Interim Results for 6 months ended 31 March 2014
27 June 2014
Talent Group PLC
("Talent" or the "Company" or the "Group)
Unaudited interim results for the six month period ended 31 March 2014
CHAIRMAN'S STATEMENT
I present the Group's results for the six months ended 31 March 2014.
Group turnover for the period was £291,000 (2013 - £315,000), on which gross
profit was £127,000 (2013 - £75,000). After operating costs of £225,000 (2013 -
£223,000) and interest charges of £22,000 (2013 - £22,000), the operating loss
for the period (and the loss after taxation) was £120,000 (2013 - loss of £
170,000 before and after taxation). Earnings per share were a loss of 0.546p
(2013 - 0.744p).
Whilst these results show some improvement on the previous year, they remain
disappointing. As I recently reported, such results give rise to concern
regarding the future sustainability of the Group in its current form, and
consequently the publication of the 2013 full year results was delayed,
resulting in a temporary suspension of trading in the Company's shares on AIM.
We hope to be in a position to make a further announcement regarding the future
of the Group in the near future.
In the six months to 31 March 2014, Talent Television has successfully
completed a commission from NHK of Japan to re-format one of their shows for
western broadcasters. Discussions are now underway with various Japanese and
Chinese broadcasters regarding similar commissions. A number of other projects
remain in development with UK broadcasters but, as ever, this is a long and
protracted progress.
Talent Television continues to co-produce two feature films: Peterman, which
has completed filming and is currently being shown to distributors, and The
Deranged Marriage, a film adaptation of a successful stage play, which is
currently raising finance. A number of other film projects remain in the early
stages of development.
Talent Television South has, in the six months to 31 March 2014, completed a
documentary - Tina Malone: Pregnant at 50 - for The Discovery Channel, and been
commissioned for a further four documentaries for the new London Live contract.
A further new client is Trace TV, by whom the company has been commissioned to
produce a series of sixty half-hour factual entertainment programmes. The
company has also recently been commissioned to produce a further instructional
DVD for Stitchcombe Productions Ltd, and continues to undertake a variety of
corporate work.
Terry Bate
Chairman
27 June 2014
FURTHER ENQUIRIES
Talent Group PLC
Tony Humphreys (Managing Director) 020 3053 1897
Sanlam Securities UK Ltd
Simon Clements 020 7628 2200
TALENT GROUP PLC
CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2014
Six months Six months
ended ended Year ended
31-Mar 31-Mar 30-Sep
2014 2013 2013
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Revenue 291 315 677
Cost of sales (164) (240) (459)
Gross profit 127 75 218
Administrative expenses (225) (223) (465)
Finance income - - 1
Finance costs (22) (22) (43)
Loss before taxation (120) (170) (289)
Income tax expense - - -
Loss for the period (120) (170) (289)
Basic loss per share (pence) (0.546p) (0.774p) (1.31p)
Diluted loss per share (pence) (0.541p) (0.744p) (1.26p)
TALENT GROUP PLC
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2014
31-Mar 31-Mar 30-Sep
2014 2013 2013
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000 £'000 £'000 £'000
Assets
Non-current assets
Goodwill 1,082 1,082 1,082
Property, plant & equipment 3 12 3
1,085 1,094 1,085
Current assets
Inventories 141 95 85
Trade receivables 48 188 161
Cash & cash equivalents 1 13 13
190 296 259
Total assets 1,275 1,390 1,344
Equity and liabilities
Equity
Share capital 6,368 6,368 6,368
Share premium 11,822 11,822 11,822
Share option reserve 148 150 148
Retained earnings (18,985) (18,746) (18,865)
Total equity (647) (406) (527)
Current liabilities
Bank overdraft - 29 28
Borrowings 918 850 892
Trade & other payables 1,004 917 951
Total liabilities 1,922 1,796 1,871
Total equity & liabilities 1,275 1,390 1,344
TALENT GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2014
Six months Six months Year
ended ended ended
31-Mar 31-Mar 30-Sep
2014 2013 2013
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Cash flows from operating activities
Loss before taxation (120) (170) (289)
Adjustments for:
Loss on disposal of fixed assets - - 7
Depreciation of tangible assets 1 2 3
Share option reserve - 2 -
Interest paid 22 22 42
(97) (144) (237)
Decrease/(increase) in trade and other
receivables 141 (110) (83)
(Increase)/decrease in inventories (56) 43 53
Increase in trade and other payables 53 236 270
Net cash flows from operating activities 41 25 3
Cash flows from investing activities
Purchase of property, plant and (1) -
equipment (5)
Sale proceeds of fixed asset disposals - - 6
Interest received - - 1
Net cash used in investing activities (1) - 2
Cash flows from financing activities
Net decrease in borrowing (2) - 42
Interest paid (22) (22) (43)
Net cash from financing activities (24) (22) (1)
Net increase in cash and cash
equivalents 16 3 4
Cash and cash equivalents at
beginning of period (15) (19) (19)
Cash and cash equivalents at
end of period 1 (16) (15)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 MARCH 2014
Share
Share Share Option Retained
Capital Premium Reserve Earnings Total
£'000 £'000 £'000 £'000 £'000
At 30 September 2013 6,368 11,822 148 (18,865) (527)
Loss for period - - - (120) (120)
Equity share option recognised - - - - -
At 31 March 2014 6,368 11,822 148 (18,985) (647)
Share
Share Share Option Retained
Capital Premium Reserve Earnings Total
£'000 £'000 £'000 £'000 £'000
At 30 September 2012 6,368 11,822 148 (18,576) (238)
Loss for period - - - (170) (170)
Equity share option recognised - - 2 - 2
At 31 March 2013 6,368 11,822 150 (18,746) (406)
NOTES TO THE HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2014
1. BASIS OF PREPARATION
The interim report is unaudited and does not constitute statutory accounts
within the meaning of s.498 of the Companies Act 2006. The statutory accounts
for 2013, 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 s.498 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 2013 and the
year ended 30 September 2013.
2. REVENUE AND LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
The results for the six months ended 31 March 2014 and 31 March 2013 are
unaudited. The audited results for the year ended 30 September 2013 have also
been shown.
By geographical location 2014 2013
(Loss) (Loss)
Before Before
Revenue Taxation Revenue Taxation
£'000 £'000 £'000 £'000
United Kingdom 194 (120) 315 (170)
Europe 18 - - -
Asia 79 - - -
291 (120) 315 (170)
3. EARNINGS PER ORDINARY SHARE
The earnings per share is based on a loss for the period of £120,000 (six
months ended 31 March 2013 - a loss of £170,000; year ended 30 September 2013 -
a loss of £289,000), being the profit or loss attributable to ordinary
shareholders, and a weighted average of 21,960,284 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 EQUIVALENTS
31-Mar 31-Mar 30-Sep
2014 2013 2013
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Increase in cash and cash equivalents in the 16 3 4
period
Cash and cash equivalents at beginning of (15) (19) (19)
period
Cash and cash equivalents at end of period 1 (16) (15)
5. COPIES OF THE INTERIM RESULTS
Copies of the half-yearly results will be available from the Company's
registered office FBC Studio 31, 40 Bowling Green Lane, London EC1R 0NE, and
will be available from the Company's website www.talenttv.com.
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