City AM reports five-fold increase in losses

 


 London financial freesheet posts pre-tax loss of £624,917 in 2014, with company’s five directors banking almost £540,000

London financial freesheet City report a more than five-fold increase in pre-tax losses last year, while company directors banked almost £540,000.

Despite the slump, the company’s five directors, which include co-founders Lawson Muncaster and Jens Torpe, took home £539,000 between them.
The un-named highest paid director received £279,866.
Three un-named directors have 3,200 share options, with an exercise price of £6.09 per share, that can be exercised on the “sale of the company, upon flotation of the company or four years after the grant date of 23 August 2010”.

The company pointed out that at an operating level the loss was £246,000, slightly less than in 2013, and said the business had been hit by a severe downturn in print advertising in the first quarter of 2014.

“The results for 2014 were heavily impacted by the dramatic decline in print advertising during the first three months of the year, which saw the company lose £400,000,” the company said. “Market conditions improved from April and the company decided to move ahead with the planned major investment in digital. [This] has resulted in a tripling of visitors during the past 12 months, and a major increase in digital revenues.”

Total revenues at the publisher, which launched two new magazines this year, fell by 7.4% from £9.05m to £8.38m between 2013 and 2014. Net debt broadened from £7.8m to £8.47m.
The company has £3.6m owning to creditors due within one year, and £6.6m due within five years