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Press Release

30 November 2009

Pilat Media Global PLC

("Pilat Media", the "Group" or the "Company")

Results for the nine months ended 30 September 2009

Pilat Media Global plc (AIM:PGB), the London-based supplier of business management software to the media industry around the world, today announces its results for the nine months ended 30 September 2009 and the three months to 30 September 2009 ("Q3").

Highlights:

●	Revenues:
	●	Q3 - £4.83 million (Q3 2008 £4.0 million), up by 20.75%
	●	Nine month revenues - £13.16 million (Nine month 2008: £12.21 million), up by 7.8%
●	Operating profit/loss, before amortisation and impairment of intangible assets:
	●	Q3 - profit £1,129,262 (Q3 2008: £22,131)
	●	Nine months 2009 - loss £378,652 (Nine months 2008: loss £813,986)
●	Profit / loss after tax:
	●	Q3 - profit £574,438 (Q3 2008: loss £194,069)
	●	Nine months - loss £667,756 (Nine months 2008: loss £781,987)
●	Further channel/station go-lives with key clients
●	First South American contract of £1m initial value signed with Globosat of Brazil.
●	Increased demand from existing clients and improved pipeline of new sales opportunities expected to make a strong Q4

Commenting on the results, Michael Rosenberg, Chairman of Pilat Media Global plc, said:  

"Revenues have grown significantly during Q3 on the back of increased demand from our existing client base. At the same time costs were contained at a lower level enabling us to produce a strong set of results. We are also engaged with a growing number of new sales opportunities and expect the signing of Globosat in Brazil to be followed by additional new contracts elsewhere. Cash flow is looking positive for the foreseeable future. We are therefore confident about our growth prospects."

  For further information:

Pilat Media Global plc
Avi Engel, Chief Executive Officer Martin Blair, Chief Financial Officer	Tel: +44 (0) 20 8782 0700
aengel@pilatmedia.com	www.pilatmedia.com
Shore Capital (Nominated Adviser)
Dru Danford / Stephane Auton	Tel: +44 (0) 20 7408 4090
dru.danford@shorecap.co.uk	www.shorecap.co.uk
Media enquiries:
Abchurch Communications
Heather Salmond / Nick Probert	Tel: +44 (0) 20 7398 7715
nick.probert@abchurch-group.com	www.abchurch-group.com

  Chairman and CEO's Statement

Pilat Media Global plc is pleased to announce its results for the nine months and three months ended 30 September 2009.  

The improved performance in our business continued in Q3 with revenues higher and costs lower than in the equivalent periods last year, thus generating a healthy profit during the quarter. We continued to benefit from increased activity from many of our existing clients with internal budgets being unfrozen and previously delayed projects being reactivated. The increased demand across our installed client base is stimulated by the new IBMS modules and related services now available as we rollout our IBMS V6, with its new .Net front end and other technological and functional improvements. Added to this, we continue to make good progress with the roll outs at our larger North American clients with more stations and channels going live at Fox, Media General and CTV. Good progress is also being made at the Showtime US and ScreenVision projects.

In October we signed a contract with Globosat in Brazil. This is our first contract in South America and we hope that this will lead to further opportunities in the region. The pipeline of opportunities continues to grow and we expect to report more conversions into signed contracts in the near future.  

Results

Q3 revenues of £4,827,000 were more then 20% higher than the equivalent quarter in 2008 (Q3 2008: £4,031,000) and 15% higher than Q2 this year. The signs of recovery reported last quarter seem to have strengthened as existing clients placed more orders for services and software enhancements. These Q3 revenues included £3,166,000 (Q3 2008: £2,716,000) for implementation services (customisation, integration, training and consulting fees), £470,000 (Q3 2008: £446,000) for the proportion of IBMS licences recognised during Q3 and £1,191,000 (Q3 2008: £869,000) of recurring maintenance and support fees from "live" clients.  

Costs were generally reduced, achieved by lower staffing levels and a voluntary salary reduction programme that was implemented on 1st July and which will be in effect till the end of this year.  

Gross profit in Q3 was £2,421,000 (Q3 2008: £1,815,000), which represents a gross margin of 50.16% compared to 45.03% in the equivalent period last year. The gross margin in Q3 and the nine months to September 2009 remain in line with those achieved for the twelve months of 2008.  

  The level of research and development expenditure in Q3 was significantly lower in comparison to the corresponding quarter last year as resources were shifted to more client-specific fee earning work. Sales and marketing costs in Q3 2009 were reduced by approximately 32% to £358,000 (Q3 2008: £529,000) due to a reduction in sales headcount and a decision to focus on the higher potential and higher probability opportunities.

 

General and administrative costs of £825,000 were also lower than the equivalent quarter last year (Q3 2008: £997,000) which primarily reflects the impact of reduced staffing and additional cost savings that have been achieved.

In the three months to September 2009 the pound sterling currency depreciated against the US dollar (3.8%) and the Canadian dollar (9.98%). The impact was as follows: (i) Restating the predominantly US dollar currency balances (mainly receivables, but also cash and accounts payables) into sterling at the new rates resulted in an exchange gain of £0.3 million and a loss of £1.12 million in the three and nine months to 30 September 2009, respectively; (ii) fair value gains on financial instruments were £58,000 in the three months to September 2009; and (iii) the maturing of old hedging instruments during the period led to losses of £0.22 million and £0.87 million in the three and nine months to 30 September 2009, respectively 

Overall, the net effect of exchange rate movements and fair value adjustments was a gain of £121,000 (Q3 2008 £270,000 gain) in the three months and £746,000 in the nine months to September 2009 (nine months 2008 £571,000 gain). The Group will continue to look at ways for minimising the impact of exchange rate movements but if the volatility in exchange rates continues then inevitably the results of the Group will be impacted.

The amortisation for Q3 2009 was £280,535 (Q3 2008 £177,110), including £200,000 for the amortisation of the technology upgrade that was completed in Q3 last year.

The increased revenues in the quarter and the lower operating costs excluding the exchange rate movements and amortisation of intangible assets gave rise to an operating profit of £849,000 compared to an operating loss of £155,000 in Q3 2008. After exchange rate related losses and amortisation, the quarterly gain in the period was £699,000 (Q3 2008 loss £367,000).

Statement of Financial Position

There was no further capitalisation of development costs in Q3 2009 and amortisation of intangibles has increased from Q3 2008 as a result of the completion of the development work on the technology upgrade in the middle of Q3 2008.

At September 30 2009, the Company had current assets of £15.5 million with current liabilities of only £4.0 million. Total receivables (trade and other) were down from £15.2million at the end of 2008 to £14.8 million as cash collection from the larger clients improved and key milestones were met triggering invoicing and recovery of the accrued income balances.  Trade receivables at the end of the quarter included £1.97 million due from one slow paying customer in the United States. Since the quarter end £555,000 has been collected and we expect more payments in the coming 2-3 months.

The fair value of derivative financial instruments reflected within current liabilities fell compared to the value at 31 December 2008 as a result of the expiry of some hedges and a strengthening of sterling compared to the 2008 year end position.  

Cash flow

Despite the reductions in operating expenses and the reduction in receivables through invoicing and collection, the net cash position has shown a small decline from the 2008 year end. However, we expect this to improve in Q4 resulting in an increased cash balance at the end of the year.

Outlook

We feel optimistic about the future and are on track for a strong Q4 and a good beginning for 2010. This optimism is based on the increased demand we see from our existing clients, the steady progression through milestones we continue to achieve with our large long term projects, and the strengthening pipeline of new opportunities. We are pleased to have won the Globosat contract and look forward to more conversions in the near future. These improvements, together with the reduction in operating costs, will continue to lead to profits and positive cash flows. 

Michael Rosenberg Chairman 29 November 2009

Avi Engel Chief Executive Officer 29 November 2009

  

CONSOLIDATED INCOME STATEMENT

	Note	Unaudited 9 months to  30 September	Unaudited 9 months to  30 September	Unaudited 3 months to 30 September	Unaudited 3 months to 30 September	Audited Year ended 31 December
		2009	2008	2009	2008	2008
		£	£	£	£	£
REVENUE	4	13,160,100	12,208,379	4,826,842	4,030,992	17,830,884
Cost of sales		(6,969,451)	(7,131,519)	(2,405,644)	(2,215,922)	(9,162,092)
GROSS PROFIT		6,190,649	5,076,860	2,421,198	1,815,070	8,668,792
Other operating expenses:
Research and development		(1,409,248)	(2,166,679)	(387,761)	(701,805)	(2,974,049)
Selling and marketing		(1,166,103)	(1,302,456)	(358,025)	(528,716)	(1,656,084)
General and administrative		(2,869,126)	(2,908,589)	(825,350)	(996,955)	(3,930,097)
Exchange rate movement		(1,124,824)	486,878	279,200	434,537	1,292,852
Operating (loss)/profit before amortisation and impairment of intangible assets		(378,652)	(813,986)	1,129,262	22,131	1,401,414
Amortisation of intangible assets		(841,606)	(335,647)	(280,535)	(177,110)	(666,510)
Impairment of intangible assets		-	-	-	-	(691,119)
(LOSS)/PROFIT FROM OPERATIONS		(1,220,258)	(1,149,633)	848,727	(154,979)	43,785
Fair value adjustment - financial instruments		1,243,310	114,076	57,785	(113,885)	(2,011,431)
Foreign exchange loss on hedging instruments		(864,904)	(29,637)	(216,288)	(51,150)	(290,259)
Finance Income		19,781	30,563	14,409	5,041	50,854
Finance costs		(34,634)	(101,474)	(5,642)	(52,510)	(149,048)
(LOSS)/PROFIT BEFORE TAX		(856,705)	(1,136,105)	698,991	(367,483)	(2,356,099)
Income tax credit/(charge)		188,949	354,118	(124,553)	173,414	606,516
(LOSS) / PROFIT FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY		(667,756)	(781,987)	574,438	(194,069)	(1,749,583)
(LOSS) / PROFIT PER SHARE
Basic	3	(1.13p)	(1.32p)	0.97p	(0.33p)	(2.95p)
Diluted	3	(1.13p)	(1.32p)	0.97p	(0.33p)	(2.95p)

Note:  The (loss) / profit from operations for the period arises from the Group's continuing operations

  CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		Unaudited 9 months to  30 September	Unaudited 9 months to  30 September	Unaudited 3 months to 30 September	Unaudited 3 months to 30 September	Audited Year ended 31 December
		2009	2008	2009	2008	2008
		£	£	£	£	£
(LOSS)/PROFIT FOR THE PERIOD		(667,756)	(781,987)	574,438	(194,069)	(1,749,583)
OTHER COMPREHENSIVE INCOME:
Gains / (losses) recognised directly to equity:
Fair value movements on cash flow hedges		1,324,340	(1,107,882)	14,635	(1,174,977)	(1,563,553)
Exchange translation differences on foreign operations		5,687	128,061	64,118	98,038	283,413
Deferred tax on fair value movements on cash flow hedges		(366,532)	310,208	(4,171)	328,992	437,794
Other comprehensive income for the period, net of tax		963,495	(669,613)	74,582	(747,947)	(842,346)
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY		295,739	(1,451,600)	649,020	(942,016)	(2,591,929)

. 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

	Share Capital	Share Premium Account	Capital  Redemption  Reserve	Merger Reserve	Share Option Reserve	Other Reserve	Cumulative Translation  Reserve	Cash Flow Hedge Reserve	Retained Earnings	Total
	£	£	£	£	£	£	£	£	£	£
Attributable to equity holders of the company:
Balance at 1 January 2009	2,960,517	9,046,892	50,000	(853,955)	960,483	3,108,000	400,063	(2,181,000)	2,203,143	15,694,143
Loss after tax	-	-	-	-	-	-	-	-	(667,756)	(667,756)
Fair value movements on cash flow hedges	-	-	-	-	-	-	-	1,324,340	-	1,324,340
Exchange translation differences on foreign operations	-	-	-	-	-	-	5,687	-	-	5,687
Deferred tax on fair value movements on cash flow hedges	-	-	-	-	-	-	-	-	(366,532)	(366,532)
Total comprehensive income for the period	-	-	-	-	-	-	5,687	1,324,340	(1,034,288)	295,739
Share option charge for the period	-	-	-	-	44,177	-	-	-	-	44,177
Total changes in equity	-	-	-	-	44,177	-	5,687	1,324,340	(1,034,288)	339,916
Balance at 30 September 2009	2,960,517	9,046,892	50,000	(853,955)	1,004,660	3,108,000	405,750	(856,660)	1,168,855	16,034,059

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

	Share Capital	Share Premium Account	Capital  Redemption  Reserve	Merger Reserve	Share Option Reserve	Other Reserve	Cumulative Translation  Reserve	Cash Flow Hedge Reserve	Retained Earnings	Total
	£	£	£	£	£	£	£	£	£	£
Attributable to equity holders of the company:
Balance at 1 July 2009	2,960,517	9,046,892	50,000	(853,955)	962,298	3,108,000	341,632	(871,295)	598,588	15,342,677
Profit after tax	-	-	-	-	-	-	-	-	574,438	574,438
Fair value movements on cash flow hedges	-	-	-	-	-	-	-	14,635	-	14,635
Exchange translation differences on foreign operations	-	-	-	-	-	-	64,118	-	-	64,118
Deferred tax on fair value movements on cash flow hedges	-	-	-	-	-	-	-	-	(4,171)	(4,171)
Total comprehensive income for the period	-	-	-	-	-	-	64,118	14,635	570,267	649,020
Share option charge for the period	-	-	-	-	42,362	-	-	-	-	42,362
Total changes in equity	-	-	-	-	42,362	-	64,118	14,635	570,267	691,382
Balance at 30 September 2009	2,960,517	9,046,892	50,000	(853,955)	1,004,660	3,108,000	405,750	(856,660)	1,168,855	16,034,059

  

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (AUDITED)
	Share Capital	Share Premium Account	Capital Redemption Reserve	Merger Reserve	Share Option Reserve	Other Reserve	Cumulative Translation Reserve	Cash Flow Hedge Reserve	Retained Earnings	Total
	£	£	£	£	£	£	£	£	£	£
Attributable to equity holders of the company:
Balance at 1 January 2008	2,960,117	9,045,412	50,000	(853,955)	639,916	3,108,000	116,650	(444,562)	3,772,042	18,393,620
Loss after tax	-	-	-	-	-	-	-	-	(1,749,583)	(1,749,583)
Fair value movements on cash flow hedges	-	-	-	-	-	-	-	(1,563,553)	-	(1,563,553)
Exchange translation differences on foreign operations	-	-	-	-	-	-	283,413	-	-	283,413
Deferred tax on fair value movements on cash flow hedges	-	-	-	-	-	-	-	-	437,794	437,794
Total comprehensive income for the period	-	-	-	-	-	-	283,413	(1,563,553)	(1,311,789)	(2,591,929)
Current tax adjustment re share options	-	-	-	-	-	-	-	-	250	250
Deferred tax movement	-	-	-	-	-	-	-	-	(145,664)	(145,664)
Re-categorisation of deferred tax	-	-	-	-	445,639	-	-	(172,885)	(272,754)	-
Transfer on share options lapsed	-	-	-	-	(161,058)	-	-	-	161,058	-
Share option charge for the period	-	-	-	-	35,986	-	-	-	-	35,986
Proceeds of issue of shares	400	1,480	-	-	-	-	-	-	-	1,880
Total changes in equity	400	1,480	-	-	320,567	-	283,413	(1,736,438)	(1,568,899)	(2,699,477)
Balance at 31 December 2008	2,960,517	9,046,892	50,000	(853,955)	960,483	3,108,000	400,063	(2,181,000)	2,203,143	15,694,143
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
	Share Capital	Share Premium Account	Capital Redemption Reserve	Merger Reserve	Share Option Reserve	Other Reserve	Cumulative Translation Reserve	Cash Flow Hedge Reserve	Retained Earnings	Total
	£	£	£	£	£	£	£	£	£	£
Attributable to equity holders of the company:
Balance at 1 January 2008	2,960,117	9,045,412	50,000	(853,955)	639,916	3,108,000	116,650	(444,562)	3,772,042	18,393,620
Loss after tax	-	-	-	-	-	-	-	-	(781,987)	(781,987)
Fair value movements on cash flow hedges	-	-	-	-	-	-	-	(1,107,882)	-	(1,107,882)
Exchange translation differences on foreign operations	-	-	-	-	-	-	128,061	-	-	128,061
Deferred tax on fair value movements on cash flow hedges	-	-	-	-	-	-	-	-	310,208	310,208
Total comprehensive income for the period	-	-	-	-	-	-	128,061	(1,107,882)	(471,779)	(1,451,600)
Re-categorisation of deferred tax	-	-	-	-	445,639	-	-	(172,885)	(272,754)	-
Share option charge for the period	-	-	-	-	33,714	-	-	-	-	33,714
Proceeds of issue of shares	400	1,480	-	-	-	-	-	-	-	1,880
Total changes in equity	400	1,480	-	-	479,353	-	128,061	(1,280,767)	(744,533)	(1,416,006)
Balance at 30 September 2008	2,960,517	9,046,892	50,000	(853,955)	1,119,269	3,108,000	244,711	(1,725,329)	3,027,509	16,977,614

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
	Share Capital	Share Premium Account	Capital Redemption Reserve	Merger Reserve	Share Option Reserve	Other Reserve	Cumulative Translation Reserve	Cash Flow Hedge Reserve	Retained Earnings	Total
	£	£	£	£	£	£	£	£	£	£
Attributable to equity holders of the company:
Balance at 1 July 2008	2,960,517	9,046,892	50,000	(853,955)	1,116,996	3,108,000	146,673	(550,352)	2,892,586	17,917,357
Loss after tax	-	-	-	-	-	-	-	-	(194,069)	(194,069)
Fair value movements on cash flow hedges	-	-	-	-	-	-	-	(1,174,977)	-	(1,174,977)
Exchange translation differences on foreign operations	-	-	-	-	-	-	98,038	-	-	98,038
Deferred tax on fair value movements on cash flow hedges	-	-	-	-	-	-	-	-	328,992	328,992
Total comprehensive income for the period	-	-	-	-	-	-	98,038	(1,174,977)	134,923	(924,016)
Share option charge for the period	-	-	-	-	2,273	-	-	-	-	2,273
Total changes in equity	-	-	-	-	2,273	-	98,038	(1,174,977)	134,923	(939,743)
Balance at 30 September 2008	2,960,517	9,046,892	50,000	(853,955)	1,119,269	3,108,000	244,711	(1,725,329)	3,027,509	16,977,614

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

				Unaudited 30 September		Unaudited 30  September		Audited   31 December
ASSETS		Note		2009 £		2008  £		2008 £
NON-CURRENT ASSETS
Intangible assets		6		6,262,950		8,126,536		7,104,556
Property, plant and equipment				534,754		735,127		739,578
				6,797,704		8,861,663		7,844,134
CURRENT ASSETS
Trade receivables		7		6,928,310		8,043,117		6,703,936
Other receivables		7		7,859,658		8,693,219		8,531,554
Taxation				-		479,250		337,525
Cash and cash equivalents				702,019		563,131		1,581,362
				15,489,987		17,778,717		17,154,377
TOTAL ASSETS				22,287,691		26,640,380		24,998,511
CAPITAL AND RESERVES
Called up share capital		9		2,960,517		2,960,517		2,960,517
Share premium account		9		9,046,892		9,046,892		9,046,892
Capital redemption reserve				50,000		50,000		50,000
Merger reserve				(853,955)		(853,955)		(853,955)
Share option reserve				1,004,660		1,119,269		960,483
Other reserve				3,108,000		3,108,000		3,108,000
Cumulative translation reserve				405,750		244,711		400,063
Cash flow hedge reserve				(856,660)		(1,725,329)		(2,181,000)
Retained earnings				1,168,855		3,027,509		2,203,143
CAPITAL AND RESERVES ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY				16,034,059		16,977,614		15,694,143
LIABILITIES
NON-CURRENT LIABILITIES
Deferred taxation				247,630		640,268		102,365
Derivative financial instruments		8		1,967,907		1,954,376		4,535,557
				2,215,537		2,594,644		4,637,922
CURRENT LIABILITIES
Borrowings				713,374		3,464,835		1,527,480
Trade and other payables				3,283,531		3,603,287		3,138,966
Taxation				41,190		-		-
				4,038,095		7,068,122		4,666,446
TOTAL LIABILITIES				6,253,632		9,662,766		9,304,368
SHAREHOLDERS' EQUITY AND LIABILITIES				22,287,691		26,640,380		24,998,511

CONSOLIDATED STATEMENT OF CASH FLOWS

				Unaudited 9 months to  30 Sept		Unaudited 9 months to  30 Sept		Unaudited 3 months to  30 Sept		Unaudited 3 months to 30 Sept		Audited Year ended 31 December
		Notes		2009 £		2008 £		2009 £		2008 £		2008   £
Net cash inflow / (outflow) from operations		a		(303,407)		(2,412,589)		(497,918)		(823,010)		(67,847)
Income taxes (paid) / received				267,655		29,057		353,629		-		147,116
Interest paid				(34,634)		(101,474)		(5,642)		(52,510)		(149,048)
Interest received				19,781		30,563		14,409		5,041		50,854
Net cash from operating activities				(50,605)		(2,454,443)		(135,522)		(870,479)		(18,925)
Cash flow from investing activities		b		(72,624)		(1,436,730)		(18,865)		(84,515)		(1,525,377)
Cash flow from financing activities		c		-		1,880		-		-		1,880
Net change in cash and cash equivalents				(123,229)		(3,889,293)		(154,387)		(954,994)		(1,542,422)
Cash and cash equivalents at beginning of period				53,882		720,535		242,373		(2,138,239)		720,534
Exchange gains on cash and bank overdraft				57,988		267,054		(99,341)		191,529		875,770
Cash and cash equivalents at end of period				(11,355)		(2,901,704)		(11,355)		(2,901,704)		53,882

  

APPENDICES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS

		Unaudited 9 months   30 Sept	Unaudited 9 months  30 Sept	Unaudited 3 months  30 Sept	Unaudited 3 months  30 Sept	Audited Year ended 31 December
		2009 £	2008 £	2009 £	2008 £	2008 £
	Reconciliation of (loss)/profit before tax to net cash (outflow) / inflow from operating activities
a	(Loss) / Profit before tax	(856,705)	(1,136,105)	698,991	(367,483)	(2,356,099)
	Finance income	(19,781)	(30,563)	(14,409)	(5,041)	(50,854)
	Interest paid	34,634	101,474	5,642	52,510	149,048
	Depreciation and amortisation	1,103,704	655,288	376,806	307,796	1,072,797
	Impairment of intangible asset	-	-	-	-	691,119
	Share option expense	44,180	33,714	42,365	2,273	35,986
	(Gains)/Losses on derivative instruments	(1,243,310)	(114,076)	(57,785)	113,885	2,011,431
	Increase/(Decrease) in trade and other receivables	375,920	(2,075,973)	(1,856,530)	(603,394)	(648,379)
	Increase/(Decrease) in trade and other payables	257,951	153,652	307,002	(323,556)	(972,896)
	Net cash inflow/(outflow) from operating activities	(303,407)	(2,412,589)	(497,918)	(823,010)	(67,847)
	Cash flow from investing activities
b	Purchase of property, plant and equipment	(72,624)	(483,056)	(18,865)	(84,515)	(571,702)
	Capitalised software development costs	-	(956,125)	-	-	(956,127)
	Sale of property, plant and equipment	-	2,451	-	-	2,452
	Net cash outflow from investing activities	(72,624)	(1,436,730)	(18,865)	(84,515)	(1,525,377)
	Cash flow from financing activities
C	Proceeds from the issue of share capital	-	1,880	-	-	1,880
	Net cash generated from financing activities	-	1,880	-	-	1,880

  1. General Information

The Company is a limited liability company incorporated and domiciled in the United Kingdom. The address of its registered office is 19th Floor, Wembley Point, 1 Harrow Road, Wembley Point, London HA9 6DE. Copies of this statement are available from this address and from the Company's website www.pilatmedia.com.

The Company is quoted on the AIM (Alternative Investment Market) of the London Stock Exchange and is co-listed on the Tel Aviv Stock Exchange.

This condensed consolidated interim financial information was approved for issue on 29 November 2009.

2. Basis of preparation

This condensed consolidated interim financial information for the nine months ended 30 September 2009 has been prepared in accordance with IAS 34, 'interim financial reporting'. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2008, which have been prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS).

Except as described below, the current and comparative periods to September have been prepared using accounting policies and practices consistent with those adopted in the annual financial statements for the year ended 31 December 2008 and are also consistent with those which will be adopted in the 2009 financial statements. Comparative figures for the year ended 31 December 2008 have been extracted from the statutory financial statements for that period which carried an unqualified audit report, contained an emphasis of matter relating to trade receivables as discussed in Note 7, did not contain a statement under section 237(2) or (3) of the Companies Act and have been delivered to the Registrar of Companies.

 

The Financial Information contained in this Report does not constitute statutory accounts as defined by section 434 of the Companies Act 2006.

BASIS OF NEW AND REVISED STANDARDS

The following Standards and interpretations have been applied in these financial statements. 

IFRS 2	Share based Payment - Amendments relating to vesting conditions and cancellations (endorsed)
IFRS 8	Operating Segments (endorsed)
IAS 1	Presentation of Financial Statements - Revised (endorsed)
IAS 1	Presentation of Financial Statements - Amendments relating to Puttable Financial Instruments and obligations arising on liquidation (endorsed)
IAS 27	Consolidated and Separate Financial Statements (endorsed)
IAS 32	Financial Instruments Presentation - Amendments relating to Puttable Financial Instruments and obligations arising on liquidation (endorsed)
IAS 39	Embedded Derivatives
IFRIC 9	Embedded Derivatives
IFRIC 13	Customer Loyalty Programmes (endorsed)
IFRIC 15	Agreements for the construction of Real Estate Assets (endorsed)
IFRIC 16	Hedges of Net Investment in a Foreign Operation (endorsed)

The directors consider that the adoption of these Standards and Interpretations as appropriate has had no material impact on the financial statements of the Group, except relating to segment disclosures, as discussed in note 4.

3. (Loss)/profit per share

Basic and diluted (loss)/profit per share is based on the (loss)/profit for the period and on the following weighted average number of shares in issue.

	9 Months to September 2009	9 months to September 2008	3 months to September 2009	3 months to September 2008	Year ended 31 December 2008
For basic and diluted loss per share	59,210,331	59,207,320	59,210,331	59,210,331	59,210,331

As a result of the losses incurred in the period ended 30 September 2009, profit in the 3 months to September 2009, losses 30 September 2008 and 31 December 2008 there was no dilutive effect from the issue of share options.

4. Segmental Analysis 

During the period the Company has adopted IFRS 8 which is effective for annual reporting periods beginning on or after 1 January 2009 and requires that the Company should disclose segmental information based on financial data used by the Chief Operating Decision Makers (CODM) who are responsible for making financial decisions. The CODM is considered to be the Company's Senior Managers and Executive Directors

The Directors consider there to be only one segment under IFRS 8, and have disclosed the following additional information to be consistent with prior periods 

a) Analysis of group results:

		9 Months to September 2009 (unaudited)			9 months to September 2008 (unaudited)			12 months to December 2008 (audited)
		IBMS	Media Pro	Total	IBMS	Media Pro	Total	IBMS	Media Pro	Total
		£	£	£	£	£	£	£	£	£
	Revenue	12,255,239	904,861	13,160,100	11,549,525	658,854	12,208,379	16,713,517	1,117,367	17,830,884
	Segment result	(1,345,942)	125,684	(1,220,258)	(1,008,869)	(170,401)	(1,179,270)	45,300	(1,515)	43,785
	Fair value adjustments on  Financial instruments			1,243,310	114,076	-	114,076	(2,011,431)	-	(2,011,431)
	(Loss)/Gain on hedging instrument			(864,904)			(29,637)			(290,259)
	Finance income			19,781			30,563			50,854
	Finance costs			(34,634)			(101,474)			(149,048)
	Loss before tax			(856,705)			(1,136,105)			(2,356,099)
	Income tax expense/(credit)			(188,949)			354,118			606,516
	Loss for the period			(667,756)			(781,987)			(1,749,583)
	Other Information
	Capital expenditure - tangible	66,748	5,876	72,624	476,226	6,830	483,056	564,872	6,831	571,703
	Capital expenditure - intangible	-	-	-	956,127	-	956,127	956,127	-	956,127
	Depreciation and amortisation	1,097,617	6,087	1,103,704	642,274	13,014	655,288	1,001,656	71,141	1,072,797
	Segment Balance Sheet
	Segment Asset	21,962,223	325,468	22,287,691	25,192,018	405,981	25,597,999	22,787,150	346,356	23,133,506
	Tax Assets	-	-	-	390,768	88,482	479,250			337,525
	Total Assets	21,962,223	325,468	22,287,691	25,582,786	494,463	26,077,249			23,471,031
	Segment Liabilities	5,800,307	205,695	6,006,002	8,166,993	292,374	8,459,367	7,632,067	42,456	7,674,523
	Tax Liabilities	247,630	-	247,630	640,268	-	640,268			102,365
	Total Liabilities	6,047,937	205,695	6,253,632	8,807,261	292,374	9,099,635			7,776,888

		3 Months to September 2009 (unaudited)			3 months to September 2008 (unaudited)
		IBMS	Media Pro	Total	IBMS	Media Pro	Total
		£	£	£	£	£	£
	Revenue	4,552,988	273,854	4,826,842	3,747,781	283,211	4,030,992
	Segment result	808,580	40,147	848,727	(143,417)	(11,562)	(154,979)
	Fair value adjustments on  Financial instruments			57,785			(113,885)
	Loss on hedging instrument			(216,288)			(51,150)
	Finance income			14,409			5,041
	Finance costs			(5,642)			(52,510)
	(Loss)/Profit before tax			698,991			(367,483)
	Income tax expense/(credit)			124,553			173,414
	(Loss)/Profit for the period			574,438			(194,069)
	Other Information
	Capital expenditure - tangible	18,865	-	18,865	83,924	591	84,515
	Capital expenditure - intangible	-	-	-	-	-	-
	Depreciation and amortisation	375,089	1,717	376,806	305,645	2,151	307,796

b) The Group's revenue and (loss) / profit before tax were all derived from its principal activities. Revenue and profit from operations were made in the following geographical markets:

		Revenue (unaudited)			Segment result (unaudited)
	9 Months to 30 September   2009 £		9 months to 30 September  2008 £	Year ended 31 December  2008 £	9 Months to 30 September   2009 £	9 Months to 30 September   2008 £	Year ended 31  December  2008 £
Europe, Middle East and Africa "EMEA"	3,337,749		5,003,044	6,763,584	(745,979)	(17,827)	444,562
Americas	7,438,745		5,126,923	8,162,962	691,468	(889,781)	(311,091)
Australasia	2,383,606		2,078,412	2,904,338	(1,165,747)	(242,025)	(89,686)
	13,160,100		12,208,379	17,830,884	(1,220,258)	(1,149,633)	43,785

	Revenue		Segment result
	3 Months to September 2009 £	3 Months to September 2008 £	3 Months to September 2009 £	3 Months to September 2008 £
Europe, Middle East and Africa "EMEA"	1,064,155	1,536,634	150,286	51,524
Americas	2,846,448	1,751,203	1,056,229	(241,637)
Australasia	916,239	743,155	(357,788)	35,134
	4,826,842	4,030,992	848,727	(154,979)

The above geographical location has been provided based on the destination of services provided.

More than 90% of the assets of the Group are located in the EMEA region. The Group derives the majority of its revenue outside of the EMEA region.

5.  Seasonality

Whilst revenue is not seasonal there has been an historic trend of the second half of the year being stronger than the first half of the year. For the year ended 31 December 2008, the 2nd half revenue represented 54% (2007: 54%) of the annual revenue.

  

6.  Intangibles

	Trade Mark £	Customer Contracts £	Intellectual Property £	Development  Costs £	Total £
Cost
1 January 2008	2,210	2,701,366	469,404	4,914,386	8,087,366
Additions during the year - internal development	-	-	-	956,127	956,127
At 31 December 2008	2,210	2,701,366	469,404	5,870,513	9,043,493
At 30 September 2009	2,210	2,701,366	469,404	5,870,513	9,043,493
Amortisation
1 January 2008	-	474,651	106,657	-	581,308
Amortisation for the year	-	258,904	58,170	349,436	666,510
Impairment of Customer Contracts and Intellectual Property	-	541,963	149,156	-	691,119
At 31 December 2008	-	1,275,518	313,983	349,436	1,938,937
Amortisation for the period	-	191,724	20,898	628,984	841,606
At 30 September 2009	-	1,467,242	334,881	978,420	2,780,543
Carrying Amount
At 30 September 2009	2,210	1,234,124	134,523	4,892,093	6,262,950
At 31 December 2008	2,210	1,425,848	155,421	5,521,077	7,104,556
At 30 September 2008	2,210	2,032,537	319,118	5,772,671	8,126,536

7. Trade and Other Receivables

Trade and other receivables include an overdue trade receivable amount of £1.4 million (December 08 £2.1 million, September 08 £1.75 million) due from a customer in the United States. A further amount of £2.8 million (December 08 £3.1 million, September 08 £2.5 million) in respect of the same contract with the same customer is included in accrued income. Since the end of the period £0.5m has been received from this customer and the directors are actively pursuing the remaining amounts outstanding and have concluded that no provision is appropriate at present. The directors are of the opinion that substantially all of the amounts due from the customer are recoverable although there remains current uncertainty over the timing of settlement of the remaining outstanding receivable.

8. Derivative Financial Instruments

				30 September 2009 £		30 September 2008 £		31 December 2008 £
		Forward foreign exchange contracts - classified as held for trading - Canadian Dollar		-		229,047		293,248
		Forward foreign exchange contracts - classified as held for trading - US Dollar		856,660		838,036		2,061,309
		Forward foreign exchange contracts - classified as effective cash flow hedge		1,111,247		887,293		2,181,000
		Total		1,967,907		1,954,376		4,535,557

As at 30 September 2009, the Group held forward foreign currency contracts of US Dollar $15,000,000 (31 December 2008 $24,000,000, 30 September 2008 $27,000,000) and Canadian Dollar C$ nil (31 December 2008 C$2,800,000, 30 September 2008 C$4,400,000) to hedge expected settlements of foreign currency receivable balances. US Dollar $7,500,000 (31 December 2008 $12,000,000, 30 September 2008 $13,500,000) of the US Dollar forward contract relates to a written option held for trading. 

9. Share Capital and Share Premium

	Allotted, issued and fully paid
	Number of Shares	Ordinary Shares £	Share Premium £	Total £
Opening balance as at 1 January 2008	59,202,331	2,960,117	9,045,412	12,005,529
Proceeds from shares issued - employee share option scheme	8,000	400	1,480	1,880
At 30 September 2008, 31 December 2008 and 30 September 2009	59,210,331	2,960,517	9,046,892	12,007,409

ENDQRTZGMZMVNMGLZM