18 August 2011 – interim results

Interim results to 30 June saw a modest rise in revenue to £163.6m (2010: £162.0m) helped by films such as The Kings Speech and this was a good performance as last year’s first half saw a number of popular films such as Avatar.  However, pre-tax profits before exceptionals fell to £10.1m (2010: £11.9m) and adjusted earnings per share fell to 6.6p  (2010: 6.8p).  The interim dividend was raised to 3.6p (2010: 3.4p).  The second half has started well helped by the latest Harry Potter film and the full year outlook remains solid.  However, net debt still stands at £100m, and although the shares stand on a prospective of just 10x and yield over 5.9% there is better value elsewhere.  The shares are a HOLD.