Boomerang Plus profits down 19%
26 October, 2009 | By Katherine Rushton
Welsh indie Boomerang Plus saw a 19% drop in operating profits in the year to 31 May because of delayed and cancelled projects, commissions which underperformed financially, and a “general downward pressure” on programming budgets.
Its operating profit fell from £1.40m in 2008 to £1.14m, whilst turnover dipped 5.6% from £20.93m to £19.76m. The figures follow a profits warning in July and were in line with adjusted expectations.
Boomerang, which last week acquired Amazon-producer Indus, also revealed in its results that it had spent £100,000 “in relation to a failed merger”, understood to be the deal with DCD Media which collapsed in April 2008.
However, the company’s outlook remained positive despite the difficult year. Chief executive Huw Eurig Davies said Boomerang had a strong balance sheet, a diverse production base, and good visibility which would help it move forward.
“Boomerang has enjoyed some very positive and exciting developments over recent months despite the tough financial climate.
“We are very well positioned with good revenue visibility, a strong balance sheet and a market offering which is highly favoured by the regulatory environment. This provides an excellent platform for the next phase of the group’s growth,” he said.
In particular, Boomerang has a three-year production contract with S4C worth £12m, and nearly doubled its AFP revenue to £1m during the 12-month period.
More broadly, the company has pinned its hopes on broadcasters’ ambitions to secure more network content from the nations and regions, and hopes to “a major supplier to UK networks looking to satisfy their quotas”.
It has secured new network commissions from CBBC and Channel 4 during the period.