Excellent results, 1000% (11 times) sales growth
Financial Highlights:
Approx 1000% (11 times) sales growth
Approx 1900% (20 times) improvement in gross profit
Significant reduction in losses to US$360,000
Operating profit of US$34,000
H1 2007 (US$) H1 2006 (US$) Approx Change
Sales 12.72m 1.16m 1000% (11x)
increase
Gross Profit 7.58m 0.37m 1900% (20x)
increase
Loss from continuing
operations (0.36)m (4.10)m 91% reduction
For further information, please contact:
ResponzeTV PLC
Steven Goodman, Executive Chairman
Tel: + 852 2295 1161
Evolution Securities Limited
Bobbie Hilliam
Tel: +44 207 071 4300
ResponzeTV PLC
Interim Results 2007
Review of Trading
In the first half, the focus was on the integration of Reliant and Famous
Discoveries, increasing distribution capability and the development and launch
of new products. As a result, the Group now develops and sources products
through its international supply business, and has international distribution
through its fully integrated infomercial and TV home shopping businesses.
Product launches have included the 'Pressa Bella Steam Iron', the 'Mirabella
Steam Mop', 'Tru Color Sunglasses' and a number of branded items such as Chef
Robert Irvine's kitchen products and the Professor Amos and 'Stainz-R-Out' lines
of cleaning products. The Tony Little branded 'Rock n Roll Stepper', which
started testing in June 2007, has launched to particularly successful early
results and is expected to generate significant revenues in the future. More
product launches are in the pipeline and the Company aims to have a continuing
flow of products at different stages of development.
International distribution now comprises Reliant's infomercial business, Famous
Discoveries' home shopping business and supplies of products to third party home
shopping operations in key markets in North America, Europe and Asia from sales
offices in the USA, Europe, Hong Kong and Taiwan. In the UK, additional
distribution is provided through the 'Shop Now TV' infomercial joint venture
channel. The Company has also established a joint venture with a TV home
shopping channel to provide infomercial distribution for its products in Canada,
and targets to enter into similar arrangements in other markets.
The Company is targeting to become a leader in the development and sourcing of
products, the production of media and the distribution of products on leading
infomercial and TV home shopping channels in the principal home shopping markets
around the world.
Senior Management Changes
The period saw a major strengthening of the senior management team. On
completion of the acquisition of Reliant in January 2007, Kevin Harrington and
Tim Harrington joined the Board as Group Chief Executive Officer and Group Chief
Operating Officer respectively. The senior management team was further
strengthened on the acquisition of Famous Discoveries in March 2007 by the
addition to the team of Akos Jankura and Bill Barlow. They each bring
significant experience and expertise in the infomercial and TV home shopping
industry.
Results for the Period
The above mentioned changes were instrumental in producing significantly
improved results for the period.
Turnover for the period, of US$12.72 million, represented an increase of
approximately 11 times on the US$1.16m achieved in the same period last year.
Gross profit for the period was US$7.58 million, an increase of approximately 20
times on the US$370,000 achieved for the same period last year.
The loss for the period of US$360,000 represents an approximate 91% reduction on
the US$4.10m loss for the same period last year.
The Group achieved an operating profit for the period (excluding finance costs)
of US$34,000, compared to a US$2.75m loss in the same period last year.
A significant part of these improvements reflects the contributions of Reliant
and Famous Discoveries, although the period also saw continued improvement in
the International Supply business. Each of these businesses have benefited from
being brought together. The launch of the new UK Channel 'Shop Now TV' at
end-May 2007 was too late to make a meaningful impact on results in the first
half, but is expected to contribute to further sales growth in the second half
of the year.
These improvements have taken place during the initial period of integration of
the new businesses, developing the Group's distribution capability and focusing
on the development of new products and projects for launch in 2007 and beyond.
As the Company moves through this initial integration and development phase and
into a period of focusing on further sales growth, the Board expects to see
continuing improvement in results for the rest of 2007 and into 2008.
Current Trading and Prospects
The Board anticipates that trading in the second half will continue to show
further improvement.
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