RNS Number:7906E
Handmade PLC
28 September 2007
For immediate release 28 September 2007
HandMade plc
("HandMade" or "the Company")
INTERIM RESULTS FOR SIX MONTHS ENDED 30 JUNE 2007
HandMade Plc (HMF.L), the rights ownership, film production, merchandising and
licensing company, announces today its interim results for the six months ended
30 June 2007.
Chairman's Statement
In the last six months, work has continued apace laying the foundations for the
continued growth of the Company.
This is the first set of reported results prepared in accordance with
International Financial Reporting Standards ('IFRS'). The overall impact of
conversion on our financial results was set out and fully explained in the IFRS
Conversion statement issued earlier today. Given that these are changes in
accounting policy only, there is no impact whatsoever on the operating
fundamentals or the underlying cash flows within the business.
The results for the six months ended 30 June 2007 are in line with the Board's
expectations. The Group made a loss before interest, tax, depreciation and
amortisation of #2.0 million (2006 #0.3 million) and the loss on ordinary
activities before taxation amounted to #3.7 million (2006 #0.4 million).
In my last chairman's statement, I set out all of our current projects and I am
pleased to report that they are all on target as planned and are expected to
generate significant revenue in 2008 and 2009 and thereafter. Several new and
exciting film projects are in negotiation and are expected to be announced
shortly.
We have been negotiating with a Jersey based fund, Horizon Media, who are
raising #25million with the stated intention of providing the Company with
production finance for its slate of films. This is an extremely important event
in the Company's growth strategy and reinforces its stated objective not to use
its own funds for production. The provision of any funding will greatly assist
us in achieving profitability of our films and will make us a serious player in
the UK production market.
We will be attending the American Film Market in October where our films are
sold to foreign buyers and if we do as well as we did at Cannes, substantial
revenue should be generated by 2008.
DIC Entertainment, our licensing agent for the merchandising of Eloise products,
has made good progress in securing licensing agreements which are expected to
generate substantial revenue for 2008 and 2009 and thereafter. Casting of our
movie, Eloise in Paris has commenced and production is expected to commence in
March 2008 with a theatrical release in Spring 2009. The film, along with a
planned animation series and Broadway show, will greatly assist DIC in promoting
Eloise merchandise as well as generating substantial revenue for the Company
from the projects themselves.
Your Board is looking forward to an exciting and profitable future.
P Meehan
28 September 2007
For more information please contact:
HandMade plc 20 7518 8230
David Ravden, CEO
Buchanan Communications 020 7466 5000
Tim Anderson, Mary-Jane Johnson
Canaccord Adams 020 7050 6500
Mark Williams
Consolidated income statement
Unaudited
Unaudited (Restated) (Restated)
Six months ended Six months Year ended 31
30 June 2007 ended 30 June December 2006
2006
#'000 #'000 #'000
Revenue 679 117 1,872
Cost of sales (436) - (1,453)
Gross profit 243 117 419
Administrative expenses (3,734) (534) (3,604)
Loss from operations (3,491) (417) (3,185)
Finance costs (185) (19) (215)
Finance income 1 - 12
Loss on ordinary activities before taxation (3,675) (436) (3,388)
Taxation 451 85 522
Loss for the period attributable to equity
holders of the Company (3,224) (351) (2,866)
Loss per share - basic and diluted (2.8)p (0.9)p (3.7)p
Consolidated Balance Sheet
Unaudited
Unaudited (Restated) (Restated)
31 December 2006
30 June 2007 30 June 2006
#'000 #'000 #'000
ASSETS
Non-current assets
Goodwill 12,157 9,581 12,157
Other intangible assets 35,475 38,163 36,982
Property, plant & equipment 96 - 80
47,728 47,744 49,219
Current assets
Trade and other receivables 3,349 628 2,754
Cash and cash equivalents - 4,539 2,937
3,349 5,167 5,691
TOTAL ASSETS 51,077 52,911 54,910
LIABILITIES
Current liabilities
Financial liabilities (2,953) (887) (2,023)
Trade and other payables (12,508) (2,157) (7,773)
Corporation tax - (150) -
(15,461) (3,194) (9,796)
Non-current liabilities
Financial liabilities (1,168) (2,000) (1,417)
Trade and other payables (2,012) (10,673) (8,417)
Deferred tax (10,614) (10,666) (11,065)
(13,794) (23,339) (20,899)
TOTAL LIABILITIES (29,255) (26,533) (30,695)
NET ASSETS 21,822 26,378 24,215
CAPITAL & RESERVES ATTRIBUTABLE TO EQUITY
HOLDERS OF THE COMPANY
Share capital 5,943 5,652 5,793
Share premium account 9,176 9,622 8,786
Merger reserve 21,832 21,459 21,832
Shares to be issued 300 - 300
Retained loss (15,429) (10,355) (12,496)
TOTAL EQUITY 21,822 26,378 24,215
Consolidated Cash Flow Statement
Unaudited
Unaudited (Restated) (Restated)
Six months ended Six months Year ended 31
30 June 2007 ended 30 June December 2006
2006
#'000 #'000 #'000
Cash flows from operating activities
Operating loss for the period (3,491) (417) (3,185)
Depreciation of tangible fixed assets 12 - 11
Amortisation of intangible fixed assets 1,507 150 1,423
Currency translation differences 13 - 2
Share based payment 291 - 374
Operating loss before changes in working (1,668) (267) (1,375)
capital
(Increase) / decrease in debtors (595) (902) 1,581
Decrease in creditors (1,725) (1,213) (1,697)
Net cash flows from operations (3,988) (2,382) (1,491)
Income taxes paid - - (53)
Net cash flows from operating activities (3,988) (2,382) (1,544)
Investing activities
Acquisition of subsidiaries net of cash
acquired
- 9 (911)
Purchases of property, plant & equipment (28) - (88)
Purchases of intangible assets - (100) (100)
Interest received 1 - 12
Net cash used in investing activities (27) (91) (1,087)
Financing activities
Issue of ordinary shares net of issue costs 540 9,148 9,148
Loans advanced in the period 627 - 700
Loans repaid in the period - (5,067) (7,125)
Interest paid (164) (19) (105)
Net cash from / (used in) financing 1,003 4,062 2,618
Net (decrease) / increase in cash (3,012) 1,589 (13)
Cash at the beginning of the period 2,937 2,950 2,950
Cash at the end of the period (75) 4,539 2,937
Notes to the Consolidated Interim Statements
For the six months ended 30 June 2007
1 General information
HandMade plc ('HandMade') is a public limited company ('the Company')
incorporated in the United Kingdom under the Companies Act 1985 (registration
number 3270629). The Company is domiciled in the United Kingdom and its
registered address is 1 Park Place, Canary Wharf, London E14 4HU. The Company's
ordinary shares are traded on the Alternative Investment Market ('AIM'). Copies
of this Interim Report, or of the Annual Report and Accounts for the year ended
31 December 2006, are available on the Investor Relations section of the
Company's website at www.handmadeplc.co.uk.
2 Basis of accounting
HandMade has historically prepared its accounts under UK Generally Accepted
Accounting Practice ('UK GAAP'), however, as required by AIM rules, HandMade
will in future prepare its results under International Financial Reporting
Standards and International Financial Reporting Council 'IFRIC' interpretations
as adopted by the European Union ('IFRS'). HandMade has adopted IFRS with effect
from 1 January 2006. The Company will apply IFRS in its financial statements in
its Annual Report for the year ended 31 December 2007. Therefore these interim
statements for the six months ended 30 June 2007 are prepared using accounting
policies in accordance with IFRS that are expected to be applicable to the
financial statements for the year ended 31 December 2007.
These standards remain subject to ongoing amendment and/or interpretation and
are therefore still subject to change. Accordingly, information contained in
these interim financial statements may require to be updated for subsequent
amendments required to IFRS required for first time adoption or for new
standards issued after the balance sheet date.
The basis of preparation and accounting policies followed in the Interim Report
differ from those set out in the Annual Report and Accounts for the year ended
31 December 2006, which were prepared in accordance with UK GAAP. As permitted
this report has not been prepared in accordance with IAS34 'Interim Financial
Reporting'.
A detailed explanation of the impact of the transition from UK GAAP to IFRS,
setting out the restatement of the comparatives for the six months ended 30 June
2006 and the year ended 31 December 2006, was provided in a statement of
conversion, and issued to the Stock Exchange on 28 September 2007. Details of
the significant accounting policies used in the preparation of the company's
reported results under IFRS and therefore applied in the preparation of this
Interim Report were also provided within the statement of conversion. Copies of
the statement of conversion are available on the Investor Relations section of
the Company's website (www.handmadeplc.co.uk).
This statement does not comprise statutory accounts as defined in Section 240 of
the Companies Act 1985. The financial information for the year ended 31
December 2006 is a restated extract from the latest company accounts amended as
required on transition to IFRS. Statutory financial statements for the year
ended 31 December 2006, prepared in accordance with UK GAAP, on which the
auditors gave an unqualified opinion, did not include references to any matters
to which the auditors drew attention by way of emphasis without qualifying their
reports and did not include a statement under section 237(2) or (3) of the
Companies Act 1985, have been filed with the Registrar of Companies. The results
for the six months to 30/06/07 and 30/06/06 are unaudited.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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