Final Results
CSS Stellar PLC
16 March 2005
For Immediate Release 16 March 2005
CSS Stellar plc
('CSS' or 'the Group')
Preliminary Results
for the year ended 31 December 2004
CSS Stellar plc, the global entertainment and sports management and marketing
group, today announces its preliminary results for the year ended 31 December
2004.
Summary:
• Results ahead of 2004 interim expectations
• Turnover on continuing businesses increased to £67.8 million (2003:
£63.5 million)
• Increase in EPS adjusted profit to £0.85 million (2003: £0.69 million)
• Reduction in administrative expenses to £31.9 million (2003: £34.6
million)
• Disposal of Target generated £0.7 million in cash
• Improvement in fully diluted earnings per share to a loss of 10.61p
(2003: loss of 17.15p)
Commenting on the results John Webber, Chairman, stated:
'I am delighted that the results are ahead of expectations. We believe that our
core companies are operating in market sectors that will deliver significant
growth in the coming years. Our aim is to have established profitable companies
in position to take advantage of this growth.'
For further information please contact:
CSS Stellar
Sean Kelly, Chief Executive Tel: 020 7466 5000 (am)
Kevin Rose, Finance Director Tel: 020 7078 1400 (thereafter)
Buchanan Communications
Bobby Morse/Rebecca Skye Dietrich Tel: 020 7466 5000
CHAIRMAN'S STATEMENT
Overview & Strategy
I am very pleased to report that the year end result was ahead of our
expectations when we announced our half-year results last September, with the
Group improving its profits from core operating activities by 23% in the year.
The restructuring exceptional costs envisaged for the Group were announced at
the half-year. I am also pleased to report the successful sale of our partially
owned investment in Target Entertainment, which gave us a profit of £216,000,
releasing cash back to the Group of nearly £700,000.
The business has now achieved its short term objectives - rationalisation along
with a significant cut in overhead costs. It now needs to progress to the next
stage of its development, which is primarily a commitment to grow the now
profitable core businesses in the Group by improving margins and building on
existing centres of excellence.
Financial Results
The year end profits were slightly ahead of market forecasts, on a turnover of
£77.8m (2003: £72.9m). The fully diluted adjusted earnings per share increased
to 2.84p (2003: 2.56p), which arose because of an increase in adjusted operating
profits from our ongoing businesses to £847,000 (2003: £688,000) an improvement
of 23%. Net asset value per share at the year end was 129p (2003: 149p), the
fall arising largely as a result of the amortisation of goodwill. The
consolidated losses after amortisation, tax and minority interests were £2.9m
(2003: £4.5m).
The Market
The markets in which we operate have generally improved in the year,
particularly in the areas of film, events and sport. The weakness of the US
dollar continues to mean that increasingly we need to service our US dollar
earning clients out of the USA.
PricewaterhouseCoopers, in their media outlook for 2004-08, anticipated that
improved economic growth will boost spending on entertainment and media, new
distribution channels will contribute to growth and new technology will
stimulate some mature market segments. Looking forward, this reinforces our
belief that our core companies are operating in market sectors that will deliver
significant growth in the coming year.
In particular, we believe that there will be a substantial increase in the
demand for content, which will put a premium on our talent base as they are an
integral part of providing this content. Similarly, our corporate clients will
increasingly spend high proportions of their marketing budgets on exploiting
that content.
Current Trading
The Group has made a good start to 2005 with Talent Management and Events
showing some improvement on their 2004 trading after two months last year.
Dividends
It remains the intention of the Group to resume payment of dividends on its
return to profitability.
Once again, I express my thanks to all our employees worldwide for their efforts
in what has been a much better year, with the business's operations now both
profitable and focused.
John Webber
Chairman
16 March 2005
CHIEF EXECUTIVES' OPERATIONAL REVIEW
This year has seen a restructuring of the Group with the aim of concentrating on
its profitable core businesses, building them up as centres of excellence, which
provide high quality service to their respective client bases. In 2004 and in
early 2005, businesses which did not meet these criteria were sold or closed
down.
Talent Management
Overall, revenues for the Division showed an increase to £10.9m (2003: £10.1m).
Operating profits prior to amortisation were £1.2m (2003: £1.0m). The growth of
20% in profits is after taking account of a declining US dollar and continuing
investment in the development of a New York literary agency as well as
establishing a golf management division in the UK.
During the period continued investments were made in the future development of
both the entertainment and sport businesses, principally in the US and Asia.
In Europe, PFD had a good year, and a number of awards were won by clients
reflecting the strength and depth of the client base. These included:
• Mike Leigh won the BAFTA for Best Director for his film 'Vera Drake', as
well as The Golden Lion at the Venice Film Festival and Best Film at the
Evening Standard Awards. It also received 2 Oscar nominations for Best
Director and Best Original Screenplay.
• Pawel Pawlikowski wrote and directed 'My Summer of Love', winner of the
BAFTA for Outstanding British Film of the Year. It stars Natalie Press,
winner of the award for Most Promising Newcomer at the Evening Standard
Awards.
• Alan Bennett's play 'The History Boys' won the Olivier Award for Best New
Play, with Nicholas Hytner winning the award for Best Director.
• Julian Barnes has won the Austrian State Prize for European Literature.
The prize has only been awarded to a British writer on three previous
occasions in its history, and will be presented to Julian by the Austrian
President in the summer of 2005.
• John Barry won a BAFTA Academy Fellowship for his achievements as a music
composer.
• Kate Winslet was nominated for the Best Actress Oscar, and twice in that
same category for the BAFTA Awards.
In addition, PFD authors featured highly on the bestseller lists with Paul
McKenna's 'Change Your Life in Seven Days' and 'I Can Make You Thin', Ricky
Gervais' first foray into children's books 'Flanimals', and Ewan McGregor and
Charley Boorman's 'Long Way Round'.
PFD's New York office is now fully operational and in 2004 successfully sold
books for London-based clients such as Charles Chadwick and Mark Lewisohn as
well as attracting clients based in the USA, such as Garry Kasparov and Howell
Raines, the former editor of the New York Times.
The management representation of presenters continued to flourish in the year
with Piers Morgan and Mark Nicholas joining established stars Anne Robinson and
Michael Parkinson, who made a very successful move to ITV in 2004.
In Sports, the Group continued to represent F1 star, Juan Pablo Montoya, as he
made his move to McLaren for the 2005 season. In the USA, Dan Wheldon emerged
as a new star in the IRL race series as he and Dario Franchitti made Andretti
Green the most successful team of 2004. In motor sport, world rally driver
Sebastien Loeb won the 2004 World Rally Championship while Andrea Dovizioso won
the junior MotoGp 125 world championship. 2004 also saw the representation of
Milka Duno leading to a multi-million dollar sponsorship deal with CITGO, the
Venezuelan Oil Company, and the management of their sponsorship programme in the
Rolex Sports Car Series. Duno became the first woman ever to secure a victory
in this series.
In football a contract has been agreed with Chelsea FC to work on in their
centennial celebrations in 2005, and our Swiss client, Philippe Senderos is now
a regular in the Arsenal first team. During 2004 a number of promising young
golfers were signed, including Lars Brovold and Franceso Molinari.
Stellar Financial Partners was closed during the year as part of the Group's
strategy to concentrate on core businesses.
Marketing
Operating profits prior to amortisation of goodwill were £0.9m (2003: £1.9m) on
turnover of £50.3m (2003: £48.1m). While North American currencies have devalued
against sterling, we have still had growth in turnover, particularly in our
advertising company, Echo. However margins have been reduced as a result of
competition to win and retain business.
The UK business was not as profitable in 2004 as early years as a result of it
building up its global capabilities. In 2004 GEM Europe placed much greater
emphasis on developing the ability of the agency to deliver Strategic Marketing
consultancy in addition to the more established UK event and sponsorship
activation and exploitation services. The benefits of this are beginning to be
realised and UBS and B&Q have now become major global clients. The agency has
also strengthened its reputation within sailing working for BG Group and their
sponsorship of a boat in the Global Challenge Yacht Race. In the USA we are also
now activating part of GE's Olympic programme through 2008.
The merger of GEM and Echo was completed during 2004. We expect there to be
operational synergies in particular in Canada, and an improved offering to
corporate clients going forward.
As announced at the interims, we have now removed stand alone sponsorship sales
as a business, either integrating it into GEM, in the UK, or selling it as in
Canada. In the UK the CSS sponsorship business was closed which resulted in a
loss of £0.1m.
Events
Operating profits prior to amortisation of goodwill were £0.7m (2003: £0.4m) on
turnover of £6.6m (2003: £5.0m).
Events has seen strong revenue and margin growth in 2004. Icon supplied and
installed the signage for all venues at EURO 2004 in Portugal. Icon also became
the branding agency for the London 2012 Olympic bid.
Icon has started strongly in 2005 continuing work on the London 2012 Olympic bid
in addition to major contracts with the England and Wales Cricket Board, Chelsea
FC and The Champions League.
Television
In February 2005 we sold Target Entertainment Ltd for £0.7m in consideration.
Reality based television, which had become the focus of Target's production
portfolio, was not an ideal fit with the assets that we have available to us.
Therefore, it made both financial and strategic sense to focus our attention on
other areas of television going forward. CSS remains committed to the strategy
of incorporating a television division to create, develop and distribute
programming which incorporates the personalities and clients of companies within
the Group.
Future Prospects
In the entertainment industry, we have a powerful agency in PFD, which now has
extended its operations into the USA, and a management company, both of which
deal internationally with broadcasters. Our marketing division has considerable
experience in managing sponsorship for large companies which is becoming a more
significant element of funding programming.
The Group, however, lacks a core TV creation capability and will be seeking to
grow this area of the business. We continue to believe that as the business
becomes more talent-led, there will be increasing opportunities in this area.
In the sports industry, we continue to consolidate our position in motor sports
both in Europe and the USA. We represent talent and manage sponsorship
programmes for corporations on both sides of the Atlantic and act as global
consultants for some of the world's leading businesses. To date, we have moved
very cautiously in the expansion of our event business, which remains a service
provider, both organising events and providing signage at those events.
Sean Kelly
Chief Executive
16 March 2005
FINANCIAL REVIEW
The purpose of this review is to highlight matters of interest to shareholders
and to provide guidance on reasons for alterations in some of the key operating
areas of the business.
Group Profit and Loss Account
Turnover
There has been a rise in turnover on continuing operations, which has increased
7% to £67.8 million (2003: £63.5 million). Turnover was split between Europe
£21.8 million, North America £46.0 million and Asia £0.01 million.
Talent
Talent saw an 8% rise in turnover on continuing operations to £10.9 million
(2003: £10.1 million) on the back of a new client win in the United States and
increased client revenue in the UK.
Marketing
Marketing saw an increase in turnover of 5% to £50.3 million (2003: 48.1
million). This was a result of increased media buying within the Echo Group.
Television
Target Entertainment Ltd was sold in February 2005 and the turnover has
therefore been included in discontinued operations.
Events
Turnover in the Events division increased 32% to £6.6 million (2003: £5.0
million) on the back of new business won in 2004.
Cost of Sales
Cost of Sales in 2004 was £46.2 million (2003: £37.6 million). The increase is
mainly due to production costs incurred by Target Entertainment in 2004 as it
moved into production. The Events division saw an increase in cost of sales
resulting from the increase in turnover. Marketing saw an increase in turnover
related to media but at the same time media margins within Echo were squeezed.
Other Administrative Expenses
These have fallen 8% to £31.9 million (2003: £34.6 million). The largest
component is staff costs, which have fallen 6% to £22.8 million (2003: £24.2
million). The average number of employees was 503 (2003: 575).
Discontinued Operations
Losses on discontinued operations relate to Canadian sponsorships, Stellar
Financial Partners, Stellar Wealth, CSS Hong Kong and CSS Stellar Entertainment
which were disposed of at the half year amounting to losses of £1.2 million
(2003: £1.3 million). Target was sold in February 2005 with operational losses
of £0.8 million.
Amortisation
The charge for the year of £2.4 million (2003: £2.3 million) results from the
acquisition programme undertaken in the period since flotation. The group has
remaining goodwill of £37 million. Goodwill is amortised over periods of 5 to 20
years.
Taxation
The Group's tax charge was £0.3 million (2003: £0.3 million). The tax charge
relates predominantly to the Echo group of companies. As far as possible the
Group has taken steps to minimise its overall tax liability.
Dividend
As stated in the Chairman's Statement there will be no dividend for the year
ended 31 December 2004.
Earnings per Share
Unadjusted earnings per share on a basic and fully diluted basis shows a loss of
10.61p per share (2003: loss of 17.15p). The diluted loss per share is
equivalent to the basic loss per share as any dilutive effect would decrease the
net loss per share. Once the figure is adjusted for amortisation and
non-recurring items the fully diluted earnings per share is 2.84p (2003: 2.56p).
The basic adjusted earnings per share in 2004 is 3.06p (2003: 2.64p). This is
against the backdrop of substantial improvements made in the infrastructure of
the business during 2004.
Foreign Exchange
The Group's earnings have been impacted by the weakening of the US Dollar. The
average US Dollar rate in 2004 was $1.83 to the Pound (2003: $1.64). The US
Dollar rate at 31 December 2004 was $1.93 to the Pound (2003: $1.78).
Bank Debt
The Group's gross bank debt at 31 December 2004 was £5.4 million compared with
£6.6 million in 2003. During the year £3.0 million of borrowings were repaid.
Deferred consideration of £1.0m was also paid. This was financed through a
combination of restructured bank borrowings and cash from operations.
During the period the group restructured its bank's debt to align debt
repayments with the businesses cash flows. The group also re-mortgaged its
freehold property to secure a long term debt facility.
The sale of Target Entertainment Ltd in February 2005 realised £0.7million of
cash inflows which has since been used to pay down bank debt.
Operating Cash Flow
Cash flow from operating activities was £0.15 million (2003: £5.0 million) as
continued improvement was made in working capital.
Share Capital and Acquisitions
There were no acquisitions made during 2004.
During 2004 2,374,926 shares were issued at an average issue price of 192p, for
deferred consideration provided for in 2003.
No further significant deferred consideration has been accrued for in the 2004
financial statements.
Transition to International Financial Reporting Standards
CSS Stellar has established a working party to timetable IFRS implementation.
The working party is reviewing group accounting policies in order to assess the
changes required under IFRS. The 2004 accounts will also be reviewed to
understand and quantify the impact of IFRS adoption. Further, the financial
reporting system will be reviewed to ensure that it is sufficient to capture
IFRS data. The result of the above assignment by the working party will be the
production of the 2005 opening balance sheet.
The remainder of the financial information is explained in the notes to the
Financial Statements.
Kevin Rose
Group Finance Director
16 March 2005
CSS STELLAR PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 31 December 2004
Unaudited Audited
2004 2003
Notes £000 £000
Turnover
- Continuing operations 67,812 63,460
- Discontinued operations 10,032 9,456
Group Turnover 1 77,844 72,916
Cost of sales (46,215) (37,628)
Gross profit 31,629 35,288
Exceptional administrative expenses 2 - (167)
Amortisation of goodwill (2,438) (2,283)
Other administrative expenses (31,902) (34,557)
Administrative expenses - total (34,340) (37,007)
Operating loss
- Continuing operations (786) (404)
- Discontinued operations (1,925) (1,315)
1 (2,711) (1,719)
Exceptional loss on disposal of subsidiary
undertakings - (2,326)
(2,711) (4,045)
Interest receivable 112 176
Interest payable (404) (343)
Loss on ordinary activities before taxation 1 (3,003) (4,212)
Tax on loss on ordinary activities 3 (267) (252)
Loss on ordinary activities after taxation (3,270) (4,464)
Minority interests 331 (10)
Transferred from reserves (2,939) (4,474)
Loss per Ordinary share (pence) 4 P. p.
Basic (10.61) (17.15)
Diluted (10.61) (17.15)
Adjusted Earnings per Ordinary share (pence)
4
Basic 3.06 2.64
Diluted 2.84 2.56
£'000 £'000
CONSOLIDATED STATEMENT OF TOTAL
RECOGNISED GAINS AND LOSSES
Loss for the financial year (2,939) (4,474)
Unrealised surplus on revaluation of
investment properties 500 -
Translation adjustment on opening reserves 5 18
Total losses recognised since last annual report (2,434) (4,456)
CSS STELLAR PLC
CONSOLIDATED BALANCE SHEET
As at 31 December 2004
Unaudited Audited
2004 2003
Notes £000 £000 £000 £000
FIXED ASSETS
Intangible assets 5 36,690 39,775
Tangible assets 6 3,201 3,007
Investments 7 1,056 1,056
40,947 43,838
CURRENT ASSETS
Stocks and work in progress 173 252
Debtors 12,470 15,964
Cash at bank and in hand 1,220 4,803
13,863 21,019
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR (15,689) (23,646)
Net current liabilities (1,826) (2,627)
Total assets less current liabilities 39,121 41,211
CREDITORS: AMOUNTS FALLING
DUE AFTER MORE THAN ONE YEAR (1,723) (1,726)
Minority interests - 163
37,398 39,648
CAPITAL AND RESERVES
Called up share capital 8 14,452 13,265
Share premium 8 28,025 24,654
Shares to be issued 8 489 4,863
Revaluation reserve 654 171
Profit and loss account (6,222) (3,305)
Equity shareholders' funds 9 37,398 39,648
CSS STELLAR PLC
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2004
Unaudited Audited
2004 2003
Note £000 £000 £000 £000
Cash inflow from operating activities 10 148 5,023
Returns on investments and servicing of finance
Interest paid (392) (261)
Interest received 112 176
Interest element of finance lease payments (12) (82)
Net cash outflow from returns on (292) (167)
investments and servicing of finance
Taxation (35) (848)
Capital expenditure and financial investment
Purchase of tangible fixed assets (848) (1,028)
Purchase of intangible fixed assets (440) (104)
Sale of tangible fixed assets 170 128
Net cash outflow from capital
expenditure and financial investment (1,118) (1,004)
Acquisitions and disposals
Purchase of subsidiaries (970) (1,064)
Disposal of subsidiaries (151) (551)
Net cash outflow from acquisitions and disposals (1,121) (1,615)
Equity dividends paid - (258)
Net cash (outflow)/inflow before financing (2,418) 1,131
Financing
Receipts from borrowings 12 3,900 -
Repayment of borrowings 12 (3,048) (2,004)
Capital element of finance lease rentals 12 (75) (796)
Net cash inflow/(outflow) from financing 777 (2,800)
Decrease in cash 12 (1,641) (1,669)
CSS STELLAR PLC
NOTES TO THE FINANCIAL INFORMATION
Year Ended 31 December 2004
1. Analysis of Trading and Net Assets
Class of Business
Profit/(Loss)
before
Divisions Turnover Taxation Net Assets
2004 2003 2004 2003 2004 2003
£000 £000 £000 £000 £000 £000
Continuing operations
Talent Management 10,924 10,101 1,236 1,031 14,209 18,724
Marketing 50,321 48,133 920 1,945 21,359 19,160
Television - 256 - 44 - -
Events 6,567 4,970 687 435 1,830 1,417
Central costs (1) - - (1,191) (1,576) - -
67,812 63,460 1,652 1,879 37,398 39,301
Discontinued operations
Talent Management 229 1,752 (976) (123) - (20)
Marketing 93 519 (369) (173) - (116)
Television 9,710 4,618 (580) - - 483
Events - 2,567 - (1,019) - -
10,032 9,456 (1,925) (1,315) - 347
Goodwill amortisation (2,438) (2,283)
Operating loss (2,711) (1,719)
Net interest (292) (167)
Exceptional item - (2,326)
Group loss before taxation (3,003) (4,212)
Geographical Market
Loss before
Turnover Taxation Net Assets
2004 2003 2004 2003 2004 2003
£000 £000 £000 £000 £000 £000
Continuing operations
Europe 21,807 18,363 1,912 2,038 25,929 26,083
North America 45,993 45,044 1,028 1,455 11,860 13,148
Rest of the world 12 53 (97) (38) (391) 70
Central costs (1) - - (1,191) (1,576) - -
67,812 63,460 1,652 1,879 37,398 39,301
Discontinued operations
Europe 9,938 8,937 (1,658) (1,142) - 463
North America 48 356 (128) (27) - -
Rest of the world 46 163 (139) (146) - (116)
10,032 9,456 (1,925) (1,315) - 347
(1) Central costs have been separately analysed to enable a direct comparison of
the operating
performance of each division.
The origin and destination of turnover, profit before taxation and net assets
are not materially different.
Cost of sales, amounts written off goodwill and administrative expenses are
analysed between continuing and discontinued operations below:
Continuing Discontinued Continuing Discontinued
Operations Operations Total Operations Operations Total
2004 2004 2004 2003 2003 2003
£000 £000 £000 £000 £000 £000
Cost of sales 38,952 7,263 46,215 32,634 4,994 37,628
Exceptional
administration
expenses - - - 167 - 167
Amortisation of
goodwill 2,368 70 2,438 2,178 105 2,283
Other
administration
expenses 27,097 4,805 31,902 29,630 4,927 34,557
2. Exceptional administrative expenses
2004 2003
£000 £000
Provision for significant bad debts - 50
Cost of restructuring - 117
- 167
3. Tax on Loss on Ordinary Activities
Analysis of charge in year
Current tax
United Kingdom corporation tax 2 (17)
Adjustment in respect of prior year charge - 40
2 23
Overseas taxation 216 265
Adjustment in respect of prior year charge - -
218 288
Deferred Tax
United Kingdom
- current year 49 (55)
- prior year - -
Overseas - current year - 19
49 (36)
267 252
The tax charge assessed for the period is higher than the standard rate of
corporation tax in the UK (30%). The differences are explained below:
Tax charge reconciliation
Loss on ordinary activities before taxation (3,003) (4,212)
Loss on ordinary activities multiplied by the standard
rate of corporation tax (30%) (901) (1,264)
Goodwill amortisation 730 661
Capital allowances in excess of depreciation 9 35
Expenses not deductible for tax purposes 72 137
Higher tax rate on overseas earnings 61 27
Losses in overseas subsidiaries - 55
Losses carried forward 382 76
Adjustment to tax charge in respect of previous period - 40
Utilised losses (105) -
Loss on disposal of subsidiaries (65) 524
Deferred tax unprovided - (17)
Other timing differences 35 14
Tax charge on loss on ordinary activities 218 288
4. Earnings Per Share
Weighted Basic Adjusted
average per share per share
Earnings no. of shares amount amount
2004 £000 Shares Pence Pence
Attributable to ordinary shareholders:
Loss (2,939)
Amortisation of goodwill 2,438
Operating loss on discontinued 1,925
activities
Less: tax at 30% (577)
Adjusted earnings 847
(Loss) / earnings per share 27,692,271 (10.61) 3.06
Dilutive effect of securities
Options, warrants and shares to be issued 2,155,116
(Loss) / earnings per share 29,847,387 (10.61) 2.84
2003
Attributable to ordinary shareholders:
Loss (4,474)
Amortisation of goodwill 2,283
Exceptional loss on disposal 2,326
Exceptional administrative expenses 167
Operating loss on discontinued 1,620
activities
Less: tax at 30% (1,234)
Adjusted earnings 688
(Loss) / earnings per share 26,088,513 (17.15) 2.64
Dilutive effect of securities
Options, warrants and shares to be issued 806,422
(Loss) / earnings per share 26,894,935 (17.15) 2.56
5. Intangible Assets
Intellectual
property
Goodwill rights Total
£000 £000 £000
Cost:
At 1 January 2004 45,237 363 45,600
Additions 373 440 813
Disposals (1,086) (803) (1,889)
At 31 December 2004 44,524 - 44,524
Amortisation:
At 1 January 2004 5,517 308 5,825
Charge for the year 2,438 40 2,478
Disposals (121) (348) (469)
At 31 December 2004 7,834 - 7,834
Net book value at 31 December 2004 36,690 - 36,690
Net book value at 31 December 2003 39,720 55 39,775
6. Tangible Fixed Assets
Plant & Furniture
Freehold Motor event and
property vehicles equipment equipment Total
£000 £000 £000 £000 £000
The Group
Cost or valuation:
1 January 2004 530 816 326 5,972 7,644
Translation - - - (14) (14)
Revaluation 455 - - - 455
Additions - 131 148 622 901
Disposals - (438) - (339) (777)
At 31 December 2004 985 509 474 6,241 8,209
Accumulated depreciation:
1 January 2004 45 443 273 3,876 4,637
Translation - - - (1) (1)
Revaluation (45) - - - (45)
Charge for the year 32 81 38 669 820
Disposals - (238) - (165) (403)
At 31 December 2004 32 286 311 4,379 5,008
Net book value:
At 31 December 2004 953 223 163 1,862 3,201
At 31 December 2003 485 373 53 2,096 3,007
The freehold property was revalued to market value by Caxtons, Chartered
Surveyors.
7. Investments
£000
At 1 January and 31 December 2004 1,056
8. Called Up Share Capital
The following is the movement in shares, share capital and share premium during
in the year:
Date Shares Share Share Share
Price Capital Premium
No. £ £000 £000
At 1 January 2004 26,531,502 13,265 24,654
Acquisition of:
JRP Management Limited 25 May 113,636 0.88 57 43
The Sponsorship Consultancy 25 May 101,124 2.70 50 222
The Echo group of companies 29 June 498,088 2.40 249 946
The GEM Group (Europe) Limited 12 July 1,662,078 1.80 831 2,160
At 31 December 2004 28,906,428 14,452 28,025
31
1 January December
Shares to be issued 2004 Movements 2004
Issued during the year 4,863 (4,374) 489
9. Reconciliation of Movements in Shareholders' Funds
2004 2003
£000 £000
Loss for the financial year (2,939) (4,474)
Other recognised gains and losses relating to the year 505 18
New shares issued (including share premium) 500 -
Release of provision for shares to be issued (316) -
Shares to be issued - 2,828
Net decrease in equity shareholders' funds (2,250) (1,628)
Opening equity shareholders' funds 39,648 41,276
Closing equity shareholders' funds 37,398 39,648
10. Reconciliation of Operating Loss to Net Cash Inflow from Operating
Activities
Operating loss (2,711) (1,719)
Depreciation charge 820 1,442
Amortisation of intangible assets 2,478 2,485
Decrease/(increase) in stocks 79 (113)
Decrease in debtors 1,326 616
(Decrease)/increase in creditors (1,844) 2,312
Cash inflow from operating activities 148 5,023
11. Reconciliation of net cash flow to movement in net debt
Decrease in cash in period (1,641) (1,669)
Cash outflow from decrease in net debt and lease financing (777) 2,800
Net debt eliminated on disposal - 656
Change in net debt (2,418) 1,787
Inception of finance leases - (272)
(2,418) 1,515
Net debt brought forward (1,761) (3,276)
Net debt carried forward (4,179) (1,761)
12. Analysis of net debt
At 1 At 31
January December
2004 Cash Flow 2004
£000 £000 £000
Cash at bank 4,803 (3,583) 1,220
Overdrafts (3,269) 1,942 (1,327)
1,534 (1,641) (107)
Bank debt due after 1 year (500) (1,053) (1,553)
Bank debt due within 1 year (724) (1,559) (2,283)
Unsecured loan stock 2004 (70) 70 -
Guaranteed loan notes (1,690) 1,690 -
Finance leases (311) 75 (236)
Total (1,761) (2,418) (4,179)
13. Principal Accounting Policies
The principal accounting policies of the Group are set out in the Group's 2003
Annual Report and Financial Statements. These policies have remained unchanged.
14. Financial Information
The financial information set out in this preliminary announcement does not
constitute Statutory Accounts as defined in Section 240 of the Companies Act
1985. The summarised Balance Sheet at 31 December 2004 and the summarised
Profit and Loss Account, the summarised Cash Flow Statement and associated notes
for the year then ended have been extracted from the Group's unaudited Financial
Statements. Those Financial Statements have not yet been delivered to the
Registrar, nor have the auditors reported on them.
The financial information relating to the period ended 31 December 2003 is
extracted from the statutory accounts, which incorporated an unqualified audit
report and which has been filed with the Register of Companies.
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 19 minutes ago Mattioli Woods
- 53 minutes ago Morgan Advanced Materials
- 1 hour ago Capita
- 1 hour ago Judges Scientific
- 1 hour ago Me Group International