Half-yearly Report
25 June 2010
Talent Group plc
("Talent" or the "Company" or the "Group)
Half-yearly results for the six months ended 31 March 2010
CHAIRMAN'S STATEMENT
Regular readers of my recent Chairman's Statements for the Talent Group will be
familiar with my bemoaning the current difficult trading conditions for the
independent television sector. Although these conditions largely persist, the
efficiency measures the Group has implemented are now reflected in the
Company's interim results for the six months ended 31 March 2010. These show
turnover of £225,000 (2009: £303,000), gross profit of £115,000 (2009: £
174,000), and a loss before and after taxation of £202,000 (2009: £343,000).
The loss per share was 1.15p (2009: 2.06p).
Whilst the significant reduction in the loss before taxation is a welcome first
step in our drive to return the Group to profitability, the drop in turnover
for the first six months of the year to only £225,000 underlines the continuing
fragile market conditions in which we operate. During this period Talent
Television Limited ("Talent Television") successfully produced the first
National Schools Quiz, which involved over seven thousand primary school
children across the country competing simultaneously in a pioneering,
interactive competition. Our regional subsidiary, Talent Television South
Limited, delivered a highly-acclaimed one hour documentary on the Krays for the
Crime and Investigation Network.
Development work continued on a number of other projects during the period and
in May 2010 we were able to announce that Talent Television had been contracted
by ITV to co-produce, with event organizers Aura Entertainment, a 90 minute
television entertainment special based on a brand new event entitled A:3K
Football, which brings together six of the world's greatest footballers in a
skills competition. Participants include Wayne Rooney, Cesc Fabregas, Didier
Drogba, and Christiano Ronaldo. The event takes place on 17 July 2010 and is
scheduled to be broadcast on ITV later in the month, so will fully impact the
Company's results for the second half of the financial year.
Progress on other projects is encouraging, but the timing of these is such
that, even if confirmed, they will have little effect on the results for the
current financial year. Our hope is that they provide a strong platform for
future growth.
Terry Bate
Chairman
25 June 2010
FURTHER ENQUIRIES
Talent Group plc
Tony Humphreys (Managing Director) 020 7822 3900
Merchant John East Securities Limited
John East / Simon Clements 020 7628 2200
CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2010
Six months Six months Year
ended ended ended
31-Mar 31-Mar 30-Sep
2010 2009 2009
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Revenue 225 303 644
Cost of sales (110) (129) (447)
Gross profit 115 174 197
Administrative expenses (296) (498) (865)
Finance income - 1 1
Finance costs (21) (20) (41)
Loss before taxation (202) (343) (708)
Income tax expense - prior year - - -
-
current year - - -
Loss for the period (202) (343) (708)
Basic loss per share (pence) (1.15p) (2.06p) (4.25p)
Diluted loss per share (pence) (1.13p) (1.96p) (4.10p)
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2010
31-Mar 31-Mar 30-Sep
2010 2009 2009
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000 £'000 £'000 £'000
Assets
Non-current Assets
Goodwill 1,082 1,082 1,082
Other intangible assets 28 34 31
Property, plant & equipment 30 58 34
1,140 1,174 1,147
Current assets
Inventories 41 71 57
Trade receivables 16 124 42
Cash & cash equivalents 1 121 7
58 316 106
Total assets 1,198 1,490 1,253
Equity and liabilities
Equity
Share capital 6,329 6,315 6,315
Share premium 11,731 11,675 11,675
Share option reserve 129 123 126
Retained earnings (18,072) (17,505) (17,870)
Total equity 117 608 246
Current liabilities
Bank overdraft 31 - 28
Borrowings 700 700 700
Trade & other payables 350 182 279
Total liabilities 1,081 882 1,007
Total equity & liabilities 1,198 1,490 1,253
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2010
Six months Six months Year
ended ended ended
31-Mar 31-Mar 30-Sep
2010 2009 2009
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Cash flows from operating activities
Loss before taxation (202) (343) (708)
Adjustments for:
Depreciation of tangible assets 5 4 23
Amortisation of intangible assets 3 3 6
Share option reserve 3 3 -
Interest received - (1) (1)
Interest paid 21 20 41
(170) (314) (639)
Decrease in trade and other 26 424 506
receivables
Decrease/(increase) in inventories 16 (3) 11
Increase/(decrease) in trade and
other payables 71 (232) (129)
113 (125) (251)
Tax refund received - - -
Tax paid - - -
Net cash flows from operating (57) (125) (251)
activities
Cash flows from investing activities
Purchase of property, plant and (1) (13) (8)
equipment
Interest received - 1 1
Net cash used in investing activities (1) (12) (7)
Cash flows from financing activities
Proceeds from issue of shares 70 - -
Proceeds from borrowings - 100 100
Interest paid (21) (20) (41)
Net cash from financing activities 49 80 59
Net cash decrease in cash and cash (9) (57) (199)
equivalents
Cash and cash equivalents at (21) 178 178
beginning of period
Cash and cash equivalent at end of
period (30) 121 (21)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 MARCH
2010
Share Share Share Option Retained Total
Capital Premium Reserve Earnings
£'000 £'000 £'000 £'000 £'000
At 30 September 2009 6,315 11,675 126 (17,870) 246
Changes in equity 14 56 70
Loss for period - - - (202) (202)
Equity share option - - 3 - 3
recognised
At 31 March 2010 6,329 11,731 129 (18,072) 117
Share Share Share Option Retained Total
Capital Premium Reserve Earnings
£'000 £'000 £'000 £'000 £'000
At 30 September 2008 6,315 11,675 120 (17,162) 948
Changes in equity
Loss for period - - - (343) (343)
Equity share option - - 3 - 3
recognised
At 31 March 2009 6,315 11,675 123 (17,505) 608
NOTES TO THE HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2010
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 2009, 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 2009 and the
year ended 30 September 2009.
2. REVENUE AND LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
The results for the six months ended 31 March 2010 and 31 March 2009 are
unaudited. The audited results for the year ended 30 September 2009 have also
been shown.
By geographical 2010 2009
location
Revenue Loss Before Revenue Loss Before
£'000 Taxation £'000 Taxation
£'000 £'000
United Kingdom 225 (202) 295 (334)
United States - - - -
Asia - - 8 (9)
225 (202) 303 (343)
3. LOSS PER ORDINARY SHARE
The loss per share is based on a loss for the period of £202,000 (six months
ended 31 March 2009: a loss of £343,000; year ended 30 September 2009: a loss
of £708,000), being the loss attributable to ordinary shareholders, and a
weighted average of 17,631,822 (31 March 2009: 16,670,284; 30 September 2009:
16,670,284) ordinary shares.
The diluted 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
2010 2009 2009
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Decrease in cash and cash equivalents in the
period (9) (57) (199)
Cash and cash equivalents at beginning of (21) 178 178
period
Cash and cash equivalents at end of period (30) 121 (21)
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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