Interim Results

Premier Management Holdings PLC 20 January 2004 For release at 07.00 on 20 January 2004 PREMIER MANAGEMENT HOLDINGS PLC Interim results for the six months ended 31 October 2003 Premier Management Holdings plc (the 'Company'), the AIM-listed football agency presents interim results for the six months ended 31 October 2003 for itself and its subsidiaries (together, the 'Group'). Key points • Like-for like turnover steady producing an operating profit of £84,000 (2002: £521,000 loss). • Normal operating costs down 16 per cent. as a result of successful cost reduction programme. • Reduced pre-tax loss for the period of £92,000 (2002: £735,000) after allowing for net finance costs of Euro Loan Stock of £69,000 (2002: £348,000). • Favourable exchange rate movements lessened impact of Euro Loan Stock in current year. • Promising levels of activity abroad and in Nationwide league with more deals taking place outside of Premiership transfer windows. • Although January 2004 transfer window has started slowly across the whole market, the Group expects to improve on the turnover achieved last year during the transfer window. • With European Union impact on new Sky broadcasting contract minimised and Nationwide League player contacts signed under ITV Digital contract unwinding, Group is well positioned to benefit from improvements in the market-place. • Agreement reached in principle to settle the Euro denominated Loan Stock on more favourable terms, subject to funding of first settlement payment. • Year-end to be changed to 31 January 2004, in-line with transfer windows. Barry Gold, Chairman, said today: 'We are confident that the proposed restructuring of the Loan Stock will allow the Group to trade profitably in the future, even if levels of business remain similar to those being experienced at present. An increasing number of deals now originate or complete abroad. With our lower cost base in England, and offices and associations in a variety of locations abroad, we are well positioned to meet the demand to supply players to clubs both in this country and abroad.' For further enquiries contact: Barry Gold (Chairman - Premier Management Holdings plc) tel: 07768 948 928 Chairman's statement I am pleased to report results for the six months ended 31 October 2003 which show the benefits of the reorganisation of the Group that I referred to in my statement, which accompanied the accounts for the year ended 30 April 2003. Whilst our market remains testing, we managed to show for the first period for some time an operating profit of £84,000 (2002: £521,000 loss) on reduced turnover of £932,000 (2002: £1,565,000). However, as turnover for the corresponding period of last year included £563,000 of income from the realisation of investments in players, fees from football representation were only down slightly on the previous period. Operating costs were down 13 per cent. to £547,000 (2002: £632,000), reflecting the cost-cutting measures completed during the second half of last year., resulting in a reduced loss before taxation of of £92,000 (2002: £735,000). Of this loss £69,000 was attributable to the Euro denominated convertible loan stock (2002: £348,000), despite favourable exchange rate movements over the period which reduced its impact on the Group. Despite the lack of activity generally in England during the 2003 summer transfer window, our offices abroad performed well as we did a number of transactions from our offices in Istanbul, Budapest and Eindhoven. We were also involved in the cross border moves of the Nigerian International Isaac Okoronkwo to Wolves and the Brazilian International Jardel to Bolton. In the Nationwide League, our principal area of activity, we completed several transfers in the summer window as well as several more between the Premier League's transfer windows during Autumn 2003. Last year I reported that there were very few deals between the transfer windows and whilst there has only been a small improvement across the market generally, we have been pleased to improve on last year's performance. Not only have we been again involved in two of the largest deals, but also this year in several smaller deals. The 2004 January transfer window has started slowly, probably due to the large number of games in the first half of the month. Nevertheless we have been pleased to conclude deals both abroad and cross border from England as well as several further deals within England. We expect that the pace of transactions in the second half of the month will increase as the number of games reduce and we expect the Group to exceed the turnover achieved in the corresponding window of 2003. The football market remains testing and some uncertainties remain. The European Commission objections to the proposed new Sky broadcasting deal appear to have been settled with minimal changes to the package. In addition this summer the three-year player contracts signed on the back of the ITV Digital deal will unwind and this should stabilise our traditional market-place in the Nationwide League. An increasing number of deals now originate or complete abroad. With our lower cost base in England, and offices and associations in a variety of locations abroad, we are well positioned to meet the demand to supply players to clubs both in this country and abroad. The Euro denominated Convertible Loan Stock has been a significant financial cost to the Group over the past eighteen months. We are obliged to repay the principal amount of eight million Euros in August 2004 together with three further quarterly interest payments between now and then. I am pleased to report that we have now reached an agreement in principle to pay in full and final settlement Euros 600,000 in February 2004 and a further Euros 3 million over the next 14 years without interest. We are currently exploring proposals to fund the first settlement payment and are confident that the proposed restructuring of the Loan Stock will allow the Group to trade profitably in the future, even if levels of business remain similar to those being experience at present. In view of the impact on the football market generally of the transfer windows, your board has decided to align the Company's year end with the transfer windows by changing it to 31 January. This will take effect immediately so that the next set of results to be announced and included in the Company's annual report will be for the nine months ended 31 January 2004. Barry Gold Chairman 20 January 2004 Consolidated Profit and Loss Account For the six months ended 31 October 2003 Six months to Six months to Year to 31 October 31 October 30 April 2003 2002 2003 Unaudited Unaudited Audited £000 £000 £000 Turnover 932 1,565 2,136 Cost of sales (334) (685) (1,100) Exceptional impairment of investment in footballers - - (1,135) ---------- ---------- ------- Gross profit/(loss) 598 880 (99) ---------- ---------- ------- Exceptional exchange gain on convertible loan stock 124 - - Exceptional administration expenses - (557) (1,867) Amortisation on goodwill (91) (212) (181) Administration expenses (547) (632) (1,546) ---------- ---------- ------- (514) (1,401) (3,594) ---------- ---------- ------- Operating profit/(loss) 84 (521) (3,693) ---------- ---------- ------- Interest received - 10 27 Interest paid (77) (125) (243) Amortisation of finance costs (99) (99) (198) ---------- ---------- ------- (176) (214) (414) ---------- ---------- ------- Loss on ordinary activities before taxation (92) (735) (4,107) Taxation - - 209 ---------- ---------- ------- Loss on ordinary activities after taxation (92) (735) (3,898) Amortisation of finance costs transferred to share premium 99 99 198 ---------- ---------- ------- Profit/(loss) attributable to shareholders 7 (636) (3,700) ========== ========== ======= Earnings/(loss) per share Pence Pence Pence Basic loss per ordinary share (0.38) (3.01) (15.52) Adjusted for amortisation of finance costs 0.03 (1.78) (4.73) ========== ========== ======= Continuing operations All amounts are derived from continuing operations Total recognised gains and losses There are no recognised gains or losses other than profits/(losses in each period. Consolidated Balance sheet As at 31 October 2003 As at As at As at 31 31 30 April October October 2003 2002 2003 Unaudited Unaudited Audited £000 £000 £000 Fixed asset Intangible assets 3,208 3,941 3,299 Tangible assets 90 171 120 Investments 211 2,628 211 ---------- ---------- ------- 3,509 6,740 3,630 ---------- ---------- ------- Current assets Debtors 1,707 2,833 1,497 Current asset investments 1,169 - 1,342 Cash and bank 164 361 251 ---------- ---------- ------- 3,040 3,194 3,090 ---------- ---------- ------- Creditors: (761) (1,710) (781) amounts falling due within one year ---------- ---------- ------- Net current assets 2,279 1,484 2,309 ---------- ---------- ------- Total assets less current liabilities 5,788 8,224 5,939 ---------- ---------- ------- Creditors: (6,348) (5,629) (6,407) amounts falling due after more than one year ---------- ---------- ------- Total assets less liabilities (560) 2,595 (468) ========== ========== ======= Capital and reserves Share capital 269 244 269 Share premium 2,646 2,769 2,745 Retained (losses)/profits (3,475) (418) (3,482) ---------- ---------- ------- (560) 2,595 (468) ========== ========== ======= Reconciliation of Movements in Shareholders' Funds For the six months ended 31 October 2003 Six months to Six months to Year to 31 October 31 October 30 April 2003 2002 2003 Unaudited Unaudited Audited £000 £000 £000 Opening shareholders' funds (468) 3,330 3,330 Proceeds from shares issued - - 100 (Loss)/Profit for the period (92) (735) (3,898) ---------- ---------- ------- Closing shareholders' funds (560) 2,595 (468) ========== ========== ======= Consolidated Cash Flow statement For the six months ended 31 October 2003 Six months Six months Year to to to 31 October 31 October 30 April 2003 2002 2003 Unaudited Unaudited Audited £000 £000 £000 Net cash movement on operating activities 18 (541) (153) ---------- ---------- ------- Return on investments and servicing of finance Interest received - 10 27 Interest payable (77) (125) (243) ---------- ---------- ------- (77) (115) (216) ---------- ---------- ------- Taxation - - (6) ---------- ---------- ------- Capital expenditure Payments to acquire intangible assets - (225) - Receipts from disposal of intangible assets 20 - 15 Payments to acquire tangible assets (4) (8) (13) Payments to acquire investments - (102) (175) Receipt on disposal of investments - 563 26 ---------- ---------- ------- 16 228 (147) ---------- ---------- ------- Acquisitions and disposals Payments to acquire subsidiary undertakings - (199) (33) ---------- ---------- ------- Net cash outflow before management of liquid resources and financing (43) (627) (555) Management of liquid resources Short term deposits - 936 936 Financing Costs of loan stock issued - (20) - Capital element of hire purchase contracts (12) (10) (41) Purchase of own shares - (102) - Payment of deferred consideration (25) (175) (421) ---------- ---------- ------- (Decrease)/increase in cash in the period (80) 2 (81) ========== ========== ======= Notes to the interim accounts For the six months ended 31 October 2003 1. Basis of preparation The results for the six months ended 31 October 2003 are unaudited and have not been reviewed by the auditors. They have been prepared on accounting bases and policies that are consistent with those used in the preparation of the audited financial statements of the company for the year ended 30 April 2003. The financial statements contained in this report do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The results for the year ended 30 April 2003 were reported on by the Auditors and received an unqualified audit report. Full accounts for the year ended 30 April 2003 have been delivered to the Registrar of Companies. 2. Dividends No dividend is proposed for the period ended 31 October 2003 3. Earnings per share The calculation of the basic loss per share is based on the loss after tax of £102,000 (2002: £735,000) and on 26,933,333 ordinary shares (2002: 24,433,333), being the weighted average number of ordinary shares in issue during the period. The calculation of earnings per share adjusted for amortisation is based on the basic loss per share adjusted for the amortisation of finance costs and the amortisation of intangible assets. There is no dilutive effect of options due to the fair value of the shares during the period being less than the exercisable price of those options and the potential dilution on conversion of the convertible loan stock would decrease the net loss and is not disclosed in accordance with Financial Reporting Standard No. 14. 4. Investments Fixed asset investments are stated at cost less provision for diminution in value. The company invests in the future value of players' transfer fees and investments in footballers (classified as current asset investments) represent monies provided to clubs to finance transfers of players. An impairment review is carried out on the carrying value of the investment at the end of each accounting period. 5. Interim statement The interim statement will be posted to shareholders during January 2004. Copies of the interim statement may be obtained from the company by writing to the Company Secretary at 11 Central House, Ongar, Essex, CM5 9AA. ENDS This information is provided by RNS The company news service from the London Stock Exchange

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