TV programme producer and post production facilities provider Boomerang Plus continues to grow its revenues and profit and it has a strong balance sheet.
Wales-based Boomerang Plus is diversifying its interests so that it is not so dependent on S4C. Revenues from S4C and BBC Wales still accounted for around two-thirds of the total but this should fall to 55% this year as recent acquisition Oxford Scientific Films makes a contribution and the advertiser funded programming business grows organically.
Revenues grew from £21.4m to £26.9m in the year to May 2011, while pre-tax profit jumped from £535,000 to £1.02m. that profit is struck after £120,000 of restructuring costs which will save £100,000 a year. Net cash was £1.37m at the end of June 2011. There are also £1m of unused bank facilities.
Since the end of the financial year Boomerang Plus has added Harlequin to its talent agency business.
House broker finnCap forecasts a profit of £1.1m for this year.
At 49.5p a share, Boomerang Plus is valued at £4.41m. The shares are trading on around six times prospective 2011-12 earnings.
Boomerang Plus is keen to make more acquisitions, particularly in the factual and advertiser funded programming sectors. It may also seek to widen the scope of its post-production business Gorilla to include special effects and graphics.
Management says that acquisition valuations are more realistic than three or four years ago.
Download the September 2011 edition of AIM Journal at http://www.hubinvest.com/AIMPDFSeptember2011_24.pdf
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