PFO.L Regulatory News (PFO)

8 Apr 2005 07:00

VTR PLC08 April 2005 VTR plc Interim Results for the six months ending 28 February 2005 VTR plc announces its interim results for the six months ending 28 February 2005 • Turnover, affected by delay in the completion of restructuring, down 8% to £11.7 million (2004: £12.7 million). • Profits before tax and exceptional credit £353,133 (2004: £401,607) • Profits before tax after exceptional credit £471,761 (2004: £401,607) • Profits for the full year forecast to be below market expectations • EPS up 22% to 2.8p (2004: 2.3p) • Gearing down to 101% from 107% in August 2004 • eTITLE automated subtitling product to launch February 2006 Philip Lovegrove, Chairman, VTR plc comments, "It is disappointing that therealisation of the benefits from the restructuring is behind schedule but thelevel of bookings has improved at the start of the second half, a trend which wehope to see maintained over the coming months. Provided this improving trendcontinues, your Board believes that, with costs firmly under control, theoutcome for the full year should compare with the declared pre tax profit beforethe exceptional charge of the previous year but will inevitably be below marketexpectations. On a more positive note the long term potential for eTITLE isconsiderable." For further information please contact: John Banks, Managing Director, VTR plc 020 7437 0026Lawrence Dore, Mantra Public Relations 020 7907 7800Ryszard Bublik, Mantra Public Relations 07977 987 991 CHAIRMAN'S STATEMENT As previously announced, the Board began a major restructuring of the Group'sbusinesses at the end of the last financial year. The Board were aware thatsome of the changes required would impact on turnover in the short term butbelieve that the efficiencies and savings derived from making these changeswill, in the longer term, reverse this trend. It is disappointing that the realisation of the benefits from the restructuringis behind schedule but the level of bookings has improved at the start of thesecond half, a trend which we hope to see maintained over the coming months.Provided this improving trend continues, your Board believes that, with costsfirmly under control, the outcome for the full year should compare with thedeclared pre tax profit before the exceptional charge of the previous year butwill be below market expectations. In the six months to 28 February 2005 the Group made a profit before anexceptional credit and taxation of £353,133, as compared with £401,607 in thesame period last year, despite turnover reducing from £12,718,334 to£11,702,930. After the exceptional credit, which was a writeback of theoverprovision of the estimated cost of the restructuring, the profit beforetaxation was £471,761. Earnings per share rose from 2.3p to 2.8p while interest cover remainedunchanged at 2.6 times earnings. The reorganisation of Video Tape Recording, blue post production and The MachineRoom, as divisions of VTR Media Services Limited is almost complete, althoughthree or four months later than was originally envisaged. The businesses arerefocused within their defined market segments and the client base is beginningto grow even though some newly appointed staff are yet to start with us.However, while K