Interim Results
20 Januar 2004 - 8:00AM
UK Regulatory
RNS Number:4042U
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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