Final Results
December 18 2003 - 8:58AM
UK Regulatory
RNS Number:4329T
Talent Group PLC
18 December 2003
For Immediate Release
18 December, 2003
Talent Group Plc ("Talent" or "the Company")
Preliminary Results
for the year ended 30 September, 2003
Chairman's Statement
Results
I am pleased to present the results for the year ended 30 September 2003. The
reverse takeover of RMR plc by Talent Group Limited was completed on 23 December
2002 and the figures primarily reflect the Talent business from that date.
Turnover for the year to 30 September 2003 was #2,919,000 (7 months to 30
September 2002: #148,000 ) on which a pre tax loss of #480,000 was incurred ( 7
months to 30 September 2002: loss of #938,000). This loss includes relocation
costs, resulting from the move to larger offices of #63,000 and Goodwill
written-off of #90,000.
The net cash position at 30 September 2003 was #286,000 compared to a balance of
#706,000 at 30 September 2002. For the year, there was a loss per share of 3.1p
compared with a loss per share of 10.1p for the 7 months to 30 September 2002.
Overview
It is just twelve months since Talent Group Limited reversed into RMR and
obtained a quotation on the Alternative Investment Market. Your Directors'
ambitions, stated twelve months ago, to establish Talent Television Limited as a
pre-eminent independent producer across entertainment, factual entertainment,
children's television, interactive and events remain intact. During the year we
have made good progress in building our management and development teams and
have been successful with further Test the Nation programmes, commissions for
our new children's division Talent Kids, and the co-production of Casino Casino
for Challenge TV. The benefits of these have been offset by the delay and
potential cancellation of the commissioning of a further series of The Villa for
Sky One and the costs of a major relocation of offices that is already proving
beneficial. We believe the outlook for the Group for the current year is looking
encouraging.
During the year the Group has invested in key members of staff including the
recruitment of David Sankey as our new Head of Development - Entertainment. With
his arrival and the restructuring of his team we are making good progress with a
number of new entertainment, factual entertainment and event programme formats.
We hope these will service both the UK and International markets in future
years. Efforts to attract other high quality people are ongoing.
The Board anticipates that the good start to the current trading year will lead
to improved financial performance and strengthen the Group's position to take
advantage of the changing regulatory and commercial environment in the
television industry. An objective this year must be to establish Talent
Television Limited with a meaningful number of different productions thus
providing a stable financial platform for the ongoing development of the Group.
Morale and spirit remain high and the Board is confident in the Group's future
prospects.
BOARD CHANGES
Edward Carroll resigned from the Board on 23 December 2002 and Michael Mills
resigned on 1 June 2003. On 23 December 2002, John Kaye Cooper, Anthony
Humphreys, Colin Nicholl and I joined the Board as Deputy Chairman and Creative
Director, Managing Director, Finance Director and Chairman respectively. George
Kynoch joined the Board on 1 June 2003 and Anne Miles on 24 November 2003.
Enterprise Investment Scheme ("EIS")
A number of shareholders of the Company acquired ordinary shares in the Company
at the placing and admission of the Company's shares to AIM in April 2000 with
the benefit of EIS income tax relief. Under EIS legislation, the investment must
remain qualifying and be held for three years to qualify for this relief.
Following the acquisition of Talent, the Company made representations to the
Inland Revenue. I am pleased to report that we have received confirmation that
the Company continues to qualify as a 'qualifying trading company'.
Current Trading and Outlook
During the last nine months Talent has continued to develop its television
production business. Two new series have been commissioned, Best of Friends for
CBBC, and Inside Clyde for Disney UK. These are currently in production and will
be screened in the early part of the New Year. Discussions continue with various
parties on a number of further new series for both specialist children's
channels and for large entertainment and factual departments. These include a
major international children's action series involving Canadian and European
partners, a science based quiz show, a children's animation production and a
separate children's series. We hope to be able to make further announcements in
the early New Year.
The BBC has committed to another four shows of Test the Nation during 2004 and,
in addition, we have recently been involved in the first Test the Nation show in
Japan. Here we are hopeful of further opportunities to act as a consultant
producer. Discussions are taking place with two other new countries that may see
the commissioning of Test the Nation. The show continues to demonstrate Talent's
ability to produce major, live, entertainment specials.
Finally, I would like to take this opportunity to thank everyone within Talent
Group, together with its advisers, for their support and contribution over the
year.
Robert Benton
Chairman
18 December, 2003
Group Profit and loss account
For the year ended 30 September, 2003
Note 12 months 7 months
to 30 September to 30 September
2003 2002
#'000 #'000
Turnover 2,919 148
Cost of sales (2,244) (282)
---------- ----------
Gross result 675 (134)
Operating costs
Goodwill write-off (1,083) (508)
Restructuring costs (90) (100)
Administrative expenses - (219)
---------- ----------
(1,173) (827)
---------- ----------
Operating loss (498) (961)
Net interest 18 23
---------- ----------
Loss before taxation (480) (938)
Taxation 49 322
---------- ----------
Loss for the period (431) (616)
========== ==========
Basic loss per share (pence) 3 (3.10)p (10.10)p
========== ==========
Diluted loss per share (pence) 3 (2.77)p (8.57)p
========== ==========
Group balance sheet
As at 30 September, 2003
30 September 2003 30 September 2002
#'000 #'000 #'000 #'000
Fixed assets
Tangible assets 1,106 -
Goodwill 41 -
---------- ----------
1,147 -
Current assets
Stocks 109 -
Debtors 1,139 389
Cash at bank and in hand
- General 394 706
- Controlled Productions 366 -
--------- ---------
2,008 1,095
Creditors: amounts falling due within
one year (1,658) (348)
--------- ---------
Net current assets 350 747
---------- ----------
Total assets less current liabilities 1,497 747
Creditors - amounts falling due after
more than one year (18) (21)
---------- ----------
Net assets 1,479 726
========== ==========
Capital and reserves
Called up share capital 6,310 6,110
Share premium account 11,634 10,650
Profit and loss account (16,465) (16,034)
---------- ----------
Shareholders funds 1,479 726
========== ==========
Group cash flow statement
For the year ended 30 September, 2003
12 months to 30 7 months to 30
September 2003 September 2002
#'000 #'000
Net cash
outflow from
operating
activities (760) (906)
Returns on investments and servicing of
finance
Interest
element of
finance lease
rentals - (1)
Interest paid (1) -
Interest
received 19 24
----------- -----------
18 23
----------- -----------
Taxation 322 -
Capital expenditure and financial investment
Purchase of
tangible fixed
assets (27) -
Sale of
tangible fixed
assets - 51
----------- -----------
(27) 51
----------- -----------
Acquisitions
Cash acquired
with
subsidiary
undertaking 573 -
----------- -----------
Net cash
inflow from
acquisitions 573 -
----------- -----------
Financing
Expenses paid
in connection
with the issue
of share
capital (180) -
----------- -----------
(180) -
----------- -----------
Decrease in
cash 54 (832)
=========== ===========
Notes to the preliminary Results
1. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985.
The group balance sheet at 30 September, 2003 and the group profit and loss
account, group cash flow statement and associated noted for the year then ended
have been extracted from the Group's financial statements. Those financial
statements have not yet been delivered to the Registrar of Companies, nor have
the auditors reported on them.
2. DIVIDENDS
The Directors are not proposing the payment of a dividend in respect of the year
ended 30 September, 2003.
3. LOSS PER ORDINARY SHARE
The loss per share is based on a loss of #431,000 (30th September, 2002:
#616,000), being the loss attributable to ordinary shareholders, and a weighted
average of 13,894,134 (30 September, 2002: 6,110,284) ordinary shares.
The diluted loss per share is based on a weighted average of 15,599,711 shares
(30 September, 2002: 7,185,834)
4. Copies of REPORT AND ACCOUNTS
Copies of the Report and Accounts 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 7421 7818
John East & Partners Limited
John East/Simon Clements Tel: 020 7628 2200
This information is provided by RNS
The company news service from the London Stock Exchange
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