RNS Number:7045V
First Artist Corporation PLC
30 April 2007
First Artist Corporation plc ("the Group")
Interim Results for the six months ended 28 February 2007
First Artist Corporation plc, the integrated marketing, sport and entertainment
management group, today announces its Interim Results for the six months ended
28 February 2007.
Financial Highlights
* Turnover rose 309% to #18,480,000 (2006: #4,513,000)
* Earnings Before Interest Tax and Amortisation (EBITA)* up 854% to
#687,000 (2006: #72,000)
* Retained profit increased #104,000 to #76,000 from a loss of #28,000 in
the first half of 2006
* Earnings Per Share (EPS) increased 0.95p to 0.64p from a loss per share
of 0.31p in the first half of 2006 (before tax, amortisation of goodwill
and exceptional costs)
* Consolidated assets up 90% to #6,383,000 (2006: #3,356,000)
Operational Highlights
* Successful integration of all acquisitions, transforming the Group's
business portfolio
* Acquisitions in the period include:
- Dewynters - the leader in entertainment and theatre marketing in the
UK.
- Newman Displays - The UK's leading front of house and facia display
manufacturing and design company
* Group now consists of five balanced business areas; Marketing, Sport,
Wealth Management, Events and Entertainment
*Before exceptional items associated with the acquisition programme
Jon Smith, Chief Executive, said:
"The significant improvement in the Group's figures and in the performance of
several of the Group's divisions is a clear illustration of the success of our
stated strategy of developing an integrated marketing and sport, entertainment
management group. This holistic approach is resulting in an increasing number of
cross referrals between the divisions and we look forward to this momentum
continuing throughout the year and beyond."
-ends-
Enquiries
First Artist Management plc
Jon Smith, Chief Executive
Richard Hughes, Group Managing Director Tel: +44(0)208 900 1818
Bell Pottinger Corporate & Financial
Peter Otero / Rosanne Perry Tel: +44(0)207 861 3232
First Artist Corporation Plc ("FAC")
Interim Report for the Six months ended 28 February 2007
CHAIRMAN'S STATEMENT
It gives me great pleasure to introduce our results for the six months ended 28
February 2007. They report an interim profit after tax of #76,000 and an
operating profit (before exceptional administration expenses), of #687,000,
which is in line with our expectations. Exceptional items in the period of
#312,000 reflect costs associated with the acquisition programme.
The Group continues to be second half weighted although to a lesser extent. The
Sport division, due to the football trading windows, essentially only trades for
one complete month during the period and for this year Dewynters was included
for only part of the period.
The significant improvement in the Group's figures and in the performance of
several of the Group's divisions is a clear illustration of the success of our
stated strategy of developing an integrated marketing and sport, entertainment
management group. This holistic approach is resulting in an increasing number of
cross referrals between the divisions and we look forward to this momentum
continuing throughout the year and beyond.
The acquisitions made last summer have now been fully integrated and are
contributing to the strong performance of the Group. In particular the
acquisition of Dewynters and its sister companies Dewynters Advertising Inc. and
Newman Displays has significantly broadened the Group's business base. Dewynters
is an iconic brand in its own right, holding a dominant position in the UK
theatre and entertainment industry. Its US merchandising operation currently
works on three Broadway shows, a number in Las Vegas and additional supporting
touring shows. With at least three new US show agreements soon to be announced
the future of this operation is extremely bright.
The Dewynters acquisition has not only greatly increased the size of the Group,
but also significantly enhanced visibility of earnings and profitability. This
provides a solid platform from which to build on the Group's organic growth, in
addition to developing the acquisition programme based upon strong financial
controls and reporting systems.
The financial highlights of the Group compared with the 6-month period to 30
April 2006:
*Earnings Before Interest Tax and Amortisation (EBITA)* up 854% to
#687,000
*Retained profit increased #104,000 to #76,000
*Turnover rose 309% to #18,480,000 (2006: #4,513,000)
*Group Headcount has increased from 20 to 239 staff within 2 years
*Earnings per Share (EPS) increased 4.97p to 5.77p
(before taxation and exceptional costs)
*Consolidated net assets up 90% to #6,383,000
*Successful integration of all acquisitions
*EBITA is stated before exceptional administrative expenses
OUTLOOK
The Group has grown considerably over the last two years and will continue to do
so following the successful integration of the acquired businesses. This level
of growth has been supported by a significant investment in strong financial and
operating reporting systems, controls and corporate governance.
The Group strongly believes in the investment in development and incentivisation
of its staff. We will continue to follow these principles into the future with
the new Sharesave scheme, which will be launched in the UK soon. We will also
continue to invest in improved IT and communications networks, which will
deliver enhanced quality assurance and client support whilst maintaining
flexibility in our fast moving environment.
We have a committed strategy to grow a broad based group around the five
distinct divisions of Marketing, Sport, Wealth, Events, and Entertainment and we
actively seek appropriate acquisitions and joint venture opportunities within
these sectors, and in particular;
*Event management businesses: to further expand our corporate business and
develop own venues to market and manage.
*Public relations: to enable us to promote our representation and
corporate clients.
*Wealth management: to increase our client base and geographical
positioning either through acquisitions or by joint ventures with other
professional service companies.
*Ancillary support service businesses, such as publishing, which would
work across the full spectrum of Group companies.
The first half of the year has clearly demonstrated the success of our growth
strategy, all acquisitions having been fully integrated within the period. The
Group is trading in line with expectations and the Board remains optimistic
about the Group's continued growth for the remainder of the year and beyond. In
particular, the Sport division should benefit from the knock on effect of the
significantly increased TV rights monies, which commence this summer and the
Events division from the strong recovery of the corporate sector and term
extension to its Public Sector contract.
We will continue with the strategy of strengthening our position in the UK and
Europe through targeted organic and acquisitive growth. This will be firmly
underpinned by a solid business operating strong financial and operational
systems. We look forward to the future with confidence.
Jarvis Astaire
Chairman
30th April 2007
OPERATING AND FINANCIAL REVIEW
This Review covers the activities of First Artist Corporation during the six
months to 28 February 2007. Due to the change in the Group's year-end to 31
August, the first half comparatives are against the six month period ended 30
April 2006.
SUMMARY RESULTS FOR THE PERIOD
Unaudited Unaudited Audited
6 months 6 months 10 months
ended ended ended
28 February 30 April Variance 31 August
2007 2006 2006
(Restated) (Restated)
#'000s #'000s #'000s #'000s
Turnover 18,480 4,513 13,967 9,508
---------------------------------------------------------------
Adjusted Operating
Profit* 687 72 615 1,620
Exceptional items (312) (5) (307) (170)
---------------------------------------------------------------
Operating Profit 375 67 308 1,450
Net interest (422) (54) (368) (283)
---------------------------------------------------------------
(Loss)/profit before
tax (47) 13 (60) 1,167
Taxation 123 (41) 164 (502)
Retained Profit/
(Loss) 76 (28) 104 665
===============================================================
EPS** 0.64 pence (0.31) pence 0.95 pence 7.18 pence
(Basic earnings/(loss)
per share)
Adjusted EPS** 5.77 pence 0.80 pence 4.97 pence 17.48 pence
(Basics earnings per
share before exceptional
items)
*Adjusted Operating Profit is stated before exceptional
administrative expenses
**Earnings per share for comparative periods has been restated to reflect the share
consolidation on 27 December 2006
TURNOVER
Turnover for the period has increased 309% compared to the six month period
ended 30 April 2006, largely due to inclusion of revenue contribution from the
acquisitions of Dewynters Group, First Artist Scandinavia A/S, NCI Management
Limited and Sponsorship Consulting Limited.
ADJUSTED OPERATING PROFIT
The operating profit for the Group, before exceptional administrative expenses,
was #687,000 an increase of #615,000 compared to the six month period ended 30
April 2006.
DIVISIONAL RESULTS
Unaudited Unaudited Audited
6 months 6 months 10 months
ended ended ended
28 February 30 April 31 August
2007 2006 2006
(Restated) (Restated)
#'000s #'000s #'000s
Marketing 12,556 - 49
Sport 1,471 949 4,162
Wealth 1,164 1,060 1,873
Events 2,902 2,362 3,093
Entertainment 387 142 331
-------------------------------------------------
Turnover 18,480 4,513 9,508
=================================================
Marketing 836 - -
Sport (415) (303) 1,092
Wealth 289 452 801
Events 339 176 218
Entertainment 73 63 132
Group Costs (435) (316) (623)
-------------------------------------------------
Adjusted Operating Profit* 687 72 1,620
=================================================
*Adjusted Operating Profit is stated before exceptional
administrative expenses
N.B. A more detailed composition of the results by division can be seen in the
business reviews.
EXCEPTIONALS
Exceptional costs in the period resulted from various acquisition costs, as well
as closure costs associated with FIMO Sport Promotion AG and First Artist
international Limited.
First Artist International has been dissolved. FIMO is due to be dissolved
before the financial year-end.
INTEREST PAYABLE, FUNDING AND LIQUIDITY
At 28 February 2007 the cash balance of the Group was #2,471,000, up #1,780,000
compared to the six months ended 30 April 2006.
Net interest payable was #422,000, of which #135,000 relates directly to the
unwinding of the discounted deferred consideration, in accordance with FRS7,
'Fair value in acquisition accounting'. This FRS7 charge is a non-cash
adjustment and relates to the provision of a net present valuation on deferred
consideration required under this standard.
During the period the Group secured a new seven-year loan facility of
#11,000,000 and a new two-year mezzanine banking loan facility of #2,785,000,
both with Allied Irish Bank. These were used to provide working capital and to
primarily facilitate the acquisition of Dewynters. All previous loans, also with
Allied Irish Bank, were paid off on the acquisition of Dewynters.
The Board believes that the resultant level of net gearing, at around 177% as at
28 February, will be acceptable given the cash generative nature of the
significantly enlarged Group. Interest cover, at 28 February was 6.88 times and
the Board envisages that the current Group borrowing requirement will steadily
reduce whilst retaining sufficient financial flexibility for the continued
investment in the Group.
Net debt of #11.14 million (2006: #3.80 million) at the period end was comprised
of
28 February 30 April 31st August
2007 2006 2006
#millions #millions #millions
Two year mezzanine bank loan (2.78) - -
Seven year bank loan (10.76) - -
Other bank loans - (1.41) (3.78)
Other group net debts (0.07) (0.36) (0.90)
Cash in hand and bank
overdrafts 2.47 0.29 0.88
--------------------------------------------
Group net debt (11.14) (1.48) (3.80)
--------------------------------------------
TAXATION
The tax credit of #123,000 includes a #50,000 rebate in the Wealth Division from
a previous tax year.
EARNINGS PER SHARE*
Earnings per share before exceptional items increased from a profit of 0.80p to
5.77p. This is directly due to the increased profitability of the enlarged Group
and the earnings enhancing means of financing the acquisitions. Basic earnings
per share on a like for like basis increased from a loss of (0.31)p to a profit
of 0.64p.
*Earnings per share for comparative periods has been restated to reflect the
share consolidation on 27 December 2006
SHAREHOLDERS' FUNDS
Shareholders funds increased from #5.09 million to #6.38 million over the last 6
months, resulting in a movement in basic net assets per share from 54.9p
(restated) to 53.6p.
ACQUISITIONS
On 30 November the Group acquired, Dewynters Limited, an established UK
Entertainment Management company for a total maximum consideration payable of
#15.5 million. Initial consideration of #9 million cash and 1 million shares was
paid. Dewynters Limited has two wholly owned subsidiaries; Dewynters Advertising
Inc. and Newman Displays Limited.
Richard Hughes
Group Managing Director
30 April 2007
BUSINESS REVIEWS
MARKETING
We are very pleased to announce that the newly created Marketing division,
formed through the acquisitions of Sponsorship Consulting and Dewynters and its
sister business Newman Displays, has been successfully integrated into the
Group. All the businesses are performing in line with expectations and are
already demonstrating the significant opportunities available through cross
referral of business within the Group.
We are also pleased to report the launch of First Rights, which will act on
behalf of sponsorship rights owners. This is a major area for potential growth
and one that will benefit greatly from being part of the enlarged and expanding
group.
Turnover
6 6 10
months ended months ended months ended
28 February 2007 30 April 2006 31 August 2006
#000's #000's #000's
UK 11,162 - 49
USA 1,394 - -
-----------------------------------------------
12,556 - 49
-----------------------------------------------
Operating Profit* 836 - -
-----------------------------------------------
*Prior to intergroup management fees
Overview
Dewynters has defined entertainment and theatre industry marketing in the UK
with iconic campaigns for productions ranging from Cats and The Phantom of the
Opera to Les Miserables and The Royal Opera House. Recent West End successes
include Equus, staring Daniel Radcliffe, The Lord of the Rings, which is due to
open in June and The Sound of Music. Its US merchandising operation currently
works on three Broadway shows, on others in Las Vegas and supporting touring
shows, with at least three new US show agreements soon to be announced.
Newman Displays, the leading front of house and fascia display manufacturing and
design company, produces displays for all major theatre productions, which have
recently included Spamalot and Mamma Mia as well as working with the leading
West End cinemas on films such as The Queen, Casino Royale, Dreamgirls and the
Spartan blockbuster 300.
Sponsorship Consulting is one of the UK's most respected sponsorship strategy
and corporate responsibility consultancies, advising clients such as Unilever,
Siemens, Corus, and Shell on their sponsorship activity and implementation,
particularly in the spectra of sports, arts, community, environment and
education. Siemens' sponsorship, in conjunction with The Science Museum,
recently won the Corporate Sponsorship category at the Hollis awards.
Opportunities
General trading continues to be in line with expectations, benefiting in
particular from a buoyant West End market. Real benefits however will be derived
from the significant opportunities available through cross referral of business
within the Group and by the expansion of these businesses into other areas,
where their core skills can be used to best effect. The launch of First Rights
will offer sponsors opportunities across the broad spectrum of sport,
entertainment and theatre, which would not otherwise be so readily available
outside of such a broad based group.
SPORT
Following last year's successful acquisition of our Scandinavian football
agency, First Artist Sport is now a truly pan-European business. We are based in
all the major football trading regions and work closely with our associates in
Europe, US and the rest of the World.
Turnover
6 months 6 months 10 months
ended ended ended
28 February 2007 30 April 2006 31 August 2006
#000's #000's #000's
UK 475 557 2,073
Europe 996 392 2,089
----------------------------------------------
1,471 949 4,162
----------------------------------------------
Operating (Loss) / Profit* (415) (303) 1,092
----------------------------------------------
*Prior to intergroup management fees
Overview
The January 2007 transfer window proved undoubtedly our most successful to date
with the division being involved in over 30 transfer deals with activity spread
evenly across our offices in London, Milan, Portugal and Copenhagen. This strong
performance included the UK window's largest football transfer of the window,
Ashley Young, who moved from Watford to Aston Villa for #9.65m and the
appointment of Alan Curbishley as West Ham manager and resulted in a 55%
increase in turnover over the corresponding trading period.
Due to the football trading windows, the division essentially only traded for
one complete month during the period, whilst operating expenses reflect the
enlarged operation including our Scandinavian agency acquired last summer.
Recruitment of new players together with communication and systems enhancements
between Group offices is all contributing to the strong development of the
division under the stewardship of Vincenzo Morabito in his new role as Head of
Football,. The contracted income pipeline is now growing rapidly and generating
increased forward visibility of earnings.
First Artist is a strong believer in advancement through regulation and is
working closely with the newly formed Agents Association and respective
authorities and associations to ensure that the correct framework is developed
to afford increased transparency and adherence to regulation within the market
whilst allowing freedom of trade.
Opportunities
The increased UK Premier League TV rights deal comes into effect this summer and
we are confident this will have a positive impact on the transfer market. In
addition, now that the Italian market has settled, following last year's Italian
match-fixing scandal, we also anticipate this region will recover. Our position
as a respected truly global agency and our strong relationships with all leading
clubs and associations puts us firmly at the heart of this strengthening market.
WEALTH
Optimal Wealth Management is an FSA regulated, independent financial services
business, offering in-depth, personally tailored consultancy for high-net worth
individuals with backgrounds in music, entertainment, media, sports and other
industries. The business recently established a joint venture with leading
financial services and audit group H.W.Fishers.
Turnover
6 months 6 months 10 months
ended ended ended
28 30 31
February 2007 April 2006 August 2006
#000's #000's #000's
New Investments 867 864 1,533
Renewals 297 196 340
-----------------------------------------
1,164 1,060 1,873
-----------------------------------------
Operating Profit* 289 452 801
-----------------------------------------
*Prior to intergroup management fees
Overview
Optimal continues to trade strongly and in line with expectations. Despite the
positive, but inflationary, effects of the 'A' Day pension rules amendments
increasing 2006 figures, the division's strong year on year profit performance
continued with turnover increasing 10% over the previous period's first six
months. In particular, the businesses strategy to invest in long-term
relationships has resulted in significant year on year growth in renewal/trail
income and bodes well for the future.
During the period the business has invested in the management team in order to
continue the expansion of the core business, whilst putting in place a team to
develop the H.W.Fisher joint venture, Fisher Family Office LLP. We expect
the fruits of this investment to come through over the next twelve months and
beyond.
The business continues to expand its client portfolio across the Group and along
with the Sport division is now working closely with the enlarged entertainment
business.
Opportunities
The continued growth of the Group, underpinned by our investment in the
management and support team will enable the business to further expand its
client base, whilst allowing us to seek further joint ventures and/or
acquisition opportunities.
EVENTS
The Finishing Touch is a full-service events management business, organising
conferences, Christmas and Summer parties, family fun and corporate days, team
building programmes and other specialist and bespoke events for the private,
corporate and public sectors.
Turnover
6 months 6 months 10 months
ended ended ended
28 30 31
February 2007 April 2006 August 2006
#000's #000's #000's
Corporate 1,878 1,210 1,700
Public Sector 1,024 1,152 1,393
-------------------------------------------
2,902 2,362 3,093
-------------------------------------------
Operating Profit* 339 176 218
-------------------------------------------
*Prior to intergroup management fees
Overview
The strong growth in the corporate sector was underlined by yet another record
Christmas period. There is a robust future bookings pipeline and cross referral
opportunities within the Group are developing with Events likely to be one of
the main beneficiaries from the enlarged group.
As previously reported the company has been involved in a tender process with
Public Sector bodies regarding an extension and expansion to their current
contract. This process has yet to be finalised, however, current projects are
continuing as planned.
The business has developed and installed new finance and operational management
software to significantly enhance its internal reporting systems and client
quality control procedures. We are also investing resources to expand our event
management and business development teams to manage the increasing number of
client projects being handled and new business generated.
Opportunities
The business is currently pursuing options to create joint ventures to
exclusively market and manage individual venues, which would allow Finishing
Touch to develop its own product tailored to specific client requirements,
helping to improve margins and further raise quality thresholds.
ENTERTAINMENT
First Artist Entertainment is a 'total management' celebrity and media agency
representing various well-known actors, actresses, sport and TV presenters and
other media personalities for TV, film and media, with a particularly strong
track record of talent development.
Turnover
6 months 6 months 10 months
ended ended ended
28 30 31
February 2006 April 2006 August 2006
#000's #000's #'000's
Entertainment 387 142 331
-------------------------------------------
Operating Profit* 73 63 132
-------------------------------------------
*Prior to intergroup management fees
Overview
Following the acquisition of NCI Management in July 2006 and subsequent
integration into First Artist's own entertainment business, we have renamed the
enlarged company First Artist Entertainment.
To name but a few clients, Ruud Gullit, Lisa Scott Lee, Suzanne Shaw, Gillian
McKeith, Amanda Lamb, Andy Townsend and Peter Schmiechel have had an active
first half of the year with a significant number of further opportunities due to
crystallise in the second half.
The corporate speaking division performed well with several events resulting
from the cross referral of business, particularly from the events division.
The financial performance of the business was slightly lower than anticipated,
although the second half of the year should see the business fall back in line
as several major contracts, delayed from the first half, are confirmed.
Opportunities
First Artist Entertainment continues to expand organically, with new clients
consistently being added to its roster. Opportunities to develop own format and
content programming are being developed which will lead to longer-term income
streams. The launch of First Rights will enable the Group to further develop
programming concepts.
Consolidated Profit and Loss Account
For the six months ended 28 February 2007
Notes Continuing
operations Acquisitions Total
6 months 6 months 6 months 6 months 10 months
ended ended ended ended ended
28 February 28 February 28 February 30 April 31 August
2007 2007 2007 2006 2006
(Unaudited) (Audited)
(Unaudited) (Unaudited) (Unaudited) (Restated) (Restated)
#000's #000's #000's #000's #000's
TURNOVER 6,259 12,221 18,480 4,513 9,508
Cost of sales (2,807) (8,545) (11,352) (2,039) (3,168)
--------------------------------------------------------------
GROSS PROFIT 3,452 3,676 7,128 2,474 6,340
Administrative expenses (3,428) (3,325) (6,753) (2,407) (4,890)
EBITA before
exceptional
administrative expenses 336 351 687 72 1,620
Exceptional
administrative expenses 2 (312) - (312) (5) (170)
--------------------------------------------------------------
OPERATING PROFIT 24 351 375 67 1,450
==========================
Interest receivable 66 19 21
Interest payable and
similar charges (488) (73) (304)
-------------------------------
(LOSS) / PROFIT ON
ORDINARY ACTIVITIES
BEFORE TAXATION (47) 13 1,167
Taxation 3 123 (41) (502)
-------------------------------
RETAINED PROFIT /
(LOSS) FOR THE PERIOD 76 (28) 665
===============================
EARNINGS / (LOSS) PER
SHARE 4
Basic earnings / (loss)
per share (pence) 0.64 (0.31) 7.18
===============================
Fully diluted earnings
/ (loss) per share
(pence) 0.52 (0.31) 5.74
===============================
Consolidated Balance Sheet
As at 28 February 2007
As at As at As at
28 February 30 April 31 August
Notes 2007 2006 2006
(Unaudited) (Unaudited) (Audited)
(Restated) (Restated)
#000's #000's #000's
FIXED ASSETS
Intangible assets 22,143 5,952 9,517
Tangible assets 2,012 739 835
Investments 123 100 118
---------------------------------------------
24,278 6,791 10,470
---------------------------------------------
CURRENT ASSETS
Stock 1,133 - -
Debtors 9,659 4,003 6,895
Cash at bank and in hand 2,471 691 1,108
---------------------------------------------
13,263 4,694 8,003
CREDITORS: Amounts falling
due within one year (11,293) (3,705) (7,709)
----------------------------------------------
NET CURRENT ASSETS 1,970 989 294
----------------------------------------------
TOTAL ASSETS LESS CURRENT
LIABILITIES 26,248 7,780 10,764
CREDITORS: Amounts falling
due after more than one year (11,984) (1,172) (2,252)
PROVISIONS for liabilities 5 (7,881) (3,252) (3,423)
---------------------------------------------
NET ASSETS 6,383 3,356 5,089
=============================================
SHARE CAPITAL AND RESERVES
Called up share capital 326 224 270
Share premium account 9,945 7,902 8,849
Capital redemption reserve 15 15 15
Shares to be issued - - 5
Share option reserve 175 87 133
Profit and loss account (4,078) (4,872) (4,183)
---------------------------------------------
TOTAL SHAREHOLDERS' FUNDS 9 6,383 3,356 5,089
=============================================
Consolidated Statement of Total Recognised Gains and Losses
For the six months ended 28 February 2007
6 months 6 months 10 months
ended ended ended
28 February 30 April 31 August
2007 2006 2006
(Unaudited) (Unaudited) (Audited)
(Restated) (Restated)
#000's #000's #000's
Profit / (loss) for the financial
period 76 (28) 665
Currency translation differences on
net foreign currency investments 28 10 6
------------------------------------------
Total recognised gains and losses
relating to the period 104 (18) 671
===========================
Prior year adjustment (note 11) (133)
---------
Total recognised gains and losses
since last financial statements (29)
=========
Consolidated Cash Flow Statement
For the six months ended 28 February 2007
Notes 6 months 6 months 10 months
ended ended ended to
28 February 30 April 31 August
2007 2006 2006
(Unaudited) (Unaudited) (Audited)
(Restated) (Restated)
#000's #000's #000's
Cash inflow / (outflow) from
operating activities 6 219 (340) 80
Returns on investments and
servicing of finance (195) (54) (102)
Taxation (247) (261) (450)
Capital expenditure and
financial investment (438) (42) (241)
Acquisitions and disposals 7 (8,298) (129) (2,749)
---------------------------------------------
Cash outflow before
financing (8,959) (826) (3,462)
---------------------------------------------
FINANCING:
Issue of share capital 1,000 14 1,013
Costs of issue of shares (263) - (120)
New bank loans 13,541 - 2,500
Repayment of bank loans (3,631) (131) (260)
Directors' loans (35) - 34
Other loans (50) (28) (85)
Capital element of finance
lease rental payments (9) (5) (11)
---------------------------------------------
10,553 (150) 3,071
---------------------------------------------
Increase / (decrease) in
cash in the period 1,594 (976) (391)
=============================================
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Increase / (decrease) in
cash in the period 1,594 (976) (391)
Cash flow from (increase) /
decrease debt financing (8,750) 164 (2,173)
New finance leases (1) (15) 34
Other non cash changes (178) - (623)
--------------------------------------------
(7,335) (827) (3,153)
Net debt at the beginning of
the period 8 (3,801) (648) (648)
--------------------------------------------
Net debt at the end of the
period 8 (11,136) (1,475) (3,801)
============================================
Notes to the Interim Accounts:
For the six months ended 28 February 2007
1. Basis of preparation
The financial information contained within this interim report does not
constitute statutory accounts within the meaning of Section 240 of the Companies
Act 1985. The interim financial information has been prepared on the basis of
the accounting policies set out in the Group's statutory accounts for the period
ended 31 August 2006.
The figures for the six months ended 28 February 2007 and 30 April 2006 are
unaudited. The figures for the period ended 31 August 2006 have been extracted
from the statutory accounts which have been filed with the Registrar of
Companies and did not contain a statement under Section 237 (2) or (3) of the
Companies Act 1985.
2. Exceptional administrative expenses
6 months 6 months 10 months
ended ended ended
28 February 30 April 31 August
2007 2006 2006
(Unaudited) (Unaudited) (Audited)
#000's #000's #000's
Acquisition related costs 297 - 141
Redundancies and other restructuring
costs 15 5 29
-------------------------------------------
312 5 170
===========================================
3. Tax (credit) / charge
The tax (credit) / charge for the period as set out below:
6 months 6 months 10 months
ended ended ended
28 February 30 April 31 August
2007 2006 2006
(Unaudited) (Unaudited) (Audited)
#000's #000's #000's
UK corporation tax charge 286 70 351
Adjustments in respect of prior
periods (50) - 175
Foreign taxes (142) 51 (24)
-----------------------------------------
Current tax charge for the period 94 121 502
Deferred Taxation:
Origination and reversal of timing
differences (217) (80) -
-----------------------------------------
Tax (credit) / charge on ordinary
activities (123) 41 502
=========================================
4. Earnings / (loss) per share
The calculations of earnings / (loss) per share are based on the following
profits / (losses) and numbers of shares.
6 months 6 months 10 months
ended ended ended
28 February 30 April 31 August
2007 2006 2006
(Unaudited) (Unaudited) (Audited)
(Restated) (Restated)
Weighted average number of 2.5 pence
ordinary shares in issue during the
period
For basic earnings / (loss) per
share 11,898,661 8,952,373 9,266,472
Exercise of share options 2,626,273 2,319,611 2,320,735
---------------------------------------------
For diluted earnings / (loss) per
share 14,524,934 11,271,984 11,587,207
#000's #000's #000's
Profit / (loss) on ordinary
activities after taxation 76 (28) 665
=============================================
5. Provisions for liabilities
The provisions for liabilities relate to deferred consideration.
Deferred consideration represents the estimated amounts payable, although the
final amounts payable are dependent upon the results of the acquired businesses.
28 February 30 April 31 August
2007 2006 2006
(Unaudited) (Unaudited) (Audited)
#000's #000's #000's
Deferred consideration due within
one year 3,037 1,231 1,903
Deferred consideration due after
one year 4,844 2,021 1,520
------------------------------------------
Total deferred consideration 7,881 3,252 3,423
==========================================
6. Reconciliation of operating profit to net operating cash flow
6 months 6 months 10 months
ended ended ended
28 February 30 April 31 August
2007 2006 2006
(Unaudited) (Unaudited) (Audited)
(Restated) (Restated)
#000's #000's #000's
Operating profit 375 67 1,450
Depreciation 166 40 73
Profit on disposal of fixed assets - (2) (9)
Share options charge 25 54 100
(Increase) in stock (232) - -
Decrease / (increase) in debtors 2,422 743 (1,389)
Decrease in creditors (2,565) (1,252) (151)
Foreign exchange 28 10 6
--------------------------------------------
Net cash inflow / (outflow) from
operating activities 219 (340) 80
============================================
7. Acquisitions and disposals
6 months 6 months 10 months
ended ended ended
28 February 30 April 31 August
2007 2006 2006
(Unaudited) (Unaudited) (Audited)
#000's #000's #000's
Consideration on acquisition of
subsidiary undertakings and other
investments (10,424) (107) (3,398)
Cash held by acquired subsidiary
undertakings 3,255 - 671
Payment of deferred consideration (1,129) (22) (22)
--------------------------------------------
Net cash outflow (8,298) (129) (2,749)
============================================
8. Analysis of changes in net debt
At 1 At 28
September Non-Cash February
2006 Cash flow changes 2007
#'000s #'000s #'000s #'000s
Cash at bank and in hand 1,108 1,363 - 2,471
Bank overdrafts (231) 231 - -
----------------------------------------------------
877 1,594 - 2,471
----------------------------------------------------
Finance leases (48) 9 (1) (40)
Debt due within one year (2,411) 992 (178) (1,597)
Debt due after more than
one year (2,219) (9,751) - (11,970)
----------------------------------------------------
(4,678) (8,750) (179) (13,607)
----------------------------------------------------
Total (3,801) (7,156) (179) (11,136)
====================================================
9. Reconciliation of movement in shareholders' funds
28 February 30 April 31 August
2007 2006 2006
(Unaudited) (Audited)
(Unaudited) (Restated) (Restated)
#000's #000's #000's
Profit / (loss) for the financial
period 76 (28) 665
Shares issued to acquire subsidiary
undertakings 411 - 1,112
Shares issued 1,000 14 15
Share options charge 42 54 100
Shares yet to be issued - - 5
Issue costs (263) - (120)
Foreign exchange adjustment 28 10 6
-----------------------------------------
Increase/(decrease) in
shareholders' funds 1,294 50 1,783
Opening shareholders' funds 5,089 3,306 3,306
-----------------------------------------
Closing shareholders' funds 6,383 3,356 5,089
=========================================
Shareholders' funds are entirely attributable to equity interests.
10. Net cash flow effect of acquisitions
The cash flow statement of the Group includes the following cash flow in respect
of subsidiary undertakings acquired during the period:
#000's
Net cash outflow from operating activities (1,214)
Returns on investments and servicing of finance 55
Taxation (7)
Capital expenditure and financial investment (327)
---------
Net cash outflow (1,493)
=========
11. Restatement of prior period figures
The prior period figures have been adjusted for share based payments in
accordance with Financial Reporting Standard 20 (FRS 20). The effects on the
retained profit and share option reserve are as follows:
30 April 2006 31 August
(Unaudited) 2006
(Audited)
#000's #000's
Retained profit as previously stated 26 765
Prior year adjustment (54) (100)
---------------------------
Retained profit as restated (28) 665
===========================
31 October 30 April 31 August
2005 2006 2006
(Audited) (Unaudited) (Audited)
#000's #000's #000's
Share option reserve as previously
stated - - -
Prior year adjustment 33 87 133
-----------------------------------------
Share option reserve as restated 33 87 133
=========================================
The impact on the Profit and Loss Reserves has been to reduce the balance by an
amount equal to the value of the Share Option Reserve.
12. Interim Report
Copies of this interim report are being sent to all shareholders and are
available to the public at the Company's registered office, First Artist House,
87 Wembley Hill Road, Wembley, Middlesex HA9 8BU.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR OKOKKOBKDFQB
Volution (LSE:FAN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Volution (LSE:FAN)
Historical Stock Chart
From Jul 2023 to Jul 2024
