Embargoed: not to be released before 7:00 a.m.
19 May 2005
TALENT GROUP PLC ('Talent' or 'the Company')
Interim announcement of results
for the six month period ended 31st March, 2005
I am pleased to report your company's results for the six-month period ended 31
March 2005. The interim figures show an increase in gross profit to £716,000
compared to £615,000 for the same period last year. The operating loss before
goodwill amortisation has decreased slightly from £31,000 to £29,000 and the
retained loss has decreased slightly from £90,000 to £86,000, as we continued
to invest in building up our core team of experienced television professionals.
This team is now complete. The group continues to have a healthy cash position.
Your directors are not declaring an interim dividend.
This has been a half year of continued operational progress. One of the
original aims of the company was, and continues to be, to develop and produce
programmes that can generate secondary income streams from licensing. Last
month we were pleased to announce that we had entered into a DVD licensing
agreement for our Test the Nation brand. The first product is planned for
release in the UK in time for the Christmas 2005 market and the first revenues
will be received in the second half of this financial year.
On the programming front, our reputation for quality was recently recognised
when Test the Nation - The Great British Test won the prestigious Rose d'Or
award for game shows at the annual television festival in Lucerne. In addition,
Talent TV has been commissioned to produce one of ITV's official 50th
anniversary celebration programmes, What did ITV do for me? which will be
highlighted in its autumn schedules. In children's television, Best of Friends
is regularly rated amongst the top ten children's programmes in the UK and we
were delighted to be commissioned to produce a special series in South Africa
for Children's BBC, which will be broadcast as part of the BBC's special Africa
week in July.
Your Board remains optimistic that further progress will be made in the current
financial year. My personal thanks go to my co-directors and all of our
excellent people within Talent, for their contribution.
Robert Benton
Chairman
19 May 2005
GROUP PROFIT AND LOSS ACCOUNT
as at 31 March 2005
6 months to 6 months to Year ended
31 March 31 March 30
September
2005 2004 2004
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Turnover 3,202 3,281 5,424
Cost of sales (2,486) (2,666) (4,210)
Gross result 716 615 1,214
Operating costs
Administrative expenses (745) (646) (1,213)
Goodwill write-off (60) (60) (119)
(805) (706) (1,332)
Operating loss (89) (91) (118)
Net interest 3 4 14
Loss before taxation (86) (87) (104)
Taxation - (3) (23)
Loss for the period (86) (90) (127)
Basic loss per share (pence) (0.53)p (0.56)p (0.79)p
Diluted loss per share (pence) (0.50)p (0.53)p (0.75)p
The results relate to the continuing activities of the Group.
There were no recognised gains or losses other than the loss for the financial
period.
GROUP BALANCE SHEET
as at 31 March 2005
31 March 2005 31 March 2004 30 September
2004
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000 £'000 £'000 £'000
Fixed assets
Tangible assets 44 44 42
Goodwill 927 1,046 987
971 1,090 1,029
Current assets
Debtors 371 239 656
Work in progress 69 57 54
Cash at bank and in
hand:
- General 330 485 364
- Controlled productions 1,537 1,065 794
2,307 1,846 1,868
Creditors: amounts (2,005) (1,533) (1,534)
falling due within one
year
Net current assets 302 313 334
Total assets less 1,273 1,403 1,363
current liabilities
Creditors: amounts (7) (14) (11)
falling due after more
than one year
Net assets 1,266 1,389 1,352
Capital and reserves
Called up share capital 6,310 6,310 6,310
Share premium account 11,634 11,634 11,634
Profit and loss account (16,678) (16,555) (16,592)
Shareholders' funds 1,266 1,389 1,352
GROUP CASH FLOW STATEMENT
For the six months ended 31 March 2005
6 months to 6 months to Year ended
31 March 31 March 30
September
Note 2005 2004 2004
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Net cash inflow from operating 6 715 908 510
activities
Returns on investments and
servicing of finance
Interest paid - (2) (2)
Interest received 3 6 16
3 4 14
Taxation - (3) (1)
Capital expenditure and financial
investment
Purchase of tangible fixed assets (9) (11) (17)
(9) (11) (17)
Increase in cash 7 709 898 506
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the six months ended March 2005
1. INTERIM FINANCIAL STATEMENTS
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 31 March 2005 and 31 March 2004 are
unaudited. The audited results for the year ended 30 September 2004 have also
been shown.
3. GOODWILL
Goodwill arising on the acquisition of Talent Group Limited is being written
off on a straight line basis over ten years.
4. LOSS PER ORDINARY SHARE
The loss per share is based on a loss of £86,000 (six months ended 31 March
2004: £90,000; year ended 30 September 2004: £127,000), being the loss
attributable to ordinary shareholders, and a weighted average of 16,210,284 (31
March 2004: 16,210,284; 30 September 2004: 16,210,284) 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.
5. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
31 March 31 March 30
September
2005 2004 2004
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Loss for the financial period (86) (90) (127)
Net movement in shareholders' funds (86) (90) (127)
Shareholders' funds at 1 October 2004 1,352 1,479 1,479
Shareholders' funds at 31 March 2005 1,266 1,389 1,352
6. RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW FROM OPERATING ACTIVITIES
31 March 31 March 30
September
2005 2004 2004
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Operating loss (89) (91) (118)
Depreciation and impairment on 7 8 16
tangible fixed assets
Goodwill amortisation 60 60 119
(Increase)/decrease in work in (15) 52 55
progress
Decrease in debtors 285 900 444
Increase/(decrease) in creditors 467 (21) (6)
Net cash inflow from operating 715 908 510
activities
7. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
31 March 31 March 30
September
2005 2004
2004
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Increase in cash in the period 709 898 506
Movement in net funds in the period 709 898 506
Net funds at beginning of period 1,158 652 652
Net funds at end of period 1,867 1,550 1,158
8. 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 Tel: 020 7421 7800
Tony Humphreys (managing director)
Frances Horrell (finance director)
John East & Partners Limited Tel: 020 7628 2200
John East
END
© 2005 PR Newswire
