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West 175 Media Grp (WEP)

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Thursday 19 December, 2002

West 175 Media Grp

Interim Results

West 175 Media Group Inc
19 December 2002



19 December 2002

INTERIM RESULTS

The six months ended 30th September 2002 were a transitional period for West 175
Media Group Inc. ('West 175' or 'the Group'). David Montgomery was appointed
chairman of West 175 on 11th June 2002. Since then, the board has very
significantly cut cash burn and nearly completed its strategy of an orderly
withdrawal from operating outside Europe.


Six months to 30th September 2002

After all provisions and write-downs, West 175 made a loss after tax in the
first six months of US$2,726,777 (compared to a loss for the full year ended 31
March 2002 of US$16,963,989). The sale of companies in New Zealand and elsewhere
has resulted in non-recurring profits and losses, which together with losses
from those discontinued operations, have had a net adverse effect on the
results. The split of these losses across the Group was as follows:


Company                                         Activity and location                Loss from          Loss from
                                                                                    continuing         discontinued
                                                                                operations to 30th     operations/
                                                                                     Sept 2002        non-recurring
                                                                                                    profits/losses to
                                                                                                     30th  Sept 2002
                                                                                             US$000             US$000

West 175                               Parent company                                     (784,782)          (731,816)
West 175 Productions Inc.              TV Production  US                                  (188,942)
Gourmand Int. Ltd.                     World Cookbook Awards  Europe                                          (81,656)
West 175 Media NZ Ltd.                 NZ Parent company                                  (509,853)            197,374
                                       Broadcasting  NZ                                                      (849,201)
                                       Actrix/Connections - NZ ISP                        (190,381)            725,369
                                       Centurion GSM - Retail NZ                            (4,126)
                                       Central Park Interactive-Retail NZ                                    (131,381)
West Media Events Ltd.                 Event management  UK                                                  (182,036)
Other income/(expense)                                                                        4,654
                                                                                        (1,673,430)        (1,053,347)



During the six months to 30th September 2002 the Group's monthly cash burn has
been reduced from $265,000 per month to $60,000 per month, which is incurred in
the parent companies in the UK and New Zealand. The operating companies which
remain in the Group (West 175 Productions Inc., Actrix/Connections and Centurion
GSM) are now cash neutral. The average monthly number of employees in the Group
has been reduced from 211 at 31st March 2002 to 74.



Policy of the board

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, the ex-Chairman
and Chief Executive, as part of his severance package. The assets of the final
television station were sold in July 2002.

On 30th September 2002, West 175 completed the sale of the entire share capital
of West Media Events Limited and its subsidiaries and Gourmand International
Limited, effecting the disposal all of the group's trading operations in the UK
and Europe.

On 20th November 2002, West 175 completed the sale of its 75% interest in the
business and assets of Central Park Interactive in New Zealand.

The board continues to pursue the policy of disposing of West 175's legacy
businesses, further reducing the Group's liabilities and introducing cash into
the Group. It had been hoped to complete the disposal of West 175's businesses
and remaining assets by the end of this Calendar year, but it is now apparent
that this is unlikely be completed until the end of the financial year in March
2003.


Raising of new funds and appointment of professional advisers

The board engaged Ludgate Investments Limited ('Ludgate') who provided advice on
raising £1,185,000 (on 11th June 2002) and £314,750 (on 27th September 2002).
Both operations served to strengthen the Group's cash balances and helped to
fund its ongoing working capital requirements.

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 strengthened by the actions outlined above.
Loss making subsidiaries have been sold or closed or are in the process of being
sold. As the disposal process nears completion the Board is considering a
further capital raising to assist with working capital and to implement its
strategy to become a 'shell' company. West 175 is now seeking to identify
acquisition opportunities within the media sector across UK and Europe.



ENQUIRIES

West 175 Media Group Inc.

Paul Burton
Finance Director
020 7462 0632




WEST 175 MEDIA GROUP INC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 30th September 2002
 

                                                                                                             
                                                                    Unaudited      Unaudited         Audited 
                                                                  6 months to    6 months to    12 months to 
                                                                     30.09.02       30.09.01        31.03.02 
                                                                          US$            US$             US$ 

            TURNOVER                                               6,377,309      3,353,319      11,914,481  
            Cost of Sales                                          3,880,429      1,685,423       6,545,109  
            Gross profit                                           2,496,880      1,667,896       5,369,372  

            Other operating expenses (net)                         4,823,212      5,006,397      20,661,948  
            Exchange losses                                          361,817         97,227         262,884  

            OPERATING LOSS BEFORE PROGRAMMING AND                 (2,688,149)    (3,435,728)    (15,555,460) 
            DEVELOPMENT COSTS                                                                                
            Programming and development costs                          4,802        422,768       1,048,548  

            OPERATING LOSS                                        (2,692,951)    (3,858,496)    (16,604,008) 

            Share of operating profit / (losses) in associate         23,587         17,546        (170,924) 
            Share of operating loss in joint venture                       -       (160,966)        (45,203) 
            Interest receivable                                        1,881         59,128          92,560  
            Interest payable                                         (17,864)        (6,359)       (144,247) 

            LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION           (2,685,347)    (3,949,147)    (16,871,822) 

            Taxation                                                 (41,430)        (1,215)        (92,167) 

            LOSS ON ORDINARY ACTIVITIES AFTER TAXATION            (2,726,777)    (3,950,362)    (16,963,989) 
            Minority interests                                             -              -               -  
            LOSS ATTRIBUTABLE TO SHAREHOLDERS                     (2,726,777)    (3,950,362)    (16,963,989) 

            LOSS PER SHARE                                              0.12           0.18            0.78  


            STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES                                                   
                                                                                                                      
                                                                         US$             US$             US$ 
  Loss for the financial period                                   (2,726,777)     (3,950,362)    (16,963,989) 
  Currency translation difference on foreign
    currency net investment                                          (20,656)        218,231         892,964  
  Gain on disposal of interest in subsidiary to minority                   -               -               -  

  Total recognised gains and losses relating to the period        (2,747,433)     (3,732,131)    (16,071,025) 
  Prior year adjustment                                                    -               -               -  
  Total gains and losses recognised since the last annual report  (2,747,433)     (3,732,131)    (16,071,025) 


  WEST 175 MEDIA GROUP INC                                                                                            
  CONSOLIDATED BALANCE SHEET                                                                                          
  as at 30th September 2002                                                                                           
                                                                            Unaudited       Unaudited         Audited 
                                                                          6 months to     6 months to    12 months to 
                                                                             30.09.02        30.09.01        31.03.02 
                                                                                  US$             US$             US$ 
  FIXED ASSETS                                                                                                        
  Investments                                                                  2,291       1,831,124           2,215  
  Goodwill                                                                 1,080,159       6,530,782       2,241,053  
  Tangible Assets                                                          2,522,605       3,381,761       3,112,072  
  Investments in joint ventures - Share of gross assets                       29,890          46,558          27,302  
  Less: Share of gross liabilities                                           (29,888)       (535,476)        (27,300) 
                                                                           3,605,057      11,254,749       5,355,342  
  CURRENT ASSETS                                                                                                      
  Stocks                                                                     907,003           7,064         790,068  
  Debtors: amounts falling due within one year                             1,780,802       2,559,877       2,396,844  
  Debtors: amounts falling due after more than one year                      202,702       1,007,511               -  
  Cash at bank and in hand / (bank overdraft)                               (263,027)      2,626,503          57,426  
                                                                           2,627,480       6,200,955       3,244,338  
  CREDITORS: Amounts falling due within one year                           4,960,223       3,575,464       6,977,878  

  NET CURRENT ASSETS / (LIABILITIES)                                      (2,332,743)      2,625,491      (3,733,540) 

  TOTAL ASSETS LESS CURRENT LIABILITIES                                    1,272,314      13,880,240       1,621,802  

  CREDITORS: Amounts falling due after more than one year                  2,739,790         196,654         348,965  
  PROVISIONS FOR LIABILITIES AND CHARGES                                         355          61,173           5,013  
                                                                          (1,467,831)     13,622,413       1,267,824  

  CAPITAL AND RESERVES                                                                                                
  Called up share capital                                                 38,688,094      38,651,694      38,651,694  
  Profit and loss account                                                (40,115,608)    (25,029,281)    (37,368,175) 
  SHAREHOLDERS' FUNDS                                                     (1,427,514)     13,622,413       1,283,519  
  MINORITY INTERESTS                                                         (40,317)              -         (15,695) 
                                                                          (1,467,831)     13,622,413       1,267,824  

  RECONCILIATION OF MOVEMENT IN EQUITY SHAREHOLDERS' FUNDS                                                            

  Loss for the financial year                                             (2,726,777)     (3,950,362)    (16,963,989) 
  Common stock issued in the year                                             36,400         613,600         613,600  
                                                                          (2,690,377)     (3,336,762)    (16,350,389) 
  Other gains and losses relating to the year                                (20,656)        218,231         892,964  
  Net addition to shareholders' funds                                     (2,711,033)     (3,118,531)    (15,457,425) 
  Opening shareholders' funds                                              1,283,519      16,740,944      16,740,944  
  Closing shareholders' funds                                             (1,427,514)     13,622,413       1,283,519  


  WEST 175 MEDIA GROUP INC                                                                                            
  CONSOLIDATED STATEMENT OF CASH FLOWS                                                                                
  for the six months ended 30th September 2002                                                                        

                                                                            Unaudited       Unaudited         Audited 
                                                                          6 months to     6 months to    12 months to 
                                                                             30.09.02        30.09.01        31.03.02 
                                                                                  US$             US$             US$ 

  Cash (outflow) from operating activities                                (1,778,041)    (2,347,728)      (4,166,053) 

  Returns on investments and servicing of finance                            (15,983)         52,769         (51,687) 

  Taxation                                                                   (41,429)         (1,215)        (92,167) 

  Capital expenditure and financial investment                                     -        (438,760)     (1,571,479) 

  Acquisitions and disposals                                                (117,729)     (1,030,384)       (967,589) 

  CASH OUTFLOW BEFORE FINANCING                                           (1,953,182)     (3,765,318)     (6,848,975) 

  Financing                                                                2,289,032          10,973        (122,232) 

  INCREASE / (DECREASE) IN CASH IN THE PERIOD                                335,850      (3,754,345)     (6,971,207) 


  RECONCILIATION OF NET CASH TO MOVEMENT IN DEBT                                                                      
                                                                                  US$             US$             US$ 
  Increase / (decrease) in cash in the period                                335,850      (3,754,345)     (6,971,207) 
  Issue of loan stock                                                     (2,341,710)              -               -  
  Decrease in bank loans                                                     292,492               -               -  
  Payment of finance leases                                                  133,398          32,758               -  
  Cash flow from increase in debt and lease financing                       (290,461)              -        (308,642) 
  Movement in net debt in period                                          (1,870,431)     (3,721,587)     (7,279,849) 

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

  NET DEBT AT 30 SEPTEMBER 2002                                           (2,928,114)      2,500,579      (1,057,683) 
                                                                                                            


            WEST 175 MEDIA GROUP INC                                                                        
            CONSOLIDATED ACCOUNTS                                                                           
            for the six months ended 30th September 2002                                                    

            RECONCILIATION OF OPERATING LOSS TO NET CASH        Unaudited       Unaudited          Audited  
            OUTFLOW FROM OPERATING ACTIVITIES                 6 months to     6 months to     12 months to  
                                                                 30.09.02        30.09.01         31.03.02  
                                                                       US$             US$              US$ 

            Operating loss                                     (2,692,951)     (3,858,496)     (16,604,008) 
            Depreciation and amortisation                         901,479         842,355        9,312,068  
            Foreign exchange (gain) / loss                       (171,888)        228,419          356,401  
            (Increase) / decrease in stocks                      (104,141)         72,700         (583,315) 
            (Increase) / decrease in debtors                     (110,837)      1,741,815        3,253,879  
            (Loss) / gain on disposal of fixed assets             (23,587)         17,546           83,217  
            Increase / (decrease) in creditors                    423,884      (1,392,067)          15,705  

            Net cash flow from operating activities            (1,778,041)     (2,347,728)      (4,166,053) 


The financial information contained in this report does not constitute statutory
accounts for the Group for the relevant periods.  The financial information has
not been audited or reviewed by the Company's auditors.  The comparative figures
for the financial year ended 31 March 2002 are based on the company's statutory
accounts for the financial year on which the auditors gave an opinion with a
fundamental uncertainty.  The interim financial information has been prepared on
the basis of accounting policies adopted for the year ended 31 March 2002 as set
out in the group statutory accounts.




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