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Galleon Holdings

  • BY: Andrew Hore |
  • POSTED: 31/01/2010 |

Galleon Holdings has reported strong growth in revenues in the year to September 2009.

Galleon is an entertainment content and distribution business focused on China. Another branch of the business called Croco designs and makes collectible gifts for consumer companies. Galleon has been quoted for a number of years but it was the arrival of ex-Chorion managers Stephen Green and Len Dunne that led to the development of the business in its current form.

Revenues jumped from £12.1m to £27.1m last year and underlying profits rose from £860,000 to £1.38m. The make-up of those profits changed significantly last year. All the profits in the previous year were made by Croco and the entertainment division made a loss. Last year it was Croco that made the loss and all the profits came from entertainment. Consumer goods suppliers are not spending as much of their marketing budget on Croco’s products.

Entertainment products and programmes include Skunk Fu!, Mysti and Super Soccer Star, where young footballers compete for the chance of a contract at Chelsea FC. This latter format is being sold around the world. Galleon is launching a similar project called Super Fashion Star aimed at young fashion designers.

Galleon has made a football-related animated film called Sokator-442. This will be sold to TV broadcasters and on the back of this there is a TV game show format.

There was an operating cash inflow last year and, even after investment in intellectual property, the net cash position was £4.51m. A £3.67m placing helped to boost the cash pile. House broker Cenkos believes that there should still be net cash of £4m at the end of September 2010.

At 11p a share, Galleon is valued at £18.1m. Cenkos forecasts a profit of £2.3m in 2009-10, which puts the shares on eleven times prospective earnings. 

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