GUSC.L Regulatory News (GUSC)

25 Jun 2010 07:00

25 June 2010 Talent Group plc ("Talent" or the "Company" or the "Group) Half-yearly results for the six months ended 31 March 2010 CHAIRMAN'S STATEMENT

Regular readers of my recent Chairman's Statements for the Talent Group will be familiar with my bemoaning the current difficult trading conditions for the independent television sector. Although these conditions largely persist, the efficiency measures the Group has implemented are now reflected in the Company's interim results for the six months ended 31 March 2010. These show turnover of £225,000 (2009: £303,000), gross profit of £115,000 (2009: £ 174,000), and a loss before and after taxation of £202,000 (2009: £343,000). The loss per share was 1.15p (2009: 2.06p).

Whilst the significant reduction in the loss before taxation is a welcome first step in our drive to return the Group to profitability, the drop in turnover for the first six months of the year to only £225,000 underlines the continuing fragile market conditions in which we operate. During this period Talent Television Limited ("Talent Television") successfully produced the first National Schools Quiz, which involved over seven thousand primary school children across the country competing simultaneously in a pioneering, interactive competition. Our regional subsidiary, Talent Television South Limited, delivered a highly-acclaimed one hour documentary on the Krays for the Crime and Investigation Network.

Development work continued on a number of other projects during the period and in May 2010 we were able to announce that Talent Television had been contracted by ITV to co-produce, with event organizers Aura Entertainment, a 90 minute television entertainment special based on a brand new event entitled A:3K Football, which brings together six of the world's greatest footballers in a skills competition. Participants include Wayne Rooney, Cesc Fabregas, Didier Drogba, and Christiano Ronaldo. The event takes place on 17 July 2010 and is scheduled to be broadcast on ITV later in the month, so will fully impact the Company's results for the second half of the financial year.

Progress on other projects is encouraging, but the timing of these is such that, even if confirmed, they will have little effect on the results for the current financial year. Our hope is that they provide a strong platform for future growth.

Terry BateChairman25 June 2010 FURTHER ENQUIRIES Talent Group plc

Tony Humphreys (Managing Director) 020 7822 3900

Merchant John East Securities Limited John East / Simon Clements 020 7628 2200

CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2010

Six months Six months Year ended ended ended 31-Mar 31-Mar 30-Sep 2010 2009 2009 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Revenue 225 303 644 Cost of sales (110) (129) (447) Gross profit 115 174 197 Administrative expenses (296) (498) (865) Finance income - 1 1 Finance costs (21) (20) (41) Loss before taxation (202) (343) (708) Income tax expense - prior year - - - - current year - - - Loss for the period (202) (343) (708) Basic loss per share (pence) (1.15p) (2.06p) (4.25p) Diluted loss per share (pence) (1.13p) (1.96p) (4.10p)

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2010

31-Mar 31-Mar 30-Sep 2010 2009 2009 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 £'000 £'000 £'000 Assets Non-current Assets Goodwill 1,082 1,082 1,082 Other intangible assets 28 34 31 Property, plant & equipment 30 58 34 1,140 1,174 1,147 Current assets Inventories 41 71 57 Trade receivables 16 124 42 Cash & cash equivalents 1 121 7 58 316 106 Total assets 1,198 1,490 1,253 Equity and liabilities Equity Share capital 6,329 6,315 6,315 Share premium 11,731 11,675 11,675 Share option reserve 129 123 126 Retained earnings (18,072) (17,505) (17,870) Total equity 117 608 246 Current liabilities Bank overdraft 31 - 28 Borrowings 700 700 700 Trade & other payables 350 182 279 Total liabilities 1,081 882 1,007 Total equity & liabilities 1,198 1,490 1,253

CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2010

Six months Six months Year ended ended ended 31-Mar 31-Mar 30-Sep 2010 2009 2009 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Cash flows from operating activities Loss before taxation (202) (343) (708) Adjustments for: Depreciation of tangible assets 5 4 23 Amortisation of intangible assets 3 3 6 Share option reserve 3 3 - Interest received - (1) (1) Interest paid 21 20 41 (170) (314) (639) Decrease in trade and other 26 424 506receivables Decrease/(increase) in inventories 16 (3) 11 Increase/(decrease) in trade and other payables 71 (232) (129) 113 (125) (251) Tax refund received - - - Tax paid - - - Net cash flows from operating (57) (125) (251)activities Cash flows from investing activities Purchase of property, plant and (1) (13) (8)equipment Interest received - 1 1 Net cash used in investing activities (1) (12) (7) Cash flows from financing activities Proceeds from issue of shares 70 - - Proceeds from borrowings - 100 100 Interest paid (21) (20) (41) Net cash from financing activities 49 80 59 Net cash decrease in cash and cash (9) (57) (199)equivalents Cash and cash equivalents at (21) 178 178beginning of period Cash and cash equivalent at end of period (30) 121 (21) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 MARCH2010 Share Share Share Option Retained Total Capital Premium Reserve Earnings £'000 £'000 £'000 £'000 £'000 At 30 September 2009 6,315 11,675 126 (17,870) 246 Changes in equity 14 56 70 Loss for period - - - (202) (202) Equity share option - - 3 - 3recognised At 31 March 2010 6,329 11,731 129 (18,072) 117 Share Share Share Option Retained Total Capital Premium Reserve Earnings £'000 £'000 £'000 £'000 £'000 At 30 September 2008 6,315 11,675 120 (17,162) 948 Changes in equity Loss for period - - - (343) (343) Equity share option - - 3 - 3recognised At 31 March 2009 6,315 11,675 123 (17,505) 608

NOTES TO THE HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2010

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 2009, 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 2009 and the year ended 30 September 2009.

2. REVENUE AND LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION

The results for the six months ended 31 March 2010 and 31 March 2009 areunaudited. The audited results for the year ended 30 September 2009 have alsobeen shown. By geographical 2010 2009 location Revenue Loss Before Revenue Loss Before £'000 Taxation £'000 Taxation £'000 £'000 United Kingdom 225 (202) 295 (334) United States - - - - Asia - - 8 (9) 225 (202) 303 (343) 3. LOSS PER ORDINARY SHARE

The loss per share is based on a loss for the period of £202,000 (six months ended 31 March 2009: a loss of £343,000; year ended 30 September 2009: a loss of £708,000), being the loss attributable to ordinary shareholders, and a weighted average of 17,631,822 (31 March 2009: 16,670,284; 30 September 2009: 16,670,284) ordinary shares.

The diluted 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 EQUIVALENTS

31-Mar 31-Mar 30-Sep 2010 2009 2009 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Decrease in cash and cash equivalents in the period (9) (57) (199) Cash and cash equivalents at beginning of (21) 178 178period Cash and cash equivalents at end of period (30) 121 (21)

5. COPIES OF THE INTERIM RESULTS

Copies of the half-yearly results will be available from the Company's registered office Lion House, Red Lion Street, London WC1R 4GB and will be available from the Company's website www.talenttv.com.