24th Dec 2009 08:49
Prime Focus London Plc
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009
Highlights
The Board of Prime Focus London plc, a Visual Entertainment Services Group, is pleased to announce its results for the six months to 30 September 2009.
Overview
For further information, please contact
Tony Bradley - Communications Director 020 7437 0026
Anshul Doshi - Group Managing Director 020 7437 0026
Philip Davies - Charles Stanley Securities (Nominated Adviser) 020 7149 6000
Chairman's Statement
The Board of Prime Focus London Plc is pleased to announce its unaudited results for the six months to 30 September 2009.
In the 6 months to 30 September 2009 the Prime Focus London Plc group of companies ("the Group") made a profit before tax of £7,613 on turnover of £8,191,748 compared to a profit before tax of £102,321 on turnover of £8,821,463 for the 6 months to 30 September 2008. Earnings per share were 0.09p per ordinary share (6 months to 30 September 2008: 0.31p).
Net debt increased from £3,830,263 at 30 September 2008 to £4,384,879 at 30 September 2009 and gearing consequently rose from 32.73% to 53.13%. Capital expenditure during the period amounted to £954,530.
Following a twelve month audit and analysis of the global group and its various brands, Prime Focus celebrated the unveiling of its new worldwide brand identity at the end of September 09 with spectacular launch events in London's Leicester Square and Hollywood, CA. Repositioning the company as a global Visual Entertainment Services group, we united our 15 facilities across North America, the UK and India under one new brand - Prime Focus. The evenings were an immense success, with around 500 clients and VIPs in attendance at each event. These high-profile events were also used to launch View-D™, our proprietary 2D-to-3D conversion process and CLEAR™, the Group's web-based media asset management service.
The repositioning of the group as a global Visual Entertainment Services company also allows us to engage in markets which would not normally have been considered relevant under the narrower definition of the company as a post production group. We are now engaging clients, not just in traditional areas such as film, commercials and broadcast, but also in new areas such as gaming, internet and wider media industries. It has also begun to help us in becoming partners to these companies, rather than just suppliers.
I am pleased to announce the launch of a new initiative in London, which will see the Group invest in the growth of the feature film visual effects arm of the business in the UK. Our aim is to expand the UK film VFX division to bring it alongside the capacity and capabilities of the North American division, which has recently completed work on Hollywood blockbusters 'Avatar', 'The Twilight Saga: New Moon' and 'G.I. Joe: The Rise of Cobra'. Early progress on this front is encouraging, with the UK division winning key VFX work on Ridley Scott's next movie 'Robin Hood' and on Kevin Macdonald's forthcoming film 'The Eagle of the Ninth'. There has also been a big win for the animation team in the UK, as they have secured an 18 month contract to produce an animated feature film tentatively titled 'Bus Tales', based on the 'Busy Buses' children's television series which Prime Focus previously produced (as 'the hive animation').
The Corporate Restructuring exercise set out in my statement which accompanied the Annual Accounts for the year ended 31 March 2009 continued during this period. As set out above, the first part of this exercise is complete with the restructuring of the Group's operating companies, and therefore recognised brands - relaunching all as simply Prime Focus. The remainder of this exercise will be completed by March 2010.
A new service, 'WorldVersioning™', has also been unveiled by Prime Focus during this period. The service, which utilises the existing infrastructure of the group, is designed to help meet the ever changing needs and demands of international advertisers and agencies worldwide, by assisting them with the smooth roll-out of global and regional marketing campaigns. Prime Focus WorldVersioning™ manages the complete process - from initial cultural and language checks, through to script and copy translation and finally to video and print output in all chosen media. The Prime Focus global presence is being used to align with other worldwide companies who already manage global multi-lingual campaigns for leading brands, and through CLEAR™, we provide clients with real-time input, status and tracking of their campaigns at any stage of the process. We're confident of substantial production and delivery cost reductions for our clients, across all media and at every stage of the process, and feel this is a strong and exciting offering.
I am pleased to report that the Group was ranked 5th among all UK post production facilities in the Televisual Magazine Top 50 for 2009, including being ranked 1st in the UK for kit and infrastructure. Televisual is the leading journal for the post production industry and its annual survey ranks UK facilities houses on the basis of a number of criteria, including equipment available, client comments and competitor perception. I am pleased to see that we are achieving such a high ranking within this influential poll.
Market conditions have remained very challenging in this period. The current economic climate has seen advertisers cutting back on budgets and reducing the number of new productions, and rates are under constant pressure as our competition seek to win projects by cutting their bids, devaluing the offering of the market. The Group is fighting hard to maintain margins, and keeping a keen eye on developments. We will keep shareholders abreast of developments in the Annual Report and Accounts to 31 March 2010.
I am very pleased that during these difficult times, the Prime Focus London Plc group is working harder than ever to drive the business forward. I believe that following the relaunch, the Group has never been better structured and positioned, and through the continuing integration with Prime Focus Limited in India and with our companies in North America, and the launch of proprietary products and services such as View-D™, CLEAR™ and WorldVersioning™, we are able to offer more value and competitive services to our clients than any of our worldwide competitors.
Namit Malhotra23rd December 2009
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Consolidated income statement |
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For the six months ended 30 September 2009 |
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Unaudited |
Unaudited |
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|
6 months |
6 months |
||
|
ended 30 |
ended 30 |
||
|
September 2009 |
September 2008 |
||
|
Revenue |
8,191,748 |
8,821,463 |
|
|
Less: Cost of sales |
(653,053) |
(713,677) |
|
|
|
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Gross Profit |
7,538,695 |
8,107,786 |
|
|
Administration expenses |
(7,297,233) |
(7,884,903) |
|
|
Group operating profit |
241,462 |
222,883 |
|
|
Other Income |
- |
49,616 |
|
|
Finance Income |
- |
- |
|
|
Finance costs |
(233,849) |
(170,178) |
|
|
|
|||
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Profit before taxation |
7,613 |
102,321 |
|
|
Taxation - Corporation Tax |
- |
(1,395) |
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|
Deferred tax |
20,194 |
- |
|
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Profit on ordinary activities after taxation |
27,807 |
100,926 |
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|
Basic and diluted earnings per share |
0.09p |
0.31p |
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|
|
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Consolidated balance sheet |
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As at 30 September 2009 |
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Unaudited |
Unaudited |
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As at |
As at |
||
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30 September 2009 |
30 September 2008 |
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ASSETS |
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Non-current assets |
|||
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Intangible Assets |
1,964,693 |
3,182,546 |
|
|
Property, plant and equipment |
8,283,825 |
10,368,348 |
|
|
Deferred Tax Assets |
770,298 |
20,152 |
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Other Receivables |
1,822,000 |
120,000 |
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Available for sale investments |
48,125 |
575,623 |
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|
12,888,941 |
14,266,669 |
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Current assets |
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Inventory |
33,543 |
32,727 |
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Trade and other receivables |
12,205,207 |
6,771,466 |
|
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Cash and cash equivalents |
177,135 |
421,106 |
|
|
12,415,885 |
7,225,299 |
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Total Assets |
25,304,826 |
21,491,968 |
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EQUITY |
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Capital and reserves attributable to equity shareholders |
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Share capital |
1,631,578 |
1,631,578 |
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Share premium |
6,498,786 |
10,267,463 |
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Capital redemption reserve |
270,000 |
270,000 |
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Fair value reserve |
19,250 |
107,981 |
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Retained earnings |
(166,145) |
(574,696) |
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Total equity |
8,253,469 |
11,702,325 |
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LIABILITIES |
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Current liabilities |
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Borrowings |
533,645 |
163,350 |
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Hire purchase creditors |
761,270 |
416,395 |
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Trade and other payables |
10,979,121 |
5,511,774 |
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Current tax liabilities |
1,475 |
26,500 |
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12,275,511 |
6,118,019 |
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Non-current liabilities |
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Borrowings |
3,267,099 |
3,671,624 |
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Other payables |
1,160,205 |
- |
|
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Deferred tax liability |
348,541 |
- |
|
|
4,775,845 |
3,671,624 |
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Total equity and liabilities |
25,304,826 |
21,491,968 |
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Consolidated cash flow statement |
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for the six months ended 30 September 2009 |
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Unaudited |
Unaudited |
|
|
6 months |
6 months |
|
|
ended 30 |
ended 30 |
|
|
September 2009 |
September 2008 |
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Cashflow from operating activities |
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Operating profit before taxation |
241,462 |
272,499 |
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Profit on disposal of tangible assets |
- |
- |
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Depreciation |
598,248 |
709,108 |
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(increase) in trade and other receivables |
312,118 |
(1,355,474) |
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Increase in trade and other payables |
695,908 |
(121,977) |
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(Increase) / decrease in inventories |
(1,379) |
(2,386) |
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Impairment of investment adjustment |
- |
(258,125) |
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Net cash inflow from operations |
1,846,357 |
(756,355) |
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Net interest paid |
(233,849) |
(170,178) |
|
|
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Net cash inflow/(outflow) from operations |
1,612,508 |
(926,533) |
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Taxation |
- |
(1,395) |
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Cashflow from investing activities |
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Purchase of tangible fixed assets |
(954,530) |
(752,104) |
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Purchase of investments available for sale |
- |
283,125 |
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Repayment of Debt and refinancing |
109,545 |
(3,014,063) |
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Net cash inflow from investing activities |
(844,985) |
(3,483,042) |
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Cashflow from financing activities |
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Cash flow from decrease in debt and lease financing |
(109,545) |
3,014,063 |
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Cashflow from issue of shares at premium |
- |
1,010,102 |
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Net cash inflow from financing activities |
(109,545) |
4,024,165 |
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Net cash inflow |
657,978 |
(386,804) |
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Cash and cash equivalents at the start of the period |
(4,158,205) |
(4,049,008) |
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Cash and cash equivalents at the end of the period |
(3,500,227) |
(4,435,812) |
Consolidated statement of changes in equity
for the six months ended 30 September 2009
|
Capital |
Fair |
|||||
|
Share |
Share |
redemption |
Value |
Retained |
Total |
|
|
capital |
premium |
Reserve |
Reserve |
earnings |
equity |
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At 01 April 2009 |
1,631,578 |
6,498,786 |
270,000 |
- |
(193,952) |
8,206,412 |
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Total recognised income for the period |
- |
- |
- |
- |
27,807 |
27,807 |
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Revaluation of Financial Assets |
- |
- |
- |
19,250 |
- |
19,250 |
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Shares Issued during the period |
- |
- |
- |
- |
- |
- |
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At 30 Sept 2009 |
1,631,578 |
6,498,786 |
270,000 |
19,250 |
(166,145) |
8,253,469 |
Notes to the interim results
1. GENERAL INFORMATION
Prime Focus London Plc (the "Company") is a company domiciled in England whose registered office address is 64 Dean Street, London W1D 4QQ. The condensed consolidated half-yearly financial statements of the Company for the six months ended 30 September 2009 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 auditors' report on the statutory accounts for the year ended 31 March 2009 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 authorized for issue on 23rd December 2009.
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 March 2009.
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.
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3. EARNINGS PER SHARE |
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|
Unaudited |
Unaudited |
|
|
6 months |
6 months |
|
|
ended 30 |
ended 30 |
|
|
September 2009 |
September 2008 |
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No. |
No. |
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Weighted average number of 5p ordinary shares |
||
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in issue during the period |
32,631,528 |
32,631,528 |
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For basic earnings per share |
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Weighted diluted average number of 5p ordinary shares |
32,631,528 |
32,631,528 |
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Profit for the financial period |
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Profit / (Loss) for the period ended |
27,807 |
100,926 |
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Profit / (Loss) for earnings per share |
27,807 |
100,926 |
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Basic and diluted earnings per share |
0.09p |
0.31p |
4. AVAILABILITY OF ACCOUNTS
A copy is available on the Company's website at www.primefocusworld.com.
Related Shares:
PFO.L