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26 Apr 2017 16:00
26 April 2017
TLA Worldwide plc
("TLA" or "the Group")
Trading Update
TLA Worldwide plc (AIM: TLA), a leading athlete representation and sports marketing business, today announces the following trading update in respect of the financial year ended 31 December 2016.
The Group's trading results for the year ended 31 December 2016 will be below the Board's expectations principally due to corrections to be made by the Group to the amount of revenue recognised in the period within the Group's US Sports Marketing division, a portion of which will be recognised in the 2017 financial year. In addition, an unbudgeted provision is required against other receivables within the Group's Baseball division. As a result the total impact to underlying trading EBITDA for 2016 is a reduction by approximately $2.0m.
The Group is also conducting a detailed review of the recoverability of certain aged trade receivables in the US Sports Marketing division, a large portion of which relate to periods prior to the year ended 31 December 2016. The Board anticipates that a significant provision will be required to be made by the Group against these receivables, which will be taken as a one-off charge through the Group's income statement for the year ended 31 December 2016. This charge is anticipated to be in the range of $1.5m to $2.5m and further work is ongoing to ascertain the exact charge to be taken.
These various accounting adjustments will not have a cash impact on the Group. As at 31 December 2016 the Group's net debt position was $21.8m.
The Group will report results for the year ended 31 December 2016 in late May 2017 which will contain further details on the above items and a further announcement will be made shortly confirming the results date.
Enquiries:
TLA Worldwide | |
Bart Campbell, Executive Chairman Michael Principe, Chief Executive Officer | +1 212 645 2141 |
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Numis Securities | |
Nick Westlake and Oliver Hardy (Nomad) | +44 20 7260 1000 |
Christopher Wilkinson (Broker) |
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Luther Pendragon | |
Harry Chathli, Alexis Gore | +44 20 7618 9100 |
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About TLA Worldwide
TLA Worldwide is a leading athlete representation, event management and sports marketing group quoted on AIM-LSE in London. The Group derives revenues from long-term agency relationships with many prominent U.S. and international sports stars, broadcasters and media personalities associated with major sports including the MLB, NFL, NBA, PGA tour, AFL and Olympians and Cricketers. In addition, it also provides a range of services in respect of media consultancy, sports sponsorship and event creation and ownership. With over 170 full-time personnel, TLA Worldwide serves its clients from 10 locations worldwide including its offices in London, UK; New York, Newport Beach and California, USA; Melbourne, Perth, Adelaide and Sydney, Australia. For more information, please visit www.tlaworldwide.com.
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