GUSC.L Regulatory News (GUSC)

19 May 2005 06:00

Embargoed: not to be released before 7:00 a.m. 19 May 2005 TALENT GROUP PLC ("Talent" or "the Company") Interim announcement of results for the six month period ended 31st March, 2005 I am pleased to report your company's results for the six-month period ended 31March 2005. The interim figures show an increase in gross profit to ‚£716,000compared to ‚£615,000 for the same period last year. The operating loss beforegoodwill amortisation has decreased slightly from ‚£31,000 to ‚£29,000 and theretained loss has decreased slightly from ‚£90,000 to ‚£86,000, as we continuedto invest in building up our core team of experienced television professionals.This team is now complete. The group continues to have a healthy cash position.Your directors are not declaring an interim dividend.This has been a half year of continued operational progress. One of theoriginal aims of the company was, and continues to be, to develop and produceprogrammes that can generate secondary income streams from licensing. Lastmonth we were pleased to announce that we had entered into a DVD licensingagreement for our Test the Nation brand. The first product is planned forrelease in the UK in time for the Christmas 2005 market and the first revenueswill be received in the second half of this financial year.On the programming front, our reputation for quality was recently recognisedwhen Test the Nation - The Great British Test won the prestigious Rose d'Oraward for game shows at the annual television festival in Lucerne. In addition,Talent TV has been commissioned to produce one of ITV's official 50thanniversary celebration programmes, What did ITV do for me? which will behighlighted in its autumn schedules. In children's television, Best of Friendsis regularly rated amongst the top ten children's programmes in the UK and wewere delighted to be commissioned to produce a special series in South Africafor Children's BBC, which will be broadcast as part of the BBC's special Africaweek in July.Your Board remains optimistic that further progress will be made in the currentfinancial year. My personal thanks go to my co-directors and all of ourexcellent people within Talent, for their contribution.Robert BentonChairman19 May 2005GROUP PROFIT AND LOSS ACCOUNTas at 31 March 2005 6 months to 6 months to Year ended 31 March 31 March 30 September 2005 2004 2004 (Unaudited) (Unaudited) (Audited) ‚£'000 ‚£'000 ‚£'000 Turnover 3,202 3,281 5,424 Cost of sales (2,486) (2,666) (4,210) Gross result 716 615 1,214 Operating costs Administrative expenses (745) (646) (1,213) Goodwill write-off (60) (60) (119) (805) (706) (1,332) Operating loss (89) (91) (118) Net interest 3 4 14 Loss before taxation (86) (87) (104) Taxation - (3) (23) Loss for the period (86) (90) (127) Basic loss per share (pence) (0.53)p (0.56)p (0.79)p Diluted loss per share (pence) (0.50)p (0.53)p (0.75)pThe results relate to the continuing activities of the Group.There were no recognised gains or losses other than the loss for the financialperiod.GROUP BALANCE SHEETas at 31 March 2005 31 March 2005 31 March 2004 30 September 2004 (Unaudited) (Unaudited) (Audited) ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Fixed assets Tangible assets 44 44 42 Goodwill 927 1,046 987 971 1,090 1,029 Current assets Debtors 371 239 656 Work in progress 69 57 54 Cash at bank and in hand: - General 330 485 364 - Controlled productions 1,537 1,065 794 2,307 1,846 1,868 Creditors: amounts (2,005) (1,533) (1,534) falling due within one year Net current assets 302 313 334 Total assets less 1,273 1,403 1,363current liabilities Creditors: amounts (7) (14) (11)falling due after more than one year Net assets 1,266 1,389 1,352 Capital and reserves Called up share capital 6,310 6,310 6,310 Share premium account 11,634 11,634 11,634 Profit and loss account (16,678) (16,555) (16,592) Shareholders' funds 1,266 1,389 1,352 GROUP CASH FLOW STATEMENTFor the six months ended 31 March 2005 6 months to 6 months to Year ended 31 March 31 March 30 September Note 2005 2004 2004 (Unaudited) (Unaudited) (Audited) ‚£'000 ‚£'000 ‚£'000 Net cash inflow from operating 6 715 908 510activities Returns on investments and servicing of finance Interest paid - (2) (2) Interest received 3 6 16 3 4 14 Taxation - (3) (1) Capital expenditure and financial investment Purchase of tangible fixed assets (9) (11) (17) (9) (11) (17) Increase in cash 7 709 898 506 NOTES TO THE INTERIM FINANCIAL STATEMENTSFor the six months ended March 20051. INTERIM FINANCIAL STATEMENTSThe interim financial statements do not comprise statutory accounts for thepurposes of s240 of the Companies Act 1985.2. TURNOVER AND LOSS ON ORDINARY ACTIVITIES BEFORE TAXATIONThe results for the six months ended 31 March 2005 and 31 March 2004 areunaudited. The audited results for the year ended 30 September 2004 have alsobeen shown.3. GOODWILLGoodwill arising on the acquisition of Talent Group Limited is being writtenoff on a straight line basis over ten years.4. LOSS PER ORDINARY SHAREThe loss per share is based on a loss of ‚£86,000 (six months ended 31 March2004: ‚£90,000; year ended 30 September 2004: ‚£127,000), being the lossattributable to ordinary shareholders, and a weighted average of 16,210,284 (31March 2004: 16,210,284; 30 September 2004: 16,210,284) ordinary shares.The diluted loss per share is based on a time weighting of the options grantedby the current Talent Group employee share option plan.5. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS 31 March 31 March 30 September 2005 2004 2004 (Unaudited) (Unaudited) (Audited) ‚£'000 ‚£'000 ‚£'000 Loss for the financial period (86) (90) (127) Net movement in shareholders' funds (86) (90) (127) Shareholders' funds at 1 October 2004 1,352 1,479 1,479 Shareholders' funds at 31 March 2005 1,266 1,389 1,3526. RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW FROM OPERATING ACTIVITIES 31 March 31 March 30 September 2005 2004 2004 (Unaudited) (Unaudited) (Audited) ‚£'000 ‚£'000 ‚£'000 Operating loss (89) (91) (118) Depreciation and impairment on 7 8 16 tangible fixed assets Goodwill amortisation 60 60 119 (Increase)/decrease in work in (15) 52 55 progress Decrease in debtors 285 900 444 Increase/(decrease) in creditors 467 (21) (6) Net cash inflow from operating 715 908 510 activities 7. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS 31 March 31 March 30 September 2005 2004 2004 (Unaudited) (Unaudited) (Audited) ‚£'000 ‚£'000 ‚£'000 Increase in cash in the period 709 898 506 Movement in net funds in the period 709 898 506 Net funds at beginning of period 1,158 652 652 Net funds at end of period 1,867 1,550 1,1588. COPIES OF INTERIM RESULTSCopies of the Interim Results will be sent to shareholders shortly and will beavailable to members of the public from the Company's registered office, LionHouse, Red Lion Street, London, WC1R 4GB.EnquiriesTalent Group Plc Tel: 020 7421 7800Tony Humphreys (managing director) Frances Horrell (finance director) John East & Partners Limited Tel: 020 7628 2200 John East ENDTALENT GROUP PLC