Half-yearly Report
01/06/2012 11:56
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 Bate
Chairman
1 June 2012
FURTHER ENQUIRIES
Talent Group plc
Tony Humphreys (Managing Director) 020 7415 7114
Merchant Securities Limited
Simon 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 706 472 874
Cost 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 Assets
Goodwill 1,082 1,082 1,082
Other intangible assets - 22 -
Property, plant &
equipment 18 27 21
1,100 1,131 1,103
Current assets
Inventories 78 60 55
Trade receivables 505 120 248
Cash & cash equivalents 34 5 29
617 185 332
Total assets 1,717 1,316 1,435
Equity and liabilities
Equity
Share capital 6,368 6,342 6,368
Share premium 11,822 11,759 11,822
Share option reserve 144 136 141
Retained earnings (18,322) (18,346) (18,331)
Total equity 12 (109) -
Current liabilities
Bank overdraft - 30 -
Borrowings 862 862 862
Trade & 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 '000
Cash flows from operating
activities
Profit before taxation 9 5 20
Adjustments for:
Depreciation of tangible assets 4 4 12
Amortisation of intangible assets - 3 25
Share option reserve 3 3 8
Interest received - - -
Interest paid 27 27 55
43 42 120
(Increase) in trade and other
receivables (257) (78) (257)
(Increase) in inventories (23) (54) (49)
Increase in trade and other
payables 270 36 127
33 (54) (59)
Tax refund received - 11 11
Tax paid - - -
Net cash flows from operating
activities 33 (43) (48)
Cash flows from investing
activities
Purchase of property, plant and
equipment (1) - (2)
Interest received - - -
Net cash used in investing
activities (1) - (2)
Cash flows from financing
activities
Proceeds from issue of shares - 41 130
Proceeds from borrowings - - -
Interest paid (27) (27) (55)
Net cash from financing activities (27) 14 75
Net cash decrease in cash and cash
equivalents 5 (29) 25
Cash and cash equivalents at
beginning of
period 29 4 4
Cash and cash equivalent at end of
period 34 (25) 29
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 MARCH
2012
Share
Share Share Option Retained
Capital Premium Reserve Earnings Total
'000 '000 '000 '000 '000
At 30 September
2011 6,368 11,822 141 (18,331) -
New shares issued - - - - -
Profit for period - - - 9 9
Equity share option
recognised - - 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 September
2010 6,329 11,731 133 (18,362) (169)
New shares issued 13 28 41
Profit for period - - - 16 16
Equity share option
recognised - - 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 March
2011 are unaudited. The audited results for the year ended 30 September 2011
have also been shown.
By geographical 2012 2011
location
Profit Loss
Before Before
Revenue Taxation Revenue Taxation
'000 '000 '000 '000
United Kingdom 650 9 452 5
Europe 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 equivalents
in the
period 29 (29) 25
Cash and cash equivalents at beginning
of period 5 4 4
Cash and cash equivalents at end of
period 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.
END