TIDMIFM
Intandem Films PLC
17 December 2010
INTANDEM FILMS PLC
("Intandem", the "Company" or the "Group")
Final Results for the Year Ended 30 June 2010
Intandem (AIM: IFM), a London based international film group, today announces
its preliminary results for the year ending 30 June 2010.
Highlights:
* Net profit after tax of GBP3.31m (2009: GBP1.9million loss)
* GBP5.7m loan eliminated from balance sheet at net profit of GBP3.92m
* Earnings per share 3.72p (2009: 2.29p loss per share)
* Operating loss reduced to GBP642,047 (2009: GBP991,593)
* Number of films represented more than doubled from 14 to 30, compared with
the previous year
* Appointed as Executive Producer and international sales company to 20 new
films with total budgets in excess of GBP150m
Post-Year End Highlights:
* Production has completed on "The Veteran" with presales of almost $1million
achieved
* "The Veteran" will be screened at the Berlin Film Festival in February 2011
and released in the UK in April 2011
* Shooting for "Ecstasy" started in December in Canada. "Ecstasy" is based on
the Irvine Welsh novel and is generally considered to be the follow up to
"Trainspotting".
* "Ecstasy" is expected to premiere at the Toronto Film Festival in September
2011.
Gary Smith, Chief Executive Officerof Intandem, commented:
"The year to 30 June 2010 represents a significant turning point for Intandem.
During the year, overheads were reduced significantly, the bank overdraft was
eliminated and a loan of GBP5.7million was also eliminated from the balance sheet
at a net profit of GBP3.92million. Additionally, the number of films represented
by the Company has more than doubled from 14 to 30.
"In response to the worldwide recession and credit crunch, and in accordance
with prudent management, the Board decided to eliminate debt from the balance
sheet and reduce overheads. I am pleased to say that in total, over GBP6.5million
of debt was removed from the balance sheet during the year to 30 June 2010.
"The Company has developed a slate of 20 new films for which it has been
appointed as an Executive Producer and international sales company with total
budgets in excess of GBP150million. The Company is working with the producers of
the films to close the financing and several of these films are expected to
commence production during the 2011 calendar year, and we believe that the
Company is in good shape as we anticipate a period of growth.
"Furthermore we look forward to announcing Intandem's appointment as executive
producers and international sales company on several new films in the near
future and to achieving our objective of commencing at least six films per
annum."
A copy of the report and accounts together with the notice convening the Annual
General Meeting will be posted to shareholders and will be available on the
Company's website: www.intandemfilms.com by Thursday 23 December 2010. The
Company's Annual General Meeting will be held at 12pm on 27 January 2011 at the
Company's offices, Intandem Films PLC, 114 - 116 Charing Cross Road, London,
UK, WC2H 0JR.
=-ENDS--
Intandem Films plc Tel: 020 7851 3800
Gary Smith, Chief Executive
Northland Capital Partners limited Tel: 020 7492 4750
Luke Cairns
Financial PR
Bishopsgate Communications Tel: 020 7652 3350
Gemma O'Hara/Duncan McCormick
intandem@bishopsgatecommunications.com
CHAIRMAN'S STATEMENT
The year to 30 June 2010 represents a significant turning point for Intandem.
During the year, the number of films represented by the Company more than
doubled from 14 to 30, overheads were reduced significantly and the bank
overdraft and a loan of GBP5.7million were eliminated from the balance sheet. Of
particular significance is the fact that the GBP5.7million loan was eliminated at
a net profit of approximately GBP3.92million, due to the fact that the Company
disposed of its ownership rights of five of its films but retained the sales
and delivery rights of the five films.
The Company has developed a slate of 20 new films for which it has been
appointed as an Executive Producer and international sales company with total
budgets in excess of GBP150million. The Company is working with the producers of
the films to close the financing and several of these films are expected to
commence production during the 2011 calendar year. It is the Board's belief
that the Company now has a solid foundation from which it is ready to grow.
Results
The results for the year are positively affected by the sale of the library of
five films which resulted in a net profit on the transaction of GBP3.92 million.
Turnover was down from GBP616,410 to GBP425,153 mainly through the reduction in
income from the library caused by the sale of five of the Company's films in
order to settle the outstanding loan. The operating loss was reduced to GBP
642,047 from GBP991,593 due to the reduction in overheads. The significant result
is that the Company made a net profit after tax of GBP3,314,404 compared with a
loss in the previous year of GBP1.9million. Earnings per share were 3.72p
compared with a loss of 2.29p in 2009.
The clearing of the debt means that finance costs are eliminated for the
current financial year. In the year to 30 June 2010, these were GBP233,719
compared to GBP925,407 in the previous year.
Outline of Intandem's business
Intandem is an international film sales company and earns commission on all
sales achieved to film distributors throughout the world. It also arranges
finance for the production of films for which it earns an executive production
fee. Intandem manages the risk associated with the film industry and does not
invest its own resources into the production of films.
Elimination of debt and reduction of overheads
In response to the worldwide recession and credit crunch, and in the interests
of prudent management, the Board decided to eliminate debt from the balance
sheet and reduce overheads. I am pleased to say that in total, over GBP6.5million
of debt was removed from the balance sheet during the year to 30 June 2010. The
primary changes to the balance sheet were as follows.
1. The sale of the Company's shareholding in Los Angeles based publisher and
film company, Radical Publishing Inc, for $750,000 (GBP425,000) for a profit
of $450,000 (GBP254,000)
2. An agreement to sell back the ownership in five films to a US Hedge Fund
for the full value of Loan Notes outstanding to the Hedge Fund of
approximately GBP6million, representing a book profit of approximately GBP
4million. The Hedge Fund has retained Intandem to represent the sales of
these five films. It has also appointed Intandem to manage the sales and
collections on a portfolio of 13 additional films including "Johnny
Mnemonic" (Keanu Reeves) and "I'll Sleep When I'm Dead" (Clive Owen).
Intandem will earn commission on any sales for all 18 films
3. A convertible loan note of GBP450,000 was converted into 10,000,000 ordinary
shares at 4.5p each, representing a premium of 80 per cent. to the closing
mid price at the time of the announcement in March 2010.
4. GBP500,000 was raised through a share issue at 4p per share, representing a
premium of 60 per cent. to the closing mid price at the time of the
announcement in March 2010.
Overheads have been reduced significantly by reducing the number of employees,
the directors reducing their salaries and moving to new premises with a
reduction in rent. The current overhead is approximately GBP55,000 per month. The
Company's target is to cover overhead through Executive Producer fees which
would mean that sales commission would represent the net profit.
New Films
Four new films were completed during the year and the Company was appointed to
represent the international sales of a further 13 films by the US Hedge Fund as
detailed above. This brought the total number of films in the Intandem slate to
30 as at 30th June 2010. The four new films were "The Kid", "Devil's
Playground", "Beneath Hill 60" and "Ways to Live Forever".
The Company is constantly aiming to improve the quality of films it represents
as a sales company in terms of commerciality, script and the director and
actors attached to the films. A great amount of time is spent in sourcing new
films, with the majority of new films being sourced from Los Angeles.
The nature of the film industry is long term in that it takes approximately 12
months from starting pre-production on a film to delivering the film to
distributors. Therefore the Board's objective is to start production on films
at the rate of at least one film every two months in order to smooth the cash
flow of the Company. Currently, we are working on the financing of over 20
films with total aggregate budgets in excess of GBP150million. Whilst it is
unlikely that all of those films will go into production, our target is to
increase the slate at the rate of at least six new films per annum with an
average budget of GBP10million. This would result in new productions in excess of
GBP300million over a five year period which would represent a significant asset
for the Company.
Post Period End
Since the year end, "The Veteran" has completed production and we have achieved
presales of almost $1million including the UK, where the film will be released
in April 2011, and Australia of which the Company will recognise revenues in
the region of $100,000. The film will be screened for the first time at the
Berlin Film Festival in February 2011 where we expect to complete further
sales. In addition, "Ecstasy" started shooting in Canada in December 2010.
"Ecstasy" is based on an Irvine Welsh novel and is generally considered to be
the follow up to "Trainspotting" which grossed in excess of $70million and is
expected to premiere at the Toronto Film Festival in September 2011.
Future prospects
I look forward to announcing Intandem's appointment as executive producers and
international sales company on several new films in the near future and to
achieving our objective of commencing at least six films per annum. Amongst the
20 films we are currently developing, we are in the process of finalising
contracts for two films which we expect to have a very high profile, which will
in turn further boost Intandem's reputation in the worldwide film industry.
The Board is satisfied that it has taken the necessary action to position the
Company for a period of growth in operating profits in the future.
Finally, I would like to thank all our employees for all their hard work during
the last 12 months. We have a relatively small workforce but we are all
committed to growing Intandem and to building a successful and profitable film
company that delivers shareholder value.
You can follow Intandem's progress on our website, www.intandemfilms.com
Gary Smith
Chairman
16th December 2010.
INTANDEM FILMS PLC
Consolidated statement of comprehensive income
for the year ended 30 June 2010
Group
2010 2009
GBP GBP
Revenue
Sales 7,523 210,664
Executive producer fees - 59,788
Commissions 136,568 113,586
Recoverable project costs 176,138 210,434
Other income 104,924 21,938
425,153 616,410
Cost of sales
Recoverable expenses (176,138) (210,434)
Amortisation of film asset (4,513) (126,156)
Gross profit 244,502 279,820
Overheads
Staff costs (337,531) (329,638)
Depreciation (6,911) (2,283)
Other external charges (542,107) (939,492)
(Loss) from operations (642,047) (991,593)
Other operating income 3,924,647 -
Profit on sale of investment 254,294 -
Finance costs (233,719) (925,407)
Interest income 11,232 10,321
Profit/(Loss) before tax 3,314,404 (1,906,679)
Income tax expense - -
Profit/(Loss) for the year from 3,314,404 (1,906,679)
continuing operations
Profit/(Loss) per share
Basic 3.72 pence (2.29
pence)
Diluted 3.72 pence (2.29
pence)
All the amounts derive from continuing
operations.
Statement of comprehensive income
2010 2009
GBP GBP
Profit/(Loss) for the year 3,314,404 (1,906,679)
Foreign currency translation (156,274) (247,207)
differences
Total comprehensive income/(loss) for 3,158,130 (2,153,886)
the year
INTANDEM FILMS PLC
Consolidated and Company statement of financial position
as at 30 June 2010
Group Company
2010 2009 2010 2009
GBP GBP GBP GBP
Assets
Non-current assets
Property, plant and 18,447 3,237 - -
equipment
Investment in subsidiaries - - 223,152 223,152
Financial assets 100 2,006,676 - -
Intercompany loan - - 1,448,998 1,139,167
18,547 2,009,913 1,672,150 1,362,319
Current assets
Trade receivables 154,571 257,212 - -
Other receivables 251,994 237,076 1 1
Cash and cash equivalents 78,268 314,017 - -
484,833 808,305 1 1
Total assets 503,380 2,818,218 1,672,151 1,362,320
Equity and liabilities
Capital and reserves
Share capital 105,675 83,175 105,675 83,175
Share premium 1,767,814 840,314 1,767,814 840,314
Merger reserve 252,506 252,506 - -
Retained earnings (2,570,611) (5,762,305) (384,214) (255,396)
(444,616) (4,586,310) 1,489,275 668,093
Non-current liabilities
Deferred income 16,557 - - -
Intercompany loan - - 157,876 157,876
Convertible loan notes - 450,000 - 450,000
Loan - 181,785 - 50,000
Loan note - 5,722,085 - -
16,557 6,353,870 157,876 657,876
Current liabilities
Trade and other payables 931,439 1,050,658 25,000 36,351
931,439 1,050,658 25,000 36,351
Total liabilities 947,996 7,404,528 182,876 694,227
Total equity and 503,380 2,818,218 1,672,151 1,362,320
liabilities
INTANDEM FILMS PLC
Consolidated and Company cash flow statement
for the year ended 30 June 2010
Group Company
2010 2009 2010 2009
GBP GBP GBP GBP
Cash flows from operating
activities
Cash (used in)/from operating (357,707) (227,957) (417,792) (178,849)
activities
Interest paid (233,719) (925,407) (32,208) (28,651)
(591,426) (1,153,364) (450,000) (207,500)
Cash flows from investing
activities
Purchases of property, plant and (22,121) (2,510) - -
equipment
Investment in film assets - - - -
Investment in associate company 254,291 - - -
Investment in subsidiary company - - - -
Interest received 11,232 10,321 - -
Net cash (used in)/frominvesting 243,402 7,811 - -
activities
Cash flows from financing 950,000 950,000
activities
Issue of new ordinary shares
Net proceeds from financing of - - - -
film assets
Repayment of loans (181,785) - (500,000) -
Issue of new loan - 181,785 50,000
Proceeds on issue of convertible (450,000) 82,500 - 157,500
loan notes
Net cash from financing 318,215 264,285 450,000 207,500
activities
Net increase/(decrease) in cash (29,809) (881,268) - -
and cashequivalents
Foreign exchange difference on (205,940) 395,043
consolidation
Cash and cash equivalents at 314,017 800,242 - -
beginning of year
Cash and cash equivalents at end 78,268 314,017 - -
of year
Bank balances and cash 78,268 314,017 - -
END
Intandem Films (LSE:IFM)
Historical Stock Chart
From May 2024 to Jun 2024
Intandem Films (LSE:IFM)
Historical Stock Chart
From Jun 2023 to Jun 2024
