RNS Number:8271X
Maverick Entertainment Group PLC
21 April 2004
For immediate release: Wednesday, 21 April 2004
Maverick Entertainment Group PLC
Preliminary Results for the year ended 31 December 2003
Maverick Entertainment Group PLC ("Maverick" or "the Company"), the AIM listed
company specialising in the creation, acquisition and development of IPR in
children's films, television programmes, characters and related entertainment
products, today announces its preliminary results for the year ended 31 December
2003.
Summary of the results
* Turnover declined to #256,000 (2002: #1,480,000) largely due to the
expiration of a significant DVD/video licensing agreement
* Loss before tax of #903,000 (2002: profit #261,000)
* Two new exclusive UK and Ireland DVD/video distribution agreements for
over 200 hours of programming including:
- Little Bear, Fairly Odd Parents, Rolie Polie Olie and George Shrinks
(Nelvana)
- 64 Zoo Lane, Pablo the Little Red Fox, Jasper the Penguin, Hilltop
Hospital (ITV) (Millimages)
* Commercial launch of Snailsbury Tales - videos, DVDs and books
available in May
* The BBC has commissioned a further 14 ten-minute episodes of Muffin
the Mule bringing the total number of episodes to 40
* 82 Bananas in Pyjamas live shows taking place between February and
December 2004, merchandising programme to be re-launched
* New 'in-house' publishing business launched
Outlook
We believe we have taken the appropriate steps to improve the Company's trading
position going forward. The strong focus on DVD/video distribution and book
publishing will give the Company a solid foundation from which to grow and we
are confident that we will see an improvement in 2004. Muffin the Mule and
Snailsbury Tales are important assets; there has been significant interest in
Muffin and we are confident that the new series of programmes and the associated
merchandise will be a success. Snailsbury Tales has been very popular with
audiences and we look forward to the further development and consolidation of
the intellectual property rights ("IPR") in these properties, both in terms of
merchandise and international sales. The Company's strategy remains the
investment, development and distribution of IPR, and the creation and
exploitation of our own long-term brands, which we believe will provide for the
continuing growth of the business.
For further information please contact
Maverick Entertainment Tavistock Communciations
Mike Diprose/ Sookra Raveendran Lulu Bridges/Katy Pratt
Tel: 21 April - 020 7920 3150 Tel: 020 7920 3150
thereafter 01844 260858
Email: info@maverickentertainment.co.uk Email: kpratt@tavistock.co.uk
Chairman's Statement
This statement contains the unaudited preliminary results of Maverick
Entertainment Group PLC for the year ended 31 December 2003. This is our third
set of full year results since our flotation on AIM in May 2001.
Financial Performance
It has been a challenging year for Maverick and our results, as reported in the
Board Change announcement of 6 February 2004, show the expected loss. However,
as stated at the time, the Board remains confident that the continuing outlook
for the Company is positive. The production of Muffin the Mule is on schedule
and on budget and the commercial launch of Snailsbury Tales videos/DVDs and
books is underway. We have also launched two new DVD/video catalogues as a
result of our exclusive UK and Ireland distribution agreements with Nelvana, a
subsidiary of the Canadian company Corus Entertainment, Inc., and Millimages
S.A., both of which were announced in September 2003. The Board believes that we
are well placed to drive the business forward.
For the year ended 31 December 2003 turnover declined by 82.7% to #256,000
(2002: #1,480,000). This resulted in a loss before tax of #903,000 compared to a
profit of #261,000 in 2002. Loss per share for the period was 0.4214p compared
to earnings per share of 0.1723p in 2002. These losses were, in part, due to the
expiration of a contract for the distribution rights to a significant DVD/video
catalogue and the subsequent loss of income. Although we have since replaced
this with new catalogues, as previously mentioned, revenue from these catalogues
will only start to impact in the current financial year. The agreement with
Nelvana is for the exclusive UK distribution rights for 33 series of programming
including titles such as Little Bear, Fairly Odd Parents and Rolie Polie Olie
which will start to come on stream in May 2004.
Additionally, the 2003 financial year included the first full year of
amortisation for Snailsbury Tales compared to seven months in 2002.
In 2004 and 2005, the Company will focus on its core business in DVD/ video
distribution and book publishing while continuing the production of Muffin the
Mule which is due to be delivered to the BBC in 2005. The Company will also be
reviewing its overheads and costs in line with business activity.
Snailsbury Tales
Snailsbury Tales, the Company's first animated production, was successfully
completed in May 2002 and was first broadcast in the UK and Australia in July
2002. The Company is particularly pleased with audience reaction to the
programme. Due to its success, Snailsbury Tales was re-broadcast by the BBC
between October and December 2003 and it again achieved high viewing figures. In
the period October to December 2003, when the programme was transmitted on BBC2,
it achieved average viewing figures of 226,000 per episode which made it the
most viewed preschool children's programme. (Source: BARB). The commercial launch
of the programme is underway. The video was launched in October last year across
the UK and the retail launch of the DVD and publishing titles will take place
in May 2004. In Australia, a full consumer products launch commenced in the last
quarter of 2003, with the retail release of books, DVDs, videos and plush
merchandising with our licensee and broadcaster the Australian Broadcasting
Corporation ("ABC").
Muffin the Mule
In January 2003 Maverick was granted an exclusive license to produce a new
animated series based on Muffin the Mule and to exploit all ancillary
intellectual property rights in the representation of the character. In April
2003 the Company reached an agreement with the BBC to produce 26 ten-minute
episodes of a new animated series. In September Maverick conducted a successful
placing which raised #2,067,000, primarily to fund its production, which is now
underway.
We are very pleased with the progress of the production and with the quality of
the animation to date and we are confident that the production will be completed
on time and on budget.
We are delighted to announce that the BBC has commissioned a further 14
ten-minute episodes of the programme for delivery in 2005 bringing the total
production up to 40 ten minute episodes. This represents a major vote of
confidence by the BBC in the production of Muffin the Mule and is confirmation
of the Company's view on the quality of the animation.
The Company believes that the high level of interest that has so far been shown
in Muffin augers well for its future commercial success as a major international
children's brand and as such we believe it will deliver long term value to the
Company and its shareholders. Muffin is an extremely well known children's
character and 2006 will mark the 60th anniversary of its first broadcast on the
BBC. The new Muffin series is anticipated to commence transmission in the autumn
of 2005 and it is hoped that the new series will be part of the special
programming planned by the BBC to mark the anniversary.
Bananas in Pyjamas
The live show tour commenced in February 2004 and we are very pleased with the
initial response and attendance figures. Between February and December 2004
shows will take place in 82 regional theatres across the UK with an anticipated
audience of over 75,000. The live shows will serve to increase awareness of the
characters and the re-launched licensing programme is expected to have a
positive impact on the Company's business. Bananas in Pyjamas merchandise, toys
and books are being sold in the theatres at present and we expect to launch the
merchandise in shops later in 2004. Maverick owns the UK IPR to the show, the
merchandise and publishing and revenue from ticket and merchandise sales have
been positive.
Maverick currently distributes ABC Bananas in Pyjamas books for which it
receives a royalty, but, with the launch of its own in-house publishing
business, Maverick will take over the UK publishing this year and launch its own
titles.
DVD/video business
During 2003 Maverick secured two exclusive long-term DVD/video distribution
agreements which give the Company distribution rights to over 200 hours of high
quality children's programming.
The agreement with Nelvana is for the exclusive distribution rights to 33 series
in the UK and Ireland and gives Maverick the first option to negotiate
distribution terms for all new Nelvana products for the term of the contract.
The agreement with Millimages S.A., a leading French animation company, is for
the exclusive UK and Ireland DVD/video distribution rights to three programmes -
64 Zoo Lane (BBC), Jasper the Penguin and Hilltop Hospital (ITV) and the BAFTA
Award winning Pablo the Little Red Fox (BBC) - which have already been shown on
UK television.
The initial launch of these catalogues is scheduled for later this month 2004
and there will be an ongoing release of products from these two catalogues over
the next five years. This gives the Company an extremely strong portfolio of
children's programming for distribution in the DVD/video market and we expect to
see strong sales.
The directors believe that the significant growth of the UK DVD market in recent
years will be of major benefit presenting growth opportunities for the Company
in both distribution rights and sales of our own productions such as Muffin the
Mule and Snailsbury Tales. The Company also intends to devise added value
publishing packages specifically for the UK market in conjunction with retailers
for these catalogues. We also plan to continue developing DVD/video distribution
and publishing relationships and to acquire further distribution assets.
Publishing
I am delighted to announce the creation of a book publishing division to
complement the Company's on-going development and acquisition of IPR. We believe
that having such a business in-house, as opposed to licensing out to a third
party publisher, will enhance margins and allow the Company more directly to
control the publishing sales, marketing and distribution and to rationalise the
launch and marketing support campaigns and other exploitation of our library of
IPR, including own brand characters. This business will initially focus on
Snailsbury Tales and Bananas in Pyjamas characters and on Muffin the Mule at the
time of its commercial launch. This new initiative in publishing will also give
the Company an increased ability to acquire publishing rights for exploitation
on behalf of third party rights owners. We believe that the development of this
business will be a benefit to the Company in the future and widen its
distribution portfolio. The first 'in-house' publication will be a range of
Snailsbury Tales books which will be published by ourselves and on retail sale
in June 2004. Based on initial retail feedback, we are optimistic about the
prospect of achieving widespread distribution for our products. Additionally we
will also be publishing a Bananas in Pyjamas range of books to capitalise on the
renewed activity and increased awareness of these characters.
The Board
We announced on 6 February 2004 that John Howson had retired from the post of
Chief Executive and was replaced by Mike Diprose who stepped up from the
position of Managing Director. The Company wishes to thank John for his period
in office and for his role as a founding director of the Company.
In December 2003, the Company also announced the resignation of Non-Executive
Director and Company Secretary, Jeffrey Hodson. We would also like to thank
Jeffrey for his contribution over the past four years and wish him well. The
Company will be appointing an additional independent non-executive director in
2004.
Outlook
We believe we have taken the appropriate steps to improve the Company's trading
position going forward. The strong focus on DVD/video distribution and book
publishing will give the Company a solid foundation from which to grow and we
are confident that we will see an improvement in 2004. Muffin the Mule and
Snailsbury Tales are important assets; there has been significant interest in
Muffin and we are confident that the new series of programmes and associated
merchandise will be a success. Snailsbury Tales has been very popular with
audiences and we look forward to the further development and consolidation of
the IPR both in terms of merchandise and international sales.
The Company's strategy remains the investment, development and distribution of
IPR, and the creation and exploitation of our own long-term brands, which we
believe will provide for the continuing growth of the business. In line with
this strategy we have appointed a dedicated marketing manager to support the
development of the Muffin the Mule and Snailsbury Tales brands as well as
co-ordinating sales and marketing activity with both Nelvana and Millimages.
The directors believe that the Company is in a good position to meet its ongoing
objectives and look forward to reporting progress in the next period.
MAVERICK ENTERTAINMENT GROUP PLC
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2003
2003 2002
Notes # # # #
Turnover 255,945 1,479,939
Cost of sales (449,062) (616,099)
---------- ----------
Gross (loss)/profit (193,117) 863,840
Distribution costs 18,704 49,480
Administrative expenses 686,963 552,840
(705,667) (602,320)
---------- ----------
Operating (loss)/profit (898,784) 261,520
Interest payable (4,663) -
---------- ----------
(Loss)/profit on ordinary
activities before taxation (903,447) 261,520
Tax on (loss)/ profit on
ordinary activities - -
---------- ----------
(Loss)/profit for the
financial period after
taxation (903,447) 261,520
========= =========
(Loss)/earnings per
share 4 (0.4214)p 0.1723p
========= =========
Fully diluted
earnings/(loss) per
share 4 (0.4214)p 0.1408p
========= =========
Continuing operations
There are no differences between the results shown in the consolidated profit
and loss account and those on a historical cost basis.
Total recognised gains and losses
The Group has no recognised gains or losses other than the profit or loss for
the above two financial years.
MAVERICK ENTERTAINMENT GROUP PLC
UNAUDITED CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2003
As at As at
31 December 2003 31 December 2002
Notes # # # #
Fixed assets
Intangible assets 2,395,716 2,246,039
Tangible assets 9,609 4,217
Current assets
Stock 19,806 142,393
Debtors 432,637 617,231
Cash at bank
and in hand 1,112,777 -
---------- ----------
1,565,220 759,624
Creditors: amounts
falling due within
one year (314,674) (495,523)
---------- ----------
Net current assets 1,250,546 264,101
---------- ----------
Total assets less
current liabilities 3,655,871 2,514,357
Creditors: amounts falling due
after more than one year
Convertible Debt (580,000) -
---------- ----------
3,075,871 2,514,357
========== ==========
Capital and reserves
Called up share capital 3,056,890 1,593,338
Share premium 1,804,519 1,469,781
Merger reserve (749,653) (749,653)
Shares to be issued - 333,329
Profit and loss account (1,035,885) (132,438)
---------- ----------
Shareholders' funds
- (equity interests
only) 5 3,075,871 2,514,357
========== ===========
MAVERICK ENTERTAINMENT GROUP PLC
UNUADITED CONSOLIDATED CASHFLOW STATEMENT AND RELATED NOTES
FOR THE YEAR ENDED 31 DECEMBER 2003
Notes 31 December 2003 31 December 2002
# #
Net cash (outflow)/inflow
from operating activities (447,109) 199,661
Returns on investment and
servicing of finance (4,663) -
Capital expenditure (397,073) (897,415)
---------- ----------
(848,845) (697,754)
Financing 2,044,959 424,600
---------- ----------
Increase/(decrease) in
cash 1,196,114 (273,154)
============ ===========
UNAUDITED RECONCILIATION OF OPERATING PROFIT / (LOSS) TO NET CASH INFLOW/
(OUTFLOW) FROM OPERATING ACTIVITIES
31 December 2003 31 December 2002
# #
Operating (loss)/profit (898,784) 261,520
Depreciation and amortisation
charges 242,005 139,380
Decrease/(increase)in debtors 184,594 (199,456)
(Decrease)/increase in creditors (97,511) 99,997
Decrease/(increase) in stock 122,587 (101,780)
---------- ----------
Net cash (outflow)/inflow from
operating activities (447,109) 199,661
============ ===========
UNAUDITED ANALYSIS OF MOVEMENTS IN NET (DEBT)/FUNDS
At Non-cash At
1 January 2003 Cashflow changes 31 December 2003
# # # #
Cash in hand
and at bank
(bank overdraft) (83,337) 1,196,114 - 1,112,777
Convertible
redeemable
loan stock
2008 - (590,000) 10,000 (580,000)
---------- ---------- --------- ----------
(83,337) 606,114 10,000 532,777
========== ========== ========= ==========
The non-cash movement represents a conversion of #10,000 of loan stock.
Notes to the financial statements
1. Basis of preparation
The financial information has been prepared under the historical cost convention
and in accordance with applicable accounting standards.
2. Publication of Non- Statutory information
The financial information contained in this unaudited preliminary results
statement does not constitute accounts as defined by section 240 of the
Companies Act 1985. The financial information for the year ended 31 December
2002 has been extracted from the full accounts for that year. The report was
unqualified. The statutory accounts for the year ended 31 December 2003 will be
finalised based on the information in this preliminary announcement and will be
delivered to the registrar of companies following the Company's AGM.
3. Report and accounts
Copies of this announcement are available from the registered company address at
Maverick Entertainment Group PLC, Belmont House, 13 Upper High Street, Thame,
Oxfordshire, 0X9 3ER.
4. Earnings per share
Earnings per share have been calculated in accordance with Financial Reporting
Standard 14. The calculation of earnings per share has been based on the (loss)
/ profit attributable to equity shareholders of #(903,447) (2002 - #261,520) and
214,383,348 (2002 - 151,771,411) shares being the daily average of the number of
shares in issue during the year. The diluted earnings per share is based on a
weighted average of 214,383,348 (2002 - 185,677,364) shares after allowing for a
dilution for share warrants outstanding.
5. Reconciliation of movement in shareholders' funds
2003 2002
# #
(Loss)/profit for the
financial year (903,447) 261,520
New shares issued
(net of issue costs) 1,464,961 424,600
---------- ---------
561,514 686,120
Opening shareholders'
funds 2,514,357 1,828,237
---------- ---------
Closing shareholders'
funds 3,075,871 2,514,357
========== ==========
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR QKKKQKBKBBQB
Maverick Entertainment (LSE:MVK)
過去 株価チャート
から 12 2024 まで 1 2025
Maverick Entertainment (LSE:MVK)
過去 株価チャート
から 1 2024 まで 1 2025
