Interim Results
Boomerang Plus PLC
25 February 2008
Date: 25 February 2008
On behalf of: Boomerang Plus plc ("Boomerang", "the Company,
or "the Group")
Emabargoed until: 0700hrs
Boomerang Plus plc
Interim Results
Boomerang Plus plc (AIM: BOOM.L), a profitable and vertically integrated,
multi-genre, independent television production group based in Cardiff, Wales,
today announces its inaugural set of unaudited interim results for the six
months ended 30 November 2007 since its listing on AIM.
Financial Highlights
• Turnover increased 112 per cent. to £10.75m (2006: £5.08m)
• Operating profit before exceptional items increased 167 per cent.
to £1.01m (2006: £0.38m)
• Profit before tax and exceptional items increased 159 per cent. to £0.94m
(2006: £0.36m)
Operational Highlights
• Successful admission to AIM following a £3 million placing
• Significant recommissions won from Channel 4 and S4C in drama and
extreme sports, expected to contribute over £4 million in revenues over the next
two financial years
• Production commenced of "Planed Plant", the two year children's
television series for S4C also worth £4 million over the next two financial
years. The contract was won in open tender against strong competition which
included two of the UK's largest television production companies.
• Continuing investment in production and post-production facilities, new
media opportunities and creative development
Huw Davies, Chief Executive Officer of Boomerang Plus, commented:
"The six months to November 2007 has been transformational for the Group
following its successful listing on AIM last year. These strong interim results
reflect the organic growth and development of the Group.
"We believe that we are well placed to build a substantial independent
television production company with quality earnings while adding key
acquisitions that consolidate our position in the market."
- Ends -
For further information, please contact:
Boomerang Plus plc Via Redleaf Communications
Huw Davies, Chief Executive
Mark Fenwick, Finance Director
Evolution Securities Limited 020 7071 4300
Tom Price/ Jeremy Ellis
Redleaf Communications 020 7822 0200
Emma Kane/ Sanna Lehtinen/ Anna Dunkin boomerang@redleafpr.com
Notes to Editors:
• The Group, founded in 1994, has extensive experience in producing
content in a variety of genres, including youth programming, lifestyle, music,
entertainment, children's programming, extreme sports and drama
• The Group has good revenue visibility as a high proportion of its
budgeted revenue is contracted with broadcasters
• The market for independent television production companies in the
Nations and Regions has grown following quotas from the regulator Ofcom, which
require that, depending on the broadcaster, between 10 per cent. and 50 per
cent. of qualifying programming hours must be sourced from outside the M25
boundary
• Boomerang is ranked in the top five independent television
production companies, by revenue, in the Nations and Regions according to the
Broadcast Survey (Nations and Regions) 2007
• The Board's strategy is both to achieve strong organic growth by
leveraging the Group's existing customer base coupled with strategic
acquisitions, with a view to becoming a major supplier to UK networks looking to
satisfy their Nations and Regions quotas
• Boomerang is well placed to participate in the consolidation of
independent production companies across the UK. Target companies which meet the
acquisition criteria will have a strong track record, which will assist the
Group to grow further, outside Wales
Chairman's Statement
I am pleased to present the Group's interim results for the six months ended 30
November 2007.
These are Boomerang's maiden results since the flotation on AIM in November 2007
and the first period of trading for the enlarged Group, following the
acquisitions of Mwnci and Apollo in 2006 and 2007. The Group has grown
substantially over the period both organically and as a result of the recent
acquisitions.
Our continuing investment in production and post production facilities ensures
we have the latest technology and infrastructure to support the rapid expansion
of the Group, enabling us to provide real value for money to our customers. In
addition, operational synergies within the Group provide significant development
benefits to our customers and career progression for our staff.
As a creative business, our staff are key to our success and we will continue to
invest substantially in their training and development rather than relying on
simply buying in talent. We believe that this continuing investment will improve
the industry's skills base, particularly in Wales, and provide for the long term
success of Boomerang.
Organic growth and the acquisitions made to date have created a well diversified
Group, which is amongst the largest Nations and Regions television production
companies in the UK, producing across a wide variety of genres including
entertainment, drama, lifestyle, children's, sports and factual programming for
television.
We will continue to invest in new markets such as talent management, through our
Boom Talent subsidiary and new media opportunities such as our "fso4.com"
website which accompanies our Royal Television Society award winning "Freesports
on 4" extreme sports show for Channel 4 which has just been recommissioned for a
seventh series.
Financial Review
Following the acquisitions and investment in development in 2006 and 2007, the
six months to 30 November 2007 was a period of high growth with turnover
increasing 112 per cent to £10.75m (2006: £5.08m) and operating profits before
exceptional items increasing 167 per cent to £1.01m (2006: £0.38m). Exceptional
items of £0.59m relate to the costs associated with listing on AIM in November
2007.
Profit before tax and the exceptional items was £0.94m compared with £0.36m for
the same period last year, representing an increase of 159 per cent. Profit
before tax for the period after exceptional items was £0.34m (2006: £0.36m).
The Group had net cash of £4.42m at 30 November 2007 (2006: £2.48m) reflecting
proceeds of £2.3m from the IPO, net of expenses. Deferred consideration payments
in respect of acquisitions in prior periods of £0.64m and debt repayments of
£0.43m were also made during the period. In addition, the Group has incurred
capital expenditure of £0.26m over the six months to 30 November 2007
principally on new studios and office space to service the tender won from S4C
to produce "Planed Plant", the daily children's continuity links.
Programming
All of our operating subsidiaries (Boomerang, Fflic, Alfresco and Apollo) have
contributed towards a strong portfolio of programmes for our broadcast customers
during the period across many genres. Highlights include:
Drama
The first series of both "Teulu", a 10 part 60 minute drama set around a doctors
surgery in Aberaeron and "2 Dy a Ni" a 13 part 30 minute teen drama set in a
foster home in the Welsh valleys have both been filmed in the period for S4C and
both have been subsequently recommissioned. Apollo have filmed a 90 minute film
for S4C entitled "Martha, Jac a Sianco" and are currently entering the
production phase of the third series of their Rose d'Or award winning drama, "
Con Passionate" which follows a Welsh male voice choir.
Boomerang is also in production on a major slate of 12 one-off dramas for S4C
the first of which, "Gari Tryfan" was transmitted recently.
Comedy and Entertainment
Alfresco produced "PC Leslie Wynne Show" and "Eleri Sion Show" for S4C during
the period and is in production for the second series of "Codi Canu" which
follows a number of Rugby supporter's choirs and a major travel quiz show for
S4C.
For E4, Boomerang produced "Mayhem Makers" which was part of E4's comedy strand,
"Funny Cuts". Showcasing new on-screen talents plus a first time director the
project is currently in series development with E4/Channel 4.
Lifestyle
Fflic are currently producing another season of their high end, lifestyle
programming for S4C; "04 Wal" which looks at contemporary and period
architecture and design, "Ty Cymreig" which investigates historical and
vernacular house building and "Cwpwrdd Dillad" which looks at an individual's
life through their wardrobe.
Alfresco have delivered another series of "Stories from the Street" for ITV
Wales which looks at communal and community buildings and this production has
been recommissioned for a further series.
Sports
Boomerang's Extreme Sports department completed the sixth series of the Royal
Television Society's award winning "Freesports on 4" for Channel 4 and has been
recommissioned for a seventh series. The department is also currently in
production of a third series of "Freeride" for ITV Wales and is producing an
extreme sports series for S4C.
A second series of "Rasus ar Garlam" which follows the Welsh point to point
season is also in production for S4C.
Music
Boomerang is currently in production for another series of its award winning
late-night youth music show "Bandit" and the new spin off series, "Nodyn".
Boomerang is also currently in production of a second series of "Unsigned" which
showcases unsigned local bands for ITV Wales.
Childrens
On 29 October 2007, Boomerang commenced production of the two year, £4m
contract, for S4C's "Planed Plant" children's continuity links. This contract
was won in open tender against strong competition which included two of the UK's
largest production companies.
This commission has strengthened further the reputation of the Group,
principally through Fflic and Apollo, in children's programming. Series
currently in production include "Stwffio", "Hip New Sgip?" and "Dawnstastig".
These along with a number of new series commissioned for 2008 make the Group one
of the largest children's producers in the UK.
Events
In July 2007 Boomerang produced the live broadcast of the "Royal Welsh
Agricultural Show" for the second year of a four year contract with S4C which
included over 60 hours of live TV broadcast, live web streaming and interactive
coverage.
Post Production
The acquisition last year of Mwnci, an editing services company based in
Cardiff, almost doubled the capacity of Boomerang's post production department.
In addition a second, high end, dubbing suite has been added this year. These
cutting edge facilities provide a quality finish to many of the productions
across the Group and for external clients such as the BBC. Significant
investment in post production services has enabled us to accelerate our training
of new technical staff, improve the quality of our programmes and provide real
value for money for our clients.
Radio
The Group continues to supply a diverse range of radio programmes for BBC Radio
Wales and Radio Cymru and content to Radio 2 and 4.
Talent management
Boom Talent was established in March 2007 as a management company representing
actors and presenters in film, television, theatre, radio, corporate and voice
over work. Boom Talent has continued to build its presence during the period and
is gaining a national reputation.
New media
With our new media partner, Cube Interactive, we continue to explore and develop
opportunities in new media including websites, web streaming and interactive
media. Significant interactive contracts include content for the Royal Welsh,
Urdd Eisteddfod and Planed Plant.
In addition, during the period we launched the first stage of our "fso4.com"
freesports website associated with our "Freesports on 4" extreme sports series
for Channel 4.
Outlook
Our position as a multi-genre independent television production company based in
the Nations & Regions makes us well placed to take advantage of the regulated
market in which we operate.
Historically, a high proportion of the Group's programmes are recommissioned by
the Broadcasters and this trend is continuing, providing the Group with
visibility not often experienced elsewhere in the industry.We have good
visibility over revenues for both the second half of the current financial year
and for the next financial year.
Consolidation is continuing in the sector and we believe is unlikely to stop in
the near future. In addition to growing our business organically, we intend to
continue to look for acquisition opportunities, in key genres and new media that
can add value for shareholders.
Roger Moore
Non-Executive Chairman
22 February 2008
Condensed Consolidated Income Statement
Six months ended 30 November 2007 (unaudited)
Note Six months Six months
ended 30 ended 30 Year ended
November November 31 May
2007 2006 2007
£'000 £'000 £'000
Revenue 10,748 5,080 10,459
Cost of sales (8,921) (4,112) (8,343)
Gross profit 1,827 968 2,116
Administrative expenses
Other administrative expenses (838) (596) (1,311)
Costs associated with AIM listing (592) - -
Goodwill and other intangibles amortisation (19) (18) (56)
Equity settled share based payments (13) - (15)
Total administrative expenses (1,462) (614) (1,382)
Other operating income 36 25 72
Share of results of joint ventures 19 - 20
Provision for impairment of investment in - (102)
associate
Operating profit 420 379 724
Investment income 6 15 38
Finance costs (82) (33) (82)
Profit before tax 344 361 680
Tax on profit on ordinary activities 2 (296) (125) (301)
Profit for the period 48 236 379
Attributable to:
Equity holders of the parent 48 216 345
Minority interests - 20 34
48 236 379
Earnings per share 3
Basic 0.71p 3.54p 5.65p
Diluted 0.67p 3.40p 5.31p
All activities derive from continuing operations.
There have been no recognised gains and losses for the current or the prior
financial year other than as stated in the income statement and, accordingly, no
separate statement of total recognised income and expense is presented.
Condensed Consolidated Balance Sheet
As at 30 November 2007 (unaudited)
30 30 31
November November May
2007 2006 2007
£'000 £'000 £'000
NON-CURRENT ASSETS
Goodwill 2,060 1,309 2,060
Other intangible assets 1,213 659 1,225
Property, plant and equipment 1,649 1,298 1,339
Investments 102 100 83
5,024 3,366 4,707
CURRENT ASSETS
Inventories 4 1 5
Trade and other receivables 3,151 1,793 1,817
Cash and cash equivalents 4,416 2,475 3,935
7,571 4,269 5,757
TOTAL ASSETS 12,595 7,635 10,464
CURRENT LIABILITIES
Trade and other payables 3,362 2,193 3,934
Interest-bearing loans and borrowings 261 361 421
Deferred consideration 356 501 928
Tax liabilities 643 384 423
4,622 3,439 5,706
NON-CURRENT LIABILITIES
Interest-bearing loans and borrowings 450 421 272
Other payables 33 32 44
Deferred tax liabilities 157 123 81
Deferred consideration 234 - 306
874 576 703
TOTAL LIABILITIES 5,496 4,015 6,409
NET ASSETS 7,099 3,620 4,055
Condensed Consolidated Balance Sheet
As at 30 November 2007 (unaudited)
30 30 31
November November May
2007 2006 2007
£'000 £'000 £'000
EQUITY
Share capital 89 66 68
Share premium account 3,931 969 969
Merger reserve 1,217 744 1,217
Retained earnings 1,862 1,657 1,801
Equity attributable to equity holders of the parent 7,099 3,436 4,055
TOTAL EQUITY 7,099 3,436 4,055
Minority interest - 184 -
7,099 3,620 4,055
These financial statements were approved by the Board of Directors on
Signed on behalf of the Board of Directors
H E Davies M W Fenwick
Director Director
Condensed Consolidated Cash Flow Statement
As at 30 November 2007 (unaudited)
30 30 31
November November May
2007 2006 2007
£'000 £'000 £'000
NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES
(1,342) 378 2,379
INVESTING ACTIVITIES
Interest received 6 15 38
Purchase of property, plant and equipment (255) (19) (109)
Disposal of subsidiary - - 109
Acquisition of subsidiaries - net cash outflow arising on acquisition (2) (133) (106)
Acquisition of subsidiaries - deferred consideration payments (643) (132) (530)
Acquisition of associates - deferred consideration payments - - (34)
Acquisition of intangible fixed assets - - (15)
Purchase of programmes catalogue (6) - (11)
Proceeds on disposal of property, plant and equipment 175 1 2
NET CASH USED IN INVESTING ACTIVITIES (725) (268) (656)
FINANCING ACTIVITIES
Repayments of obligations under finance leases (124) (54) (193)
Repayment of borrowings (310) (5) (16)
Proceeds on issue of preferred share capital 2,982 - -
Preferred dividends paid - - (28)
Grants received - 12 37
NET CASH USED IN FINANCING ACTIVITIES 2,548 (47) (200)
NET INCREASE IN CASH AND CASH EQUIVALENTS 481 63 1,523
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 3,935 2,412 2,412
CASH AND CASH EQUIVALENTS AT END OF YEAR 4,416 2,475 3,935
Condensed Consolidated Statement of Changes in Equity
Six months ended 30 November 2007 (unaudited)
Share Total Total
Share premium Merger Retained Minority equity
capital account reserve earnings interest
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 June 2006 66 969 744 1,441 3,220 - 3,220
Profit for the financial period - - - 216 216 20 236
Acquisition of minority - - - - - 164 164
interest
Balance at 30 November 2006 66 969 744 1,657 3,436 184 3,620
Profit for the financial period - - - 129 129 14 143
New shares issued 2 - 473 - 475 - 475
Equity-settled share-based 15 15
payments
- - - 15 -
Disposal of minority interest - - - - - (198) (198)
Balance at 31 May 2007 68 969 1,217 1,801 4,055 - 4,055
Profit for the financial period - - - 48 48 - 48
New shares issued 21 2,962 - - 2,983 - 2,983
Equity-settled share-based 13 13
payments
- - - 13 -
Balance at 30 November 2007 89 3,931 1,217 1,862 7,099 - 7,099
The Group has taken advantage of section 131 of the Companies Act 1985 and so
the excess over the nominal value of shares issued other than for cash has been
allocated to the merger reserve.
1. BASIS OF PREPARATION AND ACCOUNTING
The comparative figures for the financial year ended 31 May 2007 are extracted
from the Group's statutory financial statements for that financial year. Those
financial statements have been reported on by the Group's auditors and delivered
to the Registrar of Companies. The report of the auditors was unqualified and
did not contain a statement under section 237 (2) or (3) of the Companies Act
1985.
Copies of the Annual Report for 2007 are available from the Company's registered
office by applying to the Company Secretary, Mark Fenwick.
The interim results for the six months ended 30 November 2007 and 30 November
2006 have not been audited or reviewed by the auditors. The interim results have
been prepared on a basis consistent with the accounting policies disclosed in
the Group's annual report for the year ended 31 May 2007. The financial
information set out above does not constitute full financial statements as
defined by section 240 of the Companies Act 1985.
In the current financial year the Group will adopt International Financial
Reporting Standard 7 "Financial instruments: Disclosures" IFRS 7 for the first
time. As IFRS 7 is a disclosure standard, there is no impact on the change in
accounting policy on the half-yearly financial report. Full details of the
change will be disclosed in our annual report for the year ended 31 May 2008.
2. TAX
Taxation for the six month period is charged at the best estimate of the average
annual effective income tax rate expected for the full year, applied to the
pre-tax income of the six month period.
30 30 31
November November May
2007 2006 2007
£'000 £'000 £'000
UK taxation at standard rate 220 125 343
Deferred taxation 76 - (42)
296 125 301
3. EARNINGS PER SHARE
30 30 31
November November May
2007 2006 2007
£'000 £'000 £'000
Profit for the year (£'000) 48 216 345
Weighted average number of ordinary shares 6,763,226 6,093,190 6,104,348
Dilutive weighted average number of shares 7,193,869 6,345,287 6,496,508
Earnings per ordinary share - basic 0.71p 3.54p 5.65p
Earnings per ordinary share - dilutive 0.67p 3.40p 5.31p
4. SHARE CAPITAL
During the period the Group issued 2,389,353 1p ordinary shares for net
consideration of £2,983,000.
5. notes to the condensed consolidated cash flow statement
30 30 31
November November May
2007 2006 2007
£'000 £'000 £'000
Profit from operations 420 379 724
Adjustment for:
Impairment of non current asset investment - - 102
Amortisation of intangible fixed assets 22 22 60
Depreciation of property, plant and equipment 222 161 368
Profit on property, plant and equipment disposals - - (2)
Government grants (10) (7) (16)
Results of joint venture (19) - (14)
Equity-settled share-based payments 13 - 15
Operating cash flows before movement in working capital 648 555 1,237
(Increase)/decrease in receivables (1,335) (117) 378
(Decrease)/increase in payables (574) 148 1,251
Decrease/(increase) in inventory 1 - (4)
Cash generated by operations (1,260) 586 2,862
Income taxes paid - (175) (409)
Interest paid (82) (33) (74)
Net cash (outflow)/inflow from operating activities (1,342) 378 2,379
This information is provided by RNS
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