -------------
Current liabilities
Trade and other payables                   886               -             886
Current portion of
long-term borrowings                       250               -             250
Current tax liabilities                    141               -             141
                                 -------------   -------------   -------------
                                         1,277               -           1,277
                                 -------------   -------------   -------------
Total liabilities                        1,543               -           1,543
                                 -------------   -------------   -------------
Total equity and
liabilities                              7,035             119           7,154
                                 =============   =============   =============


INDEPENDENT MEDIA SUPPORT GROUP PLC

NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2007

6(d). RECONCILIATION OF NET INCOME FOR THE YEAR ENDED 31 DECEMBER 2006

                           Note         UK GAAP     Adjustments            IFRS
                                          £'000           £'000           £'000

Revenue                                   5,403               -           5,403
Cost of sales                            (3,336)              -          (3,336)
                                  -------------   -------------   -------------
GROSS PROFIT                              2,067               -           2,067
Administrative expenses   5(b)           (3,319)              -          (3,319)
                                  -------------   -------------   -------------
OPERATING LOSS                           (1,252)              -          (1,252)
Finance income                               24               -              24
Finance cost                                (39)              -             (39)
                                  -------------   -------------   -------------
LOSS BEFORE TAX                          (1,267)              -          (1,267)
Tax charge                                    9               -               9
                                  -------------   -------------   -------------
LOSS ATTRIBUTABLE TO
EQUITY
HOLDERS OF THE PARENT                    
COMPANY FOR THE PERIOD                   (1,258)              -          (1,258)
                                 =============   =============   =============

INDEPENDENT MEDIA SUPPORT GROUP PLC

NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2007


6(e). RECONCILIATION OF EQUITY AT 31 DECEMBER 2006

                          Note          UK GAAP     Adjustments            IFRS
                                          £'000           £'000           £'000
ASSETS
Non-current assets
Property, plant and                         449               -             449
equipment               
Goodwill                  5(a)            3,000               -           3,000
                                  -------------   -------------   -------------
                                          3,449               -           3,449
                                  -------------   -------------   -------------
Current assets
Trade and other                           1,525               -           1,525
receivables               
Cash and cash equivalents                   275               -             275
                                   ------------   -------------    ------------
                                          1,800               -           1,800
                                   ------------   -------------    ------------
Total assets                              5,249               -           5,249
                                  =============   =============   =============
EQUITY
Capital and reserves
attributable to equity   
holders of the parent
company
Called up share capital                     652               -             652
Share premium account                     4,741               -           4,741
Other reserve             5(e)               66               -              66
Retained earnings         5(c)           (1,339)              -          (1,339)
                                     ----------   -------------    ------------
Total equity                              4,120               -           4,120
                                   ------------   -------------    ------------
LIABILITIES
Non-current liabilities
Deferred tax liabilities                      4               -               4
                                     ----------   -------------    ------------
                                              4               -               4
                                   ------------   -------------    ------------
Current liabilities
Trade and other payables                    863               -             863
Current portion of
long-term                                   250               -             250
borrowings              
Current tax liabilities                      12               -              12
                                   ------------   -------------    ------------
                                          1,125               -           1,125
                                   ------------   -------------    ------------
Total liabilities                         1,129               -           1,129
                                   ------------   -------------    ------------
Total equity and                         
liabilities                               5,249               -           5,249
                                  =============   =============   =============


7. NOTIFICATION OF RESULTS


Copies of these interim results will be available for download from the Group's
website at www.ims-media.com or, by request, from the registered office at 10
Carlisle Street, London W1D 3BR.




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