Information  X 
Enter a valid email address

West 175 Media Grp (WEP)

  Print      Mail a friend

Friday 19 November, 2004

West 175 Media Grp

Interim Results

West 175 Media Group Inc
19 November 2004




                           WEST 175 MEDIA GROUP INC.

                                 Interim Report
                            for the six months ended
                               30 September 2004



Chairman's Statement


The Group's operating loss for the six months ended 30 September 2004 totalled
£49,000 (year ended 31 March 2004: £312,000), reflecting the substantial
reduction in annual operating expenses. The Company Voluntary Arrangement ('CVA
') gave rise to a non-recurring credit of £1,625,000, following the cancellation
of most of the amount owing to creditors and the holders of the Company's loan
notes. As a result of this credit, the Group profit before taxation for the half
year amounted to £1,580,000 (year ended 31 March 2004: loss of £391,000) and
earnings per share in the six months were 1.79 pence (year ended 31 March 2004:
loss of 1.72 pence).


The Company, which disposed of its last trading subsidiary in March 2003,
continued as a non-trading shell in the six months ended 30 September 2004.
Neither the Company nor any subsidiary traded and no turnover was recorded.


Far the most significant event in the six months was the CVA, as fully described
in the several documents sent to shareholders, holders of loan notes and
creditors in documents dated 14 May 2004. On 7 July 2004, the Company announced
that the CVA of the Company had been successfully completed.


Under the terms of the CVA, creditors could elect to receive either a cash
payment of 10 pence per each £1 of their debt or 25 pence per £1 of their debt
in new shares of the Company (each a 'New West Share') issued at 1.5 pence per
New West Share. In order to finance and implement the CVA, new equity funds of
£65,000 ('the CVA Funds') were raised. In addition, and conditional on the
completion of the CVA, further new equity funds of £450,000 (before expenses)
were raised by the issue of 90,000,000 New West Shares at a price of 0.5 pence
per New West Share. Following completion of the CVA, the issued share capital of
the Company was increased to 161,957,470 West Shares, all of which were restored
to dealings on AIM on 7 July 2004.


In financial terms, the balance sheet of the Company has been transformed by the
CVA. The balance sheet as at 31 March 2004, which has been restated to convert
all amounts from US dollars into pounds sterling, recorded net liabilities of
£2,220,000. The CVA created a benefit of £1,625,000, which was credited to the
profit and loss account: taken together with the issuance of New West Shares for
cash, the balance sheet as at 30 September 2004 recorded net assets of £311,000,
of which cash balances amounted to £292,000 and debtors of £19,000.


The Directors have decided to put the figures into pounds sterling, as the CVA
was conducted in that currency.


In summary, the Directors have now achieved their objective of creating a cash
shell without any known liabilities from before the CVA, and at a time when
prospects for such companies have improved. The Directors are reviewing suitable
acquisitions for the Company and hope to report on progress before the Company's
financial year end, 31 March 2005.

David Montgomery
Chairman
19 November 2004


                       Consolidated Profit and Loss Account

                    For the six months ended 30 September 2004


                                                   Notes     Six months ended     Year  ended
                                                            30 September 2004       31 March
                                                                                        2004
                                                                  £'000              £'000
                                                               (unaudited)         (restated)              
                                                               
Turnover                                                                     -                  -

Cost of sales                                                                -                  -

Gross profit                                                                 -                  -

Other operating expenses (net)                                              49                312

Group operating loss                                                      (49)              (312)

Non-recurring credit arising
on the CVA                                                               1,625                  -
                                                                         
                                                                         1,576              (312)


Interest payable                                                             -               (79)

Interest receivable                                                          4                  -

Profit / (loss) before taxation                                          1,580              (391)

Taxation                                                                     -                  -

Profit / (loss) for the period                                           1,580              (391)

Earnings per share (pence)                                1               1.79             (1.72)


                                    Consolidated Balance Sheet

                                      as at 30 September 2004


                                                                   30 September 2004      31 March
                                                              Note       £'000              2004
                                                                      (unaudited)           £'000
                                                                                         (restated)
Fixed assets

Tangible assets                                                                     -                 -
                                                                                    -                 -
Current assets

Debtors:  amounts falling due within one year                                      19                 -

Cash at bank and in hand                                                          292                 5

                                                                                  311                 5

Creditors:  amounts falling due within one year                                     -               605


Net current (liabilities)/assets                                                  311             (600)

Total assets less current liabilities                                             311             (600)


Creditors:  amounts falling due after
   more than one year                                                               -           (1,620)

                                                                                  311           (2,220)
Capital and reserves

Called up share capital                                                        22,001            21,051

Profit and loss account                                                      (21,690)          (23,271)

Shareholders' funds                                                               311           (2,220)


Consolidated Cash Flow Statement

for the six month period to 30 September 2004

                                                               Six months ended     Year  ended
                                                               30 September 2004
                                                                                     31 March
                                                                     £'000
                                                                                       2004
                                                                  (unaudited)
                                                                                       £'000

                                                                                    (restated)

Cash flow from operating activities                                        (232)                 2

Returns on investments and servicing of finance

 Interest received                                                             4                 0


Cash flow before financing                                                 (228)                 2


Financing

 Issue of shares                                                             515                 -


Increase/(decrease) in cash                                                  287                 2


Reconciliation of operating loss to operating cash flow


Operating loss                                                              (49)              (84)


Foreign exchange movement                                                      -              (29)

Expenses paid in shares                                                       15                 -

Credit arising from CVA                                                    1,625                 -

Movement in debtors                                                         (19)                35

Movement in creditors                                                    (1,804)                80


                                                                           (232)               (2)

Notes to the Interim Statements
for the six month period to 30 September 2004


1.      The calculations of earnings per share is based on the profit after tax
of £1,580,251 and on the number of shares in issue, being the adjusted weighted
average number of shares in issue during the period of 88,159,323.



2.      This Interim Statement for the six months ended 30 September 2004 is
unaudited and was approved by the Directors on 19 November 2004. The financial
information set out above does not constitute statutory accounts within the
meaning of Section 240 of the Companies Act 1985, as if this Act applied to the
Company. The information given as comparative figures for the financial year
ended 31 March 2004 was extracted from the Group's statutory accounts for that
financial year. Statutory accounts for that financial year have been reported on
by the Group's auditors.



3.      The accounting policies remain as stated in the Annual Report for the
year ended 31 March 2004.


4.      This Interim Statement is being sent by post to all registered
shareholders. Additional copies are available from the Company Secretary at 25
Watling Street, London, London EC4M 9BR.



Directors and Advisers

Directors

David Montgomery, chairman & chief executive

Charles Sebag-Montefiore FCA, non-executive

John Gunn, non-executive

Secretary


Ludgate Investments Limited


Registered Office                                                        Nominated brokers and advisers

CT Corporation System                                                          Numis Securities Limited

818 West Seventh Street                                                                 Cheapside House

Los Angeles                                                                               138 Cheapside

California 90017                                                                        London EC2V 6LH

USA
Registered number                                                                        Legal advisers

1465706                                                                                     Withers LLP

                                                                                          16 Old Bailey

                                                                                        London EC4M 7EG

Auditors                                                                                     Registrars


Rees Pollock                                                                             Capita IRG Plc

35 New Bridge Street                                                                       Bourne House

London EC4V 6BW                                                                       34 Beckenham Road

                                                                                              Beckenham

                                                                                           Kent BR3 4TU

Principal bankers                                                         Address for UK correspondence

Clydesdale Bank Plc                                                                           2nd Floor

91 Gresham Street                                                                     25 Watling Street

London EC2V 7BL                                                                         London EC4M 9BR


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