Trading Statement and Suspension

 

TIDMHOL 
 
RNS Number : 4672U 
Hollywood Media Services plc 
25 June 2009 
 

25 June 2009 
Hollywood Media Services Plc 
("HMS" or the "Group") 
Trading Update and Suspension 
The Board of Hollywood Media Services Plc announces that the Group has suffered 
a downturn in trade in May and June 2009 with revenues significantly below those 
of last year (particularly in June 2009, which so far has seen year on year 
sales down over 50 per cent.).  As such the Group is expected to show a loss for 
the six months to 30 June 2009. 
As stated in the announcement of 28 April 2009, the combination of short lead 
times for contracts in this industry and the uncertainties inherent in the 
general economic situation makes it difficult to forecast. This has been 
evidenced in the unexpected downturn of the last two months. The Group has also 
experienced a fall in revenues from the contract for The Bill due to the new 
production schedule which came into effect in May 2009, although the Group has 
secured a new contract for The Bill, which will run through to 2010.   With 
regard to the recent acquisitions, the directors remain of the view that, as 
previously announced, The Casting Suite and Production Switchboard should break 
even during 2009. 
May is normally the start of the busy season for the Group and as such, the 
downturn in trade has adversely impacted the Group's available working capital, 
which was already at its low point after the traditionally lean fourth and first 
quarters. 
The Group has identified a number of measures to reduce costs by up to GBP0.5 
million (on an annualised basis), the majority of which are expected to comprise 
salary cuts by staff and directors, whilst maintaining the Group's ability to 
deliver services.  In addition, the Group is seeking to raise further funding, 
whether through further asset based finance and/or an issue of equity and/or 
other means.  Together, the cost reductions and fund raisings should help 
stabilise the Group's working capital position. 
The publication of the annual report and accounts for the year ended 31 December 
2008 has been delayed beyond 30 June pending satisfactory progress on the above. 
 The Company has therefore requested that trading in its shares be suspended 
until the report and accounts are published   Shareholders will be updated in 
due course. 
For further information please contact: 
+--------------------------+----------------------------+----------------+ 
| Martin Eberhardt         | Hollywood Media Services   | 020 7332 2200  | 
|                          | Plc                        |                | 
+--------------------------+----------------------------+----------------+ 
| Tony Rawlinson /         | Dowgate Capital Advisers   |  020 7492 4777 | 
| Antony Legge             | Limited                    |                | 
+--------------------------+----------------------------+----------------+ 
| Alex Davies              | Merchant Capital Limited   |  020 7332 2200 | 
+--------------------------+----------------------------+----------------+ 
www.hmservicesplc.com 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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