RNS Number:2352J
Paradigm Media Investments PLC
26 March 2003
London, 26 March 2003
Paradigm Media Investments PLC
INTERIM REPORT FOR THE SIX MONTHS TO 31 DECEMBER 2002 AND
PROPOSAL TO LIQUIDATE PARADIGM MEDIA INVESTMENTS PLC
During the six months to 31 December 2002, Paradigm Media Investments PLC
("Paradigm" or "the Company") earned interest of #397,094 (2001 - #498,130) and
made a profit before taxation of #44,339 (2001 - #173,851), notwithstanding both
the lower interest rate environment and the fact that most of the costs
associated with the share cancellation of a proportion of the Company's share
capital were incurred in the period.
As you will be aware, the share cancellation proposal offered shareholders the
opportunity to tender their shares for cancellation and to receive a payment of
5p per share. 62.5% of Paradigm's shares were tendered and the Board agreed to
accept these tenders for cancellation in full. The cancellation became effective
on 10 February 2003 and Paradigm therefore retains cash resources of #8.3
million in the bank, rather than #21.2 million as at the balance sheet date of
31 December 2002 reflected in this interim report.
In November 2002, when the Company announced the proposal to cancel part of its
share capital, it stated:
"The Board is currently considering investment opportunities which would not
utilise the full amount of Paradigm's current cash reserves. Should one or more
of these potential opportunities be considered appropriate for the Company,
shareholders will be notified in due course. If, however, the Board does not
consider that it has identified an appropriate use for all or a substantial
proportion of the Company's then cash resources by 31 March 2003, the Board
intends to reconsider at that time putting proposals to shareholders to initiate
a winding up of the Company."
Although numerous transactions were considered in the period, none was
sufficiently attractive to recommend to shareholders. In recent weeks, world
stock market indices have reached lows not seen since the mid-1990s, while the
uncertainties of war also prevail. Against this background, Paradigm is seeking
transactions in a market populated with numerous quoted cash 'shells'. With the
Company's now reduced capital, the costs of running Paradigm in an efficient
fashion could potentially also take it into a loss making position, without any
certainty of a transaction taking place in the foreseeable future.
Given these factors, the Board has decided to recommend to shareholders a
voluntary winding up of the Company which should ensure that shareholders
receive the balance of the Company's capital plus an amount equivalent to
retained earnings after adjustments for remaining operating and liquidation
costs and tax incurred.
A circular will be sent to shareholders shortly convening an Extraordinary
General Meeting to consider the resolution to liquidate the Company and to
appoint a liquidator.
In conclusion, Paradigm's existence since February 2000 has coincided with three
very difficult years for the financial markets during which many large
companies, as well as early stage ones, became insolvent and valuations
generally plummeted. Large gains made in the previous period from investment in
internet and technology businesses were lost. Paradigm had been set up to take
advantage of these opportunities and it is therefore a matter of some
consolation that we are able to return all our capital to our shareholders
intact against a background that should have suggested a very different outcome.
Daniel Levy
Chairman
Unaudited profit and loss account
For the 6 months ended 31 December 2002
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
31 December 31 December 2001 30 June
2002
2002
Notes # # #
Administrative expenses (352,755) (324,250) (618,760)
____________ ____________ ____________
Operating loss (352,755) (324,250) (618,760)
Interest receivable and similar income 397,094 498,130 914,536
Interest payable and similar charges - (29) (29)
____________ ____________ ____________
Profit on ordinary activities before taxation 44,339 173,851 295,747
Tax on profit on ordinary activities 2 (15,297) (38,057) (59,663)
____________ ____________ ____________
Profit on ordinary activities after taxation 29,042 135,794 236,084
____________ ____________ ____________
Profit for the financial period 29,042 135,794 236,084
____________ ____________ ____________
Earnings per share
- basic 4 0.01p 0.03p 0.06p
- diluted 4 0.01p 0.02p 0.04p
All results derive from continuing activities.
There were no recognised gains or losses other than those shown above.
Unaudited balance sheet
As at 31 December 2002
Unaudited Unaudited Audited
31 December 2002 31 December 2001 30 June
2002
Notes # # #
Current assets
Debtors 5 87,673 108,475 130,413
Cash at bank and in hand 21,264,431 21,163,206 21,217,676
__________ __________ __________
21,352,104 21,271,681 21,348,089
Creditors: amounts falling due within one year 6 (106,771) (155,680) (131,798)
__________ __________ __________
Total assets less current liabilities 21,245,333 21,116,001 21,216,291
__________ __________ __________
Capital and reserves
Called-up share capital 20,750,000 20,750,000 20,750,000
Profit and loss account 495,333 366,001 466,291
__________ __________ __________
Shareholders' funds - equity interests 21,245,333 21,116,001 21,216,291
__________ __________ __________
Unaudited cash flow statement
For the 6 months ended 31 December 2002
Unaudited Unaudited Audited
6 months ended 6 months Year
31 December ended ended
2002
31 December 2001 30 June
2002
Notes # # #
Net cash outflow from operating activities 7 (350,446) (363,435) (661,833)
__________ __________ __________
Returns on investments and servicing of finance
Interest received 397,094 498,130 914,536
Interest paid - (29) (29)
__________ __________ __________
Net cash inflow for returns on investments and
servicing of finance 397,094 498,101 914,507
Taxation - (109,532) (173,084)
__________ __________ __________
Net cash inflow before management of liquid resources
and financing 46,648 25,134 79,590
__________ __________ __________
Net cash inflow from financing - - -
__________ __________ __________
Increase in cash in the period 8, 9 46,648 25,134 79,590
__________ __________ __________
Notes to the interim report
1 Accounting policies
Basis of accounting
The interim financial information has been prepared on the basis of the annual
accounts for the period ending 30 June 2002.
The interim statements were approved by a duly appointed and authorised
committee of the Board of Directors on 26 March 2003 and are unaudited.
The figures for the 12 months ended 30 June 2002 have been extracted from the
statutory accounts which have been filed with the Registrar of Companies. The
independent auditors' report on those accounts was unqualified and did not
contain any statement under section 237 of the Companies Act 1985.
2 Taxation
The taxation charge for the six months to 31 December 2002 is based on the
estimated effective rate for the period to 30 June 2003.
3 Dividend
No interim dividend will be paid for the period to 31 December 2002.
4 Earnings per share
Earnings per share are calculated on the profit for the period based on the
weighted average number of shares in issue. These are as follows:
Unaudited Unaudited Audited
6 months ended 6 months ended Year
31 December 31 December ended
2002 2001
30 June
2002
# # #
Basic weighted average number of shares 415,000,000 415,000,000 415,000,000
__________ __________ __________
Diluted weighted average number of shares 535,000,000 535,000,000 535,000,000
__________ __________ __________
5 Debtors
Unaudited Unaudited Audited
31 December 31 December 30 June
2002 2001
2002
# # #
Prepayments and accrued income 87,673 108,475 130,413
__________ __________ __________
6 Creditors: amounts falling due within one year
Unaudited Unaudited Audited
31 December 31 December 30 June
2002 2001
2002
# # #
Bank overdraft 121 - 14
Trade creditors 734 24,956 34,573
Taxation and social security 3,022 3,038 3,605
Corporation tax 74,960 101,609 59,663
Other creditors 12,500 - 12,500
Accruals and deferred income 15,434 26,077 21,443
__________ __________ __________
106,771 155,680 131,798
__________ __________ __________
7 Reconciliation of operating loss to net cash outflow from operating
activities
Unaudited Unaudited Audited
6 months ended 6 months ended Year
31 December 31 December ended
2002 2001
30 June
2002
# # #
Operating loss (352,755) (324,250) (618,760)
Decrease/(increase) in debtors 42,740 (47,198) (69,136)
(Decrease)/increase in creditors within the period (40,431) 8,013 26,063
__________ __________ __________
Net cash outflow from operating activities (350,446) (363,435) (661,833)
__________ __________ __________
8 Analysis of net funds
1 July 31 December
2002 Cash flow 2002
# # #
Net cash:
Cash at bank and in hand 21,217,676 46,755 21,264,431
Overdraft (14) (107) (121)
__________ __________ __________
Net funds 21,217,662 46,648 21,264,310
__________ __________ __________
7 Reconciliation of net cash flow to movements in net funds
Unaudited Unaudited Audited
6 months ended 6 months ended Year
31 December 31 December ended
2002 2001
30 June
2002
# # #
Increase in cash in the period 46,648 25,134 79,590
__________ __________ __________
Movement in net funds in the period 46,648 25,134 79,590
Opening net funds 21,217,662 21,138,072 21,138,072
__________ __________ __________
Closing net funds 21,264,310 21,163,206 21,217,662
__________ __________ __________
8 Subsequent events
On 5 February 2003 an order was made approving the cancellation of 259,370,151
shares in the capital of the Company in exchange for the payment to the holders
of those shares of a sum of 5p per share. The Court Order approving the capital
reduction was registered by Companies House on 8 February 2003 and a certificate
issued on 10 February 2003. Consequently, the Company now has 155,629,849
ordinary shares in issue. Sums due to the holders of shares totalling
#12,968,508 were paid on 14 February 2003.
Enquiries:
Paradigm Media Investments PLC:
Daniel Levy, Chairman Tel: 020 8365 5321
Bertrand Lipworth, Executive Director Tel: 020 7235 1005
This information is provided by RNS
The company news service from the London Stock Exchange
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