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West 175 Media Grp (WEP)

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Friday 27 September, 2002

West 175 Media Grp

Final Results

West 175 Media Group Inc
27 September 2002

For immediate release

Chairman's Statement

Soon after its financial year end of 31st March 2002, some fundamental changes
took place within West 175 Media Group Inc. ('West 175' or 'the Group'). This
statement therefore deals first with a brief review of the old financial year
and secondly with events since the year end. 

Year ended 31st March 2002 
After all provisions and write-downs, West 175 made a loss after tax of 
US$16,963,989 (2001 - US$7,619,208). The split of these losses across the Group
was as follows: 

  Company                      Activity                                Loss after taxation        Loss after taxation 
                                                                      12 months to 31 March      12 months to 31 March
                                                                                      2002                       2001 
                                                                                    US$000                     US$000 

  West 175                     Parent company                                      (9,477)                    (2,607) 
  West 175 Productions Inc.    TV Production - US                                    (770)                      (145) 
  Gourmand Int. Ltd.           World Cookbook Awards - Europe                        (707)                          - 
  West 175 Media NZ Ltd.       Broadcasting/Retailing - NZ                         (6,082)                    (4,391) 
  West Media Events Ltd.       Event management - UK                                 (240)                        260 
  West Media Events Inc.       Event management - US                                     -                      (421) 
  Other income/(expense)                                                               312                      (315) 
                                                                                  (16,964)                    (7,619) 

The loss of US$9,477,000 (2001-US$2,607,000) incurred by the parent company
includes a write down of US$6,337,000 (2001 - US$nil) from the value of
investments and a provision of US$994,000 (2001 - US$nil) against the non-
repayment of loans. The New Zealand companies incurred a loss of US$6,082,000
(2001-US$4,391,000), including a charge of US$2,893,000 (2001- US$1,673,720) for
depreciation, amortisation and the write down of investments. 

Board changes after 31st March 2002  
On 30th May 2002, West 175 announced that John McEwen had agreed to resign as
chairman and chief executive of West 175 and from all other offices within the
West 175 group of companies. On 11th June 2002, West 175 further announced that
I had been appointed chairman of West 175, together with the appointment of John
Gunn to the board as non-executive director and the resignation of Douglas
Neistat. I was chief executive officer of Mirror Group plc between 1992 and 1999
and oversaw its reconstruction during this period. John Gunn was previously a
non-executive director of West 175 between April 1999 and December 2000. 

Fund raising of 11th June 2002  
On 11th June 2002, West 175 also announced the immediate injection of £1,185,000
in the form of loan notes, which, subject to shareholder approval for the
necessary increase in authorised share capital, would become convertible into
new common shares of West 175. The increase in share capital was duly approved
at a Special Meeting of West 175 held on 31st July 2002. These funds
strengthened the balance sheet and helped to fund its on-going working capital

Fund raising of 27th September 2002 and repayment of debenture 
On 27th September 2002, West 175 announced a further small fund raising of
£314,750 in the form of Convertible Loan Notes. The chief purpose of this fund
raising was to help finance the balance repayable of a loan of NZ$1,350,000
(equivalent to approximately £425,000) with a debenture attached, provided by
Film Investment Corporation of New Zealand No. 2 Limited. NZ$497,000 (£150,000)
of this loan was repaid on 16th September, 2002. The debenture provided the
issuer with security over the assets of West 175 Media (NZ) Limited, the holding
company of all the New Zealand operations of West 175. Repayment of the loan and
the release from the debenture gives the board full flexibility to realise its
plans for the remaining businesses in New Zealand. 

Policy of new board 
The new board of West 175 intends first to tighten the present diverse regional
focus of the business and secondly to seek to strengthen and expand into new
media interests within the UK and Europe.  

On 5th July 2002, West 175 completed the sale of two of its three television
stations in New Zealand. The radio station, Canterbury on Air, was closed with
effect from 31st May 2002 and Ninox 175 was sold to John McEwen as part of his
severance package. The effect of this action was to reduce substantially and
with immediate effect the cash burn in New Zealand. 

The board continues to actively pursue this policy and is considering options to
dispose of the Group's remaining businesses. The disposal programme is expected
to have been completed by the end of 2002, resulting in positive net proceeds
for West 175.  

Professional advisers 
On 6th June the board engaged Ludgate Investment Advisers Limited ('Ludgate')
who provided advice on raising the two separate amounts of £1,185,000 and
£314,750 referred to above and Ludgate continues to provide ongoing corporate
finance advice to West 175. On 31st July, 2002 West 175 was pleased to announce
the appointment of Numis Securities Ltd as Nominated Adviser and Broker.

Future prospects 
The outlook for West 175 has been considerably strengthened by the actions
outlined above. Loss making subsidiaries are either being sold or have been sold
or closed. The balance sheet has been strengthened by the new funds raised. The
board expects the cash resources to increase as and when certain disposals
(currently under discussion) take place and are actively considering a further
capital raising to assist with working capital and the implementation of the new
policies of the board. West 175 will then implement a strategy to become an
investment company where it will focus on the development of new media interests
within the UK and Europe.  



West 175 Media Group Inc. 

Paul Burton 
Finance Director 

020 8398 7175  

  Consolidated Profit and Loss Account                                                                                
  for the year ended 31 March 2002                                                                                    
                                                                                         Unaudited         Unaudited  
                                                                                     31 March 2002     31 March 2001  
                                                                                               US$               US$  
  Continuing                                                                             5,911,452         8,699,529  
  Acquisitions                                                                           6,220,589                 -  
  Less: Share of joint venture turnover                                                   (217,560)                -  

  Group turnover                                                                        11,914,481         8,699,529  
  Cost of sales                                                                          6,545,109         3,914,574  

  Gross profit                                                                           5,369,372         4,784,955  
  Other operating expenses (net)                                                        20,661,948        10,063,003  
  Exchange losses                                                                          262,884           329,127  

  Operating loss before programming and development costs                              (15,555,460)       (5,607,175) 
  Programming and development costs                                                      1,048,548         1,933,905  
  Group operating loss                                                                 (16,604,008)       (7,541,080) 
  Share of operating profit/(loss) in joint venture                                       (170,924)         (315,041) 
  Share of operating (loss)/profit in associate                                            (45,203)           19,935  
  Interest payable - group                                                                (125,582)         (110,427) 
  Interest payable - joint venture                                                         (18,665)                -  
  Interest receivable                                                                       92,560           383,745  

  Loss on ordinary activities before taxation                                          (16,871,822)       (7,562,868) 
  Taxation                                                                                  92,167            56,340  

  Loss on ordinary activities after taxation                                           (16,963,989)       (7,619,208) 
  Minority interests                                                                             -                 -  

  Loss for the year attributable to shareholders                                       (16,963,989)       (7,619,208) 

  Loss per share                                                                             (0.78)            (0.43) 

  Statement of total recognised gains and losses                                                                      

                                                                                              2002              2001  
                                                                                               US$               US$  

  Loss for the financial year                                                          (16,963,989)       (7,619,208) 
  Currency translation difference on foreign currency net investment                       892,964        (1,046,759) 

  Total recognised gains and losses relating to the year                               (16,071,025)       (8,665,967) 

  Consolidated Balance Sheet                                                                                          
  as at 31 March 2002                                                                                                 
                                                                                         Unaudited         Unaudited  
                                                                                              2002              2001  
                                                                                               US$               US$  
  Fixed assets                                                                                                        
  Goodwill                                                                               2,241,053         6,421,433  
  Tangible assets                                                                        3,112,072         3,435,303  
  Investments                                                                                2,215         1,236,080  
  Investments in joint ventures                                                                                       
  Share of gross assets                                                                     27,302            52,894  
  Less: Share of gross liabilities                                                         (27,300)         (367,864) 
                                                                                         5,355,342        10,777,846  
  Current assets                                                                                                      
  Stocks                                                                                   790,068            79,764  
  Debtors: amounts falling due within one year                                           2,396,844         4,592,601  
  Debtors: amounts falling due after more than one year                                          -           736,118  
  Cash at bank and in hand                                                                  57,426         6,372,330  
                                                                                         3,244,338        11,780,813  
  Creditors: amounts falling due within one year                                         6,977,878         5,602,752  

  Net current (liabilities)/assets                                                      (3,733,540)        6,178,061  

  Total assets less current liabilities                                                  1,621,802        16,955,907  

  Creditors: amounts falling due after more than one year                                  348,965           153,790  
  Provisions for liabilities and charges                                                     5,013            61,173  
                                                                                         1,267,824        16,740,944  
  Capital and reserves                                                                                                
  Called up share capital                                                               38,651,694        38,038,094  
  Profit and loss account                                                              (37,368,175)      (21,297,150) 

  Shareholders' funds                                                                    1,283,519        16,740,944  
  Minority interests                                                                       (15,695)                -  
                                                                                          1,267,824         16,740,944  

  Consolidated Cash Flow Statement                                                                                    
  for the year ended 31 March 2002                                                                                    
                                                                                         Unaudited         Unaudited  
                                                                                               2002              2001 
                                                                                               US$               US$  

  Cash flow from operating activities                                                   (4,166,053)      (10,581,591) 
  Returns on investments and servicing of finance                                          (51,687)          273,318  
  Taxation                                                                                 (92,167)          (56,340) 
  Capital expenditure and financial investment                                          (1,571,479)       (2,692,409) 
  Acquisitions and disposals                                                              (967,589)       (1,020,984) 

  Cash outflow before financing                                                         (6,848,975)      (14,078,006) 
  Financing                                                                               (122,232)       20,778,726  

  Increase/(decrease) in cash in the year                                               (6,971,207)        6,700,720  

  Reconciliation of net cash flow to movement in debt                                                                 
                                                                                               2002              2001 
                                                                                               US$               US$  

  (Decrease)/increase in cash in the year                                               (6,971,207)        6,700,720  
  Cash (outflow)/inflow from (increase)/decrease in debt and lease                                                    
  financing                                                                               (308,642)          361,024  

  Change in net debt resulting from cash flows                                          (7,279,849)        7,061,744  
  Conversion of loan stock                                                                       -         2,630,522  

  Movement in net debt in year                                                          (7,279,849)        9,692,266  
  Net debt at 1 April 2001                                                               6,222,166        (3,470,100) 

  Net debt at 31 March 2002                                                             (1,057,683)        6,222,166  

  Reconciliation of operating loss to net cash outflow from operating activities  
                                                                                               2002              2001 
                                                                                               US$               US$  

  Operating loss                                                                       (16,604,008)       (7,541,080) 
  Depreciation and amortisation                                                          9,312,068         1,295,125  
  Foreign exchange movement                                                                356,401          (870,891) 
  Decrease / (increase) in stocks                                                         (583,315)          214,258  
  Decrease / (increase) in debtors                                                       3,253,879          (817,646) 
  Loss on disposal of fixed assets                                                          83,217               897  
  (Decrease) / increase in creditors                                                        15,705        (2,862,254) 

  Net cash flow from operating activities                                               (4,166,053)      (10,581,591) 

  Nature of financial information   
  The financial information set out above does not constitute the Company's                                           
  statutory accounts for the year ended 31 March 2002 or for the year ended 31                                        
  March 2001. The financial information for 2002 is unaudited and the 2001                                            
  information is derived from the statutory accounts for that period. The                                             
  report of the Directors and the Accounts of the Company for the year ended 31                                       
  March 2002 will be presented at the Annual General meeting on 12 November 2002                                      
  together with the report of the Auditors. The auditors have reported on the                                         
  2001 accounts, their report was unqualified and did not contain a statement                                         
  under section 237(2) or (3) of the Companies Act 1985.                                                              

  Accounting Policies                                                                                                 

  The financial information set out above has been prepared under generally                                           
  accepted accounting practices in the UK. The same accounting policies have                                          
  been used as for the year ended 31 March 2001.                                                                      

                      This information is provided by RNS
            The company news service from the London Stock Exchange