Dear colleagues,

Reflecting back on another year, the Palma Pictures’ team found itself working across an increasingly broad spectrum of visual content. Traditional TVC spot advertising, print and branded content projects, as well as reality shows and television series all visited our Spanish shores over the course of 2016.

With our team embracing the increasingly fast paced challenges of delivering production solutions to our global client base we saw revenues of 15.98M€ (17.6M€) with EBITDA at 513K€ (809K€) for the Palma Pictures Media Production Group.

Clients from 15 territories elected to shoot their TVC spots with us across Spain. The UK remained our strongest performing market and contributed significant volumes of shoot days (27%), followed by Germany (18%), with France (9%), USA (9%), Canada (8%) and Italy (7%) also performing well.

Our staff and freelance crews worked tirelessly over the course of the year to deliver 'Picture Perfect Service' to our varied clients. We were delighted to bolster our talent base and made a spate of new hires including; Paul Abrey (Managing Director), Natalie Newell (Executive Producer - Photo & Motion), Matteo de Castello (Business Development Film & TV) and Joanna Shaw (Executive Producer - USA).

Clients from 15 territories elected to shoot their TVC spots with us across Spain.

Chye Yee Chow (Executive Producer - China), also launched our first ever Chinese office in the bustling metropolis of Shanghai.

We enjoyed a strong dynamic at our quarterly board meetings with advisors to the board George Entwistle (ex Director General - BBC) and Joseph Petyan (Executive Partner - J Walter Thompson London) helping us to hone our strategic direction.

Palma Pictures 'Photo & Motion' had a quieter year with revenues at 1.55M€ (2.38M€) with Print work being shot for clients such as: H&M, Renault and Martini, as well as Motion clients including: John Lewis, Phillips and Tesco.

Spurred by the Golden Globe and EMMY winning success of 'The Night Manager', our Film & TV work continued to roll in over the course of the year. ITV Studios, Warner Brothers International and Carnival Films all chose to shoot against the backdrop of our Spanish locations and we were also delighted to welcome 'Love Island' back for a second season.

CSR activities continued apace and we passed our environmental audit for the seventh year running, retaining both our ISO 14001 and EMAS certifications. Other activities included our ongoing support for local charities, with forty of our team also spending the day with the excellent charity ASPACE, a local centre focused on helping children with mental disabilities.

We maintained our annual investment program to keep our equipment inventory abreast of ongoing technical innovations in content capture, as well as upgrading our studio with the latest DMX intelligent lighting software.

Our Spanish mainland office, based in Barcelona, shot in multiple destinations across the country, as well as the Canary Islands, servicing some great work for brands such as 'Penzoil' and 'Deutsche Bank', as well as our first ever Super Bowl ad for 'Wix' where we enjoyed the company of Jason Statham and Gal Gadot.

All in all, an action packed twelve months and we'll look forward to sharing our latest news with you in the next edition of our Palma Pictures Annual Report.

Mike Day

Palma Pictures CEO