Half-yearly Report
28 June 2011
Talent Group plc
("Talent" or the "Company" or the "Group)
Unaudited interim results for the six month period ended 31 March 2011
CHAIRMAN'S STATEMENT
I am pleased to present the Group's results for the 6 months ended 31 March
2011. It gives me some satisfaction finally to be able to report a profit,
albeit an extremely modest one. Turnover for the period under review was £
472,000 (2010: £225,000) on which the gross profit was £287,000 (2010: £
115,000). Profit before taxation was £5,000 (2010: loss of £202,000), whilst a
corporation tax refund of £11,000 lifted net profits after taxation to £16,000.
Earnings per share were 0.09p (2010: loss of 1.15p).
Trading conditions in the broadcast television sector remain difficult for
independent production companies such as Talent. However, I am sure that
shareholders have heard enough from me on this subject over the last three
years, so I will concentrate instead on more positive aspects.
Our first ever feature film, a co-production based on the book The Mumper and
starring Bob Hoskins and Jenny Agutter, completed filming in the period under
review, and is now in the final stages of post-production. The film is to be
distributed by Universal, and is expected to have its cinema release, with the
new title 'Outside Bet', towards the end of 2011. Our half-year results include
production fees received on this project: future income will be dependent on
the film's commercial success, and will impact on our 2012 results.
Another Talent Television long-term project, My Phone Genie, is due to commence
filming in July, with the first programmes available to broadcasters from
October. Again, the Group will receive production fees over the period of
production, and retains a significant share of commercial rights, the value of
which will be dependent on the success of the programmes.
Talent South has completed eight one-hour crime documentaries for the Crime and
Investigation Channel. This has been broadcast to strong viewing figures for
the slot, resulting in a commission for a further eight episodes.
Our results for the full year to September 2010 were adversely affected by the
£174,000 bad debt incurred as a result of the late cancellation of the Aura
project. Whilst we were repeatedly assured by the Event organisers, Aura
Football Limited, that we would be paid in full, the company went into
liquidation over the Christmas period. The fall-out from this has continued
adversely to affect our cash-flow, which remains extremely tight.
We continue to drive down overheads and to position ourselves for future
growth. The last three months have seen some significant board changes.
Jonathan Glazier, our director of entertainment, has stood down from the board
but continues to work with the Group on the development of new entertainment
projects. Kate Beal, managing director of Talent South, has joined the Group
board, and we are pleased to welcome back Bob Benton, former Chairman, as a
non-executive director.
In my last year's interim report, I commented that progress on development
projects was encouraging, and we hoped that these would provide a strong
platform for future growth. We are now starting to realize these benefits, and
look forward to benefitting further over future periods.
Terry Bate
Chairman
27 June 2011
FURTHER ENQUIRIES
Talent Group plc
Tony Humphreys (Managing Director) 020 7822 3900
Merchant Securities Limited
John East / Simon Clements 020 7628 2200
CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2011
Six months ended Six months ended
31-Mar 31-Mar Year ended
2011 2010 30-Sep
2010
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Revenue 472 225 653
Cost of sales (185) (110) (311)
Gross profit 287 115 342
Administrative expenses (255) (296) (792)
Finance income - - 1
Finance costs (27) (21) (43)
Profit / (loss) before taxation 5 (202) (492)
Income tax expense - prior year refund 11 - -
- current year - - -
Profit / (loss) for the period 16 (202) (492)
Basic earnings /(loss) per share (pence) 0.09p (1.15p) (2.76p)
Diluted earnings/(loss) per share (pence) 0.08p (1.13p) (2.67p)
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2011
31-Mar 31-Mar 30-Sep
2011 2010 2010
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000 £'000 £'000 £'000
Assets
Non-current Assets
Goodwill 1,082 1,082 1,082
Other intangible assets 22 28 25
Property, plant & equipment 27 30 31
1,131 1,140 1,138
Current assets
Inventories 60 41 6
Trade receivables 120 16 42
Cash & cash equivalents 5 1 31
185 58 79
Total assets 1,316 1,198 1,217
Equity and liabilities
Equity
Share capital 6,342 6,329 6,329
Share premium 11,759 11,731 11,731
Share option reserve 136 129 133
Retained earnings (18,346) (18,072) (18,362)
Total equity (109) 117 (169)
Current liabilities
Bank overdraft 30 31 27
Borrowings 862 700 862
Trade & other payables 533 350 497
Total liabilities 1425 1,081 1,336
Total equity & liabilities 1,316 1,198 1,217
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2011
Six months ended Six months ended
31-Mar 31-Mar Year ended
2011 2010 30-Sep
(Unaudited) (Unaudited) 2010
(Audited)
£'000 £'000 £'000
Cash flows from operating activities
Profit / (loss) before taxation 5 (202) (492)
Adjustments for:
Depreciation of tangible assets 4 5 13
Amortisation of intangible assets 3 3 6
Share option reserve 3 3 -
Interest received - - (1)
Interest paid 27 21 43
42 (170) (431)
(Increase)/decrease in trade and other receivables (78) 26 (1)
(Increase)/decrease in inventories (54) 16 51
Increase in trade and other payables 36 71 226
(54) 113 (155)
Tax refund received 11 - -
Tax paid - - -
Net cash flows from operating activities (43) (57) (155)
Cash flows from investing activities
Purchase of property, plant and equipment - (1) (10)
Interest received - - 1
Net cash used in investing activities - (1) (9)
Cash flows from financing activities
Proceeds from issue of shares 41 70 70
Proceeds from borrowings - - 162
Interest paid (27) (21) (43)
Net cash from financing activities 14 49 189
Net cash decrease in cash and cash equivalents (29) (9) 25
Cash and cash equivalents at beginning of period 4 (21) (21)
Cash and cash equivalent at end of period (25) (30) 4
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 MARCH
2011
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)
Share
Share Share Option Retained
Capital Premium Reserve Earnings Total
£'000 £'000 £'000 £'000 £'000
At 30 September 2009 6,315 11,675 126 (17,870) 246
New shares issued 14 56 70
Loss for period - - - (202) (202)
Equity share option recognised - - 3 - 3
At 31 March 2010 6,329 11,731 129 (18,072) 117
NOTES TO THE HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2011
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 2010, 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 2010 and the
year ended 30 September 2010.
2. REVENUE and loss on ordinary activities before taxation
The results for the six months ended 31 March 2011 and 31 March 2010 are
unaudited. The audited results for the year ended 30 September 2010 have also
been shown.
By geographical location 2011 2010
Profit Loss
Before Before
Revenue Taxation Revenue Taxation
£'000 £'000 £'000 £'000
United Kingdom 452 5 225 (202)
Europe 20 - - -
472 5 225 (202)
3. EARNINGS PERORDINARY SHARE
The earnings per share is based on a profit for the period of £16,000 (six
months ended 31 March 2010: a loss of £202,000; year ended 30 September 2010: a
loss of £492,000), being the profit or loss attributable to ordinary
shareholders, and a weighted average of 18,144,460 (31 March 2010: 17,631,822;
30 September 2010: 17,847,817) 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
2010 2010 2010
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Decrease in cash and cash equivalents in the
period (29) (9) 25
Cash and cash equivalents at beginning of 4 (21) (21)
period
Cash and cash equivalents at end of period (25) (30) 4
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.
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