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DCD Media PLC - Trading Update

RNS Number : 9666D
DCD Media PLC
25 February 2020
 

DCD Media Plc

 

("DCD Media", the "Company" or the "Group")

 

Trading Update

 

DCD Media, the independent TV distribution and production group, provides the following unaudited trading update for the twelve-month period ended 31 December 2019 ahead of releasing audited financial statements for the fifteen-month period to 31 March 2020 by 31 August 2020.

 

Financial highlights (unaudited)

 

·      Revenue                               £8.98m (2018: £7.05m)

·      Gross profit                           £1.78m (2018: £1.64m)

·      Operating profit/(loss)           £0.02m (2018: (£0.07m))

·      Net Cash                               £1.59m (2018: £2.28m)

 

At the 31 December, the Group had an available gross overdraft facility of £300k and a net facility of £150k.

 

 

Operational highlights

 

·      The fifth series of Penn & Teller: Fool Us in Vegas was transmitted in H1 2019. The highly successful series is a co-production between 1/17 Productions and September Films for The CW Network in the USA.

 

·      DCD Rights renewed its output deal with The Open University to distribute their prestigious factual catalogue of 160 hours of diverse and engaging factual programming.

 

·      DCD Rights further extended its producer support initiative to over 100 hours of programming since its launch. DCD secured production funding for four additional factual series created by UK and International independents.

 

·      DCD Rights announced multiple sales of its recently launched titles On The Ropes (Screen Media Ventures/Crackle), Inspector Rojas (Rialto Channel & SBS Australia) and The Hunting (Channel 5, Sky New Zealand, RTE Ireland, CBC Canada, IVI Russia and NPO Netherlands). DCD also debuted its brand-new drama series' The Secrets She Keeps, Dry Water and Find My Killer.

 

·      DCD Rights' popular factual titles were sold across the globe; Secret Nazi Bases (Foxtel Australia, A&E in CEE and Scandinavia, Prima Group in Czech Republic, Emirates Cable TV E-Vision for the Middle East, True Visions in Thailand, ProSiebenSat.1 for German Speaking Europe and Discovery Communications for Spain), The Nile (SBS Australia, Viasat World for Central and Eastern Europe, Scandinavia, Russia and CIS, Dazzler Media in the UK & Eire, Choice TV NZ, Expressive Media for Spain & Andorra and True Visions in Thailand).

 

·      A new factual slate was also announced for MIPCOM.

 

·      DCD's short form drama Find My Killer won at the Asian Academy Creative Awards.

 

·      The Hunting won 2 awards at the AACTA Awards for Best Screenplay in Television (EP 3) and Richard Roxburgh won Best Guest or Supporting Actor in A Television Drama.

 

·      The 1/17 and September Films co-production partnership successfully continued with the summer transmission of season 5 to strong ratings and continued network enthusiasm for the brand.

 

Current trading and outlook

 

The business has had a steady start to 2020 with a quiet first quarter as has tended to be the case for the first quarter of the year for the Company.

 

David Craven, Executive Chairman, commented: 'We are pleased with the results for the twelve months to 31 December 2019 with the Company delivering a steady performance, increasing revenues by 27% and returning a small profit for the period. The business continued to invest in new programming with continued support from its primary funding partner.

 

'The Board believes that with further funding available to DCD Media, we will create a quality company, capable of strong and predictable cash generation, sustainable returns on capital with attractive growth opportunities in this exciting, expanding market place. The continued consumer demand to enjoy personalised and tailored TV content across multiple platforms is providing tailwinds for the industry as a whole.

'Reaching funding agreements with partners at the lowest possible cost provides DCD Media with a competitive advantage, The Board continues to work to provide access to competitively priced debt in the marketplace. The outlook for the remainder of the trading period to 31 March 2020 remains positive.'

Financial Review

 

Revenues for the twelve months to 31 December 2019 were £8,975k (2018: £7,051k). Revenues across the Rights and Distribution division of the business have increased by 27% over the year while the remaining revenue in other group companies has remained steady.

 

Direct costs have increased 33% to £7,200k (2018: £5,411k) and gross profit by 8% to £1,776k (2018: £1,640k) as a result of the increased revenue activity. Administrative costs have increased 3% year-on-year as a result of general rises in rates along with some changes in personnel costs. The business continually reviews its cost base to look for ways to reduce this where possible without hindering the operations of the business. The board remains committed to ensuring the cost base is appropriately managed, given the current scale of the business.

 

We continue to benefit from funding support from our existing external finance provider and our major shareholder, Timeweave. The funding support from both funders allows us to be competitive in the tender process for new titles and content, while we add to our burgeoning catalogue. We continue to work diligently in the marketplace to help secure and diversify our funding options.

 

Intangible assets as at 31 December 2019 stood at £1,017k (2018: £1,017k). There has been no movement in the balance since 2017 with carrying values fully justified through future cashflows of the businesses.

 

Trade and other receivables and trade and other payables at £9,637k (2018: £9,350k) and £9,388k (2018: £9,769k) respectively. Debtors are up 3% on the previous year while creditors are down 4% accordingly.

 

Cash on hand at the period end stood at £1,590k (2018: £2,276k). 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.

 

 

Consolidated income statement for the twelve-month period ended 31 December 2019

 

 

 

 

 

(unaudited) 12 month period ended

31 December

2019

12 month period ended

31 December

2018

 

 

£'000

£'000

 

 

 

 

Revenue

 

8,975

7,051

 

 

 

 

Cost of sales

 

(7,199)

(5,392)

Impairment of programme rights

 

-

(19)

 

 

(7,199)

(5,411)

 

 

 

 

Gross profit

 

1,776

1,640

 

 

 

 

Administrative expenses:

 

 

 

- Other administrative expenses

 

(1,759)

(1,715)

- Amortisation of trade names

 

-

-

 

 

 

 

 

 

(1,759)

(1,715)

 

 

 

 

Operating (loss)/profit

 

17

(75)

 

 

 

 

Finance costs

 

2

17

 

 

 

 

(Loss)/profit before taxation

 

19

(58)

 

 

 

 

Taxation

 

-

(13)

 

 

 

 

(Loss)/profit after taxation from continuing operations

 

19

(71)

 

 

 

 

Profit/(loss) on discontinued operations net of tax

 

-

35

 

 

 

 

(Loss)/profit for the financial year

 

19

(36)

 

 

 

Consolidated statement of financial position as at 31 December 2019

 

 

 

 

 

(unaudited)

As at

31 December

2019

As at

31 December

2018

 

 

£'000

£'000

Non-current assets

 

 

 

Goodwill

 

1,017

1,017

Property, plant and equipment

 

22

27

Trade and other receivables

 

306

279

 

 

1,345

1,323

Current assets

 

 

 

Trade and other receivables

 

9,331

9,071

Cash and cash equivalents

 

1,590

2,276

 

 

 

 

 

 

10,921

11,347

 

 

 

 

Total assets

 

12,266

12,670

 

 

 

 

Current liabilities

 

 

 

Trade and other payables

 

(9,388)

(9,769)

Taxation and social security

 

-

(42)

 

 

 

 

 

 

(9,388)

(9,811)

 

 

 

 

Total liabilities

 

(9,388)

(9,811)

 

 

 

 

Net assets

 

2,878

2,859

 

 

 

 

Equity

 

 

 

Equity attributable to owners of the parent

 

 

 

Share capital

 

12,272

12,272

Share premium account

 

51,215

51,215

Equity element of convertible loan

 

-

-

Own shares held

 

(37)

(37)

Retained earnings

 

(60,572)

(60,591)

 

 

 

 

Equity attributable to owners of the parent

 

2,878

2,859

 

 

 

 

Total equity

 

2,878

2,859

 

 

 

 

 

 

Cash flow from operating activities including discontinued operations

 

 

 

 

 

(unaudited) 12 month period ended

31 December 2019

12 month period ended

31 December 2018

 

 

£'000

£'000

 

 

 

 

Net profit/(loss) before taxation

 

19

(23)

Adjustments for:

 

 

 

Depreciation of tangible assets

 

25

29

Amortisation and impairment of intangible assets

 

-

19

Net bank and other interest charges

 

(2)

(17)

Corporation tax

 

-

(14)

 

 

 

 

Net cash flows before changes in working capital

 

42

(6)

 

 

 

 

Decrease/(increase) in trade and other receivables

 

(287)

1,650

(Decrease)/increase in trade and other payables

 

(423)

(651)

 

 

 

 

Cash from continuing operations

 

(668)

993

 

 

 

 

Cash flow from discontinued operations

 

 

 

 

 

 

 

Net profit before taxation

 

-

35

Adjustments for:

 

 

 

(Profit)/loss on discontinued operations

 

-

(35)

Net cash flows before changes in working capital

 

-

-

 

 

 

 

Cash from discontinued operations

 

-

-

 

 

 

 

Cash from operations

 

(668)

993

 

 

 

 

Interest received

 

2

-

 

 

 

 

Net cash flows from operating activities

 

(666)

993

 

 

 

 

Investing activities

 

 

 

Purchase of property, plant and equipment

 

(20)

(21)

 

 

 

 

Net cash flows used in investing activities

 

(20)

(21)

 

 

 

 

Financing activities

 

 

 

Settlement of convertible loans

 

-

(19)

 

 

 

 

Net cash flows from financing activities

 

-

(19)

 

 

 

 

Net increase/(decrease) in cash

 

(686)

953

 

 

 

 

Cash and cash equivalents at beginning of year

 

2,276

1,323

 

 

 

 

Cash and cash equivalents at end of year

 

1,590

2,276

 

 

 

 

Financial expectations noted above are preliminary, and subject to the fifteen-month period-end financial close and audit review processes. DCD Media intends to issue its results for the fifteen-month period to 31 March 2020, by 31 August 2020 at which point a more detailed update will be provided.

 

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

 

For further information please contact:

 

David Craven

Lucy Pryke

Investor Relations/ Media Relations

DCD Media plc

 

Tel: +44 (0)20 3869 0190

[email protected]

 

Carl Holmes / Giles Rolls

finnCap

Tel: +44 (0)20 7220 0500


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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