TIDMIFM
RNS Number : 4660U
Intandem Films PLC
22 December 2011
22 December 2011
INTANDEM FILMS PLC
("Intandem" or the "Company")
Final Results
Intandem Films Plc, the London based international film group,
is pleased to announce its Final Results for the year ended 30 June
2011.
Financial Highlights
-- Revenue for the period increased to GBP469,482 from GBP425,153 (2010)
-- Operating loss reduced to GBP436,939 from GBP642,047 (2010)
-- Loss before tax is GBP464,473 compared to a profit of
GBP3,314,404 (2010) which included the one off sale of a film
asset
-- Loss per share of 0.42p compared to a profit per share of 3.72p
Post Period Highlights
-- Robert Mitchell appointed to the Board as Non-Executive Director
-- Appointed as international sales company for $28m budget film
'The True Confessions of Charlotte Doyle'
-- Appointed international sales company for $20m budget thriller 'Lucidity'
-- Signed collaboration agreement with IFA Films to distribute
its films throughout the world (excluding North America)
-- Raised GBP578,400 through a Placing of 9,640,000 new ordinary
shares at 6p per share in July 2011
Commenting on the results, CEO of Intandem, Gary Smith said:
"The Board believes that despite the difficult global economic
conditions, the film industry currently offers many opportunities
for a company like Intandem to achieve significant growth. Intandem
has a very clear strategy and a sustainable business model. We have
worked, and will continue to work, diligently in increasing the
quality and number of films we represent.
Intandem's objective is to be one of the World's leading
independent film companies within the next five years which means
generating significantly higher revenues and profits."
-END-
Intandem Films plc Tel: 020 7851 3800
Gary Smith, Chief Executive
Nominated Adviser
Northland Capital Partners Limited Tel: 020 7796 8800
Luke Cairns/Rod Venables
Broker
Rivington Street Corporate Finance Tel: 020 7562 3384
Dru Edmonstone/Jon Levinson
Financial PR
Bishopsgate Communications Tel: 020 7562 3350
Deepali Schneider/Natalie Quinn
intandem@bishopsgatecommunications.com
Intandem Films plc
Chairman's Statement
This financial year has been positive for Intandem as we
continue towards becoming a profitable company. We have built on
our efforts last year and now have a slate of new film scripts to
which Intandem has been appointed sales agent which consists of
over 20 films with estimated total budgets in excess of
$250million.
Results
During the year, two new films generated commission income and
since the year end three additional films have commenced production
and are now in post production which will earn commission income
for the current financial year. As a result, turnover increased by
10% to GBP469,482 compared with GBP425,153 for the previous year. A
number of our film projects were delayed for various reasons,
however we expect to see revenues from these films from the current
financial year.
The operating loss, which included a charge of GBP90,564 for
share option accounting and a write down of GBP40,783 against film
assets, was reduced from GBP642,047 to GBP436,939. Loss before tax
was GBP464,473 against a profit of GBP3,314,404 in 2010. Last
year's profit included a one-off benefit of GBP3,924,647 as a
result of selling a film asset. The Board is conscious of the need
to generate higher revenues to stem the operating losses and the
directors are implementing a strategy that we believe will lead to
sustained profitability.
Film Activity
During the period, Intandem was appointed as international sales
company for nine new films. Two were completed during the year,
'The Veteran' and 'Screwed'.
In February 2011, Intandem was appointed as international sales
company for 'K-11', a psychological thriller set in the Los Angeles
County's Men's Central Jail. The film is now in post production and
is scheduled to premiere in February 2012 at the Berlin Film
Festival.
Other films which started production include 'Comes a Bright
Day' which stars emerging talent Imogen Poots and Craig Roberts
alongside industry veterans Timothy Spall and Kevin McKidd and
'Ecstasy', based on the novel of the same name by Irvine Welsh. In
addition, the Company has helped to close the financing on the 3D
thriller, 'Glimmer' which is expected to start production in the
first quarter of 2012.
In May 2011, Intandem signed an agreement with Mary Alice
Productions for the production and international sales of a slate
of films in the $20 million-$40 million budget range. Intandem is
currently working with Mary Alice to close the finance for the
first two films under the arrangement, 'Section 8', a $25million
comedy and 'Tupac', a $15m documentary film.
Post Period Film Activity
Since the year end, Intandem has been appointed as international
sales company for Danny De Vito's $28m dollar budget action family
film 'The True Confessions of Charlotte Doyle', for which it is
working with the producers in sourcing finance, and $20m budget
thriller 'Lucidity', which is being fully financed through the
producers. These appointments are aligned with our strategy to
represent larger budget films and we look to continue this in the
next financial year.
In addition, the Company closed an agreement with California
based IFA Films ("IFA") for IFA to supply Intandem with films for
representation for sales outside North America. IFA will release
the films in North America.
Current Strategy and Objectives
Intandem's objective is to be one of the World's leading
independent film companies within the next five years which means
generating significantly higher revenues and profits. We will do
this by representing bigger films to generate more Executive
Producer fees and commission income on international sales and by
widening the scope of our business within the film industry.
The key to achieving our objective is to represent larger budget
films which have worldwide appeal and to exploit the maximum
distribution rights possible. The Board's target is to build its
catalogue of new films at the rate of at least six films per annum
with an average budget of GBP10million. This would result in thirty
new films with budgets of GBP300million in the next five years.
The following action has been taken as part of our strategy of
becoming a leading film company.
Increased presence in Los Angeles
Los Angeles is the centre of the film industry with all the top
distributors, producers, financiers, agents and talent having
representation in the city. During 2011, I have personally spent
much more time in Los Angeles to negotiate rights in larger budget
films and as a result, in April, the Company took out a lease on a
property in Santa Monica.
There is no doubt that there is demand from film distributors
around the world for American, commercial feature films which can
attract "star" talent and achieve a wide cinema release. These are
the types of films we are aiming to supply to our international
clients.
One of the reasons for the loss in the year to 30 June 2011 is
that some of the films which we had expected to start production
were delayed for various reasons. We are working hard with each of
the film's producers to convert the film projects into completed
films and we have a tremendous opportunity to create a valuable
library of new and exciting film titles. Many of the films will
have major film stars attached to them which will increase the
chances of achieving a cinema release throughout the world,
resulting in significantly higher revenues.
Greater control over the financing of films
Some of the delays in production during the year were as a
result of challenges to film financing. During a period of tight
controls over credit in world financial markets, it is not
surprising that capital projects such as film production have
suffered. Despite these setbacks, we believe that a balanced
portfolio of quality, commercial film assets represents an
attractive alternative investment opportunity for investors.
Intandem has a policy of not investing its own resources into
film production. However, we are investigating the possibility of
setting up a film fund which would be managed by Intandem. The
Board has taken the first steps in preparing a funding document
with the intention of raising funds to speed up the process of
taking a film project from the script stage into production.
The objective is to increase our chances in achieving a minimum
of at least GBP60million of new films each year.
New opportunities as a result of the digital revolution
The film industry is a major beneficiary of new technology and
Intandem intends to take advantage of the opportunities available
to it. The main changes affect how film assets can be distributed
with a multitude of digital platforms opening up throughout the
world. The platforms include cinema, television through video on
demand, and all mobile technology.
As well as increasing the number of distribution outlets, the
new technology greatly reduces the costs of distribution,
especially with regards to video on demand.
In addition, the marketing of films can be much more effective
on a worldwide basis thanks to the plethora of social networks
which are opening. During the year, Intandem carried out detailed
research into how to maximise the use of social networks in the
marketing of its films.
Strengthened Board
As part of the Company's strategy to exploit the increased
distribution opportunities open to it, the Board appointed Robert
Mitchell as a non executive director in November 2011. Robert is
one of the most experienced film distributors in the UK. He was
formerly the Managing Director of Buena Vista UK, the distribution
arm of Walt Disney Studios.
Robert has experience of releasing a wide range of films
including 'Pirates of the Caribbean , 'Toy Story' and 'The Boy in
the Striped Pyjamas'. He has been responsible for releasing eight
out of the top forty two films ever released in the UK. Robert has
a wide network of contacts throughout the film industry and we are
delighted to have attracted him to the Board and are looking
forward to him making a valuable contribution to the future growth
of Intandem.
We will continue to look to strengthen our Board as we strive to
achieve our objective of becoming one of the World's leading
independent film companies.
Future Prospects
The Board believes that despite the difficult global economic
conditions, the film industry currently offers many opportunities
for a company like Intandem to achieve significant growth. Intandem
has a very clear strategy and a sustainable business model. We have
worked, and will continue to work, diligently in increasing the
quality and number of films we represent. Our aim is to increase
the conversion rate from script to production during 2012. This
will initially increase the level of Executive Producer fees earned
and will subsequently increase the value of sales commission
generated as the films complete production.
We will continue to look for new sources of revenues which
complement our existing business of Executive Production and
International Film Sales and will grow the business in a controlled
manner.
Finally, I would like to say a big thank you to the shareholders
who supported a fundraising of GBP578,400 in July 2011, and to our
employees who continue to work hard and conscientiously towards
meeting our objectives at a very exciting time for Intandem.
You can follow the progress of Intandem on
www.intandemfilms.com
Gary Smith
Chairman
22 December 2011
INTANDEM FILMS PLC
Consolidated and Company statement of financial position
as at 30 June 2011
Group Company
-------------------------- ----------------------
2011 2010 2011 2010
Notes GBP GBP GBP GBP
------------------------------ ------- ------------ ------------ ---------- ----------
Assets
Non-current assets
Property, plant and
equipment 15,245 18,447 - -
Investment in subsidiaries - - 223,152 223,152
Financial assets 100 100 - -
Intercompany loan - - 1,959,049 1,448,998
--------------------------------------- ------------ ------------ ---------- ----------
15,345 18,547 2,182,201 1,672,150
Current assets
Trade receivables 209,726 154,571 - -
Other receivables 342,650 251,994 1 1
Cash and cash equivalents 10,227 78,268 - -
544,603 484,833 1 1
-------------------------------------- ------------ ------------ ---------- ----------
Total assets 559,948 503,380 2,182,202 1,672,151
--------------------------------------- ------------ ------------ ---------- ----------
Equity and liabilities
Capital and reserves
Share capital 117,075 105,675 117,075 105,675
Share premium 2,440,414 1,767,814 2,440,414 1,767,814
Merger reserve 252,506 252,506 - -
Foreign exchange reserve (359,172) (399,491) - -
Retained earnings (2,545,028) (2,171,120) (533,163) (384,214)
(94,205) (444,616) 2,024,326 1,489,275
Non-current liabilities
Deferred income 11,644 16,557 - -
Intercompany loan - - 157,876 157,876
Convertible loan notes - - - -
Loan note - - - -
11,644 16,557 157,876 157,876
Current liabilities
Trade and other payables 642,509 931,439 - 25,000
642,509 931,439 - 25,000
-------------------------------------- ------------ ------------ ---------- ----------
Total liabilities 654,153 947,996 157,876 182,876
--------------------------------------- ------------ ------------ ---------- ----------
Total equity and liabilities 559,948 503,380 2,182,202 1,672,151
--------------------------------------- ------------ ------------ ---------- ----------
The financial statements were approved by the Board and signed
on its behalf on 22 December 2011.
Gary Smith William Hurman
Chairman Director
INTANDEM FILMS PLC
Consolidated income statement
for the year ended 30 June 2011
Group
2011 2010
Notes GBP GBP
----------------------------------------- ------- ---------- -----------
Revenue
Executive producer fees 25,833 -
Commissions 255,036 144,091
Recoverable project costs 180,769 176,138
Other income 7,844 104,924
469,482 425,153
Cost of sales
Recoverable expenses (180,769) (176,138)
Amortisation of film asset - (4,513)
-------------------------------------------------- ---------- -----------
Gross profit 288,713 244,502
Overheads
Staff costs (323,723) (337,531)
Depreciation (7,525) (6,911)
Other external charges (394,404) (542,107)
(Loss) from operations (436,939) (642,047)
Other operating income - 3,924,647
Profit on sale of investment - 254,294
Finance costs (27,539) (233,719)
Interest income 5 11,232
(Loss)/Profit before tax (464,473) 3,314,404
Income tax expense - -
(Loss)/Profit for the year from
continuing operations (464,473) 3,314,404
-------------------------------------------------- ---------- -----------
(Loss)/Profit per share
Basic (0.42) 3.72 pence
pence
Diluted (0.42) 3.72 pence
pence
All the amounts derive from
continuing operations.
Consolidated statement of comprehensive
income
2011 2010
GBP GBP
----------------------------------------- ------- ---------- -----------
(Loss)/Profit for the year (464,473) 3,314,404
Foreign currency translation
differences 40,320 (156,274)
-------------------------------------------------- ---------- -----------
Total comprehensive (loss)/income
for the year (424,153) 3,158,130
-------------------------------------------------- ---------- -----------
INTANDEM FILMS PLC
Consolidated and Company statement of changes in equity
for the year ended 30 June 2011
Group Share Share Merger Foreign Retained Total
Capital Premium Reserve Exchange Earnings
Reserve
GBP GBP GBP GBP GBP GBP
---------------------------------------- ------------ -------------- ---------- ---------- ------------ ------------
Balance as at 1 July 2009 83,175 840,314 252,506 (243,217) (5,519,088) (4,586,310)
Changes in equity for the
year to 30 June 2010
Issue of new shares 22,500 927,500 - - - 950,000
Exchange differences on translation
of foreign currency balances - - - (156,274) - (156,274)
Credit on issue of share options - - - - 33,564 33,564
Profit for the year - - - 3,314,404 3,314,404
Total recognised income and
expense for the year 22,500 927,500 - (156,274) 3,347,968 4,141,694
Balance as at 30 June 2010 105,675 1,767,814 252,506 (399,491) (2,171,120) (444,616)
Changes in equity for the
year to 30 June 2011
Issue of new shares 11,400 672,600 - - - 684,000
Exchange differences on translation
of foreign currency balances - - - 40,320 - 40,320
Credit on issue of share options - - - - 90,564 90,564
Loss for the year - - - - (464,473) (464,473)
Total recognised income and
expense for the year 11,400 672,600 - 40,320 (373,909) 350,411
Balance as at 30 June 2011 117,075 2,440,414 252,506 (359,171) (2,545,029) (94,205)
---------------------------------------- ------------ -------------- ---------- ---------- ------------ ------------
Upon review, the retained earnings and foreign exchange reserve
which were amalgamated in the 2010 annual report, have been
separated as per previous years to show the separate components of
equity.
Company Share Share Retained Total
Capital Premium Earnings
GBP GBP GBP GBP
----------------------------- --------- ---------- ---------- ----------
Balance as at 1 July 2009 83,175 840,314 (255,396) 668,093
Changes in equity for the
year to 30 June 2010
Issue of new shares 22,500 927,500 - 950,000
Loss for the year - - (128,818) (128,818)
Total recognised income and
expense for the year - - (128,818) (128,818)
Balance as at 30 June 2010 105,675 1,767,814 (384,214) 1,489,275
Changes in equity for the
year to 30 June 2011
Issue of new shares 11,400 672,600 - 684,000
Loss for the year - - (148,949) (148,949)
Total recognised income and
expense for the year 11,400 672,600 (148,949) 535,051
Balance as at 30 June 2011 117,075 2,440,414 (533,163) 2,024,326
----------------------------- --------- ---------- ---------- ----------
INTANDEM FILMS PLC
Consolidated and Company cash flow statement
for the year ended 30 June 2011
Group
------------------------------------ -------- ---------- --------------------------
2011 2010 2009
Notes GBP GBP GBP
(restated) (restated)
------------------------------------ -------- ---------- ------------ ------------
Cash flows from operating
activities
Cash (used in)/from operating
activities (720,184) (563,647) (31,420)
Interest paid (27,539) (233,719) (925,407)
---------------------------------------------- ---------- ------------ ------------
(747,723) (797,366) (956,827)
Cash flows from investing
activities
Purchases of property, plant
and equipment (4,323) (22,121) (2,510)
Investment in associate company - 254,291 -
Interest received 5 11,232 10,321
---------------------------------------------- ---------- ------------ ------------
Net cash (used in)/from investing
activities (4,318) 243,402 7,811
Cash flows from financing
activities
Issue of new ordinary shares 684,000 500,000 -
Net proceeds from financing - - -
of film assets
Issue / Repayment of loans - (181,785) 181,785
Proceeds on issue of convertible
loan notes - - 82,500
---------------------------------------------- ---------- ------------ ------------
Net cash from financing activities 684,000 318,215 264,285
Effects of exchange rate changes
on cash balances 198,506
Net increase/(decrease) in
cash and cash equivalents (68,041) (235,749) (486,225)
Cash and cash equivalents
at beginning of year 78,268 314,017 800,242
---------------------------------------------- ---------- ------------ ------------
Cash and cash equivalents
at end of year 10,227 78,268 314,017
---------------------------------------------- ---------- ------------ ------------
Bank balances and cash 10,227 78,268 314,017
---------------------------------------------- ---------- ------------ ------------
The 2009 cash flow statement has been restated and has been
included as a comparative in the 2011 annual report. Details of the
restatement are explained in note 2, Accounting Policies -
'Restatement of 2009 cash flow statement' on pages 19 and 20 of the
2011 annual report.
The 'Effects of exchange rate changes on cash balances' in the
2010 column previously stated a balance of GBP(205,940) in the 2010
annual report. This balance has been moved to Note 20 (Note to the
cash flow statement - see page 36) in the 2011 annual report.
The 2010 column has also been restated to show net proceeds of
GBP500,000 for 'issue of new ordinary shares' (GBP950,000 in the
2010 annual report). This is a result of the convertible loan notes
of GBP450,000 being converted into ordinary shares during the year
and has no effect on the closing cash position.
Company
------------------------------------ ----------------------
2011 2010
GBP GBP
------------------------------------ ---------- ----------
Cash flows from operating
activities
Cash (used in)/from operating
activities (676,000) (417,792)
Interest paid (8,000) (32,208)
------------------------------------ ---------- ----------
(684,000) (450,000)
Cash flows from investing
activities
Purchases of property, plant - -
and equipment
Investment in film assets - -
Investment in associate company - -
Investment in subsidiary company - -
Interest received - -
------------------------------------ ---------- ----------
Net cash (used in)/from investing - -
activities
Cash flows from financing
activities
Issue of new ordinary shares 684,000 500,000
Net proceeds from financing - -
of film assets
Issue / Repayment of loans - (50,000)
Net cash from financing activities 684,000 450,000
Net increase/(decrease) in - -
cash and cash equivalents
Cash and cash equivalents - -
at beginning of year
------------------------------------ ---------- ----------
Cash and cash equivalents - -
at end of year
------------------------------------ ---------- ----------
Bank balances and cash - -
------------------------------------ ---------- ----------
REPORT AND ACCOUNTS
The 2011 Annual Report will be posted to shareholders on 28
December 2011 and copies of the 2011 Annual Report will be
available on the Company website.
NOTICE OF ANNUAL GENERAL MEETING
Notice will be given that that the Annual General Meeting of
Intandem Films Plc (the "Company") will be held at 114-116 Charing
Cross Road, London, WC2H 0JR on 31 January 2012 at 12:00 noon.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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