Shares in UK indie DCD have plunged by more than a third after the company reported a 94% drop in adjusted pre-tax profit for 2011.
DCD said yesterday it made £100,000 (US$156,700) in the 12 months to December 31 last year, compared with £1.8m for an extended comparable 18-month period in its previous financial year.
The company, which counts September Films, Prospect Pictures, Matchlight and Rize USA among its divisions, reported revenue from continuing operations of £21.8m for 2011, down a third from £32.4m for the previous 18 months. Its operating loss rose 64% to £1.8m.
DCD shares fell from 3p to 2p by the close of trading yesterday, giving the company a market capitalisation of £3.97m. The price had recovered somewhat today, taking the firm to £4.22m.
The losses were in part attributed to writedowns relating to discontinued division Done and Dusted, which produced T4 On The Beach for UK commercial broadcaster Channel 4, among other events.
Done and Dusted’s management team left last year. DCD said the decision to part ways would allow it to focus on its key activities of television production and distribution.
The company said its international distribution arm DCD Rights “was hampered by a difficult trading environment, coupled with a major buyer going into administration.
“Despite this backdrop, DCD Rights held its own and continued to expand in the international market. Many of the new shows acquired have been well received by network buyers around the world and also garnered numerous awards.”
Today’s share price represents a 73% drop from DCD’s year high of 8p, achieved after horse racing and sports betting specialist Timeweave bought up part of the company’s debt in February. Timeweave has since converted its DCD debt into a 29.99% stake in the company.
DCD said yesterday its board remains in discussion with the directors of Timeweave to “understand their intentions.”
The company said it was negotiating with its lenders over plans to reduce the impact of scheduled debt repayment in November but had to publish accounts before the process was complete.