RNS Number:5277Z
Galleon Holdings PLC
05 August 2002
Preliminary Results for the year ended 31 March 2002
GALLEON HOLDINGS PLC
Chairman's Statement
Introduction
In December 2001, The Galleon Group plc completed its reverse takeover of
Andaman Resources plc, at the same time changing that company's name to Galleon
Holdings plc and gaining admission of the enlarged share capital to the
Alternative Investment Market of the London Stock Exchange.
This represents my first opportunity, as the Chairman of Galleon Holdings, to
communicate directly with all of the Company's shareholders. At the same time
that I present the financial results for the year ended 31st March 2002, and
outline the Company's current position and future plans, I should therefore like
to welcome former Andaman Resources' shareholders, and those who participated in
the Offer for Subscription.
Background
Galleon is a multimedia content provider across a number of platforms, including
television, radio, licensing, merchandising, animation, software, database
marketing and management, public relations and publishing. Galleon companies
include Probe Media Limited, A4 Publications Limited, Meta4 Design Limited and
RedEye PR Limited. Additionally, Galleon has equity interests in Transad
International plc, Live Information Systems Limited, and a 50 percent interest
in Astroknights Limited, a joint venture with Sanctuary Group plc.
Financial Results
The audited financial statements set out below show the results for the year
ended 31st March 2002. These reflect a full year's activity for what used to be
Andaman Resources, but only four months' trading for the Galleon companies.
The headline figure before goodwill amortisation shows a loss of #399,000 for
the period. Of this, a majority (#238,000) was attributable to Andaman
Resources, which had no material businesses until the acquisition of Galleon.
Two Galleon businesses, Probe Media and A4 Publications, recorded combined
seasonal losses of #89,000. The balance of the loss also results from issues of
timing: it had been anticipated that the cartoon series, Astro Knights, would by
now be contributing positively. The project has suffered delays owing to the
former co-production partner, Cine Groupe du Canada, being unable to bring
adequate financial resources to bear. This has now been resolved in the way
discussed below, to the future benefit of the Company.
Current Trading
Both Probe Media's and A4 Publications' businesses are seasonal in character,
and it is usual for them to lose money during the early months of the year.
They have now entered their busier periods, and I am pleased to report that each
is currently trading profitably.
The Astro Knights property was the subject of a recent deal, concluded on
superior terms to those originally agreed with the Canadians, between JC2, an
animation studio based in Hollywood, Ca., and Astro Knights Limited. The owners
of this studio have a track record of producing successful cartoon series for
the international television market, having worked on numerous animation
projects, including "An American Tale" (Amblin Entertainment), "Fern Gully"
(Kroyer Film), "Winnie the Pooh", "Return to Neverland" and "The Hunchback of
Notre Dame II" (Disney), as well as specials and series production for Disney,
Warner Bros., DIC, Sony, Hallmark and Carlton Television's "Astro Farm", "
Treasure Island" and "The Dreamstone". Astro Knights Limited retains control of
all rights for exploitation, including television distribution, licensing,
merchandising and publishing.
Galleon has also recently established Clipper Media Limited as a subsidiary, in
order to maximise the licensing and other returns from the intellectual property
rights (IPR) of the Galleon companies and associates. Clipper is headed by John
Knox, formerly of Warner Bros. and Paramount Pictures. It will license and
exploit the IPR inherent in Galleon properties such as PC Pepper, Astro Knights
and The Cornish Riviera Pasties.
In addition to exploiting "in house" rights, Clipper is building a portfolio of
third party representation: it has already signed a contract to represent
Russian-born world chess master, Garry Kasparov, and is currently developing a
licensing strategy embracing a broad product range for the "lifestyle" and the
international chess enthusiast markets.
All divisions of Galleon have been active amid sometimes volatile market
conditions, and have all made progress during the period under review.
Future Prospects
Galleon continues to develop, acquire and grow a significant portfolio of
cross-media IPR, which will underpin the operating businesses and reinforce the
Company's valuation.
Clipper is close to concluding further representation agreements, including
contracts with a fitness brand and a "lifestyle" magazine. I am optimistic that
Clipper will contribute to both turnover and profits during the balance of this
financial year.
Strict control of costs within all group companies, the current performance of
the businesses and the Board's forward strategy lead me to view the remainder of
financial 2002/3 with confidence.
In conclusion, I should like to express my thanks to all members of the Galleon
team for their continuous efforts over the past year, and also to thank the
retired Andaman Resources' directors for their contributions to the successful
reverse takeover transaction. During the course of the current year, I look
forward to bringing all shareholders news of further positive progress within
the Company.
James Driscoll, MBE,
Chairman
For further information please contact:
James Driscoll, Chairman Paul Wooding / Liz Moretti Caroline Anderson/
Peter Binns
Galleon Group Plc RedEye Public Relations Binns & Co PR Ltd
T: +44(0) 1384 440 591 T: +44(0) 1384 350 212 T: +44(0) 20 7786
9600
F: +44 (0) 1384 440 582 paul.wooding@redeyepr.com
Caroline.anderson@binnspr.co.uk
james.driscoll@galleonplc.com liz.moretti@redeyepr.com
paul@redeyepr.com www.redeyepr.com www.binnpr.com
CONSOLIDATED SUMMARISED PROFIT AND LOSS ACCOUNT
For the year ended 31 March 2002
2002 2002
2001 2001
# #
# #
Turnover
Acquisitions 276,886
-
276,886
-
Cost of sales (186,834)
-
Gross profit 90,052
-
Administrative expenses (916,216)
(153,331)
Operating loss
Continuing operations (238,209)
(153,331)
Acquisitions (587,955)
-
(826,164)
(153,331)
Share of operating profit of associate 2,161
-
Net interest 11,506
16,697
Amounts written off investments -
(32,780)
Loss on ordinary activities before
taxation (812,497)
(169,414)
Tax on loss on ordinary activities -
-
Loss on ordinary activities after taxation (812,497)
(169,414)
and loss for the financial year
Basic loss per ordinary share (0.26) p
(0.33) p
There were no recognised gains or losses other than the loss for the financial
year.
CONSOLIDATED SUMMARISED BALANCE SHEET AT 31 MARCH 2002
2002 2002
2001 2001
# #
# #
Fixed assets
Intangible assets
Goodwill 12,572,834
-
Other 5,752
-
12,578,586
-
Tangible assets 100,784
-
Investments
Associates and joint ventures 203,789
-
Other investments 68,143
30,965
271,932
30,965
12,951,302
30,965
Current assets
Stocks and work in progress 17,106
-
Debtors 912,813
12,561
Cash at bank and in hand 477,155
667,722
1,407,074
680,283
Creditors: amounts falling due within one year (478,211)
(40,933)
Net current assets 928,863
639,350
Total assets less current liabilities 13,880,165
670,315
Creditors: amounts falling due after more
than one year (28,267)
-
Provisions for liabilities and charges (209,513)
(59,513)
13,642,385
610,802
Capital and reserves
Called up share capital 8,149,953
820,150
Share premium account 1,341,731
1,165,564
Other reserves 6,338,110
-
Profit and loss account (2,187,409)
(1,374,912)
Shareholders' funds 13,642,385
610,802
CONSOLIDATED SUMMARISED CASH FLOW STATEMENT
For the year ended 31 March 2002
2002 2001
# #
Net cash outflow from operating activities
(740,836) (133,253)
Returns on investments and servicing of finance
Interest received
18,955 16,697
Interest paid
(5,473) -
Hire purchase interest
(1,976) -
Net cash inflow from returns on investments
and servicing of finance
11,506 16,697
Capital expenditure
Purchase of tangible fixed assets
(9,880) -
Purchase of intangible fixes assets
(1,200) -
Payments to acquire current asset investments
- (19,681)
Net cash outflow from capital expenditure
(11,080) (19,681)
Acquisitions
Purchase of subsidiary undertaking
(358,240) -
Net cash acquired with subsidiary
103,592 -
Net cash outflow from acquisitions
(254,648) -
Net cash outflow before financing
(995,058) (136,237)
Financing
Issue of shares
882,322 544,521
Expenses paid in connection with share issues
(144,610) -
Capital element of finance leases
(12,346) -
Net cash inflow from financing
725,366 544,521
(Decrease)/increase in cash
(269,692) 408,284
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2002
1. BASIS OF PREPARATION
The preliminary announcement has been prepared in accordance with applicable
accounting standards and under the historical cost convention.
The principal accounting policies of the group are set out in the group's 2002
annual report and financial statements.
2. TAXATION ON LOSS ON ORDINARY ACTIVITIES
No tax charge arises on the loss for the year.
3. DIVIDENDS
The directors do not recommend the payment of a dividend for the year ended 31
March 2002 (2001 : Nil)
4. LOSS PER SHARE
The calculation of the basic loss per share is based on the loss for the year
attributable to ordinary shareholders of #812,497 (2001 : #169,414) divided by
the weighted average number of shares in issue during the year of 314,670,485
(2001 : 51,064,703). The effect of the share options is anti-dilutive.
5. NET CASH OUTFLOW FROM OPERATING ACTIVITIES
2002 2001
# #
Operating loss
(826,164) (153,331)
Loss of disposal of tangible fixed assets
1,451 -
Depreciation of tangible fixed assets
20,284 -
Amortisation of intangible fixed assets
4,000 -
Provision against investments
24,822 -
Amortisation of goodwill
413,834 -
Increase in work in progress
(16,571) -
Decrease/(increase) in debtors
248,568 (12,381)
(Decrease)/increase in creditors
(611,060) 32,459
Net cash outflow from operating activities
(740,836) (133,253)
6. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
2002 2001
# #
(Decrease)/increase in cash in the year
(269,692) 408,284
Capital element of hire purchase and finance lease rentals
12,346 -
Change in net debt resulting from cash flows
(257,346) 408,284
Finance leases acquired with subsidiary undertaking
(80,325) -
Movement in net funds in the year
(337,671) 408,284
Net funds at 1 April 2001
667,722 259,438
Net funds at 31 March 2002
330,051 667,722
7. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985.
The summarised balance sheet at 31 March 2002, and the summarised profit and
loss account, summarised cash flow statement and associated notes for the year
then ended have been extracted from the Group's 2002 statutory financial
statements upon which the auditor's opinion is unqualified and does not include
any statement under s237 of the Companies Act 1985.
James Driscoll, Chairman Paul Wooding / Liz Moretti Caroline Anderson/
Peter Binns
Galleon Group Plc RedEye Public Relations Binns & Co PR Ltd
T: +44(0) 1384 440 591 T: +44(0) 1384 350 212 T: +44(0) 20 7786
9600
F: +44 (0) 1384 440 582 paul.wooding@redeyepr.com
Caroline.anderson@binnspr.co.uk
james.driscoll@galleonplc.com liz.moretti@redeyepr.com
paul@redeyepr.com www.redeyepr.com www.binnpr.com
This information is provided by RNS
The company news service from the London Stock Exchange
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