(PFO.L) Prime Focus London PLC Buy/Sell

RNS Number : 0385A Prime Focus London PLC 01 October 2009

Prime Focus London plc ("the Company")

Result of Annual General Meeting

The Company is pleased to announce that all resolutions proposed at its Annual General Meeting held on 30 September 2009 were duly passed.

1 October 2009

For more information, please contact:

Tony Bradley

Group Communications Director

020 7565 1000

tony.bradley@primefocusworld.com

Charles Stanley Securities

(Nominated Adviser)

Philip Davies / Carl Holmes

020 7149 6000

This information is provided by RNS The company news service from the London Stock Exchange

RAGFSWSUFSUSESS

RNS Number : 6658Y
  Prime Focus London PLC
  08 September 2009
   

Prime Focus London plc

AUDITED RESULTS

FOR THE YEAR ENDED 31 MARCH 2009

Chairman's Statement

The Board of Prime Focus London plc (formerly VTR plc) (the Group) is pleased to announce the results for year ending 31 March 2009 presented according to International Financial Reporting Standards (IFRS).

This past year has been a difficult trading year with the effects of the 'credit crunch' filtering through the global economy. Business conditions have been difficult in all sectors and Media and Entertainment services have been no exception. According to PricewaterhouseCoopers, Global Entertainment and Media (E&M) Outlook 2009-2013 report, growth in the UK E&M market slowed to 1.5% in 2008 and it is expected that the market will experience a cumulative 7.2% decline in revenue from 2008-2010, from USD 92 billion to USD 85 billion.

Advertising spends were reduced impacting TV and print sectors which depend on advertising revenues. Film production spend was also down, by 23% to GBP 578million, in 2008 according to the World Film Market Trends Focus 2009 report. This was compounded by the US writer's strike and actor's dispute in the US.

In line with the above, the year to 31 March 2009 the Group made a profit before tax of £ 216,913 on a turnover of £15,895,832 compared to a profit before tax of £472,538 on a turnover of £17,964,406 for the year ended 31 March 2008. Earnings per share were 1.48 pence per ordinary share based on share capital as at 31 March 2009 compared with earnings per share of 2.11 pence for the year ended 31 March 2008.

We had informed the market that we were predicting a trading loss for the year ended 31 March 2009. The above profit before tax is as a result of exceptional and extra-ordinary income, and recognition of deferred tax asset, additional details of which form part of the accounts and notes thereof. 

Net debt was £4,158,205 at 31 March 2009 compared to £4,049,010 as at 31 March 2008 and gearing at the year end was 50.67% compared to 37.32% as at 31 March 2008. 

The integration with other acquisitions made by the Prime Focus Limited, a company incorporated in India ("Parent Company"), over the last few years in North America (Frantic Films VFX Inc. and Post Logic Studios Inc.) is now complete giving the Parent Company a strong presence in every major market in India, North America and Europe. This will enable us to build a platform for strong growth in the years to come. Our worldsourcingTM model allows us to leverage the Group, using the Parent company's global network, to provide unique access to the best global talent and the most cost effective solutions to clients across the world, without compromising on quality, timing or accountability.

Corporate Restructuring

As at the end of the last financial year, we were keen to streamline the UK group structure to get clear identifiable trading businesses which are distinct from each other and offer greater visibility to all stakeholders. During the year, as a result of the restructuring, Outpost Post Production Limited (formerly known as Video Tape Recording Limited) and Clear (Post Production) Limited were placed in administration and liquidation respectively.

Our challenge this year was to marry this aim with the Parent Company's global strategy to use the same brand names for all the Group businesses to allow for better integration and clarity.

Consequently, we are in the process of structuring all our Soho based businesses into distinct business lines which will operate within a single company Prime Focus London Plc. The business lines are;

* Commercials post production - a high-end post production arm.

* Broadcast post production - consisting of the trading activities of Blue Post Production Limited and The Machine Room Limited.

* Feature Film Visual Effects - consisting of the trading activities of Machine Effects Limited which provide cutting edge visual effects services for feature films.

In addition to the above, the Group has separate companies for joint ventures partnerships and non post-production related businesses such as K-POST, which is with JWT based out of Knightsbridge.

The remaining dormant companies whose activities have already ceased or have been merged into one of our five new business units will be liquidated. 

Management

I had mentioned in the previous year annual report that Anshul Doshi (member of the Board) took over the role of Group Managing Director, but would still retain his prior role as Finance Director until such time as a suitable replacement was identified for the role of either Group Managing Director or Finance Director.

I am pleased to announce that Neil Barnett joined in January 2009 as the Group Chief Financial Officer. Neil is a member of the Chartered Institute of Management Accountants and his previous experience includes 10 years as Chief Financial Officer and Company Secretary of Cinesite, where he oversaw its growth into one of the world's largest and leading companies providing film services.

Effective from February 2009, Michael Constantine has joined as the Director of Global Marketing. Michael has over 25 years experience in marketing and is a former agency leader at the prestigious Leo Barnett agency. Michael is to be instrumental in the development of the company's market and brand positioning, helping to build the group's business and reputation worldwide and oversee partner and supplier relationships

Strategic appointments were made into the commercials, broadcast and Digital Asset Management areas of the UK business. Daniel Sapiano (Commercial Director) and Beth Vander (Head of Production) were recruited from respected commercial post house, The Mill whilst Tareq Kubaisi returned to Prime Focus. His appointment was a major statement of intent to the industry as he is one of the top colourists and creative talents in the UK today.

Outlook

The current year has seen a difficult start as confidence in the economy remains fragile. However, despite operating in trying times, I feel that we have made strategic moves which will put us in prime position to take advantage of the imminent recovery. As per the above mentioned PricewaterhouseCoopers report, the global E&M market is estimated to grow at 2.7% annually to reach a size of USD 1.6 trillion in 2013.

In particular, we are excited by the roll out of our above mentioned worldsourcingTM model and the positive impact it will have on all aspects of the business. The coming year should see the strength of Prime Focus as a global brand fuel our recovery and put us in a position of strength going forward.

Namit Malhotra

Chairman

7 September 2009
      Managing Director's Review

Leading on from the chairman's comments, I would like to begin by echoing his sentiments pertaining to this being a difficult trading year as a consequence of the prevalent economic conditions. This has impacted our financial performance this year; however, a strong sales drive and important cost reduction steps, including salary reductions for staff, will mitigate the negative impact going forward. Looking at the individual elements of our business:

* Commercials division offers high-end visual effects (VFX), colour grading, and full post-production services to the international commercials, music video and feature film industries. 

The year saw a major restructure of the commercials business with a revitalisation of the operational and technical infrastructure of the division and a renewed commercial strategy that saw brand development and market awareness increase immeasurably.

An aggressive sales initiative on the commercials side of the business led to us winning work on major brands such as Herbal Essences, Citro? Macleans, Kenco, Nike, Givenchy and McDonalds for some of the world's biggest agencies including JWT, M&C Saatchi, DDB and Euro RSCG. 

We have recently won prestigious accounts for 118118 and AVIVA, and concluded successful projects such as the 'Rubberduckzilla' used in the Oasis advertising campaign and a series of indents for the rebranding of UKTV style channel amongst others.

On the music side, work was completed over the year on promos for Prince, Kanye West, Girls Aloud and U2 as well as the full HD post production and effects on the concert film of Madonna's worldwide 2008/2009 tour.

* Broadcast division offers the top-end broadcast post-production - from short-form titles sequences, idents and on-air promos to long-form television programming such as documentaries, sitcoms, dramas and factual series.

The broadcast division continued to reinforce its already strong reputation in the industry by providing full picture and sound post production services on major projects such as Great British Menu, EMMY Award winning - The Beckoning Silence, The Hottest Place on Earth, Criminal Justice, The American Future, Jamie Oliver's Ministry of Food and Piers Morgan series. 

These were delivered to a variety of broadcasters including Discovery Channel, National Geographic, Sky, BBC, BBC HD, ITV and five.

* Feature Film Visual Effects (VFX) division offers a full range of services to film and broadcast including pre-production, pre-visualisation and design, VFX supervision, 3D animation, matte paintings, digital grading and title design.

Machine Fx will move into the Group's headquarters on 64 Dean Street. They have continued their work to position themselves in the international and local markets, leveraging on the scale of the Parent Company. Recent films they have worked on include the," the British film "Franklyn" which involved completing 45 shots in just six weeks. They have now completed their work on films, such as 10,000 BC, Fred Clause and the latest James Bond flick "Quantum of Solace."

* Outside facilities - K