Interim Results Presentation. 25 August 2009

Transcription

1 Pinewood Shepperton plc The leading European provider of services to the worldwide film and television industry Interim Results Presentation 25 August 2009

2 INTRODUCTION IVAN DUNLEAVY, CHIEF EXECUTIVE PATRICK GARNER, FINANCE DIRECTOR SUMMARY FINANCIAL REVIEW MARKET AND OPERATING REVIEWS PROJECT PINEWOOD PINEWOOD TORONTO STUDIOS CURRENT TRADING AND OUTLOOK 1

3 2009 INTERIM RESULTS SUMMARY Interim results are in line with market expectations Revenue of 20.3m (2008: 21.7m) Operating profit of 3.3m (2008: 4.8m) Profit before tax of 1.7m (2008: 3.8m) Diluted earnings per share 2.8p (2008: 7.4p) Diluted earnings per share adjusted for the effect of indexation on deferred tax provision and exceptional items 2.6p (2008: 5.9p) Interim dividend 1.05p (2008: 1.05p) Concluded long term sales and marketing agreement with Pinewood Toronto Studios Planning application for Project Pinewood submitted following extensive public consultation 2

4 H REVENUE Film: Film production phasing Television: Growth in market share Broadcaster pressures on budgets Media Park: Stable rents and occupancy levels 3

5 H PROFITABILITY Margins: Gross margin at 36% (H1 2008: 42%) Operating margins at 16% (H1 2008: 22%) Impact of operational gearing Finance costs: Amortisation of loan issue costs Increased debt versus 30 June 2008 EPS: Diluted 2.8p (2008: 7.4p) Dividend: 1.05p (2008: 1.05p) 4

6 NET DEBT Facilities: Bank facilities in place until August 2013 SSPP facilities in place until 2026 Cash flow: Operating cash flow 5.2 Finance costs ( 1.5) Tax ( 0.7) Capex ( 3.3) Other 0.1 Debt movement ( 0.2) *restated 5

7 FILM Film revenues resilient despite wider market factors MARKET REVIEW Consumer demand for Film is strong Lack of access to film financing has resulted in producers taking longer to commence production Resolution of Screen Actors Guild (SAG) negotiations Demand for UK studios aided by competitive UK film tax regime OPERATING REVIEW Film revenues at 11.8m (2008: 13.0m) 58% of total revenue (2008: 60%) Post production benefitted from restructuring initiatives, modest investment and recent success e.g. Slumdog Millionaire Renewed contract with Disney Character Voices to provide its international versions Robin Hood Adventure Gulliver s Travels Cemetery Junction Clash of the Titans 6

8 TELEVISION Television revenues have performed strongly in a difficult market MARKET REVIEW OPERATING REVIEW Demand for content is strong Ongoing pressures on broadcasters production budgets Searching for cost effective solutions Producers now seek a full service offering Studio based productions Television revenue 5.5m (2008: 5.8m) 27% of total revenue (2008: 27%) Our offering is attractive to broadcasters and independent production companies Commercials including: Pepsi, HSBC, Ford and Johnson & Johnson Hosted productions including: The Weakest Link, Harry Hill s TV Burp, Britain s Best Dish and Wogan s Total Recall 7

9 MEDIA PARK Continued demand during the period MARKET REVIEW OPERATING REVIEW Demand for Media Park facilities resilient Requirement for flexible accommodation Media clusters are attractive Revenue of 3.0m (2008: 2.9m) excluding Shepperton Studios Property Partnership ( SSPP ) Rental levels remained stable and occupancy levels high 305 (2008:290) businesses now based at the Studios as at 30 June 2009 SSPP continues to progress in line with expectations 8

10 PROJECT PINEWOOD A living and working community for the creative industries Planning application for Project Pinewood submitted to South Bucks District Council on 1 June 2009 Situated on green belt land next to M25 and adjacent to Pinewood Studios Total costs incurred from inception to 30 June 2009 in relation to the application were 4.0m Widespread support from the film and television industry Project is consistent with our overall strategy for growth Likely to be delivered after the current property cycle Seek development partners at appropriate time 9

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12 PINEWOOD TORONTO STUDIOS Concluded a long term sales and marketing agreement with Pinewood Toronto Studios Pinewood Shepperton will receive a base fee and a performance fee Comprises seven newly built sound stages including a 46,000 square foot MegaStage, the largest of its kind in North America Value of film and television production in Ontario is circa CAN$700m Complements our UK business 11

13 CURRENT TRADING AND OUTLOOK Film revenues for the remainder of the year will depend, as ever, on the timing of new film starts in the latter part of the second half Television revenues are expected to be stable Media Park revenues should remain robust Healthy performance in challenging times 12

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