27 May 2016 16:07
DCD Media plc
("DCD Media" or the "Company")
Business Update
Notification of Results
Business Update
Ahead of publishing its results for the year ended 31 December 2015 on 2 June 2016, DCD Media announces the reduction of its production activities to focus on its two key franchises, September Films' 'Penn and Teller: Fool Us in Vegas' currently delivering season two to the CW Network in America, and Rize USA's 'Got What it Takes?', produced for CBBC in the UK.
Results for the year to 31 December 2015 remain in line with directors' expectations. However, following a period of assessment and review, and as a consequence of continuing challenging trading conditions in the production division that have resulted in a poor uptake of other commissions, the directors have decided to cease development activities within that division with immediate effect. As a result, there will be a number of redundancies in the production division.
Additionally, the Board announces that DCD Publishing is being absorbed within DCD Rights and will no longer operate as a separate business within DCD Media. This will allow management to continue its focus on building scale in the distribution and rights division, which continues to increase its turnover and profitability, expanding its catalogue and making some large sales to major international Broadcasters.
Outstanding Management Recharges
As previously announced, certain directors' and accounting services are provided by the Company's parent, Timeweave Ltd ("Timeweave") and recharged to DCD Media in line with previous years. At 31 December 2015, liability for these services amounted to £0.4m and a further £0.2m of recovered VAT was owed to Timeweave. Management expects that further charges of £0.2m will have accrued by 31 December 2016.
While the directors continue to carefully manage cash flows, it is unlikely that these amounts can be settled in the short term and as consequence, DCD Media and Timeweave are looking at ways to formalise the debt. Further information will be released shortly.
For further information please contact:
DCD Media Plc
Angelica Tziotis, Press and Communications
Tel: +44 (0)20 3869 0190
ir@dcdmedia.co.uk
finnCap
Stuart Andrews / Carl Holmes
Tel: +44 (0)20 7220 0500