Half Yearly Report

RNS Number : 9487H

Talent Group PLC

27 June 2013

 

27 June 2013

Talent Group plc

("Talent" or the "Company" or the "Group)

Unaudited interim results for the six month period ended 31 March 2013

CHAIRMAN'S STATEMENT

I present the Group's results for the six months ended 31 March 2013.

Group turnover for the period was £315,000 (2012 - £706,000), on which gross profit was £75,000 (2012 - £257,000). After operating costs of £223,000 (2012 - £221,000) and interest charges of £22,000 (2012 - £27,000), the operating loss for the period (and the loss after taxation) was £170,000 (2012 - profit of £9,000 before and after taxation). Earnings per share were a loss of 0.744p (2012 - earnings of 0.041p).

It goes without saying that these results are extremely disappointing. After incurring losses for a number of years, the Group had appeared to be making good progress, and was able to trade profitably for the 18 months to 31 March 2012. However, as I reported in the 2012 full year results, there was very little production activity in either of our production companies, Talent Television and Talent Television South, in the second half of the last financial year.

In the six months to 31 March 2013, there has been some improvement in this position, Talent Television South has completed two documentaries, on Frankie Fraser (which received extensive pre-broadcast interest in the national press) and Broadmoor, for The Crime and Investigation Network, and has been commissioned by the same channel to produce a third series of crime documentaries: these went into production in March. Talent South has also delivered a number of short documentary features for both Imperial College Hospital and Creative Skillset.

Talent Television is currently co-producing two feature films: Peterman, which commenced filming this month, is a low budget crime thriller, but with a strong cast including Alison Steadman, Phil Davis and Peter Bowles; and The Deranged Marriage, a film adaptation of a successful stage play, which is currently raising finance with the expectation of entering production within the next six months. A number of other film projects are in the early stages of development.

Talent Television is also continuing development on a number of television projects in the scripted comedy, children's, and entertainment genres, including a possible second series of My Phone Genie.  We are currently in discussions with major national broadcasters over another two of these projects, although it is not likely that either of these will enter production before 2014. Accordingly we are taking steps to reduce further our overhead base until these income streams materialise.

Terry Bate

Chairman

27 June 2013

FURTHER ENQUIRIES

Talent Group plc
Tony Humphreys (Managing Director)	020 7415 7114
Sanlam Securities UK
Simon Clements	020 7628 2200

TALENT GROUP plc

CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2013

	Six months ended 31-Mar 2013	Six months ended 31-Mar 2012	Year ended 30-Sep 2012
	(Unaudited)	(Unaudited)	(Audited)
	£'000	£'000	£'000
Revenue	315	706	1,041
Cost of sales	(240)	(449)	(749)
Gross profit	75	257	292
Administrative expenses	(223)	(221)	(494)
Finance income	-	-	-
Finance costs	(22)	(27)	(43)
(Loss)/profit before taxation	(170)	9	(245)
Income tax expense - prior year refund	-	-	-
- current year	-	-	-
(Loss)/profit for the period	(170)	9	(245)
Basic (loss)/earnings  per share (pence)	(0.774p)	0.041p	(1.116p)
Diluted (loss)/earnings per share (pence)	(0.744p)	0.039p	(1.066p)

TALENT GROUP plc

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2013

	31-Mar 2013		31-Mar 2012		30-Sep 2012
	(Unaudited)		(Unaudited)		(Audited)
	£'000	£'000	£'000	£'000	£'000	£'000
Assets
Non-current assets
Goodwill		1,082		1,082		1,082
Property, plant & equipment		12		18		14
		1,094		1,100		1,096
Current assets
Inventories	95		78		138
Trade receivables	188		505		78
Cash & cash equivalents	13		34		11
		296		617		227
Total assets		1,390		1,717		1,323
Equity and liabilities
Equity
Share capital		6,368		6,368		6,368
Share premium		11,822		11,822		11,822
Share option reserve		150		144		148
Retained earnings		(18,746)		(18,322)		(18,576)
Total equity		(406)		12		(238)
Current liabilities
Bank overdraft	29		-		30
Borrowings	850		862		850
Trade & other payables	917		843		681
Total liabilities		1,796		1,705		1,561
Total equity & liabilities		1,390		1,717		1,323

TALENT GROUP plc

CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2013

		Six months ended 31-Mar 2013 (Unaudited)	Six months ended 31-Mar 2012 (Unaudited)	Year ended 30-Sep 2012 (Audited)
		£'000	£'000	£'000
Cash flows from operating activities
(Loss)/profit  before taxation		(170)	9	(245)
Adjustments for:
Depreciation of tangible assets		2	4	7
Share option reserve		2	3	7
Interest paid		22	27	43
		(144)	43	(188)
(Increase)/decrease in trade and other receivables		(110)	(257)	170
Decrease/(increase) in inventories		43	(23)	(83)
Increase in trade and other payables		236	270	108
		25	33	7
Tax refund received		-	-	-
Tax paid		-	-	-
Net cash flows from operating activities		25	33	7
Cash flows from investing activities
Purchase of property, plant and equipment		-	(1)	-
Interest received		-	-	-
Net cash used in investing activities		-	(1)	-
Cash flows from financing activities
Net decrease in borrowing		-	-	(12)
Interest paid		(22)	(27)	(43)
Net cash from financing activities		(22)	(27)	(55)
Net cash increase/(decrease) in cash and cash equivalents		3	5	(48)
Cash and cash equivalents at beginning of period		(19)	29	29
Cash and cash equivalent at end of period		(16)	34	(19)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 MARCH 2013

	Share Capital	Share   Premium	Share Option Reserve	Retained Earnings	Total
	£'000	£'000	£'000	£'000	£'000
At 30 September 2012	6,368	11,822	148	(18,576)	(238)
Loss for period	-	-	-	(170)	(170)
Equity share option recognised	-	-	2	-	2
At 31 March 2013	6,368	11,822	150	(18,746)	(406)

	Share Capital	Share Premium	Share Option Reserve	Retained Earnings	Total
	£'000	£'000	£'000	£'000	£'000
At 30 September 2011	6,368	11,822	141	(18,331)	-
Profit for period	-	-	-	9	9
Equity share option recognised	-	-	3	-	3
At 31 March 2012	6,368	11,822	144	(18,322)	12

NOTES TO THE HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2013

1.       BASIS OF PREPARATION

The interim report is unaudited and does not constitute statutory accounts within the meaning of s498 of the Companies Act 2006. The statutory accounts for 2012, 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 s498 of the Companies Act 2006.

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 2012 and the year ended 30 September 2012.

2.       REVENUE and loss on ordinary activities before taxation

The results for the six months ended 31 March 2012 and 31 March 2011 are unaudited. The audited results for the year ended 30 September 2011 have also been shown.

By geographical location	2013		2012
	Revenue £'000	(Loss) Before Taxation £'000	Revenue £'000	Profit Before Taxation £'000
United Kingdom	315	(170)	650	9
Europe	-	-	56	-
	315	(170)	706	9

3.       EARNINGS PER ORDINARY SHARE

The earnings per share is based on a loss for the period of £170,000 (six months ended 31 March 2012: a profit of £9,000; year ended 30 September 2012: a loss of £245,000), being the profit or loss attributable to ordinary shareholders, and a weighted average of 21,960,284 ordinary shares.

The diluted earnings /(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 eqivalents

	31-Mar 2013	31-Mar 2012	30-Sep 2012
	(Unaudited)	(Unaudited)	(Audited)
	£'000	£'000	£'000
Increase/(decrease) in cash and cash equivalents in the period	29	5	(48)
Cash and cash equivalents at beginning of period	(19)	29	29
Cash and cash equivalents at end of period	10	34	(19)

5.       COPIES OF THE INTERIM RESULTS

Copies of the half-yearly results will be available from the Company's registered office FBC Studio 31, 40 Bowling Green Lane, London EC1R 0NE, and will be available from the Company's website www.talenttv.com.

 

END

 

 

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