Trading Update

RNS Number : 8280L

Boomerang Plus PLC

13 May 2010

 



Date:	13 May 2010
On behalf of:	Boomerang Plus plc ('Boomerang', 'the Company' or 'the Group')
Embargoed until	0700hrs

Boomerang Plus plc

Trading update

Boomerang Plus plc (AIM: BOOM.L), a multi-genre, independent television production group based in Cardiff, today announces an update on trading.

In its interim results announcement released on 25 February 2010, the Group highlighted that trading in the current financial year ending 31 May 2010 would be second half weighted. Indeed, the Group has had a busy final quarter with the commencement of a large number of projects including the children's service "Stwnsh" and drama series "Teulu 3" and "Alys" for S4C. Indus, the Group's recent acquisition was successfully integrated and it is in production of an exciting slate of programmes, including "Arctic" (with Bruce Parry) and "Snowdonia 1890".

However, a number of the Group's projects did not commence on schedule and certain revenues and profits which had been expected to fall within the current financial year will now be recognised in the year ending 31 May 2011.

In addition, the current year benefits expected from the Board's previously highlighted accelerated investment into programme development and the Group's new businesses in order to diversify revenues and increase its intellectual property library have been delayed.

As a result of these factors, the Boomerang board has reduced materially its expectations with regards the outturn for the Group for the year ending 31 May 2010.

The Group's financial position remains strong with positive cash reserves and no bank debt. The Group's revenue pipeline has now increased to over £57 million providing long-term visibility.

Huw Eurig Davies, Chief Executive Officer of Boomerang, commented:

"Whilst the slippage of some of our projects into the next financial year is frustrating, I am very pleased with progress made in diversifying the business through our investments in development and new businesses. Our increased pipeline of over £57 million, together with our strong balance sheet and positive cash reserves, underpins our future performance and provides a strong platform for growth."

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For further information, please contact:

Boomerang Plus plc                                                                   Via Redleaf Communications

Huw Eurig Davies, Chief Executive

Mark Fenwick, Finance Director

Altium Capital Limited (NOMAD)                                               Tel: [phone]

Tim Richardson / Melanie Szalkiewicz                                                               

Evolution Securities (Broker)

Adam Lloyd                                                                                   Tel: [phone]

Redleaf Communications (PR Adviser)                                   Tel: [phone]

Mike Ward/ Anna Dunkin                                                              [e-mail]     

Boomerang Plus plc:

§ Boomerang, founded in 1994, has extensive experience in producing content in a variety of genres, including extreme sports, youth programming, music, entertainment, children's programming, and drama.

§ 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 three independent television production companies, by revenue, in the Nations and Regions according to the Broadcast Survey (Nations and Regions) 2009. In the 2009 Indies League Table, Boomerang's hourly output was ranked second for Factual Entertainment, second for Childrens, and fifth for Sport - a position expected to improve with the addition of Indus to the Group (Broadcast 2010).

§ Boomerang'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.

 

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