Half-yearly Report
26 June 2009
Talent Group plc
("Talent" or the "Company")
Half-yearly results for the six months ended 31 March 2009
CHAIRMAN'S STATEMENT
There can be no doubt that the last few months have seen unprecedentedly
difficult conditions for the independent television sector, and these are
reflected in our interim results for the six months to 31 March 2009.These show
turnover of £303,000 (2008 : £1,164,000), gross profit of £174,000 (2008 : £
341,000) and a loss before and after taxation of £343,000 (2008 : loss before
and after taxation of £145,000). The loss per share was 2.06p (2008 : loss per
share 0.89p).
The level of turnover reflects the lack of commissioning activity from our
clients, who are themselves under pressure from significantly reduced revenues.
From our perspective these difficulties were compounded by a large number of
personnel changes amongst commissioning editors, resulting in lack of
continuity in progressing productions in development. We have, nevertheless,
witnessed a modest improvement since March 2009 with the completion of two
programmes, How Clean is my Crime Scene and a Jim Davidson special, for Virgin
Media. We have also taken advantage of the lull in production commissions to
concentrate on new programme and format development, as evidenced by our
recently announced first look deal with Digital Rights Group.
We have also continued to strive to reduce our overheads. Whilst administrative
expenses appear to have risen to £498,000 for the 6 months to March 2009
compared to £487,000 in the previous half-year, the 2009 figures include £
112,000 development costs incurred by our new subsidiary, Talent Television
South. These mask the reduction of core overhead costs to £386,000 for the
half-year, compared to £487,000 in 2008 and £626,000 in 2007. Since the end of
March 2009 further cost efficiency measures have been introduced, the benefit
of which will be seen in the next financial year.
Whilst the trading background remains difficult, there are now indications of a
beginning of a return to more normal market conditions, and the board and I
believe the measures we have adopted leave the Company well placed to take
advantage of such improvements. In the meantime I have one board change to
announce: Stephen Callen is today joining the board as our new finance
director, following the decision of Frances Horrell to step down for personal
reasons. Stephen, a Chartered Accountant, has over fifteen years experience of
the independent television sector. I would like to thank Frances for all her
hard work during her time with the company.
Terry Bate
Chairman
26 June 2009
A separate announcement incorporating further details with regards to Stephen
Callen's appointment, including the information required by Schedule 2(g) of
the AIM Rules, will be made shortly.
FURTHER ENQUIRIES
Talent Group plc
Tony Humphreys (Managing Director) 020 7421 7800
John East & Partners Limited, a subsidiary of Merchant Securities plc
John East / Simon Clements 020 7628 2200
CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2009
Six months Six months Year ended
to to 30-Sep
31-Mar 31-Mar 2008
2009 2008
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Revenue 303 1,164 1,841
Cost of sales (129) (823) (1,271)
Gross profit 174 341 570
Administrative expenses (498) (487) (1,008)
Finance income 1 1 7
Finance costs (20) - (10)
Loss before taxation (343) (145) (441)
Income tax expense - prior year - - 13
- current year - - -
Loss for the period (343) (145) (428)
Basic loss per share (pence) (2.06p) (0.89p) (2.63p)
Diluted loss per share (pence) (1.96p) (0.87p) (2.53p)
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2009
31-Mar 31-Mar 30-Sep
2009 2008 2008
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000 £'000 £'000 £'000
Assets
Non-current Assets
Goodwill 1,082 987 1,082
Other intangible assets 34 40 37
Property, plant & equipment 58 55 49
1,174 1,082 1,168
Current assets
Inventories 71 44 68
Trade receivables 124 836 548
Cash & cash equivalents 121 35 178
316 915 794
Total assets 1,490 1,997 1,962
Equity and liabilities
Equity
Share capital 6,315 6,310 6,315
Share premium 11,675 11,634 11,675
Share option reserve 123 119 120
Retained earnings (17,505) (16,879) (17,162)
Total equity 608 1,184 948
Current liabilities
Bank loan - 450 -
Borrowings 700 - 600
Trade & other payables 182 363 414
Total liabilities 882 813 1,014
Total equity & liabilities 1,490 1,997 1,962
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2009
Six months Six months Year ended
to to 30-Sep
31-Mar 31-Mar 2008
2009 2008 (Audited)
(Unaudited) (Unaudited)
£'000 £'000 £'000
Cash flows from operating
activities
Loss before taxation (343) (145) (441)
Adjustments for:
Depreciation of tangible assets 7 9 20
Amortisation of intangible assets 3 3 6
Loss on disposal of tangible - - 3
assets
Interest received (1) (6) (7)
Interest paid 20 4 10
(314) (135) (409)
Decrease/ (increase) in trade and 424 (425) (140)
other receivables
(Increase)/ decrease in (3) 10 (14)
inventories
Decrease in trade and other (777)
payables (232) (810)
(125) (1,360) 1,340
Tax refund received - - 21
Tax paid - - (1)
Net cash flows from operating (1,320)
activities (125) (1,360)
Cash flows from investing
activities
Purchase of property, plant and (8)
equipment (13) (1)
Interest received 1 6 7
Acquisition of subsidiary net of - - 2
cash acquired
Net cash used in investing (12) 5 1
activities
Cash flows from financing
activities
Proceeds from borrowings 100 450 600
Repayment of borrowings - - (36)
Interest Paid (20) (3) (10)
Net cash from financing activities 80 447 554
Net cash decrease in cash and cash (765)
equivalents (57) (908)
Cash and cash equivalents at 943
beginning of period 178 943
Cash and cash equivalent at end of 178
period 121 35
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 MARCH 2009
Share
Share Share Option Retained
Capital Premium Reserve Earnings Total
£'000 £'000 £'000 £'000 £'000
At 30 September 6,315 11,675 120 (17,162) 948
2008
Changes in equity
Loss for period - - - (343) (343)
Equity share option - - 3 -
recognised 3
At 31 March 2009 6,315 11,675 123 (17,505) 608
Share
Share Share Option Retained
Capital Premium Reserve Earnings Total
£'000 £'000 £'000 £'000 £'000
At 30 September 6,310 11,634 117 (16,734) 1,327
2007
Changes in equity
Profit for period - - - (145) (145)
Equity share option - - 2 -
recognised 2
At 31 March 2008 6,310 11,634 119 (16,879) 1,184
NOTES TO THE HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2009
1. BASIS OF PREPARATION
The interim report is unaudited and does not constitute statutory accounts
within the meaning of s240 of the Companies Act 1985. The statutory accounts
for 2007, which were prepared under IFRS, have been delivered to the Registrar
of Companies. The auditor's opinion on these accounts was unmodified and did
not contain a statement under s237 (2) or s237 (3) of the Companies Act 1985.
The interim financial information has been prepared on a basis which is
consistent with the accounting policies adopted by the Company for the last
financial statements and in compliance with IAS 34.
Comparative figures are given for the six months ended 31 March 2008 and the
year ended 30 September 2008.
2. REVENUE AND LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
The results for the six months ended 31 March 2009 and 31 March 2008 are
unaudited. The audited results for the year ended 30 September 2008 have also
been shown.
By geographical 2009 2008
location
Loss Loss
Before Before
Revenue Taxation Revenue Taxation
£'000 £'000 £'000 £'000
United Kingdom 295 (334) 1,096 (137)
United States - - - -
Asia 8 (9) 68 (8)
303 (343) 1,164 (145)
3. LOSS PER ORDINARY SHARE
The loss per share is based on a loss for the period of £343,000 (six months
ended 31 March 2008: a loss of £145,000; year ended 30 September 2008: a loss
of £428,000), being the loss attributable to ordinary shareholders, and a
weighted average of 16,670,284 (31 March 2008: 16,210,284; 30 September 2008:
16,241,791) ordinary shares.
The diluted loss per share is based on a time weighting of the options granted
by the current Talent Group employee share option plan.
4. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN CASH AND CASH EQUIVALENTS
31-Mar 31-Mar 30-Sep
2009 2008 2008
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Decrease in cash and cash equivalents
in the period (57) (908) (765)
Cash and cash equivalents at beginning 178 943 943
of period
Cash and cash equivalents at end of 121 (35) 178
period
5. COPIES OF THE INTERIM RESULTS
Copies of the half-yearly results will be available from the Company's
registered office 13-19 Vine Hill, London EC1R 5DW and will be available from
the Company's website www.talenttv.com.
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