Press Release |
Metrodome Group PLC - Final Results
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RNS Number:0145R Metrodome Group PLC 28 March 2008 Metrodome Group PLC ("Metrodome" or the "Company") Preliminary Results for the year ended 31 December 2007 Metrodome Group plc (AIM: MRM), the audiovisual entertainment company, which focuses principally on the sale and distribution of films through cinema and home entertainment channels, is pleased to announce its results for the year ended 31 December 2007, the first annual results reported by the Group under International Financial Reporting Standards. Financial Highlights: • Revenues of £6,247,000, up 67% on the previous year • Second half profits of £201,000, before non-recurring items Operational Highlights • Oscar win for The Counterfeiters in the Best Foreign Language Film category in February 2008 • Four Oscar nominations: Days of Glory, Water, The Counterfeiters and Away From Her • Golden Globe win for Julie Christie in Away From Her - Best Performance by an Actress in a Motion Picture - Drama Commenting on the results Simon Flamank, Chairman of Metrodome said: "Following significant operational changes in 2006, the Group has concentrated in 2007 on its twin core markets of Theatrical releases and Home Entertainment. Revenue growth in the second half reflected the continued investment in high-quality theatrical releases resulting in strong sales both through cinemas and in associated rights sales, coupled with strong growth in the Home Entertainment market from the on-going expansion and roll out of titles on our labels and income generation from new distribution channels such as Video on Demand. Overall, revenues increased 67% year on year to £6,247,000. "The second half produced a profit of £201,000, before non-recurring items, with the result for the year showing a headline* operating loss of £100,000, down from £678,000 in the 2006. The Group's loss before tax was £673,000 compared to a loss of £774,000 in 2006 due to the impact of non-recurring costs of £580,000." He added: "In negotiating contract terms for new acquisitions, we are always considering alternative approaches to the traditional distribution deal. We have successfully acquired films under partnership deals where we share the risks and rewards of the film with the producer. "Our investment in partnership deals for the acquisition of new, high quality theatrical releases for 2008 and continued expansion and roll out of titles on our Home Entertainment labels will further help the Group achieve our stated objective of returning to profitability. "Our annual results, although much improved, have been achieved in a very difficult and changing market place. 2008 will see the Group continuing the execution of its proven core strategies." For further information please visit www.metrodomegroup.com, or contact: Metrodome Group plc Steve Winetroube Tel: 020 7534 2060 City Financial Associates Limited James Caithie Tel: 020 7492 4777 Tavistock Communications Duncan McCormick / John West / Pollyanna Hutchinson Tel: 020 7920 3150 Chairman's Statement Highlights Metrodome Group plc ("Metrodome") is pleased to announce its results for the year ended 31 December 2007, the first annual results reported by the Group under International Financial Reporting Standards. • Revenues of £6,247,000, up 67% on the previous year • Second half profits of £201,000, before non-recurring items • Oscar win for The Counterfeiters in the Best Foreign Language Film category in February 2008 • Four Oscar nominations: Days of Glory, Water, The Counterfeiters and Away From Her • Golden Globe win for Julie Christie in Away From Her - Best Performance by an Actress in a Motion Picture - Drama Following significant operational changes in 2006, the Group has concentrated in 2007 on its twin core markets of Theatrical releases and Home Entertainment. Revenue growth in the second half reflected the continued investment in high-quality theatrical releases resulting in strong sales both through cinemas and in associated rights sales, coupled with strong growth in the Home Entertainment market from the on-going expansion and roll out of titles on our labels and income generation from new distribution channels such as Video on Demand. Overall, revenues increased 67% year on year to £6,247,000. As previously indicated, the second half produced a profit of £201,000, before non-recurring items, with the result for the year showing a headline* operating loss of £100,000, down from a loss of £678,000 in 2006. The Group's loss before tax was £673,000 (compared to a loss of £774,000 in 2006) due primarily to the impact of non-recurring costs of £580,000. *Headline operating loss consists of revenues and other operating income after deducting operating costs incurred in the normal course of business excluding non-recurring items. Operating performance Year ended % of Year ended % of Growth 31 Dec 07 Turnover 31 Dec 06 Turnover Year on Year Revenue £'000 % £'000 % % Theatrical Cinema Sales 437 7.0% 87 2.3% 402.3% Television and Rights Sales 612 9.8% 115 3.1% 432.2% 1,049 16.8% 202 5.4% 419.3% Home Entertainment VoD/Rental/Other 401 6.4% 302 8.1% 33.5% DVD Sell Through 4,797 76.8% 3,234 86.3% 48.3% VHS Sell Through - 0.0% 9 0.2% -100.0% 5,198 83.2% 3,545 94.6% 46.6% 6,247 100.0% 3,747 100.0% 66.7% Theatrical Metrodome released eleven theatrical titles in 2007, in line with its declared strategy. The success of the emphasis on acquiring higher quality films is reflected in both the revenues received and the award nominations achieved. The theatrical highlight in the first half of the year was Days of Glory, which achieved box office revenues of £214,000. The film received an unprecedented amount of press coverage as a consequence of both its subject matter and the political effect it had in respect of the change in the law in France for the treatment of pensions payable to Algerian war veterans. This change was as a direct result of the release of this film. The UK press recognised this extremely important issue which is still within the public arena as a result of the treatment of the British Gurkhas. This press coverage also supported a strong DVD ship-out in September 2007 on both conventional DVD and Blu-Ray. The theatrical highlight in the second half of the year was The Counterfeiters, which achieved box office revenues of £623,000 in 2007 and continues to do well in 2008 (cumulative box office revenues in excess of £650,000). Again this film has an important social and historical significance as it is an Austrian film dealing with the true plot for Jewish artists and printers imprisoned in a concentration camp to flood the UK and USA with counterfeit bank notes. Our strong relationship with the UK Film Council ("UKFC") led to one of the highest awards given under the P&A (Prints & Advertising) Fund being granted for The Counterfeiters, which enabled the Group to release the film to a wider audience. The film won the foreign language category at the 80th Academy Awards in February 2008 and was released on DVD on 17th March 2008. Other theatrical titles released in the year were Them, Away From Her (starring Julie Christie), Sherrybaby (starring Maggie Gyllenhaal), The Serpent, Water and four small releases Midnight Movies, Transformers, Wild Style and Anna M. Television sales increased significantly year on year, with all of the year's theatrical releases being sold to multiple TV channels, further demonstrating the high quality of the 2007 releases. In addition, there was the successful sale of Pretty Persuasion from last year's theatrical releases. Home Entertainment Despite strong competition in the high street, both at price point and for shelf space, the Group has been able to significantly grow this sector of its business. As predicted, the year saw a shift in the market to Video on Demand from home rental. The strong growth in VOD reflects the increasing popularity of this format. During the year, the Group also completed its negotiations with all the major players in the emerging internet VOD market however growth here is restricted by the low penetration of very high speed broadband. With agreements over both distribution platforms in place, Metrodome is well positioned to take advantage of future developments. Despite the declining market, rental revenues showed strong growth H2 on H1, with significant revenues being generated from Them and Days of Glory. DVD sales increased significantly compared to last year, following the strategic decision to invest heavily in the home entertainment market. The Group released 42 titles during the year including: • Them • Five Days • Days of Glory • Away From Her • Water • Sherrybaby The success of the in-house budget labels In2Film, for headline titles, and Mini Metro, for children's home entertainment titles, together with an expansion in the number of new full price releases, has led to a 48% increase in DVD revenues. Metrodome also recovered some 80 titles after its sub-distributor, Prism Leisure Corporation Plc ("Prism"), went into administration in June 2007. Metrodome released 20 of these back catalogue titles during the second half under its own In2Film budget label with more scheduled for release in 2008. 2007 was the twentieth anniversary of Transformers The Movie and the release of the Dreamworks feature film in July 2007 sparked significant interest in the original film. To capitalise on the interest created, we re-packaged and re-launched Transformers the Movie and also a Special Edition, with great success. Cost base The Group is constantly reviewing its operating structure and cost base in an attempt to improve operational effectiveness and achieve efficiencies. We agreed a new distribution deal with Sony DADC, our replicators and distributors, at the start of 2007 at substantially reduced costs. We are regularly reviewing key contracts with suppliers, with a view to maintaining high standards and further cost reductions. International Financial Reporting Standards Companies listed on the AIM market are required to adopt International Financial Reporting Standards as adopted by the EU (IFRS) for financial periods commencing on or after 1 January 2007. These are the first full year results produced by Metrodome under IFRS. The adoption of IFRS represents an accounting change only it does not affect the operations or cash flows of the Group. The main impact of IFRS on the income statement, balance sheet and cash flow statement has been the reclassification of items into new disclosure categories. Non recurring items In December 2007 Metrodome reached a settlement agreement with TVL for the return of certain titles which were previously stated in the balance sheet at a value of £667,000. Offset against this cost was £274,000 of unpaid royalties at 31 December 2007 which have been forgiven by TVL, giving a net cost of £393,000. In addition, Metrodome was granted a royalty free sell off period to the end of May 2008 plus other benefits. Metrodome will continue to provide royalty reports during this period to enable TVL to fulfil its own royalty reporting obligations. The termination of this agreement is part of a phased plan to separate the two organisations which will be completed after the sale of TVL's shares (see below). Non-recurring costs of £69,000 have been incurred on advisory fees for the tender process for the sale of TVL's shareholding and £81,000 of bad debt and £37,000 of legal fees incurred in recovering stock and materials belonging to Metrodome incurred when Prism went into administration in June 2007. TVL's Shareholding In May 2007, the Group announced the completion of a sale by its major shareholder, TV-Loonland AG ("TVL"), of 11,200,000 shares in Metrodome, which diluted its controlling interest to 61.7%. This was in line with previous public statements by TVL that it wished to reduce its ownership in Metrodome, thereby allowing more liquidity in the stock and attracting new investors, to enable future growth of the business. On 23rd August 2007 it was announced that TVL had requested the board of Metrodome to initiate a formal tender process for the sale of TVL's 61.7% shareholding in Metrodome. There has been a significant interest in the process and expressions of interest were received from North America, Europe and the UK both from strategic investors and venture capital funds. The board of Metrodome drew up a shortlist of four interested parties and subsequently has been in detailed discussions to determine the best fit. The board understands that TVL has made significant progress in the proposed sale of its stake in Metrodome and whilst there is no guarantee of a successful outcome at this stage, the board are hopeful that they will be able to issue a further announcement in due course. Outlook In negotiating contract terms for new acquisitions, we are always considering alternative approaches to the traditional distribution deal. We have successfully acquired films under partnership deals where we share the risks and rewards of the film with the producer. Our investment in partnership deals for the acquisition of new, high quality theatrical releases for 2008 and continued expansion and roll out of titles on our Home Entertainment labels will further help the Group achieve our stated objective of returning to profitability. Blu Ray has now won the High Definition format war which will take away confusion for the consumer which should increase demand for Blu Ray product and help build the average value in the market. Metrodome plans to release more key titles in 2008 on Blu Ray having successfully tested the market with the release of Days of Glory and Transformers in 2007. Our annual results, although much improved, have been achieved in a very difficult and changing market place. 2007 has seen a number of our customers plus our sub-distributor fall into administration. This has not only cost the Group in terms of total bad debt of £104,000 but also reduces the number of retail outlets through which our product can be sold and may therefore affect our future revenues. 2008 will see the Group continuing the execution of its proven core strategies as stated earlier. I would personally like to thank our very hard working and dedicated staff, for their contribution to the improved performance in 2007. Simon Flamank Chairman 28 March 2008 Unaudited Consolidated Balance Sheet As at 31 December 2007 31-Dec- 2007 31-Dec- 2006 Notes (Unaudited) (Unaudited) £'000 £'000 Non current assets Property, plant and equipment 23 53 Intangibles - 14 Film distribution library 5 2,308 3,400 Trade and other receivables 327 28 2,658 3,495 Current assets Inventories 174 271 Trade and other receivables 1,905 1,581 Cash and cash equivalents 867 123 2,946 1,975 Total assets 5,604 5,470 Current liabilities Trade and other payables 6 (3,067) (2,878) Bank loans and overdrafts 6 (85) - (3,152) (2,878 Non current liabilities Bank loans 7 (280) - Other borrowings 7 (182) - (462) - Total liabilities (3,614) (2,878) Net assets 1,990 2,592 Equity Share capital 1,207 1,207 Share premium account 2,581 2,581 Share option reserve 87 16 Accumulated Losses (1,885) (1,212) Total equity 1,990 2,592 Unaudited Consolidated Income Statement For the year ended 31 December 2007 Year ended Year ended 31-Dec-07 31-Dec-06 Notes (Unaudited) (Unaudited) £'000 £'000 Revenue 6,247 3,747 Cost of sales (4,371) (2,441) Gross Profit 1,876 1,306 Other operating income - 135 Operating expenses (1,976) (2,119) Headline Operating Loss 2 (100) (678) Non recurring items 8 (580) - Loss on ordinary activities before interest and taxation (680) (678) Investment income 23 - Finance costs (16) (96) Loss before taxation (673) (774) Income tax expense - - Loss for the year (673) (774) Loss per share Basic 3 (0.6p) (0.9p) Diluted 3 (0.6p) (0.9p) Unaudited Consolidated Statement of Changes in Equity For the year ended 31 December 2007 Share capital Share premium Share option Accumulated Total equity account reserve Losses Notes (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) £000 £000 £000 £000 £000 Balance at 1 January 2006 2,631 5,128 - (6,356) 1,403 Loss for the year, being total recognized income and expense - - - (774) (774) Net proceeds from ordinary shares issued 494 1,453 - - 1,947 Cancellation of deferred share capital (1,918) - - 1,918 - Reduction of share premium reserve - (4,000) - 4,000 - Share option charge for the year - - 16 - 16 Balance at 31 December 2006 1,207 2,581 16 (1,212) 2,592 Loss for the year, being total recognized income and expense - - - (673) (673) Share option charge for the year - - 71 - 71 Balance at 31 December 2007 1,207 2,581 87 (1,885) 1,990 Unaudited Consolidated Cash Flow Statement For the Year ended 31 December 2007 Year ended Year ended 31-Dec-07 31-Dec-06 Notes (Unaudited) (Unaudited) £'000 £'000 Net cash from operating activities 9 3,331 2,034 Net cash used in investing activities 10 (3,088) (2,058) Net cash from financing activities 11 501 729 Net increase in cash and cash equivalents 744 705 Cash and cash equivalents at beginning of year 123 (582) Cash and cash equivalents at end of year 867 123 Notes to the Preliminary announcement For the year ended 31 December 2007 1. Preparation of the accounts The unaudited preliminary announcement has been prepared under the historical cost convention under the going concern basis and on a basis consistent with applicable International Financial Reporting Standards and IFRIC interpretations ("IFRS") as adopted by the EU . The preliminary announcement has been prepared on the basis of the same accounting policies as published in the interim announcement for the period ended 30 June 2007. The financial information in this preliminary announcement does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. Statutory accounts for the year ended 31 December 2007 have not yet been delivered to the Registrar of Companies and no audit report has yet been given on the statutory financial statements. Statutory accounts for the year ended 31 December 2006 were prepared under UK Generally Accepted Accounting Principles (" UK GAAP") and have been delivered to the Registrar of Companies. The audit report on these statutory accounts was unqualified and did not contain a statement either under section 237(2) or 237(3) of the Companies Act. The Group has adopted IFRS from 1 January 2007 as required for companies listed on the AIM market. Prior to 2007, the audited annual financial statements and unaudited interim financial statements were prepared under UK GAAP. In order to comply with IFRS, the Group is required to provide comparative numbers. Included within this preliminary report (notes 12 to 16) is a reconciliation of balance sheets, income statements and cashflow statements from UK GAAP to IFRS. The preliminary announcement is presented in pounds sterling since that is the currency in which the majority of the Group's transactions are denominated. Transition to IFRS The Group has taken advantage of the optional exemption in IFRS 1 "First time adoption of International Financial Reporting Standards" regarding IFRS 3 " Business combinations". The Group has chosen not to restate historical business combinations that took place before the date of transition of 1 January 2006. General Information The Annual Report and Accounts will be made available to the public at the Company's registered office, five working days from the date of release. The Annual General Meeting will be held at the office of Bircham Dyson Bell, 50 Broadway, Westminster, London SW1H 0BL at 11:00am on 29 May 2008. 2. Headline operating loss Headline operating loss consists of revenues and other operating income after deducting operating costs incurred within the normal course of business. 3. Loss per share The loss per share is based on the consolidated loss of £673,000 (2006: £774,000) after taxation and the weighted average number of shares in the year of 120,717,915 (31 December 2006: 120,717,915). Basic and diluted earnings per share are the same as there are no potential ordinary shares that would increase net loss per share from continuing operations in the year. 4. Dividends As in prior periods, the directors are not recommending payment of a dividend. 5. Film Distribution Library The film distribution library is the investment in the programme library including acquired rights and pre-production expenses less provision for amortisation and impairment. 6. Current liabilities 31-Dec-07 31-Dec-06 (Unaudited) (Unaudited) £000 £000 Trade and other payable 3,067 2,878 Bank loans and overdrafts 85 - 3,152 2,878 The bank loan is secured by a fixed and floating charge over the assets of the Group. The overdraft is repayable on demand. 7. Non current liabilities 31-Dec-07 31-Dec-06 (Unaudited) (Unaudited) £000 £000 Bank loans 280 - Other borrowings 182 - 462 - The bank loan is secured by a fixed and floating charge over the assets of the Group. The bank loan is repayable over five years and incurs a floating interest rate linked to the bank's base rate. The other borrowings are unsecured, interest-free and repayable over three years. 8. Non recurring items The Group has separately identified costs and revenue of a non-recurring nature which are considered to be outside the normal course of business due to their one-off nature or size. 31-Dec-07 31-Dec-06 (Unaudited) (Unaudited) £000 £000 Termination of TVL agreement (393) - Proposed sale of Metrodome shares - fees (69) - Prism Leisure Corporation plc (118) - (580) - Termination of TVL agreement £000 £000 Film distribution library of TVL titles: Write off unamortised acquisition cost (545) Write off unrecouped DVD costs (122) (667) Forgiveness of inter-company debt: Forgiveness of debt as at 30 September 2007 237 Royalties waived as at 31 December 2007 37 274 Termination of TVL agreement (393) In December 2007, Metrodome agreed to return certain film titles to TVL in respect of which the Group held licenses granted by TVL but was in default of payment of royalties. As part of the settlement, TVL agreed to forgive £237,000 of outstanding royalty payments. In addition, TVL agreed to waive any royalties due in respect of sales of the titles in the final quarter of 2007 (£37,000) and to allow a sell off period to end May 2008, during which residual stocks of the titles may be sold royalty-free. Metrodome will continue to provide royalty reports during this period to enable TVL to fulfil its own royalty reporting obligations. The asset value of £667,000 has been fully provided in 2007 as illustrated above. Proposed sale of Metrodome shares - fees The Group incurred £69,000 of advisory fees as part of the process for the proposed sale of TVL's 61.7% shareholding in Metrodome. Prism Leisure Corporation plc ("Prism") Prism was placed into administration in June 2007 owing Metrodome £81,000 in unpaid royalties as at 31 December 2007. In addition, the Group incurred £37,000 of legal fees in respect of recovery of stocks and materials belonging to Metrodome. 9. Reconciliation of loss from operations to net cash from operating activities Year ended Year ended 31-Dec-07 31-Dec-06 (Unaudited) (Unaudited) £'000 £'000 Loss from headline operations (100) (678) Adjustments for: Non recurring items (580) - Depreciation of property, plant & 20 32 equipment Impairment loss on equipment 6 - Impairment of goodwill - 22 Amortisation of film distribution library 3,123 1,403 Impairment of film distribution library 1,032 743 Share based payment expense 71 16 Loss on disposal of property, plant & 41 - equipment Decrease/(increase) in inventories 97 (44) (Increase)/decrease in receivables (623) 399 Increase in payables 244 141 Net cash from operating activities 3,331 2,034 10. Investing activities Purchases of film distribution library (3,063) (2,013) Purchases of property, plant & equipment (25) (45) Net cash used in investing activities (3,088) (2,058) 11. Financing activities Issue of ordinary share capital - 825 Bank loan 400 - Other loan 300 - Bank loan repayments (35) - Other loan repayments (171) - Investment income 23 - Interest paid (16) (96) Net cash from investing activities 501 729 12. Adoption of international accounting standards In the year ended 31 December 2007, the Group has adopted IFRS for the first time. The adoption of IFRS represents an accounting change only, it does not affect the operations or cashflows of the Group. As required by IFRS 1, the impact of the transition from UK GAAP to IFRS is explained below. The main reconciling items and their effects on the balance sheet are set out in notes 12 to 14. The presentational effects on the income statement are set out in note 15. Apart from the presentation effects for the year ended 31 December 2007, there are no significant differences between the Group's Profit and Loss Account under UK GAAP and the Income Statement under IFRS. The accounting policies published in the 30 June 2007 interim report have been applied consistently to all periods presented in this preliminary report and in preparing an opening IFRS balance sheet at 1 January 2006 for comparative purposes. IAS 38 - Intangible assets: software costs Under IAS 38 intangible assets including capitalised software costs, where they are not an integral part of the related hardware, should be disclosed separately in the balance sheet. This has resulted in a reclassification of software costs from tangible fixed assets to intangibles, (1 January 2006: £32,000, 31 December 2006: £14,000). IAS 2 - Inventories The film distribution library assets were treated as stock under UK GAAP. Under IFRS the film distribution library assets have been treated as non current assets. This has resulted in a reclassification of assets from stock to non current assets, (1 January 2006: £3,533,000, 31 December 2006: £3,400,000). The balance sheet extracts in notes 13 to 14 illustrate the impact of the above reclassifications as at 1 January 2006 and 31 December 2006. Other than these reclassifications between asset categories, there are no significant differences between the Balance Sheet under UK GAAP and IFRS. Consequently, no reconciliations of liabilities or equity are provided. IAS 1 - Presentation of Financial Statements Operating profit was disclosed separately on the face of the profit and loss account under UK GAAP. Under IFRS there is no requirement to disclose operating profit on the face of the income statement. Metrodome has disclosed headline operating loss (defined in note 2) and non-recurring items to give the reader a better understanding of the result for the year. IAS 7 - Cash Flow Statements The IFRS Cash Flow Statement presents cash flows in three categories: cash flows from operating activities, investing activities and financing activities. This has resulted in a reclassification of cash flow into the new disclosure categories. The IAS 2 reclassification of the film distribution library assets from stock to non current assets (described above) has resulted in a reclassification of cash flow from operating activities to investing activities, (31 December 2006: £2,013,000,). The cash flow statement in note 16 illustrates the impact of these reclassifications for the year ended 31 December 2006. 13. 1 January 2006 balance sheet extract UK GAAP IFRS IFRS adjustments note 12 (Unaudited) (Unaudited) (Unaudited) £000 £000 £000 Non current assets Property, plant and equipment 54 (32) 22 Intangibles 23 32 55 Film distribution library - 3,533 3,533 Trade and other receivables 135 - 135 212 3,533 3,745 Current assets Film distribution library 3,533 (3,533) - Inventories 227 - 227 Trade and other receivables 1,873 - 1,873 Cash and cash equivalents 2 - 2 5,635 (3,533) 2,102 Total assets 5,847 - 5,847 Total equity 1,403 - 1,403 14. 31 December 2006 balance sheet extract UK GAAP IFRS IFRS adjustments note 10 (Unaudited) (Unaudited) (Unaudited) £000 £000 £000 Non current assets Property, plant and equipment 67 (14) 53 Intangibles - 14 14 Film distribution library - 3,400 3,400 Trade and other receivables 28 - 28 95 3,400 3,495 Current assets Film distribution library 3,400 (3,400) - Inventories 271 - 271 Trade and other receivables 1,581 - 1,581 Cash and cash equivalents 123 - 123 5,375 (3,400) 1,975 Total assets 5,470 - 5,470 Total equity 2,592 - 2,592 15. Income statement for the year ended 31 December 2006 UK GAAP IFRS IFRS adjustments note 10 (Unaudited) (Unaudited) (Unaudited) £000 £000 £000 Revenue 3,747 - 3,747 Cost of sales (2,441) - (2,441) Gross profit 1,306 - 1,306 Other operating income 135 - 135 Operating expenses (2,119) - (2,119) Headline operating loss (678) - (678) Non recurring items - - - Loss on ordinary activities before (678) - (678) interest Finance costs (96) - (96) Loss before taxation (774) - (774) Income tax expense - - - Loss after taxation (774) - (774) 16. Cashflow statement for the year ended 31 December 2006 UK GAAP IFRS IFRS adjustments note 10 (Unaudited) (Unaudited) (Unaudited) £000 £000 £000 Operating activities Loss from operations (678) - (678) Adjustments for: Depreciation of property, plant & 32 - 32 equipment Impairment of goodwill 22 - 22 Amortisation of film distribution - 2,146 2,146 library Share based payment expense 16 - 16 Decrease/(increase) in inventories 89 (133) (44) Decrease in receivables 399 399 - Increase in payables 141 - 141 Net cash from operating activities 21 2,013 2,034 Investing activities Purchases of film distribution library - (2,013) (2,013) Purchases of property, plant and (45) - (45) equipment Net cash used in investing activities (45) (2,013) (2,058) Net cash from financing activities 729 - 729 Net increase in cash and cash 705 - 705 equivalents This information is provided by RNS The company news service from the London Stock Exchange END FR FKFKDKBKDCNB