TIDMPFO
RNS Number : 9746T
Prime Focus London PLC
20 December 2012
Prime Focus London Plc
(the "Company" or "Prime Focus London")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER
2012
The Board of Prime Focus London plc, the visual entertainment
and advertising services group, is pleased to announce its
unaudited interim results for the six months to 30 September 2012.
An overview of the financial statements is set out below and full
version is available on the Company's website at www.pflplc.com
Overview
-- Profit before tax of GBP0.183m on turnover of GBP10.389m (6
months to 30 September 2011: GBP1.795m on turnover of
GBP20.348m)
-- After adjusting for discontinued operations and exceptional
items the loss before tax is GBP0.643m. Like for like sales in the
prior year 6 month period of GBP14.118m generated an equivalent
profit before tax of GBP0.591m.
-- Trade debtors and creditors reduced from the March 2012
position of GBP26.714m to GBP18.482m and from GBP19.944m to
GBP10.510m, respectively.
-- Consolidated indebtedness owed to the PLC from the majority
shareholder reduced to GBP4.094m from the March 2012 position of
GBP5.320m, and remains higher than the September 2011 position of
GBP1.523m
-- Net debt, including external debt and intra company debt,
reduced to GBP5.451m when compared to the same period last year,
GBP6.890m.
Bernard Kumeta, Chief Executive Officer, commented:
"The Company that I joined in April of this year had lost its
way in an increasingly demanding and competitive market place and a
lack of a clear strategy had created a malaise within the business
and disaffection amongst shareholders. A re-structuring of the
Company was completed in October which has resulted in significant
annual cost savings and placed the business on a much more sound
financial footing.
"The remaining core operations of the Company possess great
skills and the wider Prime Focus network provides us with a real
competitive edge. With the right support from our major
shareholders and employees, I believe that we can create a strong
position in an ever changing market place for the benefit of all
shareholders in the medium term."
For further information, please contact
Prime Focus London Plc
Bernard Kumeta Chief Executive Officer +44 (0) 20 7565 1000
Northland Capital Partners Limited
Tim Metcalfe / Edward Hutton / Lauren Kettle +44 (0) 20 7796
8800
Newgate Threadneedle
Graham Herring / Josh Royston +44 (0) 20 7653 9850
Interim Management Report
The Board of Prime Focus London Plc, the visual entertainment
and advertising services group, is pleased to announce its
unaudited interim results for the six months to 30 September
2012.
Overview
In the six months to 30 September 2012, Prime Focus London and
its subsidiaries (together "the Group") made a profit before tax of
GBP0.183 million on turnover of GBP10.389 million, compared to a
profit before tax of GBP1.795 million on turnover of GBP20.348
million for the 6 months to 30 September 2011.
Basic earnings per share were 0.56p (6 months to 30 September
2011: 5.46p).
A summary of key figures is shown below:
30 September 30 September
2012 2011
GBP`000 GBP'000
Revenue
Continuing Operations 10,389 14,118
Discontinued Operations (View D) - 6,230
Discontinued Operations (Meanwhile Q4,2011) - -
Total Revenue 10,389 20,348
---------------------- ---------------------
Profit / (Loss) before tax after exceptional
Items 183 1,795
Adjustments for non recurring items
Profit on Sale of View D (1,204)
Write off of residual liabilities following
closure of View D subsidiary (1,240)
Release of restructuring provision (partial)
and correction of errors 414 -
Adjusted profit / (loss) before tax (643) 591
---------------------- ---------------------
Net Debt
Parent and associate
Payable balance 11,134 10,353
Receivable balance (15,228) (11,876)
---------------------- ---------------------
Total parent and associate balance (4,094) (1,523)
---------------------- ---------------------
Other debt
Bank of India 7,011 5,632
Bibby Financial Services 1,465 1,464
Finance Leases 1,069 1,317
Total Other debt 9,545 8,413
---------------------- ---------------------
Total Net Debt 5,451 6,890
---------------------- ---------------------
Sales
Sales in the period reduced by GBP9.959m to GBP10.389m and cost
of sales reduced by GBP2.481m compared to the same period last
year.
Sales Analysis by
Channel %
Six months Six months
to 30 September to 30 September
2012 2011 Variance
GBP`000 GBP`000 GBP`000
Continuing Operations:
Commercials 3,055 3,751 (696) -19%
Broadcast 2,382 2,297 85 4%
Content Services 760 664 96 14%
Independent Film 3,293 6,911 (3,617) -52%
Broadcast VFX 899 493 405 82%
Meanwhile - 2 (2)
Total continuing
operations 10,389 14,118 (3,729) -26%
Discontinued Operations:
View D - 6,230 (6,230) -100%
Total Turnover 10,389 20,348 (9,959) -49%
========================= ========================== ===============
In the six months to 30 September 2011, sales included
GBP6.230m, cost of sales included GBP1.690m and administration
expenses included GBP4.825m in respect of the 2D to 3D conversion
of a major feature film undertaken by the View D business disposed
of later in the year.
Of the continuing operations, Independent film sales in the
period reduced by GBP3.617m compared to the same period last year,
accounting for the majority of the shortfall in sales. In the 2011
period, nine individual projects were undertaken compared to five
in the period under review. Variability of earnings and the size of
each project is not unusual in this channel.
Other channels performed slightly ahead of expectations and the
decline in commercials turnover, although severe, was not as
dramatic as had been expected to this point in time.
Cost base and restructuring
Administrative expenses have reduced year on year by GBP6.161m.
Of this reduction, GBP4.825m related to the disposed of View D
business. The like for like reduction in costs was therefore
GBP1.336m (down 13.7%) and is a proportional reduction linked to a
lower volume of activity.
The operational restructuring of the Commercials business
announced previously has been completed. This has had no effect on
the numbers being reported here but provides an annualised saving
of around GBP3m which will serve to insulate the business from the
effects of negative industry trends in the TV advertising
sector.
Exceptional item
The Group generated an exceptional gain of GBP1.24m by the write
off of the assets and liabilities of the View D subsidiary company
which was liquidated on 17(th) April 2012.
Future progress
Although the full benefit will not be felt until the new
financial year, the cost reduction program completed in October was
the first step in the process of repositioning the Company with the
aim of improving the underlying trading performance and generating
a long term sustainable business.
Among a number of key initiatives, over the coming months, the
Company will seek to exploit the full advantage of potential margin
and operational gains associated with the use of Prime Focus'
facilities in India.
In the Broadcast and Broadcast VFX channel the Company is
witnessing upwards sales momentum linked to new client wins. In
Broadcast a new "facility within a facility" has been built outside
of Soho providing dedicated client embedded service and speed of
response. In Broadcast VFX the development of new, high value
creative assets specifically for the television documentary makers
is gaining industry-wide recognition. Additionally, the Commercials
business has been newly rostered as a preferred partner of a major
international consumer goods company offering the prospect of high
volumes of work in the future and the further development of our
World Versioning activities.
In the face of the continuing challenges posed by the difficult
trading environment, there is still much work to do to get our
businesses operating to their full potential. Each of our business
channels has its own strengths and issues to deal with, but each
now has a clear development route and the recovery of the business
is underway.
I am confident of achieving improved shareholder returns over
the medium term.
Bernard Kumeta
Chief Executive Officer
19 December 2012
Consolidated income statement
For the six months ended 30 September
2012
Unaudited Unaudited Audited
6 months 6 months 12 months
ended 30 ended 30 ended 31
Sept. 2012 Sept. 2011 Mar. 2012
GBP'000 GBP'000 GBP'000
Revenue 10,389 20,348 31,230
Cost of sales (2,497) (4,978) (7,266)
Gross Profit 7,892 15,370 23,964
Administration expenses (8,424) (14,585) (25,751)
Group operating profit (532) 785 (1,787)
Other Income 94 93 246
Finance Income 35 175 310
Finance costs (654) (572) (1,210)
Income from fellow group undertakings - - 3,000
Exceptional Income 1,240 1,799 573
Exceptional Charges - (485) (148)
Profit before taxation 183 1,795 984
Taxation - Corporation Tax - - -
Deferred tax - - -
Profit on ordinary activities
after taxation 183 1,795 984
Basic earnings per share 0.56p 5.46p 2.99p
Diluted earnings per share 0.55p 5.42p 2.97p
Consolidated balance sheet
As at 30 September 2012
Unaudited Unaudited Audited
As at As at As at
30 Sept. 30 Sept. 31 Mar.
2012 2011 2012
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Intangible Assets 2,641 907 1,409
Property, plant and equipment 14,254 6,486 14,862
Deferred Tax Assets - - -
Other Receivables - - -
Available for sale investments 5 32 5
16,900 7,425 16,276
---------- ---------- ---------
Current assets
Inventory 19 38 41
Trade and other receivables 18,482 28,554 26,714
Cash and cash equivalents 173 1,612 1,228
18,674 30,204 27,983
---------- ---------- ---------
Total Assets 35,574 37,629 44,259
---------- ---------- ---------
EQUITY
Capital and reserves attributable
to equity shareholders
Share capital 1,644 1,642 1,643
Share premium 6,515 6,515 6,515
Capital redemption reserve 270 270 270
Fair value reserve (17) (10) (17)
Retained earnings 357 985 174
Total equity 8,769 9,402 8,585
---------- ---------- ---------
LIABILITIES
Current liabilities
Borrowings 14,193 7,793 15,125
Trade and other payables 10,510 18,766 19,944
Current tax liabilities - - -
24,703 26,559 35,069
---------- ---------- ---------
Non-current liabilities
Borrowings 2,010 1,576 515
Other payables - - -
Deferred tax liability 92 92 90
2,102 1,668 605
---------- ---------- ---------
Total equity and liabilities 35,574 37,629 44,259
---------- ---------- ---------
Consolidated cash flow statement
for the six months ended 30 September
2012
Unaudited Unaudited Audited
6 months 6 months 12 months
ended 30 ended 30 ended 31
Sept. 2012 Sept.2011 Mar. 2012
GBP'000 GBP'000 GBP'000
Cashflow from operating activities
Operating profit before taxation 183 1,795 984
Net Finance Cost 619 397 900
Depreciation and amortization 1,198 570 2,128
Share based payment - - -
Prior period adjustments - - -
(increase) / decrease in trade
and other receivables 8,231 (6,966) (5,151)
Increase / (decrease) in trade
and other payables (9,433) 3,077 4,254
(Increase) / decrease in inventories 22 - (3)
----------- ---------- -----------
Net cash inflow from operations 820 (1,127) 3,112
Net interest paid (619) (397) (900)
Net cash inflow/(outflow) from
operations 201 (1,524) 2,212
Taxation - - -
Cashflow from investing activities
Purchase of tangible fixed assets (508) (1,829) (11,644)
Purchase of investments available
for sale (1,314) (200) -
Proceeds from sale of property,
plant and equipment - 2,745 1,969
Purchase of intangible assets - - -
Purchase of subsidiaries (net of -
cash acquired) - -
Net cash inflow from investing
activities (1,822) 716 (9,675)
----------- ---------- -----------
Cashflow from financing activities
Cash flow from decrease in debt
and lease financing (563) (367) (52)
Net receipts / (repayment) in respect
of
net parent & associate Loan 898 (417) 4,388
Receipts of Bank and other loans 230 1,877 3,027
Cashflow from issue of shares at
premium 1 27 28
Net cash inflow from financing
activities 566 1,120 7,391
----------- ---------- -----------
Net cash inflow (1,055) 312 (72)
Cash and cash equivalents at the
start of the period 1,228 1,300 1,300
Cash and cash equivalents at the
end of the period 173 1,612 1,228
----------- ---------- -----------
Consolidated statement of changes in equity
for the six months ended 30 September 2012
Capital Fair
Share Share Redemption Value Retained Total
capital premium Reserve Reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 01 April
2012 1,643 6,515 270 (17) 174 8,585
Total
recognised
income for
the
period - - - - 183 183
Shares
Issued
during the
period 1 - - - - 1
At 30 Sept
2012 1,644 6,515 270 (17) 357 8,769
--------------------- --------------------- --------------------- --------------------- --------- --------
Notes to the interim results
1. GENERAL INFORMATION
Prime Focus London Plc (the "Company") is a company domiciled in
England whose registered office address is 64 Dean Street, London
W1D 4QQ. The condensed consolidated half-yearly financial
statements of the Company for the six months ended 30 September
2012 comprise the Company and its subsidiaries (together referred
to as "the Group").
The condensed consolidated half-yearly financial statements were
authorised for issue on 19th December 2012.
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
The interim financial report comprises the results and balances
of the Company and its subsidiaries (the Group) for the six month
period ended 30 September 2012. They are unaudited and do not
comprise statutory accounts in accordance with Section 434 of the
Companies Act 2006.
The comparative period for the six months ended 30 September
2011 are also unaudited.
This set of interim financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by
the European Union. As required, the condensed set of financial
statements has been prepared applying the accounting policies and
presentation that were applied in the preparation of the Group's
published consolidated financial statements for the year ended 31
March 2012 and should be read in conjunction with those annual
financial statements, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union.
3. EARNINGS PER SHARE
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended
30 ended 30 31
Sept. Mar. 2012
2012 Sept. 2011
('000) ('000) ('000)
No. No. No.
Weighted average number of 5p ordinary
shares
in issue during the period 32,882 32,848 32,864
For basic earnings per share
Share Option 262 257 241
Weighted diluted average number of
5p ordinary shares 33,144 33,105 33,105
Profit for the financial period
Profit for the period ended 183 1,795 984
Profit for earnings per share 183 1,795 984
Basic earnings per share 0.56p 5.46p 2.99p
Diluted earnings per share 0.55p 5.46p 2.97p
4. AVAILABILITY OF ACCOUNTS
A copy is available on the Company's website at
www.pflplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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