TV programme producer Boomerang Plus benefits from its regional strength but profits still fell in the year to May 2009.
Boomerang had already warned that full year profits would be disappointing but news that it has already secured contracts worth £16.9m for this financial year helped push up the share price 6p to 86p. That values the company at £7.66m.
Boomerang reported revenues down from £20.9m to £19.8m in the year to May 2009, so it has already secured 2009-10 revenues that are within £3m of last year’s figure and there are still seven months to go in this financial year.
Stripping out the effect of the £642,000 of AIM flotation expenses in the previous year, Boomerang’s profit fell from £1.95m to £1.09m. Nearly all the latest profit was made in the first half.
S4C is still a key customer although the recent purchase of Indus Films will dilute the Welsh language broadcaster’s importance to the group.
Increasing volumes are offsetting the lower prices being paid for programming. Advertiser funded programming is set to become more important to the group.
The cash position was weaker due to the timing of production payments. The cash in the bank more than halved to £3.03m at the end of May 2009. Net debt was £2.45m.
Boomerang has spent in £1.6m since the end of the financial year on two acquisitions and setting up an events joint venture. Most of this was spent on Indus and there is up to £1.295m of deferred consideration payable on that deal over the next three years.
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