Delayed projects explain the modest revenue growth in the period at DQ Entertainment - which designs and produces animation and video effects for feature films. But management is confident that those projects will come through in the second half.
In fact, trading isn't really that bad at all. The group's cash profits, for instance, rose 19 per cent to $8.18m (£5.1m) in the period with the fall in pre-tax profits being largely down to a fairly hefty hike in the group's financing costs. Management says that the group boasts a dynamic but low-risk business model that develops classical iconic intellectual properties in a "new age of digital frontiers". And, at end-September, the order book stood at $155m (£98.28m) against $140m a year ago - encouragingly, the group has also signed a number of deals with new clients. What's more, the company can claim some revenue visibility over the coming five years - with more than 40 television series in development, plus three animated feature films. They are The Jungle Book, The New Adventures of Peter Pan, The Phoenix and the Flying Carpet - and are due to be released from 2013 onwards.
DQ ENTERTAINMENT (DQE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 44p | MARKET VALUE: | £15.8m | |
| TOUCH: | 42-47p | 12-MONTH HIGH: | 147p | LOW: 44p |
| DIVIDEND YIELD: | nil | PE RATIO: | 5 | |
| NET ASSET VALUE: | 206¢* | NET DEBT: | 18% | |
| Half-year to 30 Sep | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2010 | 18.7 | 2.99 | 3.28 | nil |
| 2011 | 19.9 | 2.71 | 5.76 | nil |
| % change | +6 | -9 | +76 | - |
Ex-div:- Payment:- Aim: media £ =$1.61 *Includes intangible assets of $63.7m, or 177¢ a share | ||||
