Half-yearly Report

25 June 2007 Talent Group Plc (the "Company") Interim Results For the six month period ended 31 March 2007 Chairman's Statement * Turnover reduced to £1,533,000 from £3,003,000 in the same period last year due principally to certain commissions falling into second half. Administrative costs in period reduced by 21 per cent. compared with the same period last year. * Re-commissioning of 'Test the Nation' (BBC ONE) and a new entertainment format 'Number One Fan' (ITV1). * Children's division bucks the market trend; new commissions and enters top ten producers chart. * International expansion continues. The first six months of the financial year have been a difficult period for your Company, with a number of commissions expected during the period under review falling into the second half. This has resulted in a fall in turnover to £1,533,000 against £3,003,000 in the same period last year. With tight control of administrative expenses (down 21 per cent. compared with the same period last year) the trading loss for the period (before exceptional items and taxation) was £155,000 compared to a profit before taxation for the same period last year of £69,000. After exceptional items of £170,000, the loss before taxation for the period was £325,000. The exceptional items related to the costs of an aborted potential acquisition. We believe strongly that it is in the Company's interests to expand by suitable acquisitions in order to best utilise our public status and therefore your board will continue to investigate suitable opportunities. I am pleased to report that trading in the second half looks much more encouraging, with news such as the re-commissioning of our primetime interactive entertainment event "Test the Nation - the National IQ Test" for BBC ONE for the summer and the commissioning by ITV 1 of a completely new quiz format called "Number One Fan" which we hope will follow in the footsteps of "Test the Nation", and become another long running franchise. In addition, I am very pleased to report that against the backdrop of what is currently a very difficult time for producers of children's television (which has been well documented in the press), the BBC has recently commissioned a further 40 episodes of our children's reality game show, "Best of Friends". This commission not only underlines how successful and enduring this franchise has become but the certainty of commission also enables us to plan for the further exploitation of the intellectual property rights. The series was launched internationally in April 2007 and we are currently in discussions to optimise the brand's licensing and merchandising potential. This commission will produce some income in 2007, but generate most of our return in the next financial year. Also, with a potential third series of Skatoony for Cartoon Network in prospect and the international launch imminent, our children's division which was named one of Britain's top ten Children's Producers in a recent survey is in good health. Expanding on the international theme, the Company continues to create a stronger presence in the US, following the successful reality series co-production "Corkscrewed" for Fox Reality in the US and Sky in the UK. The Company is now represented in the US by a major US agency in Los Angeles and has secured its first funded development for a brand new entertainment format, "Breaking Point", for one of the US networks. The development of this format will help to expand Talent's profile in the US. Further presentations of original formats specifically created for the US market are planned for later in the year. Your directors believe that trading results for the second half of the financial year will be much better than those for the first half, with additional income flowing into the next financial year. Alongside this, we continue to explore potential acquisition opportunities. For these reasons, we look forward to the next eighteen months with confidence. Robert Benton Chairman 25 June 2007 Group Income Statement For the six months ended 31 March 2007 6 months 6 months to to Year ended 31 March 31 March 30 September 2007 2006 2006 £'000 £'000 £'000 Revenue 1,533 3,003 5,418 Cost of sales (1,075) (2,149) (3,625) Gross profit 458 854 1,793 Administrative expenses (626) (795) (1,645) Finance income 13 10 25 (Loss)/profit before taxation & exceptional items (155) 69 173 Exceptional costs relating to an unsuccessful acquisition (170) - - Income tax expense - current tax - (11) (35) (Loss)/profit for the period (325) 58 138 Basic (loss)/profit per share (pence) (2.00p) 0.36p 0.85p Diluted (loss)/profit per share (pence) (1.91p) 0.34p 0.81p The results relate to the continuing activities of the group. Group Balance Sheet As at 31 March 2007 31 March 2007 31 March 2006 30 September 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 £'000 £'000 £'000 Assets Non-current Assets Goodwill 987 987 987 Other intangible assets 46 51 49 Property, plant & equipment 61 66 66 1,094 1,104 1,102 Current assets Inventories 44 41 39 Trade receivables 217 756 369 Cash & cash equivalents 477 937 1,216 738 1,734 1,624 Total assets 1,832 2,838 2,726 Equity and liabilities Equity Share capital 6,310 6,310 6,310 Share premium 11,634 11,634 11,634 Share option reserve 113 103 112 Retained earnings (16,736) (16,491) (16,411) Total equity 1,321 1,556 1,645 Current liabilities Trade & other payables 476 1,282 1,046 Current tax liability 35 - 35 Total liabilities 511 1,282 1,081 Total equity & liabilities 1,832 2,838 2,726 Group Cash Flow Statement For the six months ended 31 March 2007 6 months to 6 months to Year ended 31 March 31 March 30 September 2007 2006 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Cash flows from operating activities (Loss)/profit before taxation (325) 69 173 Adjustments for: Depreciation 9 7 20 Amortisation of intangible assets 3 3 5 Loss on disposal of assets - - 1 Interest received (14) (10) (25) (327) 69 174 Decrease/ (increase) in trade and other receivables 152 (20) 367 Decrease in inventories 3 - 2 Decrease in trade and other payables (577) (274) (474) (749) (225) 69 Tax paid - - (16) Net cash flows from operating activities (749) (225) 53 Cash flows from investing activities Purchase of property, plant and equipment (4) (30) (44) Interest received 14 10 25 Net cash used in investing activities 10 (20) 19 (Decrease)/increase in cash and cash (739) equivalents (245) 34 Cash and cash equivalents at beginning of 1,216 1,182 1,182 period Cash and cash equivalent at end of period 477 937 1,216 Group Statement of Changes in Equity For the six months ended 31 March 2007 Share Share Share Option Retained Capital Premium Reserve Earnings Total £'000 £'000 £'000 £'000 £'000 At 30 September 2006 6,310 11,634 112 (16,411) 1,645 Changes in equity Loss for period - - - (325) (325) Equity share option recognised - - 1 - 1 At 31 March 2007 6,310 11,634 113 (16,736) 1,321 Share Share Share Option Retained Capital Premium Reserve Earnings Total £'000 £'000 £'000 £'000 £'000 At 30 September 2005 6,310 11,634 95 (16,549) 1,490 Changes in equity Profit for period - - - 58 58 Equity share option recognised - - 8 - 8 At 31 March 2006 6,310 11,634 103 (16,491) 1,556 Notes to the Interim Financial Statements for the six months ended 31 March 2007 Interim Financial Statements The interim financial statements do not comprise statutory accounts for the purposes of s240 of the Companies Act 1985. Turnover and (loss)/profit on ordinary activities before taxation The results for the six months ended 31 March 2007 and 31 March 2006 are unaudited. The audited results for the year ended 30 September 2006 have also been shown. (Loss)/profit per ordinary share The (loss)/profit per share is based on a loss for the period of £325,000 (six months ended 31 March 2005: a profit of £58,000; year ended 30 September 2006: a profit of £138,000), being the loss attributable to ordinary shareholders, and a weighted average of 16,210,284 (31 March 2006: 16,210,284; 30 September 2006: 16,210,284) ordinary shares. The diluted (loss)/profit per share is based on a time weighting of the options granted by the current Talent Group employee share option plan. Reconciliation of net cash flow to movement in cash and cash equivalents 30 31 March 31 March September 2007 2006 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 (Decrease)/increase in cash and cash equivalents (739) (245) 34 Cash and cash equivalents at beginning of period 1,216 1,182 1,182 Cash and cash equivalents at end of period 477 937 1,216 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 Tony Humphreys (Managing Director) Frances Horrell (Finance Director) Tel: 020 7421 7800 John East & Partners Limited John East Simon Clements Tel: 020 7628 2200

Companies

Global Opportunities Trust (GOT)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today