TIDMLUD
RNS Number : 0142A
Ludorum PLC
26 March 2012
26 March 2012
LUDORUM PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER
2011
Ludorum plc, the AIM-listed media investment company, today
announces its results for the year ended 31 December 2011.
Highlights
-- First Pre-Tax Profit achieved of GBP0.22m (2010: loss of
GBP1.43m), a GBP1.65m year on year increase
-- Total revenues generated in the year of GBP7.34m (2010: GBP3.89m), an increase of 89%
-- Consumer products revenues were GBP6.27m (2010: GBP2.54m), an increase of 147%
-- Gross profit of GBP3.24m (2010: GBP2.04m), an increase of 59%
-- Operating Profit for the year was GBP0.32m (2010: loss of GBP1.36m) a GBP1.68m improvement
-- EBITDA for 2011 was GBP0.90m (2010: negative EBITDA GBP1.08m)
-- Strong revenue growth in all territories
Rob Lawes, Chief Executive Officer said:
"We are very pleased to have delivered our first profitable year
of trading since we listed in April 2006. The Profit before Tax was
GBP0.22m an improvement of GBP1,65m over the loss in 2010 of
GBP1.46m. This improvement was driven by a significant growth in
our 2011 consumer products revenues growing by 147% to GBP6.27m.
This was a solid performance for 2011 against the backdrop of a
tough economic environment with generally weak consumer
spending
Ludorum plc
CHIEF EXECUTIVE'S REVIEW
Overview
We are very pleased to have delivered our first profitable year
of trading since we listed in April 2006 The Profit before Tax was
GBP0.22m an improvement of GBP1.65m over the loss in 2010 of
GBP1.43m. This improvement was driven by a significant growth in
our 2011 consumer products revenues growing by 147% to GBP6.27m.
This was a solid performance for 2011 against the backdrop of a
tough economic environment and with generally weak consumer
spending.
Chuggington
Chuggington is a computer generated 3D series of 92 x 10 minute
episodes and 46 mini-episodes, coupled with a fully immersive
interactive website. We are now in pre-production of Series 4 of
Chuggington which is scheduled to commence production in summer
2012 for intial delivery in autum 2013. We are very excited about
the new series as it will continue to expand the world, character
and storylines.
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.
Broadcast
We have concluded broadcast agreements with all leading
broadcasters in their respective territories in over 175 countries.
The series has established a highly successful ratings record in
many markets including the UK (BBC - CBeebies), North America
(Disney Channel), Germany (Super RTL), France (TF1), Japan (Fuji
-TV), Australia (ABC) and Canada (Treehouse). The first series
commenced broadcast in Spain and Benelux in the first quarter of
2011.
Consumer Products
Our master toy partner Tomy achieved total wholesale sales in
2011 of approximately US$ 50m. This was an encouraging result
against a tough global economic environment with weak consumer
spending and a tough competitive marketplace notably with the
global theatrical launch of Cars 2.
We are pleased that Tomy has secured encouraging world-wide
retailer support following the major international toy fairs at the
start of 2012. We believe Tomy has a strong line up of new product
in production that will be rolled out globally in 2012 and
beyond.
Tomy represented just over half of the 2011 consumer products
revenues of GBP6.27m. In addition to Tomy we have a significant
number of other licensees across consumer product, home
entertainment and publishing generating the balance of our consumer
revenues.
Financial Review
Ludorum generated revenues of GBP7.34m for the full year (2010:
GBP3.89m), an 89% increase over the prior period. Consumer product
revenues represented 85% of revenues increasing by GBP3.73m to
GBP6.27m (2010: GBP2.54m), a 147% increase over the prior year.
Broadcast revenues, which are recognised on license period start
dates, represented 14% of revenues, a reduction from the prior
period of GBP0.23m to GBP0.99m (2010: GBP1.23m). The UK represented
15% of revenues, Europe 40%, Asia and Australasia 13% and the
Americas 33%. All regions enjoyed strong revenue growth, lead by
the Americas with a 186% increase over the prior year.
Gross profit increased by GBP1.20m to GBP3.24m, a 59% increase
over the prior year (2010: GBP2.04m).
Total administrative costs were GBP2.92m, (2010: GBP3.40m) a 14%
decrease of GBP0.48m over the prior year.
The operating profit for the full year was GBP0.32m, an
improvement of GBP1.68m over the prior period loss of GBP1.36m in
2010).
Capital expenditure on Chuggington during the period was
GBP1.01m (GBP1.48m in the prior period) a decrease of GBP0.47m.
As at the 31 December 2011, the Company had gross cash and cash
equivalents of GBP0.5m (31 December 2010: GBP0.7m), fixed interest
borrowings of GBP1.5m (31 December 2010: GBP1.5m) and bank
overdraft of GBP1m (31 December 2010: GBP0.44m).
In March 2012, the Company renewed its GBP0.75m overdraft
facilities with Coutts & Co.
In March 2012 the Company redeemed, at par, GBP1.5m of loan
notes, being all of the loan notes in issue. At the same time the
Company issued GBP2.75m of loan notes. GBP1.5m of the loan notes
are held by client funds of Downing LLP. GBP1.25m of the loan notes
are held by D C Thomson & Co Limited. The loan notes are
repayable in March 2017. If the Company redeems the loan notes
within the next two years the redemption will be GBP1.25 per GBP1
of loan notes. If the loan notes are redeemed after two years the
loan notes are redeemable at par. The coupon on all loan notes is
the higher of 7.5% or 3% above LIBOR for the next three years.
After three years the coupon is 12.5%. The loan notes are secured
by a second charge over the Company's assets (and a charge over the
assets of Ludorum Enterprises Limited, a wholly owned subsidiary of
the Company).
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 made good progress in 2011 and reported significant year
on year growth. Our objective is to firmly establish Chuggington as
an evergreen property that will continue to deliver real growth and
long-term value for our shareholders.
Audited consolidated statement of comprehensive income for the
year ended 31 December
For the year ended For the year ended
Notes 31 December 2011 31 December 2010
GBP000 GBP000
Revenue 2 7,335 3,892
----------- --------------------------- ---------------------------
Cost of sales (4,094) (1,848)
----------- --------------------------- ---------------------------
Gross profit 3,241 2,044
----------- --------------------------- ---------------------------
Administrative expenses (2,923) (3,403)
----------- --------------------------- ---------------------------
Operating profit / (loss) 318 (1,359)
----------- --------------------------- ---------------------------
Finance costs - bank and loan interest (95) (74)
----------- --------------------------- ---------------------------
Finance cost - net (95) (74)
----------- --------------------------- ---------------------------
Profit / (loss) before income taxation 223 (1,433)
----------- --------------------------- ---------------------------
Income tax expense 3 (144) (82)
----------- --------------------------- ---------------------------
Profit / (loss) for the year 79 (1,515)
----------- --------------------------- ---------------------------
Other comprehensive loss:
Foreign exchange differences (19) -
----------- --------------------------- ---------------------------
Total comprehensive profit / (loss)
for the year 60 (1,515)
----------- --------------------------- ---------------------------
Basic earnings/ (loss) per share 4 0.80p (16.7p)
Diluted earnings per share 4 0.79p -
----------- --------------------------- ---------------------------
Audited consolidated balance sheet as
at 31 December 2011
GROUP GROUP
Notes 2011 2010
GBP000 GBP000
------- ----------------- ------------------
Assets
------- ----------------- ------------------
Non-current assets
------- ----------------- ------------------
Investments - -
------- ----------------- ------------------
Property, plant and equipment 36 52
------- ----------------- ------------------
Intangible assets 5 3,704 3,237
------- ----------------- ------------------
3,740 3,289
------- ----------------- ------------------
Current assets
------- ----------------- ------------------
Trade and other receivables 2,498 2,199
------- ----------------- ------------------
Cash and cash equivalents 501 700
------- ----------------- ------------------
2,999 2,899
------- ----------------- ------------------
Liabilities
------- ----------------- ------------------
Current liabilities
------- ----------------- ------------------
Overseas tax payable (23) (16)
------- ----------------- ------------------
Trade and other liabilities (4,463) (6,657)
------- ----------------- ------------------
Borrowings 6 (999) (443)
------- ----------------- ------------------
(5,485) (7,116)
------- ----------------- ------------------
Net current liabilities (2,486) (4,217)
------- ----------------- ------------------
Non-current liabilities
------- ----------------- ------------------
Borrowings 6 (1,500) (1,500)
------- ----------------- ------------------
(1,500) (1,500)
------- ----------------- ------------------
Net liabilities (246) (2,428)
------- ----------------- ------------------
Shareholders' deficit
------- ----------------- ------------------
Ordinary shares 88 88
------- ----------------- ------------------
Deferred shares 50 50
------- ----------------- ------------------
Share premium 9,296 9,281
------- ----------------- ------------------
Share based payments reserve 2,212 105
------- ----------------- ------------------
Foreign currency translation (14) 5
------- ----------------- ------------------
Accumulated losses (11,878) (11,957)
------- ----------------- ------------------
Total shareholders' deficit (246) (2,428)
------- ----------------- ------------------
Audited consolidated statement of changes in equity
Attributable to the owners of the parent
------------------------------------------------------------------------------------
Group
2011 Called Share Foreign Total
up Share Accumulated based currency shareholders'
share Premium losses payments translation deficit
capital GBP000 GBP000 reserve GBP000 GBP000
GBP000 GBP000
--------- ----------- ------------- ------------- ------------- ---------------
At 1 January 2011 138 9,281 (11,957) 105 5 (2,428)
--------- ----------- ------------- ------------- ------------- ---------------
Profit for the year - - 79 - - 79
--------- ----------- ------------- ------------- ------------- ---------------
Other comprehensive
income: - - - - (19) (19)
--------- ----------- ------------- ------------- ------------- ---------------
Total comprehensive
income for the year - - 79 - (19) 60
--------- ----------- ------------- ------------- ------------- ---------------
Transactions with
owners:
--------- ----------- ------------- ------------- ------------- ---------------
Reclassification
of SOA (Note 15) - - - 1,937 - 1,937
--------- ----------- ------------- ------------- ------------- ---------------
Credit relating
to share ownership
Liability (Note
17) - - - 170 - 170
--------- ----------- ------------- ------------- ------------- ---------------
New shares issued
(Note 15) - 15 - - - 15
--------- ----------- ------------- ------------- ------------- ---------------
Total contributions
for distribution
to owners of the
Company recognised
directly in equity - 15 - 2,107 - 2,122
--------- ----------- ------------- ------------- ------------- ---------------
At 31 December 2011 138 9,296 (11,878) 2,212 (14) 246
--------- ----------- ------------- ------------- ------------- ---------------
Called Share Foreign Total
2010 up Share Accumulated based currency shareholders'
Share Premium losses payments translation deficit
capital GBP000 GBP000 reserve 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:
--------- ----------- ------------- ------------- ------------- ---------------
Total comprehensive
income for the year - - (1,515) - - ( 1,515)
--------- ----------- ------------- ------------- ------------- ---------------
Transactions with
owners:
--------- ----------- ------------- ------------- ------------- ---------------
Credit relating
to Share based payments
reserve (Note 17) - - - 75 - 75
--------- ----------- ------------- ------------- ------------- ---------------
New shares issued
(Note 15) 4 1,396 - - - 1,400
--------- ----------- ------------- ------------- ------------- ---------------
Total contributions
for distribution
to owners of the
Company recognised
directly in equity 4 1,396 - 75 - 1,475
--------- ----------- ------------- ------------- ------------- ---------------
At 31 December 2010 138 9,281 (11,957) 105 5 (2,428)
--------- ----------- ------------- ------------- ------------- ---------------
Audited consolidated cash flow statement for the year
ended 31 December 2011
GROUP GROUP
Notes 2011 2010
GBP000 GBP000
--------------- -------------------- --------------------
Cash flows from
operating activities
--------------- -------------------- --------------------
Cash generated
by / (used in)
operations 7 956 (445)
--------------- -------------------- --------------------
Interest paid (95) (74)
--------------- -------------------- --------------------
Taxation paid (137) (75)
--------------- -------------------- --------------------
Net cash generated
by / (used in)
operating activities 724 (594)
--------------- -------------------- --------------------
Cash flows from
investing activities
--------------- -------------------- --------------------
Investment in - -
subsidiaries
--------------- -------------------- --------------------
Purchase of property,
plant and equipment (21) (23)
--------------- -------------------- --------------------
Investment in
intangible assets (1,473) (1,012)
--------------- -------------------- --------------------
Transfer of intangible - -
to subsidiary
company
--------------- -------------------- --------------------
Net cash (used
in) / generated
from investing
activities (1,494) (1,035)
--------------- -------------------- --------------------
Cash flows from
financing activities
--------------- -------------------- --------------------
Net proceeds from
issue of share
capital 15 1,400
--------------- -------------------- --------------------
Proceeds from
bank loan - 1,500
--------------- -------------------- --------------------
Repayment of bank
loan - (1,127)
--------------- -------------------- --------------------
Net cash generated
from financing
activities 15 1,773
--------------- -------------------- --------------------
Net (decrease)
/ increase in
cash and cash
equivalents and
bank overdrafts (755) 144
--------------- -------------------- --------------------
Cash and cash
equivalents and
bank overdrafts
at 1 January 257 113
--------------- -------------------- --------------------
Cash and cash
equivalents and
bank overdrafts
at 31 December (498) 257
--------------- -------------------- --------------------
Notes to the audited preliminary results for the year ended 31
December 2011
1. Basis of preparation
The financial information in this preliminary announcement has
been extracted from the audited financial statements of the Group
for the year ended 31 December 2011. The financial statements were
approved by the board of directors on 23 March 2012 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. The financial information for the
year ended 31 December 2010 has been extracted from the audited
financial statements of the Group for that year which have been
delivered to the Registrar of Companies. The auditors' report on
the accounts for 2011 and 2010 were unqualified and did not contain
a statement under section 237(2) or section 237(3) of the Companies
Act 1985. 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 2010. No additional standards or amendments to existing
standards have been adopted by the Group with effect from 1 January
2011.
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. Management
information used by the CODM is in a format similar to the
Consolidated statement of comprehensive income and Balance sheets.
The CODM is considered to be the Board of Directors.
Revenue by product line
For the year ended For the year ended
31 December 2011 31 December 2010
GBP000 GBP000
Broadcasting rights 999 1,227
--------------------------- ---------------------------
Consumer products 6,271 2,538
--------------------------- ---------------------------
Other 65 127
--------------------------- ---------------------------
7,335 3,892
--------------------------- ---------------------------
Geographical analysis of revenue by location
For the year ended For the year ended
31 December 2011 31 December 2010
GBP000 GBP000
UK 1,118 955
--------------------------- ---------------------------
Europe, Middle East
& Africa 2,887 1,302
--------------------------- ---------------------------
Asia 370 320
--------------------------- ---------------------------
Australasia 551 474
--------------------------- ---------------------------
Americas 2,409 841
--------------------------- ---------------------------
7,335 3,892
--------------------------- ---------------------------
All material assets are located in the UK.
3. Taxation
For the year ended For the year ended
31 December 2011 31 December 2010
GBP000 GBP000
Current tax
--------------------------- ---------------------------
UK taxation - -
--------------------------- ---------------------------
Overseas taxation -
withholding taxes 82 64
--------------------------- ---------------------------
Overseas taxation -
US income taxes 62 18
--------------------------- ---------------------------
Total overseas taxation 144 82
--------------------------- ---------------------------
Total current tax expense 144 82
--------------------------- ---------------------------
Deferred taxation - -
--------------------------- ---------------------------
Total income tax expense 144 82
--------------------------- ---------------------------
The tax assessed for the year differs from the UK Small
Company's tax rate in the UK. The difference is explained in the
following table:
4. Profit / (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 in issue during the year. Diluted
EPS is calculated by adjusting the weighted average number of
shares in issue to assume conversion of all dilutive potential
ordinary shares. Because in 2010 basic EPS resulted in a loss per
share, the diluted EPS is calculated using the undilutive weighted
average number of shares in that year.
Basic Profit / Weighted Weighted Per-share Per-share
and diluted (loss) attributable average average amount amount
EPS to ordinary number of number of
shareholders shares shares
GBP000 (basic) (diluted) (pence) (pence)
(basic) (diluted)
2011
---------------------------- ------------------ ------------------- ------------------ -------------------
Profit
per share 79 9,838,751 10,898,751 0.80p 0.72p
---------------------------- ------------------ ------------------- ------------------ -------------------
2010
---------------------------- ------------------ ------------------- ------------------ -------------------
Loss per
share (1,515) 9,076,147 - (16.7)p -
---------------------------- ------------------ ------------------- ------------------ -------------------
5. Intangible assets
Group Capitalised costs
GBP000
Cost
---------------------------------------------------------
At 1 January 2010 2,273
---------------------------------------------------------
Additions 1,483
---------------------------------------------------------
At 31 December 2010 3,756
---------------------------------------------------------
Additions 1,012
---------------------------------------------------------
At 31 December 2011 4,768
---------------------------------------------------------
Accumulated amortisation
---------------------------------------------------------
At 1 January 2010 275
---------------------------------------------------------
Charge for the year 244
---------------------------------------------------------
At 31 December 2010 519
---------------------------------------------------------
Charge for the year 545
---------------------------------------------------------
At 31 December 2011 1,064
---------------------------------------------------------
Net book value
---------------------------------------------------------
At 1 January 2010 1,998
---------------------------------------------------------
At 31 December 2010 3,237
---------------------------------------------------------
At 31 December 2011 3,704
---------------------------------------------------------
6. Borrowings
The following borrowings are included in current and non-current
liabilities:
GROUP GROUP
2011 2010
GBP000 GBP000
Bank overdraft 999 443
---------------- ----------------
Loans 1,500 1,500
---------------- ----------------
2,499 1,943
---------------- ----------------
Undrawn borrowing facilities
---------------- ----------------
Bank overdraft 56 57
---------------- ----------------
The Group has an overdraft facility of GBP750,000 and undrawn
facilities of GBP56,000 at 31 December 2011.. Ludorum has the legal
right to set off balances within the Group. The overdraft balance
in Ludorum plc amounting to GBP999,000 is netted off against cash
balances of GBP305,000 in Ludorum Enterprises Limited at the year
end. The net position is GBP694,000.
7. Cash flows from operating activities
GROUP GROUP
2011 2010
GBP000 GBP000
Profit / (loss) for the year 79 (1,515)
---------------- ----------------
Adjustments for:
---------------- ----------------
Interest paid 95 74
---------------- ----------------
Tax paid 137 75
---------------- ----------------
Depreciation of property,
plant and equipment 37 37
---------------- ----------------
Amortisation of intangible
assets 545 244
---------------- ----------------
Charge relating to share
based payments 170 439
---------------- ----------------
Change in working capital
---------------- ----------------
(Increase) / decrease in
trade and other receivables (247) (16)
---------------- ----------------
Increase / (decrease) in
trade and other payables 140 217
---------------- ----------------
Cash generated from / (used
in) operations 956 (445)
---------------- ----------------
8. Reconciliation of net cash flow to movement in net debt
The following borrowings are included in current and non-current
liabilities:
GROUP GROUP
2011 2010
GBP000 GBP000
Net debt at beginning
of year (1,243) (1,014)
---------------- ----------------
(Decrease) / Increase
in cash and cash equivalents (199) 531
---------------- ----------------
Increase in bank overdraft (556) (387)
---------------- ----------------
Repayment of bank loan - 1,127
---------------- ----------------
Issue of loan notes - (1,500)
---------------- ----------------
Increase in net debt (755) (229)
---------------- ----------------
Net debt at end of year (1,998) (1,243)
---------------- ----------------
9. Related parties
Included in trade and other liabilities at the end of the year
is GBP176,150 in respect of unpaid remuneration owed to Directors
of the Company and the employer's National Insurance payable on
this remuneration (2010: GBP82,392) and GBP143,714 in respect of
accrued pension costs owed to the Directors (2010: GBP108,970).
Richard Rothkopf owed the group GBP8,000 at the end of 2010 for
expenses paid on his behalf. This amount was reimbursed during the
year and no amount was outstanding at the end of 2011.
10. Commitments
In 2007 the Company entered into an agreement with Tomy (then
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. In 2011 the Company and Tomy agreed to jointly
fund the production of a third series comprising 14 episodes of 10
minutes each and 7 interstitials of 4 minutes each. The budget is
GBP1.98m. All the episodes in the third series were completed by
the end of 2011 and there are no remaining commitments as at 31
December 2011.
In 2011, 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 third series of 14
episodes of Chuggington. The Company is committed to pay RMB 7.2m
million (GBP733,000). At 31 December 2011, GBP274,000 remained to
be paid to Motion Magic.
11. Post balance sheet events
In March 2012 the Company redeemed, at par, GBP1.5m of loan
notes, being all of the loan notes in issue. At the same time the
Company issued GBP2.75m of loan notes. GBP1.5m of the loan notes
are held by client funds of Downing LLP. GBP1.25m of the loan notes
are held by D C Thomson & Co Limited. The loan notes are
repayable in March 2017. If the Company redeems the loan notes
within the next two years the redemption will be GBP1.25 per GBP1
of loan notes. If the loan notes are redeemed after two years the
loan notes are redeemable at par. The coupon on all loan notes is
the higher of 7.5% or 3% above LIBOR for the next three years.
After three years the coupon is 12.5%. The loan notes are secured
by a second charge over the Company's assets (and a charge over the
assets of Ludorum Enterprises Limited, a wholly owned subsidiary of
the Company).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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