Overview: Bad Sisters boosts Merman Television’s profile and revenue
Bad Sisters has become a major driver of growth for Merman Television Ltd, the London-based production company led by writer, director, and actor Sharon Horgan. New consolidated accounts show the group’s post-tax profits nearly halved year-on-year, but the wider business narrative remains positive as high-profile series and strategic licensing continue to support the company’s footprint in the US and UK markets.
Financial snapshot: revenue down, profits cushioned by tax credits
The accounts reveal a 12% decline in revenues for the last financial year, dropping from £26.32 million to £23.2 million. The group posted a pre-tax loss of £4.48 million, an improvement from £7 million in 2023, and a post-tax profit of £167,428 after securing £4.65 million in UK TV and film tax credits. These figures illustrate a challenging year on the top line, yet one in which the company benefited from supportive tax incentives that help soften the ultimate bottom-line impact.
Strategic wins: Series 2 of Bad Sisters and continued success of flagship brands
According to the directors, the period was defined by ongoing momentum on major productions. The 2024 highlight was the screening of Series 2 of Bad Sisters on Apple+. This release likely contributed to enhanced visibility for Merman’s slate, alongside enduring hits such as Divorce, Motherland, and Catastrophe. The company’s leadership attributes the “successful trading period” to progress on key productions and disciplined management of production and overhead costs.
Operational context: staffing, leadership, and governance
Staffing levels remained stable at 14 employees, although staff costs rose from £1.77 million to £1.99 million. Directors’ pay also increased, by 18% to £1.02 million, with the highest-paid director earning £359,375. The group continues to operate as a distinct entity focused on creating and executing branded entertainment and premium short-form content for major broadcasters and streaming platforms across the UK and US.
Balance sheet and liquidity: cash slide and equity position
The group’s cost of sales for 2024 totaled £25.56 million, yielding a gross loss of £2.35 million, though the business benefited from other operating income of £612,481. Accumulated profits stood at £553,575 at year-end, while cash reserves fell sharply from £8.8 million to £1.6 million. This liquidity shift highlights the cash-intensive nature of television production and the timing of tax-credit receipts, which can affect near-term cash flow even as the longer-term revenue stream remains intact.
Strategic risks: a tougher funding and commissioning landscape
The directors flag a cautious macro environment for broadcasters, noting belt-tightening and slower commissioning post-pandemic. They point to broader industry shifts driven by streaming platforms, which are changing how content is financed and distributed. The rise of new services acquiring broader intellectual property rights could compress traditional distribution revenue streams if commissioning shifts away from episodic orders toward all-rights models. Merman states it will maintain strong relationships with broadcasters and talent to navigate these changes.
Looking ahead: continued growth with a focused strategy
Founded in 2014, Merman remains a prominent player in the independent TV space, pursuing high-quality productions for both UK broadcasters and streaming platforms. The board emphasises that the company will continue to operate as a distinct entity, prioritising development and production while adapting to an evolving landscape where streaming, IP ownership, and flexible commissioning models influence revenue streams.
