DCD Media, in posting its financial results for the 18 months ending December 31, 2010, announced it is looking to secure additional funding, either in the form of debt or equity, with its board identifying “a requirement for further short-term working capital in the order of £1 million.”
The UK-based producer-distributor said it has received “strong indications of support” from its larger shareholders.
The financial results released by DCD reveal an increase in revenue, from £34.9 million in 2009 to £48.4 million, as well as an increase in gross profit, from £8.7 million in 2009 to £10.2 million in 2010. However, the company also posted an operating loss of £11.2 million, compared to a profit of just over £1 million in 2009, and an adjusted EBITDA of £2.3 million, compared to £3.0 million in 2009.
The company says the new funding would “help underpin its stability, and help management refocus its balance between profitable current production development and future growth,” as well as reduce the need to divert operating funds towards short-term, non-operating requirements.
“DCD Media has faced its challenges over recent months with cost and development initiatives, a reorganization of its production assets and a new funding proposal,” said CEO David Green in the report. “The Group has also recently been addressing the issue of succession planning within certain of its business areas.
“To address the production area, DCD Factual has been created to house the existing brands of West Park Pictures and Prospect Pictures, both of which have enjoyed successful production runs, and to ensure new talent can be attracted and incentivized,” he continued. “The foundations for this are now in place. To ensure its successful development, the Board considers that additional funding is required to support this division’s objectives.”
DCD Factual was established in September of 2010 , with former Steadfast Television chairman Charles Thompson brought in as creative director.