LONDON (ShareCast) - (ShareCast News) - Catalyst Media Group (CMG), a business administrative services company, has compensated for a loss at the year end through its profitable investment in Satellite Information Services (SIS).


The group is a 20.54% shareholder of SIS, a supplier of products and services to the online and retail betting markets.

After taking account of CMG's share in the profits of SIS for its year ended 31 March 2016 of £3.4m, the group made a loss before tax of £0.06m for the year ended 30 June 2016, down from a £1.5m profit in 2015.

The company attributed the loss to an impairment charge of £3m and a transitional adjustment of £0.4m.

Net assets at year end were £24.9m slightly below the £25m recorded at the previous year end.

Loss per share was 0.18p, compared to 5.82p in 2015.

For SIS, revenues for the year ended 31 march 2016 fell to £227.9m from £229m in the previous period. Out of the total, £209.3m was derived from Betting Services and £18.6m from SIS LIVE Services.

Profit after tax and exceptional items fell to £16.6m from £21.4m in 2015.

By the year end it had a 'substantially' increased cash position of £62.2m from £21.9m in 2015.

It set a dividend of £20m in July 2016, of which £4.1m was received by CMG. CMG used £2.5m of the proceeds to purchase 3.4m ordinary shares in the market.

Looking ahead, the board expects SIS' profitability to decline from 2017 onwards as the margins from betting activities reflect the new arrangements.

CMG's share price fell 1.51% to 77.10p at the close on Tuesday.

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