Half Yearly Report

 

TIDMMRM 
 
RNS Number : 6452R 
Metrodome Group PLC 
26 August 2010 
 

26 August 2010 
                              Metrodome Group plc 
                          ("Metrodome" or "the Group") 
 
        Unaudited interim results for the six months ended 30 June 2010 
 
Metrodome is pleased to announce its results for the six months ended 30 June 
2010. 
 
Highlights 
·      Headline operating profit in line with last year 
·      Significant cost savings made going forward 
·      Group's gross margin percentage has held steady at 29% 
·      Cash balances of GBP941,000 (GBP605,000 as at 30 June 2009) 
 
Operational highlights 
·      Success of I Am Love, starring Tilda Swinton, has achieved nearly GBP1m 
at the box office and The Secret in Their Eyes which won an Oscar for Best 
Foreign Language Film 
·      UK Cinema admissions in the period to May 2010 were up 0.6% 
·      Very difficult market conditions 
·      DVD sell through market, in the UK, fell 4.9% 
 
Post 30 June 2010 
·      GBP800,000 acquisition of Target Entertainment 
 
Mark Webster, CEO of Metrodome, commented: 
 
"This has been a difficult half year for Metrodome in the current market where 
the DVD sell-through market was in decline. However, we have mitigated many 
difficulties we may have otherwise faced with important cost savings and have 
achieved a respectable half year position where we have maintained our market 
position and strengthened future growth prospects through the acquisition of 
Target in the close period, and we are well set for future growth in the year 
ahead." 
 
 
 
For further information: 
+------------------------------------------------+--------------------+ 
| Mark Webster, Chairman & CEO, Metrodome Group  |      020 7766 8600 | 
| plc                                            |                    | 
+------------------------------------------------+--------------------+ 
| Dugald J. Carlean / Carl Holmes, Charles       |      020 7149 6000 | 
| Stanley Securities                             |                    | 
+------------------------------------------------+--------------------+ 
| John West / Lydia Eades, Tavistock             |      020 7920 3150 | 
| Communications                                 |                    | 
+------------------------------------------------+--------------------+ 
 
 
 
 
 
 
 
Chairman's statement 
I am delighted to report a headline operating profit broadly in line with last 
year, despite experiencing a difficult six months of trading. The first half of 
2010 has been a period of significant change for Metrodome in terms of staffing 
and strategic direction. A number of redundancies were made in the second 
quarter which will result in significant cost savings going forward. 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 remain as an all rights distribution 
business and will consider each theatrical release on its own merit in order to 
maximise revenues for our licensors. Our expertise in this area is demonstrated 
by the remarkable success of I Am Love, starring Tilda Swinton, which has 
achieved nearly GBP1m at the box office and The Secret in Their Eyes which won 
an Oscar in the Best Foreign Language Film category in March 2010 and was 
released in August to a record-breaking screen average. 
 
Business Environment 
The severity of the recession seems to have negated the often suggested theory 
that the entertainment industry is recession proof as the markets in which we 
operate have had a difficult six months. 
In the DVD sell through market, The British Video Association (BVA) report that 
retail volumes of Total DVDs (i.e. including Blu Ray) in the UK fell 4.9% in the 
six months to June 2010 which combined with a surprise, but welcomed, 0.3% 
increase in the average price of a DVD (excluding Blu Ray) to GBP8.30, possibly 
due to the ex EUK stock depressing selling prices last year resulted in the 
total market by value being down 2.9% year on year. 
On the theatrical side, the Film Distributors Association (FDA) reports that the 
UK Cinema admissions in the period to May 2010 were up 0.6%, well off from the 
14.5% increase experienced in the same period last year. Against this 
background, a year on year increase of 17.4% in our theatrical division is a 
great result. 
Although we do not have reliable market data available for the Rental and Video 
on Demand (VOD) markets it is a reasonable assumption that the former has 
suffered as the latter starts to gain better distribution and better consumer 
acceptance, albeit still at a low base. The fact that our VOD revenues have more 
than doubled leaving the combined revenues for both channels up more than 50% 
year on year suggests that we have taken market share. 
 
Financial results 
Total revenues of GBP4,506,000 were 1% lower than the same period last year (H1 
2009: GBP4,545,000) which is a pleasing result in the current marketplace. The 
Group's gross margin percentage has held steady at 29% (H1 2009: 29%) as we 
continue to control direct costs on a film by film basis, achieving results 
through clever innovative marketing solutions. 
Overheads have also held steady as the benefits of the restructuring have not 
yet been realised. We recognise this cost base is too high for the current size 
of our business but the staff reorganisation will lead to significant cost 
savings going forward and the Directors will continue to review ways of growing 
the business more efficiently. 
As revenues, gross margin and overheads have held steady, we can report a 
headline operating profit of GBP162,000, broadly in line with last year (H1 
2009: GBP161,000). 
Non-recurring costs of GBP411,000 were incurred in the first half: GBP303,000 on 
the staff reorganisation and legal and accountancy fees of GBP108,000 in respect 
of potential acquisitions, including aborted acquisitions. 
Net cash at 30 June 2010 decreased to GBP941,000 (GBP1,578,000 as at 31 December 
2009 and GBP605,000 as at 30 June 2009) reflecting increased investment in 
product of GBP2,949,000 during the first half, compared to GBP2,888,000 in the 
first half and GBP1,597,000 in the second half of last year. This also resulted 
in an increase in the value of the film distribution library to GBP3,516,000 
(GBP2,771,000 as at 31 December 2009 and GBP3,329,000 as at 30 June 2009). 
 
Operating performance 
Metrodome had eight theatrical releases in the first half, including a number of 
one-print releases to set up the DVD launch. The highlights were I Am Love which 
outperformed all expectations and Lebanon which won the Venice Film Festival's 
Golden Lion for Best Film in 2009. Favourable reviews, strong word of mouth and 
a highly visible and award-nominated marketing campaign resulted in I Am Love 
holding well among arthouse cinemas. Lebanon is a challenging, well-reviewed 
film set largely inside a tank. The success of these titles led to a 17% 
increase in cinema sales. 
The terrestrial and satellite TV channels cut back both on the number of films 
and the price they will pay for a film as a result of the downturn in their 
advertising and other income, therefore our sales increase of 16% is pleasing. 
The predicted switch from Rental to VOD is particularly noticeable this year as 
Rental revenues have fallen by 46% and VOD has increased by 157%. Our strategy 
of signing non-exclusive deals with existing and emerging VOD retailers, 
including Filmflex and iTunes, is starting to show strong results, although 
revenues are a long way short of those achieved on DVD. The predicted demise of 
the DVD market in favour of VOD has failed to emerge as yet and the emergence of 
Blu Ray and 3D may negate this prediction, at least in the short to medium term. 
Although our DVD sales have fallen by 17% overall the 2009 result was distorted 
by the success of one title, The Warlords which contributed 21% of first half 
DVD revenues in 2009. Excluding the effect of The Warlords, DVD revenues showed 
an underlying increase of 13%. 
Key titles released on DVD in the first half were: 
·      Dragon Quest 
·      Attack on Leningrad 
·      Motherhood 
·      The Bridge 
·      Everyman's War 
 
 
A full breakdown of the Group's Distribution revenue is as follows: 
 
+------------------+------------+------------+----------+ 
|                  |Six months  |Six months  |Variance  | 
|                  |  ended 30  |  ended 30  |          | 
|                  | June 2010  | June 2009  |          | 
+------------------+------------+------------+----------+ 
|                  |  GBP'000   |  GBP'000   |    %     | 
+------------------+------------+------------+----------+ 
|                  |            |            |          | 
+------------------+------------+------------+----------+ 
| Cinema Sales     |    344     |    293     |   17%    | 
+------------------+------------+------------+----------+ 
| Television Sales |    265     |    228     |   16%    | 
+------------------+------------+------------+----------+ 
| Video on Demand  |    665     |    259     |  157%    | 
+------------------+------------+------------+----------+ 
| Other ancillary  |    14      |    33      |  (58)%   | 
+------------------+------------+------------+----------+ 
| DVD Rental       |    148     |    273     |  (46)%   | 
+------------------+------------+------------+----------+ 
| DVD Sell Through |   3,070    |   3,459    |  (11)%   | 
+------------------+------------+------------+----------+ 
|                  |   4,506    |   4,545    |  (1)%    | 
+------------------+------------+------------+----------+ 
 
 
Review of Current Trading 
We develop a release strategy on a film by film basis, to ensure revenues are 
maximised for all stakeholders. The marketing strategy for each individual 
release depends on a number of factors including genre, cast, quality, 
production budget, exhibitor reaction and retailer enthusiasm. Building on the 
recent success of our theatrical releases we are keen to acquire new titles at 
upcoming film festivals, for theatrical release in 2011 and beyond. 
In addition to our traditional DVD releases, we consider key DVD titles for 
release on Blu Ray and combining with other successful titles in a boxset, in 
order to maximise revenues for each title. 
The release schedules for the second half of 2010 reflect this strategy and are 
as follows: 
 
Theatrical 
·      Leaving (July) - starring Kristin Scott Thomas 
·      The Secret In Their Eyes (August) - Oscar winner 
·      Cherry Tree Lane (September) 
 
DVD Retail Titles:-major releases 
·      Donnie Darko (July) - Blu Ray boxset 
·      Lebanon (August) - DVD and Blu Ray 
·      The Last Seven (August) - DVD and Blu Ray 
·      Caught in the Crossfire (September) 
·      I Am Love (September) 
·      Twelve (September) 
·      Danny Dyer's Mixed Martial Arts Mayhem (November) 
·      Aftershock (December) 
We will also continue to expand the range of budget priced films available on 
our In2Film label. 
 
Outlook 
We had a productive Cannes film festival this year, acquiring more than 20 
titles for release later this year and throughout 2011 and achieving strong 
international sales for our first forays into co-production, Age of the Dragon 
and Age of Heroes. 
In line with our stated objective of diversifying into related activities, on 
16th August 2010 Metrodome announced the acquisition of Target Entertainment Ltd 
("Target"), a TV distribution business with a broad international network and a 
substantial catalogue of rights across a broad range of genres, for a cash 
consideration of GBP800,000, of which GBP400,000 is provided from the Group's 
resources and GBP400,000 is provided by the issue of 4% convertible loan notes 
subscribed by Mark Webster. Target is a complementary business which will 
combine well with our film distribution operation to create a market leading 
independent rights management business and provide the Group with penetration 
into a well-established TV distribution library with circa 6,000 hours of 
content. 
We continue to seek other suitable opportunities to strengthen our current 
operations and broaden our range of activities. 
Our Finance Director, Steve Winetroube, is stepping down at the end of August 
and taking on a new role as non-executive director. I look forward to working 
with Steve and his replacement Deborah Brown, promoted from Financial 
Controller, in their new roles. 
I would personally like to thank all the staff of Metrodome for their patience 
throughout a difficult period of change and look forward to growing the business 
together. 
 
Mark Webster 
Chairman 
26 August 2010 
 
 
 
 
 
 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| Metrodome Group plc  |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| Condensed Consolidated Statement of        |          |                               |          |                               | 
| Comprehensive Income                       |          |                               |          |                               | 
+--------------------------------------------+----------+-------------------------------+----------+-------------------------------+ 
| For the six months ended     |             |          |                               |          |                               | 
| 30 June 2010                 |             |          |                               |          |                               | 
+------------------------------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |  Six Months |          |                    Six Months |          |                    Year ended | 
|                      |       |       ended |          |                         ended |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |     30 June |          |                       30 June |          |                            31 | 
|                      |       |        2010 |          |                          2009 |          |                      December | 
|                      |       |             |          |                               |          |                          2009 | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       | (Unaudited) |          |                   (Unaudited) |          |                     (Audited) | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |Notes  |      GBP000 |          |                        GBP000 |          |                        GBP000 | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| Revenue              |       |       4,506 |          |                         4,545 |          |                         9,091 | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| Cost of sales        |       |     (3,185) |          |                       (3,223) |          |                       (6,434) | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| Gross profit         |       |       1,321 |          |                         1,322 |          |                         2,657 | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| Operating expenses   |       |     (1,159) |          |                       (1,161) |          |                       (2,412) | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| Headline operating   |       |         162 |          |                           161 |          |                           245 | 
| profit               |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| Non recurring items  |  3    |       (411) |          |                             - |          |                          (45) | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| (Loss)/profit on     |       |       (249) |          |                           161 |          |                           200 | 
| ordinary activities  |       |             |          |                               |          |                               | 
| before investment    |       |             |          |                               |          |                               | 
| income, finance      |       |             |          |                               |          |                               | 
| costs and income tax |       |             |          |                               |          |                               | 
| expense              |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| Investment income    |       |           1 |          |                             1 |          |                             2 | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| Finance costs        |       |           - |          |                           (3) |          |                           (3) | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| (Loss)/profit before |       |       (248) |          |                           159 |          |                           199 | 
| income tax expense   |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| Income tax expense   |       |             |          |                               |          |                               | 
|                      |       |           - |          |                             - |          |                             - | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| (Loss)/profit for    |       |       (248) |          |                           159 |          |                           199 | 
| the period           |       |             |          |                               |          |                               | 
| attributable to      |       |             |          |                               |          |                               | 
| equity holders of    |       |             |          |                               |          |                               | 
| the company          |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| Total comprehensive  |       |       (248) |          |                           159 |          |                           199 | 
| (expense)/income for |       |             |          |                               |          |                               | 
| the period           |       |             |          |                               |          |                               | 
| attributable to      |       |             |          |                               |          |                               | 
| equity holders of    |       |             |          |                               |          |                               | 
| the company          |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
|                      |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| (Loss)/earnings per  |       |             |          |                               |          |                               | 
| share                |       |             |          |                               |          |                               | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| Basic                |  4    |      (0.1p) |          |                          0.1p |          |                          0.1p | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
| Diluted              |  4    |      (0.1p) |          |                          0.1p |          |                          0.1p | 
+----------------------+-------+-------------+----------+-------------------------------+----------+-------------------------------+ 
 
 
 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Metrodome Group    |       |             |          |             | |            | 
| plc                |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Condensed Consolidated Statement of Financial Position            | |            | 
+-------------------------------------------------------------------+-+------------+ 
| As at 30 June 2010 |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
|                    |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
|                    |       |     30 June |          |     30 June | |         31 | 
|                    |       |        2010 |          |        2009 | |   December | 
|                    |       |             |          |             | |       2009 | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
|                    |       | (Unaudited) |          | (Unaudited) | |  (Audited) | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
|                    |Notes  |      GBP000 |          |      GBP000 | |     GBP000 | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Non current assets |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Property, plant    |       |         149 |          |          25 | |        162 | 
| and equipment      |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Intangible assets  |       |           9 |          |           4 | |         11 | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Film distribution  |       |       3,516 |          |       3,329 | |      2,771 | 
| library            |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Trade and other    |       |         169 |          |          38 | |         73 | 
| receivables        |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
|                    |       |       3,843 |          |       3,396 | |      3,017 | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
|                    |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Current assets     |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Inventories        |       |          90 |          |          53 | |         90 | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Trade and other    |       |       2,441 |          |       3,338 | |      1,554 | 
| receivables        |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Cash and cash      |       |         941 |          |         605 | |      1,578 | 
| equivalents        |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
|                    |       |       3,472 |          |       3,996 | |      3,222 | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
|                    |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Total assets       |       |       7,315 |          |       7,392 | |      6,239 | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
|                    |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Current            |       |             |          |             | |            | 
| liabilities        |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Trade and other    |       |     (4,269) |          |     (4,313) | |    (3,526) | 
| payables           |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Borrowings         |       |       (200) |          |       (423) | |          - | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
|                    |       |     (4,469) |          |     (4,736) | |    (3,526) | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
|                    |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Non current        |       |             |          |             | |            | 
| liabilities        |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Borrowings         |       |       (367) |          |           - | |          - | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
|                    |       |       (367) |          |           - | |          - | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
|                    |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Total liabilities  |       |     (4,836) |          |     (4,736) | |    (3,526) | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
|                    |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Net assets         |       |       2,479 |          |       2,656 | |      2,713 | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
|                    |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Equity             |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Share capital      |       |       1,847 |          |       1,847 | |      1,847 | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Share premium      |       |       2,890 |          |       2,890 | |      2,890 | 
| account            |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Share option       |       |         195 |          |         164 | |        181 | 
| reserve            |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Accumulated losses |       |     (2,453) |          |     (2,245) | |    (2,205) | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
| Capital and        |       |       2,479 |          |       2,656 | |      2,713 | 
| reserves           |       |             |          |             | |            | 
| attributable to    |       |             |          |             | |            | 
| owners of the      |       |             |          |             | |            | 
| company            |       |             |          |             | |            | 
+--------------------+-------+-------------+----------+-------------+-+------------+ 
 
 
 
 
 
 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Metrodome Group plc                 |       |             |             |                                      |             |             | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Condensed Consolidated Statement of |       |             |             |                                      |             |             | 
| Changes in Equity                   |       |             |             |                                      |             |             | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| For the six months ended 30 June    |       |       Share |       Share |                                Share | Accumulated |       Total | 
| 2010                                |       |     capital |     premium |                               option |             |      equity | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
|                                     |       |             |     account |                              reserve |      losses |             | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
|                                     |Notes  | (Unaudited) | (Unaudited) |                          (Unaudited) | (Unaudited) | (Unaudited) | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
|                                     |       |      GBP000 |      GBP000 |                               GBP000 |      GBP000 |      GBP000 | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Balance at 1 January 2009           |       |       1,207 |       2,581 |                                  128 |     (2,404) |       1,512 | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Profit for the six month period     |       |             |             |                                      |         159 |         159 | 
|                                     |       |           - |           - |                                    - |             |             | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Total comprehensive income for the  |       |           - |           - |                                    - |         159 |         159 | 
| six month period                    |       |             |             |                                      |             |             | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Transactions with owners            |       |         640 |         309 |                                    - |           - |         949 | 
|                                     |       |             |             |                                      |             |             | 
| Net proceeds from ordinary shares   |       |             |             |                                      |             |             | 
| issued                              |       |             |             |                                      |             |             | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Share based payment charge for the  |       |             |             |                                   36 |           - |          36 | 
| period                              |       |           - |           - |                                      |             |             | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Transactions with owners            |       |         640 |         309 |                                      |           - |         985 | 
|                                     |       |             |             |                                   36 |             |             | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Balance at 30 June 2009             |       |       1,847 |       2,890 |                                 164  |     (2,245) |       2,656 | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Profit for the six month period     |       |             |             |                                      |          40 |          40 | 
|                                     |       |           - |           - |                                    - |             |             | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Total comprehensive income for the  |       |           - |           - |                                    - |          40 |          40 | 
| six month period                    |       |             |             |                                      |             |             | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Share based payment charge for the  |       |             |             |                                   17 |             |          17 | 
| period                              |       |           - |           - |                                      |           - |             | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Balance at 31 December 2009         |       |       1,847 |       2,890 |                                  181 |     (2,205) |       2,713 | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Loss for the six month period       |       |             |             |                                      |       (248) |       (248) | 
|                                     |       |           - |           - |                                    - |             |             | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Total comprehensive expense for the |       |           - |           - |                                    - |       (248) |       (248) | 
| six month period                    |       |             |             |                                      |             |             | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Share based payment charge for the  |       |             |             |                                   14 |             |          14 | 
| period                              |       |           - |           - |                                      |           - |             | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
| Balance at 30 June 2010             |       |       1,847 |       2,890 |                                  195 |     (2,453) |       2,479 | 
+-------------------------------------+-------+-------------+-------------+--------------------------------------+-------------+-------------+ 
 
 
 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
| Metrodome Group plc         |             |          |             |          |             | 
+-----------------------------+-------------+----------+-------------+----------+-------------+ 
| Condensed Consolidated Statement of       |          |             |          |             | 
| Cash Flows                                |          |             |          |             | 
+-------------------------------------------+----------+-------------+----------+-------------+ 
| For the six months          |             |          |             |          |             | 
| ended 30 June 2010          |             |          |             |          |             | 
+-----------------------------+-------------+----------+-------------+----------+-------------+ 
|                     |       |  Six Months |          |  Six Months |          |  Year ended | 
|                     |       |       ended |          |       ended |          |             | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
|                     |       |     30 June |          |     30 June |          | 31 December | 
|                     |       |        2010 |          |        2009 |          |        2009 | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
|                     |       | (Unaudited) |          | (Unaudited) |          |   (Audited) | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
|                     |Notes  |      GBP000 |          |      GBP000 |          |      GBP000 | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
|                     |       |             |          |             |          |             | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
| Net cash from       |  6    |       1,748 |          |       1,950 |          |       5,111 | 
| operating           |       |             |          |             |          |             | 
| activities          |       |             |          |             |          |             | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
|                     |       |             |          |             |          |             | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
| Net cash used in    |  7    |     (2,953) |          |     (2,891) |          |     (4,656) | 
| investing           |       |             |          |             |          |             | 
| activities          |       |             |          |             |          |             | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
|                     |       |             |          |             |          |             | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
| Net cash from       |  8    |         568 |          |         455 |          |          32 | 
| financing           |       |             |          |             |          |             | 
| activities          |       |             |          |             |          |             | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
|                     |       |             |          |             |          |             | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
| Net                 |       |       (637) |          |       (486) |          |         487 | 
| (decrease)/increase |       |             |          |             |          |             | 
| in cash and cash    |       |             |          |             |          |             | 
| equivalents         |       |             |          |             |          |             | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
|                     |       |             |          |             |          |             | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
| Cash and cash       |       |       1,578 |          |       1,091 |          |       1,091 | 
| equivalents at      |       |             |          |             |          |             | 
| beginning of        |       |             |          |             |          |             | 
| period              |       |             |          |             |          |             | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
|                     |       |             |          |             |          |             | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
| Cash and cash       |       |         941 |          |         605 |          |       1,578 | 
| equivalents at end  |       |             |          |             |          |             | 
| of period           |       |             |          |             |          |             | 
+---------------------+-------+-------------+----------+-------------+----------+-------------+ 
 
 
 
Metrodome Group plc 
Notes to the Financial Statements 
For the six months ended 30 June 2010 
 
1.   General information 
Metrodome Group plc is a company incorporated in the United Kingdom under the 
Companies Act 1985 and domiciled in the United Kingdom. 
 
2.   Accounting policies 
Basis of Presentation 
The unaudited financial statements have 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. 
These financial statements are presented in pounds sterling since that is the 
currency in which the majority of the Group's transactions are denominated. 
The financial information in this interim report does not constitute statutory 
accounts within the meaning of section 434 of the Companies Act 2006. The 
financial information contained in this interim report has been neither audited 
nor reviewed by the auditor. 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 under 
section 435 of the Companies Act 2006. 
The comparative figures for the year ended 31 December 2009 were derived from 
the statutory accounts for that year. 
Basis of new and revised standards 
The following standards and interpretations have been applied in these financial 
statements:- 
IFRS 2        Share-based payment (amendment) 
IFRS 3        Business Combinations (Revised 2008) 
IFRS 5        Non-current Assets held for Sale and Discontinued Operations 
(amendment) 
IFRS 8        Operating Segments (amendment) 
IAS 1          Presentation of Financial Statements (amendment) 
IAS 7          Statement of Cash Flows (amendment) 
IAS 17        Leases (amendment) 
IAS 18        Revenue (amendment) 
IAS 27        Consolidated and Separate Financial Statements (Revised 2008) 
IAS 28        Investments in Associates 
IAS 31        Investments in Joint Ventures 
IAS 36        Impairment of Assets (amendment) 
IAS 38        Intangible Assets (amendment) 
IAS 39        Eligible Hedged Items (amendment) 
IAS 39        Financial Instruments: Recognition and Measurement (amendment) 
IFRS 2        Group Cash-settled Share-Based Payment Transactions (amendment) 
IFRIC 9       Reassessment of Embedded Derivatives (amendment) 
IFRIC 16      Hedges of a Net Investment in a Foreign Operation 
IFRIC 17      Distributions of Non-cash Assets to Owners 
IFRIC 18      Transfers of Assets to Customers 
The directors consider the adoption of these standards and interpretations as 
appropriate has had no material impact on the financial statements. 
 
3.   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. 
 
+-------------------------+-------------+----------+-------------+----------+------------+ 
|                         |         Six |          |         Six |          | Year ended | 
|                         |      Months |          |      Months |          |            | 
|                         |       ended |          |       ended |          |            | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
|                         |     30 June |          |     30 June |          |         31 | 
|                         |        2010 |          |        2009 |          |   December | 
|                         |             |          |             |          |       2009 | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
|                         | (Unaudited) |          | (Unaudited) |          |  (Audited) | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
|                         |      GBP000 |          |      GBP000 |          |     GBP000 | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
| Due diligence costs     |        (27) |          |           - |          |       (45) | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
|                         |        (81) |          |             |          |            | 
| Pre-acquisition costs   |             |          |             |          |            | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
| Termination costs       |       (303) |          |           - |          |            | 
|                         |             |          |             |          |          - | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
|                         |       (411) |          |           - |          |       (45) | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
 
Due diligence costs 
Metrodome incurred GBP27,000 of legal and professional fees in respect of 
potential acquisitions which were aborted in the first half of 2010. 
 
Pre-acquisition costs 
Metrodome incurred GBP81,000 of legal and professional fees in respect of the 
acquisition of Target Entertainment Ltd which was completed in August 2010. 
 
Termination costs 
The Group incurred GBP303,000 of redundancy payments and termination costs in 
respect of the staff re-organisation in the second quarter of 2010. 
 
4.   (Loss)/earnings per share 
The (loss)/earnings per share is based on the consolidated (loss)/profit after 
taxation and the weighted average number of shares in the period of 184,717,915 
(30 June 2009: 163,384,582). 
Basic and diluted earnings per share are the same as there are no potential 
ordinary shares that would decrease/(increase) net (loss)/earnings per share 
from continuing operations in the year. 
 
5.   Dividends 
As in prior periods the directors are not recommending payment of a dividend. 
 
 
6.   Reconciliation of (loss)/profit from operations to net cash from operating 
activities 
 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
|                        |                              Six |          |                                Six |          |                        Year ended | 
|                        |                           Months |          |                             Months |          |                                   | 
|                        |                            ended |          |                              ended |          |                                   | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
|                        |                          30 June |          |                            30 June |          |                       31 December | 
|                        |                             2010 |          |                               2009 |          |                              2009 | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
|                        |                      (Unaudited) |          |                        (Unaudited) |          |                         (Audited) | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
|                        |                           GBP000 |          |                             GBP000 |          |                            GBP000 | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
|                        |                                  |          |                                    |          |                                   | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
| (Loss)/profit before   |                            (248) |          |                                159 |          |                               199 | 
| income tax expense     |                                  |          |                                    |          |                                   | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
| Adjustments for:       |                                  |          |                                    |          |                                   | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
| Investment income      |                              (1) |          |                                    |          |                               (2) | 
|                        |                                  |          |                                (1) |          |                                   | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
| Finance costs          |                                - |          |                                    |          |                                 3 | 
|                        |                                  |          |                                  3 |          |                                   | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
|                        |                               17 |          |                                  6 |          |                                23 | 
| Depreciation of        |                                  |          |                                    |          |                                   | 
| property, plant &      |                                  |          |                                    |          |                                   | 
| equipment              |                                  |          |                                    |          |                                   | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
| Amortisation of        |                                2 |          |                                  1 |          |                                 3 | 
| intangible assets      |                                  |          |                                    |          |                                   | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
| Amortisation of film   |                            1,766 |          |                              1,944 |          |                             3,777 | 
| distribution library   |                                  |          |                                    |          |                                   | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
| Impairment of film     |                              438 |          |                                345 |          |                                   | 
| distribution library   |                                  |          |                                    |          |                               667 | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
| Share based payment    |                              14  |          |                                 36 |          |                               53  | 
| expense                |                                  |          |                                    |          |                                   | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
|                        |                                - |          |                                  - |          |                                 6 | 
| Gain on disposal of    |                                  |          |                                    |          |                                   | 
| property, plant &      |                                  |          |                                    |          |                                   | 
| equipment              |                                  |          |                                    |          |                                   | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
| Decrease in            |                                  |          |                                    |          |                              (37) | 
| inventories            |                                - |          |                                  - |          |                                   | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
| (Increase)/decrease in |                            (983) |          |                            (1,311) |          |                               438 | 
| receivables            |                                  |          |                                    |          |                                   | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
| Increase/(decrease) in |                              743 |          |                                768 |          |                              (19) | 
| payables               |                                  |          |                                    |          |                                   | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
| Net cash from          |                            1,748 |          |                              1,950 |          |                             5,111 | 
| operating activities   |                                  |          |                                    |          |                                   | 
+------------------------+----------------------------------+----------+------------------------------------+----------+-----------------------------------+ 
 
7.   Investing activities 
 
+-------------------------+-------------+----------+-------------+----------+------------+ 
|                         |         Six |          |         Six |          | Year ended | 
|                         |      Months |          |      Months |          |            | 
|                         |       ended |          |       ended |          |            | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
|                         |     30 June |          |     30 June |          |         31 | 
|                         |        2010 |          |        2009 |          |   December | 
|                         |             |          |             |          |       2009 | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
|                         | (Unaudited) |          | (Unaudited) |          |  (Audited) | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
|                         |      GBP000 |          |      GBP000 |          |     GBP000 | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
| Purchases of film       |     (2,949) |          |     (2,888) |          |    (4,485) | 
| distribution library    |             |          |             |          |            | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
|                         |         (3) |          |        ( 2) |          |      (161) | 
| Purchases of property,  |             |          |             |          |            | 
| plant and equipment     |             |          |             |          |            | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
| Purchases of intangible |         (1) |          |         (1) |          |       (10) | 
| assets                  |             |          |             |          |            | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
|                         |           - |          |           - |          |          - | 
| Proceeds from disposal  |             |          |             |          |            | 
| of property, plant &    |             |          |             |          |            | 
| equipment               |             |          |             |          |            | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
| Net cash used in        |     (2,953) |          |     (2,891) |          |    (4,656) | 
| investing activities    |             |          |             |          |            | 
+-------------------------+-------------+----------+-------------+----------+------------+ 
 
 
8.   Financing activities 
+-------------------------+-------------+----------+---------------------------------------+----------+------------+ 
|                         |         Six |          |                                   Six |          | Year ended | 
|                         |      Months |          |                                Months |          |            | 
|                         |       ended |          |                                 ended |          |            | 
+-------------------------+-------------+----------+---------------------------------------+----------+------------+ 
|                         |     30 June |          |                               30 June |          |         31 | 
|                         |        2010 |          |                                  2009 |          |   December | 
|                         |             |          |                                       |          |       2009 | 
+-------------------------+-------------+----------+---------------------------------------+----------+------------+ 
|                         | (Unaudited) |          |                           (Unaudited) |          |  (Audited) | 
+-------------------------+-------------+----------+---------------------------------------+----------+------------+ 
|                         |      GBP000 |          |                                GBP000 |          |     GBP000 | 
+-------------------------+-------------+----------+---------------------------------------+----------+------------+ 
| Net proceeds from issue |           - |          |                                   599 |          |        599 | 
| of ordinary share       |             |          |                                       |          |            | 
| capital                 |             |          |                                       |          |            | 
+-------------------------+-------------+----------+---------------------------------------+----------+------------+ 
| Proceeds from new       |         600 |          |                                   689 |          |            | 
| borrowings              |             |          |                                       |          |        689 | 
+-------------------------+-------------+----------+---------------------------------------+----------+------------+ 
| Repayments of bank loan |           - |          |                                 (284) |          |            | 
|                         |             |          |                                       |          |      (284) | 
+-------------------------+-------------+----------+---------------------------------------+----------+------------+ 
| Repayments of           |        (33) |          |                                 (547) |          |      (971) | 
| borrowings              |             |          |                                       |          |            | 
+-------------------------+-------------+----------+---------------------------------------+----------+------------+ 
| Investment income       |           1 |          |                                     1 |          |            | 
|                         |             |          |                                       |          |          2 | 
+-------------------------+-------------+----------+---------------------------------------+----------+------------+ 
| Interest paid           |           - |          |                                   (3) |          |        (3) | 
+-------------------------+-------------+----------+---------------------------------------+----------+------------+ 
| Net cash from financing |         568 |          |                                   455 |          |         32 | 
| activities              |             |          |                                       |          |            | 
+-------------------------+-------------+----------+---------------------------------------+----------+------------+ 
 
 
9.   Interim Announcement 
 
Copies of the Interim Report will be posted to the Group's shareholders on 31 
August 2010 and available to download from the Group's website 
www.metrodomegroup.com and from the Groups main office at 3rd Floor, The 
Communications Building, 48 Leicester Square, London WC2H 7LT. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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