Interim Results Presentation

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Interim Results Presentation September 2006
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Todays Agenda

• 2006 Interim Results Review
• Business Review
• Future Prospects

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2006 Overview

• Improved financial performance
• Focus on improving the quality of core recurring
  revenues
• Acquisitions performing well
• Ideal Music fully integrated
• MusicStyling.com exceeding expectations
• Refinancing completed following sale and
  leaseback of head office

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Financial Highlights

• Half Year Turnover
• Recurring 2.4m
• Other 1.5m
• Total 3.9m
• Operating Profit 91k
• Adjusted EBITDA 868k

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2006 Interim Results
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Consolidated Balance Sheet
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Net Creditors
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Business Review
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Trading Highlights

• Major contract win with
• 500 new store installs
• 700 stores on service by the end of 2006
• Possible 100 store upgrade to AV in 2007
• MusicStyling.com exceeding expectations
• Circa 650 music zones in 180 luxury hotels
  worldwide
• New contract win with
• Now installing in all 24

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Trading Highlights

• Improving distribution costs
• Growing take up of broadband delivery systems
• New supply terms secured with Alcas
• Contract renewals and service upgrades with

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Refinancing

• Sale and leaseback of Chesterfield offices
• 1.6m (pre expenses)
• 1.2m used to reduce debt
• 0.4m (less expenses) to working capital
• Book value of asset 980k exceptional profit c.
  0.5m
• 10 year lease at initial rent of 114,500 p.a.
• New Banking Facilities
• New banking facilities completed
• Ability to borrow at below cost of capital
• Well placed for further acquisitions
• Licensing
• Historic PPL MCPS outstandings settled

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Near Term Outlook

• PPL Performance Licensing Costs under review
• Retail and leisure markets remain challenging
• Increasing importance of differentiation
• Increased Sales Resources
• 2 experienced sales consultants appointed
• 2 sales graduates appointed
• 1 additional Music Styling consultant appointed
• Growing order book and pipeline
• Confident of meeting market expectations for the
  year

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Near Term Outlook

• Imagesound Activity

2 stores networked August
Installing 3 stores September
3 stores pilot concluding September
AV Pilot installing in September
Tender expected in September
Paris Restaurant installed in September
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Near Term Outlook

• Music Styling Activity

First install to new group in October - requiring
16 zones of bespoke music
Pitching for preferred supplier status -
expected September
New client first install for Amman - installing
now
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Longer Term Outlook

• Market opportunity remains attractive
• Continue to improve operational gearing
• Adding new subscribers to existing systems
• Large number of outlets still not using a third
  party provider
• Fragmented sector offers opportunities for
  further consolidation

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Competitor Analysis UK Suppliers
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Directors
Derek Mapp Executive Chairman Founder of
Tom Cobleigh plc Leapfrog Chairman of
Staffline plc and senior NED at Informa
plc Michael Clark Managing Director
Imagesound founder Ken Pratt Finance
Director Former FD and co-Director of Tom
Cobleigh plc and Eton Group
Limited Richard Gregory Non-exec
Director Former Managing Director Yorkshire
Television Non-exec Director of Yorkshire
Clydesdale Banks and National Australia Group
Europe Limited Charles Fairbairn Non-exec
Director Previously ACI plc Finance
Director Previously Pearson plc David
Clayton-Smith Non-exec Director Management
Consultant 12 yrs retail experience with
Halfords, Boots, Do It All Group Marketing
Director of Courage