2nd Jun 2014 08:50
LONDON (Alliance News) - DQ Entertainment PLC Monday reported higher profit for its last financial year as revenue was lifted by distribution deals as the company tapped new markets in Latin America, Africa, South East Asia and the Middle East.
However, the company also reported provisions for bad debts, a smaller order book, and said it won't pay a dividend due to its negative cash position.
The animation, gaming, live action, and entertainment production and distribution company reported a pretax profit of INR456 million in the 12 months to March 31, up from INR427 million a year earlier, as revenue rose to INR2.40 billion, from INR2.29 billion.
The company's production revenue rose 3.0% to INR1.87 billion, while distribution revenue rose 10.1% to INR523 million.
However, its order book fell to INR5.63 billion by the end of the year, from INR6.59 billion a year earlier.
It also made a INR230 million provision for bad and doubtful debts, but managed to partially offset by cutting personnel costs by INR156 million, or 18%.
It said it won't pay a dividend for the year because its cash position was negative INR844 million on March 31.
"The board is reviewing the company's dividend policy and whilst it is not recommending a dividend at this time it will seek to pay dividends to shareholders as soon as financially and commercially viable," it said.
"The US surely has moved forward from subdued conditions while Europe is still under recessionary conditions, though production improvements have been seen in France, Germany, UK and Italy. We remain optimistic with US and Canada leading the growth path for TV and animated feature film markets which your company is taking full advantage of," the company said in an outlook statement.
DQ Entertainment shares were down 18.2% at 12.75 pence Monday morning, the biggest decline on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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