Trading Statement

 

TIDMFAN 
 
RNS Number : 0532H 
First Artist Corporation PLC 
12 February 2010 
 
 
 
 
                          First Artist Corporation plc 
                ("First Artist" or the "Company" or the "Group") 
 
                                Trading Statement 
 
 
First Artist Corporation plc (AIM:FAN) provides an update on trading, ahead of 
the General Meeting to be held later today and prior to entering the close 
period before the announcement of preliminary results for the 15 months ended 30 
November 2009, which will be made on 20 April 2010. 
 
Strategic Update 
 
First Artist announced in June 2009 that it was reviewing its strategic options 
with regard to its non-core businesses, in keeping with its stated objectives of 
debt reduction and the redefinition of the Group with media at its heart. 
 
In line with these objectives, and in a very difficult economic climate for M&A 
activity, the Company is pleased to have completed the sale of its wealth 
management business, as announced on 2 February, and the sale of its artist 
representation agency, as announced this morning. 
 
The Group continues to examine its options for First Artist Sport, its 
international football representation and transfer dealing agency. Discussions 
are ongoing with Sport's management with regard to a sale, and the market will 
be kept informed. 
 
The Company has been informed by the auditors that under the international 
accounting standard IFRS5, the businesses which have been sold since the end of 
the financial period ended 30 November 2009, and those which it intends to sell, 
will need to be accounted for in the Group's consolidated financial statements 
for that period as assets held for sale.  The Group's media businesses, which 
comprise the Dewynters group of companies, SpotCo, The Finishing Touch and First 
Rights, will be reported on within continuing operations. 
 
Media 
 
Dewynters 
 
On a like for like basis, and in line with management expectations, Dewynters' 
revenue and EBITDA for the period ended 30 November 2009 were slightly down on 
its previous financial year.  However, in the current trading period the company 
has secured significant new business, including five major West End productions 
which will launch this spring. West End audiences have shown remarkable 
resilience to the global recession, with theatres enjoying record attendances 
during 2009.   This buoyant market is very positive for our clients and is 
expected to result in an increasing appetite for investment in future 
productions. 
 
 
 SpotCo 
 
Broadway's theatre attendance, whilst slightly down on the previous year, 
remained robust during 2009. 
 
SpotCo has delivered a stellar performance since joining the Group in October 
2008, achieving a record year which surpassed management expectations at the 
time of acquisition.  The agency continues to win new business, including La 
Cage aux Folles, Fences with Denzel Washington, Priscilla, Queen of the Desert, 
and Million Dollar Quartet, and is also seeing success through its collaboration 
with Dewynters. 
 
 
The Finishing Touch ("TFT") 
 
 
The events industry was hit hard by the recession, with many established 
companies being forced out of the market, and The Finishing Touch inevitably had 
a difficult period in 2008-09.  However, as anticipated, TFT saw signs of 
renewed interest from its customers in late autumn, and due to its range of 
innovative products, Christmas was much stronger than expected.  Enquires and 
confirmed bookings have continued to be encouraging in the early part of this 
year. 
 
TFT's disappointing outcome for 2009 should be seen in the context of its 
trading success in prior years. The Directors are confident that the company 
will return to growth this year given the hard work of its staff, its reputation 
in the market place and the loyalty of its customers. 
 
First Rights ("FRL") 
 
First Rights, our fledging rights business, whilst yet to demonstrate its full 
potential, achieved a breakthrough into theatre sponsorship this year. FRL 
introduced and managed Chambord's sponsorship of the successful West End 
production Breakfast at Tiffany's and is exploring further sponsorship 
opportunities in the entertainment space. The Group believes that being able to 
offer this service is very valuable to our clients. 
 
 
 
Summary and Outlook 
 
The results across the media division, which will constitute our continuing 
operations moving forward, were slightly down overall on management's forecasts 
for the 15 month period ended 30 November 2009.  However, we are confident that 
the underlying strength of these businesses gives an ideal platform for the 
coming year. 
 
The Company continues to be focussed on debt reduction and the maximisation of 
its strong cash-flow, and is now concentrating on bringing its central costs 
into line with a more highly focussed group of companies. The major items of 
Group expenditure to be dealt with will now be excess property costs, and 
although these are held on relatively short leases, we remain determined to 
realise savings. 
 
Business assets held for sale as at 30th November 2009 
 
 
 First Artist Sport ("Sport") 
 
The Group updated its shareholders after the close of the summer 2009 transfer 
window, and was pleased to report a record trading window. However, as has been 
widely reported in the press, this year's January window was very disappointing, 
and although Sport maintained its market share, the outcome is down on 
management forecasts. This will not impact on the Group's figures to 30th 
November 2009 but will obviously affect the currents year's results. Sport has 
also had to re-structure its Italian football agency, Promosport, as the 
corporate structure required to trade under the Italian football regulations has 
changed dramatically, with corporate bodies required to be majority owned by 
FIFA licenced football agents. The Group has therefore decided to put Promosport 
into run-off, which is likely to result in a re-structuring charge (non cash) of 
around GBP1 million. The Board is confident that the new structure that it has 
put in place will be fit for purpose and will resolve a very difficult dilemma. 
 
The 15 month period to 30 November 2009 of course includes only two transfer 
windows (the month of January 2009, and the summer window of June/July/August 
2009) and has 15 months of expenses rather than the normal twelve. 
 
 
Optimal Wealth Management Limited ("Optimal") 
 
First Artist announced the disposal of its independent financial advisory firm 
on 2 February 2010.  Optimal's numbers to 30 November 2009, although creditable 
against the background of a weak market for investment products, were lower than 
previous years. We believe that Optimal performed well against its peers, thanks 
largely to the skill, hard work and dedication of its staff, and we wish them 
and the business every success for the future. 
 
 
First Artist Management ("FAM") 
 
The disposal of the Group's artist representation agency to James Grant Media is 
announced this morning.  FAM's results to 30 November 2009 were significantly 
down on previous years, which has to be viewed in the context of much reduced 
budgets from all broadcasters. We firmly believe that FAM will operate more 
successfully as part of a larger group of complimentary businesses, and we wish 
the agency the very best for the future. 
 
 
                                  -     ends - 
 
For further information: 
 
+------------------------------------------------+--------------------------+ 
| First Artist Corporation plc                   | tel: [phone]            | 
| Jon Smith, Chief Executive                     | 0000                     | 
| Julianne Coutts, Director & Company Secretary  | www.firstartist.com      | 
|                                                |                          | 
+------------------------------------------------+--------------------------+ 
| Daniel Stewart & Company plc, Nominated        | tel: [phone]            | 
| Adviser and Broker                             | 6550                     | 
| Stewart Dickson/Graham Webster                 | www.danielstewart.co.uk  | 
|                                                |                          | 
+------------------------------------------------+--------------------------+ 
 
Notes to Editors: 
First Artist Corporation plc was admitted to AIM in 2002. 
 
First Artist's group companies are among the leading brands in their fields 
under the following categories: 
 
Media - entertainment advertising, marketing, design, promotions, digital media, 
merchandising, signage and front of house displays for the West End, Broadway 
and Las Vegas via the Dewynters, SpotCo and Newman Displays brands. Sponsorship 
rights marketing through First Rights Limited.  Events such as conferences, 
company activity days, parties, venue finding, delegate management and client 
events for private and public sector clients through The Finishing Touch. 
 
Sport - representation of football players/clubs across the UK, Europe and the 
US through the Sport division. 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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