2nd Jun 2016 15:32
LONDON (Alliance News) - Independent television production and distribution company DCD Media PLC on Thursday said it is confident it has a stable and sustainable business as it reported a widened pretax loss for 2015.
DCD last week announced it would cease development activity in its production division and focus production efforts on just its two key franchises, following a review of its production business due to challenging trading conditions.
DCD Media said Thursday it is "greatly disappointed" its production entities have not proved capable of scaling or reaching sustainable commercial levels of output. Whilst it has invested heavily in the division over the years, it has had to take the difficult decision to curtail development work.
It will now focus on its two franchises 'Penn and Teller: Fool Us in Vegas' and 'Got What it Takes?'.
The company reported a pretax loss of GBP2.4 million for 2015, doubling from a pretax loss of GBP1.2 million in 2014, as a rise in revenue to GBP11.1 million from GBP9.7 million was offset by higher cost of sales and a GBP1.8 million impairment of goodwill and trade names.
"This has been another tough year for the production division, and we have reflected and analysed the commercial challenges which face small independent TV production companies in the UK. DCD Media has never benefited from the large-scale operations which thrive in the marketplace due to their economies of scale that enable large groups of creatives to focus on what the broadcaster wants," said Executive Chairman David Craven in a statement.
"The board is very confident we can see further expansion from the rights division in the new financial year. There is a great deal of work to be done, not least of which involves the continued engagement of new funding sources to support the buying process. However, we look forward to the rights business driving sustained growth in the coming years," Craven added.
Shares in DCD were down 1.8% at 250.50 pence Thursday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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