Trading Statement

 

TIDMHOL 
 
RNS Number : 9861D 
Hollywood Media Services plc 
11 December 2009 
 
11th December 2009 
Hollywood Media Services Plc 
("HMS" or the "Company") 
Update on Trading and proposed Delisting 
The Board of Hollywood Media Services Plc announces that since the suspension of 
trading in the Company's shares on 25 June 2009 it has been in negotiations with 
several parties including the Company's major shareholders and potential new 
equity and debt providers, to raise the necessary working capital for the Group 
and to fund the acquisitions where terms had already been negotiated. 
The Group has suffered significantly from the recession in 2009 although cost 
savings of more than GBP400,000 annually have contributed to an improving trend. 
The trading subsidiaries have delivered to the Group EBITDA of GBP90,000 for the 
4 months to October 2009 based on the unaudited management accounts. However, 
negotiations to raise the required working capital for the Group, in the current 
economic climate, were extremely difficult and have ultimately proved 
unsuccessful. The Company has also, crucially, been unable to obtain payment of 
the subscription monies due from the two investors who defaulted in the 
fundraising in May 2009. Whilst the Directors are continuing to pursue the 
defaulting investors for payment the lack of these subscription monies together 
with the inability to raise alternative equity and/or debt finance has placed 
significant pressure on the Group. 
In view of the above the Directors are now of the opinion that the Company is no 
longer able to fund the Group. The Board has taken advice from which it has 
concluded that the Company's interests will be best served refinancing the Group 
off AiM which will allow management to concentrate on developing the business 
without the ongoing cost burden of a listing which has failed to provide the 
anticipated benefits to the group. 
Shareholders will be aware from the announcement made on 13 November 2009 that 
the Company's nominated adviser resigned on that date, as they did from other 
advisorships, following their acquisition by a larger company. For the reasons 
above, it is not planned to appoint a new nominated advisor and accordingly, 
under the AIM Rules, the listing of the Company's shares on AIM will be 
cancelled with effect from 13th December 2009. 
The Directors believe the trading companies can trade profitably without the 
cost burden of the stock market and will continue the strategy of organic and 
acquisitive growth with internally generated or private equity support which the 
directors believe will be better suited to a small company than raising funds on 
the public markets in the current economic climate. There will be further 
updates for shareholders on this in the new year. 
The company intends to expand use of the company website (www.hmservicesplc.com) 
to allow shareholders and press regular updates and will, through newly planned 
shareholder consultation seek input as the strategy develops. It is intention of 
the directors to consider a listing on AIM or an alternative market in the 
future when the company reaches a size to make such a listing viable. 
 
 
For further information please contact: 
+--------------------------+----------------------------+----------------+ 
| Martin Eberhardt         | Hollywood Media Services   | 020 7332 2200  | 
|                          | Plc                        |                | 
+--------------------------+----------------------------+----------------+ 
|                          |                            |                | 
+--------------------------+----------------------------+----------------+ 
|                          |                            |                | 
+--------------------------+----------------------------+----------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 TSTZGMMZMMRGLZM