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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Volution Group Plc | LSE:FAN | London | Ordinary Share | GB00BN3ZZ526 | ORD GBP0.01 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -1.00 | -0.20% | 502.00 | 500.00 | 502.00 | 503.00 | 498.50 | 501.00 | 41,266 | 09:42:22 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Equip Rental & Leasing, Nec | 328.01M | 37.37M | 0.1889 | 26.47 | 994.9M |
Hot Features
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TIDMFAN
RNS Number : 5068R
First Artist Corporation PLC
24 August 2010
FIRST ARTIST CORPORATION PLC
("First Artist") or (the "Group")
Unaudited interim results for the six months ended 31 May 2010
First Artist Corporation plc (AIM:FAN), the media, events and entertainment
management group, today announces its unaudited interim results for the six
months ended 31 May 2010.
CHAIRMAN'S STATEMENT
I hereby present our results for the 6 months ended 31 May 2010. Shareholders
should note that these results are reported alongside the restated prior year
results for the first 6 months ended 28 February 2009 which was the period of
the published interim results for the first 6 months of the extended 15 month
financial period ended 30 November 2009.
In line with the strategic restructuring of Group operations, which is currently
underway, and consistent with the treatment contained in the 2009 Annual Report
& Accounts, the results for the group activities are reported across continuing
operations - incorporating the Media and Events Management divisions; and
discontinued operations - comprising Entertainment, Wealth Management and Sport.
+-----------------------+----------------------+--+----------------------+---+-----------------------+
| Summary of results by Division - | | | |
| Continuing Operations | | | |
+-------------------------------------------------+----------------------+---+-----------------------+
| | Unaudited | | (Restated) | | Audited |
| | 6 months | | Unaudited | | 15 |
| | ended 31 | | 6 months | | months |
| | May 2010 | | ended 28 | | ended 30 |
| | | | February | | November |
| | | | 2009 | | 2009 |
+-----------------------+----------------------+--+----------------------+---+-----------------------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+-----------------------+----------------------+--+----------------------+---+-----------------------+
| Revenue by Division | | | | | |
+-----------------------+----------------------+--+----------------------+---+-----------------------+
| Media | 35,259 | | 32,804 | | 87,537 |
+-----------------------+----------------------+--+----------------------+---+-----------------------+
| Events | 1,257 | | 2,344 | | 3,098 |
+-----------------------+----------------------+--+----------------------+---+-----------------------+
| Total Revenue | 36,516 | | 35,148 | | 90,635 |
+-----------------------+----------------------+--+----------------------+---+-----------------------+
| | | | | | |
+-----------------------+----------------------+--+----------------------+---+-----------------------+
| Adjusted EBITDA* | | | | | |
+-----------------------+----------------------+--+----------------------+---+-----------------------+
| Media | 1,272 | | 1,758 | | 5,749 |
+-----------------------+----------------------+--+----------------------+---+-----------------------+
| Events | (148) | | 339 | | (56) |
+-----------------------+----------------------+--+----------------------+---+-----------------------+
| Group costs | (840) | | (987) | | (2,186) |
+-----------------------+----------------------+--+----------------------+---+-----------------------+
| Total Adjusted | 284 | | 1,110 | | 3,507 |
| EBITDA* | | | | | |
+-----------------------+----------------------+--+----------------------+---+-----------------------+
The continuing challenges of the global recession, have shown a continued impact
on the Media and Events businesses, which together with Group costs generated
EBITDA of GBP0.284m (restated 6 months ended 28 February 2009 GBP1.110m) from
revenues of GBP36.516m (restated 6 months ended 28 February 2009 GBP35.148m).
*Adjusted Earnings before Interest, taxation, depreciation and amortisation
("EBITDA") is stated before exceptional items.
Media
The Media division, which comprises the Dewynters Group, SpotCo and First
Rights, accounted for 96.5% of revenue in the period.
Dewynters Ltd continues to enjoy a solid client base. This list includes The
Lion King, Mamma Mia (London), We Will Rock You, Wicked, and the recently opened
Love Never Dies. Several new shows are planned to open in spring 2011 which
will be supported by Dewynters. The pre-opening campaigns for these shows are
planned to commence in the autumn of 2010.
During the period Newman Displays (a wholly owned subsidiary of Dewynters)
continued to provide support for many high profile events including Cannes Film
Festival, Sex and the City, Hair and Prince of Persia. Unfortunately the
cancellation of several shows which was beyond the control of the Group had an
adverse impact.
Dewynters Advertising Inc. in the US has also faced a downturn in trade arising
largely due to the recession and touring productions showing in smaller venues.
SpotCo achieved revenue in line with the same period last year. The mix of
revenues has changed due to a shift away from traditional media and towards
interactive, as the number of clients in the interactive stream doubled from the
prior year.
First Rights has found it difficult to gain traction in competitive markets and
as has not performed as expected. This business is subject to restructuring and
will be integrated into other divisions.
Events
Results of the events management business, The Finishing Touch, continue to
reflect the impact of the economic turmoil faced in its market. As a
consequence of the ongoing difficulties in this market a review of the estimates
and forecasts underpinning the value of goodwill of the Finishing Touch was
carried out. An impairment charge totalling GBP1m has been charged in the 6
months ended 31 May 2010.
Activity within the event management business is starting to show signs of
recovery. Throughout the interim period, The Finishing Touch has been awarded
several contracts with new and existing clients across key areas of the
business; a substantial level of activity has been contracted, and other
substantial existing and new clients of The Finishing Touch are forecast to grow
steadily.
Discontinuing Operations
The Sport Division is made up of First Artist Sport Limited, First Artist
Scandinavia A/S and Promosport Srl. A restructuring programme within the
football division has been ongoing for the past 18 months.
Promosport is being held in run-off whilst all outstanding debtors and accrued
income are recouped.
First Artist Scandinavia has been sold to the local Scandinavian management
team; effective from 1 July 2010.
Optimal Wealth Management and First Artist Management were disposed of in
February 2010.
First Artist Sport Limited will continue to trade within the Group, although it
is the Directors' intention to divest this business as they believe it is not a
natural fit with its media-focused strategy for the future.
Risks associated with the Group
In the Annual Report and Accounts for the 15 months ended 30 November 2009, the
Group reported that as a result of the disposal of Optimal Wealth Management,
the sale of the business of First Artist Management and the possible disposal of
the Sports Division, that the existing terms of the bank borrowings were being
renegotiated with the Group's lender, Allied Irish Bank (GB). Due to
challenging economic conditions and the subsequent effect on the Group's
financial performance, the Group is in breach of its banking covenants. As a
consequence, the Group's total bank borrowings have been classified as a current
liability.
The Group requires a recalibration of its existing bank covenants along with a
restructuring of the Group debt. The Group remains in close negotiations with
its bankers and enjoys its continued support. The mezzanine loan repayment
which was due on 31 August 2010 has been extended to 28 October 2010. An
impairment charge totalling GBP1m has been charged against the Events Business,
The Finish Touch. A write-down in respect of amounts deemed unrecoverable of
GBP0.5m was made during the period to the Receivables balances within the Sport
Division. The effect of this impairment charge and write-down has been to show
net liabilities on the Group's Balance Sheet for the 6 months ended 31 May 2010.
The Board continues to review the Group's ability to continue as a going concern
in light of the difficult trading conditions and the ongoing negotiations with
the Group's bankers. The directors are exploring numerous avenues to improve
the position of the Group, including the debt restructuring programme mentioned
above, closely monitoring divisional performances and completing the previously
announced intentions to divest the Sport Division. The directors believe that
it is appropriate to continue to adopt the going concern basis of accounting.
The ongoing restructuring within the Group is focused on bringing back
profitability. It is expected that the concentration on profitability will
bring with it added and positive cashflow.
The Group successfully negotiated a discounted early settlement of the loan
notes relating to the deferred consideration payable to the vendors of
Dewynters. The settlement amount was GBP1.5 million, which represents a
GBP0.499m discount. As this transaction occurred in June 2010, the effects are
not reflected in these financial statements, but will be included in the results
for the year to 30 November 2010.
People
There have been some significant changes in the senior staff throughout the
course of the interim period of 2010. In response to William Fitzpatrick's
resignation as Group Finance Director Shirley Stapleton has been appointed as
the interim Financial Director Designate for the foreseeable future. Julianne
Coutts, who had been a member of the Board since March 2009, has resigned her
position.
The corporate team continues to work conscientiously towards evaluating and
improving the Group, which, given the current climate in the economy has proven
difficult to sustain any level of growth. The directors of the subsidiary
companies have worked industriously towards building future success for the
Group through sensible management and shared vision.
Last but not least, thank you to all those directors and employees who have
striven diligently in the face of adverse market conditions, and for their
commitment to the Group objectives.
+------------------------------------------------+---------------------+
| First Artist Corporation plc | tel: 020 7993 |
| Jon Smith, Chief Executive | 0000 |
| | www.firstartist.com |
| | |
+------------------------------------------------+---------------------+
| Seymour Pierce, Nominated Adviser and Broker | tel: 020 7107 |
| Stewart Dickson/Tom Sheldon | 8000 |
| | |
+------------------------------------------------+---------------------+
INDEPENDENT REVIEW REPORT TO FIRST ARTIST CORPORATION PLC
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the interim financial report for the six months ended 31 May 2010
which comprises the Condensed Consolidated Statement of Comprehensive Income,
the Condensed Consolidated Balance Sheet, the Condensed Consolidated Statement
of Changes in Equity, the Condensed Consolidated Statement of Cash Flows and the
related notes. We have read the other information contained in the interim
financial report and considered whether it contains any apparent misstatements
or material inconsistencies with the information in the condensed set of
financial statements.
This report is made solely to the Company in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 "'Review of Interim
Financial Information performed by the Independent Auditor of the Entity" issued
by the Auditing Practices Board. Our review work has been undertaken so that we
might state to the Company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the Company, for our review work, for this report, or for the conclusions we
have formed.
Directors' Responsibilities
The interim financial report, is the responsibility of, and has been approved by
the directors. The directors are responsible for preparing and presenting the
interim financial report in accordance with the AIM Rules of the London Stock
Exchange and the requirements of the UK Listing Authority ('UKLA').
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with International Financial Reporting Standards and
International Financial Reporting Interpretations Committee pronouncements as
adopted by the European Union. The condensed set of financial statements
included in this interim financial report has been prepared in accordance with
International Accounting Standard 34, "Interim Financial Reporting" as adopted
by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the interim financial report based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the interim financial report
for the six months ended 31 May 2010 is not prepared, in all material respects,
in accordance with International Accounting Standard 34 "Interim Financial
Reporting" as adopted by the European Union, the AIM Rules of the London Stock
Exchange and the requirements of the UK Listing Authority ('UKLA').
Emphasis of matter paragraph
Without qualifying our review conclusion above, we draw attention to note 1 of
this interim announcement which indicates that the company was in breach of
certain of its banking covenants at the period end. The Group remains in
negotiations with its bankers and the Group will need to renegotiate the
existing bank covenants along with restructuring of the Group debt or find
alternative funding arrangements. The company is confident these negotiations
will be successfully resolved. These conditions indicate the existence of a
material uncertainty which may cast significant doubt about the Company's
ability to continue as a going concern
Baker Tilly UK Audit LLP
Chartered Accountants
2 Bloomsbury Street
London
WC1B 3ST
24 August 2010
Unaudited Condensed Consolidated Statement of Comprehensive Income
For the six months ended 31 May 2010
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | 6 | | Restated | | 15 |
| | | months | | 6 months | | months |
| | | ended | | ended | | ended |
| | | 31 May | | 28 | | 30 |
| | | 2010 | | February | | November |
| | | (Unaudited) | | 2009 | | 2009 |
| | | GBP000's | | (Unaudited) | | (Audited) |
| | | | | GBP000's | | GBP000's |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Continuing Operations | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Revenue | | 36,516 | | 35,148 | | 90,635 |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Cost of sales | | (28,032) | | (26,239) | | (67,964) |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Gross profit | | 8,484 | | 8,909 | | 22,671 |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Administrative expenses | | (10,095) | | (8,346) | | (21,623) |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| EBITDA before exceptional | | | | | | |
| administrative expenses | | 284 | | 1,110 | | 3,507 |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Exceptional administrative | | (168) | | 249 | | (493) |
| (expenses)/income | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Depreciation | | (299) | | (383) | | (831) |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Impairment of goodwill | 6 | (1,000) | | (100) | | (150) |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Amortisation of intangibles | | (428) | | (313) | | (985) |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Operating (loss) / profit | | (1,611) | | 563 | | 1,048 |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Finance income | | 1 | | 134 | | 61 |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Finance costs | 3 | (1,703) | | (2,339) | | (2,500) |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
| Loss on ordinary activities | | (3,313) | | (1,642) | | (1,391) |
| before taxation | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Taxation | 4 | 157 | | (6) | | (225) |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
| Loss for the period from | | (3,156) | | (1,648) | | (1,616) |
| continuing operations | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Discontinued operations | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Loss for the period from | 9 | (1,952) | | (906) | | (4,701) |
| discontinued operations | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
| Loss for the period | | (5,108) | | (2,554) | | (6,317) |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Other comprehensive income: | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Currency translation | | 671 | | 1,208 | | (57) |
| differences | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Deferred taxation on share | | - | | - | | (63) |
| options | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Other comprehensive income | | 671 | | 1,208 | | (120) |
| (net of tax) for the period | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | (4,437) | | (1,346) | | (6,437) |
| Total comprehensive income for | | | | | | |
| the period attributable to | | | | | | |
| owners of the parent | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| Basic and diluted loss per | 5 | | | | | |
| share (pence) | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| From continuing operations | | (10.54) | | (6.52) | | (8.43) |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| From discontinued operations | | (6.52) | | (11.85) | | (24.52) |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | (17.06) | | (18.37) | | (32.95) |
| Total operations | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-----------+
Unaudited Condensed Consolidated Balance Sheet
As at 31 May 2010
+----------------------------------+----+--+-------------+----------+-------------+----------+-----------+
| | | 6 months | | Restated | | 15 |
| | | ended | | 6 months | | months |
| | | 31 May | | ended | | ended |
| | | 2010 | | 28 | | 30 |
| | | (Unaudited) | | February | | November |
| | | GBP000's | | 2009 | | 2009 |
| | | | | (Unaudited) | | (Audited) |
| | | | | GBP000's | | GBP000's |
+----------------------------------+-------+-------------+----------+-------------+----------+-----------+
| Non-current assets | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Goodwill |6 | 15,980 | | 26,319 | | 18,621 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Intangible assets | | 6,495 | | 7,609 | | 6,549 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Property, plant and equipment | | 1,730 | | 2,385 | | 1,822 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Available-for-sale investments | | 58 | | 45 | | 58 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | 24,263 | | 36,358 | | 27,050 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Current assets | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Inventories | | 900 | | 308 | | 1,122 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Trade and other receivables | | 8,862 | | 12,399 | | 9,695 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Cash and cash equivalents | | 2,773 | | 2,558 | | 4,116 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | 12,535 | | 15,265 | | 14,933 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Assets of disposal group classified |9 | 2,807 | | - | | 5,707 |
| as held-for-sale | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | 15,342 | | 15,265 | | 20,640 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Total assets | | 39,605 | | 51,623 | | 47,690 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Current liabilities | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Trade and other payables | | (11,280) | | (11,081) | | (13,544) |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Current taxation liabilities | | (358) | | (526) | | (439) |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Borrowings |8 | (20,402) | | (2,520) | | (5,827) |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Provisions |7 | (2,830) | | (4,070) | | (4,042) |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | (34,870) | | (18,197) | | (23,852) |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Liabilities of disposal group |9 | (1,407) | | - | | (2,001) |
| classified as held-for-sale | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | (36,277) | | (18,197) | | (25,853) |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Non-current liabilities | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Deferred taxation | | (2,186) | | (2,825) | | (2,178) |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Borrowings | | - | | (16,704) | | (11,684) |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Provisions |7 | (2,482) | | (7,248) | | (4,895) |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | (4,668) | | (26,777) | | (18,757) |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Total liabilities | | (40,945) | | (44,974) | | (44,610) |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Net (liabilities)/assets | | (1,340) | | 6,649 | | 3,080 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Equity | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Share capital | | 749 | | 349 | | 748 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Share premium | | 7,774 | | 6,609 | | 7,768 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Capital redemption reserve | | 15 | | 15 | | 15 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Share option reserve | | 256 | | 366 | | 246 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Retained earnings | | (10,588) | | (1,738) | | (5,480) |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Own shares held | | (259) | | (259) | | (259) |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Foreign exchange reserve | | 713 | | 1,307 | | 42 |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| Total equity attributable to owners | | (1,340) | | 6,649 | | 3,080 |
| of the parent | | | | | | |
+---------------------------------------+--+-------------+----------+-------------+----------+-----------+
| | | | | | | | |
+----------------------------------+----+--+-------------+----------+-------------+----------+-----------+
Unaudited Condensed Consolidated Statement of Changes in Equity
For the six months ended 31 May 2010
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | Capital | Share | | Own | Foreign | |
| | | Share | Share | redemption | | Retained | shares | exchange | Total |
| ATTRIBUTABLE TO OWNERS OF THE | | capital | premium | reserve | option | earnings | held | reserve | Equity |
| PARENT | | GBP000 | GBP000 | GBP000 | | GBP000 | GBP000 | GBP000 | GBP000 |
| | | | | | reserve | | | | |
| | | | | | GBP000 | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| At 1 September 2008 | | 347 | 6,598 | 15 | 285 | 816 | (259) | 99 | 7,901 |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Other comprehensive income: | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Currency translation differences | | - | - | - | - | - | - | 1,208 | 1,208 |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Total other comprehensive income | | - | - | - | - | - | - | 1,208 | 1,208 |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Loss for the period (as restated) | | - | - | - | - | (2,554) | - | - | (2,554) |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Total comprehensive income for | | - | - | - | - | (2,554) | - | 1,208 | (1,346) |
| the period | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Transactions with owners | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Shares issued to vendors as | | 2 | 11 | - | - | - | - | - | 13 |
| deferred consideration | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Share-based payment charge | | - | - | - | 81 | - | - | - | 81 |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Total transactions with owners | | 2 | 11 | - | 81 | - | - | - | 94 |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| At 28 February 2009 | | 349 | 6,609 | 15 | 366 | (1,738) | (259) | 1,307 | 6,649 |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| At 1 September 2008 | | 347 | 6,598 | 15 | 285 | 816 | (259) | 99 | 7,901 |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Other comprehensive income: | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Deferred taxation on share | | - | - | - | - | (63) | - | - | (63) |
| options | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Currency translation differences | | - | - | - | - | - | - | (57) | (57) |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Total other comprehensive income | | - | - | - | - | (63) | - | (57) | (120) |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Loss for the period | | - | - | - | - | (6,317) | - | - | (6,317) |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Total comprehensive income for | | - | - | - | - | (6,380) | - | (57) | (6,437) |
| the period | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Transactions with owners | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Transfer from share option | | - | - | - | (84) | 84 | - | - | - |
| reserve to retained earnings | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Proceeds of share issues (net of | | 343 | 990 | - | - | - | - | - | 1,333 |
| costs) | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Shares issued to vendors as | | 27 | 86 | - | - | - | - | - | 113 |
| deferred consideration | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Shares issued to redeem loan | | 31 | 94 | - | - | - | - | - | 125 |
| notes | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Share-based payment charge | | - | - | - | 45 | - | - | - | 45 |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Total transactions with owners | | 401 | 1,170 | - | (39) | 84 | - | - | 1,616 |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| At 30 November 2009 | | 748 | 7,768 | 15 | 246 | (5,480) | (259) | 42 | 3,080 |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
Unaudited Condensed Consolidated Changes in Equity
For the six months ended 31 May 2010
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | Capital | Share | | Own | Foreign | |
| | | Share | Share | redemption | | Retained | shares | exchange | Total |
| ATTRIBUTABLE TO OWNERS OF THE | | capital | premium | reserve | option | earnings | held | reserve | Equity |
| PARENT | | GBP000 | GBP000 | GBP000 | | GBP000 | GBP000 | GBP000 | GBP000 |
| | | | | | reserve | | | | |
| | | | | | GBP000 | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| At 1 December 2009 | | 748 | 7,768 | 15 | 246 | (5,480) | (259) | 42 | 3,080 |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Other comprehensive income: | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Currency translation differences | | - | - | - | - | - | - | 671 | 671 |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Total other comprehensive income | | - | - | - | - | - | - | 671 | 671 |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Loss for the period | | - | - | - | - | (5,108) | - | - | (5,108) |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Total comprehensive income for | | - | - | - | - | (5,108) | - | 671 | (4,437) |
| the period | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Transactions with owners | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Shares issued to vendors as | | 1 | 6 | - | - | - | - | - | 7 |
| deferred consideration | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Share-based payment charge | | - | - | - | 10 | - | - | - | 10 |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| Transactions with owners | | 1 | 6 | - | 10 | - | - | - | 17 |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| At 31 May 2010 | | 749 | 7,774 | 15 | 256 | (10,588) | (259) | 713 | (1,340) |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
| | | | | | | | | | |
+-----------------------------------+----------+---------+---------+------------+---------+----------+--------+----------+---------+
Unaudited Condensed Consolidated Statement Of Cash Flows
For the six months ended 31 May 2010
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | 6 months | | 6 | | 15 |
| | | ended | | months | | months |
| | | 31 May | | ended | | ended |
| | | 2010 | | 28 | | 30 |
| | | (Unaudited) | | February | | November |
| | | GBP000's | | 2009 | | 2009 |
| | | | | (Unaudited) | | (Audited) |
| | | | | GBP000's | | GBP000's |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| | 10 | | | | | |
| Cash (used in)/generated | | | | 2,338 | | 7,013 |
| from operating activities | | (2,218) | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Income taxes paid | | (287) | | (772) | | (800) |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Net cash (outflow)/inflow | | (2,505) | | 1,566 | | 6,213 |
| from operating activities | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Investing activities | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Finance income | | 1 | | 137 | | 61 |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Purchase of property, plant | | (108) | | (262) | | (331) |
| and equipment | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Acquisition of subsidiaries | | - | | (1,158) | | (3,418) |
| (net of cash) | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Proceeds from disposal of | | 1,311 | | - | | - |
| subsidiary (net) | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Payment of deferred | | (92) | | (1,566) | | (2,849) |
| consideration | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Net cash used in investing | | 1,112 | | (2,849) | | (6,537) |
| activities | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Financing activities | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Repayments of borrowings | | (563) | | (13,177) | | (523) |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Repayments of obligations | | - | | (7) | | (7) |
| under finance leases | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| New bank loans raised | | - | | 17,546 | | 4,076 |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Repayment of loan notes | | - | | - | | (594) |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Net cash proceeds from | | - | | - | | 1,333 |
| issue of shares | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Interest paid | | (368) | | (1,090) | | (1,243) |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Net cash (used)/generated | | (931) | | 3,272 | | 3,042 |
| by financing activities | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Net (decrease) / increase | | (2,324) | | 1,989 | | 2,718 |
| in cash and cash | | | | | | |
| equivalents | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Cash and cash equivalents | | 3,177 | | 464 | | 464 |
| at the beginning of the | | | | | | |
| period | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | 114 | | 105 | | (5) |
| Effect of foreign exchange | | | | | | |
| rate changes | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Cash and cash equivalents | | 967 | | 2,558 | | 3,177 |
| at end of the period | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Cash and cash equivalents | | 2,773 | | 2,558 | | 4,116 |
| (excluding overdrafts) | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| Overdraft | | (1,806) | | - | | (939) |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
| | | 967 | | 2,558 | | 3,117 |
| Cash and cash equivalents | | | | | | |
+-----------------------------+----------+-------------+----------+-------------+----------+-----------+
Unaudited notes to the Interim Financial Statements
For the six months ended 31 May 2010
1. Basis of Preparation
These unaudited interim financial statements are for the six months ended 31 May
2010. They have been prepared in accordance with recognition and measurement
principles of International Financial Reporting Standards (IFRS) as endorsed by
the European Union and implemented in the UK. This report should be read in
conjunction with the annual financial statements for the 15 months ended 30
November 2009, which have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European Union and
International Financial Reporting Interpretations Committee ('IFRIC')
Interpretations and the Companies Act 2006, as applicable to companies reporting
under IFRS.
The financial information in this interim announcement has been prepared in
accordance with IAS 34 'Interim Financial Reporting'. It does not constitute
statutory accounts within the meaning of Section 434 of the Companies Act 2006.
The unaudited interim financial statements were approved by the Board on 24
August 2010.
The comparative financial information for the 15 months ended 30 November 2009
does not constitute statutory accounts within the meaning of Section 434 of the
Companies Act 2006. The statutory accounts of First Artist Corporation plc for
the 15 months ended 30 November 2009 have been reported on by the Company's
auditor, Baker Tilly UK Audit LLP and have been delivered to the Registrar of
Companies. The report of the auditor was unqualified but contained an emphasis
of matter statement with regard to going concern. The auditor's report did not
contain statements under Section 498(2) or 498(3) of the Companies Act 2006.
The financial information for the six months ended 31 May 2010 is unaudited but
has been reviewed by the auditors in accordance with the International Standard
on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial
Information Performed by the Independent Auditor of the Entity" issued by the
Auditing Practices Board for use in the United Kingdom.
Comparative Information
The Group extended its year end in 2009 to the 15 months ended 30 November 2009.
Accordingly the 6 months comparatives were drawn up to 28 February 2009 and the
current period has been drawn up to the 6 months ended 31 May 2010. The Board
have considered that stating the results for the 6 months ended 31 May 2009 is
not required as the structure of the Group is significantly different.
Consequently, presenting results for the 6 months ended 31 May 2009 would not
provide increased understanding of the Group to the reader of the financial
information.
The results for the 6 months ended 28 February 2009 have been restated to show
the impact of the disposal groups as detailed in note 9 and include the effected
prior period adjustments taken to account in the reported results for the period
ended 30 November 2009.
Accounting Policies
The accounting policies adopted in the preparation of the interim consolidated
financial statements are consistent with those followed in the preparation of
the Group's annual financial statements for the 15 months ended 30 November
2009. In the current period, the Group has adopted IAS 1 'Presentation of
Financial Statements' (Revised) and IFRS 8 'Operating Segments'.
1. Basis of Preparation (continued)
Although the adoption of these standards has had no impact on the financial
position and performance of the Group, additional disclosures have been provided
to comply with the revised standards. Changes have also been made with regards
to the presentation of the key financial statement components and segmental
information
On adoption of IAS 1 (Revised) the consolidated Income Statement and
Consolidated Statement of Recognised Income and Expense have been re-presented
as a single statement of Consolidated Comprehensive Income and the Consolidated
Cash Flow Statement has been re-named the Consolidated Statement of Cash Flows'.
IFRS 8 requires disclosure of information about the Group's operating segments
and replaces the requirement to determine primary (business) and secondary
(geographical) reporting segments of the Group. It requires a management
approach under which segment information is presented on the same basis as that
used for internal reporting purposes to the Chief Operating Decision Maker.
Going Concern
These interim financial statements have been prepared on a going concern basis.
Given the continued economic uncertainty and the fact that the Group's banking
facilities are repayable on demand following breaches of certain covenants (as
described in note 8), there are material uncertainties that may cast significant
doubt upon the Group's ability to continue as a going concern.
The Group remains in close negotiations with its bankers and the Group will need
to renegotiate the existing bank covenants along with restructuring of the Group
debt or find alternative funding arrangements. The mezzanine loan repayment of
GBP3.7 million together with rolled up interest of GBP347k which was due on 31
August 2010 has been extended to 28 October 2010 whilst negotiations continue.
The company is confident these negotiations will be successfully resolved.
Consequently the directors have a reasonable expectation that the Group has
adequate resources to continue trading for the foreseeable future. It is
therefore appropriate to prepare the interim financial statements on a going
concern basis. The interim financial statements do not include the adjustments
that would result if the Group was unable to continue as a going concern.
2. Segmental Reporting
The Group has adopted IFRS 8 Operating Segments with effect from 1 December
2009. IFRS 8 requires operating segments to be identified on the basis of
internal reports about components of the Group that are regularly reviewed by
the chief operating decision maker in order to allocate resources to the
segments and to assess their performance. Internally the Group reports within
two identified segments, Media and Events.
The Group's continuing operations are wholly based in the United Kingdom and the
USA. Information regarding the Group's two continuing operating segments is
provided below:
6 months ended 31 May 2010
+--------+--------+--------+--------+---------+-------------+--------+---------+
| | | | Media | Events | Unallocated | | Group |
| | | | GBP000 | GBP000 | GBP000 | | GBP000 |
+--------+--------+--------+--------+---------+-------------+--------+---------+
| | | | | | | | |
+--------+--------+--------+--------+---------+-------------+--------+---------+
| Total revenue | | 35,259 | 1,257 | - | | 36,516 |
+-----------------+--------+--------+---------+-------------+--------+---------+
| | | | | | | | |
+--------+--------+--------+--------+---------+-------------+--------+---------+
| | | | | | | | |
+--------+--------+--------+--------+---------+-------------+--------+---------+
| Adjusted EBITDA | | 1,272 | (148) | (840) | | 284 |
+-----------------+--------+--------+---------+-------------+--------+---------+
| Exceptional | - | - | (168) | | (168) |
| administrative expenses | | | | | |
+--------------------------+--------+---------+-------------+--------+---------+
| Depreciation | (262) | - | (37) | | (299) |
+--------------------------+--------+---------+-------------+--------+---------+
| Amortisation and | (428) | (1,000) | - | | (1,428) |
| impairment | | | | | |
+--------------------------+--------+---------+-------------+--------+---------+
| | | | | | | | |
+--------+--------+--------+--------+---------+-------------+--------+---------+
| Operating profit/(loss) | 582 | (1,148) | (1,045) | | (1,611) |
+--------------------------+--------+---------+-------------+--------+---------+
| | | | | | | | |
+--------+--------+--------+--------+---------+-------------+--------+---------+
| | | | | | | | |
+--------+--------+--------+--------+---------+-------------+--------+---------+
| Finance income | | - | - | 1 | | 1 |
+-----------------+--------+--------+---------+-------------+--------+---------+
| Finance costs | | - | - | (1,703) | | (1,703) |
+-----------------+--------+--------+---------+-------------+--------+---------+
| | | | | | | | |
+--------+--------+--------+--------+---------+-------------+--------+---------+
| Profit/(loss) before tax | | | | | |
| and discontinued | | | | | |
| operations | | | | | |
+ +--------+---------+-------------+--------+---------+
| | 582 | (1,148) | (2,747) | | (3,313) |
+--------------------------+--------+---------+-------------+--------+---------+
| | | | | | | | |
+--------+--------+--------+--------+---------+-------------+--------+---------+
6 months ended 28 February 2009
+-----------+--------+--------+--------+--------+-------------+--------+---------+
| | | | Media | Events | Unallocated | | Group |
| | | | GBP000 | GBP000 | GBP000 | | GBP000 |
+-----------+--------+--------+--------+--------+-------------+--------+---------+
| Revenue | | | | | | | |
+-----------+--------+--------+--------+--------+-------------+--------+---------+
| Total revenue | | 32,804 | 2,344 | - | | 35,148 |
+--------------------+--------+--------+--------+-------------+--------+---------+
| | | | | | | | |
+-----------+--------+--------+--------+--------+-------------+--------+---------+
| | | | | | | | |
+-----------+--------+--------+--------+--------+-------------+--------+---------+
| Adjusted EBITDA | | 1,758 | 339 | (987) | | 1,110 |
+--------------------+--------+--------+--------+-------------+--------+---------+
| Exceptional | (709) | (200) | 1,158 | | 249 |
| administrative expenses | | | | | |
+-----------------------------+--------+--------+-------------+--------+---------+
| Depreciation | (341) | - | (42) | | (383) |
+-----------------------------+--------+--------+-------------+--------+---------+
| Amortisation | (410) | (3) | - | | (413) |
+-----------------------------+--------+--------+-------------+--------+---------+
| | | | | | | | |
+-----------+--------+--------+--------+--------+-------------+--------+---------+
| Operating profit | 298 | 136 | 129 | | 563 |
+-----------------------------+--------+--------+-------------+--------+---------+
| | | | | | | | |
+-----------+--------+--------+--------+--------+-------------+--------+---------+
| | | | | | | | |
+-----------+--------+--------+--------+--------+-------------+--------+---------+
| Finance income | | 134 | - | - | | 134 |
+--------------------+--------+--------+--------+-------------+--------+---------+
| Finance costs | | - | - | (2,339) | | (2,339) |
+--------------------+--------+--------+--------+-------------+--------+---------+
| | | | | | | | |
+-----------+--------+--------+--------+--------+-------------+--------+---------+
| Profit/(loss) before tax | | | | | |
| and discontinued | | | | | |
| operations | | | | | |
+ +--------+--------+-------------+--------+---------+
| | 432 | 136 | (2,210) | | (1,642) |
+-----------------------------+--------+--------+-------------+--------+---------+
| | | | | | | | |
+-----------+--------+--------+--------+--------+-------------+--------+---------+
2. Segmental Reporting (continued)
Segment assets and liabilities are as follows:
31 May 2010
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| | Media | Events | Discontinued | Unallocated | | Group |
| | | | operations | | | |
| | GBP000 | GBP000 | GBP000 | GBP000 | | GBP000 |
+----------------------+--------+--------+--------------+-------------+--------+--------+
| | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| Assets | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| Segment assets | 33,255 | 2,574 | 2,807 | 969 | | 39,605 |
+----------------------+--------+--------+--------------+-------------+--------+--------+
| | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| Total assets | 33,255 | 2,574 | 2,807 | 969 | | 39,605 |
+----------------------+--------+--------+--------------+-------------+--------+--------+
| | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| Liabilities | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| Segment | 13,008 | 839 | 1,407 | 25,691 | | 40,945 |
| liabilities | | | | | | |
+----------------------+--------+--------+--------------+-------------+--------+--------+
| | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| Total | 13,008 | 839 | 1,407 | 25,691 | | 40,945 |
| liabilities | | | | | | |
+----------------------+--------+--------+--------------+-------------+--------+--------+
| | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
28 February 2009
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| | Media | Events | Discontinued | Unallocated | | Group |
| | | | operations | | | |
| | GBP000 | GBP000 | GBP000 | GBP000 | | GBP000 |
+----------------------+--------+--------+--------------+-------------+--------+--------+
| | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| Assets | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| Segment assets | 37,933 | 3,592 | 9,779 | 319 | | 51,623 |
+----------------------+--------+--------+--------------+-------------+--------+--------+
| | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| Total assets | 37,933 | 3,592 | 9,779 | 319 | | 51,623 |
+----------------------+--------+--------+--------------+-------------+--------+--------+
| | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| Liabilities | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| Segment | 9,152 | 188 | 2,357 | 33,277 | | 44,974 |
| liabilities | | | | | | |
+----------------------+--------+--------+--------------+-------------+--------+--------+
| | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
| Total | 9,152 | 188 | 2,357 | 33,277 | | 44,974 |
| liabilities | | | | | | |
+----------------------+--------+--------+--------------+-------------+--------+--------+
| | | | | | | | |
+-------------+--------+--------+--------+--------------+-------------+--------+--------+
Seasonality and cyclicality
The group's principal activities from continuing operations are Media and
Events. The holiday and climatic seasons therefore have a material impact on
revenues.
In regards to the Media businesses, historically, Spring and Autumn are the
busiest seasons due to the launch of new musicals, shows and films in the lead
up to the Christmas season and summer holidays.
In relation to the Events business conferences and parties follow a similar
trend to that of the Media businesses. Sales are not recognised until the event
takes place; expenses are deferred accordingly to match sales revenue.
The impact of the above seasonality patterns has relatively little impact on
these interim financial statements as historically there have been two periods
of high activity which fall separately in to the first and second reporting
periods.
3. Finance Costs
+-----------------------------+-------------+--+-------------+--+-----------+
| | 6 months | | (Restated) | | 15 |
| | ended | | 6 months | | months |
| | 31 May | | ended | | ended |
| | 2010 | | 28 | | 30 |
| | (Unaudited) | | February | | November |
| | GBP000's | | 2009 | | 2009 |
| | | | (Unaudited) | | (Audited) |
| | | | GBP000's | | GBP000's |
+-----------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+-----------------------------+-------------+--+-------------+--+-----------+
| Bank interest | 8 | | 22 | | 28 |
+-----------------------------+-------------+--+-------------+--+-----------+
| Interest on bank loans | 403 | | 728 | | 1,415 |
+-----------------------------+-------------+--+-------------+--+-----------+
| Other interest | 28 | | 121 | | 26 |
+-----------------------------+-------------+--+-------------+--+-----------+
| Amortisation of issue costs | 36 | | 210 | | 311 |
| of bank loan | | | | | |
+-----------------------------+-------------+--+-------------+--+-----------+
| Unwinding of discounting on | 46 | | 308 | | 878 |
| deferred consideration | | | | | |
+-----------------------------+-------------+--+-------------+--+-----------+
| Foreign exchange | 1,182 | | 950 | | (158) |
| loss/(gain) on borrowings | | | | | |
+-----------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+-----------------------------+-------------+--+-------------+--+-----------+
| | 1,703 | | 2,339 | | 2,500 |
| | | | | | |
+-----------------------------+-------------+--+-------------+--+-----------+
The foreign exchange charge of GBP1,182k is an unrealised loss in relation to
the revaluation of borrowings and deferred consideration denominated in US$.
Subsequent to the period end the weakening of the US$ has resulted in an
unrealised gain on these balances totalling GBP650k up to the date of the
approval of these interim statements by the Board.
4. Tax
Due to the uncertainty of the timing of the recovery of deferred tax assets
relating to taxable losses, the Directors are of the opinion that it is not
appropriate to recognise any such assets in respect of any future utilisation of
such amounts.
The taxation credit within the statement of comprehensive income represents the
partial release of the deferred tax liability arising on the acquisition of
intangible assets to match the amortisation of those assets.
5. Loss per share
The calculations of loss per share are based on the following losses and numbers
of shares.
+-----------------------------+-------------+--+-------------+--+------------+
| | 6 months | | (Restated) | | 15 |
| | ended | | 6 months | | months |
| | 31 May | | ended | | ended |
| | 2010 | | 28 | | 30 |
| | (Unaudited) | | February | | November |
| | | | 2009 | | 2009 |
| | Number | | (Unaudited) | | (Audited) |
| | | | | | |
| | | | Number | | Number |
+-----------------------------+-------------+--+-------------+--+------------+
| Weighted average number of | | | | | |
| 2.5 pence ordinary shares | | | | | |
| in issue during the period | | | | | |
+-----------------------------+-------------+--+-------------+--+------------+
| For basic loss per share | 29,940,170 | | 13,901,700 | | 19,172,788 |
+-----------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------+-------------+--+-------------+--+------------+
| For diluted loss per share | 29,940,170 | | 13,901,700 | | 19,172,788 |
+-----------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------+-------------+--+-------------+--+------------+
| | GBP000's | | GBP000's | | GBP000's |
+-----------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------+-------------+--+-------------+--+------------+
| Loss from discontinued | (1,952) | | (1,648) | | (4,701) |
| operations | | | | | |
+-----------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------+-------------+--+-------------+--+------------+
| Loss from continuing | (3,156) | | (906) | | (1,616) |
| operations | | | | | |
+-----------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------+-------------+--+-------------+--+------------+
| | | | | | |
| Loss for the period | (5,108) | | (2,554) | | (6,317) |
+-----------------------------+-------------+--+-------------+--+------------+
| | | | | | |
+-----------------------------+-------------+--+-------------+--+------------+
Due to losses made during the period there is no dilutive effect as at 31 May
2010, 30 November 2009 and 28 February 2009. In the event of the group becoming
profitable, the share options in issue would have a dilutive effect for those
options 'above water'.
6. Goodwill
+---------------+--------+---------+
| | | |
| | | Total |
| | | GBP000 |
+---------------+--------+---------+
| Cost | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| 1 | | 19,625 |
| September | | |
| 2008 | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| Additions | | 6,609 |
+---------------+--------+---------+
| Foreign | | 85 |
| exchange | | |
| differences | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| 28 | | 26,319 |
| February | | |
| 2009 | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| 1 | | 19,625 |
| September | | |
| 2008 | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| Additions | | 6,609 |
+---------------+--------+---------+
| Adjustment | | (1,252) |
| to | | |
| consideration | | |
+---------------+--------+---------+
| Transfer | | (5,960) |
| to | | |
| disposal | | |
| group | | |
| held-for-sale | | |
+---------------+--------+---------+
| Foreign | | (57) |
| exchange | | |
| differences | | |
+---------------+--------+---------+
| Disposal | | (253) |
| on | | |
| termination | | |
| of business | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| 30 | | 18,712 |
| November | | |
| 2009 | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| Adjustment | | (2,349) |
| to | | |
| consideration | | |
+---------------+--------+---------+
| Foreign | | 708 |
| exchange | | |
| differences | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| 31 May | | 17,071 |
| 2010 | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| Impairment | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| 1 | | - |
| September | | |
| 2008 and | | |
| 28 | | |
| February | | |
| 2009 | | |
+---------------+--------+---------+
| Impairment | | 4,172 |
| charge | | |
+---------------+--------+---------+
| Transfer | | (3,828) |
| to | | |
| disposal | | |
| group | | |
| held-for-sale | | |
+---------------+--------+---------+
| Disposal | | (253) |
| on | | |
| termination | | |
| of business | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| 30 | | 91 |
| November | | |
| 2009 | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| Impairment | | 1,000 |
| charge | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| 31 May | | 1,091 |
| 2010 | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| Net | | |
| book | | |
| value | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| 31 May | | 15,980 |
| 2010 | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| 28 | | 26,319 |
| February | | |
| 2009 | | |
+---------------+--------+---------+
| | | |
+---------------+--------+---------+
| 30 | | 18,621 |
| November | | |
| 2009 | | |
+---------------+--------+---------+
Following a review of the estimates and forecasts underpinning the value of
goodwill for The Finishing Touch (Corporate Events) Limited an impairment
totalling GBP1,000k has been charged in the 6 month period ended 31 May
2010.
7. Provisions - deferred consideration
The provisions for liabilities relate to deferred contingent consideration.
Deferred contingent consideration represents the estimated amounts payable,
although the final amounts payable are dependent upon the results of the
acquired businesses, these being Spot and Company of Manhattan Inc, Dewynters
Limited (only in respect of periods ended on 28 February 2009 and 30 November
2009) and Yell Communications Limited. These amounts can be paid either by cash,
loan notes or shares, according to each individual transaction.
Deferred contingent consideration is payable as follows:
+---------+--------+--------+--------+----------+--------+----------+
| | | 31 May | | 28 | | 30 |
| | | | | February | | November |
| | | 2010 | | 2009 | | 2009 |
| | | GBP000 | | GBP000 | | GBP000 |
| | | | | | | |
+---------+--------+--------+--------+----------+--------+----------+
| | | | | | | |
+---------+--------+--------+--------+----------+--------+----------+
| Within | | 2,830 | | 4,070 | | 4,042 |
| one | | | | | | |
| year | | | | | | |
+---------+--------+--------+--------+----------+--------+----------+
| Between | | 2,232 | | 4,003 | | 2,772 |
| one and | | | | | | |
| two | | | | | | |
| years | | | | | | |
+---------+--------+--------+--------+----------+--------+----------+
| Between | | 250 | | 3,245 | | 2,123 |
| two and | | | | | | |
| five | | | | | | |
| years | | | | | | |
+---------+--------+--------+--------+----------+--------+----------+
| | | | | | | |
+---------+--------+--------+--------+----------+--------+----------+
| | | | | | | |
+---------+--------+--------+--------+----------+--------+----------+
| | | 5,312 | | 11,318 | | 8,937 |
+---------+--------+--------+--------+----------+--------+----------+
+--------+--------+--------+---------+--------+----------+--------+----------+
| | | | 31 May | | 28 | | 30 |
| | | | | | February | | November |
| | | | 2010 | | 2009 | | 2009 |
| | | | GBP000 | | GBP000 | | GBP000 |
| | | | | | | | |
+--------+--------+--------+---------+--------+----------+--------+----------+
| | | | | | | | |
+--------+--------+--------+---------+--------+----------+--------+----------+
| At start of period | 8,937 | | 4,851 | | 4,851 |
+--------------------------+---------+--------+----------+--------+----------+
| | | | | | |
+--------------------------+---------+--------+----------+--------+----------+
| Deferred consideration | - | | 7,280 | | 7,551 |
| on acquisitions | | | | | |
+--------------------------+---------+--------+----------+--------+----------+
| Adjustments to existing | | | | | |
| deferred consideration | (2,349) | | (245) | | (1,252) |
+--------------------------+---------+--------+----------+--------+----------+
| Unwinding of discounting | | | | | |
| on deferred | 46 | | 308 | | 878 |
| consideration | | | | | |
+--------------------------+---------+--------+----------+--------+----------+
| Payments of deferred | (92) | | (1,566) | | (2,849) |
| consideration cash | | | | | |
+--------------------------+---------+--------+----------+--------+----------+
| Payments of deferred | | | | | |
| consideration loan notes | (1,971) | | - | | - |
+--------------------------+---------+--------+----------+--------+----------+
| Payments of deferred | (7) | | (13) | | (113) |
| consideration equity | | | | | |
+--------------------------+---------+--------+----------+--------+----------+
| Foreign exchange | 748 | | 703 | | (129) |
| differences | | | | | |
+--------------------------+---------+--------+----------+--------+----------+
| | | | | | |
+--------------------------+---------+--------+----------+--------+----------+
| | | | | | |
+--------------------------+---------+--------+----------+--------+----------+
| | 5,312 | | 11,318 | | 8,937 |
+--------------------------+---------+--------+----------+--------+----------+
| | | | | | |
+--------+--------+--------+---------+--------+----------+--------+----------+
8. Borrowings
+--------------+----------+--------+----------+--------+----------+
| | 31 May | | 28 | | 30 |
| | | | February | | November |
| | 2010 | | 2009 | | 2009 |
| | GBP000 | | GBP000 | | GBP000 |
+--------------+----------+--------+----------+--------+----------+
| Current: | | | | | |
+--------------+----------+--------+----------+--------+----------+
| Bank | 1,806 | | - | | 939 |
| overdrafts | | | | | |
+--------------+----------+--------+----------+--------+----------+
| Loan | 1,999 | | 1,825 | | - |
| notes | | | | | |
+--------------+----------+--------+----------+--------+----------+
| Bank | 16,597 | | 695 | | 4,888 |
| loans | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | 20,402 | | 2,520 | | 5,827 |
+--------------+----------+--------+----------+--------+----------+
| | | | | | |
+--------------+----------+--------+----------+--------+----------+
| Non-current: | | | | | |
+--------------+----------+--------+----------+--------+----------+
| Bank | - | | 16,704 | | 11,684 |
| loans | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | | | | | |
+--------------+----------+--------+----------+--------+----------+
| Analysis | | | | | |
| of due | | | | | |
| dates | | | | | |
| for | | | | | |
| borrowings: | | | | | |
+--------------+----------+--------+----------+--------+----------+
| On | | | | | |
| demand | | | | | |
| or | | | | | |
| within | | | | | |
| one | | | | | |
| year | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | 1,806 | | - | | 939 |
| Bank | | | | | |
| overdrafts | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | 1,999 | | 1,825 | | - |
| Loan | | | | | |
| notes | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | 7,160 | | 188 | | 1,000 |
| Bank | | | | | |
| loan - | | | | | |
| senior | | | | | |
| variable | | | | | |
| rate | | | | | |
| loan | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | 5,524 | | - | | - |
| Bank | | | | | |
| loan - | | | | | |
| senior | | | | | |
| term | | | | | |
| loan B | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | 3,913 | | 507 | | 3,888 |
| Mezzanine | | | | | |
| loan | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | 20,402 | | 2,520 | | 5,827 |
+--------------+----------+--------+----------+--------+----------+
| In the | | | | | |
| second | | | | | |
| year | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | - | | 565 | | 960 |
| Bank | | | | | |
| loan - | | | | | |
| senior | | | | | |
| variable | | | | | |
| rate | | | | | |
| loan | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | - | | 3,784 | | - |
| Mezzanine | | | | | |
| loan | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | - | | 4,349 | | 960 |
+--------------+----------+--------+----------+--------+----------+
| In the | | | | | |
| third | | | | | |
| to | | | | | |
| fifth | | | | | |
| years | | | | | |
| inclusive | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | - | | 7,355 | | 5,200 |
| Bank | | | | | |
| loan - | | | | | |
| senior | | | | | |
| variable | | | | | |
| rate | | | | | |
| loan | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | - | | 5,000 | | 5,524 |
| Bank | | | | | |
| loan - | | | | | |
| senior | | | | | |
| term | | | | | |
| loan B | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | - | | 12,355 | | 10,724 |
+--------------+----------+--------+----------+--------+----------+
| | | | | | |
+--------------+----------+--------+----------+--------+----------+
| Amounts | 20,402 | | 19,224 | | 17,511 |
| due for | | | | | |
| settlement | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | | | | | |
+--------------+----------+--------+----------+--------+----------+
| Less | (20,402) | | (2,520) | | (5,827) |
| amounts | | | | | |
| due | | | | | |
| within | | | | | |
| one | | | | | |
| year | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | | | | | |
+--------------+----------+--------+----------+--------+----------+
| Amounts | - | | 16,704 | | 11,684 |
| due for | | | | | |
| settlement | | | | | |
| after one | | | | | |
| year | | | | | |
+--------------+----------+--------+----------+--------+----------+
| | | | | | |
+--------------+----------+--------+----------+--------+----------+
The loan notes were unsecured and related to loan notes payable to the
principals of Dewynters Limited and The Finishing Touch (Corporate Events)
Limited.
Covenant breach
The company is in breach of its current banking covenants governing the terms of
the loans owing to Allied Irish Bank (GB). The covenant breaches occurred
following the disposal of certain subsidiary undertakings and consequently the
company has entered preliminary discussions with the bank with a view to
renegotiation of its covenants and its banking facilities. The mezzanine debt
of GBP3.728 million together with rolled up interest of GBP347,366 which falls
due for payment on 31 August 2010 had been extended to 31 October 2010 whilst
negotiations continue.
Borrowings have treated as due within one year as the facilities are repayable
on demand following the covenant breaches.
9. Disposal Group classified as held-for-sale and discontinued operations
The assets and liabilities related to First Artist Sport Limited, Promosport
Limited and First Artist Scandinavia A/S ("the Sports Division"), have been
presented as held for sale following the approval by the Group's management to
sell the companies.
Optimal Wealth Limited and First Artist Management Limited were sold in February
2010 and have been presented as discontinued operations along with the Sports
division.
Details of disposal groups and discontinued operations as at 30 November 2009
can be found in note 18 of the Group financial statements for that period.
Assets of disposal group classified as held-for-sale
+------------+--------+----------+
| | | Sports |
| | | division |
| | | Total |
| | | GBP000 |
+------------+--------+----------+
| | | |
+------------+--------+----------+
| Property, | | 86 |
| plant and | | |
| equipment | | |
+------------+--------+----------+
| Available | | 22 |
| for sale | | |
| investment | | |
+------------+--------+----------+
| Intangible | | 690 |
| assets - | | |
| goodwill | | |
+------------+--------+----------+
| Other | | 2,009 |
| current | | |
| assets | | |
+------------+--------+----------+
| | | |
+------------+--------+----------+
| | | 2,807 |
+------------+--------+----------+
| | | |
+------------+--------+----------+
Liabilities of disposal group classified as held-for-sale
+-------------+--------+----------+
| | | Sports |
| | | division |
| | | Total |
| | | GBP000 |
+-------------+--------+----------+
| | | |
+-------------+--------+----------+
| Trade | | 1,309 |
| and | | |
| other | | |
| payables | | |
+-------------+--------+----------+
| Other | | 98 |
| current | | |
| liabilities | | |
| (including | | |
| tax) | | |
+-------------+--------+----------+
| | | |
+-------------+--------+----------+
| | | 1,407 |
+-------------+--------+----------+
| | | |
+-------------+--------+----------+
Analysis of the result of discontinued operations, and the result on the
re-measurement of assets of disposal group, is as follows:
+----------------+----------+---------+------------+---------+
| 6 | Sports | Optimal | First | |
| months | division | Wealth | Artist | Total |
| ended | | Limited | Management | |
| 31 May | GBP000 | GBP000 | Limited | GBP000 |
| 2010 | | | GBP000 | |
+----------------+----------+---------+------------+---------+
| | | | | |
+----------------+----------+---------+------------+---------+
| Revenue | 406 | 276 | 101 | 783 |
+----------------+----------+---------+------------+---------+
| Expenses | (1,630) | (333) | (91) | (2,054) |
+----------------+----------+---------+------------+---------+
| (Loss)/profit | (1,224) | (57) | 10 | (1,271) |
| before tax of | | | | |
| discontinued | | | | |
| operations | | | | |
+----------------+----------+---------+------------+---------+
| Tax | - | 16 | - | 16 |
+----------------+----------+---------+------------+---------+
| | | | | |
+----------------+----------+---------+------------+---------+
| (Loss)/profit | (1,224) | (41) | 10 | (1,255) |
| after tax of | | | | |
| discontinued | | | | |
| operations | | | | |
+----------------+----------+---------+------------+---------+
| | | | | |
+----------------+----------+---------+------------+---------+
| Pre-tax | | | | |
| (loss)/profit | | | | |
| recognised on | (782) | 80 | 5 | (697) |
| re-measurement | | | | |
| of assets of | | | | |
| disposal group | | | | |
| and profit on | | | | |
| disposal | | | | |
+----------------+----------+---------+------------+---------+
| | | | | |
+----------------+----------+---------+------------+---------+
| | | | | |
+----------------+----------+---------+------------+---------+
| (Loss)/profit | | | | |
| for the | (2,006) | 39 | 15 | (1,952) |
| period from | | | | |
| discontinued | | | | |
| operations | | | | |
+----------------+----------+---------+------------+---------+
9.Disposal Group classified as held-for-sale and discontinued operations
(continued)
+---------------+---------+------------+---------+
| | | | |
+---------------+---------+------------+---------+
| | Optimal | First | |
| | Wealth | Artist | Total |
| | Limited | Management | |
| Profit | GBP000 | Limited | GBP000 |
| on | | GBP000 | |
| disposal | | | |
| of | | | |
| subsidiaries | | | |
+---------------+---------+------------+---------+
| | | | |
+---------------+---------+------------+---------+
| Consideration | 1,500 | 175 | 1,675 |
| on sale | | | |
+---------------+---------+------------+---------+
| | | | |
+---------------+---------+------------+---------+
| Costs | (232) | (34) | (266) |
| of | | | |
| disposal | | | |
+---------------+---------+------------+---------+
| Net | (122) | (7) | (129) |
| assets | | | |
| on | | | |
| disposal | | | |
+---------------+---------+------------+---------+
| Goodwill | (1,066) | (129) | (1,195) |
| on | | | |
| disposal | | | |
+---------------+---------+------------+---------+
| | | | |
+---------------+---------+------------+---------+
| | | | |
+---------------+---------+------------+---------+
| | 80 | 5 | 85 |
+---------------+---------+------------+---------+
+---------------+----------+---------+------------+---------+
| 6 | Sports | Optimal | First | |
| months | division | Wealth | Artist | Total |
| ended | | Limited | Management | |
| 28 | GBP000 | GBP000 | Limited | GBP000 |
| February | | | GBP000 | |
| 2009 | | | | |
+---------------+----------+---------+------------+---------+
| | | | | |
+---------------+----------+---------+------------+---------+
| Revenue | 1,181 | 1,107 | 326 | 2,614 |
+---------------+----------+---------+------------+---------+
| Expenses | (2,255) | (915) | (350) | (3,520) |
+---------------+----------+---------+------------+---------+
| (Loss)/profit | (1,074) | 192 | (24) | (906) |
| before tax of | | | | |
| discontinued | | | | |
| operations | | | | |
+---------------+----------+---------+------------+---------+
| Tax | 57 | (57) | - | - |
+---------------+----------+---------+------------+---------+
| | | | | |
+---------------+----------+---------+------------+---------+
| (Loss)/profit | (1,017) | 135 | (24) | (906) |
| after tax of | | | | |
| discontinued | | | | |
| operations | | | | |
+---------------+----------+---------+------------+---------+
| | | | | |
+---------------+----------+---------+------------+---------+
10.Cash generated from operations
+-----------------------------+--+-------------+--+-------------+--+-----------+
| | | 6 | | (Restated) | | 15 |
| | | months | | 6 months | | months |
| | | ended | | ended | | ended |
| | | 31 May | | 28 | | 30 |
| | | 2010 | | February | | November |
| Reconciliation of net cash | | (Unaudited) | | 2009 | | 2009 |
| flows from operating | | GBP000's | | (Unaudited) | | (Audited) |
| activities | | | | GBP000's | | GBP000's |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| | | | | | | |
| Loss before taxation | | (5,281) | | (2,548) | | (6,040) |
| (including discontinued) | | | | | | |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| | | | | | | |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| Finance costs | | 1,703 | | 2,339 | | 2,500 |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| Finance income | | (1) | | (134) | | (61) |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| Depreciation | | 311 | | 435 | | 939 |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| Impairment of goodwill | | 1,247 | | - | | 4,172 |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| Impairment of | | - | | 100 | | 60 |
| available-for-sale | | | | | | |
| investment | | | | | | |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| Amortisation of intangibles | | 428 | | 313 | | 985 |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| Profit on disposal of | | | | | | |
| property, plant and | | - | | (5) | | - |
| equipment | | | | | | |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| Profit on disposal of | | (85) | | - | | - |
| subsidiary | | | | | | |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| Share options charge | | 10 | | 81 | | 45 |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| | | | | | | |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| Operating cash flows before | | | | | | |
| movements in working | | (1,668) | | 581 | | 2,600 |
| capital | | | | | | |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| | | | | | | |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| Decrease / (increase) in | | 222 | | 348 | | (588) |
| inventories | | | | | | |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| Decrease in trade and other | | 2,258 | | 1,509 | | 1,306 |
| receivables | | | | | | |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| (Decrease)/increase in | | | | | | |
| trade and other payables | | (3,030) | | (100) | | 3,695 |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| | | | | | | |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| Cash (used in)/generated | | | | | | |
| from operating activities | | (2,218) | | 2,338 | | 7,013 |
+-----------------------------+--+-------------+--+-------------+--+-----------+
| | | | | | | |
+-----------------------------+--+-------------+--+-------------+--+-----------+
The cash flows of the discontinued operations were as follows:
+-----------+----------+---------+------------+--------+
| 6 | Sports | Optimal | First | |
| months | division | Wealth | Artist | Total |
| ended | | Limited | Management | |
| 31 May | GBP000 | GBP000 | Limited | GBP000 |
| 2010 | | | GBP000 | |
+-----------+----------+---------+------------+--------+
| | | | | |
+-----------+----------+---------+------------+--------+
| Operating | (320) | (110) | (217) | (647) |
| cash | | | | |
| flows | | | | |
+-----------+----------+---------+------------+--------+
| Investing | - | - | 142 | 142 |
| cash | | | | |
| flows | | | | |
+-----------+----------+---------+------------+--------+
| | | | | |
+-----------+----------+---------+------------+--------+
| | (320) | (110) | (75) | (505) |
+-----------+----------+---------+------------+--------+
+-----------+----------+---------+------------+--------+
| 6 | Sports | Optimal | First | |
| months | division | Wealth | Artist | Total |
| ended | | Limited | Management | |
| 28 | GBP000 | GBP000 | Limited | GBP000 |
| February | | | GBP000 | |
| 2009 | | | | |
+-----------+----------+---------+------------+--------+
| | | | | |
+-----------+----------+---------+------------+--------+
| Operating | (108) | 101 | 28 | 21 |
| cash | | | | |
| flows | | | | |
+-----------+----------+---------+------------+--------+
| Investing | - | - | - | - |
| cash | | | | |
| flows | | | | |
+-----------+----------+---------+------------+--------+
| | | | | |
+-----------+----------+---------+------------+--------+
| | (108) | 101 | 28 | 21 |
+-----------+----------+---------+------------+--------+
11. Events after the reporting date
Disposal of subsidiaries
On 1 July 2010 the Group completed the sale of First Artist Scandinavia A/S, a
company incorporated in Denmark, for GBP600,000 and contingent deferred
consideration of GBP37,500.
Discounted settlement of loan notes
On 18 June 2010, the Group made a payment of GBP1.5 million as full and final
settlement of loan note liabilities totalling GBP1.99 million.
Offer period
On 10 August 2010 the Board confirmed that it is in talks which may or may not
lead to an offer being made for the Group. The Board emphasizes that discussions
are at an early stage and that there can be no assurance that an offer will be
forthcoming. The Group remains in an Offer Period, as defined in the Takeover
Code, as at the date of this document.
12. Related Parties
During the 6 month interim reporting period to May 2010, the Group procured
event management consultancy services totalling GBP14,763 (6 months ended 28
February 2009: GBP12,642; 15 months ended 30 November 2009: GBP31,605) from
Splash Events Limited, a company 50% owned by Janine Smith, wife of Jon Smith
(Chief Executive). Janine Smith also has the use of a company car worth up to
GBP8,100 (6 months ended February 2009: GBP6,000; 15 months ended 30 November
2009: GBP6,000). GBP4,228 was outstanding at May 2010 from Splash Events
Limited (28 February 2009: Nil; 30 November 2009: Nil). This amount was settled
in June 2010.
During the 6 month interim reporting period, the Group procured event management
and administrative services totalling GBP15,250 (6 months ended February 2009:
GBP15,250; 15 months ended 30 November 2009: GBP38,125) from Sara Smith, wife of
Phil Smith (Chief Operating Officer). Sara Smith also has the use of a company
car, worth up to GBP6,000 (6 months ended February 2009: GBP6,000; 15 months
ended 30 November 2009: GBP6,000). No balances were outstanding at May 2010
(February 2009: Nil; 30 November 2009: Nil).
During the 6 month interim reporting period, the Group procured equity
consultancy services totalling GBP16,359 (6 months ended February 2009: Nil; 15
months ended 30 November 2009: Nil) from QV Partners Limited, a company part
owned by David Noble (Non-executive Director). GBP11,324 was outstanding at May
2010 from QV Partners Limited (February 2009: Nil; 30 November 2009: Nil). This
amount was settled in June 2010.
13. Interim Report
This document is available on the Company's website at www.firstartist.com.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DXLFLBVFFBBB
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