30th Dec 2008 10:36
Prime Focus London Plc
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008
Highlights
The Board of Prime Focus London plc, the Media Services Group, is pleased to announce its results for the six months to 30 September 2008.
Overview
Profit before tax of £102,321 on turnover of £8,821,463 (6 months to 30 September 2007: £527,755 on turnover of £9,279,849)
EPS at 0.31p (6 months to 30 September 2007: 1.5p)
Going forward, the Group will benefit from about £250,000 of further premises cost savings
Global re-branding exercise and corporate restructuring successfully underway.
The company was ranked 4th in the Televisual Top 50 industry poll.
VTR Plc name changed to Prime Focus London Plc.
Key creative and production talent joins Prime Focus London Plc
Namit Malhotra comments, "I am pleased to be able to report that during these times of business uncertainty, driven by the global financial crisis and growing international unemployment, the Prime Focus London Plc group is working harder to gain a larger share of the market and drive the business forward. The restructuring of the business followed by the re-branding initiative has placed the Company in a strong position to achieve this."
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 600
Chairman's Statement
The Board of Prime Focus London Plc is pleased to announce its unaudited results for the six months to 30 September 2008.
Following the passing of a resolution put before shareholders at the Annual General Meeting on 17 September 2008, the company's name was changed from VTR Plc to Prime Focus London Plc, reflecting the Group's international presence.
In the 6 months to 30 September 2008 the Prime Focus London Plc group of companies ("the Group") made a profit before tax of £102,321 on turnover of £8,821,463 compared to a profit before tax of £527,755 on turnover of £9,279,849 for the 6 months to 30 September 2007. Earnings per share were 0.31p per ordinary share (6 months to 30 September 2007: 1.5p).
Net debt increased from £2,959,000 at 30 September 2007 to £4,435,815 at 30 September 2008 and gearing consequently rose from 29.0% to 32.7%. Capital expenditure during the period amounted to £752,104.
Following the integration of mastering and duplication facility The Machine Room Limited with Blue Post Production Limited, we were able to manage without the premises at 76 Old Compton Street and 58 Wardour Street. Accordingly, we have been able to conclude an agreement with the landlord of these premises to terminate our leases early, resulting in a saving on premises costs approaching some £250,000 per year.
I regard the last six months as being the initiation of the second phase of your Group's restructuring, following its return to profitability during the first phase.
The Corporate Restructuring exercise set out in my statement which accompanied the Annual Accounts for the year ended 31 March 2008 commenced during the period. The restructuring will result in a reduction of the Group's operating companies, and therefore recognised brands, from twelve to six and the Group has embarked upon a global re-branding exercise in consultation and co-ordination with Prime Focus Limited, the Group's Indian-based parent company and its associated companies in North America and Canada.
I am delighted to welcome back Tareq Kubaisi as CEO of the telecine business following a two year absence. Tareq Kubaisi is recognized as one of the most experienced and skilled telecine colorist within the post production industry, and he brings with him a wealth experience, reputation and a client base which will considerably enhance the group's creative reputation.
The Group made significant investments in Broadcast Visual Effects during the period. We expect to benefit from this investing during the year to March 2010 and to see an increased number of programme commissions. By this strategy, we also expected to offset the impact of the anticipated slowdown in the independent feature film industry.
K Group's in-house facility providing services to leading advertising agency, JWT and based in JWT's premises, continues to work well and has ventured additionally into providing JWT with production support services.
I am pleased to report that the Group was ranked 4th among all UK post production facilities in the Televisual Magazine Top 50 for 2008. 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 in September, October and November, traditionally the best trading months of the year, have been the most challenging in a long time. The current economic climate has seen advertisers cutting back on budgets and reducing the number of new productions. The Group was also adversely affected this year by the writers strike in Hollywood, which led to a large number of feature film productions being put on hold. Following the writers strike, the Screen Actor's Guild, the labour union representing screen actors in the USA, took industrial action, which is continuing, causing delay and cancellation of a number of film and television projects. The Group is keeping a keen eye on developments in Hollywood and a full assessment of the impact on our business will be presented to shareholders in the Annual Report and Accounts to 31 March 2009.
I am pleased to be able to report that during these times of business uncertainty driven by the global financial crisis and growing international unemployment, the Prime Focus London Plc group is working harder to gain a larger share of the market and drive the business forward. The restructuring of the business followed by the re-branding initiative has placed the company in a strong position to achieve this.
Overall, I believe that your Group is well structured and positioned. Through the continuing integration with Prime Focus Limited in India, we are able to offer more competitive services to our clients than our competitors and in these challenging economic times, we look forward to increasing our market share.
Namit Malhotra
30th December 2008
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Consolidated income statement |
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For the six months ended 30 September 2008 |
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|
Unaudited |
Audited |
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|
6 months |
6 months |
||
|
ended 30 |
ended 30 |
||
|
September 2008 |
September 2007 |
||
|
Revenue |
8,821,463 |
9,279,849 |
|
|
Less: Cost of sales |
(713,677) |
(1,335,459) |
|
|
|
|
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|
Gross Profit |
8,107,786 |
7,944,389 |
|
|
Administration expenses |
(7,884,903) |
(7,252,629) |
|
|
Group operating profit |
222,883 |
691,761 |
|
|
Other Income |
49,616 |
- |
|
|
Finance Income |
- |
- |
|
|
Finance costs |
(170,178) |
(164,005) |
|
|
|
|||
|
Profit before taxation |
102,321 |
527,755 |
|
|
Taxation - Corporation Tax |
(1,395) |
(100,000) |
|
|
Profit on ordinary activities after taxation |
100,926 |
427,755 |
|
|
Basic and diluted earnings per share |
0.31p |
1.5p |
|
|
|
|
Consolidated balance sheet |
|||
|
As at 30 September 2008 |
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|
Unaudited |
Unaudited |
||
|
As at |
As at |
||
|
30 September 2008 |
30 September 2007 |
||
|
ASSETS |
|||
|
Non-current assets |
|||
|
Intangible Assets |
3,182,546 |
1,437,861 |
|
|
Property, plant and equipment |
10,368,348 |
10,829,827 |
|
|
Deferred Tax Assets |
20,152 |
- |
|
|
Other Receivables |
120,000 |
- |
|
|
Available for sale investments |
575,623 |
717,190 |
|
|
14,266,669 |
12,984,878 |
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|
Current assets |
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Inventory |
32,727 |
27,907 |
|
|
Trade and other receivables |
6,771,466 |
6,702,233 |
|
|
Cash and cash equivalents |
421,106 |
171,371 |
|
|
7,225,299 |
6,901,511 |
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|
Total Assets |
21,491,968 |
19,886,389 |
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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 |
1,387,814 |
|
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Share premium |
10,267,463 |
8,556,624 |
|
|
Capital redemption reserve |
270,000 |
270,000 |
|
|
Fair value reserve |
107,981 |
839,605 |
|
|
Retained earnings |
(574,696) |
(890,809) |
|
|
Total equity |
11,702,325 |
10,163,234 |
|
|
LIABILITIES |
|||
|
Current liabilities |
|||
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Borrowings |
163,350 |
1,940,823 |
|
|
Hire purchase creditors |
416,395 |
422,676 |
|
|
Trade and other payables |
5,511,774 |
6,198,147 |
|
|
Other Creditors |
- |
- |
|
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Current tax liabilities |
26,500 |
117,298 |
|
|
6,118,019 |
8,678,944 |
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|
Non-current liabilities |
|||
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Borrowings |
3,671,624 |
766,667 |
|
|
Discounted Contingent Consideration |
- |
149,950 |
|
|
Deferred tax liability |
- |
127,595 |
|
|
3,671,624 |
1,044,212 |
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|
Total equity and liabilities |
21,491,968 |
19,886,389 |
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|
Consolidated cash flow statement |
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|
for the six months ended 30 September 2008 |
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|
Unaudited |
Unaudited |
|
|
6 months |
6 months |
|
|
ended 30 |
ended 30 |
|
|
September 2008 |
September 2007 |
|
|
Cashflow from operating activities |
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|
Operating profit before taxation |
272,499 |
691,761 |
|
Profit on disposal of tangible assets |
- |
- |
|
Depreciation |
709,108 |
664,559 |
|
(increase) in trade and other receivables |
(1,355,474) |
(218,791) |
|
Increase in trade and other payables |
(121,977) |
239,970 |
|
(Increase) / decrease in inventories |
(2,386) |
(1,275) |
|
Impairment of investment adjustment |
(258,125) |
- |
|
Net cash inflow from operations |
(756,355) |
1,376,224 |
|
Net interest paid |
(170,178) |
(164,005) |
|
|
|
|
|
Net cash inflow/(outflow) from operations |
(926,533) |
1,212,220 |
|
Taxation |
(1,395) |
- |
|
Cashflow from investing activities |
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|
Purchase of tangible fixed assets |
(752,104) |
(613,024) |
|
Purchase of investments available for sale |
283,125 |
- |
|
Repayment of Debt and refinancing |
(3,014,063) |
(486,472) |
|
Net cash inflow from investing activities |
(3,483,042) |
(1,099,496) |
|
Cashflow from financing activities |
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|
Cash flow from decrease in debt and lease financing |
3,014,063 |
486,472 |
|
Cashflow from issue of shares at premium |
1,010,102 |
- |
|
Net cash inflow from financing activities |
4,024,165 |
486,472 |
|
Net cash inflow |
(386,804) |
599,196 |
|
Cash and cash equivalents at the start of the period |
(4,049,008) |
(3,557,999) |
|
Cash and cash equivalents at the end of the period |
(4,435,812) |
(2,958.803) |
Consolidated statement of changes in equity
for the six months ended 30 September 2008
|
Capital |
Fair |
|||||
|
Share |
Share |
redemption |
Value |
Retained |
Total |
|
|
capital |
premium |
Reserve |
Reserve |
earnings |
equity |
|
|
At 01 April 2008 |
1,505,314 |
9,383,624 |
270,000 |
366,107 |
(675,622) |
10,849,423 |
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Total recognised income for the period |
- |
- |
- |
- |
100,926 |
100.926 |
|
Revaluation of Financial Assets |
- |
- |
- |
(258,125) |
- |
(258,125) |
|
Shares Issued during the period |
126,263 |
883,838 |
- |
- |
- |
1,010,101 |
|
At 30 Sept 2008 |
1,631,578 |
10,267,463 |
270,000 |
107,981 |
(574,696) |
11,702,325 |
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 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 auditors' report on the statutory accounts for the year ended 31 March 2008 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 30th December 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 March 2008.
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 2008 |
September 2007 |
|
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No. |
No. |
|
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Weighted average number of 5p ordinary shares |
||
|
in issue during the period |
32,631,528 |
27,756,276 |
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For basic earnings per share |
||
|
Weighted diluted average number of 5p ordinary shares |
32,631,528 |
27,756,276 |
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Profit for the financial period |
||
|
Profit / (Loss) for the period ended |
100,926 |
427,755 |
|
Profit / (Loss) for earnings per share |
100,926 |
427,755 |
|
Basic and diluted earnings per share |
0.31p |
1.5p |
4. AVAILABILITY OF ACCOUNTS
Pursuant to Rule 20 of the AIM Rules for Companies, the Company confirms that copies of the Interim Results for the period ended 30 September 2008 have been sent to shareholders and are available from the Company's registered office. A copy will also be available shortly on the Company's website at www.pflplc.com.
Related Shares:
PFO.L