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Boomerang flying high as it aims for lucrative stock market listing
(Western Mail Via Thomson Dialog NewsEdge) Independent television production company Boomerang yesterday announced it is to float on the London Stock Exchange. Its adviser Evolution has started a roadshow with City institutions, with the aim of raising pounds 3m when Boomerang lists on the Alternative Investment Market (Aim) later this month.
The float is anticipated to give the company a market capitalisation of pounds 17m. The majority of the equity will remain with the company's board of directors.
Cardiff-based Boomerang currently produces over 500 hours of television and radio content per annum for broadcasters including S4C, Channel 4, BBC Wales, ITV Wales, Sky and Discovery.
Under managing director, Huw Eurig Davies, the group has an established reputation in music, sport, drama, entertainment, children's and lifestyle programming.
The company was founded in 1994 and over the past two years has made a number of acquisitions which allowed it to diversify its programme genre offering.
The listing will give Boomerang the option of issuing equity to finance any future acquisitions.
External investors in the business include the Assembly's development bank subsidiary, Finance Wales, which took a minority stake in the business in 2005 after investing around pounds 1m. In the same year Boomerang acquired competitors Fflic and Alfresco.
Earlier this year it acquired Teledu Apollo for an undisclosed sum. Founded in 1993, Teledu Apollo has been awarded more than 140 commissions by S4C.
Among its best known programmes is the 2000 series Darn o Dir, a drama series portraying the lives of young people in rural Wales.
Boomerang's float is another boost for the independent television sector in Wales. In an era of industry consolidation the company is well placed to grow its revenues outside Wales, both organically and potentially through acquisition.
Yesterday Mr Davies said, "This float underlines our ambition to become one of the UK's leading independent television companies.
"Our acquisitions in recent years have provided us with a firm footing in terms of management and creative talent.
"We now look forward to further utilising these assets in our next phase of growth as a listed company."
Boomerang will join Llanelli- based television production and new media company, Tinopolis, on the London Stock Exchange. Tinopolis floated on Aim last year and subsequently acquired one the sector's biggest players TV Corp.
Yesterday the company published an upbeat trading statement to the City ahead of its full year results in January.
However, the company was hit earlier this year by the decision of BBC to end its educational platform Jam after complaints it was anti-competitive.
Tinopolis had commissions worth around pounds 1m.
In its trading update statement to the City for the 12 months to the end of September, it said, "The company continues to experience strong trading conditions and has made solid progress in meeting its objectives for the year.
"The BBC's decision to terminate its Jam project in March this year, which we reported in our interim statement, was damaging to our learning and new media business.
"Final settlement of our Jam contracts has now been agreed with the BBC in line with the information set out in our interim results.
"The directors expect to report results in line with market expectations.
"Revenue visibility across the group remains excellent and the directors view the outlook for the current year with confidence."
Copyright 2007 Western Mail & Echo Ltd, Source: The Financial Times Limited
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