TIDMUPS
RNS Number : 7983Z
Upstream Marketing and Comms Inc.
29 September 2009
Upstream Marketing and Communications Inc.
("Upstream" or "the Company")
Interim Results
For the six month period ended 30 June 2009
Interim Statement
29 September 2009, Upstream Marketing and Communications Inc. (AIM: UPS)
announces its interim results for the six month period ended 30 June 2009.
FINANCIAL SUMMARY
- Revenue for the period of US$ 2.091 million (2008: US$ 2.904 million)
- Year on year revenue is down 28%, in part due to post Olympics revenue drops
in China, and to the fact that the Company ceased receiving fees from the news
distribution business disposed of in May 2008 (Jun 2008: $0.189 million)
- Challenging trading conditions from worldwide economic downturn dampen client
spending
- Cost reduction measures expected to begin having an impact in the second half
of 2009
CHAIRMAN'S STATEMENT
Despite difficult trading conditions, Upstream generated revenue of US$ 2.091
million in the six months to 30 June 2009. This performance represents a 28%
decrease from the revenue of US$2.904 million achieved in the comparable period
in the prior year. The reduction can be attributed primarily to reduced client
assignments in the worldwide recessionary climate, following on from the
exceptional level of spending in China in 2008 in connection with the Olympics.
Additionally, in the first half of last year Upstream was collecting fees from a
news release distribution business which it sold in May 2008. Proceeds from the
sale generated US$ 0.350 million of other income in 2008 and following the
disposal, this income stream ceased.
The net loss before tax for the period is US$ 0.402 million, compared to a
profit before tax of US$0.331 million in 2008, of which US$ 0.350 million came
from the sale of the news release business.
Total assets are down 49% year on year from US$ 3.451 million to US$ 1.770
million. The Company's bank and cash balances are lower by 25% year on year, at
US$ 0.409 million compared to US$ 0.548 million at the end of June 2008.
Initial cost cutting measures in the first half of the year decreased operating
expenses by 13%, from US$ 2.899 million in 2008 to US$2.512 million. Towards the
end of the period and in July further cost-saving actions of approximately US$
42,000 per month have been enacted. These savings will positively impact the
results from July onwards.
Upstream continues to serve a portfolio of blue chip clients, and creates
innovative marketing and corporate communications campaigns across its network
of five offices. Digital communications and work with Asia-based clients show
future potential, in addition to the Group's core public relations business.
In the longer term, economic conditions in Upstream's markets in Asia Pacific
are viewed by many to be more robust than elsewhere and China, which comprises a
significant part of Upstream's operations, is on track for more than 7% GDP
growth in 2009. The total cost of maintaining the Upstream listed company and
its subsidiaries is still high relative to revenue and the directors are
considering ways to address this.
David Ketchum Stephen Smith
28 September 2009
28 September 2009
www.aboutupstream.com
+------------------------------------------------+--------+----------------+-----------------+------------------------------------+-----------------+----------+
| Upstream Marketing & Communications Inc. |
| Consolidated Statement of Comprehensive Income |
| For the six months ended 30 June 2009 |
| |
+--------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | Six month | Six month | | |
| | | period ended | period ended | Year ended 31 | |
| | | 30 June 2009 | 30 June 2008 | December 2008 | |
| | | Unaudited | Unaudited | Audited | |
| | | US$'000 | US$'000 | US$'000 | |
+------------------------------------------------+--------+----------------+------------------------------------------------------+-----------------+----------+
| | | | | |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| Continuing operations | | | | |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| Turnover | | 2,543 | 2,904 | 9,268 |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| Material cost of sales | | (452) | - | (3,110) |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| Gross profit / revenue | | 2,091 | 2,904 | 6,158 |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| Other income | | 62 | 380 | 472 |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| Total income | | 2,153 | 3,284 | 6,630 |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| | | | | |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| Operating expenses | | (2,512) | (2,899) | (5,961) |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| (Loss) / profit from operations prior to share | | | | |
| based payment charge | | (359) | 385 | 669 |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| | | | | |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| Share based payment charge | | (43) | (54) | (103) |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| (Loss) / profit for the period from operations | | (402) | 331 | 566 |
| before tax | | | | |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| | | | | |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| Taxation expense | 4 | (46) | 2 | (133) |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| | | | | |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| Profit/(loss) for the period | | (448) | 333 | 433 |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| | | | | |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| Other comprehensive income: | | | | |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| Exchange difference | | (39) | 7 | 65 |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| Total comprehensive (expense) / income for the | | (487) | 340 | 498 |
| period | | | | |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| | | | | |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| | | US cents | US cents | US cents |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| (Loss) / earnings per ordinary share | 5 | | | |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| - Basic | | (0.33) | 0.20 | 0.32 |
+------------------------------------------------+--------+----------------+-----------------+-----------------------------------------------------------------+
| - Diluted | | (0.33) | 0.20 | 0.29 |
+------------------------------------------------+--------+----------------+-----------------+------------------------------------+-----------------+----------+
+--------------------+---------+---------+---------+---------+----------+----------+-----+---+
| Upstream Marketing & Communications Inc. |
| Consolidated Statement of Changes in Equity |
| Six months ended 30 June 2009 |
+----------------------------------------------------------------------------------------+
| | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| | Share | Shares | Share | Capital | Foreign | Retained | Total |
| | capital | to be | premium | reserve | exchange | earnings | equity |
| | | issued | | | reserve | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Balance at 1 | 636 | - | 4,438 | 6,547 | 73 | (10,937) | 757 |
| January 2009 | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Share options | - | - | - | - | - | 43 | 43 |
| issued in | | | | | | | |
| share-based | | | | | | | |
| payments | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Transactions with | - | - | - | - | - | 43 | 43 |
| owners | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Loss for the | - | - | - | - | - | (448) | (448) |
| period | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Other | | | | | | | |
| comprehensive | | | | | | | |
| expense: | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Exchange | - | - | - | - | (39) | - | (39) |
| differences on | | | | | | | |
| translation of | | | | | | | |
| foreign operations | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Total | - | - | - | - | (39) | (448) | (487) |
| comprehensive | | | | | | | |
| expense for the | | | | | | | |
| period | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Balance at 30 June | 636 | - | 4,438 | 6,547 | 34 | (11,342) | 313 |
| 2009 | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+-----+---+
+---------------+---------+---------+---------+---------+----------+----------+------------+------------+
| Upstream Marketing & Communications Inc. |
| Consolidated Statement of Changes in Equity |
| Six months ended 30 June 2009 |
| |
+-------------------------------------------------------------------------------------------------------+
| | | | | | | | |
+---------------+---------+---------+---------+---------+----------+----------+-------------------------+
| | Share | Shares | Share | Capital | Foreign | Retained | Total |
| | capital | to be | premium | reserve | exchange | earnings | equity |
| | | issued | | | reserve | | |
+---------------+---------+---------+---------+---------+----------+----------+-------------------------+
| | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+---------------+---------+---------+---------+---------+----------+----------+-------------------------+
| | | | | | | | |
+---------------+---------+---------+---------+---------+----------+----------+-------------------------+
| Balance | 632 | 113 | 4,385 | 6,547 | 8 | (11,473) | 212 |
| at 1 | | | | | | | |
| January | | | | | | | |
| 2008 | | | | | | | |
+---------------+---------+---------+---------+---------+----------+----------+-------------------------+
| Share | - | - | - | - | - | 54 | 54 |
| options | | | | | | | |
| issued | | | | | | | |
| in | | | | | | | |
| share-based | | | | | | | |
| payments | | | | | | | |
+---------------+---------+---------+---------+---------+----------+----------+-------------------------+
| Issue | 4 | (57) | 53 | - | - | - | - |
| of | | | | | | | |
| share | | | | | | | |
| capital | | | | | | | |
+---------------+---------+---------+---------+---------+----------+----------+-------------------------+
| Transactions | 4 | (57) | 53 | - | - | 54 | 54 |
| with owners | | | | | | | |
+---------------+---------+---------+---------+---------+----------+----------+-------------------------+
| | | | | | | | |
+---------------+---------+---------+---------+---------+----------+----------+-------------------------+
| Profit | - | - | - | - | - | 333 | 333 |
| for | | | | | | | |
| the | | | | | | | |
| period | | | | | | | |
+---------------+---------+---------+---------+---------+----------+----------+-------------------------+
| Other | | | | | | | |
| comprehensive | | | | | | | |
| income: | | | | | | | |
+---------------+---------+---------+---------+---------+----------+----------+-------------------------+
| Exchange | - | - | - | - | 7 | - | 7 |
| differences | | | | | | | |
| on | | | | | | | |
| translation | | | | | | | |
| of foreign | | | | | | | |
| operations | | | | | | | |
+---------------+---------+---------+---------+---------+----------+----------+-------------------------+
| Total | - | - | - | - | 7 | 333 | 340 |
| comprehensive | | | | | | | |
| income for | | | | | | | |
| the period | | | | | | | |
+---------------+---------+---------+---------+---------+----------+----------+-------------------------+
| Balance | 636 | 56 | 4,438 | 6,547 | 15 | (11,086) | 606 |
| at 30 | | | | | | | |
| June | | | | | | | |
| 2008 | | | | | | | |
+---------------+---------+---------+---------+---------+----------+----------+-------------------------+
| | | | | | | | |
+---------------+---------+---------+---------+---------+----------+----------+------------+------------+
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| | Share | Shares | Share | Capital | Foreign | Retained | Total |
| | capital | to be | premium | reserve | exchange | earnings | equity |
| | | issued | | | reserve | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Balance at 1 | 632 | 113 | 4,385 | 6,547 | 8 | (11,473) | 212 |
| January 2008 | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Share options | - | - | - | - | - | 103 | 103 |
| issued in | | | | | | | |
| share-based | | | | | | | |
| payments | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Cancellation of | - | (56) | - | - | - | - | (56) |
| shares to be | | | | | | | |
| issued | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Issue of share | 4 | (57) | 53 | - | - | - | - |
| capital | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Transactions with | 4 | (113) | 53 | - | - | 103 | 47 |
| owners | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Profit for the | - | - | - | - | - | 433 | 433 |
| year | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Other | | | | | | | |
| comprehensive | | | | | | | |
| income: | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Exchange | - | - | - | - | 65 | - | 65 |
| differences on | | | | | | | |
| translation of | | | | | | | |
| foreign operations | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Total | - | - | - | - | 65 | 433 | 498 |
| comprehensive | | | | | | | |
| income for the | | | | | | | |
| period | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| Balance at 31 | 636 | - | 4,438 | 6,547 | 73 | (10,937) | 757 |
| December 2008 | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------+---------+----------+----------+---------+
+-------------+--------+-----------+-----------+----------+
| Upstream Marketing & Communications Inc. |
| Consolidated Statement of Financial |
| Position |
| As at 30 June 2009 |
+---------------------------------------------------------+
| | | 30 | 30 | 31 |
| | | June | June | December |
| | | 2009 | 2008 | 2008 |
| | | Unaudited | Unaudited | Audited |
+-------------+--------+-----------+-----------+----------+
| | Note | US$'000 | US$'000 | US$'000 |
+-------------+--------+-----------+-----------+----------+
| | | | | |
+-------------+--------+-----------+-----------+----------+
| Assets | | | | |
+-------------+--------+-----------+-----------+----------+
| Non | | | | |
| current | | | | |
| assets | | | | |
+-------------+--------+-----------+-----------+----------+
| Property, | | 139 | 162 | 150 |
| plant and | | | | |
| equipment | | | | |
+-------------+--------+-----------+-----------+----------+
| Goodwill | | 58 | 170 | 86 |
+-------------+--------+-----------+-----------+----------+
| | | 197 | 332 | 236 |
+-------------+--------+-----------+-----------+----------+
| | | | | |
+-------------+--------+-----------+-----------+----------+
| Current | | | | |
+-------------+--------+-----------+-----------+----------+
| Trade | 6 | 1,164 | 2,571 | 1,235 |
| and | | | | |
| other | | | | |
| receivables | | | | |
+-------------+--------+-----------+-----------+----------+
| Cash | | 409 | 548 | 719 |
| and | | | | |
| cash | | | | |
| equivalents | | | | |
+-------------+--------+-----------+-----------+----------+
| | | 1,573 | 3,119 | 1,954 |
+-------------+--------+-----------+-----------+----------+
| | | | | |
+-------------+--------+-----------+-----------+----------+
| Total | | 1,770 | 3,451 | 2,190 |
| assets | | | | |
+-------------+--------+-----------+-----------+----------+
| | | | | |
+-------------+--------+-----------+-----------+----------+
| Liabilities | | | | |
+-------------+--------+-----------+-----------+----------+
| Current | | | | |
+-------------+--------+-----------+-----------+----------+
| Trade | 7 | 1,081 | 1,733 | 1,104 |
| and | | | | |
| other | | | | |
| payables | | | | |
+-------------+--------+-----------+-----------+----------+
| Deferred | | 315 | 1,021 | 118 |
| income | | | | |
+-------------+--------+-----------+-----------+----------+
| Current | | 32 | 23 | 162 |
| tax | | | | |
| provision | | | | |
+-------------+--------+-----------+-----------+----------+
| Bank | | 16 | 22 | 23 |
| loan | | | | |
+-------------+--------+-----------+-----------+----------+
| | | 1,444 | 2,799 | 1,407 |
+-------------+--------+-----------+-----------+----------+
| Non-current | | | | |
| liabilities | | | | |
+-------------+--------+-----------+-----------+----------+
| Deferred | 8 | 13 | 30 | 22 |
| tax | | | | |
| provision | | | | |
+-------------+--------+-----------+-----------+----------+
| Bank | | - | 16 | 4 |
| loan | | | | |
+-------------+--------+-----------+-----------+----------+
| | | 13 | 46 | 26 |
+-------------+--------+-----------+-----------+----------+
| | | | | |
+-------------+--------+-----------+-----------+----------+
| Total | | 1,457 | 2,845 | 1,433 |
| liabilities | | | | |
+-------------+--------+-----------+-----------+----------+
| | | | | |
+-------------+--------+-----------+-----------+----------+
| | | | | |
+-------------+--------+-----------+-----------+----------+
| Equity | | | | |
+-------------+--------+-----------+-----------+----------+
| Share | 9 | 636 | 636 | 636 |
| capital | | | | |
+-------------+--------+-----------+-----------+----------+
| Reserves | | (323) | (30) | 121 |
+-------------+--------+-----------+-----------+----------+
| Total | | 313 | 606 | 757 |
| equity | | | | |
+-------------+--------+-----------+-----------+----------+
| | | | | |
+-------------+--------+-----------+-----------+----------+
| Total | | 1,770 | 3,451 | 2,190 |
| equity | | | | |
| and | | | | |
| liabilities | | | | |
+-------------+--------+-----------+-----------+----------+
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | | | Six month | Six month | Year ended 31 |
| | | | period ended | period ended | December 2008 |
| | | | 30 June 2009 | 30 June 2008 | Audited |
| | | | Unaudited | Unaudited | |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | | | US$'000 | US$'000 | US$'000 |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | | | | | |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Operating activities | | | | |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| (Loss) / profit before taxation | (402) | 331 | 566 |
+-----------------------------------------------------------------------+--------------+----------------+---------------+
| Adjustments for: | | | |
+-----------------------------------------------------------------------+--------------+----------------+---------------+
| Finance income | (2) | - | (8) |
+-----------------------------------------------------------------------+--------------+----------------+---------------+
| Finance costs | 1 | 12 | 21 |
+-----------------------------------------------------------------------+--------------+----------------+---------------+
| Profit on disposal of intangible assets | - | (350) | - |
+-----------------------------------------------------------------------+--------------+----------------+---------------+
| Depreciation of property, plant and equipment | 32 | 38 | 76 |
+-----------------------------------------------------------------------+--------------+----------------+---------------+
| Share based payment costs | 43 | 54 | 103 |
+-----------------------------------------------------------------------+--------------+----------------+---------------+
| Amortisation of intangibles | 28 | 28 | 56 |
+-----------------------------------------------------------------------+--------------+----------------+---------------+
| Profit on sale of business | - | - | (350) |
+-----------------------------------------------------------------------+--------------+----------------+---------------+
| | Operating cashflow before working capital changes | | (300) | 113 | 464 |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | | | | | |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Decrease / (increase) in trade and other receivables | | 71 | (1,479) | (143) |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | (Decrease) / increase in trade and other payables | | (23) | 329 | (300) |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Increase in deferred income | | 197 | 966 | 63 |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Cash (used from)/generated by operations | | (55) | (71) | 84 |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Tax paid | | (185) | (8) | (12) |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Net cash (outflow)/inflow used in operating | | (240) | (79) | 72 |
| | activities | | | | |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | | | | | |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | | | | | |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Investing activities | | | | |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Finance income | | 2 | - | 8 |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Proceeds from the sale of businesses | | - | - | 350 |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Purchases of property, plant and equipment | | (21) | (20) | (47) |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Proceeds from sale of intangible assets | | - | 350 | - |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Net cash (outflow) / inflow from investing activities | | (19) | 330 | 311 |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | | | | | |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Financing activities | | | | |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Finance costs | | (1) | (12) | (21) |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Bank loan | | - | 45 | 45 |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Repayment of bank loan | | (11) | (7) | (18) |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Net cash (outflow) / inflow from financing activities | | (12) | 26 | 6 |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | | | | | |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Net (decrease) / increase in cash and equivalents | | (271) | 277 | 389 |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Cash and cash equivalents brought forward | | 719 | 264 | 264 |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Effect of exchange rate fluctuations | | (39) | 7 | 66 |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
| | Cash and cash equivalents carried forward | | 409 | 548 | 719 |
+----------+-------------------------------------------------------+----+--------------+----------------+---------------+
Upstream Marketing & Communications Inc.
Notes to the Interim Report
For the six months ended 30 June 2009
1 general information
The information for the period ended 30 June 2009 does not constitute statutory
accounts as defined in the Companies Act 2006. The figures for the year ended 31
December 2008 have been extracted from the 2008 statutory financial statements
prepared under International Financial Reporting Standards (IFRS). The auditors'
report on those accounts was unqualified and did not contain a statement under
section 237(2) of the Companies Act 1985. The interim financial statements have
been neither audited nor reviewed by the Group's auditors.
2 BASIS OF PREPARATION
The Company was incorporated as a Corporation in the Cayman Islands which does
not prescribe the adoption of any particular accounting framework. The Board
have resolved that the Company will follow International Financial Reporting
Standards as adopted by the European Union ( IFRSs) when preparing its annual
financial statements.
The principal accounting policies of the Group remain unchanged from those set
out in the Group's 2008 annual report, except for the adoption of IAS1
Presentation of Financial Statements (revised 2007) and IFRS 8 Operating
Segments.
The adoption of IAS 1 (Revised 2007) does not affect the financial position or
profits of the Group, but gives rise to additional disclosures. The measurement
and recognition of the Group's assets, liabilities, income and expenses is
unchanged, however some items that were recognised directly in equity are now
recognised in other comprehensive income, for example translation of foreign
currencies. IAS 1 (Revised 2007) affects the presentation of owner changes in
equity and introduces a 'Statement of Comprehensive Income'.
The adoption of IFRS 8 has not changed the segments that are disclosed in the
interim financial statements.
The accounting policies have been applied consistently throughout the Group for
the purposes of preparation of the consolidated interim report.
3 segmental reporting
(a) By business segment (primary segment):
As defined under IFRS 8, the only material business segment the Group
has is that of marketing and public relations.
(b) By geographical segment (secondary segment):
Under the definitions contained in IFRS 8, the only material geographic
segment that the Group operates in is the Asia- Pacific region.
4 tax EXPENSE/(CREDIT)
+------------------+-----------+-----------+----------+
| | Six | Six | Year |
| | month | month | ended |
| | period | period | 31 |
| | ended | ended | December |
| | 30 | 30 | 2008 |
| | June | June | Audited |
| | 2009 | 2008 | |
| | Unaudited | Unaudited | |
+------------------+-----------+-----------+----------+
| | US$'000 | US$'000 | US$'000 |
+------------------+-----------+-----------+----------+
| | | | |
+------------------+-----------+-----------+----------+
| Current | 55 | 6 | 149 |
| period | | | |
| income | | | |
| tax | | | |
| charge | | | |
+------------------+-----------+-----------+----------+
| Deferred | (9) | (8) | (16) |
| tax | | | |
| credit | | | |
+------------------+-----------+-----------+----------+
| Actual | 46 | (2) | 133 |
| tax | | | |
| expense/(credit) | | | |
+------------------+-----------+-----------+----------+
The relationship between the expected tax expense/(credit) at 17.5% and the
tax expense actually recognised in the income statement can be reconciled as
follows:
+-------------------------+-----------+-----------+----------+
| | Six | Six | Year |
| | month | month | ended |
| | period | period | 31 |
| | ended | ended | December |
| | 30 | 30 | 2008 |
| | June | June | Audited |
| | 2009 | 2008 | |
| | Unaudited | Unaudited | |
+-------------------------+-----------+-----------+----------+
| | US$'000 | US$'000 | US$'000 |
+-------------------------+-----------+-----------+----------+
| | | | |
+-------------------------+-----------+-----------+----------+
| (Loss)/profit | (402) | 331 | 566 |
| for the | | | |
| period before | | | |
| taxation | | | |
+-------------------------+-----------+-----------+----------+
| | | | |
+-------------------------+-----------+-----------+----------+
| Expected | (70) | 58 | 99 |
| tax | | | |
| (credit)/expense | | | |
+-------------------------+-----------+-----------+----------+
| Losses | 116 | (52) | 34 |
| not | | | |
| recognised/(utilised)as | | | |
| deferred tax asset | | | |
+-------------------------+-----------+-----------+----------+
| Actual | 46 | 6 | 133 |
| tax | | | |
| expense | | | |
+-------------------------+-----------+-----------+----------+
5 (LOSS)/EARNINGS per share
The calculation of the basic (loss)/earnings per share is based on the net loss
for the period of (US$448,000) (period ended 30 June 2008 : profit US$333,000;
year ended 31 December 2008 : profit US$433,000) divided by the weighted average
number of shares in issue during the period of 137,401,194 (period ended 30 June
2008 : 136,972,994; year ended 31 December 2008 : 137,187,094).
The diluted earnings per share is based on a weighted average number of shares
in issue of 137,401,194 for the period ended 30 June 2009 (period ended 30 June
2008: 136,972,994; year ended 31 December 2008: 150,864,178). The impact of the
share options and warrant is anti-dilutive for the period ended 30 June 2009.
6 trade and other receivables
+--------------+-----------+-----------+----------+
| | 30 | 30 | 31 |
| | June | June | December |
| | 2009 | 2008 | 2008 |
| | Unaudited | Unaudited | Audited |
+--------------+-----------+-----------+----------+
| | US$'000 | US$'000 | US$'000 |
+--------------+-----------+-----------+----------+
| | | | |
+--------------+-----------+-----------+----------+
| Trade | 1,039 | 2,303 | 1,094 |
| and | | | |
| other | | | |
| receivables, | | | |
| gross | | | |
+--------------+-----------+-----------+----------+
| Impairment | (79) | - | (69) |
| of trade | | | |
| and other | | | |
| receivables | | | |
+--------------+-----------+-----------+----------+
| Trade | 960 | 2,303 | 1,025 |
| and | | | |
| other | | | |
| receivables, | | | |
| net | | | |
+--------------+-----------+-----------+----------+
| | | | |
+--------------+-----------+-----------+----------+
| Other | 5 | 71 | 72 |
| receivables | | | |
+--------------+-----------+-----------+----------+
| Deposits | 199 | 197 | 138 |
| and | | | |
| prepayments | | | |
+--------------+-----------+-----------+----------+
| | 1,164 | 2,571 | 1,235 |
+--------------+-----------+-----------+----------+
7 TRADE AND OTHER PAYABLES
+-----------+-----------+-----------+----------+
| | 30 | 30 | 31 |
| | June | June | December |
| | 2009 | 2008 | 2008 |
| | Unaudited | Unaudited | Audited |
+-----------+-----------+-----------+----------+
| | US$'000 | US$'000 | US$'000 |
+-----------+-----------+-----------+----------+
| | | | |
+-----------+-----------+-----------+----------+
| Trade | 396 | 466 | 425 |
| and | | | |
| other | | | |
| payables | | | |
+-----------+-----------+-----------+----------+
| Other | 685 | 1,166 | 679 |
| payables | | | |
| and | | | |
| accrued | | | |
| charges | | | |
+-----------+-----------+-----------+----------+
| Amounts | - | 101 | - |
| due to | | | |
| directors | | | |
+-----------+-----------+-----------+----------+
| | 1,081 | 1,733 | 1,104 |
+-----------+-----------+-----------+----------+
The fair value of trade and other payables is considered by management to be a
reasonable approximation of their fair value.
8 deferred taxATION
Deferred tax liabilities recognised can be summarised as follows:
+------------------------------------------+------------+-----------+-----------+
| | 30 June | 30 June | 31 |
| | 2009 | 2008 | December |
| | Unaudited | Unaudited | 2008 |
| | | | Audited |
+------------------------------------------+------------+-----------+-----------+
| | US$'000 | US$'000 | US$'000 |
+------------------------------------------+------------+-----------+-----------+
| | | | |
+------------------------------------------+------------+-----------+-----------+
| Non current liabilities | 13 | 30 | 22 |
+------------------------------------------+------------+-----------+-----------+
+-----------+-----------+-----------+----------+
| | 30 | 30 | 31 |
| | June | June | December |
| | 2009 | 2008 | 2008 |
| | Unaudited | Unaudited | Audited |
+-----------+-----------+-----------+----------+
| | US$'000 | US$'000 | US$'000 |
+-----------+-----------+-----------+----------+
| | | | |
+-----------+-----------+-----------+----------+
| At 1 | 22 | 38 | 38 |
| January | | | |
+-----------+-----------+-----------+----------+
| Credited | (9) | (8) | (16) |
| to | | | |
| income | | | |
| statement | | | |
+-----------+-----------+-----------+----------+
| At 30 | 13 | 30 | 22 |
| June | | | |
+-----------+-----------+-----------+----------+
9 share capital
+------------------------------------------+------------+-----------+-----------+
| | 30 June | 30 June | 31 |
| | 2009 | 2008 | December |
| | Unaudited | Unaudited | 2008 |
| | | | Audited |
+------------------------------------------+------------+-----------+-----------+
| | US$'000 | US$'000 | US$'000 |
+------------------------------------------+------------+-----------+-----------+
| Authorised | | | |
+------------------------------------------+------------+-----------+-----------+
| 4,000,000,000 ordinary shares of 0.25p | 18,470 | 18,470 | 18,470 |
+------------------------------------------+------------+-----------+-----------+
| | | | |
+------------------------------------------+------------+-----------+-----------+
| Allotted, issued and fully paid | | | |
+------------------------------------------+------------+-----------+-----------+
| 137,401,194 (30 June 2008:137,401,194, | 636 | 636 | 636 |
| 31 December 2008:137,401,194) ordinary | | | |
| shares of 0.25p | | | |
+------------------------------------------+------------+-----------+-----------+
Share options
The Group has adopted an employee Share Option Scheme in order to incentivise
key management and staff. The fair value of options granted was determined using
Black-Scholes valuation models. Significant inputs into the calculations were as
follows:
* 41% - 47% volatility based on expected share price (ascertained by reference to
historic share prices of both the Company and comparable listed companies)
* share price of between 7p and 2p per share at date of grant of options
* exercise price of between 20p and 2p per share
* a risk free interest rate of 2.78%
* 0% dividend yield
* estimated options lives of three years.
At 30 June 2009, the Group had the following options outstanding:
+------------------+---------------------+----------+---------+------------+----------+
| Date of grant | Dates first | Exercise | | Number | Fair |
| | exercisable | price | Market | | value |
| | | | price | | |
| | | | at | | |
| | | | date | | |
| | | | of | | |
| | | | issue | | |
+------------------+---------------------+----------+---------+------------+----------+
| | | | | | |
+------------------+---------------------+----------+---------+------------+----------+
| 5 July 2007 | 3 years from date | 20p | 7p | 6,750,000 | 0.311p |
| | of grant | | | | |
+------------------+---------------------+----------+---------+------------+----------+
| 5 July 2007 | 3 years from date | 7p | 7p | 6,677,084 | 2.159p |
| | of grant | | | | |
+------------------+---------------------+----------+---------+------------+----------+
| 19 December 2007 | 3 years from date | 2p | 2p | 250,000 | 0.617p |
| | of grant | | | | |
+------------------+---------------------+----------+---------+------------+----------+
| | | | | 13,677,084 | |
+------------------+---------------------+----------+---------+------------+----------+
During the period, employee share-based expense of US$43,031 (period ended 30
June 2008 : US$54,175, year ended 31 December 2008:US$103,000) has been included
in the income statement. No liabilities were recognized due to share-based
payment transactions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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