Live Company Regulatory News (LVCG)

30 Jun 2005 15:44

Parallel Media Group PLC30 June 2005 Parallel Media Group plc Preliminary announcement of the financial results for the year ended 31 December 2004Chairman's statement I am pleased to report that this year has seen the further development of PMG'sunique golfing assets. The key changes since 31 December 2003 to date can besummarised as follows: • The acquisition in March 2004 through its 49.975% associate ParallelMedia (2003) Asia Limited ("PMA") of 100% of the Asian PGA Tour Limited, nowrenamed, Parallel Media Golf Asia Limited ("ATL"). ATL currently has the rightto, and has recently promoted, the following five PGA European Tour/Asian Tourco-sanctioned events: Hong Kong Open, Singapore Masters, Malaysian Open, TCLClassic and a new event, the Indonesian Open, which was staged between 24 to 27March 2005 making the Group the largest single promoter on the PGA European andAsian Tours. • The signing of an agreement on March 17th 2004 with the PGA EuropeanTour for the creation of an "Asian Swing" within their European Tour Schedule.Under this agreement the PGA European Tour and ATL act as joint promoters ofATL's existing events and selected future events. PMG also has the exclusiveright to market the commercial rights to the Asian Swing and has appointed PMAas its sponsorship and sales marketing agent. PMG also has the right to jointlyexploit the television rights to the Swing with the PGAET. • The launching of two new Ladies European Tour co-sanctioned events inSingapore and Thailand - the Samsung Ladies Masters in Singapore (February2005) and the Thailand Ladies Open (April 2005). • The launching of a new Tour De Las Americas Tournament, The AmericanExpress Dominican Republic Open held at Casa del Campo. • The announcement on 28 April 2005 of a new Challenge Tour Event, - theKazakhstan Open, to be staged between 22 to 25 September 2005 Turnover for the year ended 31 December 2004 was £3.7 million with a loss of£2.6 million as opposed to a turnover of £7.5 million and a loss of £4.3 millionfor the period ending 31 December 2003. (The difference in turnover being due tothe fact that Parallel Media Asia (2003) Limited ("PMA") is now an associate ofthe Company as opposed to a subsidiary, PMG now currently owns 49.975% of PMA).Now that the Group has control of its assets I am pleased to indicate that therehas been a significant improvement in trading in 2005. Whilst the Company's business has been without doubt strengthened, the Directorsfeel that it is prudent to ensure that the Group and its associated companieshave enough working capital to develop and increase their business over the next12 months. To strengthen the Company's working capital position, the Company is proposingto raise between £750,000 and £1.1 million from investors by a new issue ofconvertible secured loan stock. Agreement in principal has been reached forDavid Ciclitira and an external investor to subscribe approximately a further£750,000 into the Company by way of a three year convertible loan which isconvertible at 1.5p per ordinary share. Details of this, together with someproposed changes to the share capital structure required to implement theproposals are set out in a separate document which will be sent to shareholders. Outlook The last 18 months have been an extraordinary period for the Group; to havepromoted seven major events in the first three months of this new financial yearis an achievement that everybody is proud of. The Company now appears to be in a better position to generate growth and I amproud to have been able to assist over the last 18 months particularly in thearea of Asia, which I know so well. Tan Sri Mohd Razali Abdul RahmanChairman Consolidated profit and loss account for the year ended 31 December 2004 Period Year ended 23 January 2003 to 31 December 2004 31 December 2003 Note £'000 £'000 Turnover: Group and share of joint venture 3,702 7,545Less share of turnover of joint venture (723) (3,439)Turnover 2,979 4,106 Cost of Sales (1,943) (1,928) Gross Profit 1,036 2,178 Administrative Expenses (2,474) (5,380)Other operating Income - - Operating loss before exceptional items (1,288) (2,793) Administrative expenses - exceptional (150) (409) Operating Loss 1 (1,438) (3,202) Share of operating loss in joint ventures (226) (2,566)Share of operating (loss)/profit in associates (672) 314Exceptional items - profit on sale of - 247subsidiaryExceptional items - loss on sale of associatedundertaking - (180)Exceptional items - profit on partial disposalof subsidiary 16 - Loss on ordinary activities before interestand tax (2,320) (5,387) Interest receivable 1 -Interest payable (397) (147) Loss on ordinary activities before tax (2,716) (5,534) Tax on loss on ordinary activities - (3) Loss on ordinary activities after tax (2,716) (5,537) Minority interests 144 1,192 Loss for the financial period (2,572) (4,345) Loss per share- basic and diluted 2 (11.58p) (19.57p)- adjusted 2 (10.98p) (17.95p) Balance sheets at 31 December 2004 Group Company 31 December 31 December 31 December 31 December 2004 2003 2004 2003 £'000 £'000 £'000 £'000Fixed assetsIntangible assets - - - -Tangible assets 62 89 9 11Joint venture - share of gross assets - 705 - -Joint venture - share of gross - (2,474) - -liabilitiesGoodwill in joint venture - 1,817 - - - 48 - -Investments 883 224 3,010 2,822 945 361 3,019 2,833Current assetsDebtors - Due within one year 923 1,130 1,449 1,680 - Due after one year 1,890 2,000 1,890 1,259 2,813 3,130 3,339 2,939Cash 47 565 - 201 2,860 3,695 3,339 3,140 Creditors: amounts falling duewithin one year (2,003) (3,514) (1,447) (2,656) Net current assets 857 181 1,892 484 Total assets less current liabilities 1,802 542 4,911 3,317 Creditors: amounts falling dueafter one year: (5,468) (2,401) (5,468) (2,401) Provisions for liabilities and chargesAssociates (156) (156) - - Net (liabilities)/assets (3,822) (2,015) (557) 916 Capital and reservesCalled up share capital 1,110 1,110 1,110 1,110Share premium account - - - -Other reserves 5,591 5,591 5,591 5,591Profit and loss account (10,413) (7,984) (7,258) (5,785) Shareholders' funds - equity (3,712) (1,283) (557) 916Minority interest - equity (110) (732) - - (3,822) (2,015) (557) 916 Consolidated cash flow statement for the year ended 31 December 2004 31 December 31 December 31 December 31 December 2004 2004 2003 2003 £'000 £'000 £'000 £'000 Net cash outflow from operating activities (2,404) (5,347) Returns on investments and servicing offinanceInterest paid (397) (147)Interest received 1 -Dividend received from associatedundertaking - 85Net cash outflow from returns oninvestments and servicing of finance (396) (62) Tax paidCorporation tax refund - -Overseas withholding tax paid - (3) - (3) Capital expenditurePayments to acquire tangible fixed assets (48) (108)Receipts from sales of tangible fixed - 28assetsNet cash outflow from capital expenditureand financial investment (48) (80) Acquisitions and disposals Further investment in associatedundertaking (158) -Sale of subsidiary undertaking - 500Net (cash)/overdrafts sold with subsidiary (242) (33)Purchase of other investments (30)Sale of associated undertaking - 86Sale of other investments - 14 (430) 567Net cash outflow before management ofliquid resources & financing (3,278) (4,925) FinancingProceeds from new ordinary share issues - -Bank facility 1,562 -Proceeds from shares issued in - 596subsidiariesConvertible loan 678 2,220Loan from shareholder - -Loan from director 514 - 2,754 2,816 Decrease in cash (524) (2,109) 1. Operating loss on ordinary activities before tax Year ended Period ended 31 December 31 December 2004 2003 £'000 £'000This is stated after charging/(crediting) Depreciation 32 95Hire of other assets - operating leases 150 141Loss on foreign exchange 177 162Auditors' remuneration - audit fee Company 17 20 - audit fee rest of group 30 40 Fees payable to the auditor and its associates in respect of non-audit servicesamount to £20,000 (period ended 31 December 2003: £23,525). The exceptional items included in administrative expenses for the year compriseprovisions against amounts owed from associates of £150,000 (period ended 31December 2003: provisions against loans receivable of £409,000). 2. Loss per share Year ended Period ended 31 December 31 December 2004 2003(i) Basic £'000 £'000 Loss for the financial period (2,572) (4,345)Number of shares in issue 22,203,505 22,203,505 Loss per share (11.58p) (19.57p) (ii) Diluted Diluted loss and earnings per share is calculated on the same basis as basicloss and earnings per share because the effect of the potential ordinary shares(share options and convertible loans) reduces the net loss per share and istherefore anti-dilutive. (iii) Adjusted earnings per share The adjusted earnings per share figure shown below is calculated on attributableloss excluding discontinued operations, exceptional items included inadministrative expenses, and exceptional items included after operating profit.This calculation has been used as it is deemed to give a more appropriateindication of the earnings of the continuing operations of the Group. Year ended Period ended 31 December 2004 31 December 2003 EPS Earnings EPS Earnings Pence £'000 Pence £'000 Basic loss per share (11.58p) (2,572) (19.57p) (4,345) Discontinued operations - - (0.22p) (49)Administrative expenses - Exceptional(continuing operations only) 0.67p 150 1.84p 409Exceptional items (continuing operations only) (0.07p) (16) - - Adjusted loss per share (10.98p) (2,438) (17.95p) (3,985) The financial information set out above does not constitute the Company'sstatutory accounts for the year to 31 December 2004 but is derived from thoseaccounts. Copies of the Report and Accounts for the period ended 31 December 2004 arebeing sent to shareholders. Further copies will be available from the Company'sregistered office, which is 56 Ennismore Gardens, London, SW7 1AJ. This information is provided by RNS The company news service from the London Stock Exchange