MME Medal Ent&Med

RNS Number:5133L
Medal Entertainment & Media PLC
26 April 2005



For immediate release: 26 April 2005



                        Medal Entertainment & Media plc

                               Trading update


Medal Entertainment & Media plc ("the Company"), the AIM quoted company engaged
in the origination, production, publication and distribution of programmes for
television and home entertainment, is today updating the market on the likely
outcome of its results for the year ended 31 March 2005 and current trading.


The Directors advise that the Company's results for the year ended 31 March 2005
will be below market expectations with profit before tax and before the
exceptional write off of bank fees of #161,000 expected to be broadly in line
with last year (2004: #928,000).  The principal reason for this is a shortfall
in sales and lower margin sales mix at DD Home Entertainment in March and the
slippage of bookings over the financial year end at Fountain Studios, referred
to in more detail below.



Trading since the year end across the Company's three divisions is strong.



The Directors are providing the following divisional update:



TV programme production (Scarlet TV, MEM TV, DD TV)

Progress within the Company's television production division is extremely
encouraging.  This division, although still in its start up phase, has secured
eight commissions.  These commissions have been secured with national
broadcasters including Five, E4 and SKY One and their contribution will fall
into the current 2005/06 financial year. Further commissions are anticipated
shortly.



Rights (DD Home Entertainment and Strawberry Entertainment)

In the announcement of the Company's interim results released on 16 December
2004, the Directors reported  that early indications of sales for the Christmas
period were at record levels and that the second half  had started well.
December 2004 sales did prove to be strong with a 25% increase on December 2003.
  However, in March of this year, DD Home Entertainment experienced a volume
shortfall in demand and also a change in its mix of product supplied from
internally produced product to lower margin, bought-in product.    Despite this,
in the three months from January to March 2005, sales at DD Home Entertainment
hit record levels and were well ahead of the comparable period in 2004.  Since
the acquisition of DD Home Entertainment in 2002, sales have more than tripled
and profit has grown substantially.


Facilities (Fountain Studios)

In the interim announcement it was reported that Fountain Studios had
experienced a challenging trading environment during the Summer of 2004 due to
the large number of high profile non-studio based sporting events, including
Euro 2004 and the Olympics.  At that time, the Directors also reported that
booking levels were improving with a number of established shows returning.
Sales in the second half were ahead of those in the first half, but some second
half bookings and their associated revenues have slipped beyond the Company's 31
March year end.  The contribution from these bookings will therefore be
recognised in the year ending 31 March 2006. Booking levels for the current
financial year at Fountain Studios are now strong, taking into account the
traditionally quieter summer months, with good visibility through to January
2006.



Preliminary Results

The Company will update the market further on current trading in late June when
the Company l announces its preliminary results for the year ended 31 March
2005.



                                    - ends -



For further information, please visit www.mem-plc.com contact:


Steve Ayres                      Richard Swindells              John West/Claire Melly
MEM plc                          Durlacher Limited              Tavistock Communications
Tel:  020 7851 0550              Tel: 020 7459 3600             Tel:  020 7920 3150




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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