Overview: Bad Sisters drives top-line growth for Merman Television
Sharon Horgan’s London-based production company, Merman Television Ltd, has seen its revenue edge higher thanks to the global success of its output, notably the Apple TV+ series Bad Sisters. The newly filed consolidated accounts show the group recording revenues of £23.2m for the last financial year, a 12% drop from £26.32m the year before, highlighting the volatility of a TV slate tied to episodic commissions and streaming cycles. Still, the period marks a critical revenue milestone for the company as Bad Sisters contributes to a broader portfolio that spans acclaimed productions such as Divorce, Motherland, and Catastrophe.
Profitability and tax credits cushion losses
On a pre-tax basis, Merman Television Limited reported a loss of £4.48m, an improvement versus the £7m loss recorded in the prior year. The post-tax picture shows a modest rebound, with the group posting £167,428 in post-tax profit after receiving £4.65m in UK TV and movie tax credits. Directors described the year as a period of “successful trading” driven by progress on key productions and tight control of production and overhead costs. The tax credits, a common feature in UK film and television financing, helped translate the top-line revenue into a narrow bottom-line improvement despite the challenging market dynamics.
Production slate and strategic direction
The company’s leadership has long emphasised that Merman Television will continue to operate as a distinct entity, focused on developing and producing programmes for major UK broadcasters and streaming platforms. The 2024 accounts underscore the importance of the ongoing production slate, including high-profile series that have helped elevate Merman’s profile in competitive markets. The group notes that the second series of Bad Sisters was a “highly visible” highlight of the year, contributing to both prestige and revenue in a market where streaming services increasingly purchase complete IP or serialized packages rather than individual episodes.
Costs, cash and balance sheet dynamics
Cost of sales for 2024 stood at £25.56m, resulting in a gross position of negative £2.35m. The company also reported £612,481 in other operating income, contributing to the complex picture that many creative businesses navigate as they balance artistic ambition with financial discipline. Cash reserves fell sharply from £8.8m to £1.6m by December 2024, reflecting the cash-intensive nature of television production and the timing of tax credits and receipts. Accumulated profits totalled £553,575 at year-end, illustrating a track record of profitability on a net basis despite a tough year for cash flow.
People, governance and risk factors
The group employed 14 people during the year, a number that held steady while staff costs rose from £1.77m to £1.99m. Directors’ remuneration rose by 18% to £1.02m, with the top-paid director receiving £359,375. This compensation pattern mirrors the broader industry practice of linking executive pay to the ability to attract and retain top creative and production talent, an important consideration for a boutique independent producing firm. The board also noted staff retention and working relationships with broadcasters and talent as key assets amid a market that has seen broadcasters cautious in commissioning since the pandemic.
Market environment and forward look
The accounts flag broader pressures in the television market: broadcasters are tightening belts, commissioning is slower, and there is a growing emphasis on streaming services acquiring full IP rights. This shift can affect distribution revenue models and the ability of independent producers to capture long-tail returns. In response, Merman Television emphasises its commitment to strong relationships with key broadcasters and talent, and to maintaining a pipeline of high-quality projects across the US and UK. The directors stress that the company will continue to navigate external challenges while pursuing opportunities in premium content and branded entertainment, as well as short-form content, to sustain growth in a dynamic media landscape.
Conclusion
While 2024 presented a residual ebb in revenue and a tighter cash position, Merman Television’s year-end results reflect a resilient business able to translate its creative capital into a solid tax-credit-supported bottom line. The ongoing success of Bad Sisters and the broader appeal of the company’s slate position Merman to capitalise on demand for high-quality drama and comedy across streaming platforms and traditional broadcasters alike. As the media ecosystem evolves—with IP ownership increasingly central to value—Merman’s strategy to nurture relationships, continue producing distinctive content, and manage costs will be crucial for sustaining growth in the coming years.
