TIDMLUD
RNS Number : 0300H
Ludorum PLC
14 June 2013
14 June 2013
LUDORUM PLC PRELIMINARY RESULTS FOR THE YEAR ENDING 31 MARCH
2013
Ludorum plc, ("Ludorum" or the "Company"), the AIM-listed media
investment company, today announces its results for the fifteen
month period ended 31 March, 2013.
Highlights for 15 Month Period
Turnover generated in the period of GBP7.78m (2011:
GBP7.34m)
Consumer products revenues were GBP7.20m (2011: GBP6.27m)
Operating profit of GBP0.01m (2011: GBP0.32m)
Administrative Expenses GBP2.49m (2011: GBP2.92m)
Chuggington has now been licensed for broadcast to 175
countries
New series in production for delivery in 2013-14, with pre-sales
to BBC (UK), Disney Channel (US), Fuji (Japan) SRTL (Germany) and
TF1 (France)
"Stack Track" toy train system very successfully introduced into
the US during the second half of the calendar year
Motorised toy train system successfully introduced by Tomy in
Japan during the second half of the calendar year
Rob Lawes, Chief Executive, said:
"Chuggington is established in the international marketplace as
a durable and well accepted brand, and we feel there are excellent
opportunities to make Chuggington into the premier evergreen
pre-school global train property. Although the 15 month period
under review resulted in a decline in Operating Profit, on a
comparable twelve-month basis, our operating profit grew to
GBP0.44m (2011: GBP0.32m) a 38% improvement over the prior
twelve-month period.
Contacts
Ludorum plc 020 8246 4010
Rob Lawes
Investec Investment Banking (NOMAD) 020 7597 4000
David Flin / Andrew Pinder
Overview
In June 2012 we announced that our accounting reference date
would change to 31 March so that the Company's accounting year is
the same as that of its master toy licence partner, Tomy Company
Limited. For comparable purposes, the following table outlines the
key financial information for the twelve-month period ended
31December 2012 to the prior audited period ended 31 December 2011
as well as the fifteen-month period.
12 months 15 months 12 months
to 31 Dec 2012 to 31 March 2013 to 31 Dec 2011
GBP'000 GBP000 GBP000
------------------- ---------------- ------------------ ----------------
Sales 6,589 7,779 7,335
------------------- ---------------- ------------------ ----------------
Gross profit 2,494 2,503 3,241
------------------- ---------------- ------------------ ----------------
Overheads 2,056 2,493 2,923
------------------- ---------------- ------------------ ----------------
Operating profit 438 10 318
------------------- ---------------- ------------------ ----------------
Television 502 581 999
------------------- ---------------- ------------------ ----------------
Consumer products 6,061 7,169 6,271
------------------- ---------------- ------------------ ----------------
Other 26 29 65
------------------- ---------------- ------------------ ----------------
6,589 7,779 7,335
------------------- ---------------- ------------------ ----------------
On a comparable twelve-month basis, our operating profit grew to
GBP0.44m (2011: GBP0.32m) a 38% improvement over the prior
twelve-month period. Consumer products revenues fell by 3% to
GBP6.10m from GBP6.27m. Revenues were affected by the withdrawal
from the market place of Tomy's "Interactive" plastic train system.
That system will gradually be succeeded globally by a plastic
motorised system which had a strong launch in Japan in the second
half of 2012. In the non-motorised toy train categories, we are
encouraged by the launch of the new "Stack Track" die cast system
that had a successful launch in the US in September 2012. The wood
system will continue to roll out on an international basis over the
coming months which has shown good sales growth in the US, and we
are expecting consistent global growth in sales of this system.
Broadcast revenues for the same period were GBP0.5m which
represents a 50% reduction from the prior year amount of GBP1.00m.
The reduction in broadcast revenues reflects the fact that no
additional new episodes were delivered in the financial period. We
are, however, in production of an exciting new series of
Chuggington adventures with the first new episodes starting to air
from September 2013. We have been very pleased with the reaction
from our international broadcast partners, with pre-sales already
concluded with the BBC (UK), Disney Channel (US), Fuji (Japan),
SRTL (Germany) and TF1 (France).
In the meantime, strong cost control drove the underlying
improvement in profitability with administrative expenses falling
by 30% to GBP2.06m (2011: GBP2.92m), a GBP0.86m saving.
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 92 x 10"
episodes and 46 x 4" shorter episodes. We are in production on a
further 26 x 10" episodes, delivery of the first 13 episodes of
this series will be in September 2013 and the balance in the first
quarter of 2014.
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, year after year, a consistently successful ratings
record in the majority of its markets including the UK (BBC -
Cbeebies), North America (The Disney Channel), Germany (Super RTL),
France (TF1), Japan (Fuji -TV), Australia (ABC) and Canada
(Treehouse). We have also concluded an agreement for Chuggington to
be aired on Disney Channel, India, where broadcast commenced
December 2012 and in Brazil where broadcast commenced in March
2013. The only major world market where Chuggington has not yet
appeared is China, and we are now working towards launching the
series there. Additionally, on-line entertainment and game sales
are growing, and will add materially to future years revenues.
Consumer Products
Consumer revenues for the fifteen-month period were GBP7.17m
versus (2011: GBP6.27m) a 14% increase. Our master toy partner,
Tomy, generated revenues of GBP3.51m a GBP0.07m increase over the
prior period of GBP3.44m.
We are encouraged by the early success of the motorised system
in Japan and the new "Stack Track" system which had a successful
launch in the last quarter of 2012. The Chuggington "Stack Track"
system was awarded a Guinness World Record for the highest ever
train system at Grand Central Station in New York in May 2012. In
addition, Tomy's wood line continued strong year on year growth.
There is substantial product development underway supporting the
new series direction for launch in the calendar fourth quarter in
the US and UK and globally in 2014 thereafter.
In addition to Tomy for toy trains, there are a number of other
licensees across consumer products, home entertainment and
publishing.
Financial Review - 15 Month Period Jan. 1, 2012 to March 31,
2013 versus 12 Month Period Jan. 1, 2011 to Dec 31, 2011
Ludorum generated revenues of GBP7.78m for the fifteen-month
period ended 31 March 2013 (2011: GBP7.34m) a 6% increase. Consumer
product revenues represented 93% of revenues, at GBP7.17M (2011:
GBP6.27m). Broadcast revenues, which are recognised on license
period start dates, represented 6.5% of revenues at GBP0.58m (2011:
GBP0.99m) a fall of GBP0.41m. Of the revenue generated in the
period the UK, Europe, Middle East and Africa represented 40%
(2011: 55%), the Americas represented 34% (2011: 33%) and Asia and
Australasia represented 26% (2011: 13%).
Gross profit for the fifteen-month period was negatively
impacted by the inclusion of two quarters: March 2012 and March
2013, where third party profit participation payments are at their
highest reflecting profit participation payments from the preceding
October to December revenue period. As a result gross profit fell
from GBP3.24m, to GBP2.50m for the fifteen-month period largely
reflecting the increase in profit participation payments payable,
re-classification of overhead costs into marketing costs and an
increased amortisation charge that resulted from the greater number
of completed episodes.
Total administrative costs were GBP2.49m a reduction of 15% over
the prior year cost of GBP2.92m.
The operating profit for the fifteen-month period was GBP0.1m,
versus a GBP0.32m operating profit for the prior period.
Capital expenditure on Chuggington during the fifteen-month
period was GBP1.10m (2011: GBP1.01m).
As at the 31 March 2013 the Company had gross cash and cash
equivalents of GBP0.95m (31 December 2011 GBP0.50m) and bank
overdrafts of GBP0.97m (30 June 2011: GBP1.00m). In June 2013, the
Company renewed its GBP0.75m overdraft facility with Coutts.
In March 2012, the Company redeemed at par, GBP1.50m of loan
notes, being all the loan notes in issue. At the same time the
Company issued GBP2.75m of loan notes. The loan notes are held by
client funds of Downing LLP and 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
notes is the higher of 7.5% or 3% above LIBOR for the next three
years. After the three years the coupon is 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.
Board Changes
Two directors, Charlie Caminada and David Maloney, resigned with
effect June 28, 2012. On behalf of the Board and the entire
company, I would like to thank Charlie Caminada, a co-founder of
Ludorum, and a colleague and friend of 24 years standing for his
excellent contribution since our launch in 2006. We wish him all
the very best following his retirement in June. We would also like
to thank David Maloney for his significant contributions over his
six years as a non-executive director.
Richard Hall was appointed with effect June 28, 2012 as a
non-executive director. We are delighted to welcome Richard who
also serves as a board member of DC Thomson & Co. Limited.
Richard now serves along with Dick Rothkopf, our non- executive
Chairman, and me.
Outlook
We remain committed to building Chuggington into the premier
evergreen pre-school global train property. We are in the process
of changing the toy product lines to better reflect our consumers'
tastes and are producing new television episodes that are even more
adventurous and captivating for our market. Chuggington is already
established as a durable and well accepted brand in markets
globally, and we feel there are excellent opportunities to make
this strategic aim a reality as we look to steadily build on our
experience and the brand's successes to date.
Rob Lawes
Chief Executive
For the 15 months For the year ended
Note ended 31 December 2011
31 March GBP000
2013
GBP000
---------------------------------------------- ----------- ---------------------------- ---------------------------
Revenue 2 7,779 7,335
---------------------------------------------- ----------- ---------------------------- ---------------------------
Cost of sales (5,276) (4,094)
---------------------------------------------- ----------- ---------------------------- ---------------------------
Gross profit 2,503 3,241
---------------------------------------------- ----------- ---------------------------- ---------------------------
Administrative expenses (2,493) (2,923)
---------------------------------------------- ----------- ---------------------------- ---------------------------
Operating profit 10 318
---------------------------------------------- ----------- ---------------------------- ---------------------------
Finance costs - bank and loan
interest (162) (95)
---------------------------------------------- ----------- ---------------------------- ---------------------------
Finance cost - net (162) (95)
---------------------------------------------- ----------- ---------------------------- ---------------------------
(Loss) / profit before income tax (152) 223
---------------------------------------------- ----------- ---------------------------- ---------------------------
Income tax expense 3 (133) (144)
---------------------------------------------- ----------- ---------------------------- ---------------------------
(Loss) / profit for the period (285) 79
---------------------------------------------- ----------- ---------------------------- ---------------------------
Other comprehensive income /(loss):
Foreign exchange differences 6 (19)
---------------------------------------------- ----------- ---------------------------- ---------------------------
Total comprehensive (loss) / income
for the period (279) 60
---------------------------------------------- ----------- ---------------------------- ---------------------------
Basic (loss) / earnings per share 4 (0.29)p 0.80p
Diluted (loss) / earnings per share 4 (0.29)p 0.79p
---------------------------------------------- ----------- ---------------------------- ---------------------------
GROUP GROUP
Note 2013 2011
GBP000 GBP000
------------------------------- ------- ----------------- -----------------
Assets
------------------------------- ------- ----------------- -----------------
Non-current assets
------------------------------- ------- ----------------- -----------------
Investments - -
------------------------------- ------- ----------------- -----------------
Property, plant and equipment 2 36
------------------------------- ------- ----------------- -----------------
Intangible assets 5 3,956 3,704
------------------------------- ------- ----------------- -----------------
3,958 3,740
------------------------------- ------- ----------------- -----------------
Current assets
------------------------------- ------- ----------------- -----------------
Trade and other receivables 1,728 2,498
------------------------------- ------- ----------------- -----------------
Overseas tax receivable 20 -
------------------------------- ------- ----------------- -----------------
Cash and cash equivalents 954 501
------------------------------- ------- ----------------- -----------------
2,702 2,999
------------------------------- ------- ----------------- -----------------
Liabilities
------------------------------- ------- ----------------- -----------------
Current liabilities
------------------------------- ------- ----------------- -----------------
Overseas tax payable - (23)
------------------------------- ------- ----------------- -----------------
Trade and other liabilities (3,363) (4,463)
------------------------------- ------- ----------------- -----------------
Borrowings 6 (966) (999)
------------------------------- ------- ----------------- -----------------
(4,329) (5,485)
------------------------------- ------- ----------------- -----------------
Net current liabilities (1,627) (2,486)
------------------------------- ------- ----------------- -----------------
Non-current liabilities
------------------------------- ------- ----------------- -----------------
Borrowings 6 (2,750) (1,500)
------------------------------- ------- ----------------- -----------------
(2,750) (1,500)
------------------------------- ------- ----------------- -----------------
Net liabilities (419) (246)
------------------------------- ------- ----------------- -----------------
Shareholders' deficit
------------------------------- ------- ----------------- -----------------
Ordinary shares 88 88
------------------------------- ------- ----------------- -----------------
Deferred shares 50 50
------------------------------- ------- ----------------- -----------------
Share premium 9,296 9,296
------------------------------- ------- ----------------- -----------------
Share based payments reserve 2,318 2,212
------------------------------- ------- ----------------- -----------------
Foreign currency translation (8) (14)
------------------------------- ------- ----------------- -----------------
Accumulated losses (12,163) (11,878)
------------------------------- ------- ----------------- -----------------
Total deficit (419) (246)
------------------------------- ------- ----------------- -----------------
Attributable to the owners of the parent
-------------------------- -------------------------------------------------------------------------------
Group
2013 Called Share Foreign
up Share Accumulated based currency Total
share Premium losses payments translation deficit
capital GBP000 GBP000 reserve GBP000 GBP000
GBP000 GBP000
-------------------------- ---------- ---------- -------------- ----------- -------------- ----------
At 1 January 2012 138 9,296 (11,878) 2,212 (14) (246)
-------------------------- ---------- ---------- -------------- ----------- -------------- ----------
Loss for the period - - (285) - - (285)
-------------------------- ---------- ---------- -------------- ----------- -------------- ----------
Other comprehensive
income: - - - - 6 6
-------------------------- ---------- ---------- -------------- ----------- -------------- ----------
Total comprehensive
(loss) / income
for the period - - (285) - 6 (279)
-------------------------- ---------- ---------- -------------- ----------- -------------- ----------
Transactions with
owners:
-------------------------- ---------- ---------- -------------- ----------- -------------- ----------
Credit relating
to share based payments
reserve - - - 106 - 106
-------------------------- ---------- ---------- -------------- ----------- -------------- ----------
Total contributions
for distribution
to owners of the
Company recognised
directly in equity - - - 106 - 106
-------------------------- ---------- ---------- -------------- ----------- -------------- ----------
At 31 March 2013 138 9,296 (12,163) 2,318 (8) (458)
-------------------------- ---------- ---------- -------------- ----------- -------------- ----------
Called Share Foreign
2011 up Share Accumulated based currency Total
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)
-------------------------- ---------- ---------- -------------- ----------- -------------- ----------
Comprehensive income:
-------------------------- ---------- ---------- -------------- ----------- -------------- ----------
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 - - - 1,937 - 1,937
-------------------------- ---------- ---------- -------------- ----------- -------------- ----------
Credit relating
to share based payments
reserve - - - 170 - 170
-------------------------- ---------- ---------- -------------- ----------- -------------- ----------
New shares issued - 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)
-------------------------- ---------- ---------- -------------- ----------- -------------- ----------
GROUP GROUP
Note 2013 2011
GBP000 GBP000
---------------------------- --------------- ---------------- ----------------
Cash flows from
operating activities
---------------------------- --------------- ---------------- ----------------
Cash generated
from operations 7 786 956
---------------------------- --------------- ---------------- ----------------
Interest paid (162) (95)
---------------------------- --------------- ---------------- ----------------
Taxation paid (176) (137)
---------------------------- --------------- ---------------- ----------------
Net cash generated
from / (used in)
operating activities 448 724
---------------------------- --------------- ---------------- ----------------
Cash flows from
investing activities
---------------------------- --------------- ---------------- ----------------
Investment in - -
subsidiaries
---------------------------- --------------- ---------------- ----------------
Purchase of property,
plant and equipment - (21)
---------------------------- --------------- ---------------- ----------------
Investment in
intangible assets (1,212) (1,473)
---------------------------- --------------- ---------------- ----------------
Net cash used
in investing activities (1,212) (1,494)
---------------------------- --------------- ---------------- ----------------
Cash flows from
financing activities
---------------------------- --------------- ---------------- ----------------
Net proceeds from
issue of share
capital - 15
---------------------------- --------------- ---------------- ----------------
Issue of new loan
stock 6 1,250 -
---------------------------- --------------- ---------------- ----------------
Net cash generated
from financing
activities 1,250 15
---------------------------- --------------- ---------------- ----------------
Net increase /
(decrease) in
cash and cash
equivalents and
bank overdrafts 486 (755)
---------------------------- --------------- ---------------- ----------------
Cash and cash
equivalents and
bank overdrafts
at 1 January (498) 257
---------------------------- --------------- ---------------- ----------------
Cash and cash
equivalents and
bank overdrafts
at 31 March (12) (498)
---------------------------- --------------- ---------------- ----------------
1. Basis of preparation
The financial information in this preliminary announcement has
been extracted from the audited financial statements of the Group
for the 15 months period ended 31 March 2013. The financial
statements were approved by the board of directors on 13 June 2013
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 2011 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 2013 and 2011 were unqualified and did not contain
a statement under section 237(2) or section 237(3) of the Companies
Act 1985.
In 2012 the Company changed its accounting reference date from
31 December to 31 March. Accordingly, this preliminary announcement
has been prepared for the 15 months period ended 31 March 2013. The
change has been made so that the Company's accounting year end is
the same as that of its master toy licence partner, Tomy Company
Limited. The comparative financial information is for the 12 months
ended 31 December 2011.
The basis of preparation of the financial information in both
financial years presented is consistent with the accounting
policies set out in the Group's statutory accounts for the year
ended 31 December 2011. No additional standards or amendments to
existing standards have been adopted by the Group with effect from
1 January 2012.
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 15 months For the year
ended ended
31 March 2013 31 December 2011
GBP000 GBP000
----------------------------- -------------------------- --------------------------
Broadcasting rights 581 999
----------------------------- -------------------------- --------------------------
Consumer products 7,169 6,271
----------------------------- -------------------------- --------------------------
Other 29 65
----------------------------- -------------------------- --------------------------
7,779 7,335
----------------------------- -------------------------- --------------------------
Geographical analysis of revenue by location
For the 15 months For the year
ended ended
31 March 2013 31 December 2011
GBP000 GBP000
---------------------------- -------------------------- --------------------------
UK, Europe, Middle
East & Africa 3,068 4,005
---------------------------- -------------------------- --------------------------
Asia & Australasia 2,032 921
---------------------------- -------------------------- --------------------------
Americas 2,679 2,409
---------------------------- -------------------------- --------------------------
7,779 7,335
---------------------------- -------------------------- --------------------------
All material assets are located in the UK.
3. Income tax expense
For the 15 months For the year
ended ended
31 March 2013 31 December
GBP000 2011
GBP000
----------------------------------------- -------------------------- ---------------------
Current tax
----------------------------------------- -------------------------- ---------------------
UK taxation - -
----------------------------------------- -------------------------- ---------------------
Overseas taxation - withholding
taxes 100 82
----------------------------------------- -------------------------- ---------------------
Overseas taxation - US income
taxes 33 62
----------------------------------------- -------------------------- ---------------------
Total overseas taxation 133 144
----------------------------------------- -------------------------- ---------------------
Total current tax expense 133 144
----------------------------------------- -------------------------- ---------------------
Deferred taxation - -
----------------------------------------- -------------------------- ---------------------
Total income tax expense 133 144
----------------------------------------- -------------------------- ---------------------
The tax assessed for the period differs from the UK Small
Company's tax rate in the UK. The difference is explained
below:
For the 15 months For the year
ended ended
31 March 2013 31 December
GBP000 2011
GBP000
--------------------------------------------- -------------------------- ---------------------
(Loss) / profit before taxation (152) 223
--------------------------------------------- -------------------------- ---------------------
(Loss) / profit before taxation
multiplied by the weighted-average
rate of UK corporation tax
applicable to small companies
of 20% (2011: 20.25%) (30) 45
--------------------------------------------- -------------------------- ---------------------
Effects of:
--------------------------------------------- -------------------------- ---------------------
Overseas taxation (133) (144)
--------------------------------------------- -------------------------- ---------------------
Expenses not deductible for
tax purposes 2 2
--------------------------------------------- -------------------------- ---------------------
Losses brought forward - (47)
--------------------------------------------- -------------------------- ---------------------
Losses available to carry 28 -
forward and other timing
differences
--------------------------------------------- -------------------------- ---------------------
Total income tax expense (133) (144)
--------------------------------------------- -------------------------- ---------------------
4. (Loss) / earnings per share
Basic (loss) / earnings per share ("EPS") is calculated by
dividing the (loss) / earnings attributable to owners of the parent
by the weighted average number of ordinary shares in issue during
the period. Diluted EPS is calculated by adjusting the weighted
average number of shares in issue to assume conversion of all
dilutive potential ordinary shares.
Basic (Loss) / Weighted average Weighted Per-share Per-share
and diluted earnings number of average number amount amount
EPS attributable shares of shares
to owners
of the parent
GBP000 (basic) (diluted) (pence) (pence)
(basic) (diluted)
--------------------- ---------------------- ------------------------ ----------------------- ------------------ -------------------
2013 (285) 9,850,001 9,971,001 (0.29)p (0.29)p
--------------------- ---------------------- ------------------------ ----------------------- ------------------ -------------------
2011 79 9,838,751 9,962,751 0.80p 0.79p
--------------------- ---------------------- ------------------------ ----------------------- ------------------ -------------------
5. Intangible assets
Group Capitalised
costs
GBP000
---------------------------------- --------------------
Cost
---------------------------------- --------------------
At 1 January 2011 3,756
---------------------------------- --------------------
Additions 1,012
---------------------------------- --------------------
At 31 December 2011 4,768
---------------------------------- --------------------
Additions 1,112
---------------------------------- --------------------
At 31 March 2013 5,880
---------------------------------- --------------------
Accumulated amortisation
---------------------------------- --------------------
At 1 January 2011 519
---------------------------------- --------------------
Charge for the year 545
---------------------------------- --------------------
At 31 December 2011 1,064
---------------------------------- --------------------
Charge for the period 860
---------------------------------- --------------------
At 31 March 2013 1,924
---------------------------------- --------------------
Net book value
---------------------------------- --------------------
At 1 January 2011 3,237
---------------------------------- --------------------
At 31 December 2011 3,704
---------------------------------- --------------------
At 31 March 2013 3,956
---------------------------------- --------------------
6. Borrowings
The following borrowings are included in current and non-current
liabilities:
GROUP GROUP
2013 2011
GBP000 GBP000
--------------------------- ---------------- ----------------
Bank overdraft 966 999
--------------------------- ---------------- ----------------
Loans 2,750 1,500
--------------------------- ---------------- ----------------
3,716 2,499
--------------------------- ---------------- ----------------
Undrawn borrowing
facilities
--------------------------- ---------------- ----------------
Bank overdraft 293 56
--------------------------- ---------------- ----------------
The Group has an overdraft facility from Coutts & Co of
GBP750,000. 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 net position within the group is GBP457,000.
In March 2012 the Company redeemed, at par, GBP1.5m of loan
notes ("old loan notes"), being all of the loan notes in issue.
These old loan notes were held by client funds of Downing LLP. At
the same time the Company issued GBP2.75m of new loan notes.
GBP1.5m of the new loan notes are also held by client funds of
Downing LLP. GBP1.25m of the new loan notes are held by D. C.
Thomson & Co Limited. The new loan notes are repayable in March
2017. If the Company redeems the new loan notes within two years of
issue the redemption will be GBP1.25 per GBP1 of loan notes. If the
new loan notes are redeemed after two years of issue the loan notes
are redeemable at par. The coupon on the new 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 new 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.
The old loan notes held by client funds of Downing LLP were
exchanged for new loan notes and therefore no cash payment was made
to Downing LLP on redemption of the old loan notes. Accordingly,
the cash flow effect of the redemption of the old loan notes and
issue of new loan notes in the period was an inflow of GBP1.25m
arising from the issue of new loan notes to D. C. Thomson & Co
Limited.
7. Cash flows from operating activities
GROUP GROUP
2013 2011
GBP000 GBP000
----------------------------------------- ---------------- ----------------
(Loss) / profit for
the period (285) 79
----------------------------------------- ---------------- ----------------
Adjustments for:
----------------------------------------- ---------------- ----------------
Interest paid 162 95
----------------------------------------- ---------------- ----------------
Tax paid 133 137
----------------------------------------- ---------------- ----------------
Depreciation of property,
plant and equipment 26 37
----------------------------------------- ---------------- ----------------
Loss on disposal of 8 -
property, plant and
equipment
----------------------------------------- ---------------- ----------------
Amortisation of intangible
assets 860 545
----------------------------------------- ---------------- ----------------
Charge relating to share
based payments 106 170
----------------------------------------- ---------------- ----------------
Change in working capital
----------------------------------------- ---------------- ----------------
Decrease / (increase)
in trade and other receivables 650 (247)
----------------------------------------- ---------------- ----------------
(Decrease) / increase
in trade and other payables (874) 140
----------------------------------------- ---------------- ----------------
Cash generated by operations 786 956
----------------------------------------- ---------------- ----------------
8. Reconciliation of net cash flow to movement in net debt
The following borrowings are included in current and non-current
liabilities:
GROUP GROUP COMPANY COMPANY
2013 2011 2013 2011
GBP000 GBP000 GBP000 GBP000
------------------------------- ---------------- ---------------- ---------------- ----------------
Net debt at beginning
of period (1,998) (1,243) (2,480) (1,888)
------------------------------- ---------------- ---------------- ---------------- ----------------
Increase / (decrease)
in cash and cash equivalents 453 (199) (19) (36)
------------------------------- ---------------- ---------------- ---------------- ----------------
Decrease / (increase)
in bank overdraft 33 (556) 33 (556)
------------------------------- ---------------- ---------------- ---------------- ----------------
Issue of loan notes (1,750) - (1,750) -
------------------------------- ---------------- ---------------- ---------------- ----------------
Increase in net debt (1,264) (755) (1,736) (592)
------------------------------- ---------------- ---------------- ---------------- ----------------
Net debt at end of
period (3,262) (1,998) (4,216) (2,480)
------------------------------- ---------------- ---------------- ---------------- ----------------
9. Related parties
Included in trade and other liabilities at the end of the period
is GBP135,023 in respect of unpaid remuneration owed to Directors
of the Company and the employer's National Insurance payable on
this remuneration (2011: GBP176,150) and GBP85,358 in respect of
accrued pension costs owed to the Directors (2011: GBP143,714).
Richard Hall, a director if the Company is also a director of D.C.
Thomson Co Ltd, which holds GBP1.25m of loan notes issued by the
Company, and of Parragon Books Limited. Parragon Books Limited has
a publishing licence with Ludorum Enterprises Limited.
10. Commitments
In 2007 the Company entered into an agreement with Tomy 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 three series, comprising 92
episodes of Chuggington. The Company and Tomy have agreed to
jointly fund a fourth series of 26 episodes of 10 minutes each. The
budget is GBP4.4m. Production of this series commenced in 2012.
In April 2012 the Company entered into an agreement with
Shanghai Motion Magic Digital Entertainment Inc ("Motion Magic")
under the terms of which Motion Magic is to provide animation and
editing services for the production of the fourth series of
Chuggington. The Company is committed to pay RMB 12.631m
(GBP1.229m). Under the terms of the agreement with the toy
manufacturer described above, 50% of the amount payable to Motion
Magic will be refunded to the Company by the toy manufacturer.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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