R4E.L Regulatory News (R4E)

30 Jul 2007 07:00

First Artist Corporation PLC30 July 2007 Trading Update and Issue of New Shares Trading Update First Artist Corporation plc (AIM:FAN), the integrated marketing, sport and entertainment management group, is pleased to announce that the group continuesto trade in line with management expectations. Particular success has been achieved by the Group's event management business, The Finishing Touch, which registered another record profits month in June, driven by continued strong growth in corporate business and the recently acquired, and now fully integrated, Yell Communications. Furthermore, the Group's financial advisory division, Optimal Wealth Management also had a record trading month in June. Dewynters, the Group's leading entertainment and theatre marketing agency, continues to make a strong contribution to Group revenues with significant recent marketing campaigns for hit West End musicals Joseph and The Amazing Technicolor Dreamcoat and Grease. The quality of service offered by Dewynters was also recognised through the award of Advertising Agency Production Team of the Year 2007 at the recent Quality in Print and Media Awards. Trading within Newman Displays, the cinema and theatre industry's leading front of house and facia display manufacturing and design company, is very buoyant, with recent high profile West End premier launches, including the films The Simpson's, Shrek 3, Harry Potter and the Order of the Phoenix and Spiderman 3, along with theatre production for Lord of the Rings. First Artist Sport, the Group's global football player representation division, is also performing well, helped by the increased revenue gained from the recent renegotiated television rights contract. The division has completed a number of high profile player transactions so far this summer including Jonathan Woodgate from Real Madrid to Middlesbrough, Sully Muntari from Udinese to Portsmouth and Julien Faubert from Bordeaux to West Ham, with a further number in the pipeline. Issue of New Shares First Artist's event management business, The Finishing Touch (Corporate Events) Limited ("Finishing Touch"), has achieved the second set of financialperformance targets set out for the business under the terms of the acquisition announced 14th September 2005. As a result of the agreed performance targets for the year ended 30th April 2007 being exceeded, the second tranche of earn-out consideration has become payable to the vendors of Finishing Touch. This consideration is to be satisfied by the issue by the Group to the Finishing Touch vendors (in aggregate) of: • 43,037 new ordinary shares of 2.5 pence each in the capital of the Group ("New Ordinary Shares") on the basis of an average mid-market price of 109.12 pence per share; and • £430,374 of interest bearing unsecured loan notes, redeemable six months from issue. Application has therefore been made for the admission of the New Ordinary Shares to trading on the AIM market of the London Stock Exchange. Upon issue, the New Ordinary Shares will rank pari passu with the Group's existing Ordinary Shares. It is expected that admission will become effective and that dealings in the New Ordinary Shares will commence on 2nd August 2007 ("Admission"). Following Admission, the Group will have in issue an aggregate of 13,108,836 Ordinary Shares. Jon Smith, Chief Executive of First Artist Corporation plc, said: "We are delighted by the continued successful growth of The FinishingTouch, which has triggered the earn-out consideration announced today. I am alsopleased to note that trade across the Group continues to be strong with twodivisions having record months in June. The evolution of the First Artist Groupas a world class provider of marketing, media and management services across theentire entertainment spectrum is a compelling business model and is driving ourcontinued growth. For this reason I am extremely confident about the future forthe Group." - ends - Enquiries First Artist Corporation plcJon Smith, Chief ExecutiveRichard Hughes, Group Managing Director Tel: +44(0) 208 900 1818 Bell Pottinger Corporate & FinancialAnn-Marie Wilkinson / Peter Otero Tel: +44(0) 207 861 3232 Dawnay, Day Corporate Finance LimitedDavid Floyd Tel: +44(0) 20 7509 4570 This information is provided by RNS The company news service from the London Stock Exchange