TV programmes producer Boomerang Plus reported lower interim revenues but expects the second half to be much stronger.
A £50m plus order book covering around four years gives good visibility, particularly for the second half.
Revenues fell from £11.8m to £8.87m in the six months to November 2009. Although gross margins improved gross profits were lower and admin expenses were higher. Pre-tax profit declined from £1.08m to £470,000.
Lower working capital requirements meant that the company generated enough cash to finance its acquisitions in the first half. The main purchase was factual programmes maker Indus Films.
Net cash was £2.48m at the end of November 2009. There is also £1.48m of potential deferred consideration.
Boomerang is spending £1.4m on post-production facilities for its £12m children’s programming contract for S4C. Most of that will be in the second half.
Boomerang is still on the look out for acquisitions. It wants to build up its intellectual property portfolio of programming and exploit it internationally. Digital is another area where Boomerang wants to expand.
At 91p a share, Boomerang is valued at £8.11m.
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