TIDMBOOM
RNS Number : 2227Y
Boomerang Plus PLC
28 February 2012
28 February 2012
Boomerang Plus plc
('Boomerang', 'the Company' or 'the Group')
Interim Results
Boomerang Plus plc (AIM: BOOM.L), a profitable media investment
group, announces its interim results for the six months to 30
November 2011.
These interim results illustrate the successful transformation
of Boomerang into a higher-margin multi-genre, multi-platform media
group with increasingly diversified revenue streams.
FINANCIAL HIGHLIGHTS
-- Revenue of GBP15.99m (2011: GBP16.29m).
-- Gross profit up 14.1% to GBP2.83m (2011: GBP2.48m).
-- Gross margin up 16.5% to 17.7% (2011: 15.2%)
-- Adjusted EBITDA**up 10.6% to GBP1.36m (2011: GBP1.23m).
-- Adjusted operating profit* up 8% to GBP0.95m (2010: GBP0.88m).
-- Profit before tax of GBP0.71m (2011: GBP0.79m).
-- Adjusted basic EPS* up 15.5% to 7.44p (2011: 6.44p).
-- Cash and cash equivalents up 8% to GBP4.06m (2011: GBP3.76m).
OPERATIONAL HIGHLIGHTS
-- Acquisition of Oxford Scientific Films in June 2011.
-- Acquisition of Harlequin Talent Agency, through a joint
venture with Bryn Terfel, in July 2011.
-- Continued organic growth of Advertiser Funded Programming ("AFP").
-- Creation of Gorilla facilities group through merger of Mwnci
and Boomerang's in-house facilities.
-- Gorilla's acquisition and expansion of Bait Studio Limited, a graphics and VFX company.
OUTLOOK
-- Continuing growth in our Factual and AFP businesses.
-- Strong balance sheet to support future growth with net assets of GBP10m.
-- Current trading remains in line with Board's expectations
Huw Eurig Davies, Chief Executive Officer of Boomerang Plus,
commented:
"The acquisition of Oxford Scientific Films has accelerated
strong growth in our Network and AFP businesses as we continue to
diversify the Group's customer base and widen its intellectual
product base. This will continue to offset the impact of reduced
funding for S4C and provide us with future revenue growth and
opportunities to increase our gross profit margins. The Group will
also continue to look for further acquisitions that can add value
for shareholders in a fast-changing media marketplace."
* adjusted for professional fees in relation to corporate
transactions (2011 - GBP0.11m, 2010 - 0.01m), reorganisation costs
(2011 - GBP0.06m, 2010 - GBPnil), and amortisation of intangible
assets arising on business acquisitions (2011 - GBP0.01m, 2010 -
GBP0.01m).
**adjusted operating profit as defined above before depreciation
(2011 - GBP0.39m, 2010 - GBP0.34m) and other amortisation (2011 -
GBP0.02m, 2010 - GBP0.01m).
Contacts:
Boomerang Plus plc Tel : 029 2067 1500
Huw Eurig Davies, Chief Executive
Officer
Mark Fenwick, Finance Director
finnCap Limited Tel: 020 7600 1658
Geoff Nash/Charlotte Stranner
Simon Starr/Victoria Bates (broking)
Walbrook PR Ltd Tel: +44 (0)20 7933 8780
Paul Cornelius paul.cornelius@walbrookpr.com
About Boomerang Plus plc (www.boomerang.co.uk)
Boomerang Plus plc has strategic investments in a number of
complementary media businesses including production companies
Alfresco, Apollo, Boomerang, Bulb, Fflic, Indus and Oxford
Scientific Films; facilities companies Gorilla and Zoom;
multi-media publisher Boom Extreme Publishing; talent companies
Halequin and Boom Talent; event company Big Freeze Limited, and
education and corporate production business Media4.
Boomerang Plus's strategy is to continue to acquire, invest in
and develop media companies that complement the Group's existing
businesses, whilst also achieving strong organic growth.
Business Review
Financial Review
As highlighted in our 2011 preliminary results statement
released in September, the Group has had a strong first half of the
year. Headline revenues have been resilient during the period at
GBP16m (2011 - GBP16.3m), with the reductions arising from S4C's
reduced funding being largely offset by increases in organic
Network and AFP programming as well as the first full six month
contribution by Oxford Scientific Films acquired in June 2011.
The Group's key performance indicators are gross profit,
adjusted earnings before interest, tax, depreciation and
amortisation ("adjusted EBITDA**") and adjusted operating
profit.
Gross profit increased by 14.1% to GBP2.83m (2011 - GBP2.48m)
due to the accelerating contribution from our higher gross margin
Network and AFP programming businesses. Gross profit margin also
expanded 16.5% during the period to 17.7% (2011 - 15.2%), despite
continued downward pressure on overall programme budgets.
Adjusted EBITDA** increased by 10.6% to GBP1.36 million (2011 -
GBP1.23 million).
During the year the Group continued the restructuring and
relocation of its businesses, including relocating Oxford
Scientific Films to new premises in Warwick Street, London and the
merger of Mwnci and Boomerang's in-house facilities to create
Gorilla, the Group's post production and facilities business.
Following the implementation of IFRS 3 - Business Combinations,
professional fees in respect of acquisitions have been expensed in
the current period.
The above factors contributed to an increase in adjusted
operating profits* of 8% to GBP0.95 million (2011 - GBP0.88
million).
The Group's substantial capital expenditure programme of recent
years is now past its peak and capital expenditure reduced to
GBP0.32 million (2010 - GBP0.82 million) in the period to 30
November 2011. Finance lease repayments during the period were
GBP0.30 million (2010 - GBP0.29 million). The acquisition of Oxford
Scientific Films resulted in a net cash inflow of GBP0.18m and was
by means of the purchase of assets and certain liabilities
including GBP0.30 million in respect of a substantial back
catalogue. Therefore, cash and cash equivalents increased 8% to
GBP4.06 million as of 30 November 2011 (2010 - GBP3.76
million).
At 30 November 2011 the Group had net assets of GBP10 million
(2010 - GBP9.53 million). The Group has considerable headroom
within its current bank facilities together with long-term
relationships with its key customers. Due to the nature of the
Group's business, management has good visibility over its pipeline
of productions for the foreseeable future, which is fully funded by
its customers. The Group's forecasts and projections show that the
Group should be able to operate within the level of its current
facility.
* adjusted for professional fees in relation to corporate
transactions (2011 - GBP0.11m, 2010 - 0.01m), reorganisation costs
(2011 - GBP0.06m, 2010 - GBPnil), and amortisation of intangible
assets arising on business acquisitions (2011 - GBP0.01m, 2010 -
GBP0.01m).
**adjusted operating profit as defined above before depreciation
(2011 - GBP0.39m, 2010 - GBP0.34m) and other amortisation (2011 -
GBP0.02m, 2010 - GBP0.01m).
Operations
The Group continued to produce a strong, multi-genre portfolio
of multi-platform content for our broadcast and corporate customers
during the period.
Organic Network commissions during the period included the third
series of "Road to London 2012: That Paralympic Show", a
multi-platform magazine series covering the run up to the London
2012 Paralympic Games, and we are currently in production of series
4. We are currently in production of "Tales of Friendship with
Winnie the Pooh" a 72 x 5 minutes order for Disney Junior EMEA,
which coincides with a book of the same name. Other Disney work
included interstitial productions for Disney 365 on Cars 2 and Epic
Mickey.
AFP commissions during the period included a series of BT
Documentary films featuring their sponsored Paralympic athletes
including Oscar Pistorius; a high volume digital marketing campaign
for Bacardi Brands Global for a new Rum called Bacardi Oakheart; a
third year producing Relentless Freeze, Europe's biggest Snow and
Music Festival held annually in Battersea Power Station; major live
OB surfing events for Quiksilver including World Tour events
Quiksilver Pro France and Roxy Pro Biarritz; and a third season of
Nissan/Sony Playstation GT Academy, the virtual-to-reality motor
racing competition, once again hosted by F1 luminaries Eddie Jordan
and Johnny Herbert and filmed across Australia, New Zealand, Europe
and the UK, including for the first time a series for the USA
market.
Complementing this organic success the newly acquired Oxford
Scientific Films ("OSF") added to the existing Indus Fims creates a
substantial and growing Factual division. Indus has been very busy
during the period with exciting new commissions for the BBC and
paid development for Channel 4. They are about to deliver a
six-part series for BBC2 exploring the challenges facing the UK
fishing industry and are filming an observational series about how
London feeds itself, also for BBC2. Indus has also recently opened
an office in Bristol with new Executive Producer Lucy Carter on
board.
OSF delivered its first 3D production, Meerkats 3D to Sky and
National Geographic. The film aired in November 2011 in the UK and
is about to be released theatrically into museums worldwide. A
second 3D natural history film is in development with the same
partners. The second season of Fatal Attractions aired to strong
ratings on Animal Planet in the US and an uplift order for a
further 6 episodes has been received. Rory McGrath's Pub Dig, a new
4 part series blending history with archaeology and comedy went
into production for History UK and Channel 5. OSF received its
first orders from BBC1 for a broadcast pilot for a new medical
series called How to Beat.... featuring Harley Street doctors Dr
Jack Kreindler and Professor Greg Whyte; and a high end science
series. OSF is currently in pre-production on a high end
archaeology special for Channel 4 and Terra Mater; and a pilot for
a new series for Animal Planet US.
Boomerang has also produced a range of multi-genre programming
for the local Welsh Broadcasters, S4C and BBC Wales, during the
period. These include the "Stwnsh" and "Cyw" children's services;
drama series "Teulu"; factual entertainment series "Cariad@Iaith",
"Gwlad Beirdd", "Llais i Gymru", "Wales on Wheels", "Only Boys
Aloud 2" and "3Lle"; entertainmment series "Seren Rhos" and
"Noson"; factual series "Arts Review of the Year" and "Iris Prze";
music series "Bandit" and "Nodyn"; youth series "Gofod"; the Royal
Welsh show and sports series "Ras i Lundain" amongst others.
Post-production and facilities
On 5 September 2011, the Group announced that its
post-production subsidiary, Mwnci, had rebranded as Gorilla and
expanded to incorporate all of the Group's in-house facilities.
Gorilla will now be providing studios, dubbing, grading, graphics
and outside broadcast facilities to programme makers and producers
in addition to increasing its established range of editing
services. Gorilla will be one of the biggest facilities companies
outside London and the largest in Wales.
Gorilla acquired Bait Studio Limited during the period and is
investing further to create a substantial graphics and VFX
business.
Talent management
The joint investment into Harlequin Agency Limited, through a
50% joint venture with Bryn Terfel, will lead to a significant
increase in scale of our talent business and we have transferred
the trade of our existing Boom Talent to Harlequin in order to
maximise cost synergies and growth opportunities.
Segmental Information
As the majority of the Group's facilities will no longer be
fully integrated in the future, the Group anticipates making
segmental disclosures in its account for the year ended 31 May
2012.
Outlook
The acquisition of Oxford Scientific Films together with organic
growth in Network and AFP productions have all contributed to
diversifying the Group's customer base and widening its
intellectual product base. This will continue to drive further
growth in an increasingly global market and provide us with
opportunities to increase our gross profit margins.
The Group's pipeline of productions for the 2012 calendar year
remains in line with the Board's expectations and shows further
diversification of our customer base. This will both mitigate the
impact of S4C's reduced programming budgets following the
Government's Comprehensive Spending Review and deliver long
term-term benefits to the Group. We will continue to drive organic
growth and look for further acquisitions that can add value for
shareholders in the rapidly-changing media marketplace.
Huw Eurig Davies Mark Fenwick
Chief Executive Officer Finance Director
28 February 2012 28 February 2012
Condensed Consolidated Income Statement
Six months ended 30 November 2011 (unaudited)
Six months Six months
ended 30 ended 30 Year ended
November November 31 May
Note 2011 2010 2011
GBP'000 GBP'000 GBP'000
Revenue 15,984 16,295 26,933
Cost of sales (13,150) (13,811) (22,380)
Gross profit 2,834 2,484 4,553
Administrative expenses
Other administrative expenses (1,908) (1,631) (3,428)
Professional fees in relation
to corporate transactions (107) (10) (17)
Reorganisation costs (61) - -
Amortisation of intangibles arising
on business acquisitions (10) (10) (20)
Total administrative expenses (2,086) (1,651) (3,465)
Other operating income 31 37 76
Loss on disposal of fixed assets (8) - -
Share of results of joint ventures
and associates - (12) (30)
Operating profit 771 858 1,134
Investment income - 3 4
Finance costs (58) (73) (118)
Profit before tax 713 788 1,020
Tax on profit on ordinary activities 2 (228) (234) (469)
Profit for the period 485 554 551
Attributable to:
Equity holders of parent company 482 554 551
Minority interests 3 - -
485 554 551
Earnings per share 3
Basic 5.44p 6.21p 6.18p
Diluted 5.38p 6.13p 6.10p
Adjusted - basic 7.44p 6.44p 6.60p
Adjusted - diluted 7.36p 6.35p 6.51p
All activities derive from continuing operations.
The Group has no material items of comprehensive income in the
current or prior period other than the profit for the period and as
such has not presented a separate condensed consolidated statement
of comprehensive income.
Condensed Consolidated Balance Sheet
As at 30 November 2011 (unaudited)
30 30 31
November November May
2011 2010 2011
GBP'000 GBP'000 GBP'000
NON-CURRENT ASSETS
Goodwill 2,822 3,039 2,822
Other intangible assets 2,701 2,430 2,442
Property, plant and equipment 3,443 3,401 3,606
Investments 443 360 342
9,409 9,230 9,212
CURRENT ASSETS
Inventories 9 - 6
Trade and other receivables 3,255 3,461 4,064
Current tax assets - 219 -
Cash and cash equivalents 4,062 3,761 2,588
7,326 7,441 6,658
TOTAL ASSETS 16,735 16,671 15,870
CURRENT LIABILITIES
Trade and other payables 4,260 4,256 3,926
Current tax liabilities 457 374 232
Interest-bearing loans and borrowings 787 735 581
Deferred consideration 195 109 192
5,699 5,474 4,931
NON-CURRENT LIABILITIES
Interest-bearing loans and borrowings 319 634 634
Other payables 61 76 84
Deferred tax liabilities 204 219 264
Deferred consideration 433 734 426
1,017 1,663 1,408
TOTAL LIABILITIES 6,716 7,137 6,339
NET ASSETS 10,019 9,534 9,531
Condensed Consolidated Balance Sheet
As at 30 November 2011 (unaudited)
30 30 31
November November May
2011 2010 2011
GBP'000 GBP'000 GBP'000
EQUITY
Share capital 89 89 89
Share premium account 3,934 3,934 3,934
Merger reserve 1,217 1,217 1,217
Retained earnings 4,776 4,294 4,291
Equity attributable to equity holders
of the parent 10,016 9,534 9,531
Minority interests 3 - -
10,019 9,534 9,531
These condensed consolidated interim statements were approved by
the Board of Directors on 28 February 2012.
Signed on behalf of the Board of Directors
H E Davies M W Fenwick
Director Director
Condensed Consolidated Cash Flow Statement
Six months ended 30 November 2011 (unaudited)
Six months
ended 30 Six months Year ended 31 May
November ended 30 2011
Note 2011 November
2010
NET CASH INFLOW FROM OPERATING ACTIVITIES 4 1,724 1,473 833
INVESTING ACTIVITIES
Interest received - 3 4
Purchase of property, plant and equipment (101) (393) (531)
Acquisition of subsidiaries - net cash inflow arising on
acquisition 179 - -
Acquisition of subsidiaries - deferred consideration payments - (211) (229)
Acquisition of joint ventures and associates (101) - (1)
Acquisition of intangible fixed assets (2) - (49)
Proceeds on disposal of property, plant and equipment 84 7 10
NET CASH USED IN INVESTING ACTIVITIES 59 (594) (796)
FINANCING ACTIVITIES
Repayments of obligations under finance leases (309) (288) (659)
Grants received - 100 140
NET CASH USED IN FINANCING ACTIVITIES (309) (188) (519)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 1,474 691 (482)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,588 3,070 3,070
CASH AND CASH EQUIVALENTS AT END OF PERIOD 4,062 3,761 2,588
Condensed Consolidated Statement of Changes in Equity
Six months ended 30 November 2011 (unaudited)
Share
Share premium Merger Retained
capital account reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 June
2010 89 3,934 1,217 3,744 8,984
Profit for the financial
period - - - 554 554
Foreign exchange - - - (4) (4)
Balance at 30 November
2010 89 3,934 1,217 4,294 9,534
Loss for the financial
period - - - (3) (3)
Balance at 31 May
2011 89 3,934 1,217 4,291 9,531
Profit for the financial
period - - - 482 482
Foreign exchange - - - 3 3
Balance at 30 November
2011 89 3,934 1,217 4,776 10,016
The Group has taken advantage of section 612 of the Companies
Act 2006 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 interim financial information does not constitute statutory
accounts for the purpose of section 434 of the Companies Act 2006.
The figures for the year ended 31 May 2011 have been extracted from
the Group's audited accounts for that year. Those accounts have
been reported on by the Group's auditors and delivered to the
Registrar of Companies. The report of the auditors was (i)
unqualified, (ii) did not include a reference to any matters to
which the auditors drew attention by way of emphasis without
qualifying their report, and (iii) did not contain a statement
under section 498 (2) or (3) of the Companies Act 2006.
The interim financial information for the six months ended 30
November 2011 and 30 November 2010 has not been audited or reviewed
by the auditors. The interim results have been prepared using the
same accounting policies and estimation techniques that are
expected to apply at the year-end and is consistent with the
accounting policies disclosed in the Group's annual report for the
year ended 31 May 2011.
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.
31
30 November 30 November May
2011 2010 2011
GBP'000 GBP'000 GBP'000
UK taxation at standard rate 291 275 437
Deferred taxation (63) (41) 32
228 234 469
3. earnings per share
31
30 November 30 November May
2011 2010 2011
Earnings GBP'000 GBP'000 GBP'000
Profit for the period 485 554 551
Professional fees in relation to unsuccessful
corporate transactions 107 10 17
Reorganisation costs 61 - -
Amortisation of intangibles arising on
business acquisitions 10 10 20
Adjusted profit 663 574 588
Number of shares No. No. No.
Weighted average number of ordinary shares 8,914,731 8,914,731 8,914,731
Dilutive weighted average number of shares 9,011,143 9,036,676 9,031,436
Earnings per ordinary share - basic 5.44p 6.21p 6.18p
Earnings per ordinary share - diluted 5.38p 6.13p 6.10p
Adjusted earnings per share - basic 7.44p 6.44p 6.60p
Adjusted earnings per share - diluted 7.36p 6.35p 6.51p
4. notes to the condensed consolidated cash flow statement
31
30 November 30 November May
2011 2010 2011
GBP'000 GBP'000 GBP'000
Profit from operations 771 858 1,134
Adjustment for:
Amortisation of intangible fixed assets 32 29 57
Depreciation of property, plant and equipment 392 339 721
Loss on property, plant and equipment
disposals 8 - 15
Government grants (25) (33) (66)
Results of joint ventures and associates - 12 30
Minority interests (3) - -
Foreign exchange 10 (9) (13)
Operating cash flows before movement in
working capital 1,185 1,196 1,878
Decrease in receivables 396 724 312
Increase/(decrease) in payables 255 (397) (974)
(Increase)/decrease in inventory (3) 9 3
Cash generated from operations 1,833 1,532 1,219
Income taxes received/(paid) (62) 14 (288)
Interest paid (47) (73) (98)
Net cash inflow from operating activities 1,724 1,473 833
5. AVAILABILITY OF INTERIM RESULTS
A copy of the interim report will be available for members of
the public by application to the Company's Registered Office or on
the Company's website at www.boomerang.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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