RNS Number:4698G
Medal Entertainment & Media PLC
16 December 2004
Strictly embargoed until: 07.00, 16 December 2004
MEM PLC INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2004
Announcing results for Medal Entertainment & Media plc ("MEM") for the six
months ended 30 September 2004, Brook Land, Chairman, commented: "We have
continued to develop the range of services offered by the Group and have focused
on our core activities. Overall the Group has performed satisfactorily during
the period, particularly given a quiet trading environment for our television
studio in the first half. We have also now put in place a solid foundation for
developing a low risk approach to television programme production. In the
current period the Group is trading strongly and we are making considerable
progress in attaining our goal of being a media Group that can originate,
produce, publish and distribute programmes for television and home
entertainment."
Key Points for the six months ended 30 September 2004:
*Group turnover #4.97m (2003: #4.76m)
*Loss before tax of #0.67m (2003: #0.34m)
*Loss per share of 4.52p (2003: 3.20p)
*DD Home Entertainment has recruited Steve Gillham to produce factual
programmes - first major commission from History Television International
*Joint venture company formed with Paula Trafford, formerly Managing
Director of Planet Wild Productions to produce entertainment documentaries -
Scarlet Television Limited
Brook Land added: "Our publishing business is performing particularly well and
it continues to experience increased sales both marketing direct and to retail.
Early indications show that Christmas sales are at record levels and with
shopping trends showing an increased tendency to buying direct, DD Home
Entertainment's market position is particularly strong. The second half of the
year has started very well and I am confident that the current levels of
business being generated will ensure a highly satisfactory outcome for the
current year."
For further information, please contact:
Steve Ayres, Chief Executive John West / Claire Melly
MEM plc Tavistock Communications Limited
Tel: 020 7851 0550 Tel: 020 7920 3150
Chairman's Statement
In the six month period ended 30 September 2004, we have continued to develop
the range of services offered by the Group and have focused on our core
activities. Overall the Group has performed satisfactorily during the period,
particularly given a quiet trading environment for our television studio in the
first half. We have also now put in place a solid foundation for developing a
low risk approach to television programme production. In the current period the
Group is trading strongly and we are making considerable progress in attaining
our goal of being a media Group that can originate, produce, publish and
distribute programmes for television and home entertainment.
Financial Overview
The first half of our financial year is traditionally the Group's quieter
period, with the majority of our revenue and profit being achieved in the second
half. In the first half of 2004, the Group produced a loss before tax of #0.674
million (2003: #0.336 million) on sales of #4.970 million (2003: #4.761
million). This outcome for the first half was pleasing particularly given the
fact that, as highlighted in our year end statement in June, we were expecting a
quiet time for our TV studio, given the large number of sporting events over the
summer. Our publishing activities increased their contribution to turnover on a
like for like basis and accounted for a large proportion of total revenue. The
retained loss was #674,000 for the period (2003: loss #336,000), a reflection of
the reduction in what is normally higher margin sales from Fountain Television.
As a result, loss per share was 4.52p (2003: loss per share of 3.20p). The
Directors have not declared an interim dividend.
Operating review
The Group has grown the range of its activities, which now includes rights,
facilities and production.
Rights
DD Home Entertainment Limited (formerly Leisureview Limited) our audio visual
publisher, performed well during the period increasing like for like sales on
the comparative period by some 48%. It specialises in sales direct to the public
and has expanded its library of titles and marketing rights. It now sells
programme titles from among others Carlton Home Entertainment, National
Geographic, the BBC, The History Channel, Universal and Channel 4. Levels of
sales to the retail market have continued to improve, however its core strength
remains in marketing its specialist product base through direct marketing
channels, where it now has a reputation as one of the UK's most respected
operators. Recent trends show that consumers are increasingly buying through
direct marketing channels, particularly on-line, as the range of specialist
product is greater than that available in retail outlets.
Strawberry Entertainment Limited provides the Group with an international
distribution capability. It focuses on selling programme rights to broadcasters
and DVD publishers worldwide. We expect Strawberry to become increasingly
important as a distribution channel for programme formats that we will develop
from the production side of the business.
Facilities
As referred to above, Fountain Television Limited which owns the UK's largest
fully equipped independent TV studio, experienced a challenging trading
environment. This was due to a number of non studio based sporting events over
the Summer, such as Euro 2004 and the Olympics. Established shows are now
returning and the studio continues to accommodate a number of well known
independent broadcasters. The second half has started strongly with shows such
as The X Factor, the Kumars at Number 42, Winning Lines and Bremner, Bird and
Fortune using the studio facilities. MEM tv one of our production companies has
already used the studio facility to make pilot shows for new programme formats
and we expect this to continue. Current occupancy is high and established shows
are returning year on year.
Production
Through MEM tv Limited, the Group is developing a low risk approach to
television production, which we believe has an exciting future and progress to
date has been encouraging. MEM tv collaborates with existing producers in order
to minimise fixed overhead costs. It has already started work on a number of
mainstream entertainment formats and we are currently in the process of seeking
commissions for these from broadcasters. I look forward to updating shareholders
on our progress in due course. Once a commission for a programme is gained we
hope to exploit the Group's publishing and distribution resource to maximise
revenue.
Our factual production unit, formerly a division of DD Home Entertainment, has
recently recruited respected producer Steve Gillham. This company has begun
production on its first major commission from History Television International
and is at an advanced stage of negotiation on two further series. These deals
enable the Group to retain worldwide rights to terrestrial television and DVD
markets, where sales will be made by Strawberry Entertainment.
Finally we recently announced, subsequent to the reported period, that we have
formed a joint venture company with Paula Trafford, formerly Managing Director
of Planet Wild Productions. Scarlet Television Limited will produce
entertainment documentaries, similar to the award winning programmes Paula and
her team produced at Planet Wild. These included 'Stan Collymore - Confessions
of a Premiership Footballer' (FIVE), 'Adam Ant: The Madness of Prince Charming'
(Channel 4) and 'Diana: My Sister The Princess' (BBC 1). We are pleased to have
entered into this arrangement with Paula and her team, particularly as they have
an unrivalled reputation for identifying, producing and bringing to commission
entertainment based factual programmes. This is an exciting development and
Scarlet has already secured its first commission.
Current Trading and Outlook
We are pleased with the progress that all areas of the Group are making. Our
publishing business is performing particularly well and it continues to
experience increased sales both marketing direct and to retail. Early
indications show that Christmas sales are at record levels and with shopping
trends showing an increased tendency to buying direct, DD Home Entertainment's
market position is particularly strong. Following the quiet summer, occupancy
levels at the television studios are currently high. Indicative bookings are
also very encouraging for 2005. Whilst our production businesses are still in
their infancy, both the factual unit and Scarlet Television have already secured
their first commissions and MEM tv has developed and produced pilot shows. We
will continue to adopt a positive, but low risk approach to production and we
look forward to updating shareholders on its progress over the coming months.
The second half of the year has started very well and I am confident that the
current levels of business being generated will ensure a highly satisfactory
outcome for the current year.
Brook Land
Chairman
16 December 2004
MEDAL ENTERTAINMENT & MEDIA PLC
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 30 September 2004
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2004 2003 2004
Unaudited Unaudited Audited
Note #'000 #'000 #'000
-----------------------------------------------------------------------------
Turnover
Continuing operations 4,874 4,761 12,141
Acquisitions 96 - -
-----------------------------------------------------------------------------
4,970 4,761 12,141
Cost of sales (1,886) (1,764) (4,469)
------------------------------------------------------------------------------
Gross profit 3,084 2,997 7,672
Net operating expenses (3,693) (3,108) (6,442)
------------------------------------------------------------------------------
Operating
(loss)/profit (609) (111) 1,230
Gain on disposal of
fixed assets 82 - -
Interest receivable 5 - -
Interest payable and
similar charges (152) (123) (302)
------------------------------------------------------------------------------
(Loss)/profit on
ordinary activities
before taxation (674) (234) 928
Taxation on
(loss)/profit on
ordinary activities 2 (60) (102) 91
------------------------------------------------------------------------------
(Loss)/profit on
ordinary activities
after taxation (734) (336) 1,019
Minority interest (2) - -
-----------------------------------------------------------------------------
Retained
(loss)/ profit for the
financial period (736) (336) 1,019
=============================================================================
Basic and
diluted (loss)/
profit per share 3 (4.92)p (3.20)p 9.47p
==============================================================================
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 2004
30 September 30 September 31 March
2004 2003 2004
Unaudited Unaudited Audited
(Restated)
Note #'000 #'000 #'000
-----------------------------------------------------------------------------
Fixed assets
Tangible assets 7,085 6,854 6,972
Intangible assets 2,257 1,668 1,465
Investments 180 - 180
-----------------------------------------------------------------------------
9,522 8,522 8,617
-----------------------------------------------------------------------------
Current assets
Stocks 865 488 827
Debtors - due within
one year 6,273 3,166 4,241
Debtors - due after more
than year 463 278 1,429
Cash at bank and in hand 93 429 1,993
-----------------------------------------------------------------------------
7,694 4,361 8,490
Creditors: amounts
falling due within
one year (5,442) (3,686) (4,273)
------------------------------------------------------------------------------
Net current assets 2,252 675 4,217
------------------------------------------------------------------------------
Total assets less
current liabilities 11,774 9,197 12,834
Creditors: amounts
falling due after
one year (2,228) (3,301) (2,547)
------------------------------------------------------------------------------
Net assets 9,546 5,896 10,287
==============================================================================
Capital and reserves
Called up share capital 1,496 1,066 1,496
Share premium account 7,479 4,873 7,479
Profit and loss account 576 (43) 1,312
-----------------------------------------------------------------------------
Equity shareholders'
funds 4 9,551 5,896 10,287
Equity minority
interests (5) - -
=============================================================================
Capital employed 9,546 5,896 10,287
=============================================================================
MEDAL ENTERTAINMENT & MEDIA PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 September 2004
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2004 2003 2004
Unaudited Unaudited Audited
(Restated)
Note #'000 #'000 #'000
-----------------------------------------------------------------------------
Net cash outflow from
operating activities 5 (1,441) (482) (452)
------------------------------------------------------------------------------
Returns on investments and
servicing of finance
Interest paid (152) (123) (302)
Interest received 5 - -
------------------------------------------------------------------------------
Net cash outflow from
returns on investments
and servicing of finance (147) (123) (302)
------------------------------------------------------------------------------
Taxation - - -
------------------------------------------------------------------------------
Capital expenditure and
financial investment
Payments to acquire
tangible fixed assets (312) (269) (400)
Payments to acquire
intangible fixed assets (958) (594) (537)
Sale of tangible fixed
assets 104 - -
------------------------------------------------------------------------------
Net cash outflow from
capital expenditure
and financial investment (1,166) (863) (937)
------------------------------------------------------------------------------
Acquisitions and
disposals
Payments to acquire
subsidiary undertakings (38) (62) (214)
------------------------------------------------------------------------------
Net cash outflow from
acquisition and
disposals (38) (62) (214)
------------------------------------------------------------------------------
Net cash outflow before
financing (2,792) (1,530) (1,905)
Financing
Issue of share capital - 164 3,169
New external borrowings - 500 500
External borrowings
repaid (200) (175) (400)
Capital element of hire
purchase and finance
lease rental payments (62) (50) (80)
------------------------------------------------------------------------------
Net cash
(outflow)/inflow from
financing (262) 439 3,189
------------------------------------------------------------------------------
(Decrease)/increase in
cash in the period 6,7 (3,054) (1,091) 1,284
==============================================================================
MEDAL ENTERTAINMENT & MEDIA PLC
NOTES TO THE INTERIM REPORT
Six months ended 30 September 2004
1 Accounting policies
Basis of preparation
The interim information for the six months ended 30 September 2004 and 30
September 2003 is neither reviewed nor audited and does not comprise statutory
accounts. The comparative figures for the year ended 31 March 2004 are not
statutory accounts but are extracted from the audited statutory accounts. The
statutory accounts for the year ended 31 March 2004 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 2004. 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 2004.
The comparative figures for the six month period ended 30 September 2003 have
been restated to show film costs capitalised prior to the effective date of
completion within intangible assets, consistent with the audited year end
numbers and the balance sheet as at 30 September 2004.
2 Taxation
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2004 2003 2004
Unaudited Unaudited Audited
#'000 #'000 #'000
-----------------------------------------------------------------------------
UK corporation tax - (53) 155
Deferred tax 60 155 (246)
-----------------------------------------------------------------------------
Taxation on
(loss)/profit
for the financial
period 60 102 (91)
-----------------------------------------------------------------------------
3 Earnings per share
The basic and diluted loss per share is based on the Group loss of #736,000 (30
September 2003: loss of #336,000) and the weighted average number of ordinary
shares in issue during the six months ended 30 September 2004 of 14,964,034 (30
September 2003: 10,486,947).
FRS 14 requires presentation of the diluted loss per share when a company could
be called upon to issue shares that would decrease net profit or increase net
loss per share. For a loss making company with outstanding share options, net
loss per share would only be increased by the exercise of out-of-the-money
options of which the Group had none at 30 September 2004.
4 Reconciliation of movements in Equity shareholders' funds
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2004 2003 2004
Unaudited Unaudited Audited
#'000 #'000 #'000
-----------------------------------------------------------------------------
Retained
(loss)/profit for
the financial
period/year (736) (336) 1,019
Shares issued
net of expenses - 164 3,200
-----------------------------------------------------------------------------
(736) (172) 4,219
Opening equity
shareholders'
funds 10,287 6,068 6,068
-----------------------------------------------------------------------------
Closing equity
shareholders'
funds 9,551 5,896 10,287
-----------------------------------------------------------------------------
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
2004 2003 2004
Unaudited Unaudited Audited
(Restated)
#'000 #'000 #'000
-----------------------------------------------------------------------------
Operating
(loss)/profit (609) (111) 1,230
Amortisation 204 192 415
Depreciation 170 239 364
(Increase)/decrease in
stocks (38) 181 (400)
Increase in
trade and
other debtors
and prepayments (1,101) (483) (2,422)
(Decrease)/
increase in
creditors (67) (407) 361
Non-cash movements - (93) -
------------------------------------------------------------------------------
Net cash
outflow from
operating
activities (1,441) (482) (452)
------------------------------------------------------------------------------
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
2004 2003 2004
Unaudited Unaudited Audited
(Restated)
#'000 #'000 #'000
------------------------------------------------------------------------------
(Decrease)/increase
in cash for period (3,054) (1,091) 1,284
Cash (outflow)/inflow
from increase in
debt and lease
financing 237 (413) (319)
------------------------------------------------------------------------------
Change in net
debt resulting
from cash flows (2,817) (1,504) 965
Net debt brought
forward (2,155) (3,120) (3,120)
------------------------------------------------------------------------------
Net debt
carried
forward (4,972) (4,624) (2,155)
------------------------------------------------------------------------------
7 Analysis of net debt
At 1 April At 30 September
2004 Other non-cash 2004
Audited Cash Flows changes Unaudited
#'000 #'000 #'000 #'000
--------------------------------------------------------------------------------
Cash 1,993 (1,900) - 93
Overdrafts (501) (1,154) - (1,655)
--------------------------------------------------------------------------------
Cash 1,492 (3,054) - (1,562)
Debt due within one
year (978) (120) - (1,098)
Debt due after
one year (2,396) 295 - (2,101)
Finance leases (273) 62 - (211)
--------------------------------------------------------------------------------
Financing (3,647) 237 - (3,410)
--------------------------------------------------------------------------------
Total (2,155) (2,817) - (4,972)
--------------------------------------------------------------------------------
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 GUGMWPUPCGRA
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
