For immediate release: April 30 2008
Hecta Media Inc (AIM: HCTA), the web consolidator, today announces its interim unaudited accounts for the period beginning with its incorporation and ended 30th April 2008.
CHAIRMAN’S STATEMENT
Introduction
I am pleased to report to shareholders the first financial statements for the period ended 30th April 2008 since the Company’s incorporation on 22nd June 2007 and its admission onto AIM on 14th November 2007.
Investment strategy
As set out in our admission document, our investment strategy remains focused on primarily investing in profitable websites and domain name portfolios – and then better monetising them through the use of click-through advertising programmes and other online advertising-related techniques combined with reduced centralised overheads.
Investment portfolio
During the period under review, as already reported to shareholders on 13th March 2008, Hecta completed its first set of acquisitions – namely, a popular blog, www.tutorialblog.org, and a series of domain portfolios containing approximately 60,000 names, one of which included an option to buy a further two portfolios dependent on the performance of the original. I am pleased to say that given the strong performance of that first portfolio, we subsequently then exercised this option – as announced, post period, on 6th June 2008. As a result, we now continue to closely monitor the assets in our portfolio and look to improve them in line with our investment and development strategy.
Financial review
As can be seen from the figures below, there was little time within the period under review for the revenue potential of the March acquisitions to be have any impact. We are confident, though, that their revenue potential will be better reflected in the next set of figures.
Likewise, operational expenses – including those associated to the AIM admission – were in line with budget for the period standing at £321,000. Consequently, the Company had £2,686,000 in cash or cash equivalents at the period end – it having invested £1,172,000 of the £4,414,949 originally raised pre-IPO via a placing at 4p.
Funding
As already mentioned, the Company successfully raised approximately £4.4 million via a placing at 4p prior to admission. As the Company looks to expand the breadth of its investment portfolio going forward, the Board may contemplate the raising of additional funds in the future.
Outlook
The last year has been an exciting period for Hecta, it having effectively formed the Company, raised initial capital, was admitted to AIM, and made its first series of acquisitions.
Going forward, we foresee equally active times, with the Company looking to potentially expand its portfolio management team so that it can continue growing the value of Hecta’s existing portfolio whilst at the same time continuing to make further prudent acquisitions in line with its acquisition strategy. Indeed, we see the tightening economic conditions as potentially aiding us in achieving our acquisition strategy.
Frederick Krueger,
Executive Chairman
25 July 2008