Boomerang Plus is benefiting from its strong relationship with S4C, which is not totally dependent on advertising for its revenues.
The Wales-based TV programme producer says that S4C revenues have fallen slightly as a percentage of the whole but they still dominate the business. A growth area has been the advertiser funded programming where first half revenues grew 180% from a low base.
Total revenues increased 9% to £11.8m in the six months to November 2008, while underlying profits improved from £969,000 to £1.04m. The reported comparative figure includes the cost of flotation.
The post-production side also put in a strong performance.
Net cash, after potential deferred consideration, is £2.97m at the seasonally weak half year end. Cash is generally generated in the second half because of the timing of productions.
Boomerang is still on the look out for acquisitions. The cash in the bank gives the company a good base from which to make acquisitions. Small, niche production companies are the likely targets and there will be a share element to any transaction in order to maintain the management’s interest.
At 114p a share, down 5p on the day, Boomerang is valued at £10.2m.
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