Live Company Regulatory News (LVCG)

9 Aug 2005 07:00

Parallel Media Group PLC09 August 2005 Parallel Media Group plc Interim Results for the 6 months ended 30 June 2005 Chairman's statement The Company's interim results for the period ended 30 June 2005 show a retainedloss of £218,000 compared to a loss of £892,000 reported in last year's interimresults. During the six months to 30 June 2005 the Company, together with its49.9% associate, Parallel Media Asia (2003) Limited (PMA), launched two new PGAEuropean Tour golf events in China and Indonesia and two new Ladies EuropeanTour events in Singapore and Thailand. This period also saw the Company,together with PMA, successfully stage PGA European Tour events in Malaysia,Singapore and China. Financial review The turnover for the period was £1,923,000 compared to a turnover of £1,861,000(after the deduction share of joint venture turnover) in the prior period. Theoperating loss for the period was £110,000 (6 months ended 30 June 2004:£531,000). The share of profit in associates line is the Group's 49.9% share ofthe profit of PMA for the period. Interest payable of £131,000 relates tointerest paid on the US$3 million facility with Bumiputra Commerce Bank andinterest paid on convertible and shareholders loans. At 30 June 2005 the Group had a net short term overdraft position of £10,000.The creditors falling due after more than one year comprised of a proportion ofthe Bumiputra Commerce Bank facility, convertible loans and shareholder loans. As indicated in the Chairman's Statement in the 31 December 2004 Report andAccounts and the subsequent circular dated 30 June 2005, the Company has beenlooking to raise monies in order to have sufficient working capital to developand increase its business over the next 12 months. I am therefore pleased toannounce that the Company has today received minimum commitments for a cashinjection of £750,000. The commitments have been made by myself and RAMInvestment Group plc. The cash injection is to be in the form of convertibleloans, with a conversion price of 1.5p per share. Board changes Tan Sri Mohd Razali Abdul Rahman is standing down as Chairman of the Company inorder to be able to devote more time to his role as Chairman of PMA and I wouldlike to take this opportunity to thank him for his tremendous support over thelast two years and look forward to a continued close relationship with him inthe future. Snowy Invest & Trade Inc. will continue to have two directors on theCompany's board. The Company will be announcing non-executive additions to theboard in the Autumn including a new Non-Executive Chairman. In the meantime Iwill temporarily be taking on the role of both Chairman and CEO. David CiclitiraChairman & CEO9 August 2005 Consolidated profit and loss account for the 6 months ended 30 June 2005 6 months ended 6 months ended Year ended 30 June 30 June 31 December 2005 2004 2004 (unaudited) (unaudited) (audited) Note £'000 £'000 £'000 Turnover: Group and share of joint venture 1,923 2,584 3,702Less share of turnover of joint venture - (723) (723) Turnover 1,923 1,861 2,979 Cost of Sales (1,321) (1,242) (1,943) Gross profit 602 619 1,036 Administrative Expenses (712) (1,150) (2,474)Other operating Income - - - Operating loss before exceptional items (110) (531) (1,288) Administrative expenses - exceptional - - (150) Operating loss (110) (531) (1,438) Share of operating loss in joint ventures - (226) (226)Share of operating profit/(loss) in associates 19 (192) (672)Exceptional items - profit on partial disposalof a subsidiary - - 16 Loss on ordinary activities before interestand tax (91) (949) (2,320) Interest receivable - - 1Interest payable (131) (57) (397) Loss on ordinary activities before tax (222) (1,006) (2,716) Tax on loss on ordinary activities - - Loss on ordinary activities after tax (222) (1,006) (2,716) Minority interests 4 114 144 Loss for the financial period (218) (892) (2,572) Loss per share- basic and diluted 2 (0.98p) (4.02p) (11.58p)- adjusted 2 (0.98p) (4.02p) (10.98p) Consolidated balance sheet as at 30 June 2005 30 June 30 June 31 December 2005 2004 2004 (unaudited) (unaudited) (audited) £'000 £'000 £'000Fixed assetsTangible assets 59 78 62Investments 757 1,206 883 816 1,284 945 Current assetsDebtors - Due within one year 914 1,363 923 - Due after one year 1,971 1,750 1,890 2,885 3,113 2,813 Cash - 7 47 2,855 3,120 2,860 Creditors: amounts falling duewithin one year (2,361) (2,923) (2,003) Net current assets/(liabilities) 524 197 857 Total assets less current liabilities 1,340 1,481 1,802 Creditors: amounts falling dueafter one year (5,412) (3,605) (5,468) Provisions for liabilities andchargesAssociates (156) (156) (156) Net liabilities (4,228) (2,280) (3,822) Capital and reservesCalled up share capital 1,110 1,110 1,110Share premium account - - -Other reserves 5,591 5,591 5,591Profit and loss account (10,821) (8,895) (10,413) Shareholders' funds - equity (4,120) (2,194) (3,712)Minority interest - equity (108) (86) (110) (4,228) (2,280) (3,822) Consolidated cash flow statement for the 6 months ended 30 June 2005 6 months ended 6 months ended 30 June 2005 30 June 2004 Note £'000 £'000 Net cash outflow from operating activities 3 80 (1,294) Returns on investments and servicing of financeInterest paid (131) (57)Interest received - - Net cash outflow from returns on investments and servicingof finance (131) (57) Tax paid - - Capital expenditure - - Acquisitions and disposals - -Further investment in associated undertaking - (158)Net cash sold with subsidiary - (242) - (400) Net cash outflow before management of liquid resources & (51) (1,751)financing FinancingConvertible loan - 678Loan from director - 514 - 1,192 Decrease in cash (51) (559) Notes forming part of the interim results for the period ended 30 June 2005 1. Accounting policies The interim results have been prepared on the basis of the accounting policiesas set out in the Group's 31 December 2004 statutory accounts. The comparative figures show above for the period ended 31 December 2004 do notconstitute statutory accounts as they have been extracted from the statutoryaccounts which have been filed with the Registrar of Companies. The auditors'report on those financial statements which was issued on 29 June 2005 containeda reference to a fundamental uncertainty, details of which are shown below. Fundamental uncertainties In forming our opinion, we have considered the adequacy of the disclosures madein note 1 of the financial statements concerning the assumptions underlying thedirectors' financial forecasts and the consequent uncertainty over theappropriateness of the going concern basis of accounting. We have alsoconsidered the disclosures made in notes 14 and 15 concerning the uncertaintyover the carrying value (in the company's balance sheet) of the investment insubsidiaries and the recoverability of the amounts owed by associated companies.In view of the significance of these uncertainties we consider that they shouldbe drawn to your attention, but our opinion is not qualified in this respect. The accounting policies included in the financial statements for the year ended31 December 2004 included the following basis of preparation note. Basis of preparation - Going concern The directors have prepared trading and cash flow forecasts for the group forthe 30 month period to 31 December 2007. These forecasts incorporate, interalia, the following assumptions:- a) as stated in the Chairman's statement, there will be a further cash injectionof £750,000 in the company in the near future b) the company's associated undertaking, Parallel Media Golf (Asia) Ltd ("PMGA"), will continue to repay its debt due to the company at the rate of $60,000per month (plus interest) c) the directors are in discussion with the directors of Parallel Media Asia(2003) Ltd an associated undertaking of the Company with a view to strengtheningthe latter's financial position by means of a substantial cash injection d) certain creditors will continue to acquiesce in receiving payment ininstalments Based on the above assumptions, the directors believe these forecasts to berealistic, and consequently have prepared the financial statements on the goingconcern basis, which assumes that the group will continue in operationalexistence for the foreseeable future. If any or all of the above assumptions prove to be inaccurate, the going concernbasis might not be appropriate, and the financial statements do not contain anyadjustments which might prove necessary as a consequence thereof. These interim results are unaudited and do not constitute statutory accounts. 2. Loss per share (i) Basic 6 months 6 months ended Year ended ended 30 June 2004 31 December 2004 30 June 2005 (unaudited) (unaudited) (audited) Loss for the financial period (£218,000) (£892,000) (£2,572,000) Number of shares in issue 22,203,505 22,203,505 22,203,505 Loss per share (0.98p) (4.02p) (11.58p) (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) reduces the net loss per share and is therefore anti-dilutive. (iii) Adjusted earnings per share The adjusted earnings per share figure shown below is calculated on attributableprofit excluding goodwill, discontinued operations, exceptional items includedin administrative expenses, and exceptional items included after operatingprofit. This calculation has been used as it is deemed to give a moreappropriate indication of the earnings of the continuing operations of theGroup. 6 months ended 6 months ended Year ended 30 June 2005 30 June 2004 31 December 2004 (unaudited) (unaudited) (audited) Earnings EPS Earnings EPS Earnings EPS £'000s Pence £'000s Pence £'000s Pence Basic loss per share (218) (0.98p) (892) (4.02p) (2,572) (11.58p)Administrative expenses - Exceptional - - - - 150 0.67pExceptional items - - - - (16) (0.07p) Adjusted loss per share (218) (0.98p) (892) (4.02p) (2,438) (10.98p) 3. Reconciliation of operating loss to net cash outflow from operating activities 6 months ended 6 months ended 30 June 2005 30 June 2004 £'000 £'000 Operating loss after exceptional items (110) (531)Depreciation 2 7Gain on disposal of - (16)subsidiaries(Increase)/decrease in debtors (112) (841)(Decrease)/Increase in 301 88creditorsForeign exchange (1) (1) Net cash outflow from operating activities (80) (1,294) 4. Other Copies of unaudited interim results have not been sent to shareholders, howevercopies are available on request from the Company Secretary at the company'sRegistered Office: 56 Ennismore Gardens, London SW7 1AJ. This information is provided by RNS The company news service from the London Stock Exchange