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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Metrodome Grp. | LSE:MRM | London | Ordinary Share | GB0002937141 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.25 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMMRM
RNS Number : 3145G
Metrodome Group PLC
11 May 2011
11 May 2011
Metrodome Group Plc
("Metrodome" or the "Company")
Unaudited Preliminary Results for the year to 31 December 2010
Metrodome is pleased to announce its preliminary results for the year ended 31 December 2010.
Financial highlights
-- Revenue up 53% to GBP13.90 million (2009: GBP9.10 million)
-- Headline* operating profit up 205% to GBP747,000 (2009: GBP245,000)
-- GBP1.96 million cash raised through the issue of convertible loan notes
*Headline operating profit / (loss) consists of revenues and other operating income after deducting operating costs incurred in the normal course of business excluding amortisation of acquired intangibles and non-recurring items.
Operational highlights
-- Acquisition of Target Entertainment Ltd and its subsidiaries ("Target") for GBP800,000
-- Increased Coutts overdraft facility by GBP1.40 million
-- Oscar win for The Secret in Their Eyes in the Best Foreign Language Film category in March 2010
Strategic highlights
-- Addition of 4,000 hours of television programming to Group's library of content
-- Released 3 of the top 10 foreign language films in UK
-- Significant growth in Video on Demand ("VOD")
-- Signed non-exclusive deal with Apple's iTunes.
Mark Webster, Executive Chairman of Metrodome, commented:
"I am pleased to announce a strong set of results which demonstrate Metrodome's development as a fully integrated rights management and distribution business. I am pleased we have met our strategic and performance objectives for 2010 and feel confident we have a strong platform for growth in 2011. We were very pleased to complete the acquisition of Target during the year which has given us a global presence in TV distribution. We are actively seeking further suitable acquisition opportunities in the sector."
For further information please visit www.metrodomegroup.com, or contact:
Metrodome Group plc Mark Webster / Deborah Brown Tel: 020 7535 7300 Charles Stanley Securities Dugald J. Carlean / Karri Vuori Tel: 020 7953 6000 Tavistock Communications John West / Lydia Eades Tel: 020 7920 3150
Chairman's Statement
The first half of 2010 was a period of significant change for Metrodome in terms of staffing and strategic direction. We announced a reduction in our theatrical distribution business with a move towards a more commercially focused slate of theatrical releases scaled in accordance with market conditions. We carefully select titles for theatrical release, taking into consideration key criteria such as genre and cast, in order to raise the profile of a film in a cost effective way, prior to the DVD and VOD release. Our remarkable success at the Box Office in 2010 has proved this to be an appropriate strategy.
The second half of 2010 saw Metrodome take the next step in its diversification into related activities. The acquisition of Target Entertainment Ltd and its subsidiaries ("Target") added 4,000 hours of television programming to the Group's expanding library of content. We are now a fully integrated all rights distribution business dedicated to maximising revenues for producers of film and TV content.
These changes resulted in a number of redundancies during the year which will generate significant cost savings going forward.
Our stated objectives are to maintain profitability and expand the Group. We have achieved our objectives for 2010 through a headline* operating profit of GBP747,000 and the acquisition of Target. We will continue on this path and focus on our core business of film and TV distribution, as well as investing in related activities such as co-production deals and further seeking diversification in related markets via mergers and acquisitions.
*Headline operating profit / (loss) consists of revenues and other operating income after deducting operating costs incurred in the normal course of business excluding amortisation of acquired intangibles and non-recurring items.
Acquisition of Target Entertainment Ltd
On 13 August 2010, Metrodome acquired the entire share capital of Target Entertainment Ltd. Founded in 1998, Target is a TV distribution rights management business. It has a broad international network and a substantial catalogue of rights across a wide range of genres, including drama, documentary, comedy and kids' entertainment.
Metrodome acquired Target Entertainment Ltd for GBP800,000, which comprised GBP400,000 of available cash resources held by the Company with the remaining GBP400,000 being provided by the issue of 4% loan notes. A further GBP1,560,000 of loan notes were issued to provide working capital for the enlarged Group. GBP1,100,000 of these loan notes have been subscribed for by Mark Webster, Executive Chairman of the Company.
We are delighted to have taken this first step in our acquisition strategy designed to both strengthen our current operations and broaden our range of activities.
The fair value of the assets and liabilities acquired is shown in note 2 of the accounts, which generated goodwill on acquisition of GBP3,413,000, following the translation of Target's results, assets and liabilities to comply with Group accounting policies and IFRS. The goodwill is attributable to operational synergies and future earnings potential based on strong relationships with producers and TV broadcasters globally.
We consider Target's TV distribution business to be a separate operating segment to the existing film distribution business and the board monitors the performance of the two businesses separately as well as a whole. The results by segment are provided in note 3.
Operating performance
Metrodome released 5 theatrical titles to cinemas in 2010 plus 15 one-print releases to launch the DVD. The highlights in the first half included I Am Love, starring Tilda Swinton, which was nominated for a BAFTA in the 'Film Not In The English Language' category, outperforming all expectations at the box office, and Lebanon which won the Venice Film Festival's Golden Lion in 2009. Key releases in the second half of the year were Leaving, starring Kristen Scott Thomas who won Best Actress in the London Evening Standard British Film Awards for her performance, and The Secret in their Eyes which won an Oscar in 2010 for the best foreign language film.
Our theatrical releases, in aggregate, grossed over GBP2.1 million (2009: GBP1.4 million) at the Box Office which we consider to be an excellent result. Metrodome released three of the top 10 foreign language films in UK cinemas in 2010 (source: Rentrak). The important lessons learned in previous years regarding the size of release were applied to the theatrical release strategies in 2010 with profitable results.
The acquisition of Target has considerably reduced our reliance on DVD. TV revenues contributed 35.1% of total revenues in 2010 as Target sales were included from the date of acquisition; 91% of total TV Sales in 2010 were due to Target.
We continue to see significant growth in Video on Demand ("VOD"). Our strategy remains unchanged as we sign non-exclusive deals with all the major players including Apple's iTunes.
As predicted in recent years, we have seen our rental revenues fall considerably in 2010.
After several years of significant growth in DVD we have experienced a slight fall of 2.5% in DVD revenues this year. Given the fierce competition in acquiring suitable product at an affordable price and the difficulty selling into the retailers we are pleased with the overall result generated by the steady performance of several titles rather than a breakout result from one or two. It was our reliance on such a competitive revenue stream which guided us towards our overall diversification strategy. We aim to release fewer direct-to-DVD titles in 2011 and focus on improving margins.
The Group released 53 titles during the year, including:
-- Lebanon
-- Attack on Leningrad
-- The Bridge
-- Dragon Quest
-- Everyman's War
A full breakdown of the Group's total revenue is as follows:
Hot Features
Premium
Year ended % of Year ended % of Growth
31 Dec 10 Revenue 31 Dec 09 Revenue Year on Year
Revenue GBP'000 % GBP'000 % %
Cinema Sales 742 5.3% 395 4.3% 87.8%
Television Sales 4,871 35.1% 517 5.7% 842.2%
Video on Demand 1,089 7.9% 695 7.6% 56.7%
Other ancillary
income 72 0.5% 68 0.8% 5.9%
DVD Rental 296 2.1% 790 8.7% -62.5%
DVD Sell Through 6,460 46.6% 6,626 72.9% -2.5%
Consumer Products 346 2.5% - 0% 100%
---------- -------- ---------- -------- -------------
13,876 100.0% 9,091 100.0% 52.6%
========== ======== ========== ======== =============
Total revenues of GBP13,876,000 were 52.6% higher than the same period last year (2009: GBP9,091,000) which is an excellent result in the current marketplace.
The film distribution segment achieved annual revenues of GBP8,798,000 (2009: GBP9,091,000), a drop of 3.2% year on year. In contrast to prior years, there was no single title in 2010 to contribute more than 10% of total revenue. Considering we had steady performing titles across the catalogue the total revenue was quite an achievement in the current economic climate.
Cost base
The Group is constantly reviewing its operating structure and cost base in an attempt to improve operational effectiveness and achieve efficiencies. We are regularly reviewing key contracts with suppliers, with a view to maintaining high standards and further cost reductions.
We moved out of our office in Leicester Square in March 2011 into Target's existing office in Edgware Road which has spare capacity for additional staff as we expand. As such, we will achieve significant cost savings by combining offices and reducing overheads.
The redundancies in 2010 will result in reduced annual employment costs in future.
The Group amortised GBP432,000 of the fair value of the TV library on acquisition based on the revenues of the TV distribution segment from acquisition to 31 December 2010.
Non recurring items
During 2010 Metrodome incurred GBP449,000 of legal and professional fees in respect of a potential acquisition which was aborted in early 2010 (2009: GBP45,000), the successful acquisition of Target Entertainment Ltd, employment law advice and the issue of loan notes.
The Group incurred GBP368,000 of redundancy payments and termination costs in respect of the staff re-organisation in the film distribution segment and GBP129,000 in the TV distribution (Target) segment of the business.
Funding
In addition to the GBP1,960,000 raised from existing shareholders by the issue of loan notes, the Company raised $900,000 via an unsecured loan from Metrodome BV, a Dutch holding and investment company, which is owned by Adrian Sarbu who owns approximately 90% of Alerria Management SA ("Alerria"), Metrodome's major shareholder. Alerria currently has a holding in Metrodome of 52.8%.
The Company also increased its Coutts Bank overdraft facility by GBP1,000,000 to GBP1,400,000 in December 2010 to provide additional working capital to the Group in 2011.
Board changes
Deborah Brown was appointed as Finance Director and Company Secretary on 1(st) September 2010, replacing Steve Winetroube who remains with the Company as a Non-Executive Director.
Outlook
Metrodome is now a fully integrated rights management and distribution business which provides its industry expertise to maximise revenues for producers of film and TV content across all distribution platforms in the UK. As a business we excel in creating bespoke, cost effective release strategies to maximise returns for all stakeholders. We pride ourselves on our unrivalled market knowledge and ability to adapt to our clients' needs in a fast changing media landscape. We also pride ourselves on our ability to provide the very best in marketing, press and sales, delivering exceptional release campaigns for quality movies that capture the imagination of audiences.
Metrodome's strategic objective is to diversify into related activities and expand globally. Half of our business is DVD which is arguably in decline. The future of the DVD industry depends on the success of Blu-Ray and 3D as well as the emergence of VOD which is currently restricted by broadband capability in the UK. The potential risk of losing HMV as a key retailer is also an important factor.
The success of our expansion into co-production will be established in the first half of 2011 when we release Age of the Dragons and Age of Heroes, our first two co-production deals. These releases will determine how this strategy is pursued in future. Early indications are very positive and we see co-production as an ideal way of securing product for the home entertainment market.
I am pleased we met our strategic and performance objectives for 2010 and feel confident we have a strong platform for growth in 2011. The acquisition of Target Entertainment Ltd was the first acquisition in line with our corporate strategy. We are actively seeking other suitable opportunities, concentrating on film and TV distribution. Now we have a global presence with Target for TV distribution we are also looking at international opportunities for film distribution.
I would personally like to thank our talented staff for their ongoing support and contribution to this year's success. I am confident we can build value for our supportive shareholders in 2011 and beyond.
Mark Webster
Chairman
11 May 2011
Unaudited Consolidated Statement of Comprehensive Income
For the year ended 31 December 2010
Year ended Year ended
31-Dec-2010 31-Dec-2009
Notes (Unaudited) (Audited)
GBP'000 GBP'000
Revenue 13,876 9,091
Amortisation of acquired intangibles (432) -
Other cost of sales (9,850) (6,434)
----------- -----------
Cost of sales (10,282) (6,434)
----------- -----------
Headline gross profit 4 4,026 2,657
Amortisation of acquired intangibles (432) -
--------------------------------------- ----- ----------- -----------
Gross profit 3,594 2,657
Operating expenses (3,279) (2,412)
Headline operating profit 5 747 245
Amortisation of acquired intangibles (432) -
--------------------------------------- ----- ----------- -----------
Non recurring items 8 (946) (45)
(Loss) / profit on ordinary activities
before investment income, finance
costs and income tax expense (631) 200
Investment income 1 2
Finance costs (36) (3)
(Loss) / profit before income tax
expense (666) 199
Income tax expense 9 (14) -
--------------------------------------- ----- ----------- -----------
(Loss) / profit for the year (680) 199
--------------------------------------- ----- ----------- -----------
Total comprehensive income for the
year (680) 199
--------------------------------------- ----- ----------- -----------
Attributable to
Equity holders of parent (672) 199
Non-controlling interest (8) -
--------------------------------------- ----- ----------- -----------
(680) 199
--------------------------------------- ----- ----------- -----------
(Loss) / profit per share
Basic 6 (0.4)p 0.1p
Diluted 6 (0.4)p 0.1p
Unaudited Consolidated Statement of Financial Position
As at 31 December 2010
31-Dec-2010 31-Dec-2009
Notes (Unaudited) (Audited)
GBP'000 GBP'000
Non current assets
Property, plant and equipment 145 162
Intangible assets 20 11
Goodwill on acquisition 2 3,413 -
Film and TV distribution library 10 6,562 2,771
Trade and other receivables 669 73
---------------------------------- ----- ----------- -----------
10,809 3,017
---------------------------------- ----- ----------- -----------
Current assets
Inventories 53 90
Trade and other receivables 7,481 1,554
Cash and cash equivalents 764 1,578
8,298 3,222
---------------------------------- ----- ----------- -----------
Total assets 19,107 6,239
---------------------------------- ----- ----------- -----------
Current liabilities
Trade and other payables (13,883) (3,526)
Other borrowings 11 (183) -
---------------------------------- ----- ----------- -----------
(14,066) (3,526)
---------------------------------- ----- ----------- -----------
Non current liabilities
Trade and other payables (388) -
Other borrowings 11 (2,412) -
---------------------------------- ----- ----------- -----------
(2,800) -
---------------------------------- ----- ----------- -----------
Total liabilities (16,866) (3,526)
---------------------------------- ----- ----------- -----------
Net assets 2,241 2,713
---------------------------------- ----- ----------- -----------
Equity
Share capital 1,847 1,847
Share premium account 2,890 2,890
Share option reserve 47 181
Equity reserve 270 -
Translation reserve (1) -
Accumulated losses (2,723) (2,205)
---------------------------------- ----- ----------- -----------
Capital and reserves attributable
to owners of the company 2,330 2,713
Non-controlling interest (89) -
Total equity 2,241 2,713
---------------------------------- ----- ----------- -----------
Unaudited Consolidated Statement of Changes in Equity
For the year ended 31 December 2010
Share Share Non-
Share premium option Equity Translation Accumulated controlling Total
capital account reserve reserve Reserve Losses Interest Equity
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January 2009 1,207 2,581 128 - - (2,404) - 1,512
Profit for the
year - - - - - 199 - 199
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total
comprehensive
income and
expense for the
year - - - - - 199 - 199
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Transactions
with owners Net
proceeds from
ordinary shares
issued 640 309 - - - - - 949
Share based
payment charge
for the year - - 53 - - - - 53
Transactions with
owners 640 309 53 - - - - 1,002
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Balance at 31
December 2009 1,847 2,890 181 - - (2,205) - 2,713
Loss for the
year - - - - - (672) (8) (680)
Equity component
of convertible
loan notes - - - 270 - - - 270
Exchange
differences
arising on
translation of
overseas
operations - - - - (1) - - (1)
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total
comprehensive
income and
expense for the
year - - - 270 (1) (672) (8) (411)
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Transactions
with owners
Share options
forfeited
during the
year - - (154) - - 154 -
Non-controlling
interest on
acquisition of
subsidiaries - - - - - - (81) (81)
Share based
payment charge
for the year - - 20 - - - - 20
Transactions with
owners - - (134) - - 154 (81) (61)
------------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Balance at 31
December 2010 1,847 2,890 47 270 (1) (2,723) (89) 2,241
================== ============ ============ ============ ============ ============ ============ ============ ============
Unaudited Consolidated Statement of Cash Flows
For the Year ended 31 December 2010
Year ended Year ended
31-Dec-2010 31-Dec-2009
Notes (Unaudited) (Audited)
GBP'000 GBP'000
Net cash from operating activities 12 1,983 5,111
Net cash used in investing activities 13 (5,764) (4,656)
Net cash from financing activities 14 2,967 32
Net (decrease) / increase in cash and
cash equivalents (814) 487
Cash and cash equivalents at beginning
of year 1,578 1,091
Cash and cash equivalents at end of year 764 1,578
----------------------------------------- ----- ----------- -----------
Notes to the Preliminary announcement
For the year ended 31 December 2010
1. Preparation of the accounts
The unaudited preliminary announcement has been prepared under the historical cost convention on a going concern basis and in accordance with applicable International Financial Reporting Standards and IFRIC interpretations ("IFRS") as adopted by the EU.
The board carries out an assessment of whether the Group is a going concern when preparing its annual and half-yearly financial statements. This assessment takes into account the size, level of financial risk and complexity of the Group and its operations. The review covers a period of at least twelve months from the date of approval of the financial statements.
The assessment is twofold: firstly to assess the minimum requirements to continue as a going concern and secondly, to identify the funding requirements for new acquisitions and make plans to raise additional finance where necessary, for example from major shareholders.
As a consequence of the Group's financial resources at the year end and having considered the trading and cash flow forecasts for the next twelve months, the directors believe that the Company and the Group have adequate resources to continue to adopt the going concern basis in preparing the annual report and accounts.
The preliminary announcement has been prepared on the basis of the same accounting policies as published in the audited financial statements of the Group for the year ended 31 December 2009.
The financial information in this preliminary announcement does not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2010 have not yet been delivered to the Registrar of Companies and no audit report has yet been given on the statutory financial statements. Statutory accounts for the year ended 31 December 2009 have been delivered to the Registrar of Companies. The audit report on these statutory accounts was unqualified and did not contain a statement either under section 498(2) or 498(3) of the Companies Act 2006.
The preliminary announcement is presented in pounds sterling since that is the currency in which the majority of the Group's transactions are denominated.
2. Acquisition
Business combinations are accounted for under the acquisition method. There were no business combinations in 2009.
On 13 August 2010, Metrodome acquired the entire share capital of Target Entertainment Ltd. Founded in 1998, Target is a TV distribution rights management business. It has a broad international network and a substantial catalogue of rights across a wide range of genres, including drama, documentary, comedy and kids' entertainment.
Metrodome acquired Target Entertainment Ltd for GBP800,000, which comprised GBP400,000 provided from by the Company's resources with the remaining GBP400,000 being provided by the issue of 4% loan notes, convertible by the holder at 2 pence which equates to a premium of 45% to the mid-market price on 13 August 2010. A further GBP1,560,000 of loan notes have been issued on identical terms to provide working capital for the enlarged Group. GBP1,100,000 of these loan notes have been subscribed by Mark Webster, Executive Chairman of the Company.
If the acquisition had occurred on 1 January 2010, the estimated revenue for the Group for the year would have been GBP20,812,000 and loss before income tax expense GBP808,000.
The acquired net assets of Target Entertainment are set out below:
Fair Value
Book Value Fair value to Metrodome
Before Acquisition adjustments Group plc
(Unaudited) (Unaudited) (Unaudited)
GBP'000 GBP'000 GBP'000
Property, plant and
equipment 18 - 18
Intangible assets 23 - 23
TV distribution library 379 3,250 3,629
Trade and other
receivables 4,108 - 4,108
Cash and cash
equivalents 138 - 138
Trade and other payables (10,610) - (10,610)
Net assets and
liabilities (5,944) 3,250 (2,694)
------------------------- -------------------- ------------- --------------
Non-controlling interest 81
Purchase consideration (800)
--------------
Goodwill on acquisition 3,413
--------------
In the period from acquisition to 31 December 2010, Target Entertainment Ltd and its subsidiaries contributed GBP343,000 to the consolidated headline operating profit of the Group.
The goodwill is attributed to the profitability of the acquired business through its relationships with TV producers.
3. Business segments
IFRS 8 requires financial information to be reported on the same basis as is used internally for evaluating operating segment performance and deciding how to allocate resources to operating segments.
An operating segment is a component of an entity:
a) that engages in business activities from which it may earn revenues and incur expenses,
b) whose operating results are regularly reviewed by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and
c) for which discrete financial information is available.
In the opinion of the directors, the chief decision maker is the Board of Metrodome Group plc and there were two segments in 2010 whose reports were reviewed by the Board in order to allocate resources and assess performance.
The first operating segment is based on its existing business activity of film distribution. The second segment, TV distribution, reflects Target Entertainment Limited (and its subsidiaries), a 100% owned subsidiary acquired on 13th August 2010 and whose results have been included in the consolidated financial statements. In 2009 there was only one operating segment.
Year ended
Year ended 31 December
31 December 2010 2009
Film TV
Distribution Distribution Total
(Unaudited) (Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000 GBP'000
Segment
revenue 8,798 5,078 13,876 9,091
Headline
operating
profit 486 343 829 329
Amortisation
of acquired
intangibles - (432) (432) -
Non recurring
items (368) (129) (497) -
--------------- --------------- ------------ -------------
Segment (loss)
/ profit 118 (218) (100) 329
Corporate
costs (531) (129)
Investment
income 1 2
Finance costs (36) (3)
------------ -------------
(Loss) /
profit before
income tax
expense (666) 199
------------ -------------
Segment assets 12,065 7,042 19,107 6,239
-------- --------- --------- --------
Segment liabilities (6,615) (10,251) (16,866) (3,526)
-------- --------- --------- --------
Depreciation 33 7 40 23
------ ---- ------ ------
Amortisation 3,678 562 4,240 3,780
------ ---- ------ ------
Additions to non current
assets* 8,360 155 8,515 5,269
------ ---- ------ ------
* Additions to non current assets include property, plant and equipment, intangible assets, goodwill, film and TV library.
4. Headline gross profit
Headline gross profit consists of revenue less cost of sales incurred within the normal course of business excluding amortisation of acquired intangibles and non-recurring items.
5. Headline operating profit
Headline operating profit consists of revenues and other operating income after deducting operating costs incurred within the normal course of business excluding amortisation of acquired intangibles and non-recurring items.
6. (Loss) / profit per share
The (loss) / profit per share is based on the consolidated loss of GBP680,000 (2009: GBP199,000 profit) after taxation and the weighted average number of shares in the year of 174,051,248 (31 December 2009: 174,051,248).
Basic and diluted earnings per share are the same because at the year end the exercise price was greater than the share price.
7. Dividends
As in prior periods, the directors are not recommending payment of a dividend.
8. Non recurring items
The Group has separately identified costs and revenue of a non-recurring nature which are considered to be outside the normal course of business due to their one-off nature or size.
31-Dec-2010 31-Dec-2009
(Unaudited) (Audited)
GBP'000 GBP'000
Legal & professional fees (449) (45)
Staff re-organisation (497) -
(946) (45)
--------------------------- ------------ ------------
Legal & professional fees
During 2010 Metrodome incurred GBP449,000 of legal and professional fees in respect of a potential acquisition which was aborted in early 2010 (2009: GBP45,000), the successful acquisition of Target Entertainment Ltd, employment law advice and the issue of loan notes.
Staff reorganisation
The Group incurred GBP368,000 of redundancy payments and termination costs in respect of the staff re-organisation in the film distribution segment and GBP129,000 in the Target segment of the business.
9. Income tax expense
2010 2009
(Unaudited) (Audited)
GBP'000 GBP'000
Current tax (14) -
Deferred tax - -
(14) -
------------- ------------- -----------
Corporation tax is calculated at 27% (31 December 2009: 28%) of the estimated assessable profit for the year.
10. Film and TV distribution library
Expenditure on the Group's film and TV distribution library is carried forward and recognised as an asset when it is estimated that sufficient future income will be earned to cover recoupment of the costs. These costs are written off in line with actual revenue flows calculated in accordance with licensor agreements.
The estimate of future income depends on management judgement and assumptions based on the pattern of historical revenue streams and the remaining life of each film or TV contract.
11. Other borrowings
31-Dec-2010 31-Dec-2009
(Unaudited) (Audited)
GBP'000 GBP'000
The other borrowings are repayable 183 -
as follows:
Within one year
In the second year 2,412 -
2,595 -
----------------------------------- ------------ ------------
Convertible loan notes 1,690 -
Loan from a related party 499 -
Other borrowing 406 -
2,595 -
-------------------------- ------
The convertible loan notes are unsecured, carry an interest rate of 4% and have a maturity date of 31(st) August 2012.
The loan from a related party is in US dollars, carries an interest rate of 4% and is repayable on 31(st) August 2012.
The other borrowing is unsecured, interest-free and repayable over three years by equal monthly instalments.
Fair values have been calculated by discounting cash flows at prevailing interest rates.
12. Reconciliation of profit before income tax expense to net cash from operating activities
Year ended Year ended
31-Dec-2010 31-Dec-2009
(Unaudited) (Audited)
GBP'000 GBP'000
(Loss) / profit before income
tax expense (666) 199
Adjustments for:
Investment income (1) (2)
Finance costs 36 3
Depreciation of property, plant
& equipment 40 23
Amortisation of intangible assets 20 3
Exchange differences arising
on translation of overseas operations (1) -
Amortisation of film & TV distribution
library 4,220 3,777
Impairment of film & TV distribution
library 708 667
Share based payment expense 20 53
(Gain)/loss on disposal of property,
plant & equipment 1 6
(Increase) / decrease in inventories 38 (37)
(Increase) / decrease in receivables (2,416) 438
Decrease in payables (16) (19)
Net cash from operating activities 1,983 5,111
--------------------------------------- ----------- -----------
13. Investing activities
Purchases of film distribution library (5,090) (4,485) Purchases of property, plant & equipment (6) (161) Purchases of intangible assets (6) (10) Purchase of subsidiary undertaking (800) - Net cash acquired with subsidiary undertaking 138 -------------------------------------- ------- ------- Net cash used in investing activities (5,764) (4,656) -------------------------------------- ------- -------
14. Financing activities
Proceeds from issue of ordinary share capital - 599 Issue of loan notes 1,960 - Proceeds from new borrowings 1,175 689 Repayments of bank loan - (284) Repayments of other borrowings (133) (971) Investment income 1 2 Interest paid (36) (3) Net cash from financing activities 2,967 32 ----------------------------------- ----- -----
This information is provided by RNS
The company news service from the London Stock Exchange
END
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