TIDMLUD
RNS Number : 7108Z
Ludorum PLC
15 December 2014
15 December 2014
LUDORUM PLC INTERIM RESULTS
Ludorum plc, the AIM-listed media investment company, today
announces its results for the half-year ended 30 September,
2014.
Highlights for the period 1 April 2014 to 30 September 2014
Turnover GBP2.03 m (2013: GBP2.53 m)
Broadcast income GBP0.51 m (2013: GBP0.43 m)
Consumer products revenues GBP1.53 m (2013: GBP2.10 m)
Operating profit GBP0.11 m (2013: GBP0.01 m)
Administrative expenses GBP0.51 m (2013: GBP0.82 m)
EBITDA GBP0.61 m (2013: GBP0.35 m)
Chuggington has now been licensed for broadcast to 175
countries
Rob Lawes, Chief Executive, said:
"We have been able to grow EBITDA by 74% to GBP0.61m and
increase operating profit by GBP0.1m despite a decline from our
consumer products revenues over the first six months of 2014. This
has been achieved through an increase in broadcast and digital
revenues and a reduction in administrative expenses."
Cancellation of Admission to trading on AIM
The Company also announces its intention to seek Shareholder
approval to delist. A Circular to Shareholders outlining the
proposal will be sent out in due course.
Contacts
Ludorum plc 020 8939 6280
Rob Lawes
Investec Investment Banking (NOMAD) 020 7597 4000
David Flin
Andrew Pinder
Chief Executive's Review
Overview
We have been able to grow EBITDA by 74% to GBP0.61m and increase
operating profit by GBP0.1m despite a decline from our consumer
products revenues over the first six months of 2014. This has been
achieved through an increase in broadcast and digital revenues and
a reduction in administrative expenses.
We completed the delivery of series four to our broadcaster
partners in Spring 2014. We are also currently in production of a
further 10 episodes for delivery in Spring 2015. Broadcast demand
for the new content remains strong with all our key broadcaster
partners acquiring the new content. We have been encouraged by
demand from global SVOD partners such as Netflix and Amazon for our
content. We have recently concluded SVOD deals for the US, Canada,
France and UK with revenues commencing in the next financial
period.
The fall in consumer product revenues was predominately driven
by a GBP0.3m reduction in revenues from our master toy partner.
Despite this reduction, we are pleased that Tomy has made some
exciting innovations to their Stack Track and Wooden Systems for
launch in 2015 including the development of a new Stack Track
motorized system.
We are also actively exploring opportunities to create enhanced
revenue streams from new distribution platforms and also introduce
Chuggington into new markets.
Chuggington
Chuggington is an action packed series of train adventures that
come to life in a vibrant modern world called Chuggington. Wilson
and his friends Brewster and Koko take on exciting challenges that
test their courage, speed and determination. Along the way, they
learn positive values and new skills empowering them to become the
best trainees they can be. To date we have created 118 x 10"
episodes and 46 x 4" shorter episodes. We are in production on a
further 10 x 10" episodes with delivery of these episodes scheduled
for early 2015.
The first Chuggington series was created by Ludorum in 2006 and
has continually and successfully been on air since 2008. 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 (The Disney
Channel), Germany (Super RTL), France (TF1), Japan (Fuji -TV), and
Australia (ABC).
Financial Review
Ludorum generated revenues of GBP2.03m for the first six months
ending 30 September 2014 (2013: GBP2.53m), a 19% reduction over the
first six months of 2013. This reduction is the result of lower
reported consumer product revenues of GBP1.53m (GBP2.09m), a 27%
reduction. Consumer products revenues represented 75% of revenues.
Broadcast revenues represented 25% of revenues at GBP0.51m (2013:
GBP0.43m), a 19% increase.
Europe (including the UK) represented 52% (2013: 45%) of total
revenues at GBP1.06m, The Americas represented 35% (2013: 38%) of
revenues at GBP0.72m and Austral/Asia 13% (2013: 16 %) of revenues
at GBP0.26m.
Gross profit decreased from to GBP0.82m, to GBP0.62m largely
driven by the GBP0.16m increase in the amortisation charge
following the delivery of series four.
Total administrative costs were GBP0.52m a reduction of 37% over
the prior period cost of GBP0.82m.
Operating profit for the six-month period grew by GBP0.10m to
GBP0.11 m versus a GBP0.01m profit for the prior period.
EBITDA for the period grew by 74% to GBP0.61m versus GBP0.35m
for the prior period.
As at 30 September 2014, the Company had a net overdraft
position of GBP0.54m (30 September 2013 GBP0.55m). In June 2014,
the Company renewed its GBP0.75m overdraft facility with Coutts
until 1 December 2014 at which time it reduced to GBP0.50m. The
Company is operating within its lower overdraft facilities.
The Company has GBP2.75m of loan notes held by client funds of
Downing LLP and D C Thomson & Co Limited. The loan notes are
repayable in March 2017. The coupon on all notes is the higher of
7.5% or 3% above LIBOR for the first three years and increases in
April 2015 to 12.5%.
On the basis of enquiries made by the Directors and in the light
of current financial projections and facilities available, the
Directors have 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 the accounts.
Delisting
The size of the Company and the lack of liquidity of the market
in the Company's shares has led the Directors to undertake a review
of the merits or otherwise of the Company continuing to be admitted
to trading on AiM. After careful consideration, the Directors have
concluded that it is no longer in the interests of the Company to
retain its admission on AIM and that a proposal to cancel Admission
should be made to the Shareholders at the General Meeting. Further
details will be outlined in a Circular that will be sent to
Shareholders shortly.
Outlook
We remain committed to building Chuggington into an evergreen
pre-school global train property. We have built a significant
library of content and secured strong global broadcast distribution
which is further enhanced by our recently concluded SVOD deals. We
feel our content aligned to some great toy product will help us
achieve our strategic aim.
Ludorum plc
Unaudited consolidated statement of comprehensive income
for the six months ended 30 September 2014
Six months Six months
Notes ended ended
30 September 30 September
2014 2013
GBP000 GBP000
-------------------------------- -------- -------------- --------------
Continuing operations
-------------------------------- -------- -------------- --------------
Revenue 2 2,034 2,526
-------------------------------- -------- -------------- --------------
Cost of sales (1,411) (1,704)
-------------------------------- -------- -------------- --------------
Gross profit 623 822
-------------------------------- -------- -------------- --------------
Administrative expenses (515) (817)
-------------------------------- -------- -------------- --------------
Operating profit 108 5
-------------------------------- -------- -------------- --------------
Finance cost - bank and
loan interest (119) (67)
-------------------------------- -------- -------------- --------------
Finance income - bank interest - -
-------------------------------- -------- -------------- --------------
Net finance cost (119) (67)
-------------------------------- -------- -------------- --------------
(Loss) / profit before
taxation (11) (62)
-------------------------------- -------- -------------- --------------
Taxation (46) (18)
-------------------------------- -------- -------------- --------------
(Loss) / profit for the
period (57) (80)
-------------------------------- -------- -------------- --------------
Other comprehensive income:
foreign exchange differences (1) (2)
-------------------------------- -------- -------------- --------------
Total comprehensive income
for the period (58) (82)
-------------------------------- -------- -------------- --------------
Basic (loss) / earnings
per share (0.58)p (0.81)p
-------------------------------- -------- -------------- --------------
Ludorum plc
Unaudited consolidated balance sheet as at 30 September 2014
Notes 30 September 31 March 30 September
2014 2014 2013
------------------------- ------ ------------- ---------- -------------
GBP000 GBP000 GBP000
------------------------- ------ ------------- ---------- -------------
Assets
------------------------- ------ ------------- ---------- -------------
Non -current
assets
------------------------- ------ ------------- ---------- -------------
Property, plant
and equipment - - 1
------------------------- ------ ------------- ---------- -------------
Intangible assets 3 4,366 4,493 4,234
------------------------- ------ ------------- ---------- -------------
4,366 4,493 4,235
------------------------- ------ ------------- ---------- -------------
Current assets
------------------------- ------ ------------- ---------- -------------
Trade and other
receivables 1,270 1,791 1,462
------------------------- ------ ------------- ---------- -------------
Overseas tax
receivable 47 34 51
------------------------- ------ ------------- ---------- -------------
Cash and cash
equivalents 437 328 437
------------------------- ------ ------------- ---------- -------------
1,754 2,153 1,950
------------------------- ------ ------------- ---------- -------------
Liabilities
------------------------- ------ ------------- ---------- -------------
Current Liabilities
------------------------- ------ ------------- ---------- -------------
Trade and other
liabilities (2,719) (3,184) (2,917)
------------------------- ------ ------------- ---------- -------------
Borrowings 4 (978) (984) (994)
------------------------- ------ ------------- ---------- -------------
(3,697) (4,168) (3,911)
------------------------- ------ ------------- ---------- -------------
Net current liabilities (1,943) (2,015) (1,961)
------------------------- ------ ------------- ---------- -------------
Non - current
liabilities
------------------------- ------ ------------- ---------- -------------
Borrowings 4 (2,750) (2,750) (2,750)
------------------------- ------ ------------- ---------- -------------
Net liabilities (327) (272) (476)
------------------------- ------ ------------- ---------- -------------
Shareholders'
equity
------------------------- ------ ------------- ---------- -------------
Ordinary shares 88 88 88
------------------------- ------ ------------- ---------- -------------
Deferred shares 50 50 50
------------------------- ------ ------------- ---------- -------------
Share premium 9,296 9,296 9,296
------------------------- ------ ------------- ---------- -------------
Share based payments
reserve 2,362 2,359 2,343
------------------------- ------ ------------- ---------- -------------
Foreign currency
translation (28) (27) (10)
------------------------- ------ ------------- ---------- -------------
Accumulated losses (12,095) (12,038) (12,243)
------------------------- ------ ------------- ---------- -------------
Total shareholders'
equity (327) (272) (476)
------------------------- ------ ------------- ---------- -------------
Ludorum plc
Unaudited statement of changes in shareholders' equity
Share Share Accumulated Share-based Foreign Total
Capital Premium losses payments currency deficit
reserve translation
--------------------- --------- --------- ------------ ------------ ------------- ---------
30 September Sept Sept Sept Sept Sept Sept
2014 14 14 14 14 14 14
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------------- --------- --------- ------------ ------------ ------------- ---------
At 31 March
2014 138 9,296 (12,038) 2,359 (27) (272)
--------------------- --------- --------- ------------ ------------ ------------- ---------
Loss for the
period - - (57) - - (57)
--------------------- --------- --------- ------------ ------------ ------------- ---------
Other comprehensive
income:
Foreign exchange
differences - - - - (1) (1)
--------------------- --------- --------- ------------ ------------ ------------- ---------
Total comprehensive
income
for the period
to 30 Sept 2014 - - (57) - (1) (58)
--------------------- --------- --------- ------------ ------------ ------------- ---------
Transactions
with owners
--------------------- --------- --------- ------------ ------------ ------------- ---------
Charge relating
to incentive
option plan - - - 3 - 3
--------------------- --------- --------- ------------ ------------ ------------- ---------
At 30 September
2014 138 9,296 (12,095) 2,362 (28) (327)
--------------------- --------- --------- ------------ ------------ ------------- ---------
Share Share Accumulated Share-based Foreign Total
Capital Premium losses payments currency deficit
reserve translation
--------------------- --------- --------- ------------ ------------ ------------- ---------
30 September Sept Sept Sept Sept Sept Sept
2013 13 13 13 13 13 13
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------------- --------- --------- ------------ ------------ ------------- ---------
At 31 March
2013 138 9,296 (12,163) 2,318 (8) (419)
--------------------- --------- --------- ------------ ------------ ------------- ---------
Profit for the
period - - (80) - - (80)
--------------------- --------- --------- ------------ ------------ ------------- ---------
Other comprehensive
income:
Foreign exchange
differences - - - - (2) (2)
--------------------- --------- --------- ------------ ------------ ------------- ---------
Total comprehensive
income
for the period
to 30 Sept 2013 - - (80) - (2) (82)
--------------------- --------- --------- ------------ ------------ ------------- ---------
Transactions
with owners
--------------------- --------- --------- ------------ ------------ ------------- ---------
Charge relating
to incentive
option plan - - - 25 - 25
--------------------- --------- --------- ------------ ------------ ------------- ---------
At 30 September
2013 138 9,296 (12,243) 2,343 (10) (476)
--------------------- --------- --------- ------------ ------------ ------------- ---------
Ludorum plc
Unaudited consolidated cash flow statement for the six months
ended 30 September 2014
Six months Six months
ended ended
30 September 30 September
2014 2013
GBP000 GBP000
----------------------------------- -------------- --------------
Cash flows from operating
activities
----------------------------------- -------------- --------------
Cash generated from / (used
in) operations 430 (75)
----------------------------------- -------------- --------------
Interest paid (119) (67)
----------------------------------- -------------- --------------
Taxation paid (46) (18)
----------------------------------- -------------- --------------
Net cash generated from
/ (used in) operating activities 265 (160)
----------------------------------- -------------- --------------
Cash flows from investing
activities
----------------------------------- -------------- --------------
Investment in intangible
assets (150) (385)
----------------------------------- -------------- --------------
Net cash used in investing
activities (150) (385)
----------------------------------- -------------- --------------
Cash flows from financing - -
activities
----------------------------------- -------------- --------------
Net increase / (decrease)
in cash and cash equivalents 115 (545)
----------------------------------- -------------- --------------
Cash, cash equivalents
and bank overdraft at 31
March (656) (12)
----------------------------------- -------------- --------------
Cash, cash equivalents
and bank overdraft at 30
September (541) (557)
----------------------------------- -------------- --------------
Ludorum plc
Notes to the consolidated interim financial statements for the
six months ended 30 September 2014
1. Accounting policies
General Information
The Company is a public limited company incorporated and
domiciled in the United Kingdom. The address of its registered
office is 10 The Old Power Station, 121 Mortlake High Street,
London SW14 8SN. The registered number is 5595899. This Company is
listed on AIM.
The condensed consolidated interim financial information was
approved for issue on 10 December 2014.
Basis of preparation
The condensed consolidated interim financial information should
be read in conjunction with the annual financial statements for the
year ended 31 March 2014, which have been prepared in accordance
with IFRSs.
The condensed consolidated interim financial information has not
been reviewed or audited by the Company's auditors and does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006. Statutory accounts for the year ended 31
March 2014 were approved by the Board for issue on 23 June 2014 and
have been delivered to the Registrar of Companies. The auditors'
report on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under sections 498 (2) or (3) of the Companies Act 2006.
Accounting policies
The accounting policies applied are consistent with those of the
annual financial statements for the year ended 31 March 2014, as
described in those financial statements.
2. Segmental analysis
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 Chief Operating Decision
Maker ("CODM") is in a format similar to the Consolidated Statement
of Comprehensive Income and Consolidated Balance Sheet. The CODM is
considered to be the Board of Directors.
Revenue by product line
Six months Six months
ended ended
30 September 30 September
2014 2013
GBP000 GBP000
------------------- -------------- --------------
Television 509 428
------------------- -------------- --------------
Consumer Products 1,525 2,098
------------------- -------------- --------------
2,034 2,526
------------------- -------------- --------------
Geographical analysis of revenue by location of customer
Six months Six months
ended ended
30 September 30 September
2014 2013
GBP000 GBP000
------------------------- -------------- --------------
United Kingdom, Europe,
Middle East & Africa 1,060 1,144
------------------------- -------------- --------------
Asia & Australasia 261 413
------------------------- -------------- --------------
Americas 713 969
------------------------- -------------- --------------
2,034 2,526
------------------------- -------------- --------------
All material assets are located in the UK.
3. Intangible assets
Capitalised
development
costs
-------------------------------- -------------
GBP000
-------------------------------- -------------
30 September 2014
-------------------------------- -------------
Cost
-------------------------------- -------------
At 1 April 2014 7,209
-------------------------------- -------------
Additions 373
-------------------------------- -------------
At 30 September 2014 7,582
-------------------------------- -------------
Accumulated amortisation
-------------------------------- -------------
At 1 April 2014 2,716
-------------------------------- -------------
Charge for the period 500
-------------------------------- -------------
At 30 September 2014 3,216
-------------------------------- -------------
Net book value at 30 September
2014 4,366
-------------------------------- -------------
Capitalised
development
costs
-------------------------------- -------------
GBP000
-------------------------------- -------------
30 September 2013
-------------------------------- -------------
Cost
-------------------------------- -------------
At 1 April 2013 5,880
-------------------------------- -------------
Additions 622
-------------------------------- -------------
At 30 September 2013 6,502
-------------------------------- -------------
Accumulated amortisation
-------------------------------- -------------
At 1 April 2013 1,924
-------------------------------- -------------
Charge for the period 344
-------------------------------- -------------
At 30 September 2013 2,268
-------------------------------- -------------
Net book value at 30 September
2013 4,234
-------------------------------- -------------
4. Borrowings
The following borrowings are included in trade and other
liabilities:
30 September 31 March 30 September
2014 2014 2013
------------------- ------------- --------- -------------
GBP000 GBP000 GBP000
------------------- ------------- --------- -------------
Bank overdraft 978 984 994
------------------- ------------- --------- -------------
Loans 2,750 2,750 2,750
------------------- ------------- --------- -------------
3,728 3,734 3,744
------------------- ------------- --------- -------------
Undrawn borrowing
facilities
------------------- ------------- --------- -------------
Bank overdraft 134 49 34
------------------- ------------- --------- -------------
The Company has overdraft facilities of GBP750,000 from Coutts
& Co. With effect from 1 December 2014, the overdraft
facilities were reduced to GBP500,000. The overdraft is secured by
a first charge over the Company's assets (including the Company's
intellectual property). Ludorum has the legal right to set off
balances within the Group.
The Company has GBP2.75m of loan notes held by client funds of
Downing LLP and D C Thomson & Co Limited. The loan notes are
repayable in March 2017. The coupon on all notes is the higher of
7.5% or 3% above LIBOR for the first three years and increases in
April 2015 to 12.5%.
5. Related party transactions
Included in trade and other liabilities at 30 September 2014 is
GBP135,000 in respect of unpaid remuneration (and the associated
employer's National Insurance payable) owed to directors of the
Company (30 September 2013: GBP135,000, 31 March 2014: GBP135,000).
Also included in trade and other liabilities at 30 September 2014
are accrued pension costs owed to the directors of GBP121,000 (30
September 2013: GBP97,000, 31 March 2014: GBP109,000).
6. Commitments
In 2007 the Company entered into an agreement with Tomy, a toy
manufacturer, under the terms of which Tomy 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 Company
and Tomy have now jointly funded the production of four series,
comprising 118 x 10 minute episodes and 46 x 4 minute episodes of
Chuggington. The Company and Tomy have also agreed to produce a
fifth series of 10 episodes. Production of the series commenced in
2013 and it is expected to be delivered in 2015. The budget is $3m.
Tomy has agreed to initially fund 100% of the costs of the series
and recover the Company's half share of the production costs from a
reduced toy royalty payment commencing January 2015.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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