R4E.L Regulatory News (R4E)

First Artist Corporation plc

("First Artist" or the "Company" or the "Group")

Trading Statement

First Artist Corporation plc (AIM:FAN) provides an update on trading, ahead of the General Meeting to be held later today and prior to entering the close period before the announcement of preliminary results for the 15 months ended 30 November 2009, which will be made on 20 April 2010.

Strategic Update

First Artist announced in June 2009 that it was reviewing its strategic options with regard to its non-core businesses, in keeping with its stated objectives of debt reduction and the redefinition of the Group with media at its heart.

In line with these objectives, and in a very difficult economic climate for M&A activity, the Company is pleased to have completed the sale of its wealth management business, as announced on 2 February, and the sale of its artist representation agency, as announced this morning.

The Group continues to examine its options for First Artist Sport, its international football representation and transfer dealing agency. Discussions are ongoing with Sport's management with regard to a sale, and the market will be kept informed.

The Company has been informed by the auditors that under the international accounting standard IFRS5, the businesses which have been sold since the end of the financial period ended 30 November 2009, and those which it intends to sell, will need to be accounted for in the Group's consolidated financial statements for that period as assets held for sale. The Group's media businesses, which comprise the Dewynters group of companies, SpotCo, The Finishing Touch and First Rights, will be reported on within continuing operations.

Media

Dewynters

On a like for like basis, and in line with management expectations, Dewynters' revenue and EBITDA for the period ended 30 November 2009 were slightly down on its previous financial year. However, in the current trading period the company has secured significant new business, including five major West End productions which will launch this spring. West End audiences have shown remarkable resilience to the global recession, with theatres enjoying record attendances during 2009. This buoyant market is very positive for our clients and is expected to result in an increasing appetite for investment in future productions.

 SpotCo

Broadway's theatre attendance, whilst slightly down on the previous year, remained robust during 2009.

SpotCo has delivered a stellar performance since joining the Group in October 2008, achieving a record year which surpassed management expectations at the time of acquisition. The agency continues to win new business, including La Cage aux Folles, Fences with Denzel Washington, Priscilla, Queen of the Desert, and Million Dollar Quartet, and is also seeing success through its collaboration with Dewynters.

The Finishing Touch ("TFT")

The events industry was hit hard by the recession, with many established companies being forced out of the market, and The Finishing Touch inevitably had a difficult period in 2008-09. However, as anticipated, TFT saw signs of renewed interest from its customers in late autumn, and due to its range of innovative products, Christmas was much stronger than expected. Enquires and confirmed bookings have continued to be encouraging in the early part of this year.

TFT's disappointing outcome for 2009 should be seen in the context of its trading success in prior years. The Directors are confident that the company will return to growth this year given the hard work of its staff, its reputation in the market place and the loyalty of its customers.

First Rights ("FRL")

First Rights, our fledging rights business, whilst yet to demonstrate its full potential, achieved a breakthrough into theatre sponsorship this year. FRL introduced and managed Chambord's sponsorship of the successful West End production Breakfast at Tiffany's and is exploring further sponsorship opportunities in the entertainment space. The Group believes that being able to offer this service is very valuable to our clients.

Summary and Outlook

The results across the media division, which will constitute our continuing operations moving forward, were slightly down overall on management's forecasts for the 15 month period ended 30 November 2009. However, we are confident that the underlying strength of these businesses gives an ideal platform for the coming year.

The Company continues to be focussed on debt reduction and the maximisation of its strong cash-flow, and is now concentrating on bringing its central costs into line with a more highly focussed group of companies. The major items of Group expenditure to be dealt with will now be excess property costs, and although these are held on relatively short leases, we remain determined to realise savings.

Business assets held for sale as at 30th November 2009

 First Artist Sport ("Sport")

The Group updated its shareholders after the close of the summer 2009 transfer window, and was pleased to report a record trading window. However, as has been widely reported in the press, this year's January window was very disappointing, and although Sport maintained its market share, the outcome is down on management forecasts. This will not impact on the Group's figures to 30th November 2009 but will obviously affect the currents year's results. Sport has also had to re-structure its Italian football agency, Promosport, as the corporate structure required to trade under the Italian football regulations has changed dramatically, with corporate bodies required to be majority owned by FIFA licenced football agents. The Group has therefore decided to put Promosport into run-off, which is likely to result in a re-structuring charge (non cash) of around £1 million. The Board is confident that the new structure that it has put in place will be fit for purpose and will resolve a very difficult dilemma.

The 15 month period to 30 November 2009 of course includes only two transfer windows (the month of January 2009, and the summer window of June/July/August 2009) and has 15 months of expenses rather than the normal twelve.

Optimal Wealth Management Limited ("Optimal")

First Artist announced the disposal of its independent financial advisory firm on 2 February 2010. Optimal's numbers to 30 November 2009, although creditable against the background of a weak market for investment products, were lower than previous years. We believe that Optimal performed well against its peers, thanks largely to the skill, hard work and dedication of its staff, and we wish them and the business every success for the future.

First Artist Management ("FAM")

The disposal of the Group's artist representation agency to James Grant Media is announced this morning. FAM's results to 30 November 2009 were significantly down on previous years, which has to be viewed in the context of much reduced budgets from all broadcasters. We firmly believe that FAM will operate more successfully as part of a larger group of complimentary businesses, and we wish the agency the very best for the future.

- ends -

For further information:

Notes to Editors:

First Artist Corporation plc was admitted to AIM in 2002.

First Artist's group companies are among the leading brands in their fields under the following categories: 

Media - entertainment advertising, marketing, design, promotions, digital media, merchandising, signage and front of house displays for the West End, Broadway and Las Vegas via the Dewynters, SpotCo and Newman Displays brands. Sponsorship rights marketing through First Rights Limited.  Events such as conferences, company activity days, parties, venue finding, delegate management and client events for private and public sector clients through The Finishing Touch.

Sport - representation of football players/clubs across the UK, Europe and the US through the Sport division.