UK indie DCD Media has moved to reassure shareholders that despite a big fall in its share price over recent months the group is trading in line with expectations.
DCD’s share price stood at £3.70 (US$6.14) on May 30, but has today fallen to £1.60. This is slightly up from Wednesday (August 27), when it was down at £1.40.
The share price has been tumbling for some time now – on February 17, 2012, it was £62, for example – but the company said yesterday trading was “in line with directors’ expectations”.
As a result of the share dip, AIM-listed DCD released a trading update ahead of its interim half-yearly financial results, which are forthcoming at the end of next month. This noted growth at distribution arm DCD Rights “continues to perform on budget” and was growing, with the value of acquisitions up 30% year-on-year.
However, it acknowledged production remained a problem. Last October, it issued a profit warning after WE tv decided to cancel DCD’s revenue-driving reality series Bridezillas after eleven seasons. In May, another trading update warned the cancellation would impact full year revenues.
“The board is aware of the significant decline in the group’s share price over recent months and I would like to assure all shareholders that we continue to work to deliver sustained growth and shareholder value across a balanced business,” said DCD CEO David Craven in a statement.
DCD Rights is planning to launch new titles at MIPCOM, including Aussie drama The Gods of Wheat Street, which debuted on the ABC this year. DCD has been looking to the Australian scripted genre as a driver in recent times and found success with shows such as The Slap, The Code and The Straits.