Brokers Note4 Mar 2010 10:03
Today’s results for the six months to 31st December 2009 from Intandem Films cover a period of significant corporate developments - the fruits of which will be yielded in the second half and, more significantly, in the year to 30thJune 2011. We are not revising our forecasts but now believe that the 2011 estimates may prove far too conservative and consider that an upwards revision to next year’s estimates is highly likely. Intandem Films* Interims - high probability of beating target price of 6.84p Buy at 2.375p
Our forecasts are based on low-ball film budgets and sales assumptions of Intandem achieving a deal flow of 5 - 6 modest budget (average of £5 million) films this year rising to 8 in 2011. There is always the chance with the company’s contacts in the film world for much larger projects, which given the operational leverage could transform the P&L. We understand that there are two film projects underway with transformational potential. Your Perfect Angel, is a $25 million romantic comedy and Blown a $15 million thriller with Guy Pearce and Samuel Jackson. If both projects are successful, we believe that pre-tax profits for 2011 could easily reach £1 million, which would equate to earnings per share of around 1.2p but at this stage, we are not moving our forecasts – but merely flag the strong possibility that we could do so.