Final results for the year ended 30 September 2013
Talent Group plc
("Talent", "Company" or the "Group")
Final results for the year ended 30 September 2013
Chairman's Statement
I am pleased to present the Company's results for the year ended 30 September
2013.
Group turnover was £677,000 (2012 - £1,041,000), gross profit was £218,000
(2012 - £290,000), administrative expenses were £465,000 (2012 - £494,000) and,
after taxation, we have a retained loss for the year of £289,000 (2012 - £
245,000).
Whilst the results for the full year are again disappointing, they perhaps do
not do justice to the full level of underlying activity. However, they do give
rise to concern regarding the future sustainability of the Group in its current
form, and consequently publication of these results has been delayed. We hope
to be in a position to make a further announcement regarding these in the near
future. As a result of this delay, trading of the Company's shares on AIM has
been suspended.
Talent Television South, meanwhile, had a good 2012/13 financial year, with
turnover in excess of half a million pounds. Productions during the year
included a third series of crime documentaries for The Crime and Investigation
Channel, two further documentaries on Broadmoor and Frankie Fraser for the same
channel, and a number of corporate and commercial productions. Since the year
end, Talent South has completed a documentary - Tina Malone: Pregnant at 50 -
for The Discovery Channel, four one-hour documentaries for the new digital
channel, London Live, and been commissioned to produce sixty half-hour
programmes of factual entertainment content for the international sports stars
network Trace TV.
Talent Television (which includes Talent Films) had a less successful year in
financial terms, but continued to work on development projects and, indeed,
since the year end has been commissioned by NHK of Japan to re-format one of
their shows for western broadcasters. We now have a small slate of fully
developed programmes which are generating interest from broadcasters, both in
the UK and overseas. During the year Talent Films co-produced a new feature
film, Peterman, which will go on general release later this year. This is not
reflected in the financial results as no production fees were generated, but as
a result we will enjoy a greater share of anticipated future profits.
As the results show, we have continued to strive to drive down administrative
costs, and anticipate further reductions in the current year.
T Bate
Chairman
15 June 2014
Further Enquiries
Talent Group plc
Tony Humphreys Tel: 020 7415 7114
Sanlam Securities Limited
Simon Clements Tel: 020 7628 2200
Audited consolidated income statement for the year ended 30 September 2013
2013 2012
Notes £'000 £'000
Revenue 677 1,041
Cost of sales (459) (749)
Gross profit 218 292
Administrative expenses (465) (494)
Operating loss (247) (202)
Finance income 1 -
Finance costs (43) (43)
Loss before taxation (289) (245)
Taxation 2 - -
Loss for the year (289) (245)
Loss per share (pence) 3 (1.31p) (1.12p)
Diluted loss, per share (pence) 3 (1.26p) (1.07p)
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 2013
2013 2012
Notes £'000 £'000 £'000 £'000
Assets
Non-current assets
Goodwill 1,082 1,082
Property, plant & equipment 3 14
1,085 1,096
Current assets
Inventories 85 138
Trade receivables 161 78
Cash & cash equivalents (excluding 4 13 11
bank overdraft)
259 227
Total assets 1,344 1,323
Equity and liabilities
Equity
Share capital 6,368 6,368
Share premium 11,822 11,822
Share option reserve 148 148
Retained earnings (18,865) (18,576)
Total equity (527) (238)
Current liabilities
Borrowings 5 920 880
Trade & other payables 6 951 681
Total Liabilities 1,871 1,561
Total equity & liabilities 1,344 1,323
Audited consolidated cash flow statement from the year ended 30 September 2013
2013 2012
Notes £'000 £'000 £'000 £'000
Cash flows from operating
activities
Loss before taxation (289) (245)
Adjustments for:
Depreciation of tangible assets 3 7
Loss on disposal of fixed assets 7 -
Share option reserve - 7
Interest received (1) -
Interest paid 43 43
(237) (188)
(Increase)/decrease in trade & (83) 170
other receivables
Decrease/(increase) in inventories 53 (83)
Increase in other payables 270 108
3 7
Tax refund received - -
Tax paid - -
3 7
Cash flows from investing
activities
Purchase of property, plant and (5) -
equipment
Interest received 1 -
Sale proceeds of fixed assets 6 -
Net cash used in investing 2 -
activities
Cash flows from financing
activities
Increase/(decrease) in borrowings 42 (12)
Interest paid (43) (43)
Net cash used in financing (1) (55)
Net increase/(decrease) in cash 7 4 (48)
and cash equivalents
Cash and cash equivalents at the
beginning
of the year 7 (19) 29
Cash and cash equivalents at the 7 (15) (19)
end of the year
Audited consolidated statement of changes in equity from the year ended 30
September 2013
At 1 October 20116,36811,822141(18,331)-
Share Share Share Retained Total
Option
Capital Premium Earnings £'000
Reserve
£'000 £'000 £'000
£'000
Changes in equity
Loss for the year - - - (245) (245)
Equity share option - - 7 - 7
recognised
At 1 October 2012 6,368 11,822 148 (18,576) (238)
Changes in equity
Loss for the year - - - (289) (289)
Equity share option - - - - -
recognised
At 30 September 2013 6,368 11,822 148 (18,865) (527)
Notes to the preliminary results for the year ended 30 September 2013
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 2012 and 2013, but is
derived from those accounts. Statutory accounts for 2012 have been delivered to
the Registrar of Companies and those for 2013 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
2013 2012
£'000 £'000
Domestic current year tax
UK corporation tax - -
Domestic prior year tax
UK corporation tax - -
- -
Factors affecting the tax charge for the period:
Loss on ordinary activities before taxation (289) (245)
Profit/(loss) on ordinary activities multiplied by
the standard rate of
Corporation tax in the UK of 20 per cent. (2012: (58) (61)
25 per cent.)
Expenses not deductible for tax purposes - 2
Depreciation in excess of capital allowances for - 2
the year
Other short-term timing differences 24 24
Utilisation of tax losses 34 33
Current tax charge for the year - -
3. Loss per share
2013 2012
£'000 £'000
Numerator
Basic/Diluted: Net loss (289) (245)
Denominator
Basic: Weighted average shares 21,960,284 21,960,284
Effect of diluted securities: stock options 867,500 1,027,500
Diluted: Adjusted weighted average shares 22,827,784 22,987,784
Basic loss per share is calculated by dividing the net loss for the period
attributable to ordinary shareholders by the weighted average number of
ordinary shares outstanding during the period.
Diluted 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
2013 2012
£'000 £'000
Cash at bank and in hand 13 11
Bank overdraft (28) (30)
(15) (19)
5. Borrowings
2013 2012
£'000 £'000
Bank overdraft 28 30
Other loans 892 850
920 880
Other loans relate to amounts provided by Terry Bate, Non-Executive Chairman.
Interest is payable monthly at the rate of 6% per annum on the first £700,000,
and interest of 7% per annum is payable upon repayment of the balance. 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
2013 2012
£'000 £'000
Social security and other taxes 97 104
Other payables 68 63
Accruals and deferred income 786 514
951 681
7. Reconciliation of net cash flow to movement in cash and cash equivalents
2013 2012
£'000 £'000
Net increase/(decrease) in cash and cash 4 (48)
equivalents
Cash and cash equivalents at beginning of year (19) 29
Cash and cash equivalents at end of year (note (15) (19)
4)
8. Financial commitments
Office Office Land and Land and
equipment equipment buildings buildings
2013 2012 2013 2012
£'000 £'000 £'000 £'000
At 30 September 2013, the Group
had commitments under non -
cancellable operating leases as
follows:
Expiry date:
Less than one year - 2 - -
Between two and five years - - - -
At 30 September 2013 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.
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