TV production group Boomerang Plus said today it was on the acquisition trail, despite adjusted operating profits falling 43% for the year to 31 May.

The company, which last week announced a £2.4m deal to acquire Indus Films, which produces Amazon with Bruce Parry, reported a fall in adjusted operating profit to £1.25m from £2.2m a year ago.

Boomerang said that pre-tax profits fell 16% year on year to £1.1m, with revenue dropping 5.6% year on year to £19.76m. It said it had felt the pinch from a "small number" of projects being delayed and cancelled and tighter budgets during the recession.

"It has been a difficult year for all UK broadcasters and this has inevitably had a knock-on effect on the television production sector, leading to increased pressure on programming budgets and margins," said Ruchard Huntingford, non-executive chairman of Boomerang.

He added that the company, which has £3.03m in cash and equivalents on its balance sheet, would continue to seek acquisitions that are "both a good strategic fit for the group and can add value for shareholders".

Profit margins at the company fell from 18.6% to 14.6% year on year as gross profit fell 26% to £2.88m.

The company also said it had racked up £70,000 in professional fees relating to a "unsuccessful corporate transactions".

Looking forward, Boomerang said it had "high visibility" over future commissions with £42.9m of programme revenue in the pipeline, including £16.9m for the current financial year, meaning revenues were secure until mid-2011.

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