1st Jun 2012 11:55
1 June 2012 Talent Group plc ("Talent" or the "Company" or the "Group) Unaudited interim results for the six month period ended 31 March 2012
CHAIRMAN'S STATEMENT
I am pleased to present the Group's results for the six months ended 31 March 2012.
Against a period of continuing economic uncertainty, Group turnover for the period increased to £706,000 (2011 - £472,000), on which gross profit was £257,000 (2011 - £287,000). The increase in turnover, and the decrease in profit margin, reflects greater production activity in the period (of which I shall say more below) which generates lower, but steadier, margins than development work. Profit both before and after tax for the period was £9,000 (2011 - profit before tax £5,000; profit after tax £16,000). Earnings per share were 0.041p (2011 - 0.09p).
Both our trading companies were engaged in production activity during the six months under review. Talent Television was completing production of My Phone Genie, a 26 part children's series. As previously reported, this is an international co-production with Moonscoop of France, Telegael in Ireland, and ZDF of Germany. The first 13 episodes were successfully aired on ITV from January to March and the remaining episodes are expected to be broadcast later in the year. ZDF is also expected to start transmitting the show from October, whereupon we expect to start generating further revenues from overseas broadcast sales and merchandising and licensing activities.
Talent South completed its second eight-part series on notorious murders for the Crime and Investigation channel, which were delivered in March for anticipated transmission in September. It also completed a documentary on The Richardsons, for the same channel, and produced a further two instructional DVDs. Further such commissions are anticipated, whilst a range of new programme ideas has been developed and is currently being pitched to potential broadcasters.
The Group's first ever feature film, Outside Bet, was finalised during the half year and went on general release at the end of April. Whilst it is fair to say it received mixed reviews, we remain confident that it will produce a return for investors, and hence further income for the Group. Whilst producing Outside Bet has been a steep learning curve, involvement in feature films gives us another string to our bow, and we have already been approached regarding other feature film projects. Certain of these are under active consideration although, as with Outside Bet, our involvement will be as a producer, not investor, in the films.
In addition to the feature films, both Talent Television and Talent South have a number of new television programmes in development, and remain optimistic that current projects will be re-commissioned.
Terry BateChairman1 June 2012FURTHER ENQUIRIESTalent Group plcTony Humphreys (Managing Director) 020 7415 7114 Merchant Securities LimitedSimon Clements/Virginia Bull 020 7628 2200
CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2012
Six months Six months ended ended Year ended 31-Mar 31-Mar 30-Sep 2012 2011 2011 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Revenue 706 472 874Cost of sales (449) (185) (358) Gross profit 257 287 516 Administrative expenses (221) (255) (441)Finance income - - -Finance costs (27) (27) (55) Profit before taxation 9 5 20 Income tax expense - prior year refund - 11 11- current year - - -Profit for the period 9 16 31 Basic earnings per share (pence) 0.041p 0.09p 0.165p
Diluted earnings per share (pence) 0.039p 0.08p 0.156p
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2011
31-Mar 31-Mar 30-Sep 2012 2011 2011 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 £'000 £'000 £'000 Assets Non-current AssetsGoodwill 1,082 1,082 1,082Other intangible assets - 22 -Property, plant &equipment 18 27 21 1,100 1,131 1,103 Current assets Inventories 78 60 55Trade receivables 505 120 248Cash & cash equivalents 34 5 29 617 185 332 Total assets 1,717 1,316 1,435 Equity and liabilities EquityShare capital 6,368 6,342 6,368Share premium 11,822 11,759 11,822Share option reserve 144 136 141Retained earnings (18,322) (18,346) (18,331) Total equity 12 (109) - Current liabilitiesBank overdraft - 30 -Borrowings 862 862 862Trade & other payables 843 533 573 Total liabilities 1,705 1,425 1,435 Total equity &liabilities 1,717 1,316 1,435
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2012
Six months Six months ended ended Year ended 31-Mar 31-Mar 30-Sep 2012 2011 2011 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000Cash flows from operatingactivities Profit before taxation 9 5 20Adjustments for:Depreciation of tangible assets 4 4 12Amortisation of intangible assets - 3 25Share option reserve 3 3 8Interest received - - -Interest paid 27 27 55 43 42 120 (Increase) in trade and otherreceivables (257) (78) (257)(Increase) in inventories (23) (54) (49)Increase in trade and otherpayables 270 36 127 33 (54) (59) Tax refund received - 11 11Tax paid - - - Net cash flows from operatingactivities 33 (43) (48) Cash flows from investingactivitiesPurchase of property, plant andequipment (1) - (2)Interest received - - - Net cash used in investingactivities (1) - (2) Cash flows from financingactivitiesProceeds from issue of shares - 41 130Proceeds from borrowings - - -Interest paid (27) (27) (55) Net cash from financing activities (27) 14 75 Net cash decrease in cash and cashequivalents 5 (29) 25Cash and cash equivalents atbeginning ofperiod 29 4 4Cash and cash equivalent at end ofperiod 34 (25) 29CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 MARCH2012 Share Share Share Option Retained Capital Premium Reserve Earnings Total £'000 £'000 £'000 £'000 £'000 At 30 September2011 6,368 11,822 141 (18,331) -New shares issued - - - - -Profit for period - - - 9 9Equity share optionrecognised - - 3 - 3 At 31 March 2012 6,368 11,822 144 (18,322) 12 Share Share Share Option Retained Capital Premium Reserve Earnings Total £'000 £'000 £'000 £'000 £'000 At 30 September2010 6,329 11,731 133 (18,362) (169)New shares issued 13 28 41Profit for period - - - 16 16Equity share optionrecognised - - 3 - 3 At 31 March 2011 6,342 11,759 136 (18,346) (109)
NOTES TO THE HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2012
1. BASIS OF PREPARATION
The interim report is unaudited and does not constitute statutory accounts within the meaning of s498 of the Companies Act 2006. The statutory accounts for 2011, which were prepared under IFRS, have been delivered to the Registrar of Companies. The auditor's opinion on these accounts was unmodified and did not contain a statement under s498 of the Companies Act 2006.
The interim financial information has been prepared on a basis which is consistent with the accounting policies adopted by the Company for the last financial statements and in compliance with IAS 34.
Comparative figures are given for the six months ended 31 March 2011 and the year ended 30 September 2011.
2. REVENUE and loss on ordinary activities before taxation
The results for the six months ended 31 March 2012 and 31 March2011 are unaudited. The audited results for the year ended 30 September 2011have also been shown.By geographical 2012 2011location Profit Loss Before Before Revenue Taxation Revenue Taxation £'000 £'000 £'000 £'000 United Kingdom 650 9 452 5Europe 56 - 20 - 706 9 472 5
3. EARNINGSPER ORDINARY SHARE
The earnings per share is based on a profit for the period of £9,000 (six months ended 31 March 2011: a profit of £16,000; year ended 30 September 2011: a profit of £31,000), being the profit or loss attributable to ordinary shareholders, and a weighted average of 21,960,284 (31 March 2011: 18,144,460; 30 September 2011: 18,794,777) ordinary shares.
The diluted earnings /(loss) per share is based on a time weighting of the options granted by the current Talent Group employee share option plan.
4. Reconciliation of net cash flow to movement IN Cash and cash eqivalents
31-Mar 31-Mar 30-Sep 2012 2011 2011 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Decrease in cash and cash equivalentsin theperiod 29 (29) 25 Cash and cash equivalents at beginningof period 5 4 4 Cash and cash equivalents at end ofperiod 34 (25) 29
5. COPIES OF THE INTERIM RESULTS
Copies of the half-yearly results will be available from the Company's registered office Lion House, Red Lion Street, London WC1R 4GB and will be available from the Company's website www.talenttv.com.
XLONRelated Shares:
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