Independent music business Chrysalis has slashed its losses despite a turbulent period, during which the group restructured itself and fended off a takeover attempt.
With a number of the group's artists, such as James Morrison and the Yeah Yeah Yeahs, enjoying chart success, the music publishing division experienced a recovery in net publishing share (NPS) - which consists of royalties received after payments to artists and writers. Music publishing NPS grew 15.1 per cent in the first half to £6.1m, and chairman Chris Wright says he's confident of a return to NPS growth in the full year.
Meanwhile, the CD and DVD retailing business, Lasgo, grew revenue to £13m from £12.6m a year earlier. An improved sales mix also helped divisional operating profit grow 30 per cent to £1.3m. Mr Wright assures that the division has continued to perform ahead of expectations, although he remains mindful of the volatile entertainment.
Numis Securities expects a full-year pre-tax loss of £3m, giving a loss per share of 3.9p (20.6p loss per share in 2008).
CHRYSALIS (CHS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 55p | MARKET VALUE: | £ 35.6m | |
| TOUCH: | 54-56p | 12-MONTH HIGH: | 120p | LOW:39p |
| DIVIDEND YIELD: | Nil | PE RATIO: | NA | |
| NET ASSET VALUE: | * | NET DEBT: | £10m | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Net dividend per share (p) |
|---|---|---|---|---|
| 2008** | 28.6 | -13.1 | -10.8 | Nil |
| 2009 | 31.2 | -2.55 | -3.45 | Nil |
| % change*** | +27 | - | - | - |
*Negative equity shareholders' funds **Seven months ***Annualised | ||||
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