GUSC.L Regulatory News (GUSC)

16 May 2006 07:00

Embargoed: not to be released before 7:00 a.m. 16 May 2006 TALENT GROUP PLC ("Talent" or "the Company") Interim announcement of results for the six month period ended 31st March, 2006 I am pleased to report on the results for the six month period ended 31 March2006. I am delighted to report a half year of further improvement. Althoughturnover fell slightly to ‚£3.0 million, against ‚£3.2 million, higher operatingmargins resulted in a profit before taxation for the period under review of ‚£69,000, against a loss of ‚£100,000 for the same period last year. Thisdemonstrates, once again, Talent's ability to improve its underlyingprofitability in a competitive environment.Your directors are not recommending payment of a dividend for the period.Recent changes to key executives at major broadcasters has had a delayingeffect on the timing of some commissions which means that a challenging secondhalf lies ahead. However, the people now in place and the fact that there hasbeen a general return to the kind of entertainment programming in which wespecialise, give us reason to be optimistic.We continue to develop our new relationship with Channel Four and I am pleasedto announce that hot on the heels of our first commission (The Man With 80Wives) with them, we have secured a second commission for a one-hour prime-timespecial to mark the 5th anniversary of 9/11 entitled `9/11 The Curse ofCompensation'.I intend to dedicate more time to Talent in the future and, from 1 July, willbecome part time executive chairman of the company. I will be working moreclosely with Tony Humphreys and the management team to add value, bothorganically and by acquisition, and to build on the excellent team that isalready in place.I would like to express my thanks to all those involved in producing anexcellent first six months result.Robert BentonChairman16 May 2006GROUP PROFIT AND LOSS ACCOUNTas at 31 March 2006 6 months to 6 months to Year ended 31 March 31 March 30 September 2006 2005 2005 (Unaudited) (Unaudited) (Audited) ‚£'000 ‚£'000 ‚£'000 Turnover 3,003 3,202 5,619 Cost of sales (2,149) (2,486) (3,964) Gross profit 854 716 1,655 Operating costs Administrative expenses (795) (759) (1,536) Goodwill amortisation - (60) (119) (795) (819) (1,655) Operating profit/(loss) 59 (103) - Net interest 10 3 18 Profit/(loss) before taxation 69 (100) 18 Taxation (11) - (27) Profit/(loss) for the period 58 (100) (9) Basic profit/(loss) per share 0.36p (0.62)p (0.06)p(pence) Diluted profit/(loss) per share 0.34p (0.59)p (0.05)p(pence) The results relate to the continuing activities of the Group.GROUP BALANCE SHEETas at 31 March 2006 31 March 2006 31 March 2005 30 September 2005 (Unaudited) (Unaudited) (Audited) ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Fixed assets Tangible assets 66 44 43 Rights 51 - 54 Goodwill 868 927 868 985 971 965 Current assets Debtors 756 371 736 Work in progress 41 69 41 Cash at bank and in hand: - General 588 330 594 - Controlled productions 349 1,537 588 1,734 2,307 1,959 Creditors: amounts (1,282) (2,005) (1,553) falling due within one year Net current assets 452 302 406 Total assets less 1,437 1,237 1,371current liabilities Creditors: amounts - (7) -falling due after more than one year Net assets 1,437 1,266 1,371 Capital and reserves Called up share capital 6,310 6,310 6,310Share premium account 11,634 11,634 11,634Other reserves 103 81 95Profit and loss account (16,610) (16,759) (16,668) Shareholders' funds 1,437 1,266 1,371 GROUP CASH FLOW STATEMENTFor the six months ended 31 March 2006 6 months to 6 months to Year ended 31 March 31 March 30 September Note 2006 2005 2005 (Unaudited) (Unaudited) (Audited) ‚£'000 ‚£'000 ‚£'000 Net cash inflow from operating 5 (225) 715 24activities Returns on investments and servicing of finance Interest paid - - -Interest received 10 3 18 10 3 18 Taxation - - - Capital expenditure and financial investment Purchase of tangible fixed assets (30) (9) (18) (30) (9) (18) Increase in cash 6 (245) 709 24NOTES TO THE INTERIM FINANCIAL STATEMENTSFor the six months ended March 20061. INTERIM FINANCIAL STATEMENTSThe interim financial statements do not comprise statutory accounts for thepurposes of s240 of the Companies Act 1985.From 1 October 2005, the group has chosen to adopt International AccountingStandards. This has led to no further amortisation of goodwill which the boardof directors believe to be at fair value. It has also led to the prior yearadjustment, which is in respect of accounting for employee share options underIFRS 2.2. TURNOVER AND PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE TAXATIONThe results for the six months ended 31 March 2006 and 31 March 2005 areunaudited. The audited results for the year ended 30 September 2005 have alsobeen shown.3. PROFIT/(LOSS) PER ORDINARY SHAREThe profit/(loss) per share is based on a profit for the period of ‚£58,000 (sixmonths ended 31 March 2005: a loss of ‚£100,000; year ended 30 September 2005: aloss of ‚£9,000), being the profit attributable to ordinary shareholders, and aweighted average of 16,210,284 (31 March 2005: 16,210,284; 30 September 2005:16,210,284) ordinary shares.The diluted profit/(loss) per share is based on a time weighting of the optionsgranted by the current Talent Group employee share option plan.4. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS 31 March 31 March 30 September 2006 2005 2005 (Unaudited) (Unaudited) (Audited) ‚£'000 ‚£'000 ‚£'000 Profit/(loss) for the financial period 58 (100) (9)Movement on reserves 8 14 28Net movement in shareholder's funds 66 86 19Shareholders' funds at start of the 1,371 1,352 1,352period Shareholders' funds at start of the 1,437 1,266 1,371period 5. RECONCILIATION OF OPERATING PROFIT/(LOSS) TO NET CASH INFLOW FROM OPERATINGACTIVITIES 31 March 31 March 30 September 2006 2005 2005 (Unaudited) (Unaudited) (Audited) ‚£'000 ‚£'000 ‚£'000 Operating profit/(loss) for the period 59 (103) -Depreciation and impairment on 7 7 22tangible fixed assets Amortisation on intangible fixed assets: - Goodwill - 60 119- Rights 3 - -(Increase)/decrease in work in - (15) 13progress (Increase)/decrease in debtors (20) 285 (90)(Decrease)/increase in creditors (282) 467 (68)Cost of providing employee share 8 14 28option Net cash (outflow)/inflow from (225) 715 24operating activities 6. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS 31 March 31 March 30 September 2006 2005 2005 (Unaudited) (Unaudited) (Audited) ‚£'000 ‚£'000 ‚£'000 (Decrease)/increase in cash in the (245) 709 24period Movement in net funds in the period (245) 709 24Net funds at beginning of period 1,182 1,158 1,158Net funds at end of period 937 1,867 1,1827. 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 2200John East ENDTALENT GROUP PLC