TIDMIFM
4 March 2010
INTANDEM FILMS PLC
("Intandem" or "the Company")
(AIM: IFM),
Interim results for the six months ended 31 December 2009
Intandem a London based international film group, today announced its interim
results for the six months ending 31 December 2009.
Highlights
* Significant reduction in pre-tax loss of 71% to GBP179,000 (2009: GBP618,000);
* Profit of GBP254,000 on sale of 10% stake in Los Angeles publisher, Radical
Publishing Inc;
* Book profit of approximately GBP4million and elimination of GBP6million loan
post the period end on disposal of ownership rights in five films;
* Appointment to manage an additional thirteen new titles by US financial
institution;
* Four films in post-production to be aired at the Cannes Film Festival;
* Appointment as co-producer on "The Veteran" and "Ghost of Slaughterford",
both of which are expected to start production in June 2010;
* Strong slate of films in pipeline.
Gary Smith, Chairman and CEO of Intandem, commented:
"I am pleased to announce a much reduced loss before tax of GBP179,127 compared
with GBP617,757 for the same period last year. The Company has transformed its
balance sheet through the elimination of its bank overdraft and the repayment
of its outstanding loan, though the latter is not reflected in these results as
the agreement was completed post the 31 December 2010.
"Despite the difficulties facing the film financing industry over the past
eighteen months, Intandem is bucking the trend and progressing several films
into production.
"I would like to thank all our staff who continue to work diligently towards
the Company's success."
--ENDS-
Enquiries
Intandem Films plc Tel: 020 7851 3800
Gary Smith, Chief Executive
Broker and Nominated Adviser Tel: 020 7448 4400
Antony Legge, Astaire Securities PLC
Bishopsgate Communications Tel: 020 7652 3350
Robyn Samuelson/Siobhra Murphy
intandem@bishopsgatecommunications.com
CHAIRMAN'S STATEMENT
The actions taken by the Company during the six months to 31 December 2009 have
resulted in the transformation of Intandem's balance sheet. Firstly, the
Company eliminated its bank overdraft through the sale of the Company's
investment in Radical Publishing Inc for $750,000, resulting in a profit of
$450,000 (GBP254,000). Secondly, the Company negotiated the elimination of a GBP6
million loan in exchange for the disposal of its ownership rights in five
films, resulting in a GBP4 million book profit. The agreement was signed in
February 2010 and hence the transactions are not reflected in these results.
Intandem also completed its cost reduction exercise by moving to lower cost
premises following the expiration of the previous lease in November 2009.
The worldwide recession and credit squeeze affected the film industry
throughout the eighteen month period to 31 December 2009 with investors
reluctant to provide finance for film production. Despite this, I am delighted
to say that Intandem is now progressing several films into production, albeit
at lower budget levels than we are aiming to achieve. We are becoming more
hands on with producers on selected films which should result in greater
control over the quality and financing of the films we represent, and should
also lead to higher fees for Intandem as a result of the value we will be
adding.
Results
I am pleased to announce a much reduced loss before tax of GBP179,127 compared
with GBP617,757 (for the six months to 31 December 2009). The loss included
interest of GBP186,845 on the loan which has now been eliminated and as such
there will be no similar interest charges in the second half. Loss per share
was reduced to 0.22 pence against 0.74 pence for the same period last year.
Film Activity
The significance of the timing of films is that Intandem only receives its
executive producer fee when a film commences production and commission on sales
is only received when a film is delivered. Therefore, although Intandem is not
dependent on films' box office success, there can be a twelve to eighteen month
time lag before receiving revenue for work carried out.
Only one film, "Ways to Live Forever" commenced production during the six
months to 31 December, due for delivery in the second half of the financial
year.
It is with great pride that I also announce that "The Kid" has been invited to
the prestigious Edinburgh International Film Festival in June later this year.
During the period, the Company was appointed to manage the sales and
administration of a library of thirteen films owned by Arrowhead Target Fund
Limited. Since the period end, as part of the disposal deal mentioned above,
Intandem was appointed to manage the sales and delivery of a further the five
films, taking the number of films managed on Arrowhead's behalf to eighteen,
including "Johnny Mnemonic" (starring Keanu Reeves) and "I'll Sleep When I'm
Dead" (starring Clive Owen). Although revenues from these films won't be
significant during the current financial year, they will increase as licenses
become renewable in the future.
Outlook
As I reported at the time of the Company's annual general meeting in February
2010, Intandem has had a positive start to 2010. "The Kid" was shown at the
Berlin Film festival resulting in a sale for the UK release of the film and we
have a further four films in post-production which we expect to be shown at the
Cannes Film festival in May, including "Beneath Hill 60", "Ways to Live
Forever" and "Devil's Playground".
In addition, Intandem was appointed as co-producer for "The Veteran" and "Ghost
of Slaughterford", both of which are expected to start production in summer
2010.
The Company is currently negotiating financing for several other films and
expects at least four of them to commence production in the current calendar
year.
In conclusion, Intandem's balance sheet is now virtually debt free, we have a
library of approximately thirty films, costs are under control and we have a
strong slate of films in the pipeline for the future.
You can follow the Intandem's progress via the website at
www.intandemfilms.com.
Gary Smith
Chairman
3 March 2010
CONSOLIDATED BALANCE SHEET
HALF YEAR ENDED 31 DECEMBER 2009
As at As at As at
31/12/09 31/12/08 30/6/09
Notes GBP GBP GBP
Assets
Non-current assets
Property, plant and equipment 19,817 4,378 3,237
Financial assets 6 2,036,162 2,395,643 2,006,676
2,055,979 2,400,021 2,009,913
Current Assets
Trade receivables 9,473 123,449 257,212
Other current assets 304,064 490,317 237,076
Cash and cash equivalents 75,078 803,667 314067
388,615 1,417,433 808,305
Total assets 2,444,594 3,817,454 2,818,218
Equity and liabilities
Equity attributable to equity
holders of the parent
Share capital 4 83,175 83,175 83,175
Share premium 840,314 840,314 840,314
Merger reserve 252,506 252,506 252,506
Foreign exchange reserve (258,214) (955,609) 18,367
Retained earnings (5,820,072) (4,235,760) (5,780,672)
(4,902,291) (4,015,374) (4,586,310)
Non-current liabilities
Deferred income - 1,354 -
Loan 7 242,359 50,000 181,785
Convertible loan notes 7 450,000 450,000 450,000
Borrowings 7 5,934,759 6,528,686 5,722,085
6,627,118 7,030,040 6,353,870
Current liabilities
Trade and other payables 719,767 802,788 1,050,658
Total liabilities 7,346,885 7,832,828 7,404,528
Total equity and liabilities 2,444,594 3,817,454 2,818,218
CONSOLIDATED PROFIT AND LOSS ACCOUNT
HALF YEAR TO 31 DECEMBER 2009
6 months 6 months Year
ended ended ended
31/12/09 31/12/08 30/06/09
Notes GBP GBP GBP
Turnover
Sales - 20,308 210,664
Executive producer fees - 5,546 59,788
Commissions 2,878 75,317 113,586
Recoverable project costs 48,100 111,346 210,434
Other income 42,080 10,825 21,938
_______ _______ _______
93,058 223,342 616,410
Recoverable expenses (48,100) (111,346) (210,434)
Other external charges (159,989) (200,201) (939,492)
Staff costs (134,085) (123,716) (329,638)
Depreciation (3,158) (1,141) (2,283)
Amortisation of film assets (4,512) (11,215) (126,156)
_______ _______ _______
Operating loss (256,789) (224,277) (991,593)
Finance costs (176,660) (402,421) (925,407)
Income from investments 254,319 8,941 10,321
_______ _______ _______
Loss before tax (179,127) (617,757) (1,906,679)
Income tax expense - - -
_______ _______ _______
Loss for the year from continuing (179,127) (617,757) (1,906,679)
operations
Earnings per share
Basic 3 (0.22 pence) (0.74 pence) (2.29 pence)
Diluted 3 (0.22 pence) (0.74 pence) (2.29 pence)
CONSOLIDATED CASH FLOW STATEMENT
HALF YEAR TO 31 DECEMBER 2009
Note 6 months 6 months Year
ended ended ended
31/12/09 31/12/08 30/06/09
GBP GBP GBP
Cash flows from operating
activities
Cash from (used in) operating 5 (357,042) 266,915 167,086
activities
Interest paid (176,660) (402,421) (925,407)
Net cash (used in) operating (533,702) (135,506) (758,321)
activities
Cash flows from investing
activities
Purchases of property, plant and (19,415) (2,510) (2,510)
equipment
Purchase of film assets - - -
Investment in associated 254,291 - -
companies
Interest received 28 8,941 10,321
Net cash from (used in) investing 234,904 6,431 7,811
activities
Cash flows from financing
activities
Net proceeds on financing of film - - -
asset revenues
Issue of loan 59,859 - 181,785
Repayment of loan - - -
Proceeds on issue of convertible - 132,500 82,500
loan notes
Net cash from financing 59,859 132,500 264,285
activities
Net increase in cash and cash (238,939) 3,425 (486,225)
equivalents
Cash and cash equivalents at 314,017 800,242 800,242
beginning of period
Cash and cash equivalents at end 75,078 803,667 314,017
of period
Bank balances and cash 75,078 803,667 314,017
NOTES TO THE ACCOUNTS
1. Accounting policies
The principal accounting policies are as set out in the June 2009 annual
report.
The financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS) and with those parts of the Companies Act,
2006 applicable to companies reporting under IFRS. The financial reports have
been prepared under the historical cost convention.
The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Although these estimates are based on management's best
knowledge of the amount, event or actions, actual results ultimately may differ
from those estimates.
2. Status of financial information
The interim results for the 6 months ended 31 December 2009 and the 6 months
ended 31 December 2008 are unaudited and do not constitute statutory accounts
within the meaning of section 428, Companies Act 2006. The figures for the year
ended 30 June 2009 have been extracted from the audited annual accounts.
3. Earnings per share
Earnings 6 months 6 months Year
ended ended ended
31/12/09 31/12/08 30/06/09
GBP GBP GBP
Earnings for the purpose of basic (179,127) (617,757) (1,906,679)
earnings per share (net loss for
the year)
Earnings for the purpose of diluted (179,127) (617,757) (1,906,679)
earnings per share
Number of shares 6 months 6 months Year
ended ended ended
31/12/09 31/12/08 30/06/09
Weighted average number of ordinary 83,175,000 83,175,000 83,175,000
shares for the purposes of basic
earnings per share
Weighted average number of ordinary 83,175,000 83,175,000 83,175,000
shares for the purposes of diluted
earnings per share
4. Share capital
6 months 6 months Year
ended ended ended
31/12/09 31/12/08 30/06/09
GBP GBP GBP
Authorised:
Ordinary shares of GBP0.001 each 200,000 200,000 200,000
Issued and fully paid:
Ordinary shares of GBP0.001 each 83,175 83,175 83,175
Reported at beginning of period 83,175 83,175 83,175
Reported at period end 83,175 83,175 83,175
5. Note to the cash flow statement
6 months 6 months Year
ended ended ended
31/12/09 31/12/08 30/06/09
GBP GBP GBP
Loss for the year (179,127) (617,757) (1,906,679)
Adjustment for:
- Finance credits (77,659) 393,480 915,086
- Depreciation 3,158 1,141 2,283
- Amortisation 4,512 11,215 126,156
- Movements in foreign exchange 42,214 215,227 395,043
reserve
Changes in working capital:
- Charge for share options - - 5,594
issued during the year
- Increase in trade and other 180,751 122,586 242,064
receivables
- Increase in trade and other (330,891) 141,023 387,539
payables
Cash from (used in) operations (357,042) 266,915 167,086
6. Financial assets
6 months 6 months Year
ended ended ended
31/12/09 31/12/08 30/06/09
GBP GBP GBP
Available-for-sale financial
assets
Beginning of the period 2,006,676 1,790,335 1,790,335
Additions / (Disposals) (150,617) - -
Amortisation (4,639) (13,450) 111,613
Movements due to foreign 184,742 618,758 104,728
exchange
End of year 2,036,162 2,395,643 2,006,676
Available-for-sale financial assets include the following:
6 months 6 months Year
ended ended ended
31/12/09 31/12/08 30/06/09
GBP GBP GBP
Unlisted securities:
Investment in Audley Films Ltd 100 100 100
Investment in film library 2,036,062 2,244,926 1,855,959
Investment in Radical Publishing - 150,617 150,617
2,036,162 2,395,643 2,006,676
Available-for-sale financial assets are denominated in the following
currencies:
6 months 6 months Year
ended ended ended
31/12/09 31/12/08 30/06/08
GBP GBP GBP
Pound 100 100 100
United States Dollar 2,036,062 2,395,543 2,006,576
2,036,162 2,395,643 2,006,676
7. Borrowings
6 months 6 months Year
ended ended ended
31/12/09 31/12/08 30/06/08
GBP GBP GBP
Loan 242,359 50,000 181,785
Convertible loan notes 450,000 450,000 450,000
Loan note for film library 5,934,759 6,528,686 5,722,085
6,627,118 7,028,686 6,353,870
The new convertible loan notes totalled GBP450,000 and are convertible into a
maximum of 10,000,000 new ordinary shares in the Company at any time until 31
December 2011. Interest is payable at 6% per annum.
END
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