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These results were overshadowed by the fall-out from the out-of-sequence trailer for RDF Media's production, A Year with the Queen, made for the BBC. It led to the suspension of commissioning of RDF programmes by BBC and ITV, and to the resignation of former chief creative officer, Stephen Lambert.
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But since the report into the incident concluded that RDF didn't intend to misrepresent the Queen, the company is confident that an agreement to lift the suspension will be agreed with ITV imminently, and expects that the suspension with the BBC will be lifted 'in due course'.
There was no real financial impact from the controversy in the first half, and these results suggest strong revenue growth. But adjusted EPS (which excludes exceptionals and goodwill amortisation) fell by 21 per cent to 4.4p, although this was partly down to increased investment, which should improve growth prospects going forward.
Broker Investec Securities forecasts full-year adjusted pre-tax profits of £8.4m (£8.1m) and EPS of 16.2p (16.7p), rising to £10.1m and 18.4p, respectively, in 2009.
| RDF MEDIA (RDF) | ||||
|---|---|---|---|---|
| ORD PRICE: | 189p | MARKET VALUE: | £78m | |
| TOUCH: | 186-192p | 12-MONTH HIGH: | 258p | LOW: 165p |
| DIVIDEND YIELD: | 1.6% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 63p* | NET DEBT: | 13% | |
| Half-year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 37.5 | 1.73 | 3.1 | nil |
| 2007 | 51.6 | -0.20 | -1.1 | nil |
| % change | +38 | - | - | - |
| *Includes intangible assets of £37m, or 89p a share. | ||||
Click here for a guide to the terms used in IC results tables
Broadcaster suspensions will hit full-year group performance, but this already looks factored into the share price. Furthermore, RDF Media's model of US expansion and rights exploitation, underpinned by favourable UK broadcast legislation, suggests the shares are a worth buying on a forward PE ratio of 11.
Last IC view: Fairly priced, 207p, 23 July 2007
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-IC-1.6.1b-prod - 17/12/2008 12:46:12 - jonathan.furseftb
