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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 : 9558F
Metrodome Group PLC
31 May 2013
30 May 2013
Metrodome Group Plc
("Metrodome" or the "Company")
Preliminary Results for the year to 31 December 2012
Metrodome is pleased to announce its preliminary results for the year ended 31 December 2012.
Financial highlights
-- Revenue down 9% to GBP8.2 million (2011: GBP9.0 million) -- Underlying EBITDA* of GBP93,000 (2011: GBP656,000) -- New loan funding of GBP750k in January 2013
*Underlying EBITDA consists of earnings from continuing operations before exceptional items, interest, tax, depreciation, amortisation of software costs and amortisation of acquired intangible assets.
Operational highlights
-- Target Entertainment Ltd placed into administration in February 2012 -- Oscar nomination for "In Darkness" in February 2012 -- Oscar nomination for "A Royal Affair" in February 2013 -- HMV in administration in January 2013
Strategic highlights
-- The board announces its intention to delist the company from AIM
Mark Webster, Executive Chairman of Metrodome, commented:
"We have seen a shakeout in the film distribution industry with the recent difficulties of some of our main competitors. The Group is in a good position to capitalise in the marketplace and well positioned for organic growth. This will be achieved by continuing to acquire and/or produce good quality content for UK distribution and the acquisition and representation of classic film libraries across all platforms including the emerging digital platforms which will be a catalyst for growth. It is the Board's belief that the next stage of the Company's growth can be best effected as a private company. "
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
Chairman's Statement
Metrodome is pleased to present its results for the year ended 31 December 2012.
Metrodome is 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. As a business we excel in creating bespoke, cost effective release strategies to maximise returns for all stakeholders. We pride ourselves on our 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.
Operating performance
The continuing businesses of UK film distribution and worldwide sales agency were profitable for the year at the underlying EBITDA level (note 3), despite the loss of sales to HMV and Blockbuster which went into administration in January 2013.
Metrodome released 7 theatrical titles to cinemas in 2012 plus 22 one-print releases to launch the DVD. The highlights included In Darkness, the Oscar nominated World War 2 story about Jewish refugees, A Royal Affair, the Oscar nominated 18(th) century historical drama and Room 237, the documentary exploring the hidden meanings in Stanley Kubrick's film The Shining.
The Group released 57 DVD titles during the year, including:
-- Grave Encounters (horror) -- Innkeepers (horror) -- St Georges Day (British crime thriller)
HMV went into administration in January 2013 which had a serious impact on our Q4 revenue. DVD sales were reduced by GBP213,000.
A full breakdown of the Group's total revenue is as follows:
Hot Features
Premium
Year ended % of Year ended % of Growth
31 Dec 12 Revenue 31 Dec 11 Revenue Year on Year
Revenue GBP'000 % GBP'000 % %
Cinema Sales 604 7.4% 348 3.9% 73.6%
Television Sales 550 6.7% 434 4.8% 26.7%
Video on Demand 1,043 12.7% 1,110 12.4% (6.0)%
Other ancillary income 277 3.4% 77 0.9% 259.7%
DVD Rental 285 3.5% 344 3.8% (17.2)%
DVD Sell Through 5,436 66.3% 6,643 74.2% (18.2)%
8,195 100.0% 8,956 100.0% (8.5)%
========== ======== ==================== ======== =============
Total revenues of GBP8,195,000 were 8.5% lower than the same period last year (2011: GBP8,956,000), mainly due to the loss of sales to HMV.
We announced our expansion into production with a slate of films through our subsidiary Cinedome Ltd. Five projects are at various stages of development and production. The film library includes GBP103,000 incurred during the year on the first feature via a new subsidiary: Devil Lies Beneath Ltd. Borderlands is an innovative horror feature which will be released in the UK in 2013.
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.
Hollywood Classics moved into the Edgware Road office in February 2012 which will ultimately achieve significant cost savings by reducing overheads.
We carried out a review of operating costs at the end of the year which resulted in 4 redundancies in early 2013.
Discontinuation of Target Entertainment Ltd ("Target")
The acquisition of Target fulfilled a strategic aim to diversify into worldwide TV distribution to complement our existing film distribution business. Unfortunately this objective proved to be unsuccessful due to a number of factors, including the underperformance in sales of key programmes and the loss of key producers post acquisition. Target was placed into administration on 28 February 2012 because it had accumulated losses and needed significant funding to meet its current liabilities and acquisition of new programming in order to return to profitability. Metrodome decided it was not in the best interests of the Company to provide this level of continued support for its loss-making subsidiary. It was a difficult but necessary decision in order to safeguard the future of the remaining profitable trading divisions of the Group. Metrodome was owed GBP2.8m when the joint administrators were appointed.
Under applicable accounting standards we were required to impair the assets in 2011 and remove the liabilities from the consolidation in 2012, which resulted in a profit from discontinued operations for the year of GBP5,196,000 (2011: loss of GBP8,733,000).
Funding
On 23 January 2013 the company raised GBP750,000 from Metrodome BV, a 7.13% shareholder of the Company which is ultimately controlled by the same entity which owns a majority investment of Alerria Management Company SA, a 34.7% shareholder of the Company. The loan shall be used to supplement working capital requirements and acquire new content.
Board changes
On 30 September 2012 Steve Winetroube resigned from his role as Chief Operating Officer for the Group.
Delisting
The board has carefully reviewed the costs and benefits of being on AIM and decided it is in the best interests of all shareholders and the company to cancel ("Cancellation") its listing on AIM. The Board has given careful attention to the merits of maintaining its listing on AIM against the current backdrop of a lack of liquidity in the trading of the ordinary shares, the challenges and likelihood of raising equity finance and the annual cost of maintaining the listing. This was a difficult but necessary decision. We can no longer justify the expense when we see little prospect of raising funding in the near future. The Board will make provision for shareholders to continue to trade their shares after the Cancellation. The AIM Rules require that shareholders approve the Cancellation. Further information surrounding the Cancellation proposals will be circulated to shareholders in the Annual Report to be dispatched in due course with the resolution to be included at the next AGM which is anticipated to take place on 25 June 2013.
Outlook
We have seen a shakeout in the film distribution industry with the recent difficulties of some of our main competitors. The Group is in a good position to capitalise in the marketplace and well positioned for organic growth. This will be achieved by continuing to acquire and/or produce good quality content for UK distribution and the acquisition and representation of classic film libraries across all platforms including the emerging digital platforms which will be a catalyst for growth. It is the Board's belief that the next stage of the Company's growth can be best effected as a private company.
Mark Webster
Chairman
30 May 2013
Consolidated Income Statement
For the year ended 31 December 2012
31 December 31 December
2012 2011
Continuing operations Notes GBP'000 GBP'000
Revenue 8,195 8,956
Cost of sales (5,056) (5,797)
Gross profit 3,139 3,159
Operating expenses (3,859) (2,562)
Operating (loss) / profit (720) 597
Analysed as:
Underlying EBITDA 3 93 656
Exceptional items 6 (34) 140
Depreciation and amortisation of
software costs (64) (64)
Amortisation and impairment of acquired
intangibles (715) (135)
--------------------------------------------- ------- ------------ ------------
(720) 597
--------------------------------------------- ------- ------------ ------------
Investment income - 7
Finance costs (151) (192)
--------------------------------------------- ------- ------------ ------------
(Loss)/profit before income tax expense (871) 412
Income tax credit 7 112 -
--------------------------------------------- ------- ------------ ------------
(Loss)/profit for the year from continuing
operations (759) 412
--------------------------------------------- ------- ------------ ------------
Profit/(loss) for the year from discontinued
operations 5,196 (8,733)
--------------------------------------------- ------- ------------ ------------
Profit/(loss) for the year 4,437 (8,321)
--------------------------------------------- ------- ------------ ------------
Attributable to
Equity holders of the parent 4,437 (8,309)
Non-controlling interest - (12)
--------------------------------------------- ------- ------------ ------------
Profit/(loss) for the year 4,437 (8,321)
--------------------------------------------- ------- ------------ ------------
Earnings / (loss) per share
Basic and diluted 4 1.6p (3.8)p
(Loss) / earnings per share from
continuing operations
Basic and diluted 4 (0.3)p 0.2p
Earnings / (loss) per share from
discontinued operations
Basic and diluted 4 1.9p (4.0)p
Consolidated Statement of Comprehensive
Income
For the year ended 31 December 2012
31 December 31 December
2012 2011
GBP'000 GBP'000
Profit / (loss) for the year 4,437 (8,321)
Other comprehensive income net of
tax:
Exchange differences arising on translation 13 (18)
--------------------------------------------- ------- ------------ ------------
Other comprehensive income for the
year 13 (18)
Total comprehensive income for the
year 4,450 (8,339)
--------------------------------------------- ------- ------------ ------------
Attributable to:
Equity holders of parent
* continuing operations (746) 394
* discontinued operations 5,196 (8,721)
Non-controlling interest
* discontinued operations - (12)
--------------------------------------------- ------- ------------ ------------
Total comprehensive income for the
year 4,450 (8,339)
--------------------------------------------- ------- ------------ ------------
Consolidated Statement of Financial Position
As at 31 December 2012
2012 2011
Notes GBP'000 GBP'000
Non current assets
Property, plant and equipment 152 171
Intangible assets 38 16
Film distribution library 4,294 3,502
Producer relationships 1,474 2,189
Trade and other receivables 123 330
---------------------------------- ----- ------- --------
6,081 6,208
---------------------------------- ----- ------- --------
Current assets
Inventories 105 85
Trade and other receivables 3,803 9,314
Income tax recoverable 29 -
Cash and cash equivalents 29 710
3,966 10,109
---------------------------------- ----- ------- --------
Total assets 10,047 16,317
---------------------------------- ----- ------- --------
Current liabilities
Trade and other payables (6,815) (17,277)
Current income tax liabilities - (272)
Borrowings 9 (2,558) (2,061)
---------------------------------- ----- ------- --------
(9,373) (19,610)
---------------------------------- ----- ------- --------
Non current liabilities
Trade and other payables (46) (171)
Deferred income tax liabilities (230) (342)
Borrowings 9 (237) (588)
---------------------------------- ----- ------- --------
(513) (1,101)
---------------------------------- ----- ------- --------
Total liabilities (9,886) (20,711)
---------------------------------- ----- ------- --------
Net assets / (liabilities) 161 (4,394)
---------------------------------- ----- ------- --------
Equity
Share capital 2,806 2,806
Share premium account 3,653 3,653
Share option reserve 41 37
Equity reserve 160 160
Translation reserve (6) (19)
Accumulated losses (6,493) (10,930)
---------------------------------- ----- ------- --------
Capital and reserves attributable
to equity holders of the parent 161 (4,293)
Non-controlling interest - (101)
---------------------------------- ----- ------- --------
Total equity 161 (4,394)
---------------------------------- ----- ------- --------
Consolidated Statement of Changes in Equity
For the year ended 31 December 2012
Share Share Share Non-
capital premium option Equity Translation Accumulated Sub-Total Controlling Total
account reserve reserve reserve losses Interest equity
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2011 1,847 2,890 47 270 (1) (2,723) 2,330 (89) 2,241
------------------------- ---------------------------------- ---------------------------------- ---------------------------------- ------------------------------- ------------- ------------------------------- ----------- ------------------------------- --------
Loss for the year - - - - - (8,309) (8,309) (12) (8,321)
Exchange differences
arising
on translation of
overseas
operations - - - - (18) - (18) - (18)
------------------------- ---------------------------------- ---------------------------------- ---------------------------------- ------------------------------- ------------- ------------------------------- ----------- ------------------------------- --------
Total comprehensive
income
for the year - - - - (18) (8,309) (8,327) (12) (8,339)
------------------------- ---------------------------------- ---------------------------------- ---------------------------------- ------------------------------- ------------- ------------------------------- ----------- ------------------------------- --------
Transactions
with owners
Net proceeds from
ordinary
shares issued (net of
issue
costs) 559 463 - - - - 1,022 - 1,022
Loan notes converted to
equity 400 300 - (110) - 76 666 - 666
------------------------- ---------------------------------- ---------------------------------- ---------------------------------- ------------------------------- ------------- ------------------------------- ----------- ------------------------------- --------
Share options
forfeited during
the year - - (26) - - 26 - - -
Share based payment
charge
for the year - - 16 - - - 16 - 16
------------------------- ---------------------------------- ---------------------------------- ---------------------------------- ------------------------------- ------------- ------------------------------- ----------- ------------------------------- --------
Transactions with owners 959 763 (10) (110) - 102 1,704 - 1,704
------------------------- ---------------------------------- ---------------------------------- ---------------------------------- ------------------------------- ------------- ------------------------------- ----------- ------------------------------- --------
At 31 December 2011 2,806 3,653 37 160 (19) (10,930) (4,293) (101) (4,394)
------------------------- ---------------------------------- ---------------------------------- ---------------------------------- ------------------------------- ------------- ------------------------------- ----------- ------------------------------- --------
Consolidated Statement of Changes in Equity
For the year ended 31 December 2012
Share Share Non-
Share premium option Equity Translation Accumulated Sub-Total Controlling Total
capital account reserve reserve reserve losses Interest equity
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2012 2,806 3,653 37 160 (19) (10,930) (4,293) (101) (4,394)
------------------------- ------------------------------- ---------------------------------- ---------------------------------- ------------------------------- ------------ ------------------------------- ---------- ------------------------------- --------
Profit for the year - - - - - 4,437 4,437 - 4,437
Exchange differences
arising on translation
of overseas operations - - - - 13 - 13 - 13
------------------------- ------------------------------- ---------------------------------- ---------------------------------- ------------------------------- ------------ ------------------------------- ---------- ------------------------------- --------
Total comprehensive
income for the year - - - - 13 4,437 4,450 - 4,450
------------------------- ------------------------------- ---------------------------------- ---------------------------------- ------------------------------- ------------ ------------------------------- ---------- ------------------------------- --------
Transactions
with owners
Share based payment
charge for the year - - 4 - - - 4 - 4
Non controlling
interest
of discontinued
operation - - - - - - - 101 101
------------------------- ------------------------------- ---------------------------------- ---------------------------------- ------------------------------- ------------ ------------------------------- ---------- ------------------------------- --------
Transactions with owners - - 4 - - - 4 101 105
------------------------- ------------------------------- ---------------------------------- ---------------------------------- ------------------------------- ------------ ------------------------------- ---------- ------------------------------- --------
At 31 December 2012 2,806 3,653 41 160 (6) (6,493) 161 - 161
------------------------- ------------------------------- ---------------------------------- ---------------------------------- ------------------------------- ------------ ------------------------------- ---------- ------------------------------- --------
Consolidated Statement of Cash Flows
For the Year ended 31 December 2012
Year ended Year ended
31 December 31 December
2012 2011
Notes GBP'000 GBP'000
Net cash generated from operating activities 10 3,837 4,809
Net cash used in investing activities 11 (4,629) (6,330)
Net cash (used in) / generated from financing
activities 12 (194) 1,467
Net decrease in cash and cash equivalents (986) (54)
Cash and cash equivalents at beginning
of year 710 764
Cash and cash equivalents at end of year (276) 710
---------------------------------------------- ----- ----------- -----------
Notes to the Preliminary announcement
For the year ended 31 December 2012
1. Preparation of the accounts
The 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.
Going concern
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.
There is uncertainty over future revenues since HMV and Blockbuster went into administration in January 2013. The company continued to trade with the administrators and is trading with the new owners of HMV on a consignment basis, whereby Metrodome only records a sale when it has been made over the counter to the end consumer, which minimises the risk of bad debt. The company experienced a similar shake up in the market when EUK ceased trading in 2008. The directors are confident that consumers will find a way to consume our product in the absence of HMV, provided we expand into alternative retail outlets and continue our expansion into online and video on demand platforms.
The company was technically in breach of certain loan covenants at the year end and so the bank could have recalled their loan. The conditions of the bank loan were successfully renegotiated in April 2013 and the loan repayments over the remaining term are unchanged.
The directors monitor the success and failure of the company's main competitors. Whilst the directors have noted the failure of close competitors such as Revolver Entertainment Ltd, which went into administration in April 2013, the directors see the potential opportunity to acquire new films and increase market share as a result.
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.
The following factors are taken into consideration during the going concern assessment:
1) Overdraft at the end of the financial year of GBP276,000 (2011: GBP710,000 cash at bank) 2) Cash balance at the end of April 2013 of GBP268,000 and cash generated during May 2013,
3) The Group's bank overdraft facility of GBP500,000 which has a temporary uplift of GBP250,000 to GBP750,000 for 6 months from June to November 2013,
4) Detailed forecasts prepared which contain cash flow projections by title, based on consistent and reliable assumptions for income recognition and the timing of cash flows,
5) The quantity and quality of films scheduled for release in the next twelve months and the acquisition strategy to fill in the gaps in the schedule,
6) The Group's reduced reliance on key customers due to an increase in the number of customers and use of credit insurance,
7) The Group's dependence on key suppliers which has ensured contingency plans are put in place to ensure business continuity,
8) The extension of loan facilities and the agreement to extend the convertible loan notes 9) Loan covenant forecasts and the ongoing support of 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 and the ongoing support of major shareholders, 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.
Preliminary announcement
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 2011 and the same accounting policies adopted in the financial statements of the Group for the year ended 31 December 2012.
The financial information in this preliminary announcement does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 but has been derived from statutory accounts for the year ended 31 December 2012 which will be delivered to the Registrar of Companies in due course. 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. Statutory accounts for the year ended 31 December 2011 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. Operating segments
IFRS 8 Operating Segments 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 2012 whose reports were reviewed by the Board in order to allocate resources and assess performance. The first operating segment is based on its original business activity of UK film distribution. The second segment, Hollywood Classics, an international sales agency, reflects Hollywood Classics Limited, a 100% owned subsidiary acquired on 11 August 2011 and whose results have been included in the consolidated financial statements. In 2011 there were three operating segments: film distribution, Hollywood Classics and TV distribution. The TV distribution segment reflected Target Entertainment Limited (and its subsidiaries), a 100% owned subsidiary discontinued on 28 February 2012 when Target was placed into administration. Pricing of transactions between operating segments is determined on an arm's length basis.
Operating segments
Year ended 31 December 2012 Metrodome Hollywood Corporate
Distribution Classics Costs Total
Film Film
GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue 6,872 1,323 - 8,195
-------------- ---------- ---------- ---------
Underlying EBITDA 3 71 19 93
Exceptional items - - (34) (34)
Depreciation (2) (3) (46) (51)
Amortisation of software costs - (7) (6) (13)
Amortisation of acquired intangibles - (597) - (597)
Impairment of acquired intangibles - (118) - (118)
Segment profit / (loss) 1 (654) (67) (720)
Finance costs (27) - (124) (151)
-------------- ---------- ---------- ---------
Loss before income tax expense (26) (654) (191) (871)
-------------- ---------- ---------- ---------
Segment assets 7,330 3,440 3,934 14,704
Elimination of intercompany balances (4,657)
---------
10,047
---------
Segment liabilities (9,306) (1,640) (3,597) (14,543)
Elimination of intercompany balances 4,657
(9,886)
---------
Amortisation of film distribution
library 3,371 - - 3,371
Impairment of film distribution
library 399 - - 399
Operating segments
Year ended 31 December 2011 Metrodome Hollywood Corporate Discontinued
Distribution Classics Costs Total operations Total
Film Film
(5 months)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue 8,243 713 - 8,956 7,819 16,775
-------------- ----------- ---------- --------- ------------- ---------
Underlying EBITDA 434 185 37 656 (436) 220
Exceptional items - 504 (364) 140 (7,001) (6,861)
Depreciation (2) (2) (49) (53) (12) (65)
Amortisation of software costs - (4) (7) (11) (9) (20)
Amortisation of acquired intangibles - (135) - (135) (1,128) (1,263)
Segment profit / (loss) 432 548 (383) 597 (8,586) (7,989)
Investment income 7 - - 7 - 7
Finance costs (71) - (121) (192) (75) (267)
-------------- ----------- ---------- --------- ------------- ---------
Profit / (loss) before income
tax expense 368 548 (504) 412 (8,661) (8,249)
-------------- ----------- ---------- --------- ------------- ---------
Segment assets 6,299 3,278 5,198 14,775 4,994 19,769
Elimination of intercompany balances (3,452)
---------
16,317
---------
Segment liabilities (8,209) (2,747) (2,776) (13,732) (13,254) (26,986)
Elimination of intercompany balances 3,452
Elimination of Target intercompany
balance 2,823
---------
(20,711)
---------
Amortisation of film & TV distribution
library 3,431 - - 3,431 1,452 4,883
Impairment of film & TV distribution
library 578 - - 578 3,513 4,091
3. Underlying EBITDA
Underlying EBITDA consists of earnings from continuing operations before exceptional items, interest, tax, depreciation, amortisation of software costs and amortisation of acquired intangible assets.
4. Earnings / (loss) per share
2012 2011
GBP'000 GBP'000
Profit/(loss) for the purpose of basic
earnings per share 4,437 (8,309)
(Loss)/profit for the purpose of basic
earnings per share on continuing activities (759) 412
Profit/(loss) for the purpose of basic
earnings per share on discontinued activities 5,196 (8,721)
Number of shares
Weighted average number of ordinary shares
for the purposes of basic and diluted earnings/(loss)
per share 280,567,915 220,661,665
Basic and diluted earnings/(loss) per share 1.6p (3.8)p
Basic and diluted (loss)/earnings per share
on continuing activities (0.3)p 0.2p
Basic and diluted earnings/(loss) per share
on discontinued activities 1.9p (4.0)p
Basic and diluted earnings per share are the same in the current year because at the year end the exercise price was greater than the share price. Basic and diluted earnings per share are the same in the prior year as the effect on the loss for the year would be anti-dilutive.
5. Dividends
The directors are unable to recommend payment of a dividend (2011: GBPnil).
6. Exceptional items
The Group has separately identified costs and revenue of an exceptional nature which are considered to be outside the normal course of business due to their one-off nature or size.
2012 2011
GBP'000 GBP'000
Bargain purchase - (504)
Legal and professional fees - 325
Staff re-organisation 34 -
Office move - 39
34 (140)
----------------------------- -------- --------
Staff reorganisation
The Group incurred GBP34,000 (2011: GBPnil) of redundancy payments and termination costs in respect of the staff re-organisation during the year.
7. Income tax expense
2012 2011
GBP'000 GBP'000
Current tax - charge for the year - 9
- adjustment in respect of prior periods - 63
------------------------------------------------------------ ---------- ---------
- 72
Discontinued operation - (72)
Deferred tax credit 112 -
112 -
----------------------------------------------------------------------- ---------
The deferred tax credit for the year is due to the amortisation of the fair value of producer relationships.
8. 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 income 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.
9. Borrowings
2012 2011
GBP'000 GBP'000
The other borrowings are repayable
as follows:
Within one year 2,558 2,061
In the second year 170 248
Between two and five years 67 340
2,795 2,649
------------------------------------ -------- --------
Analysed as:
Convertible loan notes 1,118 1,115
Bank overdraft 305 -
Bank loans 511 807
Loan from a related party 441 503
Other loan 420 224
2,795 2,649
--------------------------- ------ ------
The convertible loan notes are unsecured, carry an interest rate of 4% and have a maturity date of 31 August 2014. The maturity date of the convertible loan notes was extended from 31 August 2012 in July 2012 and extended from 31 August 2013 in April 2013.
The bank loan is in sterling, carries an interest rate of 4.5% above Coutts bank base rate and is repayable over four years by equal quarterly instalments. The bank loan is secured by a fixed and floating charge over the assets of the Company and its trading subsidiaries plus an unlimited inter-company composite guarantee. The bank loan was converted from euros to sterling in September 2012. The bank loan is treated as repayable on demand as at 31 December 2012 because certain conditions of the loan were not met. The loan agreement states bank interest should be covered 2 times by EBITDA. Bank interest of GBP65,000 (note 14) was covered 0.9 times by EBITDA of GBP59,000. The loan agreement states Shareholders Funds should not fall below GBP500,000 and the Consolidated Statement of Financial Position shows GBP161,000. The conditions of the bank loan have been renegotiated in April 2013 and the loan repayments over four years are unchanged.
The loan from a related party is in US dollars, is unsecured, carries an interest rate of 4% and is repayable on 31 August 2014. The repayment date was extended from 31 August 2012 in March 2012 and extended from 31 August 2013 in April 2013.
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.
10. Reconciliation of loss before income tax expense to net cash from operating activities
Year ended Year ended
31-Dec-2012 31-Dec-2011
GBP'000 GBP'000
(Loss) / profit before income
tax expense (871) 412
Income taxes paid (115) -
Adjustments for:
Investment income - (7)
Finance costs 151 192
Gain on bargain purchase - (504)
Depreciation of property, plant
& equipment 51 53
Amortisation of intangible assets 13 11
Amortisation of film distribution
library 3,371 3,431
Impairment of film distribution
library 399 578
Amortisation of producer relationships 597 135
Impairment of producer relationships 118 -
Share based payment expense 4 16
Loss on disposal of property,
plant & equipment - 40
Increase in inventories (20) (32)
Decrease in receivables 197 1,752
Decrease in payables (664) (2,007)
--------------------------------------- ----------- -----------
Cash generated from continuing
operations 3,231 4,070
Cash generated from discontinued
operations 606 739
--------------------------------------- ----------- -----------
Net cash generated from operating
activities 3,837 4,809
--------------------------------------- ----------- -----------
11. Investing activities
Year ended Year ended
31-Dec-2012 31-Dec-2011
GBP'000 GBP'000
Purchases of film distribution
library (4,562) (4,186)
Purchases of property, plant
& equipment (32) (125)
Purchases of intangible assets (35) (14)
Acquisition of subsidiary, net
of cash acquired:
* Consideration paid - (1,620)
* Cash acquired - 1,357
-------------------------------------- ----------- -----------
Net cash used in investing activities
in continuing operations (4,629) (4,588)
Net cash used in investing activities
in discontinued operations - (1,742)
-------------------------------------- ----------- -----------
Net cash used in investing activities (4,629) (6,330)
-------------------------------------- ----------- -----------
12. Financing activities
Year ended Year ended
31-Dec-2012 31-Dec-2011
GBP'000 GBP'000
Proceeds from issue of ordinary share
capital - 1,022
Proceeds from new borrowings 607 831
Repayments of bank loan (188) (50)
Repayments of borrowings (383) (200)
Investment income - 7
Interest paid (151) (221)
----------------------------------------------- ----------- -----------
Net cash (used in) / generated from
financing activities in continuing operations (115) 1,389
Net cash (used in) / generated from
financing activities in discontinued
operations (79) 78
----------------------------------------------- ----------- -----------
Net cash (used in) / generated from
financing activities (194) 1,467
----------------------------------------------- ----------- -----------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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