DCD Media has a chequered history, but its latest makeover may last as the company seems to have cracked the American multi-channel television market. The offering is a little different to the UK celebrity genre, but seems to be flourishing. At present, the company is simultaneously filming three American reality series for three different broadcasters. There's Bridezillas (a show "where the brides go from sweet to certifiable"), The Exterminators (following zany Louisiana pest control officers) and Mall Cops, which follows security guards in shopping centres. Other US programmes have a medical tinge such as 650lb Virgin and 650lb Virgin: The Weight is Over.
At the same time, DCD must be thankful that US cable stations love its productions as it bemoans the lack of new costume dramas in the UK. The US accounted for nearly 30 per cent of 2008-09 sales and new chief executive David Green wants to push that figure to over 50 per cent in two years.
The latest trading results look better after an amortisation adjustment - and a big goodwill impairment in 2007-08. Normalised pre-tax profits were down slightly at £2.4m. The balance sheet also strengthened following November's cancellation of £6.9m of convertible loan notes in return for £2.5m cash and the issue of 7.63m shares. The remaining £2.9m convertible debt is redeemable in November 2012 or converted to shares at 18p a share.
There are no current forecasts for the company.
| DCD MEDIA (DCD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 9.38p | MARKET VALUE: | £5.73m | |
| TOUCH: | 9-9.75p | 12-MONTH HIGH: | 17p | LOW: 7p |
| DIVIDEND YIELD: | nil | PE RATIO: | 7 | |
| NET ASSET VALUE: | 31p* | NET DEBT: | 48% | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 3.1 | -0.6 | -0.1 | nil |
| 2006 | 13.3 | -1.2 | -7.5 | nil |
| 2007 | 26.8 | 0.8 | 2.6 | nil |
| 2008 | 34.0 | -25.4 | -49.5 | nil |
| 2009 | 34.5 | 0.5 | 1.3 | nil |
| % change | +1 | - | - | - |
*Includes intangible assets of £28.2m, or 53p a share | ||||
