RNS Number:9847Q
Maverick Entertainment Group PLC
08 September 2005
Maverick Entertainment Group PLC
Interim Results
An improved performance
8 September 2005
Maverick Entertainment Group PLC ("Maverick" or "the Company"), the AIM listed
company specialising in the creation, acquisition and development of IPR in
children's films, television programmes, characters and related entertainment
products, today announces its Interim Results for the six months ended 30 June
2005.
* Turnover increased by 97% to #152,736 (2004: #77,652)
* Gross profit of #61,016 (2004: loss #133,950)
* Operating loss reduced to #165,616 (2004: loss #413,621)
* Muffin the Mule
* New 26 episode Muffin the Mule children's cartoon series delivered to
the BBC and first broadcast on 5 September 2005 on BBC2
* Muffin the Mule consumer products to be available in retail outlets from
September, with promotional link up with BB's coffee and muffin shops
* Full range of Muffin the Mule toys to be launched at Toy Fair
in January 2006
* International sales process has commenced
* Bananas in Pyjamas continue to progress well
* DVD Distribution - Fairly Odd Parents, 64 Zoo Lane, Spider and Hairy Maclary
have all performed well and represent the majority of Company sales in the
first half. Further new releases are expected in the second half
Mike Diprose, Chief Executive, commented:
"Muffin the Mule has commenced his new life well with significant support from
the BBC. We intend to capitalise on the high level of awareness from now until
Muffin the Mule's 60th anniversary in October 2006 to build a major new
children's brand. The first income from Muffin the Mule will show in the second
half year of 2005 and continue throughout 2006 as the Toy lines are launched.
The awareness will continue to build with the regular transmissions on BBC
television. The Company will also be looking at the International markets as a
priority to develop in 2006."
"The return to profit remains the Company's key objective for 2005. Trading for
the first six months of the year shows signs of recovery and positive signs for
the achievement of this objective. The new relationships we have developed over
the last year are working well."
For further information please contact
Maverick Entertainment Tavistock Communications Seymour Pierce Limited
Mike Diprose/ Sookra Raveendran Lulu Bridges/Paul Dulieu Mark Percy
Tel: 01844 260858 Tel: 020 7920 3150 Tel: 020 7107 8000
Email: Email: Email:
info@maverickentertainment.co.uk lbridges@tavistock.co.uk markpercy@seymourpierce.com
CHAIRMAN'S STATEMENT
Results Overview
The return to profit remains the Company's key objective for 2005. Trading for
the six months ended 30 June 2005 shows signs of recovery and positive signs for
the achievement of this objective. Turnover for the period was #152,736, up 97%
on the same period last year and virtually the same as turnover for the entire
previous financial year. Gross profit amounted to #61,016 (2004: loss #133,950).
Net losses for the half year amounted to #187,176 (2004: loss #394,558).
Distribution and administrative costs were reduced from #279,671 in the six
months ended 30 June 2004 to #226,632 for the period under review.
During the period, the Company successfully raised #72,500 through the placing
of 29,000,000 new ordinary shares. Following the period end a further #137,500
was raised through the placing of 55,000,000 new ordinary shares. The net
proceeds of the placings will provide the Company with additional working
capital.
The Company's stated objective to seek more suitable and effective partners is
beginning to reap rewards. This is particularly true in the DVD sector where we
now have respectable retail distribution for our key series. The Company is
focussed on maximising return from its key IPR and on developing new IPR for
2006 onwards.
IPR Developments
Muffin the Mule
On 25 August 2005, we announced that we had delivered the first 26 episodes of
our new children's cartoon series of Muffin the Mule to BBC Television. At the
time of writing this statement, Muffin the Mule has returned to the BBC on BBC2
and the CBeebies channel. From 5 September, Muffin the Mule will be shown for
an unprecedented four times a day. The weekend before first transmission saw
significant national press coverage announcing the "return of Muffin".
The first Muffin the Mule consumer products will appear on the retail shelves in
September and October, and will include four TV tie-in books, a 2006 anniversary
annual, three DVD's and a major comic launch through our license agreement with
Future Publishing.
September will also see a major tie up with BB's coffee and muffin shops. Muffin
the Mule will be promoted in over 100 of their outlets across the UK for at
least six months. There will be Muffin the Mule Kids menus, meal boxes, tray
liners, counter strips and cake decorations.
The major launch of Muffin the Mule toys will take place at the 2006 Toy Fair in
January and we already have agreements in place with Character Options, Martin
Yaffe and Fun to Learn with others to follow shortly. In addition, 10 original
tracks of new music have been recorded for release commercially in 2006
including We Want Muffin (new arrangement), Pump up the Penguin and Do the
Muffin.
Copies of the TV series have been distributed to key International broadcasters
and we are optimistic of securing international deals during the MIPCOM
international TV show in Cannes in October.
Snailsbury Tales, Bananas in Pyjamas
Books and DVD'S for Snailsbury Tales are still available at retail, with support
from the continuing transmissions on BBC TV. Through our relationship with Peak
Entertainment, we expect to re launch Snailsbury Tales as a gift range during
2006. The Bananas in Pyjamas live show will continue to tour for the remainder
of 2005 and into 2006 generating revenue from the merchandise sold at the
venues.
DVD
Despite the background of a weak retail environment, we have continued to extend
our DVD distribution in the first half of 2005. Our titles Fairly Odd Parents,
64 Zoo Lane, Spider, and Hairy Maclary have all performed well in High Street
stores and represent the bulk of the turnover in the first half of 2005. New
releases expected during the second half year include Muffin the Mule, The Way
things Work, Franklins Christmas, Santa's Special Delivery, El Nombre and more
episodes of Fairly Odd Parents. We will also be exploring ways of taking
advantage of new technology to deliver our key IPR, this will include digital
downloads via mobile telephones.
OUTLOOK
Muffin the Mule has commenced his new life well with significant support from
the BBC. We intend to capitalise on the high level of awareness from now until
Muffin the Mule's 60th anniversary in October 2006 to build a major new
children's brand.
The first income from Muffin the Mule will show in the second half year of 2005
and continue throughout 2006 as the toy lines are launched. The awareness will
continue to build with the regular transmissions on BBC television.
The Company will also be looking at the International markets as a priority to
develop in 2006. This will be achieved through specific relationships with other
media partners.
The new relationships we have developed over the last year are working well,
particularly with Lace Group who distribute and sell our DVD products. The
relationship with Peak Entertainment has started well and is generating income
from licensed product advances. This type of relationship increases the
Company's sales, and improves its operating margins and efficiencies.
The directors continue to seek and develop new IPR as well as maximising the
return from its existing portfolio. We believe that the Company is progressing
towards its objective of becoming a significant owner of valuable children's
IPR.
MAVERICK ENTERTAINMENT GROUP PLC
GROUP PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 30 JUNE 2005
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 June 2005 30 June 2004 31 December 2004
# # # # # #
Turnover 152,736 77,652 155,887
Cost of sales (91,720) (211,602) (2,101,562)
----------- ----------- -----------
Gross profit/(loss) 61,016 (133,950) (1,945,675)
Distribution costs 9,320 8,098 14,253
Administrative
expenses 217,312 271,573 755,062
----------- ---------- ----------
(226,632) (279,671) (769,315)
----------- ----------- -----------
Operating loss (165,616) (413,621) (2,714,990)
Interest
receivable - 19,063 20,903
Interest payable (21,560) - (48,052)
----------- ----------- -----------
Loss on ordinary
activities before
taxation (187,176) (394,558) (2,742,139)
Tax on ordinary
activities - - -
----------- ----------- -----------
Retained loss
for the
financial period
after taxation (187,176) (394,558) (2,742,139)
=========== =========== ===========
Basic loss per share (0.0317)p (0.1290)p (0.812)p
=========== =========== ===========
Diluted loss per share (0.0317)p (0.1290)p (0.812)p
=========== =========== ===========
MAVERICK ENTERTAINMENT GROUP PLC
GROUP BALANCE SHEET
AS AT 30 JUNE 2005
Unaudited Unaudited Audited
As at 30 June 2005 As at 30 June 2004 As at 31 December 2004
# # # # # #
Fixed assets
Intangible assets 1,538,374 2,732,453 1,073,009
Tangible assets 7,620 9,534 8,670
----------- ----------- -----------
1,545,994 2,741,987 1,081,679
Current assets
Stocks 365,790 172,744 349,442
Debtors 419,600 518,964 420,720
Cash at bank
and in hand 2,346 157,501 189,701
----------- ----------- -----------
787,736 849,209 959,863
Creditors:
amounts falling
due within one year (832,780) (329,883) (407,603)
----------- ----------- -----------
Net current
(liabilities)
/assets (45,044) 519,326 552,260
----------- ----------- -----------
Total assets
less current
liabilities 1,500,950 3,261,313 1,633,939
Creditors:
amounts falling
due after more
than one year
Convertible debt (617,700) (580,000) (617,700)
----------- ----------- -----------
Net assets 883,250 2,681,313 1,016,239
=========== =========== ===========
Capital and
reserves
Called up
share capital 3,370,268 3,056,890 3,341,268
Share premium 2,227,835 1,804,519 2,202,648
Merger reserve (749,653) (749,653) (749,653)
Profit and
loss account (3,965,200) (1,430,443) (3,778,024)
----------- ----------- -----------
Shareholders'funds 883,250 2,681,313 1,016,239
=========== =========== ===========
Equity interests (1,867,950) 2,681,313 (1,734,961)
Non-equity interests 2,751,200 - 2,751,200
----------- ----------- -----------
883,250 2,681,313 1,016,239
=========== =========== ===========
MAVERICK ENTERTAINMENT GROUP PLC
SUMMARISED GROUP CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2005
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 June 2005 30 June 2004 31 December 2004
# # #
Net cash outflow from
operating activities (26,887) (515,127) (941,213)
Returns on investment and
servicing of finance (2,560) 19,063 19,950
Capital expenditure and
financial investment (259,856) (459,212) (684,320)
----------- ----------- -----------
(289,303) (955,276) (1,605,583)
Financing - - 682,507
----------- ----------- -----------
Decrease in cash (289,303) (955,276) (923,076)
=========== =========== ===========
RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 June 2005 30 June 2004 31 December 2004
# # #
Operating loss (165,616) (413,621) (2,714,990)
Depreciation and
amortisation charges 1,050 122,550 2,007,966
Increase in stocks (16,348) (152,938) (329,636)
Decrease/(increase) in
debtors 55,307 (86,327) 11,917
Increase in creditors due
within one year 98,720 15,209 83,530
----------- ----------- -----------
Net cash outflow from
operating activities (26,887) (515,127) (941,213)
=========== =========== ===========
ANALYSIS OF MOVEMENT IN NET DEBT - UNAUDITED
At 1 January 2005 Cash flow At 30 June 2005
# # #
Cash in hand and at bank 189,701 (187,355) 2,346
Bank overdraft - (101,948) (101,948)
Convertible redeemable
loan stock (580,000) - (580,000)
----------- ----------- -----------
Net debt (390,299) (289,303) (679,602)
=========== =========== ===========
MAVERICK ENTERTAINMENT GROUP PLC
NOTES TO THE INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2005
1. The interim results for the period ended 30 June 2005 have been prepared
using accounting policies consistent with those set out in the statutory
accounts of Maverick Entertainment Group plc for the year ended 31 December
2004. The financial information for the year ended 31 December 2004 is
derived from the statutory accounts of the Group which have been delivered
to the Registrar of Companies and on which the auditors gave an unqualified
opinion. The interim results have been prepared on a going concern basis.
The Group is dependent upon the future commercial success of its animated
productions and merchandising. In order to effectively market its products,
the Group may require future funding. The Directors are confident that, if
required, sufficient finance will be available and, therefore, consider it
appropriate to prepare the interim results on a going concern basis.
2. The interim financial information for the period ended 30 June 2005 is
unaudited and does not constitute statutory accounts within the meaning of
Section 240 of the Companies Act 1985.
3. The loss per share for the period has been calculated based on the loss
on ordinary activities after taxation divided by the weighted average number
of shares in issue during the period.
4. Copies of the interim report will be sent to all shareholders in due course
and will be available from the Company Secretary, Maverick Entertainment
Group plc, Belmont House, 13 Upper High Street, Thame, Oxfordshire OX9 3ER.
5. The interim results announcement was approved by the Board of Directors
on 7 September 2005.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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