TIDMDCD
RNS Number : 3936L
DCD Media PLC
30 September 2016
DCD Media Plc
("DCD Media", the "Company" or the "Group")
Unaudited Interim Results for the Six Months Ended 30 June
2016
DCD Media, the independent TV distribution and production group,
is pleased to report unaudited interim results for the six months
ended 30 June 2016.
Financial highlights
GBP3.3m (2015: GBP6.5m)
* Revenue
GBP1.2m (2015: GBP1.6m)
* Gross profit
GBP0.5m (2015: GBP0.2m)
* Operating loss
GBP0.5m (2015: GBP0.3m)
* Unadjusted loss before tax
GBP0.0m (2015: GBP0.1m)
* Adjusted EBITDA
GBP0.0m (2015: (GBP0.0m))
* Adjusted profit/(loss) before tax
GBP0.9m (2015: (GBP1.5m))
* Cash & cash equivalents
3p (2015: Loss 2p)
* Adjusted basic earnings per share
Highlights
-- Continued focus and execution of strategy to expand DCD Media
into one of the UK's leading independent pure-play TV rights and
distribution businesses.
-- Relocation of DCD Media to streamlined and affordable new
premises close to the heart of London's media centre.
-- DCD Rights distributed drama Rake had recognition through
nominations for best drama series in both the Screen Producer
Awards and the AWGIEs.
-- DCD Rights benefitted from the launch of a number of
programmes at MIPTV such as Real Detective, signing deals with
Netflix, Sony True Crime, Nine Networks Australia, Universal, and
Sky Italy.
-- DCD Rights secured the co-production of the second series of
Penn & Teller: Fool Us in Vegas. The series is a co-production
between 1/17 Productions and September Films for the CW Network in
the USA.
-- DCD Rights secures additional funding for content acquisition.
-- Rize USA's hugely popular talent show for teenagers Got What it Takes? aired on CBBC.
-- Sequence Post successfully completed the 4K post-production
of 'The Rolling Stones: Havana Moon' released on 23 September
2016.
Post period events
-- DCD Rights continues to expand its acquisitions team with the
appointment of Philippa Chuter to the new role of Senior
Acquisitions Executive.
David Craven, Executive Chairman, commented:
"As indicated in the Chairman's statement in the 2015 Annual
Report, the Board of DCD Media announced that, in order to
strategically realign the business, it had ceased development
activity within its production division. While the Group has had to
make a number of redundancies, the outlook for the business going
forward is positive. Despite the cessation of production, the Group
will continue to focus on key production franchises including,
September Films' Penn and Teller: Fool Us in Vegas having delivered
season two to the CW Network in America, and Rize USA's Got What it
Takes?, produced for CBBC in the UK.
"While the business reports an unadjusted loss before tax of
GBP0.5m; the period has been a transitional one, with a shift from
relatively high-risk TV production development activity into a
pure-play rights entity which brings with it a more predictable yet
scalable business model. We believe the negative impact for the
business is short term and the Board is confident that the steps
taken in 2016 to refocus DCD Media will create a more solid,
cash-flow positive growth business going forward.
"In the short-term, Group revenue is likely to be lower than it
was (HY16 GBP3.3m; HY15: GBP6.5m) under the larger consolidated
umbrella of production and rights. However, the Board anticipates
the continued growth of the rights division and discussions are
underway with a number of new funding partners keen to help the DCD
Rights team acquire more programming on commercial terms.
"Consistent with this theme, during the period, the rights team
has achieved a number of notable successes and continue to set the
pace as a leading independent global content distributor. DCD
Rights achieved recognition for its ABC Australia drama Rake
through nominations for best drama series in both the Screen
Producer Awards and the AWGIEs.
"And returning for a second series, The Code has also been
well-received, securing an AWGIE nomination, and landing major
deals with AMC Networks International Broadcasting, Netflix, BBC,
and broadcasters in Denmark, Canada, Iceland, and France. Both
formats were amongst a number of DCD Rights distributed dramas
including The Principal, Dreamland, Jack Irish and How To Murder
Your Wife, which gained international recognition at several of the
major film and television awards.
"We are also delighted to welcome Philippa Chuter to the new
role of Senior Acquisitions Executive.
"In Sequence, the Group's post production business, the period
saw two features for The Rolling Stones being commissioned, 'The
Rolling Stones: Havana Moon', which premiered for theatrical
release on 23 September, and the feature documentary 'Ole, Ole,
Ole: A Trip Across Latin America', recently shortlisted for an
award at the Toronto International Film Festival.
"To conclude, we are pleased with the steps taken by the Board
during the course of the year and we anticipate a performance in
line with management expectations for 2016 underpinning the new
strategic focus."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
For further information please contact:
Angelica Tziotis
Investor Relations/ Media Relations
DCD Media plc
Tel: +44 (0)20 8563 9393
ir@dcdmedia.co.uk
Stuart Andrews or Carl Holmes
finnCap
Tel: +44 (0)20 7220 0500
Executive Chairman's Statement
This announcement presents the unaudited interim results for the
Group for the six months ended 30 June 2016.
During the period, following a long-standing review of the
production businesses, and in the context of strong competition
from consolidated TV production companies with scale, the Board of
DCD Media announced, in May 2016, that it had immediately ceased
development activity within its production division. As a
consequence, the Group unfortunately made a number of redundancies
in the production businesses and support team, which has now
concluded.
The resultant business is a rights focused play with an ambition
for DCD Media to become one of the UK's leading independent
distributors through a deep, globally-connected network of
distribution relationships. The rights business has more than
doubled in size in the last three years and has achieved success
largely because it has been expertly managed and has proven itself
to be a true partner to creative talent across the world.
We are pleased to report that DCD Rights has delivered a
promising first half performance in 2016, securing a range of
world-wide distribution deals across a number of genres, to add to
its catalogue, including scripted dramas, factual, entertainment,
and music programming. As a consequence, it has further cemented
its growing reputation as a rights business at the forefront of
both media acquisition and distribution.
This year's MIPTV, typically one of the Company's major trade
marketplaces, saw the launch of a number of programmes which went
on to secure major global deals. Real Detective, for example,
struck deals with Netflix, Sony True Crime, Nine Networks
Australia, Universal, and Sky Italy. The ratings proved to be
exceptional, resulting in talks for the commissioning of a new
season.
In May 2016, DCD Media relocated from its long-time Hammersmith
accommodation to a streamlined facility next to Edgware Road in
London's west end. The new facility is smaller but allows the
Rights team to work effectively as a self-contained unit. The
location has already proved to be a hugely popular space for
meetings and for content demonstrations.
The strong reputation, credibility and success of the DCD Rights
business, while widely recognised in the industry, is now
generating interest in the investment community.
As alluded to above and consistent with the growth strategy, DCD
Media has been working with third party investors to attract
additional investment into programming, bolstering the content
library. To date, the Company has struck an agreement with an EIS
fund provider with more than GBP1m being made available from this
fund already in addition to a fund which has been provided by DCD
Media majority shareholder Timeweave Ltd. Further discussions are
underway with new funding providers and material updates will be
provided when appropriate.
In the Post Production business, Sequence, has formed some new
relationships with successful production teams. We are delighted
that Sequence has continued to build on its strong reputation for
music content post production and continues to forge ahead with new
clients in broad based TV production genres.
We are pleased that we now have a business which feels capable
of sustained growth on a stable platform, and that has the capacity
to challenge in the marketplace and is proving to be a long-term
partner with TV distributors and content houses alike across the
world.
1. Financial Review
The Group benefitted from an overdraft facility of GBP250k
throughout the period and the Board is discussing the level of this
facility with Coutts.
At 30 June 2016 the Group had cash and cash equivalents of
GBP0.9m, comprising client cash held on account by DCD Rights and
an element of free cash available to the Group.
2. Profit and Loss Review
Revenues for the six months to 30 June 2016 were GBP3.3m (2015:
GBP6.5m). The decrease is primarily due to the poor uptake of new
production commissions coupled with the cessation of Celebrity
Squares. The development of new programmes has ceased and several
redundancies were announced. These results include the redundancy
and other restructuring costs associated with this decision.
DCD Rights has performed well despite revenue falling by GBP0.5m
to GBP2.7m. This reduction in revenue has been caused by a couple
of larger contracts being signed early in July 2016 whereas their
prior year equivalents were concluded before the period end in June
2015.
Adjusted profit before tax was GBP0.02m (2015: loss GBP0.02m),
resulting in an adjusted gain per share for the period of 3p (2015:
loss 2p). Due to the GBP0.2m non-cash charge against intangibles,
described in the balance sheet section below, and GBP0.3m of
restructuring costs in the period, the Group's statutory loss after
tax was GBP0.4m (2015: GBP0.2m).
Adjusted profit or loss before tax (PBT or LBT) is the measure
used by the Group to indicate operating performance and aims to
reflect normalised trading before exceptional, restructuring items
and non cash impairment charges, but after net finance costs.
Adjusted PBT was GBP0.03m (2015: LBT GBP0.02m). This change is
largely down to restructuring cost add backs and continued cost
control efforts across all divisions.
A reconciliation of the Group's operating loss to Adjusted Loss
before Tax and Earnings before Interest Tax Depreciation
and Amortisation (EBITDA) is shown below:
Unaudited Unaudited
6 months 6 months
ended ended
30 June 30 June
2016 2015
GBP'm GBP'm
Operating loss per accounts (0.48) (0.15)
Add: Net amortisation and
capitalisation of programme
rights 0.04 0.01
Add: Impairment of programme
rights - 0.01
Add: Amortisation of trade
names 0.21 0.21
Add: Depreciation 0.01 0.03
EBITDA (0.22) 0.11
Add: Restructuring costs 0.26 0.03
Adjusted EBITDA 0.04 0.14
Less: Net financial expense (0.01) (0.13)
Less: Depreciation (0.01) (0.03)
Adjusted PBT/(LBT) 0.02 (0.02)
------------------------------ ---------- ----------
3. Balance Sheet review
Intangible assets as at 30 June 2016 stood at GBP1.5m (2015:
GBP3.8m). The balance as at 31 December 2015 was GBP1.8m and
details of this movement were explained in the results for the year
ended 31 December 2015. The subsequent movement in intangible
assets within the six month period to 30 June 2016 reflects the
ongoing amortisation of trade names of GBP0.2m (2015: GBP0.2m) and
the net capitalisation, amortisation and impairment of programme
rights of GBP0.04m (2015: GBP0.07m).
Trade and other receivables and trade and other payables at
GBP9.0m (2015: GBP7.1m) and GBP9.6m (2015: GBP7.5m) respectively
have both risen due to the continued increase in activity in DCD
Rights.
Cash on hand at the period end stood at GBP1.2m (2015: GBP2.1m).
The majority of the Group's cash balances represent working capital
commitment in relation to programme making and cash held in DCD
Rights' client accounts and therefore is not all considered to be
free cash. The balance at June 2015 contained GBP0.6m of cash in
relation to production activity.
Bank overdrafts are secured by a fixed charge over the Group's
intangible programme rights and a floating charge over the
remaining assets of the Group. The bank overdraft has been extended
to the 31 October 2016, and is repayable on demand. The Directors
expect an overdraft facility to be available to the Group for the
foreseeable future.
The total convertible loan debt at 30 June 2016 stood at GBP0.1m
(2015: GBP2.2m) including accrued interest. The balance as at 31
December 2015 was GBP0.1m and details of this movement were
explained in the results for the year ended 31 December 2015.
In 2015, the Group accrued GBP0.4m of recharges for director,
management and financial services from Timeweave Ltd ("Timeweave"),
its major shareholder that remained unpaid. In addition, GBP0.2m of
input VAT recovered by the Group and due to Timeweave on these
recharges was also not paid. In the period to 30 June 2016, a
further GBP0.1m of such charges were accrued. The Group continues
to be in discussion with Timeweave to formalise this debt.
The amounts recoverable from HMRC in relation to VAT and social
security stood at GBP0.3m (2015: owing to HMRC of GBP0.3m).
There is no UK tax charge as a result of losses available for
offset. No deferred tax asset has been recognised in relation to
these losses.
Called up share capital at 30 June 2016 stood at GBP12.3m (2015:
GBP10.1m). The balance as at 31 December 2015 was GBP12.3m and
details of the movement in the second half of 2015 can be found in
the results to 31 December 2015.
No interim dividend is proposed for the period. Adjusted
earnings per share are disclosed in note 3 to the interim financial
statements.
4. Substantial shareholdings
As at 29 September 2016, the following notifications had been
made by holders of beneficial interests in 3% or more of the
Company's issued ordinary share capital as follows:
No. of GBP1 ordinary
shares %
----------------- --------------------- ------
Timeweave Ltd * 1,562,180 61.47
Colter Ltd * 124,000 4.88
Henderson ** 637,040 25.07
----------------- --------------------- ------
*Timeweave Ltd and Colter Ltd are under common ownership.
**Henderson means Henderson Global Investors Limited and certain
funds managed by Henderson Alternative Investment Advisor
Limited.
5. Review of operational activities
The Group consists of three key divisions: Rights and Licensing,
Production and Post Production.
Rights and Licensing
DCD Rights has had a very encouraging first half of 2016,
securing an array of world-wide distribution deals across a number
of genres to add to its catalogue, including scripted dramas,
factual, entertainment, and music programming. As a result it
further cemented its growing reputation as a business at the
forefront of both media acquisition and distribution.
Hit ABC Australian drama Rake had yet another successful season,
receiving nominations as best drama series for both the Screen
Producer Awards, and the AWGIE's. The series sold exceptionally
well across many territories including the US, Australia, Europe,
Latin America, and the Middle East. The third and fourth seasons
saw a number of big names such as Cate Blanchett and Miriam
Margolyes grace the screens alongside Richard Roxburgh.
Returning for a second series, The Code also proved successful,
receiving an AWGIE nomination, and landing major deals with AMC
Networks International Broadcasting, Netflix, BBC, and broadcasters
in Denmark, Canada, Iceland, and France. Both formats were amongst
a number of DCD Rights distributed dramas including The Principal,
Dreamland, Jack Irish and How To Murder Your Wife, which gained
international recognition at several of the major film and
television awards.
MIPTV saw the launch of a number of programs which went on to
secure major global deals. Real Detective, for one, struck deals
with Netflix, Sony True Crime, Nine Networks Australia, Universal,
and Sky Italy. The ratings proved to be exceptional, resulting in
talks for the commissioning of a new season.
On the culinary front, Sarah Graham's Food Safari sold well,
with deals across major broadcasters including Discovery, The Food
Network, AMC Networks International Broadcasting in Latin America,
and more. On the back of the success of the first season, a new
season has been commissioned. Meanwhile, in our music catalogue,
DCD is quickly topping the charts as a 'go-to' distributor for hit
music programming, with global sales on programs such as David
Gilmour - Wider Horizons.
Finally, the first six months of 2016 has been a big year for
the DCD Rights team dynamic, with a number of new additions to the
legal, accounts, technology, sales, and acquisitions departments.
Most noteworthy, was the recent hiring of Acquisitions Executive,
Phillipa Chuter, who has already initiated the acquisition of many
new titles including most notably from independent producers such
as Tern TV.
Production
As noted in the 2015 Annual Report, the Board of DCD Media
announced that it had ceased development activity within its
production division. As a consequence, the Group unfortunately had
to make a number of redundancies in the period. The Group, however,
continues to focus on its key production franchises including
September Films' Penn and Teller: Fool Us in Vegas season
transmitted on the CW Network in America, and Rize USA's Got What
it Takes?, produced for CBBC in the UK.
Post Production
The start of 2016 saw two features for The Rolling Stones get
commissioned and due to their long standing relationship with JA
Digital, Sequence Post were fortunate enough to land the deal to
complete full 4K post-production on both. These films were what
came to be 'The Rolling Stones: Havana Moon', which premiered for
theatrical release on 23 September, and the feature documentary
'Ole, Ole, Ole: A Trip Across Latin America', recently shortlisted
for an award at the Toronto International Film Festival.
After seven months of skilled work across the team, the films
were delivered to Eagle Rock in August 2016 (ingest and transcoding
commenced in early February 2016) and Sequence aims to capitalise
on its involvement in these projects. The sense of achievement
throughout the team has been palpable.
One project from this year, namely 'Ed Sheeran: Jumpers for
Goalposts' has been entered for a Broadcast Award for 'Best Music
Documentary' and Sequence is also vying for the 'Best Post House'
too.
Amidst the larger scale shows, Sequence has formed new
relationships with several short form production teams. Commercial
/ Brand work is generally much more profitable than standard HD
Broadcast work so the aim for the near future is to focus on
encouraging more of these type of relationships.
6. Outlook
The last six months has been challenging for the business given
the obvious shift to a more streamlined, cash-flow positive and
stable business. But the transition has been a necessity and has
now brought with it a refreshing and tangible energy in the rights
team as they forge ahead with their strategic goals for the next
two to three years.
As a Board, we are happy with the balance we have now struck
with a capable, skilled and motivated team who are comfortable
operating at any level and are highly-respected among their
industry peer group. The challenge for the Board going forward is
ensuring we have sufficient capital for the acquisition of good
content; and once that has been achieved, that we maintain the
highest standards possible for content acquisition to protect the
integrity of the existing library and the reputation of the team
for putting quality ahead of quantity.
The outlook in the short to medium term is very encouraging, as
we continue to expand and enrich our library and seek to affirm our
position as one of the UK's most progressive TV content
distribution businesses.
In my time as Chairman and CEO of DCD Media, the future has
never looked brighter.
David Craven
Executive Chairman
30 September 2016
Consolidated income statement (unaudited) for the 6 months ended
30 June 2016
Unaudited Unaudited Audited
6 months 6 months
to to Year to
30 June 30 June 31 December
2016 2015 2015
Note GBP'000 GBP'000 GBP'000
--------------------------------- ----- ---------- ---------- ------------
Revenue 3,327 6,511 11,115
Cost of sales (2,173) (4,916) (8,041)
Impairment of programme rights - (5) (152)
Gross profit 1,154 1,590 2,922
Selling and distribution
expenses (9) (18) (37)
Administration expenses:
- Other administrative expenses (1,162) (1,486) (2,936)
- Impairment of goodwill
and trade names - - (1,772)
- Amortisation of goodwill
and trade names (209) (209) (419)
- Restructuring costs (254) (29) 54
Total administrative expenses (1,625) (1,724) (5,073)
Operating loss (480) (152) (2,188)
Finance costs (10) (124) (164)
Loss before taxation (490) (276) (2,352)
Taxation - current 2 38 43 118
Loss for the period (452) (233) (2,234)
--------------------------------- ----- ---------- ---------- ------------
Loss attributable to:
Owners of the parent (444) (228) (2,324)
Non controlling interest (8) (5) 90
--------------------------------- ----- ---------- ---------- ------------
(452) (233) (2,234)
--------------------------------- ----- ---------- ---------- ------------
Earnings per share attributable to the equity holders
of the Company during the period (expressed as pence
per share)
Total basic loss per share 3 (17p) (56p) (254p)
Total diluted loss per share (17p) (56p) (254p)
Consolidated statement of comprehensive income (unaudited) for
the 6 months to 30 June 2016
Unaudited Unaudited Audited
6 months 6 months
to to Year to
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
--------------------------------------- ---------- ---------- ------------
Loss (452) (233) (2,234)
Other comprehensive income/(expenses)
Exchange gain/(loss) arising
on translation of foreign
operations 3 (2) 4
Total other comprehensive
(expenses)/income (449) (235) (2,230)
Total comprehensive expenses (449) (235) (2,230)
---------------------------------------- ---------- ---------- ------------
Total comprehensive expenses
attributable to:
Owners of the parent (441) (230) (2,320)
Non controlling interest (8) (5) 90
(449) (235) (2,230)
--------------------------------------- ---------- ---------- ------------
Consolidated statement of financial position (unaudited) at 30
June 2016
Unaudited Unaudited Audited
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
------------------------------- ---------- ---------- ------------
Assets
Non-current
Goodwill 1,017 2,789 1,017
Other intangible assets 499 1,082 745
Property, plant and equipment 74 77 68
Trade and other receivables 89 393 398
1,679 4,341 2,228
------------------------------- ---------- ---------- ------------
Current assets
Inventories - 36 5
Trade and other receivables 8,893 6,712 8,149
Taxation and social security 331 - -
Cash and cash equivalents 1,210 2,092 1,594
10,434 8,840 9,748
------------------------------- ---------- ---------- ------------
Liabilities
Current liabilities
Bank overdrafts (296) (597) (413)
Bank and other loans - - (61)
Unsecured convertible loan (62) (2,165) (62)
Trade and other payables (9,586) (7,510) (8,676)
Taxation and social security - (322) (101)
Obligations under finance
leases (8) (10) (10)
(9,952) (10,604) (9,323)
------------------------------- ---------- ---------- ------------
Non-current liabilities
Obligations under finance
leases (20) (27) (22)
Deferred tax liabilities (84) (176) (125)
(104) (203) (147)
------------------------------- ---------- ---------- ------------
Net assets 2,057 2,374 2,506
-------------------------------- ---------- ---------- ------------
Equity
Called up share capital 12,272 10,145 12,272
Share premium account 51,215 51,118 51,215
Equity element of convertible
loan 1 98 1
Translation reserve (174) (183) (177)
Own shares held (37) (37) (37)
Retained earnings (61,244) (58,704) (60,800)
Equity attributable to owners
of the parent 2,033 2,437 2,474
Non controlling interest 24 (63) 32
Total equity 2,057 2,374 2,506
-------------------------------- ---------- ---------- ------------
Consolidated statement of cash flows (unaudited) for the 6
months ended 30 June 2016
Unaudited Unaudited
6 months 6 months Audited
ended ended Year ended
30 June 30 June 31 December
2016 2015 2015
Cash flow from operating activities GBP'000 GBP'000 GBP'000
----------------------------------------- ---------- ---------- -------------
Net loss before taxation (490) (276) (2,422)
Adjustments for:
Depreciation of tangible assets 15 27 57
Amortisation and impairment of
intangible assets 400 484 2,996
Net bank and other interest charges 10 124 164
Increase in stock provision - - (51)
Net exchange differences on translating
foreign operations 3 (2) 4
Net cash flows before changes
in working capital (62) 357 748
Decrease in inventories 5 13 -
Increase in trade and other receivables (436) (593) (1,750)
Increase in trade and other payables 350 923 1,712
Cash from operations (143) 700 710
Interest paid (10) (9) (22)
Net cash flows from operating
activities (153) 691 688
Investing activities
Purchase of property, plant and
equipment (21) (25) (46)
Purchase of intangible assets (154) (279) (653)
Net cash flows used in investing
activities (175) (304) (699)
Financing activities
Repayment of finance leases (3) (4) (8)
Repayment of loan - (1,640) (147)
New loans raised 64 1,466 61
Net cash flows from financing
activities 61 (178) (94)
Net increase in cash (267) 209 (105)
Cash and cash equivalents at beginning
of period 1,181 1,286 1,286
Cash and cash equivalents at end
of period 914 1,495 1,181
----------------------------------------- ---------- ---------- -------------
Statement of changes in equity (unaudited)
Share Share Equity Translation Retained Equity Amounts Total
capital premium element reserve earnings attributable attributable equity
of to owners to
convertible Own of the non-controlling
loan Shares parent interest
Held
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- ------- ------- ----------- ----------- ------- -------- ------------ --------------- -------
Balance
at
30 June
2014 10,145 51,118 99 (201) (37) (58,476) 2,648 (137) 2,511
-------------- ------- ------- ----------- ----------- ------- -------- ------------ --------------- -------
Loss and
total
comprehensive
income for
the period - - (1) - - - (1) 79 78
Exchange
differences
on
translating
foreign
operations - - - 20 - - 20 - 20
Balance
at
31 December
2014 10,145 51,118 98 (181) (37) (58,476) 2,667 (58) 2,609
-------------- ------- ------- ----------- ----------- ------- -------- ------------ --------------- -------
Loss and
total
comprehensive
income for
the period - - - - - (228) (228) (5) (233)
Exchange
differences
on
translating
foreign
operations - - - (2) - - (2) - (2)
Balance
at
30 June
2015 10,145 51,118 98 (183) (37) (58,704) 2,437 (63) 2,374
-------------- ------- ------- ----------- ----------- ------- -------- ------------ --------------- -------
Loss and
total
comprehensive
income for
the period - - - - - (2,096) (2096) 95 (2,001)
Shares
allotted
on conversion
of loan
notes 2,127 - - - - - 2,127 - 2,127
Equity element
on conversion
of
convertible
loans - 97 (97) - - - - - -
Exchange
differences
on
translating
foreign
operations - - - 6 - - 6 - 6
Balance
at
31 December
2015 12,272 51,215 1 (177) (37) (60,800) 2,474 32 2,506
-------------- ------- ------- ----------- ----------- ------- -------- ------------ --------------- -------
Loss and
total
comprehensive
income for
the year - - - - - (444) (444) (8) (452)
Exchange
differences
on
translating
foreign
operations - - - 3 - - 3 - 3
Balance
at
30 June
2016 12,272 51,215 1 (174) (37) (61,244) 2,033 24 2,057
-------------- ------- ------- ----------- ----------- ------- -------- ------------ --------------- -------
Notes to the interim financial statements (unaudited)
Nature of operations and general information
During the period, the principal activity of DCD Media Plc and
subsidiaries (the Group) was the production of television
programmes in the United Kingdom, and the worldwide distribution of
those programmes for television and other media; the Group also
distributes programmes on behalf of other independent producers. On
27 May 2016, the Group announced the cessation of development in
its TV production divisions and the continued focus is primarily on
the distribution division.
DCD Media Plc is the Group's parent company, and it is
incorporated and domiciled in Great Britain. The address of DCD
Media Plc's registered office and its principal place of business
is 9(th) Floor Winchester House, 259-269 Old Marylebone Road,
London, NW1 5RA. DCD Media Plc's shares are listed on the AIM
market of the London Stock Exchange.
DCD Media Plc's condensed consolidated interim financial
statements are presented in Pounds Sterling (GBP), which is also
the functional currency of the parent company.
These condensed consolidated interim financial statements have
been approved for issue by the Board of Directors on 30 September
2016.
The financial information in the half yearly report has been
prepared using the recognition and measurement principles of
International Accounting Standards, International Financial
Reporting Standards and Interpretations adopted for use in the
European Union (collectively Adopted IFRSs). The principal
accounting policies used in preparing the half yearly report are
those the Group expects to apply in its financial statements for
the year ending 31 December 2016 and are unchanged from those
disclosed in the Group's Directors' Report and consolidated
financial statements for the year ended 31 December 2015. This
interim report has neither been audited nor reviewed pursuant to
guidance issued by the Audit Practice Board.
The financial information for the six months ended 30 June 2016
and the six months ended 30 June 2015 is unaudited and does not
constitute the Group's statutory financial statements for those
periods. The comparative financial information for the full year
ended 31 December 2015 has, however, been derived from the audited
statutory financial statements for that period. A copy of those
statutory financial statements has been delivered to the Registrar
of Companies. The auditor's report on those accounts was
unqualified.
While the financial figures included in this half-yearly report
have been computed in accordance with IFRSs applicable to interim
periods, this half-yearly report does not contain sufficient
information to constitute an interim financial report as that term
is defined in IAS 34.
1. Basis of preparation
These interim condensed consolidated financial statements (the
Interim Financial Statements) are for the six months ended 30 June
2016. They do not include all of the information required for full
annual financial statements, and should be read in conjunction with
the consolidated financial statements of the Group for the year
ended 31 December 2015.
The accounting policies have been applied consistently
throughout the Group for the purposes of preparation of these
interim financial statements and remain unchanged form those set
out in the previous audited consolidated financial statements.
Basis of preparation - Going Concern
In considering the going concern basis of preparation of the
Group's financial statements, the Board have prepared profit and
cash flow projections which incorporate reasonably foreseeable
impacts of the ongoing challenging market environment.
The Directors' forecasts and projections, which make allowance
for reasonably possible changes in its trading performance, show
that, with the ongoing support of its lenders and its bank, the
Group can continue to generate cash to meet its obligations as they
fall due.
The Directors, after making enquiries, have a reasonable
expectation that the Company and the Group will have adequate
resources to continue in operational existence for the foreseeable
future. Accordingly, they continue to adopt the going concern basis
in preparing the annual report and financial statements.
The financial statements do not include the adjustments that
would result if the Group or Company were unable to continue as a
going concern.
2. Tax
There is no UK tax charge as a result of losses available for
offset. No deferred tax asset has been recognised in relation to
these losses.
3. Loss per share
The calculation of the basic loss per share is based on the loss
attributable to ordinary shareholders divided by the average number
of shares in issue during the period.
6 months 6 months
to to
30 June 30 June
2016 2015
GBP'000 GBP'000
------------------------------ ---------- ---------
(Loss)/profit attributable
to ordinary shareholders:
Basic (444) (228)
Adjusted basic profit/(loss) 71 (7)
------------------------------ ---------- ---------
Weighted average number
of shares in issue: No. No.
Basic 2,541,419 414,281
------------------------------ ---------- ---------
(Loss)/profit per share
(pence):
Basic (17) (56)
Adjusted basic 3 (2)
------------------------------ ---------- ---------
The consequences of conversion of convertible loan notes and
exercise of share options held at period end have not been
considered for either 2016 or 2015 as the effect would be
anti-dilutive.
4. Dividends
The Directors do not propose to recommend the payment of a
dividend.
5. Events after the reporting date
On 18 August 2016, David Green resigned as non-executive
director of the Company.
6. Publication of non-statutory accounts
Copies of the Interim Financial Statements are available from
the registered office of DCD Media Plc or from the website -
www.dcdmedia.co.uk. The address of the registered office is: 9(th)
Floor, Winchester House, 259-269 Old Marylebone Road, London, NW1
5RA.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR WGUUGBUPQGCU
(END) Dow Jones Newswires
September 30, 2016 10:15 ET (14:15 GMT)
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