RNS Number:0156C
Secora PLC
14 August 2007
SECORA PLC ("the Company")
FINAL RESULTS
Secora PLC (formerly I P LIVE PLC), the AIM listed entertainment company,
announces its preliminary results for the period to 31st March 2007.
CHAIRMAN'S STATEMENT
Results for the year to 31 March 2007 include the remaining losses relating to
our production of "Movin' Out" which closed on 20 May 2006 due to low
attendances. Full year losses also include a provision for professional fees
incurred for due diligence on a substantial transaction which was aborted,
details of which are provided below. The financial impact of these discontinued
events masks an otherwise satisfactory performance from our retained investments
and a significant reduction in overheads to assist recovery. The loss for the
year on ordinary activities before tax was #837K (2006: loss of #1,802K).
Operating profit for the continuing operations before amortisation and costs of
aborted acquisition was #2K (2006: #291K).
"Premier Exhibitions"
The Company sold its holding of 46,000 ordinary shares in Premier Exhibitions
Inc. (Nasdaq: PRXI), for #133,571. The holding was received as part of the
consideration for our interest in "Wonders of the Human Body Exhibition" which
was sold to Premier in May 2005. The Company retains 69,000 ordinary shares
which will be reviewed on an ongoing basis.
"Billy Elliot the Musical"
Our investment through Old Vic Productions Plc (OVP) in "Billy Elliot the
Musical" provided a good return during the period. We have recouped our intial
investment and share in net profit generated from the show. The show continues
to attract high audiences and we therefore expect this earnings stream to
continue.
"Diana, A Celebration"
Our investment in the "Diana, A Celebration" Exhibition provided a very modest
return during the year. The Exhibition completed its 2006/7 season in Cleveland
Ohio on 10 June 2007 and is scheduled to run in Sydney Australia from the end of
September 2007 for a period of eight months. This year is the 10 anniversary of
the death of Diana Princess of Wales and we plan to retain the investment for
the time being.
"Movin' Out"
A major part of our growth under the Company's business plan for 2006/7 was
expected to come from our production of "Movin' Out", which opened at the
Victoria Apollo at the end of March 2006. The show, based on the songs of Billy
Joel, was a hit in New York where it generated strong profits. This success and
the enduring popularity of Billy Joel's music led us to believe that the
production would do well in the UK and throughout Europe where Arena operators
and promoters had shown strong interest to take the show.
However, the audiences did not come in sufficient numbers to make the show
commercially viable in London and European promoters withdrew any viable offers
so that we could only continue with our plans to tour by taking the full
financial risk. This would not have been in the interest of the Company or
shareholders given the disappointment of London. As the show was incurring
losses we decided to close it early, which we did as swiftly and efficiently as
possible on 22 May 2006.
Directors
Following the closure of "Movin' Out" there were a number of changes to the
Board. Colin Ingram, production director, resigned as a director on 27 June
2006. In September 2006, Martin Flitton, business development director, and Eric
Cater executive chairman resigned from the Board and the Company to pursue other
interests. The name I P Live Plc was transferred to Martin Flitton and the
Company changed its name to Secora Plc.
Andrew Oliver, an existing non executive director, took the position of Chairman
on 29 September 2006. He subsequently left Board to pursue other interests and I
was asked to join as non executive chairman on 31 January 2007. I have been
actively reviewing options with the Board to rebuild value within the Company.
Strategic Review and Post Balance Sheet Events
A strategic review of the business and strategy was undertaken following the
closure of "Movin' Out" and the departure of several directors. It was concluded
that the Company did not have sufficient capital in the short term to continue
backing high-budget live entertainment projects, but had maintained the support
of major shareholders to seek new opportunities to rebuild shareholder value.
The Board has subsequently carried out due diligence on a privately owned media
and entertainment business and portfolio of investments in related sectors, but
neither opportunity resulted in a deal. All material costs relating to these two
opportunities were recovered.
At the end of the financial year the Company entered into negotiations for a
significant potential acquisition of a privately owned media and entertainment
publishing company. Due to the size of acquisition and the need for detailed and
costly due diligence and necessary fund raising to support the acquisition, the
Company conducted test marketing with potential investors who expressed strong
support for the deal under the right terms.
During the due diligence process it was determined that the financial results of
the target business were significantly below expectations upon which the price
had been based. Several attempts were made to re-negotiate the deal on terms
that were acceptable to the Board and that could be recommended to shareholders,
but without success. As a result it was concluded that the transaction would not
be in the interests of Secora shareholders and should be aborted. The settlement
of professional fees relating to due diligence has been concluded and a cost
provision has been made under administrative expenses for the year.
Outlook
The Company continues to operate with reduced overheads, ongoing revenues, cash
in the bank and without debt. In this respect we are satisfied with the position
and will continue to look for opportunities that offer the right balance of risk
and return for shareholders.
The existing board of Secora offers experience in media, entertainment,
technology, intellectual property rights and consumer brands sectors, rather
than specifically live entertainment. We believe that it is in the interest of
shareholders to broaden our strategy in this respect and in order to rebuild the
business. We are excited about the opportunity ahead and recognise that while
the Company has sufficient funds to cover overheads and very small deals, it is
likely that we will require additional funds for any significant transaction. We
shall present such an opportunity to shareholders at the appropriate time.
The board received notification on 3 July 2007 that Gallanta Investments Ltd had
increased its shareholding in the Company to 2,000,000 ordinary shares
representing 17.6% of the total authorised share capital. Gallanta is owned by
Mr Richard Charles Thompson, a founding investor and former director of Secora
Plc.
Marcus Yeoman
Chairman
Date: 14 August 2007
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2007
2007 2007 2007 2006
Continuing Discontinued Total Total
# # # #
Turnover 445,531 1,174,261 1,619,792 1,021,807
Cost of Sales (48,750) (1,398,168) (1,446,918) (300,356)
________ ________ ________ ________
Gross Profit 396,781 (223,907) 172,874 721,451
Administrative expenses 794,428 - 794,428 430,677
________ ________ ________ ________
Operating (loss)/profit (397,647) (223,907) (621,554) 290,774
before amortisation
Amortisation 131,850 - 131,850 132,149
________ ________ ________ ________
Operating (loss)/profit before (529,497) (223,907) (753,404) 158,625
exceptional item
Exceptional item - (109,712) (109,712) (2,010,300)
________ ________ ________ ________
Operating loss (529,497) (333,619) (863,116) (1,851,675)
Interest receivable 26,582 - 26,582 50,063
________ ________ ________ ________
Loss on ordinary activities before (502,915) (333,619) (836,534) (1,801,612)
taxation
Tax (charge)/credit on ordinary (56,000) - (56,000) 6,104
activities
________ ________ ________ ________
Deficiency for the period (558,915) (333,619) (892,534) (1,795,508)
________ ________ ________ ________
Loss per ordinary share:
Basic (7.85) p (18.29) p
________ ________
Diluted (7.85) p (18.29) p
________ ________
There are no recognised gains or losses other than those passing through the
profit and loss account.
BALANCE SHEET
AS AT 31 MARCH 2007
2007 2006
# #
Fixed assets
Intangible assets 368,761 500,611
Tangible assets 1,687 3,908
________ ________
Total Fixed Assets 370,448 504,519
Current assets
Debtors 24,740 270,835
Other debtors and prepayments 62,077 335,804
Current asset investments 75,735 68,511
Cash at bank and in hand 945,737 1,548,908
________ ________
1,108,289 2,224,058
Creditors: amounts falling due
within one year
(438,988) (796,294)
________ ________
Net current assets 669,301 1,427,764
________ ________
Total assets less current
liabilities
1,039,749 1,932,283
Provisions for liabilities - -
________ ________
1,039,749 1,932,283
________ ________
Capital and reserves
Called up share capital 568,750 568,750
Share premium account 3,368,080 3,368,080
Profit and loss account (2,897,081) (2,004,547)
________ ________
Shareholders' funds 1,039,749 1,932,283
________ ________
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2007
2007 2006
# # # #
Net cash (outflow)/inflow from operating activities (520,041) 653,319
Returns on investments and servicing of finance
Interest received 26,582 50,063
________ ________
Net cash inflow for returns on investments and
servicing of finance
26,582 50,063
Taxation - (896)
Capital expenditure and financial investment
Payments to invest in production investments (109,712) (1,867,063)
Payments to acquire fixed asset investments - (202,411)
Payments to acquire tangible assets - (3,908)
________ ________
Net cash outflow for capital expenditure (109,712) (2,073,382)
________ ________
Net cash outflow before management of liquid
resources and financing
(603,171) (1,370,896)
Financing
Net proceeds from issue of ordinary share capital 2,054,967
-
________ ________
Net cash inflow from financing 2,054,967
-
________ ________
(Decrease) Increase in cash in the period (603,171) 684,071
________ ________
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2007
1 Accounting policies
1.1 Accounting convention
The financial statements are prepared under the historical cost
convention.
1.2 Compliance with accounting standards
The financial statements are prepared in accordance with applicable
accounting standards which have been applied consistently. The principal
accounting policies of the Company have remained unchanged from the previous
period except that the Company has adopted FRS 20 Share Based Payments as
disclosed in Note 1.10 below.
2. Loss per ordinary share
Basic loss per share is calculated by dividing the losses attributable to
ordinary shareholders of (#892,534) (2006: (#1,795,508)) using a weighted
average of ordinary shares in issue during the period of 11,375,000 (2006:
9,816,978).
Because the inclusion of potential ordinary shares issued on the exercise of
share options would decrease the basic loss per ordinary share they are not
deemed to be dilutive and accordingly the basic and diluted loss per ordinary
share are identical.
3. Responsibility
The directors of the company accept responsibility for the information
contained in this document and to the best of their knowledge and belief
(having taken all reasonable care to ensure that such is the case) the
information contained is in accordance with the facts and does not omit anything
to affect the importance of such information.
Copies of annual report and accounts for 2007 will be posted to shareholders
on or around 14 August 2007 and will be available to the public at the
Company's registered office at Suite 424 Linen Hall, 162 - 168 Regent Street,
London W1B 5TE. The annual report and accounts will contain a Notice for the
Company's Annual General Meeting to be held at HLB Vantis Audit plc, 66 Wigmore
Street, London, W1U 2SB on Thursday 13 September 2007 at 10.30 am.
The preliminary announcement was approved by the board of directors
on 13 August 2007.
For further information, please contact:
Brewin Dolphin Securities Limited (NOMAD) Tel: 0845 270 8600
Mark Brady
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFLFMDSWSEIA
Grafico Azioni Secora (LSE:SECO)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Secora (LSE:SECO)
Storico
Da Lug 2023 a Lug 2024
