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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Hollywood Media | LSE:HOL | London | Ordinary Share | GB00B1WN7R92 | ORD 0.125P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.375 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number : 7038X
Hollywood Media Services plc
27 June 2008
Hollywood Media Services Plc
Final Results for the year to 31 December 2007
Hollywood Media Services Plc ("Hollywood" or the "Company"), the television and film facilities business, announces its final results
for the year to 31 December 2007.
Highlights
* Group sales down 2.2% with facilities sales up 30% and catering sales down 31%
* Gross profit up 76% to £367,246 (2006: £208,728) reflecting move to higher margin business
* Pre tax loss of £261,000 after float and group reorganisation costs of £128,000 (2006: pre tax profit of £44,000)
* Admission to AIM on 31 August 2007
* Placing to raise £473,000, net of expenses
* £0.2 million invested in new facilities equipment with further investment in 2008
* Year end cash and cash equivalents of £276,000 (2006: £4,000)
Commenting on the announcement, Martin Eberhardt, the Chief Executive stated:
"Although challenging, 2007 was a year in which we laid the foundations for growth. Since the year end, the Company has continued to
invest in facilities equipment and we now have 5 fleets in use compared to just three at the time of the AIM admission. In February we
acquired the contract for The Bill which has significantly added to our turnover and the appointment of a dedicated events manager has
resulted in new business being won with pop festivals. After a period of lower than expected activity in the first four months of 2008, the
sales, there has been a marked improvement in current trading and the sales pipeline. The Board remains confident of an improved performance
in the second half."
Martin Eberhardt, CEO Tel: 0207 332 2200
Hollywood Media Services
Nominated Adviser to Hollywood Tel: 020 7492 4777
Dowgate Capital Advisers
Limited
Tony Rawlinson / Antony Legge
Broker to Hollywood Tel: 020 7747 7400
IAF Securities Limited
David Coffman
CHAIRMAN'S STATEMENT
I am pleased to present our full results for 2007, our first since the Company's admission to AIM. The year was one of mixed fortunes
with growth in facilities sales more than offset by decline in catering with the consequence that overall sales for the year declined 2% to
£1,019,000 (2006: £1,117,000). As we stated at the time of the admission, the catering services market has proved challenging and the result
was a 31% decline in sales to £419,000 (2006: £604,000) for this part of the business. In contrast, facilities sales grew 31% to £672,000
(2006: £513,000), in line with management expectations. Gross profit increased by 76% to £367,000 (2006 £209,000) reflecting the change in
the sales mix to the higher margin facilities services business.
Higher trading expenses are due mainly to an increase in staffing as the Company laid the foundations for future growth. The Company
also incurred head office costs of £95,000 (2006: £nil) most of which relates to the costs of being a quoted company. As a result, the
Company registered a loss of £91,000, before the costs of the re-organisation and admission which totalled £128,000.
Higher net interest charges at £42,000 (2006: £19,000) reflected a full years leasing charge in 2007 on facilities taken up during
2006.
As a result of the above, a loss before tax of £261,000 was incurred compared to profits of £65,000 in 2006. Loss per share was 1.0p.
In addition to the re-organisation and admission costs of £128,000 in the Income Statement, further costs of £377,000 were incurred in
the admission of the Company which were written off to Share Premium account.
The Company raised £473,000 net of expenses in a placing at the time of the admission. Of this, £176,000 was invested in the facilities
and catering fleet and £88,000 was used to repay certain finance leases. Cash at bank was £276,000 (2006: £4,000) and the net cash/(debt)
position was £66,000 (2006: £(299,000)). Net assets at 31 December 2007 were £382,000 (2006: £45,000).
The first quarter is traditionally a slow period, however 2008 saw an even slower start than expected due to the after effects of the
writers' strike in the USA and postponements of new production commissions by both the BBC and ITV. The sales trend has recently much
improved with sharply higher sales during May and June. The development of our facilities and catering fleet continued with expenditure of
£176,000 during 2007 and further investment in the first half of 2008. We now have the capacity to service 5 productions simultaneously
compared to three in mid 2007. As anticipated the Company reached the lowest point in its cash position during recent weeks since when the
position has improved in line with the uplift in sales.
In February 2008 we also acquired the rights to provide catering services to the television production "The Bill" which in 2007
delivered turnover and attributable gross profit of £1.07 million and £182,000 respectively.
In our Admission document, we stated that we would recruit a dedicated events manager. This appointment was made in 2007 and in 2008 the
Company has been appointed caterers to the crews and casts of major pop festivals including Gatecrasher, Rockness, Wakestock, Latitude,
Belladrum, Bloodstock, Creamfield, Reading and Leeds.
The board are encouraged by the current trading trends in facilities which, combined with the contribution from The Bill and the pop
festivals, is expected to yield an improved result in the second half.
With regard to acquisitive growth, the board commenced discussions with a number of potential opportunities post the year end and these
remain ongoing. Whilst there can be no certainty that any discussions will be conclude successfully, the Board continue to believe that
there are opportunities to grow the business by acquisition.
As set out in our Admission document, the Company also remains committed to appointing a full time Finance Director as soon as the
business justifies such an appointment and will continue to keep under review the need for an additional non executive director.
I would like to thank our board and senior management team and all the staff for their dedication to the building of this business.
James Holmes
Chairman
Consolidated Income Statement
Year ended 31 December
2007 2006
Notes £ £
Revenue 1,090,775 1,117,132
Cost of sales (723,529) (908,404)
Gross profit 367,246 208,728
Administrative expenses:
Trading expenses (362,839) (146,149)
Trading profit 4,407 62,579
Head office costs (95,393) -
Float and reorganisation costs (128,050) -
Operating (Loss)/profit (219,036) 62,579
Financial income 2,329 193
Financial expense (44,736) (18,937)
(Loss)/profit before taxation (261,443) 43,835
Taxation - 20,928
(Loss)/profit for the financial year (261,443) 64,763
Attributable to equity holders of the (261,443) 64,763
parent
(Loss)/earnings per share 2
Basic (loss)/earnings per share (0.01) 3,238.00
Fully diluted (0.01) -
All amounts relate to continuing operations.
Consolidated and Company Statement of Recognised Income and Expenditure
31 December
2007 2007 2006
Group Company Group and Company
Notes £ £ £
(Loss)/profit for the 5 (261,443) (128,913) 64,763
financial year
Costs of floatation written 5 (377,156) (377,156) -
off to share premium account
Total (losses)/gains recognised since last annual (638,599) (506,069) 64,763
report
Total (losses)/gains 5 (638,599) (506,069) 64,763
attributable to equity holders
of the parent
Consolidated and Company Balance Sheet
31 December
2007 2007 2006
Group Company Group and Company
Non current assets Notes £ £ £
Property, plant and equipment 529,422 45,842 441,133
Investment in subsidiary - 725 -
Deferred tax asset - - 7,682
529,422 46,567 448,815
Current assets
Inventories 15,406 - 40,325
Trade and other receivables 192,391 441,762 290,970
Cash and cash equivalents 275,909 257,263 4,011
483,706 699,025 335,306
Total assets 1,013,128 745,592 784,121
Current liabilities
Trade and other payables (421,981) (193,412) (432,341)
Financial liabilities (171,149) (37,911) (186,617)
(borrowings)
Current tax liabilities - - (3,128)
(593,130) (231,323) (622,086)
Net current (109,424) 467,702 (286,780)
(liabilities)/assets
Non current liabilities
Borrowings (38,259) - (116,677)
Net assets 381,739 514,269 45,358
Equity
Called up share capital 4,5 85,417 85,417 20
Shares to be issued 5 70,000 70,000 -
Share premium account 5 437,427 437,427 -
Profit and loss reserve 5 (216,105) (83,575) 45,338
Share option reserve 5 5,000 5,000 -
Total Equity 381,739 514,269 45,358
Consolidated and Company Cash Flow Statement
Year ended 31 December
2007 2007 2006
Group Company Group and Company
£ £ £
Net cash from operating 60,712 (163,462) 332,941
activities
Cash flows from investing
activities
Interest received 2,329 2,329 193
Proceeds of disposal of - 45,357 -
business
Proceeds on disposal of - - 6,000
property, plant and equipment
Purchases of property, plant (176,367) (81,241) (467,029)
and equipment
Net cash used in investing (174,038) (33,555) (460,836)
activities
Cash flows from financing
activities
Costs of flotation (377,156) (377,156) -
New finance lease liabilities - - 260,200
Repayment of obligations under (87,574) (22,528) (73,169)
finance lease
Issue of new shares 850,000 850,000 116,216
Net cash from financing 385,270 450,316 303,247
activities
Net increase in cash and cash
equivalents
271,944 253,299 175,352
Cash and cash equivalents
At beginning of year 3,964 3,964 (171,388)
Net increase in cash and cash 271,945 253,299 175,352
equivalents
At end of year 275,909 257,263 3,964
Bank overdraft - - (47)
Cash and cash equivalents 275,909 257,263 4,011
275,909 257,263 3,964
CONSOLIDATED AND COMPANY CASH FLOWS FROM OPERATING ACTIVITIES
2007 2007 2006
Group Company Group and Company
£ £ £
(Loss)/profit from operations (219,036) (120,976) 62,579
Adjustments for:
Movement in share option 5,000 5,000 -
reserve
Depreciation of property, 88,077 3,717 37,917
plant and equipment
Loss on disposal of property, - - 1,000
plant and equipment
Operating cash flows before (125,959) (112,259) 101,496
movements in working capital
(Decrease)/increase in 24,919 24,500 (40,325)
inventories
(Decrease)/increase in 106,261 (107,254) (61,848)
receivables
(Decrease)/increase in 100,227 55,192 352,555
payables
Cash generated by operations 105,448 (139,821) 351,878
Income taxes paid - (3,129) -
Interest paid (44,736) (20,512) (18,937)
Net cash flow from operating 60,712 (163,462) 332,941
activities
Notes
1. Basis of preparation
The financial information set out in this announcement does not constitute statutory accounts for the purposes of Section 240 Companies
Act 1985. The financial information for the year ended 31 December 2006 has been extracted from the statutory accounts of Hollywood Media
Services plc (formerly Hollywood Catering Services limited) for that year, which have been delivered to the Registrar of Companies. The
auditors' report on those accounts was unqualified and did not contain any statement under sections 237(2) or (3) of the Companies Act 1985.
This preliminary announcement was approved by the board of directors on 25 June 2008. The financial statements in respect of the year end 31
December 2007 will be delivered to the Registrar of Companies in due course and will also be disclosed on the Companies website. An
unmodified audit opinion has been issued.
The Group's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by
the European Union as they apply to the financial statements of the Group for the year ended 31 December 2007.
For all periods up to and including the year ended 31 December 2006 the Group prepared its financial statements in accordance with UK
generally accepted accounting principles ("UK GAAP"). This is the first year in which the Group has prepared its group financial statements
under IFRS and the comparatives have been restated from UK GAAP accordingly.
2. (Loss)/earnings per share
Basic earnings per share is calculated by dividing the loss attributable to shareholders by the weighted average number of ordinary
shares in issue during the year.
2007 2006
£ £
Loss/profit attributable to (261,443) 64,763
shareholders
Weighted average number of 25,049,348 20
ordinary shares in issue for
calculating basic earnings per
share
Increase in weighted average 15,980
number of ordinary shares in
issue at a nominal value of
0.125p following sub division
of shares
Weighted average number of warrants and options 6,592,692
Weighted average number of preference shares 6,703,297
Weighted average number of shares for calculating 38,345,337 16,000
dilutive earnings per share
Basic (loss)/earnings per (0.010) 3,238.00
share
Earnings per share of 0.125p 4.05
(note)
Fully diluted (0.007)
Note: The EPS calculation for 2006 has been recalculated to show the effect of the share split which took place on 17 July 2007 as if
that split had occurred on 1 January 2006.
For the diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all
dilutive potential ordinary shares.
3. Dividend
The directors do not recommend the payment of a dividend
4. Called up Share Capital
Authorised share capital Issued share capital
Number £ Number £
At 1 January 2007 1,000 1,000 20 20
Increase in authorised share 249,000 249,000
capital by the creation of
249,000 new ordinary shares of
£1 each
Allottment and issue of 49,980 49,980 49,980
of new ordinary shares of £1
each
Sub-division of the authorised 199,750,000 39,950,000
issued and unissued ordinary
shares of £1 of the Company
was into ordinary shares of
£0.00125 each
200,000,000 250,000 40,000,000 50,000
Conversion of 20,000,000 20,000,000 25,000 20,000,000 25,000
ordinary shares into
20,000,000 Non Voting
Preference Shares
Sub-division of the Non Voting 180,000,000 225,000 20,000,000 25,000
Preference Shares
200,000,000 250,000 40,000,000 50,000
Issue of shares on admission to AIM on 31 August
2007;
Ordinary shares 28,333,333 35,417
Non Voting Preference Shares - -
28,333,333 35,417
At 31 December 2007
Ordinary shares 200,000,000 25,000 48,333,333 60,417
Non Voting Preference Shares 200,000,000 225,000 20,000,000 25,000
400,000,000 250,000 68,333,333 85,417
Shares to be issued 2,333,333 2,917
The following options and warrants also existed as at 31 December 2007:
Employee options
The Company granted 8,333,333 options to employees in the year. The Options are exercisable into Ordinary Shares at the Placing Price,
at anytime from the later of: (a) the 3rd anniversary of the date of Admission; and (b) the date when the average earnings per share (as
defined in the option deed), on a fully diluted basis, for the 3 years ending 31 December 2009, has increased on average by at least 10 per
cent. per annum compared to the earnings per share of the Company based on the Company's audited accounts for 2006 and calculated on the
assumption that there were 20,000,000 shares in issue at the end of 2006. Save for certain limited circumstances, the Options are only
exercisable whilst the holder of the Option is a director or employee of the group. The Options lapse and cease to be exercisable on the
10th anniversary of the date of Admission. The period in which the shares may be exercised is September 2010 to September 2017.
Founder warrants
The Company granted 5,000,000 warrants to employees in the year. Each Founder Warrant entitles the holder to purchase one Ordinary Share at
the Placing Price on or before the 10th anniversary of the date of admission, 31 August 2007, after which time the Founder Warrants will be
void and of no value.
CFA warrants
The Company has issued 670,000 warrants to Dowgate Capital Advisers Limited, formerly City Financial Associates Limited. Each warrant
entitles the holder to purchase one Ordinary Share at the price of 0.125p on or before the 10th anniversary of the date of admission to AIM,
after which time the warrants will be void and of no value.
Placing warrants
The Company issued 5,666,666 placing warrants pursuant to its admission to AIM. Each warrant entitles the holder to purchase one
Ordinary Share at the price of 3p on or before the 3rd anniversary of the date of admission to AIM, after which time the warrants will be
void and of no value.
5. Consolidated Statement of Changes in Equity
Equity share capital Share premium Retained earnings Share option reserve Shares to be issued
Total
£ £ £ £ £
£
Balance at 1 January 2006 20 - (19,425) -
(19,405)
Profit for the year 64,763 -
64,763
Balance at 31 December 2006 20 - 45,338 - -
45,358
and 1 January 2007
Increase in share capital 85,397 814,583
899,980
Loss for the year (261,443)
(261,443)
Floatation costs written (377,156)
(377,156)
off against Share Premium
Shares to be issued 70,000
70,000
Gain on Share options granted 5,000
5,000
Balance at 31 December 2007 85,417 437,427 (216,105) 5,000 70,000
381,739
6. Post balance sheet events
On 7th February 2008, the group acquired the benefit of a contract for the provision of catering services in respect of the Bill
television programme (the "Bill Contract"). This contract was acquired from Wood Hall Catering and Events Limited ("Wood Hall"), a
subsidiary of The C4E Group plc ("C4E"), together with certain assets to enable the contract to be serviced including stock, support
vehicles and a number of employees. The maximum consideration payable under the agreement is £575,200, of which £94,500 was paid in cash on
completion and the balance as deferred consideration to be satisfied by the issue to Wood Hall of 6,856,666 non voting convertible
preference shares (Preference Shares) issued at 3p per share. The Preference Shares were or are due to be issued in equal instalments on 30
April 2008, 31 July 2008 and 30 October 2008 provided that the Bill Contract has not been terminated on or before the due date for payment
of the relevant instalment.
If the Bill Contract is renewed in accordance with its terms for up to a further 2 years from December 2008, further consideration
totalling up to £275,000 will be immediately payable to Wood Hall, satisfied by the issue of up to an additional 9,166,667 Preference Shares
at 3p per share.
On 14 February 2008, a wholly owned subsidiary of the Company, registered in the Isle of Man, Hollywood Media Services (Isle of Man)
Limited was incorporated in order to serve film and television productions based on the Isle of Man.
On 17 April 2008 the Company issued and allotted, credited as fully paid, 2,333,333 new ordinary shares of 0.125p each in the Company,
representing 4.61 per cent. of the Company's issued ordinary share capital, (the 'New Ordinary Shares') at a price of 3 pence per share to
Grundberg Mocatta Rakison LLP in settlement of professional advisers' fees incurred at the time of the Company's admission to AIM in August
2007.
7. Explanation of Transition to IFRS
This is the first year that the Company has presented its financial information under IFRS. The following disclosures are required in
the year of transition. The last financial statements under UK GAAP were for the year ended 31 December 2006 and the date of transition to
IFRSs was therefore 1 January 2006.
Significant changes to the Income statement and the Balance Sheet for 2006
There are no adjustments arising from the transition to IFRS, and therefore there is no impact on reported income statement or
balances.
Significant changes to the Cash flow statement for 2006
The Company was exempt from the requirement to prepare a cash flow statement under UK GAAP on the basis that it was a small company.
There are no such exemptions under IFRS. There are no adjustments arising from the transition to IFRS, and therefore there is no impact on
reported cash flows.
IAS 7 'Cash flow statement' extends the definition of cash to 'cash and cash equivalents' which includes movements on short-term
deposits. The Company has not held any short-term deposits.
8. Availability of report and accounts
The group's full report and accounts will be dispatched to shareholders on 27 June 2008. Copies will also be available on the group's
website, www.hmservicesplc.com and on request from the group's head office at 7th Floor, Aldermary House, 10-15 Queen Street, London, EC4N
1TX.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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