PXOG.L Regulatory News (PXOG)

25 Oct 2005 07:00

Premier Management Holdings PLC25 October 2005 PREMIER MANAGEMENT HOLDINGS PLCStatement of audited results for the year ended 31 January 2005 Key points • Turnover £732,000 for year (2004: £1,242,000 for 9 months). • Pre-exceptional, pre-amortisation operating loss of £423,000 (2004: £157,000 profit for 9 months). • Financial stability established with the acquisition of the Company's debenture by the Company's Chairman and removal of threat of immediate repayment. • Bill Jennings to resign as Managing Director with immediate effect as Company restructured to operate on a reduced basis. • The Board now seeking new business opportunities to restore shareholder value at a future date. Chairman Barry Gold said today, "The Group experienced difficult and protracted negotiations with its majorcreditor since around the year end but these problems have been solved and theCompany is now on a stable financial footing. We are now engaged on an ongoingbasis in seeking opportunities to bring a new profitable business into theGroup, whether by acquisition, joint venture or by some other form of strategicalliance, with a view to restoring some shareholder value at a future date. Iwould like to extend my thanks to Bill Jennings for his assistance through thisdifficult period and to wish him every success in his other business activities.I would also like to extend my thanks to Gerry Desler, the Company's FinanceDirector, to Glyn Taylor of Nabarro Nathanson, the Company's legal adviser, toBrewin Dolphin, the Company's broker and to Gerald Edelman, the Company'sauditors for their advice, support and loyalty over many, many months." Further enquiries: Barry Gold (Premier Management) - 01227 366 992 Richard Evans (Brewin Dolphin Securities) - 0161 214 5553 Chairman's statement In the year ended 31 January 2005 turnover was £732,000 (2004: £1,242,000 for 9months) and operating loss, before exceptional items and amortisation, was£423,000 (2004: £157,000 profit for 9 months). These numbers reflect thedifficult market conditions experienced through the year, particularly duringthe second half. The Group experienced difficult and protracted negotiationswith its major creditor since around the year end but these problems have beensolved and the Company is now on a stable financial footing. The negotiations with the debenture holders created much uncertainty on theCompany's future prospects. This lead to a gradual loss of staff until only theDirectors and some key consultants remained. On 29 April 2005 the debentureholder served a demand for immediate payment of all amounts outstanding. As theCompany was unable to discharge the demand a request was made on 29 April 2005to the London Stock Exchange to suspend trading in the Company's shares pendingclarification of its financial position. Over the following three months further protracted negotiations were carried outand final cost cutting measures were implemented. The lease on the Company'spremises was surrendered and none of the Directors or consultants were beingpaid. Finally, early in August, I acquired the debenture, withdrew therepayment demand and advanced further monies to settle pressing debts and fundresidual activities. With the uncertainty over the Company's financial positionlifted, work was able to be started on the Company's annual report and accounts,which had been temporarily suspended. The Company's activities have now been wound down to a reduced status. Icontinue to carry out some work in football representation business but due tothe significantly reduced workload, Bill Jennings, our Managing Director, hasresigned with immediate effect but will remain associated with the Company on aconsultancy basis as and when required. We are now engaged on an ongoing basisin seeking opportunities to bring a new profitable business into the Group,whether by acquisition, joint venture or by some other form of strategicalliance, with a view to restoring some shareholder value at a future date. I would like to extend my thanks to Bill Jennings for his assistance throughthis difficult period and to wish him every success in his other businessactivities. I would also like to extend my thanks to Gerry Desler, theCompany's Finance Director, to Glyn Taylor of Nabarro Nathanson, the Company'slegal adviser, to Brewin Dolphin, the Company's broker and to Gerald Edelman,the Company's auditors for their advice, support and loyalty over many, manymonths. Barry Gold25 October 2005 Consolidated profit and loss accountfor the year ended 31 January 2005 Year 9 months ended to 31 Jan 31 Jan 2005 2004 £000 £000 Turnover 732 1,242Cost of sales (285) (458)Gross profit before exceptional impairment 447 784Exceptional impairment of investment in footballers (221) (882)Gross profit/(loss) 226 (98)Exceptional amount written off investment in own shares (206) -Exceptional administrative expenses (561) (2,642)Amortisation of intangible assets (10) (132)Other administrative expenses (870) (627)Operating loss (1,215) (3,499)Other interest receivable and similar income 1 -Interest payable (40) (127)Amortisation of finance costs - (248)Exceptional write-back of loan - 2,896Loss on ordinary activities before taxation (1,460) (978)Taxation (212) -Loss on ordinary activities after taxation (1,672) (978)Dividends - -Retained loss carried forward for the financial year (1,672) (978) Loss per share Pence PenceBasic and diluted loss per ordinary share (2.82) (3.63) The profit and loss has been prepared on the basis that all operations arecontinuing operations. Statement of total recognised gains and lossesfor the year ended 31 January 2005 Year 9 months ended To 31 Jan 31 Jan 2005 2004 £000 £000 Loss for the period (1,672) (978)Prior period adjustment - 174Total recognised gains and losses since last financial (1,672) (804) statements Consolidated balance sheetsas at 31 January 2005 As at As at 31 January 31 January 2005 2004 £000 £000Fixed Assets Intangible assets - 220Tangible assets 1 82Investments - - 1 302Current assets Debtors 322 1,069Current asset investments - 221Cash at bank and in hand 161 151 483 1,441Creditors: amounts falling due within one year (808) (1,239) Net current (liabilities)/assets (325) 202 Total assets less current liabilities (324) 504Creditors: amounts falling due over one year (1,835) (1,986) Total assets less liabilities (2,159) (1,482) Capital and reserves Called up share capital 657 269Share premium account 2,855 2,497Profit and loss account (5,710) (4,038)Own shares held (4) (210)Capital redemption reserve 43 -Equity shareholders' deficit (2,159) (1,482) Consolidated cash flow statementfor the period ended 31 January 2005 12 months 9 months ended ended 31 January 31 January 2005 2004 £'000 £'000 Net cash movement from operating activities (120) 134 Returns on investments and servicing of financeInterest received 1 -Interest paid (4) (127) (3) (127) Taxation paid - - Capital expenditureReceipts on disposal of tangible assets - 20Payments to acquire tangible assets - (4) - 16Acquisitions and disposalsPayments to acquire subsidiary undertakings (42) - Net cash (outflow)/inflow before management of liquid (165) 23 resources and financingManagement of liquid resourcesShort term deposits - FinancingIssue of share capital 789Capital element of hire purchase contracts (6) (15)Payment for deferred consideration/debenture (620) (109)Net cash inflow/(outflow) from financing 163 (124) Decrease in cash in the year (2) (101) Note: The preliminary financial statement has been prepared on the basis of theGroup's normal accounting policies but does not constitute statutory accounts.The comparative figures for the period ended 31 January 2004 have been extractedfrom statutory accounts for the year then ended. These statutory accounts havebeen delivered to the Registrar of Companies, the auditors report on which wasunqualified and did not contain a statement under section 237(2) or (3) of theCompanies Act 1985. It is anticipated that the Group's Annual Report andAccounts for the year ended 31 January 2005 will be published and posted toshareholders on 25 October 2005. Copies will be made available at the Company'soffice at 11 Central House, Ongar, Essex CM5 9AA. ENDS This information is provided by RNS The company news service from the London Stock Exchange