17th Sep 2008 07:00
Motive Television PLC
("Motive" or "the Group")
Half-yearly Report
For the 6 months ended 30 June 2008
The Board of Motive, the AIM-quoted media investment company specialising in television rights and production, is pleased to announce its half-yearly results for the period ended 30 June 2008.
HIGHLIGHTS
Turnover up 86% to £2.71m (2007: £1.46m)
Gross profit up 37% to £491k (2007: £358k)
Cash at bank £1.12m
Five operating companies now acquired
The Group raised £668,350 by the placing of 95,478,511 shares at 0.7p per share
Loss of £515,142 reflects rapid increase in investment in programme development (2007:£184,550)
Australian television production and distribution group Beyond International acquired a 10% stake in Motive.
Commenting on the results, Motive Chairman, Mick Pilsworth, said:
"The period under review saw continued growth for Motive as the Company amassed a considerable slate of high quality new development projects. By turnover Motive has moved further up the rankings in key trade title, Televisual's "Top 100 Indies" - we now stand at 57, 14 places higher than last year."
Contact:Motive Television plc T: 020 7428 2004
Mick Pilsworth
Dowgate Capital Advisers T: 020 7492 4777
Liam Murray
Bishopsgate Communications Ltd T: 020 7562 3350
Jenni Herbert/ Nick Farmer
CHAIRMAN'S STATEMENT
OVERVIEW
Motive Television now controls 5 operating production businesses in London, Manchester and Dublin, and supplies television programming to the BBC, ITV, Channel 4, Channel 5, BSkyB, MTV, The Comedy Channel, Crime and Investigation Network, RTE, TV3 and Setanta Sports. The Group has also issued 3 retail DVD's and sells its programmes overseas.
Motive completed one corporate transaction during the period, acquiring a 50% interest in Rumble Productions Ltd, (trading as Rumble TV). Whilst valuations for independent production companies have now fallen back to more realistic levels, potential sellers appear to be reluctant to move forward with transactions and therefore deal progression is at a slower than anticipated rate. . We had intended to acquire a drama production company during the period, and were in negotiations with four target companies, but their lack of earnings visibility caused us to withdraw.
All of our operating companies made good progress during the period.
Brown Eyed Boy was in production on "How Not To Live Your Life", a new comedy series for BBC3, starring Dan Clark; a new comedy pilot "Hoodies" for Paramount Comedy Channel; and a comedy pilot for Channel 4 called "Jesus Boy and Goatherd", which was very well-received.. Brown Eyed Boy was our second acquisition and is pleasing to see it doing so well once again making a positive contribution to the Group. Brown Eyed Boy has sold the format rights of "How Not To Live Your Life" to U.S. network CBS, and has also been commissioned by MTV to create a new comedy series, "Get Rich", which is the first TV comedy series to be recorded entirely on mobile 'phones. Discussions are ongoing with Nokia about extending this concept.
Luminous Productions co-produced (with Motive Television in Dublin) a major entertainment pilot for RTE, "The Byrne Ultimatum", presented by stand-up comedian Jason Byrne; and a pilot programme for ITV2, "Natasha Hamilton: Whole Again", featuring one of the members of pop group "Atomic Kitten". Luminous is in advanced talks on two new projects for the BBC.
Motive Television (Dublin) was in production on "The Byrne Ultimatum", an entertainment pilot, "No Place Like Home" (a multi-cultural travel series) and "Summer in the Sun" (an observational documentary series following groups of Irish students on working holidays in the United States), all for RTE. Motive Television (Dublin) (in association with Asgard Media) also produced 10 live Gaelic Athletic Association (GAA) Championship matches for TV3, and was in production on a major history of the GAA for Setanta Sports, "Part of What We Are". All of the programmes so far transmitted were well-received and we are confident that this success will lead to further opportunities. Motive Television (Dublin) also received a Gold Disc for retail sales of its DVD "The Sound of Sunday" in Ireland.
Rumble Productions was in early development on a number of projects, one of which, a one-off documentary to be presented by "Top Gear" presenter Richard Hammond, has been commissioned by the BBC since the end of the period.
Scarlet Television had an extremely busy first quarter, producing almost £1m-worth of programming and making its first contribution to Group EBITDA. Among its productions during the period were "Britain's Biggest Babies" for ITV1; "50 Greatest TV Endings", presented by Cilla Black; "50 Ways to Leave your TV Lover", presented by Fern Britton; and "Britney: Speared by the Paps", all for Sky1; and "Making a Monster" for the Crime and Investigation Network. Scarlet Television is currently in advanced talks with a terrestrial UK broadcaster for a major commission.
Whilst our core corporate costs have been contained we have accelerated investment in development of new projects, and because we write off these costs as they are incurred, the Group's losses have increased year-on-year. However, we expect these losses to create long-term value for the group when programmes arising from this investment in development come to fruition.
SUMMARY
Whilst the economic downturn may slow the rate of growth of the Group, Motive is still currently growing and has amassed a considerable slate of high-quality new development projects. Since 2007 Motive has risen from 71st position to 57th position in the trade magazine Televisual's "Top 100 Indies" survey, as ranked by turnover.
We are expecting to benefit from any fallout from the downturn, and we continually look for opportunities among the smaller production companies in the sector who may be in need of funding for development or growth. Being small, focussed and fast-moving, we can act quickly when opportunities do arise.
M J Pilsworth
Chairman
CONSOLIDATED INCOME STATEMENT
for the six months ended 30 June 2008
|
6 months to |
6 months to |
Year to |
|||
|
30 June |
30 June |
31 December |
|||
|
2008 |
2007 |
2007 |
|||
|
unaudited |
unaudited |
audited |
|||
|
£ |
£ |
£ |
|||
|
Continuing operations |
|||||
|
Revenue |
2,714,680 |
1,462,483 |
3,135,363 |
||
|
Cost of sales |
(2,223,763) |
(1,104,314) |
(2,383,970) |
||
|
|
|
|
|||
|
Gross Profit |
490,917 |
358,169 |
751,393 |
||
|
Administrative expenses |
(1,011,481) |
(554,916) |
(1,378,306) |
||
|
Operating loss |
(520,564) |
(196,747) |
(626,913) |
||
|
Financial income |
14,657 |
16,198 |
33,238 |
||
|
Financial costs |
(1,281) |
(1,903) |
(1,903) |
||
|
Finance costs - net |
13,376 |
14,295 |
31,335 |
||
|
Loss before tax |
(507,188) |
(182,452) |
(595,578) |
||
|
Tax expense |
(7,954) |
(2,098) |
(6,000) |
||
|
|
|
|
|||
|
Loss for the period |
(515,142) |
(184,550) |
(601,578) |
||
|
Attributable to: |
|||||
|
Equity holders of the company |
(515,142) |
(184,550) |
(597,284) |
||
|
Minority interests |
- |
- |
(4,294) |
||
|
(515,142) |
(184,550) |
(601,578) |
|||
|
Loss per share - basic and diluted |
|||||
|
equity holders |
(.23)p |
(.17)p |
(.51)p |
CONSOLIDATED BALANCE SHEET
as at 30 June 2008
|
30 June |
30 June |
31 December |
||||
|
2008 |
2007 |
2007 |
||||
|
unaudited |
unaudited |
audited |
||||
|
£ |
£ |
£ |
||||
|
Non-current assets |
||||||
|
Goodwill |
660,183 |
613,394 |
660,183 |
|||
|
Plant and equipment |
58,652 |
39,261 |
57,170 |
|||
|
Deferred tax asset |
156,307 |
45,261 |
164,261 |
|||
|
Total non-current assets |
875,142 |
697,916 |
881,614 |
|||
|
Current assets |
||||||
|
Trade receivables |
892,504 |
196,094 |
454,855 |
|||
|
Cash at bank |
1,115,858 |
1,463,612 |
1,073,237 |
|||
|
Total current assets |
2,008,362 |
1,659,706 |
1,528,092 |
|||
|
Total assets |
2,883,504 |
2,357,622 |
2,409,706 |
|||
|
Equity |
||||||
|
Issued share capital |
1,267,958 |
1,086,066 |
1,172,480 |
|||
|
Share Premium |
1,919,717 |
895,428 |
1,378,913 |
|||
|
Merger reserve |
155,467 |
155,467 |
155,467 |
|||
|
Retained Earnings |
(1,597,338) |
(723,624) |
(1,113,858) |
|||
|
|
|
|
||||
|
1,745,804 |
1,413,337 |
1,593,002 |
||||
|
Current liabilities |
||||||
|
Trade and other payables |
1,137,700 |
944,285 |
784,128 |
|||
|
Bank overdraft |
- |
- |
32,576 |
|||
|
Total current liabilities |
1,137,700 |
944,285 |
816,704 |
|||
|
Total equity and liabilities |
2,883,504 |
2,357,622 |
2,409,706 |
|||
CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 June 2008
|
6 months to |
6 months to |
Year to |
|||
|
30 June |
30 June |
31 December |
|||
|
2008 |
2007 |
2007 |
|||
|
unaudited |
unaudited |
audited |
|||
|
£ |
£ |
£ |
|||
|
Cash flows from operating activities |
|||||
|
Cash (absorbed by) / generated from operations |
(561,340) |
410,371 |
(559,597) |
||
|
Net interest received |
13,376 |
14,295 |
31,335 |
||
|
Taxation received |
- |
3,902 |
- |
||
|
Net cash (absorbed by) / generated from operating activities |
(547,964) |
428,568 |
(528,262) |
||
|
Cash flows from investing activities |
|||||
|
Payments to acquire subsidiary |
- |
- |
(36,188) |
||
|
Cash acquired with subsidiary |
- |
- |
12,020 |
||
|
- |
- |
(24,168) |
|||
|
Payments to acquire tangible fixed assets |
(13,121) |
(24,650) |
(36,502) |
||
|
Net cash used in investing activities |
(13,121) |
(24,650) |
(60,670) |
||
|
Cash flows from financing activities |
|||||
|
Proceeds from issue of shares (net of costs) |
636,282 |
- |
569,899 |
||
|
Net cash from financing activities |
636,282 |
- |
569,899 |
||
|
Net increase / (decrease) in cash and bank balances |
75,197 |
403,918 |
(19,033) |
||
|
Cash at bank and bank overdrafts at beginning of |
|||||
|
Period |
1,040,661 |
1,059,694 |
1,059,694 |
||
|
Cash at bank and bank overdrafts at end of |
|||||
|
Period |
1,115,858 |
1,463,612 |
1,040,661 |
||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the period ended 30 June 2008
|
Share |
Share |
Merger |
Retained |
Total |
Minority |
Total |
|
|
Capital |
Premium |
reserve |
Earnings |
interests |
Equity |
||
|
unaudited |
unaudited |
unaudited |
unaudited |
unaudited |
unaudited |
unaudited |
|
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
|
Balance at 1 January 2007 |
1,086,066 |
895,428 |
155,467 |
(551,574) |
1,585,387 |
- |
1,585,387 |
|
Loss for six months to 30 June |
- |
- |
- |
(184,550) |
(184,550) |
- |
(184,550) |
|
Cost of share based awards |
- |
- |
- |
12,500 |
12,500 |
- |
12,500 |
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2007 |
1,086,066 |
895,428 |
155,467 |
(723,624) |
1,413,337 |
- |
1,413,337 |
|
Loss for six months to 31 December |
- |
- |
- |
(412,734) |
(412,734) |
(4,294) |
(417,028) |
|
Minority interest on acquisition |
- |
- |
- |
- |
- |
4,294 |
4,294 |
|
Cost of share based awards |
- |
- |
- |
22,500 |
22,500 |
- |
22,500 |
|
Issue of shares for cash (net of costs) |
86,414 |
483,485 |
- |
- |
569,899 |
- |
569,899 |
|
Balance at 31 December 2007 |
1,172,480 |
1,378,913 |
155,467 |
(1,113,858) |
1,593,002 |
- |
1,593,002 |
|
Loss for period to 30 June |
- |
- |
- |
(515,142) |
(515,142) |
- |
(515,142) |
|
Cost of share based awards |
- |
- |
- |
31,662 |
31,662 |
- |
31,662 |
|
Issue of shares for cash (net of costs) |
95,478 |
540,804 |
- |
- |
636,282 |
- |
636,282 |
|
Balance at 30 June 2008 |
1,267,958 |
1,919,717 |
155,467 |
(1,597,338) |
1,745,804 |
- |
1,745,804 |
1 GENERAL INFORMATION
Motive Television Plc (the "Company") is a company domiciled in England whose registered office address is Windsor House, Barnett Way, Barnwood, Gloucester, GL4 3RT. The condensed consolidated half-yearly financial statements of the Company for the six months ended 30 June 2008 comprise the Company and its subsidiaries (together referred to as "the Group").
The condensed consolidated half-yearly financial statements do not constitute statutory accounts as defined in Section 240 of the Companies Act 1985.
The financial information for the year ended 31 December 2007 has been extracted from the statutory accounts. The auditors' report on the statutory accounts was unqualified and did not contain a statement under Section 237 of the Companies Act 1985. A copy of those financial statements has been filed with the Registrar of Companies.
The condensed consolidated half-yearly financial statements were authorised for issue on 16th September 2008.
2 SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting
The condensed consolidated financial statements are unaudited and have been prepared on the historical cost basis in accordance with IFRS adopted by the EU using the same accounting policies and methods of computation as were used in the annual financial statements for the year ended 31 December 2007. The condensed half-yearly financial statements do not include all the information required for full annual financial statements and hence cannot be construed as in full compliance with IFRS.
3 LOSS PER SHARE
The loss per share is based on a loss for the period of £515,142 (six months ended 30 June 2007: £184,550, year ended 31 December 2007: £597,284) and the weighted average of ordinary shares in issue for the period of 222,192,386 (six months ended 30 June 2007: 108,606,667, year ended 31 December 2007: 117,865,340).
4 NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
|
6 months to |
6 months to |
Year to |
|||
|
30 June |
30 June |
31 December |
|||
|
2008 |
2007 |
2007 |
|||
|
unaudited |
unaudited |
audited |
|||
|
£ |
£ |
£ |
|||
|
Operating loss |
(520,564) |
(196,747) |
(626,913) |
||
|
Depreciation |
11,639 |
12,757 |
24,709 |
||
|
Increase in receivables |
(437,649) |
(115,483) |
(234,192) |
||
|
Increase in payables |
353,572 |
697,344 |
241,799 |
||
|
Share based payments |
31,662 |
12,500 |
35,000 |
||
|
Net cash (absorbed by) / generated from operating activities |
(561,340) |
410,371 |
(559,597) |
||
Related Shares:
Motive Television Plc