Interim Results - Replacement

Talent Group PLC 18 June 2003 For Immediate Release 18th June 2003 This announcement replaces the Talent Group Plc 'Interim announcement of results for the six month period ended 31st March, 2003 released on the RNS system under RNS No 4712M at 11.35 on 18th June, 2003. Certain typographical errors in the first announcement have been corrected. Talent Group Plc ('Talent' or 'the Company') Interim announcement of results for the six month period ended 31st March, 2003 Chairman's Statement I am pleased to report the results for the six month period ended 31st March, 2003. These results reflect a period of transition for your Company, following the reverse takeover of RMR plc by The Talent Group Limited whose subsidiary, Talent Television Limited is now the Company's principal operating subsidiary. The results of Talent Television Limited have been consolidated for the period following completion of the transaction on 23rd December last year. The results for the period under review show a loss before taxation for the period of £97,000 on a turnover of £1.55 million, giving a basic loss per share of 0.86p. No dividend is declared in respect of the period under review. The investment by Talent in its new childrens' programming division, Talent Kids, is now beginning to produce results. Progress has been made on the potential production of two new international series. One is with a major American childrens' channel and the other, a pre-teenage comedy called My Teen Genie, is set to be a co-production with Canadian and Japanese broadcasters. Talent TV continues to enjoy the success of its Test the Nation series of interactive tests for BBC1. More programmes are being planned for next year in the UK and a first programme is scheduled for production in Japan towards the end of 2003. However, as I mentioned in my last statement, the later than expected scheduling of the fourth series of The Villa has caused a delay in the possible commissioning of the fifth series. This will hold back the Company's financial performance in the second half of the financial year. In addition the current timing of productions is biased towards the first half of the financial year with only one Test the Nation planned for the period to the end of September. In the past six months your Company has continued to invest in good people. I am delighted to announce that the group has recruited David Sankey as new Head of Development. David was Head of Development Entertainment at LWT and joins Talent TV after spells at 19 TV (maker of Pop Idol) and Unique Group. Talent has an excellent management team, capable of taking advantage of both the structural and regulatory changes within the independent TV sector and this, together with the group's healthy cash position, leads your board to view the future with confidence. Robert Benton Chairman 18th June, 2003 Profit and loss account For the six months ended 31st March, 2003 6 months to 31st 7 months to 30 March September 2003 2002 (Unaudited) (Audited) £'000 £'000 Turnover 1,552 148 Cost of sales (1,254) (282) Staff costs -------- -------- Gross result 298 (134) Operating cost Goodwill write-off (374) (508) Restructuring costs (30) (100) Administrative expenses - (219) -------- -------- (404) (827) Operating loss (106) (961) Net interest 9 23 -------- -------- Loss before taxation (97) (938) Taxation - 322 -------- -------- Loss for the period (97) (616) ======== ======== Basic loss per share (pence) (0.86)p (10.1)p Diluted loss per share (pence) (0.77)p (9.90)p ======== ======== Group balance sheet As at 31st March, 2003 31st March, 2003 30th September, 2002 (Unaudited) (Unaudited) (Audited) (Audited) £'000 £'000 £'000 £'000 Fixed assets Tangible assets 29 - Goodwill 1,166 - -------- -------- 1,195 - Current assets Debtors 479 389 Work in progress 79 - Cash at bank and in 1,051 706 hand -------- -------- 1,609 1,095 Creditors: amounts falling due within one year (971) (348) -------- -------- Net current assets 638 747 -------- -------- Total assets less 1,833 747 current liabilities Creditors - amounts (20) (21) falling due after more than one year -------- -------- Net assets 1,813 726 ======== ======== Capital and reserves Called up share 6,310 6,110 capital Share premium account 11,634 10,650 Profit and loss (16,131) (16,034) account -------- -------- Shareholders funds 1,813 726 ======== ======== Consolidated cash flow statement For the six months ended 31st March, 2003 6 months to 7 months to 31st March, 30th September, 2003 2002 (Unaudited) (Audited) £'000 £'000 (906) Net cash outflow from operating activities (86) Returns on investments and servicing of finance Interest element of finance lease rentals (1) - Interest received 8 24 -------- -------- 8 23 -------- -------- Capital expenditure and financial investment Sale of tangible assets - 51 -------- -------- - 51 Acquisitions Purchase of subsidiary undertaking (150) - Cash acquired with subsidiary undertaking 573 - -------- -------- Net cash inflow from acquisitions 423 - -------- -------- Cash inflow/(outflow) before management of liquid (832) resources and financing 345 -------- -------- Increase/(Decrease) in cash 345 (832) ======== ======== Notes to the Interim Results 1. INTERIM RESULTS The interim financial statements do not comprise statutory accounts for the purposes of s240 of the Companies Act 1985. 2. TURNOVER AND LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION The results for the six months ended 31st March, 2003 are unaudited. As there are no results for the comparative period due to a change in the group's accounting reference date, the audited results for the seven months ended 30th September, 2002 have been shown. Since the acquisition of Talent Group Limited, the turnover and loss on ordinary activities before taxation is attributable to the production of television programmes (to 30th September, 2002: to the design and development of Internet applications). The loss on ordinary activities for the six months to 31st March, 2003 include expenses of £8,000 relating to discontinued activities of the former RMR Group. 3. GOODWILL Goodwill arising on the acquisition of Talent Group Limited is being written off on a straight line basis over ten years. 4. TAXATION The tax receivable in the period to 30th September, 2002 arose as a result of claims for Research and Development Tax Credits in respect of the two years ended 28th February, 2002 and the period ended 30th September, 2002. 5. LOSS PER ORDINARY SHARE The loss per share is based on a loss of £97,000 (30th September, 2002: £616,000), being the loss attributable to ordinary shareholders, and a weighted average of 11,177,514 (30th September, 2002: 6,110,284) ordinary shares. The diluted loss per share is based on the options granted at 30th September, 2002 adjusted for the capital restructuring and a time weighting of the options granted by the current Talent employee share option plan. 6. Reconciliation of movements in shareholders' funds 31st March, 30th September, 2003 2002 (Unaudited) (Audited) £'000 £'000 Loss for the financial period (97) (616) Issue of shares 1,184 - -------- -------- Net movement in shareholders' funds 1,087 (616) Shareholders' funds at 1st October, 2002 726 1,342 -------- -------- Shareholders' funds at 31st March, 2003 1,813 726 ======== ======== 7. Reconciliation of operating loss to Net cash outflow from operating activities 31st March, 30th September 2003, 2002 (Unaudited) (Audited) £'000 £'000 Operating loss (97) (961) Depreciation and impairment on tangible fixed 3 65 assets Impairment losses on fixed asset investments 3 - Goodwill amortisation 30 100 Work in progress write-off 22 - (Profit)on sale of tangible fixed assets - (35) Decrease in debtors (54) 127 Decrease in creditors 7 (202) -------- -------- Net cash outflow from operating activities (86) (906) ======== ======== 8. Reconciliation of net cash flow to movement in net funds 31st March,30th September, 2003 2002 (Unaudited) (Audited) £'000 £'000 Increase/(decrease) in cash in the period 345 (832) Capital element of finance leases and hire purchase - 23 contracts -------- -------- Movement in net funds in the period 345 (809) Net funds at 1st October 2002 706 1,515 -------- -------- Net funds at 31st March 2003 1,051 706 ======== ======== 9. Copies of Interim Results Copies of the Interim Results will be sent to shareholders shortly and will be available to members of the public from the Company's registered office, Lion House, Red Lion Street, London, WC1R 4GB. Enquiries Talent Group Plc Colin Nicholl Tel: 020 7659 2017 John East & Partners Limited John East Tel: 020 7628 2200 This information is provided by RNS The company news service from the London Stock Exchange

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