TIDMLUD
RNS Number : 4602E
Ludorum PLC
06 April 2011
7 April 2011
LUDORUM PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER
2010
Ludorum plc, the AIM-listed media investment company, today
announces its results for the year ended 31 December 2010.
Highlights
Total revenues generated in the year of GBP3.89m (2009:
GBP2.14m) an increase of 82%
Consumer products revenues generated in the year were GBP2.54m
(2009: GBP0.75m) an increase of 241%
Gross profit generated in the year was GBP2.04m (2009: GBP1.15m)
an increase of 78%
Operating loss for the year was GBP1.36m (2009: GBP1.69m) a
decrease of 19%
Chuggington has now been licensed for broadcast to over 175
countries
Over 210 consumer products and home entertainment license
agreements for Chuggington have been concluded throughout the
world. Global agreement reached with Mega Brands Inc for
Chuggington construction rights
Successful launch of three toy train systems with over 8 million
Chuggington trains produced in 2010
Rob Lawes, Chief Executive Officer said:
"2010 has been a defining year for Chuggington with the very
successful introduction of three unique toy train lines and the
resulting growth in our consumer product revenues. This bodes well
for the future and we believe that Chuggington will continue to
deliver real growth and value for our shareholders"
Chief Executive's Review
Overview
Ludorum plc is an AIM-listed media investment company. The Group
is focused on creating or acquiring and subsequently exploiting the
rights for children's entertainment properties through both
conventional media and new media channels.
The Group has continued to make substantial progress with the
first of its in-house created properties, Chuggington, securing
broadcast agreements in all major worldwide markets. Alongside the
successful broadcast placement we have continued to conclude a
significant number of licences across home entertainment, consumer
products and publishing.
In Spring 2010, our master toy partner, RC2, launched their
die-cast toy range at retail outlets in the UK and in several major
international markets, followed by the launch of their interactive
toy range and their wooden train-set range in the second half of
the year. We have seen strong retailer interest and consumer demand
resulting in the manufacture and shipping of more than 8 million
train engines during 2010.
We are very encouraged by Chuggington's early success, and have
confidence that our first property has created and will continue to
create material value for our shareholders.
Chuggington
Chuggington is a computer generated 3D series of 104 x 10 minute
episodes and 52 shorter mini-episodes, coupled with a fully
immersive interactive website. 78 episodes and 39 mini-episodes are
complete, and the others are currently in production. The series
follows the adventures of Wilson, Brewster and Koko, all trainee
engines and each with their own unique personality and learning
style. The series is set in a world much like our own with cities,
villages and diverse cultures and geography. Entertainment and
enjoyment is at the heart of Chuggington, but embedded within each
story are important educational and developmental messages centred
on learning and social-emotional development. The series offers an
extensive range of destinations to explore and adventures through
which children and parents can benefit from the underlying value of
positive life-learning lessons.
The company is engaged in consumer marketing projects around the
world, both short and long term, designed to enhance and strengthen
the Chuggington franchise with parents, children and educators.
Broadcast
We have concluded broadcast agreements with all leading
broadcasters in their respective territories in over 175 countries.
Broadcasts began in the UK in the fourth quarter of 2008, followed
by numerous European and Asian markets in 2010. The series has
established a highly successful ratings record in many markets
including the UK (BBC - CBeebies), Germany (Super RTL), France
(TF1), Japan (Fuji -TV), Australia (ABC) and Canada (Treehouse). In
January 2010, Chuggington launched on the Disney Channel in North
America and has been consistently aired at least six days a week.
Following the success of that launch, Disney has now acquired a
second series of Chuggington. The first series commenced broadcast
in Spain and Benelux in the first quarter of 2011.
Consumer Products, Home Entertainment and Publishing
The Company has concluded a number of agreements with leading
home entertainment partners in key territories. These include
2entertain (UK), Universal Pictures (Germany), TF1 Vision (France),
Fuji Group (Japan), Roadshow (Australia), Anchor Bay (USA) and
Daewon in Korea.
Learning Curve Brands, Inc, a division of RC2 and a leading
global toy manufacturer based in the US, has been granted the
master toy licence on a worldwide basis. Learning Curve has created
a formidable toy range with over 80 individual items developed and
manufactured across their die cast, interactive and wooden train
systems. Learning Curve contributes to the animated production
costs and participates in the net profits of the property. In the
Spring of last year, Learning Curve launched the first phase of its
die cast line in 18 countries including the UK, Germany, France and
Australia; the interactive toy line commenced distribution in the
second half of 2010 and performed strongly. An exclusive product
launch of the die cast system was implemented with Toys R Us in the
fourth quarter in 2010 in the US, which also performed strongly.
2011 has got off to a positive start as we continue to see broader
retail distribution on a global basis. As at the end of 2010,
Learning Curve had manufactured and shipped over 8 million
individual toy train engines.
It was announced on 11(th) March 2011 that Tomy Company Ltd has
entered into a definitive agreement to acquire our master toy
licence partner, RC2 Corporation. As at this moment the initial
period for the tender offer has not yet expired, but we are
enthusiastic about the potential acquisition and believe that it
will be a solidly positive development for Chuggington on a global
basis.
In addition to the Learning Curve master toy licence, the
Company has to-date entered into 210 consumer products agreements
with leading organisations including Vtech, Hallmark, Crayola, Tomy
and Ravensburger. In the UK, there are now a total of 39 licence
agreements in place covering a broad range of product categories
including clothing, bedding, games and puzzles, bicycles,
celebration cakes and greetings cards.
Following the launch of Chuggington on the Disney Channel in the
US, 24 American licences have been signed with leading companies in
their respective categories. A worldwide agreement has also been
concluded with Mega Brands Inc for exclusive rights in proprietary
construction toys.
The Company concluded a profit-share publishing agreement with
Parragon Books Limited, a leading UK and international publisher.
First books were introduced in Spring 2009. To date our publisher
has now sold over 2 million Chuggington books.
The Company has also signed a major publishing agreement with
Scholastic in the US with a very successful first launch in
September 2010 to the schools market. Wider retail distribution
commenced in the first quarter of 2011.
The Company has appointed highly regarded agents in several
international markets to represent certain categories of our
business.
Production
The first series of 52 x 10 minute episodes was completed in
January 2009. In February 2009 the Company entered into a new
agreement with its production partner in Shanghai to produce a
further 26 episodes (Series 2) which was completed in November
2010. The second series had been pre-sold to the BBC, Super RTL
Germany, TFI France, ABC Australia and The Disney Channel in the US
and several other markets. The Company has subsequently
commissioned a further 26 episodes which will be fully delivered in
Winter 2012.
In addition to the 10-minute episodes, the Company commissioned
the production of 39 x 4 minute mini episodes of Chuggington titled
Badge Quest which were all delivered by the end of 2010. These
episodes focus on the underlying pro-social themes within the main
series and offer broadcasters wider scheduling options as well as
our DVD partners additional material and on-line content. A further
13 of these mini-episodes will be delivered by the end of 2012
providing a total of 52 x 4 minute shows to complement the title
series and its worldwide visibility.
The Company is also developing three longer running "specials"
which we plan to launch annually from 2013 onwards.
Financial Review
Ludorum generated revenues of GBP3.89m for the full year (2009:
GBP2.14m), an 82% increase over the prior period. Consumer product
revenues represented 65% of revenues increasing by GBP1.79m to
GBP2.54m (2009: GBP0.75m), a 241% increase over the prior year. In
the fourth quarter of 2010, RC2 exceeded their recoupment level and
we recognised our first master toy revenues of GBP0.3m,
representing 12% of consumer product revenues. This amount will
grow significantly in 2011. Broadcast revenues, which are
recognised on license period start dates, represented 32% of
revenues, a reduction from the prior period of GBP0.13m to GBP1.23m
(2009: GBP1.36m). The UK represented 25% of revenues, Europe 33%,
Asia and Australasia 20% and the Americas 22%. All regions enjoyed
strong revenue growth, lead by the Americas with a 395% increase
over the prior year.
Gross profit increased from GBP1.15m to GBP2.04m, a 78% increase
over the prior year. Gross margin percentage fell slightly from 54%
in 2009 to 53% in 2010.
Total administrative costs, excluding costs attributed to the
Incentive Option Plan, were GBP2.96m, (2009: GBP2.43m) an increase
of GBP0.55m over the prior year. At the end of 2009 the Group
opened a New York based marketing office to support and maximise
the potential for Chuggington in North America, and the increase in
other administrative expenses of 22% predominately relates to the
full year 2010 cost of this office.
The operating loss for the full year, including costs attributed
to the incentive option plan, was GBP1.36m, a reduction from the
prior period of GBP0.33 (GBP1.69m in 2009).
Capital expenditure on Chuggington during the period was
GBP1.483m (GBP0.747m in the prior period) an increase of GBP0.736m.
This 99% increase in programming costs relates to a full year of
production, versus a period of pre-production in 2009 when full
production commenced on series 2 in the summer of 2009.
In March 2010, the Company also issued GBP1.5m of loan notes to
Pennine AIM VCT PLC. In March 2010 the Company also repaid the
outstanding balance on its fixed interest loan from Clydesdale Bank
and, at that time, the Group also changed its bankers from
Clydesdale Bank to Coutts & Co. In July 2010 the Company placed
470,000 shares at GBP3 per share, thereby raising GBP1.41m. As at
the 31 December 2010, the Company had gross cash and cash
equivalents of GBP0.7m (31 December 2009: GBP0.17m), fixed interest
borrowings of GBP1.5m (31 December 2009: GBP1.13m) and bank
overdraft of GBP0.44m (31 December 2009: GBP0.057m).
In March 2011, the Company renewed its overdraft facilities with
Coutts & Co. The overdraft facility was increased from GBP0.5m
to GBP0.75m.
On the basis of enquiries made by the directors and in the light
of current financial projections and facilities available, the
directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable
future. Accordingly, we continue to adopt the going concern basis
in preparing our accounts.
Outlook
We have continued to make excellent progress in 2010 and have
been pleased with the very successful introduction of three unique
toy train lines and the growth in our consumer products revenues.
Despite a weak consumer environment, the first quarter of 2011 has
started well and we anticipate that for the remainder of the year
we will continue to see significant growth.
Ludorum plc
Consolidated statement of comprehensive income
For the year ended 31 December 2010
UNAUDITED AUDITED
2010 2009
Notes GBP000 GBP000
------------------------------------ ------ ---------- --------
Continuing operations
------------------------------------ ------ ---------- --------
Revenue 2 3,892 2,142
------------------------------------ ------ ---------- --------
Cost of sales (1,848) (988)
------------------------------------ ------ ---------- --------
Gross profit 2,044 1,154
------------------------------------ ------ ---------- --------
Costs attributable to Share
Schemes (439) (414)
------------------------------------ ------ ---------- --------
Other administrative expenses (2,964) (2,425)
------------------------------------ ------ ---------- --------
Total administrative expenses (3,403) (2,839)
------------------------------------ ------ ---------- --------
Operating loss (1,359) (1,685)
------------------------------------ ------ ---------- --------
Finance costs - bank interest (74) (21)
------------------------------------ ------ ---------- --------
Net finance (cost)/income (74) (21)
------------------------------------ ------ ---------- --------
Loss before taxation (1,433) (1,706)
------------------------------------ ------ ---------- --------
Taxation 3 (82) (6)
------------------------------------ ------ ---------- --------
Loss for the year (1,515) (1,712)
------------------------------------ ------ ---------- --------
Other comprehensive income
/ (loss)
Foreign exchange differences - (3)
------------------------------------ ------ ---------- --------
Total comprehensive (loss)
/ income for the year (1,515) (1,715)
------------------------------------ ------ ---------- --------
Loss per share (basic and diluted) 4 (15.8p) (19.7p)
------------------------------------ ------ ---------- --------
Ludorum plc
Consolidated balance sheet for the year ended 31 December
2010
UNAUDITED AUDITED
GROUP GROUP
2010 2009
Notes GBP000 GBP000
------------------------------- ------ ---------- ---------
Assets
------------------------------- ------ ---------- ---------
Non-current assets
------------------------------- ------ ---------- ---------
Property, plant and equipment 52 66
------------------------------- ------ ---------- ---------
Intangible assets 5 3,237 1,998
------------------------------- ------ ---------- ---------
3,289 2,064
------------------------------- ------ ---------- ---------
Current assets
------------------------------- ------ ---------- ---------
Trade and other receivables 2,199 2,121
------------------------------- ------ ---------- ---------
Cash and cash equivalents 700 169
------------------------------- ------ ---------- ---------
2,899 2,290
------------------------------- ------ ---------- ---------
Liabilities
------------------------------- ------ ---------- ---------
Current liabilities
------------------------------- ------ ---------- ---------
Income tax payable (16) (9)
------------------------------- ------ ---------- ---------
Trade and other liabilities (6,657) (5,026)
------------------------------- ------ ---------- ---------
Bank loan and overdraft 6 (443) (1,183)
------------------------------- ------ ---------- ---------
(7,116) (6,218)
------------------------------- ------ ---------- ---------
Net current liabilities (4,217) (3,928)
------------------------------- ------ ---------- ---------
Non-current liabilities
------------------------------- ------ ---------- ---------
Borrowings 6 (1,500) -
------------------------------- ------ ---------- ---------
Share ownership liability - (524)
------------------------------- ------ ---------- ---------
(1,500) (524)
------------------------------- ------ ---------- ---------
Net liabilities (2,428) (2,388)
------------------------------- ------ ---------- ---------
Shareholders' equity
------------------------------- ------ ---------- ---------
Ordinary shares 9 88 84
------------------------------- ------ ---------- ---------
Deferred shares 50 50
------------------------------- ------ ---------- ---------
Share premium 9 9,281 7,885
------------------------------- ------ ---------- ---------
Share based payments reserve 105 30
------------------------------- ------ ---------- ---------
Foreign currency translation 5 5
------------------------------- ------ ---------- ---------
Retained earnings (11,957) (10,442)
------------------------------- ------ ---------- ---------
Total shareholders' deficit (2,428) (2,388)
------------------------------- ------ ---------- ---------
Ludorum plc
Consolidated statement of changes in equity
Attributable to owners of the parent
UNAUDITED UNAUDITED UNAUDITED UNAUDITED UNAUDITED UNAUDITED
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Share
based Foreign Total
Share Share Accumulated payments currency shareholders'
capital Premium losses reserve translation deficit
2010 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------- ---------- ---------- ------------ ---------- ------------ --------------
At 1 January
2010 134 7,885 (10,442) 30 5 (2,388)
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Comprehensive
income:
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Loss for the
year - - (1,515) - - (1,515)
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Other
comprehensive
income:
Foreign
exchange
differences - - - - - -
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Total
comprehensive
income - - (1,515) - - (1,515)
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Transactions
with owners:
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Credit
relating to
Share based
payments
reserve - - 75 - 75
--------------- ---------- ---------- ------------ ---------- ------------ --------------
New shares
issued 4 1,396 - - - 1,400
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Total
transactions
with owners 4 1,396 - 75 - 1,475
--------------- ---------- ---------- ------------ ---------- ------------ --------------
At 31 December
2010 138 9,281 (11,957) 105 5 (2,428)
--------------- ---------- ---------- ------------ ---------- ------------ --------------
AUDITED AUDITED AUDITED AUDITED AUDITED AUDITED
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Share
based Foreign Total
Share Share Accumulated payments currency shareholders'
capital Premium losses reserve translation deficit
2009 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------- ---------- ---------- ------------ ---------- ------------ --------------
At 1 January
2009 131 7,435 (8,730) 1,085 8 (71)
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Comprehensive
income:
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Loss for the
year - - (1,712) - - (1,712)
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Other
comprehensive
income:
Foreign
exchange
differences - - - - (3) (3)
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Total
comprehensive
income - - (1,712) - (3) (1,715)
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Transactions
with owners:
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Credit
relating to
Share based
payments
reserve - - - 30 - 30
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Transfer to
share
ownership
liability - - - (1,085) - (1,085)
--------------- ---------- ---------- ------------ ---------- ------------ --------------
New shares
issued 3 450 - - - 453
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Total
transactions
with owners 3 450 - (1,055) - (602)
--------------- ---------- ---------- ------------ ---------- ------------ --------------
At 31 December
2009 134 7,885 (10,442) 30 5 (2,388)
--------------- ---------- ---------- ------------ ---------- ------------ --------------
Ludorum plc
Consolidated cash flow statement for the year ended 31 December
2010
UNAUDITED AUDITED
GROUP GROUP
2010 2009
Notes GBP000 GBP000
--------------------------------------- ------ ---------- --------
Cash flows from operating activities
--------------------------------------- ------ ---------- --------
Cash generated from /(used) in
operations 7 (445) (478)
--------------------------------------- ------ ---------- --------
Interest received - -
--------------------------------------- ------ ---------- --------
Interest paid (74) (21)
--------------------------------------- ------ ---------- --------
Taxation paid (75) -
--------------------------------------- ------ ---------- --------
Net cash used in operating activities (594) (499)
--------------------------------------- ------ ---------- --------
Cash flows from investing activities
--------------------------------------- ------ ---------- --------
Purchase of property, plant and
equipment (23) (81)
--------------------------------------- ------ ---------- --------
Investment in intangible assets (1,012) (747)
--------------------------------------- ------ ---------- --------
Net cash used in investing activities (1,035) (828)
--------------------------------------- ------ ---------- --------
Cash flows from financing activities
--------------------------------------- ------ ---------- --------
Net proceeds from issuance of
ordinary shares 1,400 453
--------------------------------------- ------ ---------- --------
Proceeds from loans 8 1,500 1,200
--------------------------------------- ------ ---------- --------
Repayment of bank loan 8 (1,127) (73)
--------------------------------------- ------ ---------- --------
Net cash generated from financing
activities 1,773 1,580
--------------------------------------- ------ ---------- --------
Net increase / (decrease) in cash
and cash equivalents 144 253
--------------------------------------- ------ ---------- --------
Cash and cash equivalents (including
bank overdraft) at 1 January 113 (140)
--------------------------------------- ------ ---------- --------
Cash and cash equivalents (including
bank overdraft) at 31 December 257 113
--------------------------------------- ------ ---------- --------
Ludorum plc
Notes to the preliminary results for the year ended 31 December
2009
1. Basis of preparation
The financial information in this preliminary announcement is
unaudited and does not constitute the Group's statutory accounts
within the meaning of section 434 of the Companies Act 2006. It has
been extracted from the draft statutory accounts of the Group for
that year which are still subject to audit and approval by the
board of directors and are prepared in accordance with IFRS as
adopted by the European Union and with those parts of the Companies
Act 2006 applicable to companies reporting under IFRS. Those
financial statements will be approved by the board of directors and
filed with the Registrar of Companies in due course. The financial
information for the year ended 31 December 2009 has been extracted
from the statutory accounts of the Group for that year, which have
been delivered to the Registrar of Companies. The auditors' report
on those accounts was unqualified and did not contain a statement
under section 498(2) or section 498(3) of the Companies Act 2006.
The basis of preparation of the financial information in both years
presented is consistent with the accounting policies set out in the
Group's statutory accounts for the year ended 31 December 2009. No
additional standards or amendments to existing standards have been
adopted by the Group with effect from 1 January 2010.
On the basis of enquiries made by the directors and in the light
of current financial projections and facilities available, the
directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable
future. Accordingly, they continue to adopt the going concern basis
in preparing the financial information. 2. Segmental reporting
The Group currently has one operating segment, the development
and exploitation of its rights in Chuggington. Further information
about revenue derived from the Group's product lines is set out
below.
Management information used by the CODM is in a format similar
to the Consolidated Statement of Comprehensive Income and
Consolidated Balance Sheet.
Revenue by product line
UNAUDITED AUDITED
2010 2009
GBP000 GBP000
------------------- ---------- --------
Television 1,227 1,359
------------------- ---------- --------
Consumer products 2,538 745
------------------- ---------- --------
Other 127 38
------------------- ---------- --------
3,892 2,142
------------------- ---------- --------
Geographical analysis of revenue by location of customer
UNAUDITED AUDITED
2010 2009
GBP000 GBP000
--------------------- ---------- --------
UK 955 454
--------------------- ---------- --------
Europe, Middle East
& Africa 1,302 1,047
--------------------- ---------- --------
Asia 320 249
--------------------- ---------- --------
Australasia 474 222
--------------------- ---------- --------
Americas 841 170
--------------------- ---------- --------
3,892 2,142
--------------------- ---------- --------
All material assets are located in the United Kingdom.
3 Taxation
UNAUDITED AUDITED
2010 2009
GBP000 GBP000
---------------------------- ----------- ----------
Current tax
---------------------------- ----------- ----------
UK taxation - -
---------------------------- ----------- ----------
Overseas taxation -
withholding taxes 64 -
---------------------------- ----------- ----------
Overseas taxation -
US income taxes 18 6
---------------------------- ----------- ----------
Total overseas taxation 82 6
---------------------------- ----------- ----------
Total current tax expenses 82 6
---------------------------- ----------- ----------
Deferred taxation - -
---------------------------- ----------- ----------
Total income tax expense 82 6
---------------------------- ----------- ----------
The tax assessed for the year differs from the UK Small Company
tax rate in the UK. The difference is explained below:
UNAUDITED AUDITED
2010 2009
GBP000 GBP000
--------------------------------------------- ---------- --------
Loss before taxation (1,433) (1,706)
--------------------------------------------- ---------- --------
Loss before taxation multiplied by the
weighted-average rate of UK corporation
tax applicable to small companies of 21%
(2009: 21%) (301) (358)
--------------------------------------------- ---------- --------
Effects of:
--------------------------------------------- ---------- --------
Overseas taxation 82 6
--------------------------------------------- ---------- --------
Expenses not deductible for tax purposes 3 5
--------------------------------------------- ---------- --------
Losses available to carry forward and other
timing differences 298 353
--------------------------------------------- ---------- --------
82 6
--------------------------------------------- ---------- --------
4. Loss per share
Basic earnings per share ("EPS") is calculated by dividing the
earnings attributable to ordinary shareholders by the weighted
average number of ordinary shares outstanding during the year.
Because basic EPS results in a loss per share, the diluted EPS is
calculated using the undilutive weighted average number of
shares.
Loss attributable
to ordinary
Basic and diluted shareholders Weighted average Per-share amount
EPS GBP000 number of shares (pence)
------------------- ------------------ ------------------ -----------------
2010 UNAUDITED UNAUDITED UNAUDITED
------------------- ------------------ ------------------ -----------------
Loss per share (1,515) 9,596,146 (15.8)p
------------------- ------------------ ------------------ -----------------
2009 AUDITED AUDITED AUDITED
------------------- ------------------ ------------------ -----------------
Loss per share (1,712) 8,706,001 (19.7)p
------------------- ------------------ ------------------ -----------------
5. Intangible assets
Group
Capitalised costs
2010
Group GBP000
--------------------------------- -------------------
Cost
--------------------------------- -------------------
At 1 January 2009 - audited 1,526
--------------------------------- -------------------
Additions 747
--------------------------------- -------------------
At 31 December 2009 - audited 2,273
--------------------------------- -------------------
Additions - unaudited 1,483
--------------------------------- -------------------
At 31 December 2010 - unaudited 3,756
--------------------------------- -------------------
Accumulated amortisation
--------------------------------- -------------------
At 1 January 2009 - audited 49
--------------------------------- -------------------
Charge for the year 226
--------------------------------- -------------------
At 31 December 2009 - audited 275
--------------------------------- -------------------
Charge for the year - unaudited 244
--------------------------------- -------------------
At 31 December 2010 - unaudited 519
--------------------------------- -------------------
Net book value
--------------------------------- -------------------
At 1 January 2009 - audited 1,477
--------------------------------- -------------------
At 31 December 2009 - audited 1,998
--------------------------------- -------------------
At 31 December 2010 - unaudited 3,237
--------------------------------- -------------------
6. Borrowings
The following borrowings are included in current and non-current
liabilities:
UNAUDITED AUDITED
2010 2009
GBP000 GBP000
------------------------------ ---------- --------
Bank overdraft 443 56
------------------------------ ---------- --------
Fixed interest loan 1,500 1,127
------------------------------ ---------- --------
1,943 1,183
------------------------------ ---------- --------
Undrawn borrowing facilities
------------------------------ ---------- --------
Bank overdraft 57 244
------------------------------ ---------- --------
7. Reconciliation of loss before taxation with operating cash
flow
UNAUDITED AUDITED
2010 2009
GBP000 GBP000
---------------------------------------- ------------------ ----------------
Loss for the year (1,515) (1,712)
---------------------------------------- ------------------ ----------------
Adjustments for:
---------------------------------------- ------------------ ----------------
Interest paid 74 21
---------------------------------------- ------------------ ----------------
Tax paid 75 -
---------------------------------------- ------------------ ----------------
Depreciation of property, plant
and equipment 37 29
---------------------------------------- ------------------ ----------------
Amortisation of intangible
assets 244 226
---------------------------------------- ------------------ ----------------
Charge relating to share based
payments 439 518
---------------------------------------- ------------------ ----------------
Decrease in provisions - (104)
---------------------------------------- ------------------ ----------------
Change in working capital
---------------------------------------- ------------------ ----------------
Increase in trade and other
receivables (16) (1,401)
---------------------------------------- ------------------ ----------------
Increase in trade payables 217 1,939
---------------------------------------- ------------------ ----------------
Cash used in operations (445) (478)
---------------------------------------- ------------------ ----------------
8. Reconciliation of net cash flow to movement in net debt
The following borrowings are included in current and non-current
liabilities:
UNAUDITED AUDITED
2010 2009
GBP000 GBP000
----------------------------------------- ---------- --------
Net debt at beginning of year (1,183) (186)
----------------------------------------- ---------- --------
(Increase) / decrease in bank overdraft (387) 130
----------------------------------------- ---------- --------
(Proceeds) / repayment of bank loan 1,127 (1,127)
----------------------------------------- ---------- --------
Issue of loan notes (1,500) -
----------------------------------------- ---------- --------
Movement in net debt (760) (997)
----------------------------------------- ---------- --------
Net debt at end of year (1,943) (1,183)
----------------------------------------- ---------- --------
9. Called up share capital and share premium account
UNAUDITED AUDITED
2010 2009
GBP000 GBP000
------------------------ ---------- --------
Ordinary share capital 88 84
------------------------ ---------- --------
Share premium 9,281 7,885
------------------------ ---------- --------
In July 2010 the Company placed 470,000 ordinary shares with a
par value of 1 pence each at a price of GBP3 per share. The
increase in share premium is net of transaction expenses of
GBP14,000.
10. Related parties
In 2009, Ludorum Inc, a Group company, rented an office from a
company controlled by a director of the Company. The rent paid
during the year was GBP4,000. The arrangement was discontinued in
that year.
Included in trade and other liabilities at the end of the year
is GBP82,392 in respect of unpaid remuneration owed to directors of
the Company and the employer's National Insurance payable on this
remuneration (2009: GBPnil) and GBP108,970 in respect of accrued
pension costs owed to the directors (2009: GBP107,412).
11. Commitments
In 2007 the Company entered into an agreement with RC2 under the
terms of which the toy manufacturer agreed to fund 50% of the
production cost of the Company's animated series "Chuggington" in
return for which it has a global master toy licence and the right
to participate in the net profit of the property. The agreed budget
for the production of the first series of 52 episodes was $6.3
million (GBP3.9 million). Production of the first 52 episodes was
completed in early 2009. The Company and the toy manufacturer
subsequently agreed to jointly fund, on the same terms as the first
series, the production of a second series of 26 episodes. The
budget for the second series was $3.5 million (GBP2.2 million). All
the episodes in the second series were completed by the end of
2010. The Company and RC2 have agreed to jointly fund the
production of a third series comprising 26 episodes of 10 minutes
each and 13 interstitials of 4 minutes each. The budget is GBP3.9m.
Production of this third series commenced in late 2010.
In 2009, the Company entered into an agreement with Motion Magic
under the terms of which Motion Magic was to provide animation and
editing services for the production of a second series of 26
episodes of Chuggington. The Company is committed to pay RMB 13.8
million (GBP1.32m). At 31 December 2010, GBP723,000 remained to be
paid to Motion Magic.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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