Final Results

Global Opportunities Trust

18/03/2013 07:00

RNS Number : 1770A

Talent Group PLC

18 March 2013

 



 

 

18  March 2013

Talent Group plc

("Talent", "Company" or the "Group")

 

Final results for the year ended 30 September 2012

 

 

Chairman's Statement

 

I am pleased to present the Company's results for the year ended 30 September 2012.

 

Although Group turnover has increased to £1,041,000 (2011: £874,000), gross profit was reduced to £292,000 (2011: £516,000), reflecting a different mix of income streams, After taxation, we have a retained loss for the year of £245,000 (2011: profit of £31,000).

 

The results for the full year are somewhat disappointing in view of an encouraging first half of the year which saw both our production companies, Talent Television and Talent Television South, engaged in significant levels of production activity. Talent Television was completing production of My Phone Genie, a 26-part children's series produced as an international co-production with Moonscoop of France, Telegael of Ireland, and ZDF of Germany. The series has subsequently been broadcast successfully on ITV, and the company is in discussions regarding a second series.

 

Talent Television South completed a second series of eight crime documentaries for The Crime and Investigation Network during the first half of the year, which were broadcast in the final quarter of 2012, achieving above average audiences for the Channel. A third series of six shows has just been commissioned for production in the 2012/13 financial year.

 

A number of other projects have also contributed to Group profitability. Talent Television South completed a documentary on The Richardsons, again for The Crime and Investigation Network. A further two documentaries, on Frankie Fraser and Broadmoor, have been commissioned and completed since the year end. Additionally, Talent South retains its involvement in the production of instructional DVDs, corporate films, and local television.

 

Whilst there was a notable lack of production activity during the second half of the 2011/12 financial year, development work continued unabated, and both companies have a range of projects, both for television and cinema, which are progressing and can be expected to contribute to Group profitability in future years.

 

 

Terry Bate

Chairman

 

14 March 2013

 

 

 

 

Business Review and Principal Activities

 

 

As the Chairman has stated above, the second half of the year was disappointing in terms of the level of production and therefore income. This was due in part to My Phone Genie being broadcast in Germany much later than we had anticipated which impacted on our expectations for the timing of a potential second series. That said, the series has performed well in the UK on ITV/CITV and the broadcaster has responded positively.  As a result we are looking at the prospect of funding a second series. We also have a number of other new scripted comedy and drama projects both for Kid's and prime-time television at various stages of development and pitching.

 

We have also embarked on a number of new relationships with third party creators and companies in order to stimulate greater activity in the genres of game show and formatted entertainment and reality.

 

As expected, our first theatrical feature film Outside Bet was released into cinemas by Universal last April and is currently available on DVD. It has started selling to other territories, including Australia, and we expect it will get a free-to-air television premiere in the UK at some point in the not too distant future. As a result of this film, we have established some new relationships and as such have acquired the rights to some other interesting projects including the co-production film rights to the successful British Asian stage play The Deranged Marriage, by Pravesh Kumar, which would be best described as in the same genre as Bend It Like Beckham and Monsoon Wedding.

 

Talent South continues to progress well, and we are all delighted that the audience figures continue to grow for Fred Dinenage - Murder Casebook, and that our strong relationship with the broadcaster has resulted in the commissioning of further one-off programmes and a third series of Murder Casebook.

 

Overall, whilst the general lack of production in the second half year thwarted the speed of our desired progress we have a strong development slate in both companies and a keen desire to return shareholder value. As experienced investors in this sector know, it can be frustrating but the next big and profitable 'hit' is always just around the corner and can therefore be very rewarding for those who persist.

 

 

 

Tony Humphreys

Managing Director

 

18  March 2013

 

 Further Enquiries

 

Talent Group plc
Tony Humphreys
Tel: 020 7415 7114
Merchant Securities Limited
Simon Clements
Tel: 020 7628 2200


 

 

 

Audited consolidated income statement for the year ended 30 September 2012

 

2012
2011
Notes
£'000
£'000
Revenue
1,041
874
Cost of sales
(749)
(358)
Gross profit
292
516
Administrative expenses
(494)
(441)
Operating (loss)/profit
(202)
75
Finance income
-
-
Finance costs
(43)
(55)
(Loss)/profit before taxation
(245)
20
Taxation
2
-
11
(Loss)/profit for the year
(245)
31
(Loss)/profit per share (pence)
3
(1.116p)
0.165p
Diluted (loss)/profit per share (pence)
3
(1.066p)
0.156p

 

The income statement has been prepared on the basis that all operations are continuing operations.

 

The accounting policies and the notes, which are set out in the Company's report and accounts, form an integral part of these financial statements.

 

There are no recognised gains or losses other than those passing through the income statement.

 

 

Audited consolidated balance sheet as at 30 September 2012

 

2012
2011
Notes
£'000
£'000
£'000
£'000
Assets
Non-current assets
Goodwill
1,082
1,082
Property, plant & equipment
14
21
1,096
1,103
Current assets
Inventories
138
55
Trade receivables
78
248
Cash & cash equivalents (excluding bank overdraft)
4
11
29
227
332
Total assets
1,323
1,435
Equity and liabilities
Equity
Share capital
6,368
6,368
Share premium
11,822
11,822
Share option reserve
148
141
Retained earnings
(18,576)
(18,331)
Total equity
(238)
-
Current liabilities
Borrowings
5
880
862
Trade & other payables
6
681
573
Total Liabilities
1,561
1,435
Total equity & liabilities
1,323
1,435

 

Audited consolidated cash flow statement from the year ended 30 September 2012

 

2012
2011
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
(Loss)/profit before taxation
(245)
20
Adjustments for:
Depreciation of tangible assets
7
12
Amortisation of intangible assets
-
25
Share option reserve
7
8
Interest received
-
-
Interest paid
43
55
(188)
120
Decrease/(increase) in trade & other receivables
170
(257)
Decrease in inventories
(83)
(49)
Increase in other payables
108
127
7
(59)
Tax refund received
-
11
Tax paid
-
-
Net cash from operating activities
7
(48)
Cash flows from investing activities
Purchase of property, plant and equipment
-
(2)
Interest received
-
-
Net cash used in investing activities
-
(2)
Cash flows from financing activities
Decrease in borrowings
(12)
-
Proceeds from issue of shares
-
130
Interest paid
(43)
(56)
Net cash used in financing
(55)
75
Net (decrease)/increase in cash and cash equivalents
7
(48)
25
Cash and cash equivalents at the beginning
of the year
7
29
4
Cash and cash equivalents at the end of the year
7
(19)
29

 

 

Audited consolidated statement of changes in equity from the year ended 30 September 2012

 

Share
Capital
£'000
Share
Premium
£'000
ShareOption
Reserve
£'000
Retained
Earnings
£'000
Total
£'000
At 1 October 2010
6,329
11,731
133
(18,362)
(169)
Changes in equity
Profit for the year
-
-
-
31
31
Equity share option recognised
-
-
8
-
8
New shares issued
39
91
-
-
130
At 1 October 2011
6,368
11,822
141
(18,331)
-
Changes in equity
Loss for the year
-
-
-
(245)
(245)
Equity share option recognised
-
-
7
-
7
At 30 September 2012
6,368
11,822
148
(18,576)
(238)


 

 

 

Notes to the preliminary results for the year ended 30 September 2012

 

1.         Basis of preparation

 

These financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRS) issued by the International Accounting Standards Board (IASB) as adopted by European Union ("adopted IFRSs"), and are in accordance with IFRS as issued by the IASB.

 

The financial information set out above does not constitute the Company's statutory accounts for the years ended 30 September 2011 and 2012, but is derived from those accounts. Statutory accounts for 2011 have been delivered to the Registrar of Companies and those for 2012 will be shortly. The Auditors have reported on those accounts; their reports were unqualified and did not contain statements under the Companies Act 2006 section 498.

 

2.         Taxation

 

2012
2011
£'000
£'000
Domestic current year tax
UK corporation tax
-
-
Domestic prior year tax
UK corporation tax - refund
-
11
-
11
Factors affecting the tax charge for the period:
(Loss)/profit on ordinary activities before taxation
(245)
20
Profit/(loss) on ordinary activities multiplied by the standard rate of
Corporation tax in the UK of 25 per cent. (2011: 21 per cent.)
(61)
4
Expenses not deductible for tax purposes
2
10
Depreciation in excess of capital allowances for the year
2
1
Other short-term timing differences
24
-
Utilisation of tax losses
33
(15)
Prior year tax
-
11
Current tax charge for the year
-
11


 

3.         Loss per share

 

2012
2011
£'000
£'000
Numerator
Basic/Diluted: Net (loss)/profit
(245)
31
Denominator
Basic: Weighted average shares
21,960,284
18,794,777
Effect of diluted securities: stock options
1,027,500
1,027,500
Diluted: Adjusted weighted average shares
22,987,784
19,822,277

 

Basic (loss)/profit per share is calculated by dividing the net (loss)/profit for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

 

Diluted profit/(loss) per share is computed using the weighted average number of shares outstanding during the period adjusted for the dilutive effect of stock options outstanding for the period.

 

 

 

 

4.         Cash and cash equivalents

 

2012
2011
£'000
£'000
Cash at bank and in hand
11
29
Bank overdraft
(30)
-
(19)
29

 

5.         Borrowings

 

2012
2011
£'000
£'000
Bank overdraft
30
-
Other loans
850
862
880
862

 

The above borrowings include loans of £850,000 from Terry Bate, Non-Executive Chairman. On the first loan of £700,000, interest is payable monthly at the rate of a minimum of 6 per cent per annum. During the year to 30 September 2010 Mr Bate provided a further loan facility to the Company as production finance for a commission that was subsequently cancelled. At 30 September 2012 £150,000 remained outstanding under this facility (2011 - £162,000). Interest on this loan is payable at the rate of 7 per cent. per annum. The loans are unsecured and no guarantees were given.

 

a)         Ageing

The loans are due on demand.

 

b)         Fair values

 

Cash and cash equivalents

The carrying value approximates to fair value.

 

Other assets and liabilities

No disclosure of fair value has been made as the carrying value is a reasonable approximation of the fair value.

 

 

6.         Trade and other payables: amounts falling due within one year

 

2012
2011
£'000
£'000
Social security and other taxes
167
47
Other payables
-
33
Accruals and deferred income
514
493
681
573

 

 

7.         Reconciliation of net cash flow to movement in cash and cash equivalents

 

2012
2011
£'000
£'000
Net (decrease)/ increase in cash and cash equivalents
(48)
25
Cash and cash equivalents at beginning of year
29
4
Cash and cash equivalents at end of year (note 4)
(19)
29

 

 

8.                     Financial commitments

 

Office
equipment
2012
£'000
Office
equipment
2011
£'000
Land and
buildings
2012
£'000
Land and
buildings
2011
£'000
At 30 September 2012, the Group had commitments under non - cancellable operating leases as follows:
Expiry date:
Less than one year
2
-
-
-
Between two and five years
-
2
-
-

 

At 30 September 2012 there are no terms of renewal or purchase options and escalation clauses.  There are also no restrictions imposed by lease arrangements concerning dividends, additional debt and further leasing.

 

9.         Dividend

 

The Directors do not propose a dividend payment.

 

10.        Copies of report and accounts

 

Copies of the Report and Accounts will be posted to shareholders shortly, will be available from the Company's registered office Studio 31, FBC, 40 Bowling Green Lane, London EC1R 0NE and will be available from the Company's website www.talenttv.com.

This information is provided by RNS

The company news service from the London Stock Exchange

 
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