GUSC.L Regulatory News (GUSC)

Talent Group plc ("Talent", "Company" or the "Group") Final results for the year ended 30 September 2013 Chairman's Statement I am pleased to present the Company's results for the year ended 30 September2013. Group turnover was £677,000 (2012 - £1,041,000), gross profit was £218,000(2012 - £290,000), administrative expenses were £465,000 (2012 - £494,000) and,after taxation, we have a retained loss for the year of £289,000 (2012 - £245,000). Whilst the results for the full year are again disappointing, they perhaps donot do justice to the full level of underlying activity. However, they do giverise to concern regarding the future sustainability of the Group in its currentform, and consequently publication of these results has been delayed. We hopeto be in a position to make a further announcement regarding these in the nearfuture. As a result of this delay, trading of the Company's shares on AIM hasbeen suspended. Talent Television South, meanwhile, had a good 2012/13 financial year, withturnover in excess of half a million pounds. Productions during the yearincluded a third series of crime documentaries for The Crime and InvestigationChannel, two further documentaries on Broadmoor and Frankie Fraser for the samechannel, and a number of corporate and commercial productions. Since the yearend, Talent South has completed a documentary - Tina Malone: Pregnant at 50 -for The Discovery Channel, four one-hour documentaries for the new digitalchannel, London Live, and been commissioned to produce sixty half-hourprogrammes of factual entertainment content for the international sports starsnetwork Trace TV. Talent Television (which includes Talent Films) had a less successful year infinancial terms, but continued to work on development projects and, indeed,since the year end has been commissioned by NHK of Japan to re-format one oftheir shows for western broadcasters. We now have a small slate of fullydeveloped programmes which are generating interest from broadcasters, both inthe UK and overseas. During the year Talent Films co-produced a new featurefilm, Peterman, which will go on general release later this year. This is notreflected in the financial results as no production fees were generated, but asa result we will enjoy a greater share of anticipated future profits. As the results show, we have continued to strive to drive down administrativecosts, and anticipate further reductions in the current year. T Bate Chairman 15 June 2014 Further Enquiries Talent Group plc Tony Humphreys Tel: 020 7415 7114 Sanlam Securities Limited Simon Clements Tel: 020 7628 2200 Audited consolidated income statement for the year ended 30 September 2013 2013 2012 Notes £'000 £'000 Revenue 677 1,041 Cost of sales (459) (749) Gross profit 218 292 Administrative expenses (465) (494) Operating loss (247) (202) Finance income 1 - Finance costs (43) (43) Loss before taxation (289) (245) Taxation 2 - - Loss for the year (289) (245) Loss per share (pence) 3 (1.31p) (1.12p) Diluted loss, per share (pence) 3 (1.26p) (1.07p) The income statement has been prepared on the basis that all operations arecontinuing operations. The accounting policies and the notes, which are set out in the Company'sreport and accounts, form an integral part of these financial statements. There are no recognised gains or losses other than those passing through theincome statement. Audited consolidated balance sheet as at 30 September 2013 2013 2012 Notes £'000 £'000 £'000 £'000 Assets Non-current assets Goodwill 1,082 1,082 Property, plant & equipment 3 14 1,085 1,096 Current assets Inventories 85 138 Trade receivables 161 78 Cash & cash equivalents (excluding 4 13 11bank overdraft) 259 227 Total assets 1,344 1,323 Equity and liabilities Equity Share capital 6,368 6,368 Share premium 11,822 11,822 Share option reserve 148 148 Retained earnings (18,865) (18,576) Total equity (527) (238) Current liabilities Borrowings 5 920 880 Trade & other payables 6 951 681 Total Liabilities 1,871 1,561 Total equity & liabilities 1,344 1,323 Audited consolidated cash flow statement from the year ended 30 September 2013 2013 2012 Notes £'000 £'000 £'000 £'000 Cash flows from operatingactivities Loss before taxation (289) (245) Adjustments for: Depreciation of tangible assets 3 7 Loss on disposal of fixed assets 7 - Share option reserve - 7 Interest received (1) - Interest paid 43 43 (237) (188) (Increase)/decrease in trade & (83) 170other receivables Decrease/(increase) in inventories 53 (83) Increase in other payables 270 108 3 7 Tax refund received - - Tax paid - - 3 7 Cash flows from investingactivities Purchase of property, plant and (5) -equipment Interest received 1 - Sale proceeds of fixed assets 6 - Net cash used in investing 2 -activities Cash flows from financingactivities Increase/(decrease) in borrowings 42 (12) Interest paid (43) (43) Net cash used in financing (1) (55) Net increase/(decrease) in cash 7 4 (48)and cash equivalents Cash and cash equivalents at thebeginning of the year 7 (19) 29 Cash and cash equivalents at the 7 (15) (19)end of the year Audited consolidated statement of changes in equity from the year ended 30September 2013 At 1 October 20116,36811,822141(18,331)- Share Share Share Retained Total Option Capital Premium Earnings £'000 Reserve £'000 £'000 £'000 £'000 Changes in equity Loss for the year - - - (245) (245) Equity share option - - 7 - 7recognised At 1 October 2012 6,368 11,822 148 (18,576) (238) Changes in equity Loss for the year - - - (289) (289) Equity share option - - - - -recognised At 30 September 2013 6,368 11,822 148 (18,865) (527) Notes to the preliminary results for the year ended 30 September 2013 1. Basis of preparation These financial statements have been prepared in accordance with InternationalFinancial Reporting Standards, International Accounting Standards andInterpretations (collectively IFRS) issued by the International AccountingStandards Board (IASB) as adopted by European Union ("adopted IFRSs"), and arein accordance with IFRS as issued by the IASB. The financial information set out above does not constitute the Company'sstatutory accounts for the years ended 30 September 2012 and 2013, but isderived from those accounts. Statutory accounts for 2012 have been delivered tothe Registrar of Companies and those for 2013 will be shortly. The Auditorshave reported on those accounts; their reports were unqualified and did notcontain statements under the Companies Act 2006 section 498. 2. Taxation 2013 2012 £'000 £'000 Domestic current year tax UK corporation tax - - Domestic prior year tax UK corporation tax - - - - Factors affecting the tax charge for the period: Loss on ordinary activities before taxation (289) (245) Profit/(loss) on ordinary activities multiplied bythe standard rate of Corporation tax in the UK of 20 per cent. (2012: (58) (61)25 per cent.) Expenses not deductible for tax purposes - 2 Depreciation in excess of capital allowances for - 2the year Other short-term timing differences 24 24 Utilisation of tax losses 34 33 Current tax charge for the year - - 3. Loss per share 2013 2012 £'000 £'000 Numerator Basic/Diluted: Net loss (289) (245) Denominator Basic: Weighted average shares 21,960,284 21,960,284 Effect of diluted securities: stock options 867,500 1,027,500 Diluted: Adjusted weighted average shares 22,827,784 22,987,784 Basic loss per share is calculated by dividing the net loss for the periodattributable to ordinary shareholders by the weighted average number ofordinary shares outstanding during the period. Diluted loss per share is computed using the weighted average number of sharesoutstanding during the period adjusted for the dilutive effect of stock optionsoutstanding for the period. 4. Cash and cash equivalents 2013 2012 £'000 £'000 Cash at bank and in hand 13 11 Bank overdraft (28) (30) (15) (19) 5. Borrowings 2013 2012 £'000 £'000 Bank overdraft 28 30 Other loans 892 850 920 880 Other loans relate to amounts provided by Terry Bate, Non-Executive Chairman.Interest is payable monthly at the rate of 6% per annum on the first £700,000,and interest of 7% per annum is payable upon repayment of the balance. Theloans are unsecured and no guarantees were given. a) Ageing The loans are due on demand. b) Fair values Cash and cash equivalents The carrying value approximates to fair value. Other assets and liabilities No disclosure of fair value has been made as the carrying value is a reasonableapproximation of the fair value. 6. Trade and other payables: amounts falling due within one year 2013 2012 £'000 £'000 Social security and other taxes 97 104 Other payables 68 63 Accruals and deferred income 786 514 951 681 7. Reconciliation of net cash flow to movement in cash and cash equivalents 2013 2012 £'000 £'000 Net increase/(decrease) in cash and cash 4 (48)equivalents Cash and cash equivalents at beginning of year (19) 29 Cash and cash equivalents at end of year (note (15) (19)4) 8. Financial commitments Office Office Land and Land and equipment equipment buildings buildings 2013 2012 2013 2012 £'000 £'000 £'000 £'000 At 30 September 2013, the Grouphad commitments under non -cancellable operating leases asfollows: Expiry date: Less than one year - 2 - - Between two and five years - - - - At 30 September 2013 there are no terms of renewal or purchase options andescalation clauses. There are also no restrictions imposed by leasearrangements concerning dividends, additional debt and further leasing. 9. Dividend The Directors do not propose a dividend payment. 10. Copies of report and accounts Copies of the Report and Accounts will be posted to shareholders shortly, willbe available from the Company's registered office Studio 31, FBC, 40 BowlingGreen Lane, London EC1R 0NE and will be available from the Company's websitewww.talenttv.com.