Interim Results
28 Giugno 2002 - 12:12PM
UK Regulatory
RNS Number:8991X
Shaw (Arthur) & Co PLC
28 June 2002
Arthur Shaw & Company PLC
("Arthur Shaw")
Interim Results for the six months to 31st March 2002
Highlights
• Turnover for 6 months of £2.7m (six months to 31 March 2001: £3.2m)
• Loss for the period £1.4m (six months to 31 March 2001: £1.6m)
• Loss per share of 0.14p (six months to 31 March 2001: 0.18p)
Bryan Morrison, Chairman of Arthur Shaw commented:
"It has been a period with difficult trading conditions in both the Engineering
and Media divisions.
"We continue to work hard to revitalise the Group and believe that the agreement
of a Put Option to dispose of the Engineering Division demonstrates our
commitment to build a broad based media business going forward.
"We seek to build the media business both organically and through appropriate
acquisitions"
Further Enquiries:
Bryan Morrison/Tim Curle
Arthur Shaw
Tel: 020 7706 7304
Jonathon Brill/Charlotte Kirkham
Bell Pottinger Financial
Tel: 020 7861 3232
CHAIRMAN'S STATEMENT
Results
The loss before and after taxation for the six months ended 31 March 2002 was
£1.4m (2001: £1.6m). Turnover for the six months was £2.7m (2001: £3.2m).
Financing
We have continued to take action to strengthen our balance sheet. To this end,
an EGM will be held on the 5 July where shareholder approval will be sought for
a debt to equity conversion for Coatdale, one of our investors. In addition, as
announced at the Preliminary Results six months ago we have agreed terms of an
option which gives us the right to divest the Engineering Division for nominal
consideration. The exercise of the Option will be subject to shareholder
approval, exercisable up until 30 September 2002, and will leave the business in
a much stronger financial position than it was six months ago. We can then look
to the future with greater confidence as we look to grow the business as a pure
media concern both organically and through acquisition.
Media Division
We have continued to be active in looking for opportunities in webcasting,
despite the continuing slow adoption of broadband in the UK. Our expertise in
this area is world leading and has been boosted further by the acquisition in
the period of 50% of Streamteam Limited, a London based video streaming and
services company, which holds the European distributorship for a number of
technologies developed by Vingage Inc., our US technology partners. Streamteam's
expertise allows us to pursue business-to business opportunities in new media,
rather than relying solely on a business-to-consumer proposition. The
consideration for the acquisition was approximately £100,000 and was satisfied
largely by the issue of our shares to the vendors. There remains an option to
acquire the remaining share capital of the business after three years from
purchase.
The strength of the expertise that they have brought to Arthur Shaw was
demonstrated by the work they recently undertook on the webcast of the build up
to the Lewis/Tyson fight earlier this month. This was once again a highly
technically successful transmission of which we are immensely proud.
Following a number of the webcasts that we have undertaken over the last few
years, it is clear that though we have the expertise to undertake these
projects, we will in the future only proceed with those ventures where we have
commercial returns assured. This will ensure that we remove any financial risk
to Arthur Shaw and this will often mean working alongside partners and sponsors
to ensure we cover any investment outlay. We are actively investigating a number
of opportunities that meet these criteria.
Mike Mansfield Television continues to pursue a number of interesting
programming ideas that are currently with the networks. The current environment
is not a good one for selling big production ideas but we remain confident that
we will see some positive return on these in the future.
Engineering Division
The Engineering Division continues to operate in a difficult marketplace. The
Management team are working hard to bring the business into profit and we have
identified a more competitive source for some of our products in the Far East.
We have also made space savings allowing one unit of the premises to be sublet.
Management
During the period Richard Halcrow joined the Board as non-executive Director and
his strong City background will provide a major contribution to the company.
We continue to look for a Chief Executive for Arthur Shaw. Though this is taking
longer than we had initially hoped, we will not to be rushed into a decision on
this important appointment. We are actively interviewing candidates on an
ongoing basis and in the meantime I am continuing to assume the role of CEO.
Outlook
The outlook for the Engineering Division remains difficult. However, with the
Put Option now in place we have the ability to move that business on whilst
retaining some participation in future profits should good times return. The
Board is committed to exercising this option at the appropriate time so that we
are able to concentrate our efforts on building our media interests.
The traditional media business is also going through a difficult period. Budgets
are tight with the major networks and getting major new programming ideas
commissioned is as difficult as ever. However this is not stopping us coming
forward with new concepts and suggestions and we are hopeful that we will soon
see success in this area.
In webcasting we continue to stay at the forefront of developments. Though this
is not yet a profitable business area, once we see take up in broadband reach
higher levels Arthur Shaw will be well positioned to benefit from any upturn.
Streamteam will meantime allow us to benefit from a range of
business-to-business opportunities.
We continue to look at a number of acquisitions which will help us develop the
business in the music and media sector, whilst also providing us with the
ability to generate short term revenue and cash.
Bryan Morrison
Chairman
28 June 2002
UNAUDITED CONSOLIDATED SUMMARISED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 MARCH 2002
6 months 6 months Year
ended ended ended
31.3.02 31.3.01 30.9.01
Unaudited Unaudited Audited
£'000 £'000 £'000
Turnover 2,710 3,187 6,415
======== ======== ========
Operating loss (1,231) (1,470) (7,235)
Net interest payable and similar charges (164) (178) (341)
------------ ------------ ------------
Loss on ordinary activities before taxation (1,395) (1,648) (7,576)
Tax on loss on ordinary activities - - -
------------ ------------ ------------
Loss transferred from reserves (1,395) (1,648) (7,576)
======== ======== ========
Loss per ordinary share (0.14p) (0.18p) (0.81p)
======== ======== ========
The operating loss for the year ended 30 September 2001 is after an impairment
provision of £4,733,000.
UNAUDITED CONSOLIDATED SUMMARISED BALANCE SHEET
AT 31 MARCH 2002
31 March 31 March 30 September
2002 2001 2001
Unaudited Unaudited Audited
£'000 £'000 £'000
Fixed assets
Intangible assets 4,881 10,003 5,246
Tangible assets 3,346 3,636 3,435
Investments 100 - -
------------ ------------ ------------
8,327 13,639 8,681
------------ ------------ ------------
Current assets
Stocks 336 683 359
Debtors 1,417 1,644 1,626
Cash at bank and in hand 24 113 6
------------ ------------ ------------
1,777 2,440 1,991
Creditors: amounts falling due within one year (5,888) (4,193) (4,581)
------------ ------------ ------------
Net current liabilities (4,111) (1,753) (2,590)
------------ ------------ ------------
Total assets less current liabilities 4,216 11,886 6,091
Creditors: amounts falling due after more than one
year (2,625) (3,220) (3,185)
------------ ------------ ------------
Net assets 1,591 8,666 2,906
======== ======== ========
Capital and reserves
Called up share capital 970 951 962
Share premium account 5,005 4,776 4,933
Other reserves 7,431 7,431 7,431
Profit and loss account (11,815) (4,492) (10,420)
------------ ------------ ------------
Shareholders' funds 1,591 8,666 2,906
======== ======== ========
UNAUDITED CONSOLIDATED SUMMARISED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 MARCH 2002
6 months 6 months Year
ended ended ended
31.3.02 31.3.01 30.9.01
Unaudited Unaudited Audited
£'000 £'000 £'000
Net cash outflow operating activities (109) (778) (1,946)
------------ ------------ ------------
Net cash outflow from returns on investments and
servicing of finance (164) (80) (238)
------------ ------------ ------------
Taxation - - 12
------------ ------------ ------------
Capital expenditure and financial investment
Purchase of tangible fixed assets (46) (77) (85)
Purchase of intangible fixed assets - (635) (542)
------------ ------------ ------------
Net cash outflow from capital expenditure and financial
investment (46) (712) (627)
------------ ------------ ------------
Acquisitions
Purchase of associated undertaking (20) - -
------------ ------------ ------------
Financing
Issue of shares - 4 34
Invoice discounting (170) (121) (61)
Capital element of hire purchase payments (21) (10) (27)
Loans received 760 - 837
------------ ------------ ------------
Net cash inflow/(outflow) from financing 569 (127) 783
------------ ------------ ------------
------------ ------------ ------------
Increase/(decrease) in cash 230 (1,697) (2,016)
======== ======== ========
Notes:
1. Basis of preparation
The interim financial statements have been prepared under the historical cost
convention, on bases consistent with the previous period and in accordance with
applicable Accounting Standards.
The principal accounting policies of the Group are set out in the Group's 2001
annual report and financial statements. The policies have remained unchanged
from the previous annual report.
The Directors continue to consider, on the basis of the proposed conversion of
debt to equity, which is to be voted on by shareholders at an Extraordinary
General Meeting on 5 July 2002, and having regard to overdraft and other
facilities available to the Group, that the Group has sufficient working capital
available.
The interim financial information in this report has been neither audited nor
reviewed by the Company's auditors.
2. Tax on loss on ordinary activities
No tax charge arises on the loss for the period.
3. Loss per share
The calculation of the basic loss per share is based on the loss for the
period attributable to ordinary shareholders of £1,395,000 divided by the
weighted average number of shares in issue during the period of 963,858,308.
4. Accounts
The comparative figures for the financial period ended 30 September 2001 are not
the statutory accounts for the financial period. Those accounts have been
reported on by the Company's Auditors. The report of the auditors was
unqualified and did not contain statements under section 237 (2) or (3) of the
Companies Act 1985. Statutory accounts for 2001 have been delivered to the
Registrar of Companies.
This information is provided by RNS
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