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[inkitin] 10/12/2005 22:21

I'm still confused!!

From Box TV website:

"Founded in 2000 by award-winning producer Gub Neal, formerly Head of Drama at Channel 4 and Granada Television, Box produces film and television of the highest quality and vision for markets throughout the world. In its first five years, Box's core team of Gub, Justin Thomson-Glover and Patrick Irwin have overseen more than £35m of production."

How does "overseen more than £35m of production" since 2000, ie five years, match up with £55M of turnover in Y/E 2003?

[russ505] 10/12/2005 18:06

institutions still appear to be happy, mopping up all the sells. dont forget md barnard topped up recently, gartmore still holding. relax and watch the storey unfold.

[tonyx] 10/12/2005 10:25

NAV_Mike - 10 Dec'05 - 09:42 - 6644 of 6644

Gary

Yep - us old timers have sold up and moved on but we still look out for DTC as if it were a naughty adolescent that one day may grow up :-)

Lol!

[michaelmouse] 10/12/2005 09:39

PHANTOM4 - "I am not really bothered about individuals' sentiments".
Sums it up for me when I think about it. So on that note.......

[jmillskeel] 10/12/2005 09:14

'Luck' i think that does not just go for DTC any AXX share

[phantomf4] 10/12/2005 09:00

ursa

me too - good luck with your holding - I wonder what the next steps will be?

f4

[ursamajorra] 10/12/2005 08:57

Digital Classics plc is pleased to announce that it has today signed agreements
to acquire two profitable companies as the first steps of a strategy to
transform the Group into a television production and distribution powerhouse.



"the first steps of a strategy to transform the Group into a television production and distribution powerhouse."


Thats the bit i like.

[phantomf4] 10/12/2005 08:50

Gary

I agree. But in terms of sentiment, whatever individuals might think, the 'market' reacted very positively to the news. I am not really bothered about individuals' sentiments, it is when they react collectively is what matters. Overall, I don't expect to see the share price drop to around the 0.7 mark next week - but I could be wrong! These acquisitions are exactly in line with what DE said earlier this year when he explained his strategy to transform the market cap of the company. The company is looking less and less like a struggling 'AIM tiddler'. Still holding, obviously.

F4

[michaelmouse] 10/12/2005 08:28

Gary - Excellent posts. My sentiments entirely.
Inkitin - Thanks for the links again.
Just one thought about Box tv and their revenues. Box produce drama series rather than one off shows. It is probable that last year was spent producing their latest shows and sales will follow this year. Hence the previous year's figures are highly relevant and this year could provide a bumper year. This is a guess but would explain the significant fall in turnover from one year to the next.

[garysmith7] 10/12/2005 00:22

BBC piece on the Ofcom code of practice mentioned in the RNS




Another which goes into more depth

[garysmith7] 10/12/2005 00:10

At the moment there is no way of knowing just how good (or bad) these deals will turn out to be and if the price paid was good for DTC. On the surface it looks like the economies of scale and the combined divisions will make the whole greater than the sum of the parts. But as usual it's a waiting game to see if DTC can exploit their new position effectively and my position is one of cautious optimism.

Sentiment towards DTC is still pretty mixed and they have lost the large following they enjoyed here a year or two ago, with many of the long termers reducing or selling out. Hence the lack of posts on quite significant news. Retail investors still have the power to dramatically move the price either way, but the lack of enthusiasm means the price is drifting on low volumes until we get news which translates into profit and a return on our investment.

What I would say is they have come a long way from where they were two years ago (when CH loaned them £500K) and are much stronger and better placed than they have ever been. The commercial landscape is changing as demand for content is increasing as technical advances accelerate and new markets open up. DTC have recognised they need more than just the traditional platform of classical and performing arts to grow and seem to have addressed this with these acquisitions and there own diversions into Poker.

Both NDB and BOX TV have impressive credentials and strong content which if handled correctly have the potential to put a smile on all shareholders faces. I still think the wait will be worthwhile.

[inkitin] 09/12/2005 22:56

and NBD TV

[investorjon] 09/12/2005 22:56

Shades of Black looks decidedly dangerous and should keep the lawyers busy.

[inkitin] 09/12/2005 22:49

BritishBear

I'm wondering the same as well. Check their website, particularly "Productions in development".

[britishbear] 09/12/2005 22:46

Sorry if I have missed something but is this an error? Turnover 2 years ago was £55 MILLION, now it is only £1.5m and makes a large loss. Why tell us the old figures - they are meaningless

This must be a typo mistake otherwise why on earth are we paying so much...confused

-------------------------
In the 17 months ended 31 March 2005, Box TV made a loss before tax of £829,195
on turnover of £1,566,878. In the year ended 31 October 2003, Box TV made a
profit before tax of £1,420,916 on turnover of £55,057,082. The value of the
assets being acquired is £115,153.
--------------------------------------

[investorjon] 09/12/2005 22:13

Michael: A very big if though regarding comments on £1-2m earnings. Currently DTC are showing what £600,000 loss, Box TV shows loss of £829,000, so there's £1,429,000 of losses?So when the RNS spoke about profitable, it can't really apply to Box TV as its losses are larger than DTC's and where its asset value is covered over 50 times by the value of the bid, making the highest price for goodwill I can recall.

Tied key players....didn't seem to include CH though, so does it really tie them in, or can they come up with a good idea and start a private company. The best tie in is a profitable company, something we have yet to see from DTC with all the hope and best will in the world.

As for topping up though, the pricedoesn't really do that much and the movements in share price often seem cosmetic when it comes to trading DTC with only MMs marking prices especially with wide spreads, except of course from the drop seen in the last 2 years.

Good luck though, I sold a few, as I could not do the share swap scheme so moved the money instead, but do hope it all comes good for everyone.

[michaelmouse] 09/12/2005 19:33

The deal is certainly exciting.
DTC can now offer broadcasters the arts, reality t.v., general entertainment programmes and drama. Expansion of its distribution division is logical and their recent move to set-up their own DVD label makes perfect sense.
I like the fact that they have tied in the key players in both organisations for three years and ensured that they cannot sell their shares for at least two years. Once bitten twice shy (remember Didier Stoessel?).
Enlarged company has a market cap. around £10m. Earnings between £1m-£2m will make the company look cheap at 0.00875p. I am holding tight having topped up below the current share price
Consolidation within this sector continues apace and DTC needed to make a move or they would have been acquired.
Future:-
Interestingly Channel 4 have recently made noises about establishing their own in-house production division. Perhaps they will acquire one. Which indies currently provide a range of content, anybody know of one?

[investorjon] 09/12/2005 19:00

Whatever we feel about it, it sent DTC up...so I'll defer to the market.

[garysmith7] 09/12/2005 18:30

the deal is great

quietly accumulating Toms shares

[investorjon] 09/12/2005 17:32

Weird that Box TV claims to be profitable when they made a loss of £829,195 on turnover of £1,566,878.
In 2003 they made a profit of £1,420,916. Turnover was £55,057,082. Asset value acquired is only £115,153 yet purchase price is £6.12 million in cash/paper. Goodwill paid amounts to £6 million+, over 50 times the paper value of the company.

Thanks for figures from A.N.Onymous, so worth checking out yourselves.

[chinakett] 09/12/2005 15:41

Here we go again. Disguised rollovers. Where has there been any 1M buys over previous weeks that could now be rolled over? I don't re-call any such trades recently.

More to come, my guess. Same old tricks from the MM's.

China.