Interim Results
June 18 2003 - 7:35AM
UK Regulatory
RNS Number:4712M
Talent Group PLC
18 June 2003
For Immediate Release
18th June 2003
Talent Group Plc ("Talent" or "the Company")
Interim announcement of results
for the six month period ended 31st March, 2003
Chairman's Statement
I am pleased to report the results for the six month period ended 31st March,
2003. These results reflect a period of transition for your company, following
the reverse takeover of RMR plc by The Talent Group Limited whose subsidiary,
Talent Television Limited is now the company's principal operating subsidiary.
The results of Talent Group have been consolidated for the period following
completion of the transaction on 23rd December last year.
The results for the period under review show a loss before taxation for the
period of #97,000 on a turnover of #1.55 million, giving a basic loss per share
of 0.86p. No dividend is declared in respect of the period under review.
The investment by Talent Group in its new childrens' programming division,
Talent Kids, is now beginning to produce results. Progress has been made on the
potential production of two new international series. One is with a major
American childrens' channel and the other, a pre-teenage comedy called My Teen
Genie, is set to be a co-production with Canadian and Japanese broadcasters.
Talent TV continues to enjoy the success of its Test the Nation series of
interactive tests for BBC1. More programmes are being planned for next year in
the UK and a first programme is scheduled for production in Japan towards the
end of 2003.
However, as I mentioned in my last statement, the later than expected scheduling
of the fourth series of The Villa has caused a delay in the possible
commissioning of the fifth series. This will hold back the company's financial
performance in the second half of the financial year. In addition the current
timing of productions is biased towards the first half of the financial year
with only one Test the Nation planned for the period to the end of September.
In the past six months your company has continued to invest in good people. I am
delighted to announce that the group has recruited David Sankey as new Head of
Development. David was Head of Development Entertainment at LWT and joins Talent
TV after spells at 19 TV (maker of Pop Idol) and Unique Group.
Talent Group has an excellent management team, capable of taking advantage of
both the structural and regulatory changes within the independent TV sector and
this, together with the group's healthy cash position, leads your board to view
the future with confidence.
Robert Benton
Chairman
18th June, 2003
Profit and loss account
For the six months ended 31st March, 2003
6 months to 7 months to 30th
31st March September 2002
2003 (Audited)
(Unaudited)
#'000 #'000
Turnover 1,552 148
Cost of sales (1,254) (282)
Staff costs -------- --------
Gross result 298 (134)
Operating cost (374) (508)
Goodwill write-off (30) (100)
Restructuring costs - (219)
Administrative expenses (404) (827)
-------- --------
Operating loss (106) (961)
Net interest 9 23
-------- --------
Loss before taxation (97) (938)
Taxation - 322
-------- --------
Loss for the period (97) (616)
======== ========
Basic loss per share (pence) (0.86)p (1.01)p
Diluted loss per share (pence) (0.77)p (0.99)p
======== ========
Group balance sheet
As at 31st March, 2003
31st March 2003 30th September 2002
(Unaudited) (Unaudited) (Audited) (Audited)
#'000 #'000 #'000 #'000
Fixed assets
Tangible assets 29 -
Goodwill 1,166 -
-------- --------
1,195 -
Current assets
Debtors 479 389
Work in progress 79 -
Cash at bank and in 1,051 706
hand
-------- --------
1,609 1,095
Creditors: amounts
falling due within one
year (971) (348)
-------- --------
Net current assets 638 747
-------- --------
Total assets less 1,833 747
current
liabilities
Creditors - amounts (20) (21)
falling
due after more than
one
year
-------- --------
Net assets 1,813 726
======== ========
Capital and reserves
Called up share 6,310 6,110
capital
Share premium account 11,634 10,650
Profit and loss (16,131) (16,034)
account
-------- --------
Shareholders funds 1,813 726
======== ========
Consolidated cash flow statement
For the six months ended 31st March, 2003
6 months to 7 months to
31st March 30th September
2003 2002
(Unaudited) (Audited)
#'000 #'000
Net cash outflow from operating activities (86) (906)
Returns on investments and servicing of finance
Interest element of finance lease rentals (1)
-
Interest received 8 24
-------- --------
8 23
-------- --------
Capital expenditure and financial investment
Sale of tangible assets - 51
-------- --------
- 51
Acquisitions
Purchase of subsidiary undertaking (150) -
Cash acquired with subsidiary undertaking 573 -
-------- --------
Net cash inflow from acquisitions 423 -
-------- --------
Cash inflow/(outflow) before management of liquid (832)
resources and financing
345
-------- --------
Increase/(Decrease) in cash 345 (832)
======== ========
NOTES TO THE INTERIM RESULTS
1. INTERIM RESULTS
The interim financial statements do not comprise statutory accounts for the
purposes of s240 of the Companies Act 1985.
2. TURNOVER AND LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
The results for the six months ended 31st March 2003 are unaudited. As there are
no results for the comparative period due to a change in the group's accounting
reference date, the audited results for the seven months ended 30th September
2002 have been shown.
Since the acquisition of Talent Group Limited, the turnover and loss on ordinary
activities before taxation is attributable to the production of television
programmes (to 30th September 2003: to the design and development of Internet
applications). The loss on ordinary activities for the six months to 31st March
include expenses of #8,000 relating to discontinued activities of the former RMR
Group.
3. GOODWILL
Goodwill arising on the acquisition of Talent Group Limited is being written off
on a straight line basis over ten years.
4. TAXATION
The tax receivable in the period to 30th September 2002 arose as a result of
claims for Research and Development Tax Credits in respect of the two years
ended 28th February 2002 and the period ended 30th September 2002.
5. LOSS PER ORDINARY SHARE
The loss per share is based on a loss of #97,000 (30th September 2002:
#616,000), being the loss attributable to ordinary shareholders, and a weighted
average of 11,177,514 (30th September 2002: 61,102,847) ordinary shares.
The diluted loss per share is based on the options granted at 30th September
2002 adjusted for the capital restructuring and a time weighting of the options
granted by the current Talent Group employee share option plan.
6. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
31st March 30th September
2003 2002
(Unaudited) (Audited)
#'000 #'000
Loss for the financial period (97) (616)
Issue of shares 1,184 -
-------- --------
Net movement in shareholders' funds 1,087 (616)
Shareholders' funds at 1st October, 2002 726 1,342
-------- --------
Shareholders' funds at 31st March, 2003 1,813 726
======== ========
7. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING
ACTIVITIES
31st March 30th September
2003 2002
(Unaudited) (Audited)
#'000 #'000
Operating loss (97) (961)
Depreciation and impairment on tangible fixed 3 65
assets
Impairment losses on fixed asset investments 3 -
Goodwill amortisation 30 100
Work in progress write-off 22 -
(Profit)on sale of tangible fixed assets - (35)
Decrease in debtors (54) 127
Decrease in creditors 7 (202)
-------- --------
Net cash outflow from operating activities (86) (906)
======== ========
8. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
31st March 30th September
2003 2002
(Unaudited) (Audited)
#'000 #'000
Increase/(decrease) in cash in the period 345 (832)
Capital element of finance leases and hire - 23
purchase contracts
-------- --------
Movement in net funds in the period 345 (809)
Net funds at 1st October 2002 706 1,515
-------- --------
Net funds at 31st March 2003 1,051 706
======== ========
9. DIVIDEND
No dividend is declared in respect of the six month period ended 30th June 2003.
10. COPIES OF INTERIM RESULTS
Copies of the Interim Results will be sent to shareholders shortly and will be
available to members of the public from the Company's registered office, Lion
House, Red Lion Street, London, WC1R 4GB.
Enquiries
Talent Group Plc
Colin Nicholl Tel: 020 7659 2017
John East & Partners Limited
John East Tel: 020 7628 2200
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UWOAROARNAAR