Grand Vision Media Holdings #GVMH – Audited Final Results March 1, 2022 – Posted in: GVMH – Tags: grand vision media holdings, gvmh
Grand Vision Media Holdings plc announces its audited final results for the year ended 31 December 2020. These are presented below and are available (along with the Company’s 2020 Annual Report) to download on the Company’s website at https://www.gvmh.co.uk/tag/financial-information/.
The Company is working towards finalising its interim results for the six-month period ended 30 June 2021 and expects to announce these in the next few weeks. At this time, it will seek to lift the suspension in trading in the Company’s shares.
The audited results for the year ended 31 December 2021 are expected to be released by 30 June 2022.
For more information contact:
| Grand Vision Media Holdings plc Ajay Rajpal, Director |
gvmh.co.uk/ Tel: +44 (0) 20 7866 2145 or info@gvmh.co.uk |
| Alfred Henry Corporate Finance Ltd Nick Michaels / Jon Isaacs |
Tel: +44 (0) 203 772 0021 or jisaacs@alfredhenry.com |
GRAND VISION MEDIA HOLDINGS PLC
DIRECTORS’ REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
COMPANY INFORMATION
Directors and Advisers
| Directors: | Ajay Kumar Rajpal – Non-Executive Director Jonathan Yat Pang Lo – Chief Executive Officer Frederick Chua Oon Kian (appointed 20 January 2020) |
| Company Number:
Company Secretary |
10028625
MSP Corporate Services Limited |
| Registered Address: | Finsgate 5-7 Cranwood Street London EC2M 7LD |
| Principal Banker: | Metro Bank 1 Southampton Road London WC1B 5HA |
| Auditors: | Jeffreys Henry LLP Finsgate 5-7 Cranwood Street London EC1V 9EE |
| Legal Adviser to the Company: | Bracher Rawlins 77 Kingsway London WC2B 6SR |
| Registrar: | SLC Registrars Limited Ashley Park House 42-50 Hersham Road Walton-on-Thames Surrey KT12 1RZ |
GRAND VISION MEDIA HOLDINGS PLC
CONTENTS
| Strategic review report | 4 | |
| Directors’ report | 9 | |
| Independent auditors’ report | 14 | |
| Statement of comprehensive income | 20 | |
| Statement of financial position | 21 | |
| Statement of changes in equity | 23 | |
| Statement of cash flows | 24 | |
| Notes to the financial statements | 25 | |
STRATEGIC REVIEW REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The CEO Report
The onset of the COVID-19 pandemic in early 2020 has significantly adversely affected the Group’s performance for the year. OOH revenues were severely impacted by the closure of cinemas across China, and the closure of businesses in Hong Kong, together with the travel restrictions, adversely affected digital marketing revenues. There was a high degree of uncertainty throughout the period, with a resulting loss in overall business confidence. Certain new projects originally planned for the year were postponed and will resume when pandemic restrictions are lifted. These include the introduction of interactive and 3D panels into Singapore.
The disruption has lasted for the majority of the period under review, and this is reflected in the poor results reported. In order to mitigate the position, the Group has increased its focus on eCommerce marketing and services, by leveraging its contact base and international business network. These services are predominantly targeted at suppliers of medical equipment, who have experienced a significant increase in activity levels as a result of the pandemic.
Summary of Trading Results
Total revenue for the year was HK$5,827K [2019: HK$12,034K], a decline of 52% compared to the prior year. Although the Group has been working on a number of initiatives with suppliers of medical equipment throughout the period, the impact of the majority of these is only expected to come to fruition in 2022 onwards.
The Group total comprehensive loss for the year was HK$9,793K [2019: HK$14,957K]. This was as a direct result of the reduction is revenues across the Group and the major disruption caused by the pandemic. The Group has managed to achieve cost savings as a result of space consolidation and headcount reductions, and has taken advantage of Government fiscal support aimed at helping businesses through the pandemic. The Group has also recognised a provision against trade receivables of HK$2,740K given the material uncertainty in the region and the ongoing impact of the pandemic.
Given the material uncertainty and disruption faced by the Group, the Company has fully impaired its investment in GVC Holdings Limited, and the intercompany balances owed by Group entities, resulting in charges of HK$114,572K and HK$18,512K respectively in the Company profit and loss account. It is hoped that these impairments will be reviewed again when the business and trading environment returns to normal, and there is more visibility on the future outlook.
The Group has 180 panels [2019: 200] in cinemas across China, and is evaluating other technologies to promote OOH advertising in the cinema space as well as other locations.
Cash in hand at the end of the year was HK$855K. The Group continues to manage its cash within its available resources.
Outlook
COVID-19 has had a significant adverse effect on the Group’s performance in 2020. Sales for 2021 will again be below historic levels as a result of the ongoing travel disruption and intermittent business closures across the region. Cinemas in China are still operating at reduced capacity., Unlike many other parts of the world, Hong Kong is following a zero COVID policy, which has resulted in more business disruption and closures than would otherwise be seen elsewhere.
It is uncertain as to when trading conditions will return to normal, but the disruption to the Group was experienced throughout 2021, and is expected to last well into 2022.