GUSC.L Regulatory News (GUSC)

27 June 2014 Talent Group PLC ("Talent" or the "Company" or the "Group) Unaudited interim results for the six month period ended 31 March 2014 CHAIRMAN'S STATEMENT I present the Group's results for the six months ended 31 March 2014. Group turnover for the period was £291,000 (2013 - £315,000), on which grossprofit was £127,000 (2013 - £75,000). After operating costs of £225,000 (2013 -£223,000) and interest charges of £22,000 (2013 - £22,000), the operating lossfor the period (and the loss after taxation) was £120,000 (2013 - loss of £170,000 before and after taxation). Earnings per share were a loss of 0.546p(2013 - 0.744p). Whilst these results show some improvement on the previous year, they remaindisappointing. As I recently reported, such results give rise to concernregarding the future sustainability of the Group in its current form, andconsequently the publication of the 2013 full year results was delayed,resulting in a temporary suspension of trading in the Company's shares on AIM.We hope to be in a position to make a further announcement regarding the futureof the Group in the near future. In the six months to 31 March 2014, Talent Television has successfullycompleted a commission from NHK of Japan to re-format one of their shows forwestern broadcasters. Discussions are now underway with various Japanese andChinese broadcasters regarding similar commissions. A number of other projectsremain in development with UK broadcasters but, as ever, this is a long andprotracted progress. Talent Television continues to co-produce two feature films: Peterman, whichhas completed filming and is currently being shown to distributors, and TheDeranged Marriage, a film adaptation of a successful stage play, which iscurrently raising finance. A number of other film projects remain in the earlystages of development. Talent Television South has, in the six months to 31 March 2014, completed adocumentary - Tina Malone: Pregnant at 50 - for The Discovery Channel, and beencommissioned for a further four documentaries for the new London Live contract.A further new client is Trace TV, by whom the company has been commissioned toproduce a series of sixty half-hour factual entertainment programmes. Thecompany has also recently been commissioned to produce a further instructionalDVD for Stitchcombe Productions Ltd, and continues to undertake a variety ofcorporate work. Terry BateChairman 27 June 2014 FURTHER ENQUIRIES Talent Group PLCTony Humphreys (Managing Director) 020 3053 1897 Sanlam Securities UK LtdSimon Clements 020 7628 2200 TALENT GROUP PLC CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2014 Six months Six months ended ended Year ended 31-Mar 31-Mar 30-Sep 2014 2013 2013 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Revenue 291 315 677 Cost of sales (164) (240) (459) Gross profit 127 75 218 Administrative expenses (225) (223) (465) Finance income - - 1 Finance costs (22) (22) (43) Loss before taxation (120) (170) (289) Income tax expense - - - Loss for the period (120) (170) (289) Basic loss per share (pence) (0.546p) (0.774p) (1.31p) Diluted loss per share (pence) (0.541p) (0.744p) (1.26p) TALENT GROUP PLC CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2014 31-Mar 31-Mar 30-Sep 2014 2013 2013 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 £'000 £'000 £'000 Assets Non-current assets Goodwill 1,082 1,082 1,082 Property, plant & equipment 3 12 3 1,085 1,094 1,085 Current assets Inventories 141 95 85 Trade receivables 48 188 161 Cash & cash equivalents 1 13 13 190 296 259 Total assets 1,275 1,390 1,344 Equity and liabilities Equity Share capital 6,368 6,368 6,368 Share premium 11,822 11,822 11,822 Share option reserve 148 150 148 Retained earnings (18,985) (18,746) (18,865) Total equity (647) (406) (527) Current liabilities Bank overdraft - 29 28 Borrowings 918 850 892 Trade & other payables 1,004 917 951 Total liabilities 1,922 1,796 1,871 Total equity & liabilities 1,275 1,390 1,344 TALENT GROUP PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2014 Six months Six months Year ended ended ended 31-Mar 31-Mar 30-Sep 2014 2013 2013 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Cash flows from operating activities Loss before taxation (120) (170) (289) Adjustments for: Loss on disposal of fixed assets - - 7 Depreciation of tangible assets 1 2 3 Share option reserve - 2 - Interest paid 22 22 42 (97) (144) (237) Decrease/(increase) in trade and otherreceivables 141 (110) (83) (Increase)/decrease in inventories (56) 43 53 Increase in trade and other payables 53 236 270 Net cash flows from operating activities 41 25 3 Cash flows from investing activities Purchase of property, plant and (1) -equipment (5) Sale proceeds of fixed asset disposals - - 6 Interest received - - 1 Net cash used in investing activities (1) - 2 Cash flows from financing activities Net decrease in borrowing (2) - 42 Interest paid (22) (22) (43) Net cash from financing activities (24) (22) (1) Net increase in cash and cashequivalents 16 3 4 Cash and cash equivalents atbeginning of period (15) (19) (19) Cash and cash equivalents atend of period 1 (16) (15) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 MARCH 2014 Share Share Share Option Retained Capital Premium Reserve Earnings Total £'000 £'000 £'000 £'000 £'000 At 30 September 2013 6,368 11,822 148 (18,865) (527) Loss for period - - - (120) (120) Equity share option recognised - - - - - At 31 March 2014 6,368 11,822 148 (18,985) (647) Share Share Share Option Retained Capital Premium Reserve Earnings Total £'000 £'000 £'000 £'000 £'000 At 30 September 2012 6,368 11,822 148 (18,576) (238) Loss for period - - - (170) (170) Equity share option recognised - - 2 - 2 At 31 March 2013 6,368 11,822 150 (18,746) (406) NOTES TO THE HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2014 1. BASIS OF PREPARATION The interim report is unaudited and does not constitute statutory accountswithin the meaning of s.498 of the Companies Act 2006. The statutory accountsfor 2013, which were prepared under IFRS, have been delivered to the Registrarof Companies. The auditor's opinion on these accounts was unmodified and didnot contain a statement under s.498 of the Companies Act 2006. The interim financial information has been prepared on a basis which isconsistent with the accounting policies adopted by the Company for the lastfinancial statements and in compliance with IAS 34. Comparative figures are given for the six months ended 31 March 2013 and theyear ended 30 September 2013. 2. REVENUE AND LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION The results for the six months ended 31 March 2014 and 31 March 2013 areunaudited. The audited results for the year ended 30 September 2013 have alsobeen shown. By geographical location 2014 2013 (Loss) (Loss) Before Before Revenue Taxation Revenue Taxation £'000 £'000 £'000 £'000 United Kingdom 194 (120) 315 (170) Europe 18 - - - Asia 79 - - - 291 (120) 315 (170) 3. EARNINGS PER ORDINARY SHARE The earnings per share is based on a loss for the period of £120,000 (sixmonths ended 31 March 2013 - a loss of £170,000; year ended 30 September 2013 -a loss of £289,000), being the profit or loss attributable to ordinaryshareholders, and a weighted average of 21,960,284 ordinary shares. The diluted earnings / (loss) per share is based on a time weighting of theoptions 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 2014 2013 2013 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Increase in cash and cash equivalents in the 16 3 4period Cash and cash equivalents at beginning of (15) (19) (19)period Cash and cash equivalents at end of period 1 (16) (15) 5. COPIES OF THE INTERIM RESULTS Copies of the half-yearly results will be available from the Company'sregistered office FBC Studio 31, 40 Bowling Green Lane, London EC1R 0NE, andwill be available from the Company's website www.talenttv.com.