RNS Number:8656C
Entertainment Rights PLC
13 September 2004
Entertainment Rights Plc ("ER")
Interim Results for the six months ended 30 June 2004
and
Announcement of Major Acquisition
Highlights
* Turnover increased by 21% to #9.1m (2003: #7.5m)*
* EBITDA increased by 85% to #2.4m (2003: #1.3m)
* Operating profit increased to #0.3m (2003: #1.1m loss)
* Underlying Profit before tax #0.4m (2003: #0.2m loss)
* Major earnings enhancing acquisition of Tell-Tale Productions Ltd
("Tell-Tale"), creators and producers of "The Tweenies", for #3.1m
* Integration of Filmation Library acquired in April for #11.1m ahead of
schedule
* Group net debt reduced by 25% to #12.1m (December 2003: #16.1m)
* Underlying earnings per share increased to 0.14p (2003: 0.06p loss)
* Adjusted to a like-for-like basis, to exclude turnover from Barbie(R)
licensing which ceased in December 2003.
Rod Bransgrove, Chairman, Entertainment Rights Plc, commented:
"These results demonstrate ER's continuing ability to grow the business both
organically and through strategic acquisitions. I am delighted to be able to
announce today the purchase of Tell-Tale Productions Ltd, creator, producer and
royalty recipient of the award-winning brand, The Tweenies. Tell-Tale is
renowned throughout the international media industry as one of the most prolific
creative talent resources in the kids TV business. This is a fantastic
acquisition for the Group and comes shortly after the transformational purchase
of the US Filmation Library. ER is a company that is not standing still and we
are committed to growing the business to further heights. These acquisitions,
combined with our well balanced diversified portfolio of rights and our ability
to forge strong worldwide commercial relationships, position ER to deliver clear
and substantial benefits to shareholders in the second half of the year -
consolidating our position as a leading global children's and family media
company."
Enquiries:
Entertainment Rights Plc
Mike Heap, CEO 0208 762 6200
Elizabeth Gaines, Finance Director
Julie King, Group PR Manager
Bell Pottinger Corporate & Financial
David Rydell/Nick Lambert/Sarah Landgrebe 0207 861 3232
A full presentation and review of the Group's financial results for analysts
will be held today at 11.15am at Bell Pottinger Corporate & Financial, Holborn
Gate, 330 High Holborn, London WC1. For further details contact David Rydell
07798 646 021.
CHAIRMAN'S STATEMENT
The first half of the financial year has been a significant period of growth for
ER and we have further strengthened our position as a leading global family
media company.
In April 2004, the Group successfully acquired, for #11.1m, the Filmation
Library consisting of over 500 hours of quality animation, including He-Man and
the Masters of the Universe, She-Ra, Bill Cosby's Fat Albert and the Cosby Kids,
Zorro and The Lone Ranger. This transforming acquisition enhances our content
offering of wholly owned characters and brands and significantly strengthens
ER's presence in the US marketplace. I am pleased to report that the integration
of the Filmation Library is progressing very well and is ahead of schedule.
The Filmation acquisition was supported with an equity fund raising of #15.1m
(net of fund raising and acquisition expenses), the additional capital enabled
the Group to meet increased demand from broadcasters for our programming.
Notably this was evidenced by recent new commissions for Postman Pat(R) and
Little Red Tractor(TM) from the BBC.
In line with historical performance, the Group continues to grow its key
performance indicators and to be cash generative with a focus on improving
margins as the portfolio of owned characters develops. EBITDA leapt 85% to #2.4m
and underlying profit was #0.4m compared to a loss last year of #0.2m.
6 Months ended 30 June
#m 2004 2003 (1)
Total Turnover (2) 9.1 11.4
----------- ----------
EBITDA (3) 2.4 1.3
----------- ----------
Operating profit/(loss) 0.3 (1.1)
----------- ----------
Underlying profit/(loss) before tax (4) 0.4 (0.2)
----------- ----------
Loss after tax (5) (0.2) (1.5)
----------- ----------
Underlying EPS (6) 0.14p (0.06)p
----------- ----------
Basic EPS (0.06)p (0.57)p
----------- ----------
Net cash inflow (7) 3.6 1.3
----------- ----------
1) 2003 Financial results restated to reflect accounting policy changes adopted
at December 2003
2) On a like-for-like basis #9.1m (2003 #7.5m)
3) Total operating profit before amortisation of tangible and intangible
assets
4) Underlying profit before amortisation of goodwill and exceptional items
5) On a like-for-like basis #0.2m loss: (2003 #1.7m loss)
6) Underlying profit after tax before amortisation of goodwill and exceptional
items
7) Net cash inflow from operating activities
With the Filmation acquisition, new licensing agreements and good prospects
within the media industry generally, we have a number of opportunities for
future growth.
I am delighted to announce today the acquisition of Tell-Tale Productions Ltd
for #3.1m (including assumption of debt and other liabilities). ER has acquired
100% of the issued share capital of Tell-Tale Productions Ltd and its
subsidiaries. Tell-Tale is renowned throughout the international media industry
as one of the most prolific creative talent resources in the kids TV business
and as the creators and producers of The Tweenies. We expect the acquisition of
Tell-Tale to be earnings enhancing in the second half of 2004 and a significant
asset for the Group in the long term.
Entertainment Rights is a company that is not standing still and we are
committed to growing the business for the benefit of shareholders. The
acquisitions of Filmation and Tell-Tale in 2004 combined with our well-balanced
diversified portfolio of rights and our ability to forge strong worldwide
commercial relationships, positions ER to deliver clear and substantial benefits
to shareholders in the future - consolidating our position as a leading global
children's and family media company.
Employees
I would like to take this opportunity to thank all our staff for their diligence
and hard work in ensuring the Company delivered another strong set of results.
This year's two major acquisitions come on the back of a fifth consecutive year
of record results for the Company, confirming the outstandingly high quality of
the executive management team.
Board Changes
Craig Hemmings has today stepped down from his role as Executive Director. Craig
remains on the Board as a Non-Executive Director and we thank him for his
continued hard work and support of the Group.
We look forward to the future with confidence.
Rod Bransgrove
Chairman
CHIEF EXECUTIVE'S REVIEW
OPERATING OVERVIEW
Entertainment Rights' strategy is to create value for its shareholders through
the development of a balanced portfolio of children's and family characters and
brands on a global basis. This strategy has been underpinned in the past six
months with strong organic growth across all divisions and the acquisition of
the Filmation Library. This is further enhanced by the acquisition of Tell-Tale
announced today.
Television and Production
Television and Production remains a core activity for the Company and is
supported by the continuing global trend for increased television penetration,
particularly in the digital sector and the growth of new channels. Over 400
dedicated children's television channels exist across the world. ER's broad
portfolio of programming provides not only core earnings but a strong broadcast
platform to build our global brands via home entertainment and licensing and
merchandising.
We have strengthened our position in this area by increasing our portfolio of
high quality children's and family programming from 50 hours in 1999 to over
1700 hours to date (excluding the acquisition of Tell-Tale announced today). ER
is the second largest independent owner of children's and family intellectual
property in the UK.
Owned properties have performed exceptionally well. Basil Brush(R) is now making
his presence felt internationally. Having established his celebrity status in
the UK, he can now be viewed in over 50 countries worldwide including, Germany
(Disney, KIKA and ZDF), Australia (ABC) and New Zealand (TV3). There are now 39
x 30' completed episodes of The Basil Brush Show, with a further 13 x 30'
episodes commissioned by the BBC for broadcast in 2005.
The highly acclaimed brand new series of Postman Pat(R) has launched on BBC2 and
CBeebies digital channel this September. Ahead of its initial transmission the
show secured a further commission from the BBC, taking the total amount of
programming now under license through to 2010 to 86 episodes ensuring strong
visibility of earnings. The new action filled Postman Pat(R) series will be
launched to international broadcasters at MIPCOM this October.
Following Little Red Tractor's television debut, the BBC doubled its commitment
to the series taking the total amount of programming to 52 x 10' episodes. The
series to date is watched daily by over 500,000 viewers with a 32% audience
share of children. Internationally the show is already proving to be a hit with
sales to over 120 countries worldwide.
We continue to represent a broad spectrum of quality third-party programming,
including on behalf of Mattel the Barbie(R) feature film franchise, which we
have sold to over 100 countries worldwide. For the BBC we represent the ratings
winning drama Tracy Beaker by top selling children's author Jacqueline Wilson;
for Granada, the hit CiTV comedy My Parents are Aliens and on behalf of Hasbro
we represent the hugely popular boys action series' Transformers and Duel
Masters for which we have secured prime broadcast slots in over 90 countries
worldwide.
Home Entertainment
DVD sales continue to drive the home entertainment market. DVD penetration has
reached more than 50% of homes in the UK and over 70% of homes in the US,
however videocassette sales of children's entertainment still outnumber DVD
sales by two to one. With the high repeatability of product in the kids' home
entertainment market and the shift from DVD rental to purchase, a vast market
opportunity exists for the provision of children's entertainment on both DVD and
VHS. The cheaper production costs, and higher retail price of DVDs, offer higher
margin earnings opportunities for both our owned and third party brands.
In Q4 2004, we have a strong release schedule including the fourth Barbie(R)
feature film, Barbie(TM) as the Princess and the Pauper (cumulatively, previous
releases have sold over nine million units), two new Postman Pat(R) releases
(over 200,000 units of the previous three titles have been sold to date) and two
Little Red Tractor(TM) releases.
Licensing & Merchandising
Licensing and Merchandising remains a core focus for the Company over the coming
year and we are committed to growing our share of what is an estimated global
market of $48bn per annum for character and brand licensing.
I am pleased to confirm that Autumn & Christmas 2004 will see our strongest ever
licensed product release schedule. This Autumn will see 50 leading licensees
launching over 100 exciting and innovative new product lines for Postman Pat(R).
Merchandise will be available at all major High Street retailers with promotions
in Woolworth's, Argos, Toys R Us and Marks & Spencer.
This September sees the launch of a range of Little Red Tractor(TM) licensed
merchandise, including toys from Corgi, books from Penguin and puzzles from
Ravensburger, supported by video and DVD releases from Right Entertainment.
Basil Brush(R) continues to appear as a regular guest presenter for the BBC and
we have further developed his potential for live events this year with his first
ever starring role in pantomime for Christmas 2004, as well as appearances
alongside Postman Pat(R) at holiday centres this Autumn.
This year the Group secured the UK merchandising, licensing and home
entertainment rights to Clifford's(TM) Puppy Days, a new fully animated series
produced by Scholastic Entertainment for the BBC. This brand extension will
allow ER to further develop the CliffordTM brand.
Acquisition of Filmation Library and Tell-Tale Productions Ltd
The integration of the Filmation Library acquired in April 2004 is ahead of
schedule and has already exceeded income expectations. Filmation's catalogue
comprises some 500 hours of high quality animation and includes rights to over
50 classic US icon characters and brands including He-Man and the Masters of the
Universe and She- Ra. These US icons as well as Bill Cosby's Fat Albert and the
Cosby Kids, The Archies and The Lone Ranger offer a gateway to the North
American market. This library has already elicited significant interest for
future developments and as such we are confident that Filmation will make an
important contribution to the Group's future growth.
ER has added to its prestigious stable of characters and brands with the
acquisition announced today of Tell-Tale Productions Ltd and its subsidiaries.
Tell-Tale, the creator and producer of the BBC's #350m global brand, The
Tweenies, is renowned throughout the international media industry as one of the
most prolific creative talent resources in the kids TV business. The Tweenies is
an international success story airing in over 60 countries worldwide including
Nickelodeon and Noggin in the USA (reaching over 80m homes in the USA) and is
accompanied by a US consumer products roll-out managed by MTV Networks.
FINANCIAL REVIEW
Financially, the Group's performance was strong with higher profitability and
strong operating cash flow.
Turnover for the period is #9.1m, a decrease of 20% on last year due to the
Barbie(R) (non-doll) licensing contract ending in December 2003. Excluding the
impact of this, on a like-for-like basis turnover is up 21%. Operating profit
has increased from a loss of #1.1m to a profit of #0.3m. The key to this success
has been the focus on improving margins and the mix of revenue to higher margin
owned properties. EBITDA leapt 85% to #2.4m and underlying profit was #0.4m
compared to a loss last year of #0.2m. Net assets have increased by 46% in the
six months to June 2004 to #51.6m (31 December 2003 #35.4m)
In 2003, the Group entered into an interest rate swap to hedge its interest rate
exposure on its term loan facility. The notional principle amount of the swap is
#9m, which is fixed at 3.99%, reducing the Group's exposure to current and
future interest rate increases.
The Group continues to show no taxation charge, as it continues to utilise the
#7m of tax losses brought forward.
On 29 April 2004, ER completed the acquisition of the Filmation Library for
#11.1m. This was financed by a Placing and Open Offer which raised #15.1m (net
of fund raising and acquisition expenses). The surplus enabled the Group to
accelerate its investment in programming to meet the demands of broadcasters,
with new programming for Basil Brush(R), Postman Pat(R) and Little Red
Tractor(TM).
Operating cash inflow was #3.6m for the first half, an increase of #2.3m from
the previous year, which supported the Group's ongoing investment in new
programming.
Net debt for the Group reduced by 25% since the year-end from #16.1m to #12.1m.
This is due to the strong operating cashflow as well as the fund raising.
OUTLOOK
The Group believes that its respected brand building capabilities and expertise
in international television distribution, licensing and merchandising, home
entertainment and music exploitation, Filmation's extensive portfolio of
characters, coupled with Tell-Tale's creative track record, ideally positions
the enlarged Group to create and exploit the next worldwide kids phenomenon.
Television Distribution will continue to grow, benefiting from the economic
climate and the plethora of new channels and formats, Home Entertainment will
grow aided by increasing DVD penetration and ER's strong release schedule in the
second half of the year. In line with Television Distribution and Home
Entertainment we continue to experience sustainable growth in our Consumer
Products Division.
I am extremely confident about the ongoing prospects for the Company and believe
that there are many more significant developments ahead.
Mike Heap
Chief Executive Officer
CONSOLIDATED UNAUDITED PROFIT AND LOSS ACCOUNT
for the 6 months ended 30 June 2004
Restated
Unaudited Unaudited Audited
6 months 6 months Year
to 30 to 30 to 31
June June Dec
2004 2003 2003
Notes #'000 #'000 #'000
Turnover 9,074 11,391 29,453
Cost of sales (5,423) (8,120) (20,626)
--------- -------- --------
Gross profit 3,651 3,271 8,827
Administrative expenses (3,350) (4,375) (10,561)
Other operating income - - 2,360
--------- -------- --------
EBITDA
Depreciation and amortisation
(excluding 2,359 1,273 7,897
goodwill) (1,470) (1,385) (3,421)
Goodwill amortisation (588) (992) (3,850)
--------- -------- --------
Operating profit/(loss) 301 (1,104) 626
Interest receivable and similar
income 59 - 24
Interest payable and similar charges (538) (401) (1,067)
--------- -------- --------
Loss on ordinary activities before
taxation (178) (1,505) (417)
Taxation on ordinary activities 3 1 - -
--------- -------- --------
Retained loss for the period (177) (1,505) (417)
--------- -------- --------
Earnings/(loss) per ordinary share
(pence)
Basic and diluted loss per ordinary
share 4 (0.06p) (0.57p) (0.16p)
Underlying earnings/(loss) per
ordinary share* 4 0.14p (0.06p) 0.59p
* - Underlying EPS is calculated on earnings excluding goodwill amortisation and
exceptionals.
The Group has no recognised gains or losses during the current or previous
period other than those set out above, and therefore no separate statement of
total recognised gains and losses has been presented.
CONSOLIDATED UNAUDITED BALANCE SHEET AS AT 30 JUNE 2004
Restated
Unaudited Unaudited Audited
6 months 6 months Year
Note to 30 to 30 to 31
June June Dec
2004 2003 2003
#'000 #'000 #'000
Fixed assets
Goodwill 8 19,437 22,758 19,900
Investment in programmes 21,804 19,160 19,788
Trademarks and copyrights 8 21,619 10,036 9,760
--------- -------- --------
Intangibles 62,860 51,954 49,448
Tangible assets 1,030 1,883 999
--------- -------- --------
63,890 53,837 50,447
--------- -------- --------
Current assets
Programme development costs 1,056 689 719
Debtors 10,034 10,527 17,561
Cash at bank and in hand 3,464 1,389 1,453
--------- -------- --------
14,554 12,605 19,733
Creditors: amounts falling due
within one year (11,989) (21,507) (19,073)
--------- -------- --------
Net current assets/(liabilities) 2,565 (8,902) 660
--------- -------- --------
Total assets less current
liabilities 66,455 44,935 51,107
Creditors: amounts falling due after
more than one
year (13,523) (9,596) (14,312)
--------- -------- --------
Provisions for liabilities and
charges (1,372) (1,031) (1,399)
--------- -------- --------
Net assets 51,560 34,308 35,396
--------- -------- --------
Capital and reserves
Share capital 9 20,637 13,117 13,117
Share premium 9 33,176 24,355 24,355
Merger reserve 16,470 16,470 16,470
Profit and loss account (18,723) (19,634) (18,546)
--------- -------- --------
Equity shareholders' funds 51,560 34,308 35,396
--------- -------- --------
CONSOLIDATED UNAUDITED CASH FLOW STATEMENT
FOR THE 6 MONTHS ENDED 30 JUNE 2004
Unaudited Unaudited Audited
6 months 6 months Year
to 30 to 30 to 31
June June Dec
2004 2003 2003
Notes #'000 #'000 #'000
Net cash inflow from operating
activities 6 3,649 1,336 3,303
--------- -------- --------
Returns on investments and servicing
of finance
Interest received 25 - 24
Interest paid (498) (355) (890)
--------- -------- --------
Net cash outflow from investments and
servicing of finance (473) (355) (866)
--------- -------- --------
Taxation
UK corporation tax received/(paid) 1 - (182)
--------- -------- --------
Capital expenditure and financial
investment
Payments to acquire intangible fixed
assets (15,395) (2,496) (6,708)
Payments to acquire tangible fixed
assets (62) (61) (136)
Receipts from sale of tangible fixed
assets 2 - 781
--------- -------- --------
Net cash outflow from investing
activities (15,455) (2,557) (6,063)
--------- -------- --------
Net cash outflow before management
of liquid resources and financing (12,278) (1,576) (3,808)
--------- -------- --------
Financing
Term loan drawn down falling due
within the year 11,111 1,446 450
Term loan drawn down falling due
after more than 1 year - - 4,050
Capital element of finance lease
rental payments (35) (72) (133)
Repayment of borrowings (11,737) (22) (1,168)
Proceeds from fundraising 16,921 - -
Share issuance costs (580) - -
--------- -------- --------
Net cash inflow from financing 15,680 1,352 3,199
--------- -------- --------
--------- -------- --------
Increase/(decrease) in cash in the
period/year 7 3,402 (224) (609)
--------- -------- --------
NOTES TO THE INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2004
1. Basis Of Preparation
The financial information relating to the half-years' ended 30 June 2004 and 30
June 2003 is unaudited and does not constitute the statutory accounts. The
comparative figures for the financial year ended 31 December 2003 are not the
Company's statutory accounts for that financial year. Those accounts have been
reported on by KPMG Audit Plc and delivered to the Registrar of Companies. The
report of the auditors was unqualified and did not contain a statement under
section 237 (2) or (3) of the Companies Act 1985.
The interim financial statements have been prepared under the historic cost
convention and on the basis of the accounting policies set out in the Company's
2003 statutory accounts.
In accordance with the principles of FRS18 Accounting policies, the Directors
have reviewed their accounting policies and implemented those most appropriate
to the Group's operations. In the year ended 31 December 2003, the Group adopted
the changes to Financial Reporting Standard 5 ("Revenue Recognition") in respect
of the recognition of Television Distribution revenue. The policy was adopted to
reflect the definition of performance within Financial Reporting Standard 5,
compliance with best practice in the entertainment industry and adoption of
accounting policies most appropriate to the business. The practical effect of
the revised policy is that Television Distribution revenue is now recognised
when delivery of materials to the broadcaster has occurred.
As a result, for the six months ended 30 June 2003, turnover is #1,006,000 lower
and cost of sales #673,000 lower and profit for the financial period is #333,000
lower than previously reported. The resulting impact on debtors as at 30 June
2003 is #2,595,000 increase, creditors #5,579,000 increase, investment in
programmes #221,000 increase and a reduction in brought forward reserves of
#2,430,000 as at 1 January 2003.
Copies of the Interim Report will be sent to all shareholders and further copies
of these and the 2003 Statutory Accounts may be obtained from the Company's
registered office, 58-60 Berners Street, London, W1T 3JS.
The Interim Report was approved by the Directors on 10 September 2004.
2. Exceptionals
Restated
Unaudited Unaudited Audited
6 months 6 months Year
to June to 30 to 31 Dec
2004 June 2003 2003
#'000 #'000 #'000
Aborted acquisition costs (25) (298) (430)
Surrender of lease - (54) (54)
Licensing compensation - - 2,360
payment
Licensing goodwill write-off - - (1,874)
-------- -------- ---------
(25) (352) 2
-------- -------- ---------
3. Taxation
Unaudited Restated Audited
6 months 6 months Year
to 30 June to 30 June to 31 Dec
2004 2003 2003
(a) Analysis of taxation charged in the
period #'000 #'000 #'000
Current tax:
Foreign tax current year charge - - 152
UK tax prior year (credit)/charge (1) 200 101
Foreign tax prior year charge - - 192
--------- -------- --------
Total current tax (1) 200 445
Deferred tax:
Origination and reversal of timing
differences - - 168
Recognition of tax losses - - (613)
Prior year differences - (200) -
--------- -------- --------
Total deferred tax - (200) (445)
--------- -------- --------
Tax (credit)/charge on loss on ordinary
activities (1) - -
--------- -------- --------
4. Earnings/(loss) per ordinary share
The calculation of basic loss per ordinary share is based on the consolidated
loss after tax for the period of #177,000 (June 2003 restated - #1,505,000
loss) and on 312,481,687 (June 2003 - 262,345,389), being the weighted average
number of ordinary shares in issue during the period.
In view of the loss for the period, the share options are anti-dilutive, and
therefore a diluted earnings per share is not presented.
Reconciliation of the earnings and weighted average number of shares used in
the calculations are set out below:
Restated
Unaudited Unaudited Audited
6 months 6 months Year
to 30 June to 30 June to 31 Dec
2004 2003 2003
#'000 #'000 #'000
Loss on ordinary activities after
taxation (177) (1,505) (417)
Amortisation of goodwill 588 992 1,976
Exceptional items (see note 2) 25 352 (2)
---------- --------- ---------
Underlying earnings/(loss) 436 (161) 1,557
---------- --------- ---------
Weighted average number of shares in
issue 312,481,687 262,345,389 262,345,389
Basic loss per share (pence) (0.06p) (0.57p) (0.16p)
Goodwill amortisation per share 0.19p 0.38p 0.75p
Exceptional items per share 0.01p 0.13p -
---------- --------- ---------
Underlying earnings/(loss) per share
(pence) 0.14p (0.06p) 0.59p
---------- --------- ---------
5. Borrowing Commitments
Details of the committed borrowing facilities as at 30 June 2004 and the
repayment terms are as follows:
Working Capital
Term loan facility Total
#'000 #'000 #'000
Within 1 year 1,924 - 1,924
Greater than 1 but not more
than 2 years 2,125 - 2,125
Between 2 and 5 years 7,395 - 7,395
Greater than 5 years 4,117 - 4,117
--------- --------- ---------
Borrowed 30 June 2004 15,561 - 15,561
Unutilised amount 500 5,500 6,000
--------- --------- ---------
16,061 5,500 21,561
--------- --------- ---------
The interest rate on the existing #16.1 million term loan and working capital
facility remains at floating LIBOR + 1.75%.
6. Reconciliation of operating profit/(loss) to net cash inflow from operating
activities
Restated
Unaudited Unaudited Audited
6 months 6 months Year
to 30 to 30 to 31 Dec
June June
2004 2003 2003
#000 #000 #000
Operating profit/(loss) 301 (1,104) 626
Depreciation and amortisation:
- tangible fixed assets 141 155 402
- intangible fixed assets 1,917 2,222 4,995
Exceptional goodwill write-off - - 1,874
(Gain)/loss on disposal of tangible fixed
assets (2) 4 (21)
Increase in programme development costs (259) (8) (851)
Decrease/(increase) in debtors and related
items 7,286 (409) (6,088)
(Decrease)/increase in creditors and
related items
(5,735) 476 2,366
--------- --------- ----------
3,649 1,336 3,303
--------- --------- ----------
7. Analysis of changes in net debt
At 1 January Non-Cash Foreign At 30
2004 Changes Exchange Cashflow June 2004
#'000 #'000 #'000 #'000 #'000
Cash at bank
and in hand 1,453 - 34 1,977 3,464
Bank
overdrafts (1,425) - - 1,425 -
---------- -------- --------- -------- --------
28 - 34 3,402 3,464
Debt less than 1 year:
- Term loan (1,750) (675) - 626 (1,799)
---------- -------- --------- -------- --------
(1,750) (675) - 626 (1,799)
Debt greater than one
year:
- Term loan (14,300) 663 - - (13,637)
---------- -------- --------- -------- --------
(14,300) 663 - (13,637)
Finance leases (124) - - 35 (89)
---------- -------- --------- -------- --------
(16,146) (12) 34 4,063 (12,061)
---------- -------- --------- -------- --------
8. Acquisitions
On 26 April 2004 the Company acquired the Filmation Library for consideration
totalling #11.1 million and acquisition costs capitalised of #1.2 million. The
fair value of the assets acquired is deemed by the directors to be #12.2 million
capitalised as copyright, resulting in goodwill of #0.1 million.
Fair Value
Book Value Adjustment Fair Value
#'000 #'000 #'000
Fixed assets
Trademarks and copyrights - 12,222 12,222
Goodwill 125 125
-------- --------- -------
Net assets - 12,347 12,347
-------- --------- -------
Trading for the period from acquisition to 30 June 2004 for the Filmation
library is not material and therefore there is no separate disclosure of this in
the profit and loss account.
9. Share capital
On 29 April 2004 150,408,893 ordinary shares of 5p were issued for consideration
of #16.9 million with a nominal value of #7.5 million, as part of a placing and
open offer to fund the acquisition of the Filmation Library and accelerated
capital investment in owned programming. This resulted in an increase of the
share premium account from #24.4 million to #33.2 million after accounting for
share issuance costs of #580,000.
10. Post Balance Sheet Event
On 10 September 2004, the company acquired 100% of the share capital of
Tell-Tale Productions Limited and its subsidiary companies for a total of #3.1
million in cash (including assumption of debt and other liabilities). The
acquisition has been funded through new bank debt facilities provided by the
Bank of Scotland.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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