Music artist management and services provider All Things Considered Group (LON: ATC) reported better than expected 2022 figures and managed to make a £10,000 underlying pre-tax profit. The Aquis-quoted has benefitted from a recovery in live touring activity and could make a larger underlying pre-tax profit this year.
In 2022, revenues were one-third higher at £12.1m, as recruitment of more managers and agents helped the business to grow and expand into North America. A £300,000 loss had been expected rather than the small profit.
Livestreaming service Driift is no longer consolidated following the investment from Deezer. There was a notional disposal gain of £2.51m on this transaction, which reduced the stake to 32.5%. There was a period when the loss was consolidated and part of the year when the share of the loss was included in the figures. That consolidated loss wiped out the profit made by the other activities. Stripping Driift out, continuing revenues more than doubled from £4.5m to £9.45m.
Artist representation increased revenues from £3.77m to £6.57m and it moved back into profit. Live revenues grew by 400%, while management revenues were one-third ahead. There are more than 500 live clients and more than 70 managed artists.
The services division revenues jumped from £779,000 to £2.87m. That includes gross commission of $2.3m – $1.15m net – for advising on the acquisition of Napster by a US shell. This means that this year’s revenues are likely to be much lower, although there could be further one-off business.
Net cash before long-term loans was £1.4m at the end of 2022. There is long-term debt of £1.2m, including £900,000 payable over the period up to 2030.
Driift could be a valuable investment and it has cash to fund growth. The share of the Driift loss will continue to hold back profit, but Canaccord Genuity forecasts a 2023 pre-tax profit of £200,00. That is on reduced revenues of £7.7m because of the deconsolidation of Driift and the one-off commission in 2022.
The share price is unchanged at 92.5p. There have been no trades since Tuesday.
