RNS Number:7002V
Medal Entertainment & Media PLC
15 December 2005
15 December 2005
MEDAL ENTERTAINMENT & MEDIA PLC
("MEM" or "the Company")
Interim results for the six months ended 30 September 2005
Highlights:
* Group turnover #5.5m (2004: #4.97m)
* Pre-tax loss #1.92m (2004: #0.67m)
* Loss per share 12.90p (2004: 4.92p)
* Significant new licensing agreements with Fremantle Media and ITV
* Major new BBC commission, Petrolheads, to begin screening in
February 2006
* Sales in October and November alone are approximately double the
level achieved in the first six months
Brook Land, Chairman of MEM, said:
"As we announced on 21st September 2005 the seasonality of our business combined
with the increased scale of operations, has resulted in the loss for the half
year being greater than in 2004. However, the strong trading in the current
period and indications for the rest of the year mean that we remain confident
that we will meet market expectations for the full year"
Ends
Enquiries:
MEM: Steve Ayres, Chief Executive 020 7851 0550
Portland: Tim Allan 020 7404 5344
Medal Entertainment & Media plc
Interim results for the six months ended 30 September 2005
Chairman's Review
In the six-month period ended 30 September 2005 we have continued to make
progress in each of our operational divisions. In our DVD publishing business,
we acquired the rights to distribute the DVD of the 2005 Ashes cricket series.
Unprecedented public interest in the Test series has led to very strong sales
which will be reflected in the results for the second half of the financial
year. The first six months of the year are traditionally quieter for our
television studio business, as broadcasters shift to broadcasting sport and
repeats in the summer months. We are however encouraged by the high level of
returning bookings and the strong current trading. In our production division
we made good progress in developing formats and were commissioned in July by
BBC2 to produce a new panel show Petrolheads, airing from February 2006.
Financial Highlights
In the six months ended 30 September 2005, turnover was #5.5million, up 11% from
the comparative period last year (2004: #5.0million), largely due to growth in
our production division. As the gross margins in this division are not as high
as in the other divisions this adversely affected our overall gross margin.
Operating expenses rose by 26% to #4.7million due to the overheads of the
production division which were not in place in the comparable period last year,
and also higher infrastructure costs to enable the DVD publishing and
distribution business to service the increased sales volumes in the period. As
announced on 21st September 2005, our pre tax loss was higher than the prior
year interim period at #1.92million (2004: loss #0.67million). The retained
loss was #1.93million after minority interest for the period, equating to a loss
per share of 12.90p (2004: loss 4.92p).
A fire at one of our outsourced DVD manufacturing plants caused a temporary
interruption in our DVD fulfilment capacity. This meant that some orders could
not be fulfilled until after the period end thus pushing sales of approximately
#500,000 into the second half.
During the period we invested #935,000 (2004: #958,000) in rights and the
inception costs of producing and authoring DVDs. TV production was partly funded
by short term loans of #946,000 (2004: #nil). Long term debt was reduced by
#175,000 (2004: #nil) in the period.
The Directors have not declared an interim dividend.
Operating Review
Rights
DD Home Entertainment (DDHE) licenses, produces and publishes DVDs and videos,
specialising in factual programmes, classic television and feature films. DDHE
markets its products directly to the consumer via catalogues, the internet and
direct advertising as well as via high street retailers and specialist outlets.
At the end of June we announced a five year licensing deal with Granada
Ventures. This entitles DDHE to manufacture and sell via direct marketing the
majority of existing and future programmes owned or controlled by ITV.
During the period we also extended our licensing relationship with the BBC,
recently acquiring the rights to the crime drama Dalziel and Pascoe, for which
sales expectations are strong.
A licensing and distribution deal has also been agreed with Fremantle Media
which gives DDHE access to a substantial library of classic television
programming, including the Thames TV catalogue which contains programmes
including Benny Hill, Minder and The World at War, together with Fremantle's
ongoing production.
Our highest selling DVD of the year will be the Ashes DVD "The Greatest Series"
the effect of which will be reflected in the results in the second half of the
company's financial year. Following the exciting and successful Test series and
the massive public interest generated in cricket, sales of the DVD have been
strong since it was released in October, and we expect continued high sales in
the run up to Christmas. In addition, DDHE has secured the rights to the next
Ashes series.
Facilities
MEM's facilities division operates Fountain Television Ltd (Fountain), the UK's
largest independent television studio facility providing services to independent
producers. The business tends to be seasonal with the summer months being low
season. Since the end of September we have played host to programmes including
The X-Factor (Talkback Thames/ Syco), and Test the Nation (Talent TV).
TV Production
MEM tv Limited is the Group's low risk entry strategy into TV production and
during the period this division has made good progress. In July we were
commissioned to produce Petrolheads for BBC2 which commences shooting in January
2006 and which will be aired the following month. The production is a quiz
format that focuses on cars, and is hosted by Neil Morrissey and features Chris
Barry and Richard Hammond of motoring programme Top Gear. We are expecting
Petrolheads to be heavily promoted by the BBC and we also already have an
interest in further exploitation of the rights.
Scarlet Television specialises in entertainment-based factual programmes. It
has completed a successful first year with programmes commissioned by Channel 4,
Five, and Sky One. Its productions have included 50 Greatest Screen Kisses, Sex,
Lies and Politics and The UK's Real Desperate Housewives. Since the end of
September further commissions have been received from Discovery Channel, and a
one off film Crumpet will be screened by BBC2 during Christmas week.
Scarlet is based in Manchester and is therefore well placed to benefit from the
greater commitment to regional independent production.
Current Trading & Outlook
We have made good progress in securing longer-term revenue streams through
various licensing and production deals, which we expect to show through in the
second half of the current year period. The fire at one of our manufacturer's
plant contributed to our net loss figure in the first half, although this is a
timing issue and should have no impact by the time we come to report full year
results.
The seasonality in our business is acute, and thus the results for the first six
months are not a reliable guide to full year results. Our trading since the
period end has been strong with sales for October and November alone
approximately double those for the preceding entire half year. We are
encouraged by strong DVD sales, high occupancy rates at Fountain, and a number
of potentially profitable commissions for our production arm. We continue to
seek opportunities to develop the business to create shareholder value. We
remain confident that we will meet market expectations for the full year.
Staff
Finally I would like to thank all of our staff for their hard work and
enthusiasm.
Brook Land
Chairman
15 December 2005
MEDAL ENTERTAINMENT & MEDIA PLC
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 30 September 2005
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2005 2004 2005
Unaudited Unaudited Audited
Note #'000 #'000 #'000
Turnover
-Continuing operations 5,496 4,970 14,950
-Acquisitions 1 - -
5,497 4,970 14,950
Cost of sales (2,524) (1,886) (5,577)
Gross profit 2,973 3,084 9,373
Net operating expenses (4,659) (3,693) (8,288)
Operating (loss) / profit (1,686) (609) 1,085
-Continuing operations (1,660) (609) 1,085
-Acquisitions (26) - -
Gain on disposal of fixed assets 9 82 76
Interest receivable - 5 7
Amounts written off investments - - (66)
Interest payable and similar charges (243) (152) (318)
Bank facility fee written off - - (161)
(Loss) / profit on ordinary activities before (1,920) (674) 623
taxation
Taxation on (loss) / profit on ordinary activities 2 - (60) (263)
(Loss) / profit on ordinary activities after (1,920) (734) 360
taxation
Minority interest (11) (2) 6
Retained (loss) / profit for the financial period (1,931) (736) 366
Basic and diluted (loss) / profit per share 3 (12.90)p (4.92)p 2.45p
There were no other gains or losses recognised in the period other than
disclosed above.
MEDAL ENTERTAINMENT & MEDIA PLC
UNAUDITED CONSOLIDATED BALANCE SHEET
As at 30 September 2005
30 September 30 September 31 March
2005 2004 2005
Unaudited Unaudited Audited
Note #'000 #'000 #'000
Fixed assets
Tangible assets 7,206 7,085 7,166
Intangible assets 3,533 2,257 2,823
Investments 101 180 114
10,840 9,522 10,103
Current assets
Stocks 1,067 865 1,136
Investment in programmes 469 - 390
Debtors - due within one year 6,636 6,273 7,093
Debtors - due after more than year 350 463 991
Cash at bank and in hand 1,983 93 1,618
10,505 7,694 11,228
Creditors: amounts falling due within (9,336) (5,442) (7,643)
one year
Net current assets 1,169 2,252 3,585
Total assets less current liabilities 12,009 11,774 13,688
Creditors: amounts falling due (3,267) (2,228) (3,026)
after one year
Net assets 8,742 9,546 10,662
Capital and reserves
Called up share capital 1,496 1,496 1,496
Share premium account 7,501 7,479 7,501
Profit and loss account (253) 576 1,678
Equity shareholders' funds 4 8,744 9,551 10,675
Equity minority interests (2) (5) (13)
Capital employed 8,742 9,546 10,662
MEDAL ENTERTAINMENT & MEDIA PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 September 2005
Notes 6 months ended 6 months ended Year ended
30 September 30 September 31 March
2005 2004 2005
Unaudited Unaudited Audited
#'000 #'000 #'000
Net cash outflow from operating activities 5 (948) (1,441) (852)
Returns on investments and servicing of finance
Interest paid (217) (152) (459)
Interest received - 5 7
Net cash outflow from returns on investments (217) (147) (452)
and servicing of finance
Taxation - - (118)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (200) (312) (502)
Payments to acquire intangible fixed assets (935) (958) (1,586)
Sale of tangible fixed assets - 104 100
Net cash outflow from capital expenditure (1,135) (1,166) (1,988)
and financial investment
Acquisitions and disposals
Net Receipt on acquisition of subsidiary undertakings 33 (38) (33)
Proceeds from the sale of investment 22 - -
Net cash inflow/(outflow) from acquisition and 55 (38) (33)
disposals
Net cash outflow before financing (2,245) (2,792) (3,443)
Financing
Net VAT recovery on flotation costs - - 22
Bank loans received 1,396 - 3,500
Bank loans repaid (670) (200) (3,588)
Capital element of hire purchase and finance (61) (62) (123)
lease rental payments
Net cash inflow/(outflow) from financing 665 (262) (189)
Decrease in cash in the period 6,7 (1,580) (3,054) (3,632)
MEDAL ENTERTAINMENT & MEDIA PLC
NOTES TO THE INTERIM REPORT
Six months ended 30 September 2005
1 Accounting policies
Basis of preparation
The interim information for the six months ended 30 September 2005 and 30
September 2004 is neither reviewed nor audited and does not comprise statutory
accounts. The comparative figures for the year ended 31 March 2005 are not
statutory accounts but are extracted from the audited statutory accounts. The
statutory accounts for the year ended 31 March 2005 have been filed with the
Registrar of Companies. They received an unqualified audit report which did not
contain a statement under Section 237(2) or 237(3) of the Companies Act 1985.
The interim report should be read in conjunction with the statutory accounts for
the year ended 31 March 2005. The interim figures have been prepared on the
same basis and applying the same accounting policies as in the audited figures
for the year ended 31 March 2005.
2 Taxation
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2005 2004 2005
Unaudited Unaudited Audited
#'000 #'000 #'000
UK corporation tax - - 20
Deferred tax - 60 243
Taxation on (loss)/profit for the financial period - 60 263
3 Earnings per share
The basic and diluted loss per share is based on the Group loss of #1,931,000
(30 September 2004: loss of #736,000) and the weighted average number of
ordinary shares in issue during the six months ended 30 September 2005 of
14,964,034 (30 September 2004: 14,964,034).
4 Reconciliation of movements in Equity shareholders' funds
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2005 2004 2005
Unaudited Unaudited Audited
#'000 #'000 #'000
Retained (loss) / profit for the financial period / (1,931) (736) 366
year
Net VAT recovery on flotation costs - - 22
(1,931) (736) 388
Opening equity shareholders' funds 10,675 10,287 10,287
Closing equity shareholders' funds 8,744 9,551 10,675
5 Reconciliation of operating (loss) / profit to cash inflow from operating
activities
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2005 2004 2005
Unaudited Unaudited Audited
#'000 #'000 #'000
Operating (loss) / profit (1,686) (609) 1,085
Amortisation 302 204 334
Depreciation 160 170 286
Decrease/(increase) in stocks 69 (38) (309)
Increase in Investment in programmes (79) - (390)
Decrease/(Increase) in trade and other debtors, and 1,181 (1,101) (2,656)
prepayments
Increase/(Decrease) in creditors (895) (67) 798
Net cash outflow from operating activities (948) (1,441) (852)
6 Reconciliation of net cash flow to movement in net debt
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2005 2004 2005
Unaudited Unaudited Audited
#'000 #'000 #'000
Decrease in cash for period (1,580) (3,054) (3,632)
Cash (outflow)/inflow from increase in debt and lease (670) 237 172
financing
Change in net debt resulting from cash flows (2,250) (2,817) (3,460)
Net debt brought forward (5,615) (2,155) (2,155)
Net debt carried forward (7,865) (4,972) (5,615)
7 Analysis of net debt
At 30 September
At 1 April 2005 Other non-cash 2005
Audited Cash Flows changes Unaudited
#'000 #'000 #'000 #'000
1,618 365 - 1,983
Cash
Overdrafts (3,758) (1,945) - (5,703)
Cash (2,140) (1,580) - (3,720)
Debt due after one year (2,985) (282) - (3,267)
Debt due within one year (340) (449) - (789)
Finance leases (150) 61 - (89)
Financing (3,475) (670) - (4,145)
Total (5,615) (2,250) - (7,865)
8. Copies of the interim report
This interim report will be sent to shareholders in due course, and copies will
be available from the Company Secretary at the Company's registered office Lacon
House, 84 Theobald's Road, London, WC1X 8RW
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GUGUCPUPAPUC
Medal Entertainment & Media (LSE:MME)
Historical Stock Chart
From Jun 2024 to Jul 2024
Medal Entertainment & Media (LSE:MME)
Historical Stock Chart
From Jul 2023 to Jul 2024
