RNS Number:3266B
Clipper Ventures PLC
24 November 1999
CLIPPER VENTURES PLC
RESULTS FOR THE SIX MONTHS ENDED 31 JULY 1999
Clipper Ventures PLC ("Clipper"), the AIM-quoted round-the-
world yacht racing and branded sailing event company, has
announced its unaudited results for the six months ended 31
July 1999.
Key points :
* These are the first half year results since Clipper Ventures
moved to AIM in August 1999.
* The results were : turnover : #1.22m
(1998 : #0.50m) (loss)/profit before tax : (#136,000)
(1998 : profit of #75,000)
(loss)/earnings per share : (1.54p) (1998 :earnings of 0.72p)
* Results reflect Clipper Ventures investment in new
businesses as it becomes a more broadly based marine
leisure, training and trading business.
* Clipper 98 round-the-world race finished successfully on 18
August 1999. The next round-the-world race has attracted
The Times Newspapers as title sponsor for The Times Clipper
2000 and will start in October 2000. Current bookings are
well ahead of previous round-the-world races at a similar
stage of promotion.
* International Management Network appointed to maximise
commercial and sponsorship revenues for the next round-the-
world race.
* New Corporate Sailing Division launched four months into the
half year. Forward bookings are encouraging.
* Clothing division is being formed and its new range for wear
on and off the water will be unveiled at the international
boat show in January.
* Boat import, distribution and sales division is being formed
and has signed an exclusive agreement with Gemini Inflatable
Pty of South Africa, a leading manufacturer of rigid
inflatable craft.
* On Outlook, Chairman, Sir Robin Knox-Johnston stated :
"We are laying the foundations for a substantial expansion
in the business which is expected to bear fruit in the year
starting May 2000. In that period, Clipper Ventures will
benefit from the uplift in income for The Times Clipper 2000
round-the-world race together with the much increased
potential for sponsorship revenue. There will also be a
full seasons contribution from the Corporate Sailing
Division together with clothing and RIB sales.
"While the 15-month period to 30 April 2000 will be an in
between year, we look forward to the future with great
excitement and confidence."
For further information, please contact :
Sir Robin Knox-Johnston, Chairman;
or William Ward, Managing Director
Clipper Ventures plc 01234-711550
Steve Liebmann or Tom Gadsby
Buchanan Communications 0171-466 5000
CHAIRMANS STATEMENT
Introduction
I am pleased to report Clipper Ventures first interim results
since its shares were admitted to the Alternative Investment
Market in August 1999.
This is a year of substantial development for Clipper
Ventures. A year ago, the business essentially comprised the
promotion and organisation of the biennial Clipper Round-The-
World Race ("RtW"). As we move forward, Clipper Ventures is
becoming a more broadly based business. As well as being one
of our core activities, the RtW races are central to the
creation and development of a strong Clipper Ventures brand
which, in turn, is being used to launch new activities and
provide for future organic growth as a marine-based leisure,
training and trading business.
The results now reported are for the six months to 31 July
1999. Earlier this year, it was announced that the year-end
is being changed from 31 January to 30 April. Accordingly,
the current financial year will be the 15 months to 30 April
2000. The accounting policy in respect of the recognition of
income is being modified. The combined effects of these
changes will be to give a truer picture of financial
performance - although these effects will not be reflected
properly in Clipper Ventures results until the year to 30
April 2001.
Results and Finance
Turnover for the first half year was #1.22 million (1998 :
#498,000). By far the greater part of turnover was
attributable to the Clipper 98 RtW which finished in August
this year. An operating loss of #100,000 was incurred (1998 :
profit of #142,000) and the loss before tax was #136,000 (1998
: profit of #75,000).
The loss reflects a significant investment in developing the
organisation to enable Clipper Ventures to launch its new
activities. In particular, additional staff were recruited
and new premises obtained for the establishment of the
Corporate Sailing Division which commenced trading some four
months into the first half year.
The acquisition of new yachts for the Corporate Sailing
Division increased net borrowings to #1.61 million at the end
of the half year (1998 : #0.49 million). Approximately #1.1
million new equity funds (before expenses) were raised at the
time of and since Clipper Ventures shares were admitted to
AIM (after the end of the half year); this has reduced
borrowings significantly to a comfortable level.
The directors are not recommending the payment of an interim
dividend.
Operations
Clipper 98
Clipper 98 finished successfully on 18 August 1999 - the very
day that Clipper Ventures announced its move to AIM. Revenue
and related costs for the round-the-world races are now
recognised as the race progresses. Accordingly, Clipper 98
contributed for the entire period under review and accounted
for over 80% of turnover.
The Times Clipper 2000
The Times Clipper 2000 RtW race will start from Portsmouth in
October 2000. The Times Newspapers has become the title
sponsor for this race and its support has done much to raise
the profile of this event still further.
Clipper Ventures intends to increase its revenues from
sponsorship. For both Clipper 96 and Clipper 98,
sponsorship revenues were modest in relation to overall race
turnover. In addition to the considerable advertising and
promotional support provided by The Times Newspapers,
commercial sponsorship contracts have already been signed for
two of the ports being used by the race. Clipper Ventures
recently appointed International Management Network ("IMN") as
exclusive agent to handle the commercial rights to The Times
Clipper 2000 race.
Current bookings for The Times Clipper 2000 are well ahead of
the level that previous RtW races had achieved at a similar
stage in promotion. This, together with the opportunities for
generating sponsorship revenues, means that the potential for
the next RtW race is ahead of the previous races.
Corporate Sailing Division
The Corporate Sailing Division was established at the start of
the current financial year and effectively commenced trading
from its Southampton premises during the early summer when the
first of the eight new Clipper Reflex 38 foot yachts was
delivered. Prior to the first deliveries, much preparatory
work was done in marketing and promotion.
The Corporate Sailing Division is building successfully on the
Clipper Ventures brand and is promoting and organising
corporate, training and racing events. Although revenues
generated during the 1999 season are modest, forward bookings
for the 2000 season are very strong. As a result, two further
yachts have been ordered for delivery in time for the 2000
season.
Other trading activities
Two new operating divisions are being formed. The first is
the clothing division which will market Clipper Ventures
branded clothing. At the forthcoming international boat show
at Earls Court in January, a range of Clipper branded leisure
clothing will be launched for wear both on and off the water.
This range of clothing will initially be marketed to Clipper s
existing customer base of 20,000 people and to a wider public
through Clipper Venture s web site (www.clipper-ventures.com).
The second new operating division is boat import, distribution
and sale. In September, an agreement was signed with Gemini
Inflatables Pty of Cape Town, South Africa, a leading
manufacturer of rigid inflatable boats (RIB ), for the
exclusive marketing, importing and distribution of Gemini
products in the United Kingdom excluding Northern Ireland. It
is envisaged that the first import consignment will be
received in spring 2000 when this new business will commence
trading - in good time for the 2000 season.
Outlook
We are laying the foundations for a substantial expansion in
the business which is expected to bear fruit in the year
starting May 2000. In that period, Clipper Ventures will
benefit from the uplift in income for The Times Clipper 2000
round-the-world race together with the much increased
potential for sponsorship revenue. There will also be a full
season s contribution from the Corporate Sailing Division
together with clothing and RIB sales.
While the 15-month period to 30 April 2000 will be an in
between year, we look forward to the future with great
excitement and confidence.
Sir Robin Knox-Johnston 24 November 1999
Chairman
PROFIT AND LOSS ACCOUNT
PERIOD ENDED 31 JULY 1999
6 months 6 months 12 months
to to 31 to 31
31 July July January
1999 1998 1999
as
restated
(unaudited) (unaudited) (audited)
# # #
TURNOVER 1,216,546 497,793 930,920
Cost of sales 953,829 142,782 638,245
---------- -------- -----------
GROSS PROFIT 262,717 355,011 292,675
Administrative expenses 362,251 212,673 322,448
---------- -------- -----------
LOSS (99,534) 142,338 (29,773)
Interest payable (36,464) (67,723) (77,371)
LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION (135,998) 74,615 (107,144)
Tax on loss on ordinary - - 8,318
activities
---------- -------- -----------
LOSS ON ORDINARY ACTIVITIES
AFTER TAXATION (135,998) 74,615 (115,462)
Dividends (including non-
equity) - 15,868 32,000
---------- -------- -----------
LOSS FOR THE FINANCIAL PERIOD (135,998) 58,747 (147,462)
======== ======== ========
Earnings per share (pence) (1.54) 09.72 (1.77)
All of the activities of the company are classed as continuing
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
PERIOD ENDED 31 JULY 1999
6 months 6 months 12 months
to to 31 to 31
31 July July January
1999 1998 1999
as
restated
(unaudited)(unaudited) (audited)
# # #
Loss for the financial period
Attributable to the
shareholders (135,998) 58,747 (115,462)
---------- -------- ----------
Total recognised gains and
losses relating to the period (135,998) 58,747 (115,462)
Prior year adjustment
(see note 2) (292,198) - -
---------- -------- --------
Total gains and losses
recognised since the last
annual report (428,196) 58,747 (115,462)
======= ======= =======
BALANCE SHEET
AT 31 JULY 1999
At 31 At 31 At 31
July July January
1999 1998 1999
as
restated
(unaudited)(unaudited) (audited)
# # #
FIXED ASSETS
Tangible assets 3,339,450 2,546,702 2,887,451
-------- -------- -----------
CURRENT ASSETS
Stocks - 20,917 22,805
Debtors 1,124,374 1,498,506 1,553,564
Cash at bank and in hand 53,715 1,272 3,812
-------- -------- -----------
1,178,089 1,520,695 1,580,181
CREDITORS: Amounts falling
due within one year (3,087,211)(2,477,171)(2,935,127)
-------- -------- -----------
NET CURRENT LIABILITIES (1,909,122) (956,476) (1,354,946)
-------- -------- -----------
TOTAL ASSETS LESS CURRENT
LIABILITIES 1,430,328 1,590,226 1,532,505
-------- -------- -----------
CREDITORS: Amounts falling
due after more than one year (313,354) (286,545 (334,533)
-------- -------- -----------
1,116,974 1,303,681 1,197,972
-------- -------- -----------
CAPITAL AND RESERVES
Called-up share capital 488,487 484,862 487,112
Share premium account 303,141 151,266 249,516
Revaluation reserve 326,460 326,460 326,460
Non-equity shareholders fund 18,000 - -
Profit and loss account (19,114) 341,093 134,884
-------- -------- -----------
SHAREHOLDERS' FUNDS
(INCLUDING NON-EQUITY
INTERESTS) 1,116,974 1,303,681 1,197,972
======= ======= =======
CASH FLOW STATEMENT
PERIOD ENDED 31 JULY 1999
6 months 6 months 12 months
to to 31 to 31
31 July July January 1
1999 1998 1999
as
restated
(unaudited)(unaudited) (audited)
# # #
NET CASH (OUTFLOW)/INFLOW
FROM OPERATING ACTIVITIES (287,470) 345,451 269,199
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest paid (34,759) (51,623) (66,549)
Interest element of finance (1,484) (5,310)
lease rental payments
Non-equity dividends paid - (429) (33,271)
---------- --------- ----------
Net cash outflow from returns
on investments and servicing
of finance (36,243) (52,052) (105,130)
TAXATION
- - (8,318)
CAPITAL EXPENDITURE
Payments to acquire tangible
fixed assets (458,415) (24,782) (339,236)
EQUITY DIVIDENDS PAID
Dividends paid to
shareholders - (15,828) -
--------- --------- ----------
CASH OUTFLOW BEFORE FINANCING (782,128) 252,749 (183,485)
FINANCING
Issue of equity share capital 1,375 24,602 13,966
Share premium on issue of 53,625 151,266 249,516
equity share capital
Net outflow from other loans (30,808) (195,476) (194,831)
Net inflow from bank loans 86,188 (84,991) 9,165
Net outflow in respect of (2,831) (2,403) (4,808)
finance leases
Bonus issue - (12,886) -
--------- --------- ----------
NET CASH INFLOW FROM
FINANCING 107,549 (119,888) 73,008
--------- --------- ----------
(DECREASE)/INCREASE IN CASH (674,579) 132,861 (110,477)
====== ====== ======
NOTES TO THE INTERIM REPORT
PERIOD ENDED 31 JULY 1999
1. The interim accounts were approved by the Board of
Directors on the 24 November 1999.
2. The interim report has been prepared using accounting
policies consistent with those set out in the statutory
accounts of the company for the year ended 31 January 1999,
except for the following changes:
i. Race Income and Expenditure
The accounting policy adopted in these interim accounts
is as follows:
Where the duration of a race involves more than one
accounting period, the income and expenditure relating
to that race is allocated to the accounting period on
the basis of the number of legs completed.
In prior periods where the duration of the race
involved more than one accounting period, the income
and expenditure relating to that race was provided for
in full in the accounting period in which the race
started.
The effect of the change is to defer #1,378,790 of
income and #1,086,592 of expenditure from the year
ended 31 January 1999 of which #1,034,092 of income and
#814,943 of expenditure is released in these interim
accounts.
ii. Deposits received are recognised in the period in which
they are received.
3. The interim financial information for the two half year
periods is unaudited and does not constitute statutory
accounts within the meaning of Section 240 of the Companies
Act 1985. The results for the year ended 31 January 1999 have
been extracted from the statutory accounts of the company on
which an unqualified auditors report has been received and
which have been delivered to the Registrar of Companies.
4. The tax charge for the period is based on the anticipated
effective rate of tax for the year to 31 January 2000.
5. Copies of this interim report are being sent to all
shareholders and will be available to the public from the
company s registered office.
END
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