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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Medal Ent&Med | LSE:MME | London | Ordinary Share | GB0031004350 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 23.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:9457N
Medal Entertainment & Media PLC
15 December 2006
15 December 2006
MEDAL ENTERTAINMENT & MEDIA PLC
("MEM" or "the Company")
Interim results for the six months ended 30 September 2006
Highlights:
* Group turnover #6.7m (2005: #5.5m)
* Pre-tax loss on continuing operations of #2.5m (2005: #1.4m)
* Total Loss per share 21.84p (2005: 12.90p)
* Sale of Fountain Television Ltd for cash proceeds of #6.8m substantially
reducing Group indebtedness
* 8 new commissions in the six month period for Scarlet Television
* Purchase of UGD/Britannia in October 2006 to strengthen DDHE
Brook Land, Chairman of MEM, said:
"Growth in infrastructure costs to service the growing turnover in the DVD
division increases the scale of seasonal variations and has resulted in an
increased operating loss for continuing divisions in the first six months. The
sale of Fountain Television will enable the group to concentrate its resources
on the growth of the core businesses, the first step of which was announced on 2
October 2006 with the acquisition of UGD/Britannia. Current trading and
indications for the rest of the year mean that we anticipate being in line with
market expectations for the full year."
Ends
Enquiries:
MEM Steve Ayres, Chief Executive 020 8900 5800
Nabarro Wells & Co. Ltd Richard Swindells 020 7710 7400
Nominated Adviser to
MEM
Medal Entertainment & Media plc
Interim results for the six months ended 30 September 2006
Chairman's Review
During the six-month period ended 30 September 2006 we sold Fountain Television
Ltd for #6.8m received in cash, which gave the Group the opportunity to
eliminate long term borrowings and reduce substantially overall indebtedness.
This provides a platform on which to build the remaining operational divisions.
To this end on 2 October 2006 UGD/Britannia was purchased (for deferred
consideration of #1.5m payable in March 2008). This acquisition provides a large
database, a Jersey fulfilment centre and considerable potential benefits of
scale to DDHE.
Both the operational divisions remaining within the Group at 30 September 2006
have seen turnover grow year on year - DDHE by 14.5% and Scarlet Television by
86%. Increased overheads and sales mix changes have increased the half year
losses in DDHE which is a reflection of the heavy seasonality of the business
and its growth to accommodate increased trading levels going forward.
Financial Highlights
In the six months ended 30 September 2006, turnover was #6.7m, up 22% from the
comparative period last year (2005: #5.5m), with growth coming from all
divisions. The first half sales mix in DDHE affected margins with more lower
margin third party product being sold. Operating expenses rose by 15% to #5.4m
(2005: #4.7m) due to higher infrastructure costs in the DVD publishing and
distribution business to service the increased turnover going forward. The pre
tax loss was higher than the prior year interim period at #3.3m (2005: loss
#1.9m), which includes #0.5million of discontinued operations and a #0.3m write
off as a result of the sale of Fountain Television. This equated to a loss per
share of 21.84p (2005: loss 12.90p).
During the period there was a net increase in cash of #2.6m (2005: #1.6m
decrease) of which we invested #0.8m (2005: #0.9m) in rights and the inception
costs of producing and authoring DVDs. TV production was partly funded by short
term loans of #0.7m (2005: #0.9m), and medium or long term debt was reduced by
#3.5m, (2005: #0.2m reduction) in the period.
There is no interim dividend.
Operating Review
Rights
DD Home Entertainment (DDHE) licenses, produces, publishes and distributes DVDs
direct to the customer via catalogues, the internet and press advertising, as
well as through the high street and specialist retailers. The library is
primarily in the areas of factual programming and classic film and television.
Historically the first half of the financial year is loss making as a result of
quieter trading conditions, and as the scale of the business increases, the
seasonal effect becomes more pronounced. However, the product offerings and
customer base have been strengthened during this period in preparation for the
second half which included the all - important Christmas gifting period.
The purchase of UGD will mean an integration process over the next six months
which is expected to provide benefits of scale to the DDHE operation going
forward.
Facilities
On 6 September 2006, the Company announced the sale of its television studio
facility, Fountain Television Ltd for #6.8m cash. The business was regarded as
non-core and it enabled the Group's long term debt to be wholly repaid with a
substantial reduction in the working capital indebtedness.
TV Production
Scarlet Television, the Company's television production division, which
specialises in entertainment-based factual programmes, has now been in existence
for two years. In the period to 30 September 2006, Scarlet delivered 4
programmes and is due to deliver a further 6 programmes before the end of the
financial year. These are for BBC, ITV and Discovery channels.
Current Trading & Outlook
We have continued to grow DDHE though investment in increased marketing,
database recruitment activity and continued product development which builds the
basis for the busier second half. Scarlet Television continues to secure
commissions from the major broadcasters.
Since the period end, trading has been good, with higher year on year sales
(excluding "The Ashes" DVD sales for 2005), which, combined with the acquisition
of UGD/Britannia means that we expect to be in line with market expectations for
the full year. The coming months will see the integration of the two businesses
which we expect to result in economies of scale and increased marketing
opportunities. We also continue to explore complementary acquisition
opportunities.
Staff
Finally I would like to thank all of our staff for their hard work and
enthusiasm.
Brook Land
Chairman
15 December 2006
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 30 September 2006
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2006 2005 2006
Unaudited Unaudited Audited
Note #'000 #'000 #'000
Turnover
-Continuing operations 5,371 4,578 21,278
-Discontinued operations 2 1,330 919 3,199
6,701 5,497 24,477
Cost of sales (4,124) (2,524) (12,007)
Gross profit 2,577 2,973 12,470
Net operating expenses (5,388) (4,659) (11,585)
Operating (loss) / profit
-Continuing operations (2,271) (1,211) 1,296
-Discontinued operations 2 (540) (475) (411)
Group operating (loss)/profit before Exceptional items (2,811) (1,686) 1,410
Exceptional items - - (525)
Group operating (loss)/profit (2,811) (1,686) 885
Gain on disposal of fixed assets - 9 6
Loss on disposal of investments (4) - -
Loss on disposal of subsidiary undertakings (258) - -
Interest receivable - - 4
Interest payable and similar charges (218) (243) (479)
(Loss) / profit on ordinary activities before taxation (3,291) (1,920) 416
Taxation on (loss) / profit on ordinary activities 3 - - (204)
(Loss) / profit on ordinary activities after taxation (3,291) (1,920)
212
Minority interest (6) (11) 25
Retained (loss) / profit for the financial period 5 (3,297) (1,931) 237
Basic and diluted (loss) / profit per share 4 (21.84)p (12.90)p 1.57p
There were no other gains or losses recognised in the period other than
disclosed above.
UNAUDITED CONSOLIDATED BALANCE SHEET
As at 30 September 2006
30 September 30 September 31 March
2006 2005 2006
Unaudited Unaudited Audited
Note #'000 #'000 #'000
Fixed assets
Tangible assets 351 7,206 7,191
Intangible assets 4,598 3,533 4,642
Investments - 101 101
4,949 10,840 11,934
Current assets
Stocks 1,901 1,067 1,742
Investment in programmes 147 469 217
Debtors - due within one year 5,466 6,636 6,554
Debtors - due after more than year 322 350 536
Cash at bank and in hand 1,415 1,983 794
9,251 10,505 9,843
Creditors: amounts falling due within
one year (6,467) (9,336) (7,658)
Net current assets 2,784 1,169 2,185
Total assets less current liabilities 7,733 12,009 14,119
Creditors: amounts falling due
after one year - (3,267) (3,095)
Net assets 7,733 8,742 11,024
Capital and reserves
Called up share capital 1,509 1,496 1,509
Share premium account 7,501 7,501 7,501
Merger reserve 137 - 137
Profit and loss account (1,382) (253) 1,915
Shareholders' funds 5 7,765 8,744 11,062
Minority interests (32) (2) (38)
Capital employed 7,733 8,742 11,024
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 September 2006
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2006 2005 2006
Unaudited Unaudited Audited
Notes
#'000 #'000 #'000
Net cash (outflow)/inflow from operating activities 6 (368) (948) 1,066
Returns on investments and servicing of finance
Interest paid (225) (217) (462)
Interest received - - 4
Net cash outflow from returns on investments
and servicing of finance (225) (217) (458)
Taxation (35) - (50)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (101) (200) (414)
Payments to acquire intangible fixed assets (764) (935) (2,177)
Sale of tangible fixed assets - - 19
Net cash outflow from capital expenditure
and financial investment (865) (1,135) (2,572)
Acquisitions and disposals
Net Receipt on acquisition of subsidiary undertakings - 33 (150)
Proceeds from disposal of subsidiary undertakings 6,800 - -
Disposal of subsidiary expenses (108) - -
Net overdrafts disposed of with subsidiaries 127 - -
Proceeds from disposal of investments 97 22 22
Net cash inflow/(outflow) from acquisition and
disposals 6,916 55 (128)
Net cash inflow/(outflow) before financing 5,423 (2,245) (2,142)
Financing
Bank loans received 666 1,396 1,397
Bank loans repaid (3,485) (670) (1,112)
Capital element of hire purchase and finance
lease rental payments (35) (61) (109)
Net cash (outflow)/inflow from financing (2,854) 665 176
Increase/(decrease) in cash in the period 7,8 2,569 (1,580) (1,996)
NOTES TO THE INTERIM REPORT
Six months ended 30 September 2006
1 Accounting policies
Basis of preparation
The interim information for the six months ended 30 September 2006 and 30
September 2005 is neither reviewed nor audited and does not comprise statutory
accounts. The comparative figures for the year ended 31 March 2006 are not
statutory accounts but are extracted from the audited statutory accounts. The
statutory accounts for the year ended 31 March 2006 have been filed with the
Registrar of Companies. They received an unqualified audit report, which did
not contain a statement under Section 237(2) or 237(3) of the Companies Act
1985. The interim report should be read in conjunction with the statutory
accounts for the year ended 31 March 2006. The interim figures have been
prepared on the same basis and applying the same accounting policies as in the
audited figures for the year ended 31 March 2006.
2 Discontinued activities
On 6 September the group disposed 100% of its wholly owned subsidiary Fountain
Television Limited for the aggregate cash consideration of #6,800,000 to
InvestinMedia Plc. The results of this entity to the date of disposal have been
included within these financial statements.
3 Taxation
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2006 2005 2006
Unaudited Unaudited Audited
#'000 #'000 #'000
- -
UK corporation tax 136
Deferred tax - - 68
- -
Taxation on (loss)/profit for the financial period 204
4 Earnings per share
The basic and diluted loss per share is based on the Group loss of #3,297,000
(30 September 2005: loss of #1,931,000) and the weighted average number of
ordinary shares in issue during the six months ended 30 September 2006 of
15,097,367 (30 September 2005: 14,964,034).
5 Reconciliation of movements in Shareholders' funds
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2006 2005 2006
Unaudited Unaudited Audited
#'000 #'000 #'000
Retained (loss) / profit for the financial period / year (3,297) (1,931) 237
Shares issued in the year - - 150
- (1,931) 387
Opening Equity Shareholders' funds 11,062 10,675 10,675
Closing Equity Shareholders' funds 7,765 8,744 11,062
6 Reconciliation of operating (loss) / profit to cash (outflow)/inflow from
operating activities
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2006 2005 2006
Unaudited Unaudited Audited
#'000 #'000 #'000
Operating (loss) / profit (2,811) (1,686) 885
Amortisation of goodwill and film rights 532 302 695
Depreciation of tangible fixed assets 167 160 367
(Decrease)/increase in stocks (223) 69 (606)
Decrease/(increase) in Investment in programmes 70 (79) 173
Decrease in trade and other debtors, and prepayments 895 1,181 926
Increase/(decrease) in creditors 1,002 (895) (1,374)
Net cash (outflow)/inflow from operating activities (368) (948) 1,066
7 Reconciliation of net cash flow to movement in net debt
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2006 2005 2006
Unaudited Unaudited Audited
#'000 #'000 #'000
Increase/(decrease) in cash for period 2,569 (1,580) (1,966)
Cash inflow/(outflow) from increase in debt and lease
financing 2,854 (670) (186)
Other non-cash changes 99 - -
Change in net debt resulting from cash flows 5,522 (2,250) (2,152)
Net debt brought forward (7,767) (5,615) (5,615)
Net debt carried forward (2,245) (7,865) (7,767)
8 Analysis of net debt
At 30 September
At 1 April 2006 Other non-cash 2006
Audited Cash Flows changes Unaudited
#'000 #'000 #'000 #'000
Cash 794 621 - 1,415
Overdrafts (4,900) 1,948 - (2,952)
Cash (4,106) 2,569 - (1,537)
Debt due within one year (525) (177) - (702)
Debt due after more than one year (3,095) 2,996 99 -
Finance leases (41) 35 - (6)
Financing (3,661) 2,854 99 (708)
Total (7,767) 5,423 99 (2,245)
9. Post Balance sheet events
On 2 October 2006 the group purchased 100% of the activities of UGD Group
Limited, for deferred consideration of #1.5m payable in cash or new shares in
the capital of Medal Entertainment & Media plc at the election of the vendor.
The business incorporates the activities of Britannia Music and Video, a mail
order business involved in the direct sales of DVD and video products to the
public.
10. Copies of the interim report
This interim report will be sent to shareholders in due course, and copies will
be available from the Company Secretary at the Company's registered office at
Lacon House, 84 Theobald's Road, London, WC1X 8RW.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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