Audioboom Grp. Regulatory News (BOOM)

25 Feb 2008 07:01

Boomerang Plus PLC25 February 2008 Date: 25 February 2008On behalf of: Boomerang Plus plc ("Boomerang", "the Company, or "the Group")Emabargoed until: 0700hrs Boomerang Plus plcInterim Results Boomerang Plus plc (AIM: BOOM.L), a profitable and vertically integrated,multi-genre, independent television production group based in Cardiff, Wales,today announces its inaugural set of unaudited interim results for the sixmonths ended 30 November 2007 since its listing on AIM. Financial Highlights • Turnover increased 112 per cent. to £10.75m (2006: £5.08m) • Operating profit before exceptional items increased 167 per cent. to £1.01m (2006: £0.38m) • Profit before tax and exceptional items increased 159 per cent. to £0.94m (2006: £0.36m) Operational Highlights • Successful admission to AIM following a £3 million placing • Significant recommissions won from Channel 4 and S4C in drama and extreme sports, expected to contribute over £4 million in revenues over the next two financial years • Production commenced of "Planed Plant", the two year children's television series for S4C also worth £4 million over the next two financial years. The contract was won in open tender against strong competition which included two of the UK's largest television production companies. • Continuing investment in production and post-production facilities, new media opportunities and creative development Huw Davies, Chief Executive Officer of Boomerang Plus, commented: "The six months to November 2007 has been transformational for the Groupfollowing its successful listing on AIM last year. These strong interim resultsreflect the organic growth and development of the Group. "We believe that we are well placed to build a substantial independenttelevision production company with quality earnings while adding keyacquisitions that consolidate our position in the market." - Ends - For further information, please contact: Boomerang Plus plc Via Redleaf CommunicationsHuw Davies, Chief ExecutiveMark Fenwick, Finance Director Evolution Securities Limited 020 7071 4300Tom Price/ Jeremy Ellis Redleaf Communications 020 7822 0200Emma Kane/ Sanna Lehtinen/ Anna Dunkin boomerang@redleafpr.com Notes to Editors: • The Group, founded in 1994, has extensive experience in producing content in a variety of genres, including youth programming, lifestyle, music, entertainment, children's programming, extreme sports and drama • The Group has good revenue visibility as a high proportion of its budgeted revenue is contracted with broadcasters • The market for independent television production companies in the Nations and Regions has grown following quotas from the regulator Ofcom, which require that, depending on the broadcaster, between 10 per cent. and 50 per cent. of qualifying programming hours must be sourced from outside the M25 boundary • Boomerang is ranked in the top five independent television production companies, by revenue, in the Nations and Regions according to the Broadcast Survey (Nations and Regions) 2007 • The Board's strategy is both to achieve strong organic growth by leveraging the Group's existing customer base coupled with strategic acquisitions, with a view to becoming a major supplier to UK networks looking to satisfy their Nations and Regions quotas • Boomerang is well placed to participate in the consolidation of independent production companies across the UK. Target companies which meet the acquisition criteria will have a strong track record, which will assist the Group to grow further, outside Wales Chairman's Statement I am pleased to present the Group's interim results for the six months ended 30November 2007. These are Boomerang's maiden results since the flotation on AIM in November 2007and the first period of trading for the enlarged Group, following theacquisitions of Mwnci and Apollo in 2006 and 2007. The Group has grownsubstantially over the period both organically and as a result of the recentacquisitions. Our continuing investment in production and post production facilities ensureswe have the latest technology and infrastructure to support the rapid expansionof the Group, enabling us to provide real value for money to our customers. Inaddition, operational synergies within the Group provide significant developmentbenefits to our customers and career progression for our staff. As a creative business, our staff are key to our success and we will continue toinvest substantially in their training and development rather than relying onsimply buying in talent. We believe that this continuing investment will improvethe industry's skills base, particularly in Wales, and provide for the long termsuccess of Boomerang. Organic growth and the acquisitions made to date have created a well diversifiedGroup, which is amongst the largest Nations and Regions television productioncompanies in the UK, producing across a wide variety of genres includingentertainment, drama, lifestyle, children's, sports and factual programming fortelevision. We will continue to invest in new markets such as talent management, through ourBoom Talent subsidiary and new media opportunities such as our "fso4.com"website which accompanies our Royal Television Society award winning "Freesportson 4" extreme sports show for Channel 4 which has just been recommissioned for aseventh series. Financial Review Following the acquisitions and investment in development in 2006 and 2007, thesix months to 30 November 2007 was a period of high growth with turnoverincreasing 112 per cent to £10.75m (2006: £5.08m) and operating profits beforeexceptional items increasing 167 per cent to £1.01m (2006: £0.38m). Exceptionalitems of £0.59m relate to the costs associated with listing on AIM in November2007. Profit before tax and the exceptional items was £0.94m compared with £0.36m forthe same period last year, representing an increase of 159 per cent. Profitbefore tax for the period after exceptional items was £0.34m (2006: £0.36m). The Group had net cash of £4.42m at 30 November 2007 (2006: £2.48m) reflectingproceeds of £2.3m from the IPO, net of expenses. Deferred consideration paymentsin respect of acquisitions in prior periods of £0.64m and debt repayments of£0.43m were also made during the period. In addition, the Group has incurredcapital expenditure of £0.26m over the six months to 30 November 2007principally on new studios and office space to service the tender won from S4Cto produce "Planed Plant", the daily children's continuity links. Programming All of our operating subsidiaries (Boomerang, Fflic, Alfresco and Apollo) havecontributed towards a strong portfolio of programmes for our broadcast customersduring the period across many genres. Highlights include: Drama The first series of both "Teulu", a 10 part 60 minute drama set around a doctorssurgery in Aberaeron and "2 Dy a Ni" a 13 part 30 minute teen drama set in afoster home in the Welsh valleys have both been filmed in the period for S4C andboth have been subsequently recommissioned. Apollo have filmed a 90 minute filmfor S4C entitled "Martha, Jac a Sianco" and are currently entering theproduction phase of the third series of their Rose d'Or award winning drama, "Con Passionate" which follows a Welsh male voice choir. Boomerang is also in production on a major slate of 12 one-off dramas for S4Cthe first of which, "Gari Tryfan" was transmitted recently. Comedy and Entertainment Alfresco produced "PC Leslie Wynne Show" and "Eleri Sion Show" for S4C duringthe period and is in production for the second series of "Codi Canu" whichfollows a number of Rugby supporter's choirs and a major travel quiz show forS4C. For E4, Boomerang produced "Mayhem Makers" which was part of E4's comedy strand,"Funny Cuts". Showcasing new on-screen talents plus a first time director theproject is currently in series development with E4/Channel 4. Lifestyle Fflic are currently producing another season of their high end, lifestyleprogramming for S4C; "04 Wal" which looks at contemporary and periodarchitecture and design, "Ty Cymreig" which investigates historical andvernacular house building and "Cwpwrdd Dillad" which looks at an individual'slife through their wardrobe. Alfresco have delivered another series of "Stories from the Street" for ITVWales which looks at communal and community buildings and this production hasbeen recommissioned for a further series. Sports Boomerang's Extreme Sports department completed the sixth series of the RoyalTelevision Society's award winning "Freesports on 4" for Channel 4 and has beenrecommissioned for a seventh series. The department is also currently inproduction of a third series of "Freeride" for ITV Wales and is producing anextreme sports series for S4C. A second series of "Rasus ar Garlam" which follows the Welsh point to pointseason is also in production for S4C. Music Boomerang is currently in production for another series of its award winninglate-night youth music show "Bandit" and the new spin off series, "Nodyn". Boomerang is also currently in production of a second series of "Unsigned" whichshowcases unsigned local bands for ITV Wales. Childrens On 29 October 2007, Boomerang commenced production of the two year, £4mcontract, for S4C's "Planed Plant" children's continuity links. This contractwas won in open tender against strong competition which included two of the UK'slargest production companies. This commission has strengthened further the reputation of the Group,principally through Fflic and Apollo, in children's programming. Seriescurrently in production include "Stwffio", "Hip New Sgip?" and "Dawnstastig".These along with a number of new series commissioned for 2008 make the Group oneof the largest children's producers in the UK. Events In July 2007 Boomerang produced the live broadcast of the "Royal WelshAgricultural Show" for the second year of a four year contract with S4C whichincluded over 60 hours of live TV broadcast, live web streaming and interactivecoverage. Post Production The acquisition last year of Mwnci, an editing services company based inCardiff, almost doubled the capacity of Boomerang's post production department.In addition a second, high end, dubbing suite has been added this year. Thesecutting edge facilities provide a quality finish to many of the productionsacross the Group and for external clients such as the BBC. Significantinvestment in post production services has enabled us to accelerate our trainingof new technical staff, improve the quality of our programmes and provide realvalue for money for our clients. Radio The Group continues to supply a diverse range of radio programmes for BBC RadioWales and Radio Cymru and content to Radio 2 and 4. Talent management Boom Talent was established in March 2007 as a management company representingactors and presenters in film, television, theatre, radio, corporate and voiceover work. Boom Talent has continued to build its presence during the period andis gaining a national reputation. New media With our new media partner, Cube Interactive, we continue to explore and developopportunities in new media including websites, web streaming and interactivemedia. Significant interactive contracts include content for the Royal Welsh,Urdd Eisteddfod and Planed Plant. In addition, during the period we launched the first stage of our "fso4.com"freesports website associated with our "Freesports on 4" extreme sports seriesfor Channel 4. Outlook Our position as a multi-genre independent television production company based inthe Nations & Regions makes us well placed to take advantage of the regulatedmarket in which we operate. Historically, a high proportion of the Group's programmes are recommissioned bythe Broadcasters and this trend is continuing, providing the Group withvisibility not often experienced elsewhere in the industry.We have goodvisibility over revenues for both the second half of the current financial yearand for the next financial year. Consolidation is continuing in the sector and we believe is unlikely to stop inthe near future. In addition to growing our business organically, we intend tocontinue to look for acquisition opportunities, in key genres and new media thatcan add value for shareholders. Roger MooreNon-Executive Chairman 22 February 2008 Condensed Consolidated Income StatementSix months ended 30 November 2007 (unaudited) Note Six months Six months Year ended ended 30 ended 30 November November 31 May 2007 2006 2007Consolidated income statement £'000 £'000 £'000 Revenue 10,748 5,080 10,459Cost of sales (8,921) (4,112) (8,343) Gross profit 1,827 968 2,116 Administrative expenses Other administrative expenses (838) (614) (1,311) Costs associated with AIM listing (592) - - Goodwill and other intangibles amortisation (19) - (56) Equity settled share based payments (13) - (15) Total administrative expenses (1,462) (614) (1,382)Other operating income 36 25 72Share of results of joint ventures 19 - 20Provision for impairment of investment in - (102)associate Operating profit 420 379 724 Investment income 6 15 38Finance costs (82) (33) (82) Profit before tax 344 361 680 Tax on profit on ordinary activities 2 (296) (125) (301) Profit for the period 48 236 379 Attributable to:Equity holders of the parent 48 216 345Minority interests - 20 34 48 236 379 Earnings per share 3Basic 0.71p 3.54p 5.65pDiluted 0.67p 3.40p 5.31p All activities derive from continuing operations. There have been no recognised gains and losses for the current or the priorfinancial year other than as stated in the income statement and, accordingly, noseparate statement of total recognised income and expense is presented. Condensed Consolidated Balance SheetAs at 30 November 2007 (unaudited) 30 30 November 31 November May 2007 2006 2007 £'000 £'000 £'000NON-CURRENT ASSETSGoodwill 2,060 1,309 2,060Other intangible assets 1,213 659 1,225Property, plant and equipment 1,649 1,298 1,339Investments 102 100 83 5,024 3,366 4,707 CURRENT ASSETSInventories 4 1 5Trade and other receivables 3,151 1,793 1,817Cash and cash equivalents 4,416 2,475 3,935 7,571 4,269 5,757 TOTAL ASSETS 12,595 7,635 10,464 CURRENT LIABILITIESTrade and other payables 3,362 2,193 3,934Interest-bearing loans and borrowings 261 361 421Deferred consideration 356 501 928Tax liabilities 643 384 423 4,622 3,439 5,706 NON-CURRENT LIABILITIESInterest-bearing loans and borrowings 450 421 272Other payables 33 32 44Deferred tax liabilities 81 123 81Deferred consideration 310 - 306 874 576 703 TOTAL LIABILITIES 5,496 4,015 6,409 NET ASSETS 7,099 3,620 4,055 Condensed Consolidated Balance SheetAs at 30 November 2007 (unaudited) 30 30 31 November November May 2007 2006 2007 £'000 £'000 £'000EQUITYShare capital 89 66 68Share premium account 3,931 969 969Merger reserve 1,217 744 1,217Retained earnings 1,862 1,657 1,801 Equity attributable to equity holders of the parent 7,099 3,436 4,055 TOTAL EQUITY 7,099 3,436 4,055 Minority interest - 184 - 7,099 3,620 4,055 These financial statements were approved by the Board of Directors onSigned on behalf of the Board of Directors H E Davies M W FenwickDirector Director Condensed Consolidated Cash Flow StatementAs at 30 November 2007 (unaudited) 30 30 31 November November May 2007 2006 2007 £'000 £'000 £'000 NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES (1,342) 378 2,379 INVESTING ACTIVITIESInterest received 6 15 38Purchase of property, plant and equipment (255) (19) (109)Disposal of subsidiary - - 109Acquisition of subsidiaries - net cash outflow arising on acquisition (2) (133) (106)Acquisition of subsidiaries - deferred consideration payments (643) (132) (530)Acquisition of associates - deferred consideration payments - - (34)Acquisition of intangible fixed assets - - (15)Purchase of programmes catalogue (6) - (11)Proceeds on disposal of property, plant and equipment 175 1 2 NET CASH USED IN INVESTING ACTIVITIES (725) (268) (656) FINANCING ACTIVITIESRepayments of obligations under finance leases (124) (54) (193)Repayment of borrowings (310) (5) (16)Proceeds on issue of preferred share capital 2,982 - -Preferred dividends paid - - (28)Grants received - 12 37 NET CASH USED IN FINANCING ACTIVITIES 2,548 (47) (200) NET INCREASE IN CASH AND CASH EQUIVALENTS 481 63 1,523 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 3,935 2,412 2,412 CASH AND CASH EQUIVALENTS AT END OF YEAR 4,416 2,475 3,935 Condensed Consolidated Statement of Changes in EquitySix months ended 30 November 2007 (unaudited) Share Share premium Merger Retained Minority Total capital account reserve earnings Total interest equity £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 1 June 2006 66 969 744 1,441 3,220 - 3,220Profit for the financial period - - - 216 216 20 236Acquisition of minority - - - - - 164 164interest Balance at 30 November 2006 66 969 744 1,657 3,436 184 3,620 Profit for the financial period - - - 129 129 14 143New shares issued 2 - 473 - 475 - 475Equity-settled share-based 15 15payments - - - 15 -Disposal of minority interest - - - - - (198) (198) Balance at 31 May 2007 68 969 1,217 1,801 4,055 - 4,055 Profit for the financial period - - - 48 48 - 48New shares issued 21 2,962 - - 2,983 - 2,983Equity-settled share-based payments - - - 13 13 - 13 Balance at 30 November 2007 89 3,931 1,217 1,862 7,099 - 7,099 The Group has taken advantage of section 131 of the Companies Act 1985 and sothe excess over the nominal value of shares issued other than for cash has beenallocated to the merger reserve. 1. BASIS OF PREPARATION AND ACCOUNTING The comparative figures for the financial year ended 31 May 2007 are extractedfrom the Group's statutory financial statements for that financial year. Thosefinancial statements have been reported on by the Group's auditors and deliveredto the Registrar of Companies. The report of the auditors was unqualified anddid not contain a statement under section 237 (2) or (3) of the Companies Act1985. Copies of the Annual Report for 2007 are available from the Company's registeredoffice by applying to the Company Secretary, Mark Fenwick. The interim results for the six months ended 30 November 2007 and 30 November2006 have not been audited or reviewed by the auditors. The interim results havebeen prepared on a basis consistent with the accounting policies disclosed inthe Group's annual report for the year ended 31 May 2007. The financialinformation set out above does not constitute full financial statements asdefined by section 240 of the Companies Act 1985. In the current financial year the Group will adopt International FinancialReporting Standard 7 "Financial instruments: Disclosures" IFRS 7 for the firsttime. As IFRS 7 is a disclosure standard, there is no impact on the change inaccounting policy on the half-yearly financial report. Full details of thechange will be disclosed in our annual report for the year ended 31 May 2008. 2. TAX Taxation for the six month period is charged at the best estimate of the averageannual effective income tax rate expected for the full year, applied to thepre-tax income of the six month period. 30 November 30 November 31 May 2007 2006 2007 £,000 £'000 £'000 UK taxation at standard rate 220 125 343Deferred taxation 76 - (42) 296 125 301 3. EARNINGS PER SHARE 30 November 30 November 31 May 2007 2006 2007 Profit for the year (£'000) 48 216 345Weighted average number of ordinary shares 6,763,226 6,093,190 6,104,348Dilutive weighted average number of shares 7,193,869 6,345,287 6,496,508Earnings per ordinary share - basic 0.71p 3.54p 5.65pEarnings per ordinary share - dilutive 0.67p 3.40p 5.31p 4. SHARE CAPITAL During the period the Group issued 2,389,353 1p ordinary shares for netconsideration of £2,983,000. 5. NOTES TO THE CONDENSED CONSOLIDATED CASH FLOW STATEMENT 30 November 30 November 31 May 2007 2006 2007 £,000 £'000 £'000 Profit from operations 420 379 724Adjustment for:Impairment of non current asset investment - - 102Amortisation of intangible fixed assets 22 22 60Depreciation of property, plant and equipment 222 161 368Profit on property, plant and equipment disposals - - (2)Government grants (10) (7) (16)Results of joint venture (19) - (14)Equity-settled share-based payments 13 - 15 Operating cash flows before movement in working capital 648 555 1,237 (Increase)/decrease in receivables (1,335) (117) 378(Decrease)/increase in payables (574) 148 1,251Decrease/(increase) in inventory 1 - (4) Cash generated by operations (1,260) 586 2,862 Income taxes paid - (175) (409)Interest paid (82) (33) (74) Net cash (outflow)/inflow from operating activities (1,342) 378 2,379 This information is provided by RNS The company news service from the London Stock Exchange