RNS Number:9257A
First Artist Corporation PLC
16 July 2004
First Artist Corporation plc
Interim report
Six months ended 30 April 2004
Company Registration No: 2725009
First Artist Corporation Plc ("FAC")
Interim Report for the Six months ended 30 April 2004
Chairman's Statement
In our last report for the period to 31 October 2003, issued in March, we stated
that we were encouraged by the improvements in the UK market although the
continental European market-place remained unpredictable.
On the back of a profitable January this year, our confidence in the UK market
was not misplaced; and we now forecast an upturn in this summer's trading window
with an improved contribution from the European markets. As per our original
strategy, we continue to maintain a presence in emerging football markets such
as the US and the Far East with minimal drain on the group's central resources.
Following the Strategic Review conducted in the 4th quarter of 2003, efficient
management of cash and costs remain the company's priority with direct
expenditure wholly focussed on developing the core business.
To that end, the First Artist Snooker Academy was closed in May. The anticipated
growth and support from snooker authorities has not materialised as forecast and
the Board has therefore transferred the operation of the business to its
management. First Artist will retain a minority interest in the new business and
a continuing involvement in snooker player management.
Like for like continuing sales have increased 37% to #1.19 million compared to
the corresponding period last year, with annualised overheads falling 37%. After
exceptional charges this has resulted in a like for like operating loss for the
period of #0.34 million compared to a loss of #1.75 million in the corresponding
period last year. Group loss for the period was #0.39 million after deducting
#0.15 million loss incurred by the Snooker Academy (Period to 30 April 2003:
Loss #2.17 million).
Group and financial review
Sales
The primary revenue for the group continues to be derived from the transferring
of professional football players between clubs. The Group generated sales of
#1.23 million in the period. Sales of #1.19 million were generated from
continuing activities, up 37% from #0.87 million last year. There were 21 deals
in the period versus 17 deals in the corresponding period last year.
Operating profit before exceptional costs
The operating loss before exceptional costs of #0.03 million, was #0.46 million
(Period to 30 April 2003:loss of #1.67 million), including #0.15 million loss
from the Snooker Academy and is stated after deducting fees payable to
third-parties of #0.28 million (corresponding period to 30 April 2003: #0.31
million), and operating expenses of #1.42 million (corresponding period to 30
April 2003: #2.23 million). The operating expenses include a release of bad debt
provisions of #0.03 million due to improved debtor collection.
Liquidity and capital resources
At 30 April 2004 the net borrowing of the Group was #0.73 million (including
#0.48 million of bank debt), up from a net borrowing balance of #0.40 million as
at 31 October 2003. #0.04 million was paid in reducing finance lease balances
and there was #0.44 million operating cash outflow, derived from the group
operating losses before amortisation and depreciation of #0.45 million and an
increase in non-cash working capital of #0.01 million. Net current assets
include #0.22 million of receivables net of provisions and trade creditors.
Outlook and current operations
In recent months, trading conditions in the UK and European football market have
stabilised somewhat and, as evidenced during the first few weeks of the summer
trading window, the Board remains confident as regards its prospective 2004
turnover. That said, there remains a natural level of uncertainty in the
marketplace and visibility of earnings continues to be unpredictable.
Following the completion of the Strategic Review, as announced in October 2003,
the Board remains confident in the long-term viability of the football sector as
the significant revenue engine for the group and has agreed that the best route
forward to maximise shareholder value is to;
*concentrate on its core football activities; continue to take steps to
improve FAC's cash position and balance sheet;
* identify suitable opportunities for expansion into 'non-footballing'
areas through acquisition, or other arrangements.
* develop a broader scope of services for the Group's client and contact
base.
On 1 July 2004, 5,997,014 ordinary shares held by V.S.R.Fioranelli were bought
back by the Company and cancelled. The issued share capital of the Company now
consists of 47,906,523 ordinary shares of 0.25p each.
On behalf of the Board, I would like to thank our previous Chairman, Brain
Baldock for the support, guidance and experience he brought to FAC in his time
with the Group and wish him well in his retirement. The Board also welcomes
Richard Hughes to FAC as Group Financial Director.
Chairman
Alex Johnston
16th July 2004
Contact: Jon Smith or Richard Hughes at First Artist on 020 8900 1818
Consolidated Profit and Loss Account
For the six months ended 30 April 2004
Notes Six months Six months Period from
ended ended 1 July 2002 to
30 April 2004 30 April 2003 October 2003
(Unaudited) (Unaudited) (Unaudited)
#000's #000's #000's
Sales Continuing 1,185 866 4,191
Discontinued 48 - 38
---------- ---------- -----------
1,233 866 4,229
Cost of sales (279) (309) (1,147)
---------- ---------- -----------
Gross profit 954 557 3,082
Administrative
expenses (1,416) (2,229) (5,622)
Exceptional
administrative
expenses (28) (77) (480)
---------- ---------- -----------
Operating loss before goodwill
---------- ---------- -----------
Continuing (337) (1,749) (2,955)
Discontinued (153) - (65)
---------- ---------- -----------
(490) (1,749) (3,020)
Administrative
expenses -
goodwill
impairment and
amortisation - (768) (11,820)
---------- ---------- -----------
Group
operating loss (490) (2,517) (14,840)
Share of
operating loss
of associates - (29) (97)
---------- ---------- -----------
Total
operating loss (490) (2,546) (14,937)
Loss on
disposal of
investment - - (26)
---------- ---------- -----------
(490) (2,546) (14,963)
Investment
income - 9 11
Interest
payable (17) (25) (54)
---------- ---------- -----------
Loss on
ordinary
activities
before
taxation (507) (2,562) (15,006)
Taxation 2 120 395 414
---------- ---------- -----------
Loss on
ordinary
activities
after taxation (387) (2,167) (14,592)
Dividends - - -
---------- ---------- -----------
Retained loss
for the period (387) (2,167) (14,592)
========== ========== ===========
LOSS PER SHARE 3 (0.72) p (4.02) p (27.08) p
Basic loss per share
Fully diluted
loss per share 3 (0.72) p (4.02) p (27.08) p
Basic loss per
share 3 (0.67) p (2.45) p (4.21) p
(before goodwill and exceptional)
Diluted loss per share
(before goodwill and exceptional) 3 (0.67) p (2.45) p (4.21) p
Consolidated Balance Sheet
As at 30 April 2004
Notes As at As at As at
30 April 2004 30 April 2003 31 October 2003
(Unaudited) (Unaudited) (Audited)
#000's #000's #000's
FIXED ASSETS
Intangible assets - 10,536 -
Tangible assets 775 850 811
Investments - 26 -
---------- ---------- -----------
775 11,412 811
---------- ---------- -----------
CURRENT ASSETS
Debtors 3,287 4,812 3,504
Cash at bank and in hand 143 - 156
---------- ---------- -----------
3,430 4,812 3,660
CREDITORS: Amounts
falling due within one
year (2,960) (3,577) (2,908)
---------- ---------- -----------
NET CURRENT ASSETS 470 1,235 752
---------- ---------- -----------
TOTAL ASSETS LESS
CURRENT 1,245 12,647 1,563
LIABILITIES
CREDITORS: Amounts
falling due after more
than one year (28) (176) (87)
---------- ---------- -----------
NET ASSETS 1,217 12,471 1,476
========== ========== ===========
CAPITAL AND RESERVES
Called up share capital 5 135 135 135
Share premium account 5 6,217 6,217 6,217
Merger reserve 5 - 8,283 -
Profit and loss account 5 (5,135) (2,164) (4,876)
---------- ---------- -----------
1,217 12,471 1,476
========== ========== ===========
Consolidated Cash Flow Statement
For the Six Months ended 30 April 2004
Notes Six months Six months Period from
ended ended 1 July 2002 to
30 April 2004 30 April 2003 31 October 2003
(Unaudited) (Unaudited) (Audited)
#000's #000's #000's
Cash outflow from
operating
activities 4 (441) (177) (623)
Returns on
investments and
servicing of
finance (17) (16) (43)
Taxation 136 - (97)
Capital
expenditure and
financial
investment (3) 43 43
Acquisitions and
disposals - (141) (141)
---------- ---------- -----------
Cash outflow
before financing (325) (291) (861)
---------- ---------- -----------
FINANCING:
Payments of
deferred cash
consideration - (503) (545)
Capital element
of
finance lease (35) (23) (55)
rental payments ---------- ---------- -----------
(35) (526) (600)
---------- ---------- -----------
Decrease in cash
in the period (360) (817) (1,461)
Cash used to
decrease debt
financing 35 526 600
New finance - - (104)
leases
Deferred
consideration on
acquisition of
subsidiaries - 639 1,627
---------- ---------- -----------
(325) 348 662
Net debt at the
beginning of the
period (403) (1,517) (1,065)
---------- ---------- -----------
Net debt at the
end of the period (728) (1,169) (403)
========== ========== ===========
Statement of Total Recognised Gains and Losses
For the Six months ended 30 April 2004
Six Months Ended Six Months Ended Period from 1July 2002 to
30 April 2004 30 April 2003 31 October 2003
(Unaudited) (Unaudited) (Audited)
#000's #000's #000's
Loss for the
financial period (387) (2,167) (14,592)
Currency translation
differences on
net foreign currency
investments 128 217 59
---------- ---------- -----------
Total recognised
gains and losses (259) (1,950) (14,533)
========== ========== ===========
Notes to the Interim Accounts:
For the six months ended 30 April 2004
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 October 2003.
The figures for the six months ended 30 April 2004 and 30 April 2003 are
unaudited. The figures for the period from 1 July 2002 to 31 October 2003 have
been extracted from the statutory accounts which have been filed with the
Registrar of Companies and did not contain a statement required under Section
237 (2) or (3) of the Companies Act 1985. In their report on the accounts the
auditors drew readers attention to the disclosures made by the Directors
regarding the Company's ability to continue as a going concern but their opinion
was not qualified in that respect.
In view of the continuing losses during the period to 30 April 2004, the
Directors have prepared and considered detailed trading and cash flow forecasts
for the next twelve months. Costs continue to be closely monitored and
controlled following a major restructuring programme carried out in the previous
period and the company remains in regular contact with its bankers and other
major creditors. Ongoing negotiations with overdue debtors to agree acceptable
payment terms also remain a priority.
The Directors cannot predict the future trading and funding requirements of the
Group with certainty, but believe that the above actions together with the
continued support of the Company's bankers will provide sufficient finance to
enable the Group to meet its liabilities as they fall due. The Directors
therefore believe that it is appropriate for the financial statements for the
period to 30 April 2004 to be prepared on a going concern basis.
2. Tax credit
The tax credit is based on the estimated effective rate for the period as a
whole.
Six months Six Months Period from 1 July
Ended Ended 2002 to
30 April 2004 30 April 2003 31 October 2003
(Unaudited) (Unaudited) (Audited)
#000's #000's #000's
UK corporation
tax credit/(charge) - 121 66
Adjustments in
respect of
prior periods 9 - (8)
Foreign taxes (29) 201 294
---------- ---------- -----------
Current tax
credit/(charge)
for the
period (20) 322 352
---------- ---------- -----------
Deferred
Taxation: 140 73 62
Origination and reversal of
timing differences ---------- ---------- -----------
Tax credit/(charge)
on ordinary activities 120 395 414
========== ========== ===========
3. Loss per share
The calculations of loss per share are based on the following profits and
numbers of shares:
The adjusted loss per share is based on loss after tax before goodwill
impairment, amortisation and exceptional items.
Six months Six Months Period from
Ended Ended 1 July to
30 April 2004 30 April 2003 31 October
(Unaudited) (Unaudited) 2003(Audited)
Number Number Number
Weighted average number of 0.25 pence
ordinary shares in issue during the
period
For basic earnings per
share 53,903,537 53,903,537 53,893,666
Exercise of share options - - -
---------- ---------- -----------
For diluted earnings per
share 53,903,537 53,903,537 53,893,666
Loss for the financial period #'000s #'000s #'000s
Loss for adjusted earnings
per share (359) (1,322) (2,292)
Adjustment for goodwill
impairment and
amortisation - (768) (11,820)
Adjustment for exceptional
costs (28) (77) (480)
---------- ---------- -----------
Loss for earnings per
share (387) (2,167) (14,592)
========== ========== ===========
4. Reconciliation of operating loss to net operating cash flow
Six months Six Months Period from
ended ended 1 July to
30 April 2004 30 April 2003 31 October 2003
(Unaudited) (Unaudited) (Audited)
#000's #000's #000's
Operating loss (490) (2,546) (14,937)
Depreciation 39 64 166
Impairment and
amortisation of goodwill - 768 11,820
Loss on disposal of fixed
assets 1 19 41
Share of operating loss
of - 29 97
associates
Decrease in debtors 230 1,295 2,232
(Decrease) in creditors (349) (23) (101)
Exchange 128 217 59
----------- ---------- -----------
Net cash outflow from
operating activities (441) (177) (623)
=========== ========== ===========
5. Analysis of changes in net debt
At 1 November Cash Non-Cash At 30 April
2003 flow changes 2004
#'000s #'000s #'000s #'000s
Cash at bank
and in hand 156 (13) - 143
Bank
overdrafts (137) (347) - (484)
---------- -------- -------- ---------
19 (360) - (341)
---------- -------- -------- ---------
Finance (115) 35 - (80)
Leases
Debt due within
one year (265) - (42) (307)
Debt due after
more than one (42) - 42 -
year ---------- -------- -------- ---------
(422) 35 - (387)
---------- -------- -------- ---------
Total (403) (325) - (728)
========== ======== ======== =========
6. Reconciliation of movement in shareholders' funds
Six Months ended Six Months ended Period from
30 April 2004 30 April 2003 1 July to
(Unaudited) (Unaudited) 31 October 2003
#000's #000's (Audited)
#000's
Loss for the financial
period (387) (2,167) (14,592)
Foreign exchange
adjustment 128 217 59
Cancellation of Deferred
Share Consideration on
acquisition of
unincorporated business - (50) (50)
----------- ---------- -----------
Decrease in
shareholders' (259) (2,000) (14,583)
funds
Opening shareholders'
funds 1,476 14,471 16,059
----------- ---------- -----------
Closing shareholders'
funds 1,217 12,471 1,476
=========== ========== ===========
Shareholders' funds are entirely attributable to equity interests.
7. 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.
INDEPENDENT REVIEW REPORT TO FIRST ARTIST CORPORATION PLC
Introduction
We have been instructed by the company to review the financial information set
out on pages 3 to 9 and we have read the other information contained in the
interim report and considered whether it contains any apparent mistatements or
material inconsistencies with the financial information.
This report, including the conclusion, has been prepared for and only for the
company for the purpose of their interim report and for no other purpose or to
any other person to whom this report is shown or into whose hands it may come
save where expressly agreed by our prior consent in writing.
Directors' Responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. It is best
practice that the accounting policies and presentation applied to the interim
figures should be consistent with those applied in preparing the preceding
annual accounts except where any changes, and the reasons for them, are
disclosed.
Review Work Performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board as if that Bulletin applied. A review
consists principally of making enquiries of management and applying analytical
procedures to the financial information and underlying financial data and based
thereon, assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on the
financial information.
Review Conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 April 2004.
BAKER TILLY
Chartered Accountants
2 Bloomsbury Street
London WC1B 3ST
16th July 2004
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QKAKBDBKDCOD
Volution (LSE:FAN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Volution (LSE:FAN)
Historical Stock Chart
From Jul 2023 to Jul 2024
