DCD.L Regulatory News (DCD)

9 Sep 2005 06:00

8 September 2005 Digital Classics Plc ("Digital Classics" or the "Company") Trading StatementIn the announcement of 27 June 2005, the Company noted that, should the US saleof Digital Classics' Michael Jackson TV documentary not close before the June2005 financial year end, then Digital Classics' performance in the year to June30 2005 would be below expectations whilst its performance in the followingyear (i.e. current financial year) would be correspondingly increased.Digital Classics can now confirm that the US sale of the Michael Jacksonprogramme did not complete in the previous financial year and performance inthe year to June 2005 will be below expectations. The Company is conducting anauction of these rights and is highly confident of completing the sale in thenext few weeks. As a result, expectations for the current financial year willbe revised and are likely to be substantially higher than previously expected.The improved expectations for 2006 are not only a result of the later thanexpected US sale of the Michael Jackson programme, but a number of otherfactors, including the holding back of selling rights to various titles whichwill now be sold in 2006 under Digital Classics' new, and soon-to-be launched,DVD label, to the greater benefit of the Company.In addition, one production forecast to complete in 2005 is now being finishedin 2006, while another smaller one has been held over as well.Chris Hunt, Chief Executive, said:"Although it is disappointing to fall below expectations for last year, it mustbe understood that it has been the choice of the Company to hold back varioussales in order to achieve greater benefits from them.Although the benefit willnot be felt in the year to 2005, it will be reflected in the results for thecurrent year."-Ends-Chris Hunt, Chief ExecutiveDigital Classics plcTel. 020 7636 1400Ben SimonsHansard CommunicationsTel. 020 7245 1100ENDDIGITAL CLASSICS PLC