BKR broadcast production services limited

inside trader recommendation

  1. 1,789 Posts.
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    Upfront - I'm positioned

    Came out this morning, horse has bolted unfortunately.

    Fundamentals of this business looks very promising.

    FY01 643K profit
    FY02 1,355K profit

    PE on FY02 figures 9.68 at 15 cents. Currently 19 cents seller.

    These figures are from Stock Doctor and reflect the underlying operating profit.

    Director purchased heavily in the last few days.

    Recent report on activities upbeat

    Name of Director Richard Anthony Llewellyn Becker

    Date of last notice 11/11/2002

    Part 1 - Change of director's relevant interests in securities

    Direct or indirect interest Indirect Interest

    Nature of indirect interest
    (including registered holder) Securities acquired by
    Becker Investments P/L,
    a company controlled by
    the director

    Date of change 18/11/2002

    No. of securities held prior
    to change 19,946,302 (including
    1,000,000 unlisted options

    Class Ordinary

    Number Acquired 639,000

    Number disposed N/A

    Value/consideration $95,850

    No. of securities held after
    change 20,585,302 (Including
    1,000,000 unlisted options)

    Nature of change On-market trade


    HOMEX - Sydney

    In welcoming you to this year's Annual General Meeting I would like
    to thank all our shareholders for their interest and patience as we
    continue to refine and build the Group's business. Beckers' strategic
    focus is to operate a diverse entertainment company that can respond
    to an ever changing marketplace while offering real growth
    opportunities, Our increased positive cashflows for the second
    successive year and our rapid repayment of bank debt, along with an
    improved profit, indicate that we are heading in the right direction.

    Over the past two years significant gains have been made in most of
    our operating divisions, with considerable scope for further gains if
    the current market conditions don't deteriorate. In film
    distribution, we have maintained our revenue levels from 2001 despite
    massive cut backs in last year's film acquisition budget. We expect
    to maintain film revenues in 2003 as we continue to pursue the lower
    risk film acquisitions policy instigated some years back. This
    activity feeds directly into our investment in Magna Pacific Pty Ltd,
    which is expected to contribute $1.5milllion to the Group from
    video/DVD sales in 2003.

    Exhibition revenue, which has shown relative stability in recent
    years, is expected to improve in 2003 as newscreens in Newtown,
    Byron Bay and Melbourne come on line in time for our second half.

    The difficult trading conditions in the Australian television market
    have been extensively reported in the press. Fortunately our program
    production income has been significantly supplemented by our outside
    broadcast business. We expect to maintain this position as television
    revenues are not expected to improve in 2003. However, it is
    reasonable to expect that, once Australian television sector
    improves, we will see an uplift in our local production income. Where
    we do see a marked improvement is in South East Asia, in particular
    in Indonesia and Singapore with production income expected to
    significantly improve on last year.

    A considerable effort is being made to improve the flow of
    information to shareholders, via our website. Early in the new year I
    encourage you to keep Lip to date with the Group's monthly activities
    in film and television by accessing our new website
    www.beckerentertainment.com.au, wwwdendy.com.au and
    www.magnapacific.com.au for regular updates.

    Traditionally earnings are stronger in the second half and under the
    prevailing conditions I can only expect the first half to be similar
    to last year however, as the now Dendy screens come on line, OSB
    delivers its first full year results and Magna delivers what we
    expect will be their best video line up to date, I believe we can
    show a marked improvement in the second half.

    Finally, I would like to thank my dedicated team of professionals for
    their tireless work. Also let me thank the Chairman Mr Greg Gardiner
    and the Deputy Chairman, Russell Becker and the Board for its counsel
    and support throughout the year.

    I feel confident that with the support of my team we can deliver
    another increase in operating profits in the 2003 year.

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Currently unlisted public company.

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