GUSC.L Regulatory News (GUSC)

27 June 2013

Talent Group plc

("Talent" or the "Company" or the "Group)

Unaudited interim results for the six month period ended 31 March 2013

CHAIRMAN'S STATEMENT

I present the Group's results for the six months ended 31 March 2013.

Group turnover for the period was £315,000 (2012 - £706,000), on which gross profit was £75,000 (2012 - £257,000). After operating costs of £223,000 (2012 - £221,000) and interest charges of £22,000 (2012 - £27,000), the operating loss for the period (and the loss after taxation) was £170,000 (2012 - profit of £9,000 before and after taxation). Earnings per share were a loss of 0.744p (2012 - earnings of 0.041p).

It goes without saying that these results are extremely disappointing. After incurring losses for a number of years, the Group had appeared to be making good progress, and was able to trade profitably for the 18 months to 31 March 2012. However, as I reported in the 2012 full year results, there was very little production activity in either of our production companies, Talent Television and Talent Television South, in the second half of the last financial year.

In the six months to 31 March 2013, there has been some improvement in this position, Talent Television South has completed two documentaries, on Frankie Fraser (which received extensive pre-broadcast interest in the national press) and Broadmoor, for The Crime and Investigation Network, and has been commissioned by the same channel to produce a third series of crime documentaries: these went into production in March. Talent South has also delivered a number of short documentary features for both Imperial College Hospital and Creative Skillset.

Talent Television is currently co-producing two feature films: Peterman, which commenced filming this month, is a low budget crime thriller, but with a strong cast including Alison Steadman, Phil Davis and Peter Bowles; and The Deranged Marriage, a film adaptation of a successful stage play, which is currently raising finance with the expectation of entering production within the next six months. A number of other film projects are in the early stages of development.

Talent Television is also continuing development on a number of television projects in the scripted comedy, children's, and entertainment genres, including a possible second series of My Phone Genie. We are currently in discussions with major national broadcasters over another two of these projects, although it is not likely that either of these will enter production before 2014. Accordingly we are taking steps to reduce further our overhead base until these income streams materialise.

Terry Bate

Chairman

27 June 2013

FURTHER ENQUIRIES

TALENT GROUP plc

CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2013

TALENT GROUP plc

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2013

TALENT GROUP plc

CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2013

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 MARCH 2013

NOTES TO THE HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2013

1. BASIS OF PREPARATION

The interim report is unaudited and does not constitute statutory accounts within the meaning of s498 of the Companies Act 2006. The statutory accounts for 2012, which were prepared under IFRS, have been delivered to the Registrar of Companies. The auditor's opinion on these accounts was unmodified and did not contain a statement under s498 of the Companies Act 2006.

The interim financial information has been prepared on a basis which is consistent with the accounting policies adopted by the Company for the last financial statements and in compliance with IAS 34.

Comparative figures are given for the six months ended 31 March 2012 and the year ended 30 September 2012.

2. REVENUE and loss on ordinary activities before taxation

The results for the six months ended 31 March 2012 and 31 March 2011 are unaudited. The audited results for the year ended 30 September 2011 have also been shown.

3. EARNINGS PER ORDINARY SHARE

The earnings per share is based on a loss for the period of £170,000 (six months ended 31 March 2012: a profit of £9,000; year ended 30 September 2012: a loss of £245,000), being the profit or loss attributable to ordinary shareholders, and a weighted average of 21,960,284 ordinary shares.

The diluted earnings /(loss) per share is based on a time weighting of the options granted by the current Talent Group employee share option plan.

4. Reconciliation of net cash flow to movement IN Cash and cash eqivalents

5. COPIES OF THE INTERIM RESULTS

Copies of the half-yearly results will be available from the Company's registered office FBC Studio 31, 40 Bowling Green Lane, London EC1R 0NE, and will be available from the Company's website www.talenttv.com.