24th Dec 2021 09:53
(Alliance News) - DCD Media PLC on Friday reported an increase in interim profit despite a fall in revenue, as it completed the sale of operating subsidiary NBD Holdings Ltd to 108 Media Ltd.
The independent television production and distribution company reported a pretax profit of GBP262,000 in the six months that ended September 30, up 9.2% from GBP240,000 a year before.
Revenue of the London-headquartered company amounted to GBP5.6 million, down 3.1% from GBP5.8 million a year ago.
DCD Media explained that the decline in revenue was consistent with the first-half performance last year and in line with its expectations.
The growth in profit was attributed to a 6.4% decrease in the costs of sales to GBP4.4 million from GBP4.7 million.
DCD Media pays no dividend.
DCD Media said the sale of subsidiary NBD Holdings including DCD Rights - substantially all of its existing business, assets and trade liabilities - was completed on December 10.
The disposal is expected to provide the necessary support that will allow DCD Rights to grow.
"The shareholders have taken the opportunity presented by global distributor and funder 108 Media to divest themselves of DCD Rights and its related entities after the period-end in a sale to 108 Media Ltd, announced on November 16 and approved by shareholders on December 2," the company said.
Following the completion of the sale, the company is considering the best way to maximise shareholder value, it said. This could involve returning a proportion of the cash to shareholders, while also looking at alternative acquisitions as an AIM cash shell.
DCD Media said DCD Rights and its related entities are well-positioned to deliver a strong performance in the future supported by its new owners in 108 Media.
"The board believes the immediate horizon continues to look promising for DCD Rights and its associated businesses and in the mid to long-term. The sale to 108 Media will be a catalyst for delivering deeper funding arrangements to support the continued growth being driven by the DCD Rights' senior management team," Executive Chair David Craven commented.
Shares in DCD Media was untraded on Friday morning in London, last quoted a 185.00 pence on Thursday.
By Abby Amoakuh; [email protected]
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