Clipper Ventures Plc
Unaudited Preliminary Results for the year to 30 April 2005
Clipper Ventures Plc (`Clipper' or the `Company'), the AIM quoted ocean racing
company known for the Clipper Round The World Yacht Race and the 5-Oceans Solo
Grand Prix, announces unaudited preliminary results for the year to 30th April
2005.
KEY POINTS
* Loss before Tax, excluding exceptional stock provision, (�316,791); (2004:
Loss before tax (�904,800)
*
+ Total Loss before tax of (�1.07m) includes a �750,655 provision against
the anticipated disposal of the outgoing Clipper 60 yachts
+ The year to 30 April 2005 was a non race year with consequential timing
effect on Company revenues (i.e. �4.37m income deferred until years
ending 2006 and 2007)
* Clipper 05-06 Round The World Yacht Race all set for race start on 18th
September from Liverpool:
* �8.5 million in contracted income for the race secured
* Brand new 10 yacht Clipper fleet in commission
* 5-Oceans Solo Grand Prix planning advancing satisfactorily:
* Five month professional solo race commencing 22 October 2006
* Bilbao awarded rights to host the race start/finish subject to �1.05m
contribution to the Company
* Fremantle (Western Australia) awarded rights to host first stop over
* GlobalSportNet appointed as commercial partner to market and promote the
event
* Zapcat racing Ltd power boat championship profile building
Sir Robin Knox-Johnston, Chairman, Clipper Ventures Plc, commented:
"The key to Clipper Venture's future lies in growing the profile,
internationally, of the racing events, which in turn will lead to enhanced
sponsorship agreements.
"For Example the forthcoming round world race, being unique as the world's
longest ocean yacht race, has witnessed athreefold growth in turnoversince our
first event in 1996. Particularly, we have seen a step change in levels of
sponsorship interest, with the 2005/06 race attracting almost �3.5 million
compared to �600,000 for the last race in 2002/2003. This is likely to
accelerate further in the years ahead, asrace coverage in the television and
print media grows.
"The Company also plans to capitalise upon other revenue generating activities,
to ensure that the Clipper fleet is utilised, as far as is practicable,
throughout the years in which the round the world race isn't running."
2 September 2005
Enquiries:
Clipper Ventures Plc +44 (0) 23 8023 7088
William Ward, Chief Executive Officer
Hansard Communications +44 (0) 20 7245 1100
Adam Reynolds/Nicholas Nelson
CHAIRMANS STATEMENT
After a year of substantial activity for Clipper Ventures, the company
continues to gain recognition as a world leading nautical events business. Its
lead events are witnessing growing sponsorship interest which is instrumental
to revenue and profits growth.
Financial Summary
The results have been prepared with accounting principles that are consistent
with previous years. This means that the majority of income relating to the
Clipper 05 - 06 race has not been booked to profit, but is held in deferred
income. Deferred income stands at �4.37m and will be released to profits in the
years to April 06 and April 07.
The Board has reviewed the value of the Clipper 60's that are shown as assets
held for resale. Currently the 8 yachts are being marketed at �150,000 + VAT
each and while there is significant interest from buyers, the Board felt it was
prudent to make a provision for a reduction in NRV of the yachts to �100,000 +
VAT each. This is shown as a stock provision.
Losses before the stock provision referred to above are �317,000, which is
slightly favourable to our previous forecasts. The balance sheet shows negative
Net Current Assets and Net Total Assets which, it should be noted, is affected
by the significant deferred income that is held in creditors.
The loss of �172,023, itemised separately in the consolidated profit and loss
account under Acquisitions, represents the first year of trading of Zapcat
racing as part of the Company.
Business Overview
Clipper Ventures Plc is a marine sports company with its main activity being
ocean yacht racing. It operates through three business divisions.
Clipper Round the World Yacht Race
The Company's core business centres on the 35,000 mile Clipper around the world
Yacht Race whereby all ten 68 foot yachts are owned by the Company and
sponsored by cities around the world. The Company provides skippers and
training, the crews are recruited from enthusiastic amateurs, who pay for their
berths aboard. The next race starting on 18th September 2005 from Liverpool
will be the fifth in the series, but the fleet has been entirely renewed for
the race with larger and faster yachts. Occupancy for this race is close to
100% and still growing whilst sponsorship income for the race is �8.5 million.
These races are run every two years, but to allow time for the new fleet to be
built an additional year's gap had to be introduced after the last race in
2002.
5-Oceans Solo Grand Prix
The Company's second main event is the 5-Oceans solo grand prix, previously
known as Around Alone, a single handed around the world race. The rights to
this well-known quadrennial event were acquired by Clipper towards the end of
2001 for US$150,000. The race has been re-branded and Clipper is using
strategic partners such a Globalsportsnet, a subsidiary of the WPP Group to
assist with sponsor searches and media coverage for the next race in October
2006. Clipper provides the race management and promotion and the boats, usually
sponsored, are privately owned. Bilbao and Fremantle have already signed
contracts to host the port stops.
Zapcat power boat racing
The third business, which at present provides a low level of contribution to
Company turnover, is Zapcat racing. Clipper is European agent for the
inflatable catamarans and organises a series of events around the coast
culminating in a national championship. Income is generated through boat sales
and host fees. The future of this business is seen to be in making it
international and discussions are progressing with potential agents in other
European states.
Outlook
The key to Clipper Venture's future lies in growing the profile,
internationally, of the racing events, which in turn will lead to enhanced
sponsorship agreements.
For example the forthcoming round world race, being unique as the world's
longest ocean yacht race, has witnessed a threefold growth in turnover since
our first event in 1996. Particularly, we have seen a step change in levels of
sponsorship interest, with the 2005/06 race attracting almost �3.5 million
compared to �600,000 for the last race in 2002/2003. This is likely to
accelerate further in the years ahead, as race coverage in the television and
print media grows.
The Company also plans to capitalise upon other revenue generating activities,
to ensure that the Clipper fleet is utilised, as far as is practicable,
throughout the years in which the round the world race isn't running.
Sir Robin Knox-Johnston
Chairman
2nd September2005
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2005
Continuing Acquisitions Total
Operations
2005 2005 2005 2004
� � � �
Turnover 419,919 161,677 581,596 1,510,092
Cost of sales (17,973) (131,895) (149,868) (1,057,140)
_________ _________ _________ _________
Gross profit 401,946 29,782 431,728 452,952
Administrative expenses (370,349) (201,805) (572,154) (1,181,437)
_________ _________ _________ _________
Operating profit/(loss) 31,597 (172,023) (140,426) (728,485)
loss before impairment of
tangible fixed assets
Stock provision (750,655) - (750,655) -
_________ _________ _________ _________
Operating loss (719,058) (172,023) (891,081) (728,485)
Profit on sale of fixed - - - 19,425
asset investments
Other interest receivable - - - 974
and similar income
Interest payable and (176,365) - (176,365) (196,714)
similar charges
_________ _________ ________ _________
Loss on ordinary (895,423) (172,023) (1,067,446) (904,800)
activities before taxation
Tax on loss on ordinary - - - -
activities
_________ _________ _________ _________
(895,423) (172,023) (1,067,446) (904,800)
Loss on ordinary
activities after taxation
Loss per ordinary share (4.12) (4.24)
(pence)
Diluted loss per ordinary
share (pence) (4.12) (4.24)
CONSOLIDATED BALANCE SHEET
AS AT 30 APRIL 2005
2005 2004
� � � �
Fixed assets
Intangible assets 412,525 97,712
Tangible assets 3,035,675 272,062
Investments 125 -
3,448,325 369,774
Current assets
Assets held for 800,000 1,550,655
resale
Stock 173,254 120,090
Debtors 4,385,403 2,447,528
Cash at bank and in 85,591 1,641,128
hand
5,444,248 5,759,401
Creditors: amounts (1,867,008) (1,848,806)
falling due within
one year
Deferred income (4,362,852) -
Net current (785,612) 3,910,595
(liabilities)/assets
Total assets less 2,662,713 4,280,369
current liabilities
Creditors: amounts (2,859,790) (3,560,005)
falling due after
more than one year
(including
convertible debt)
(197,077) 720,364
Capital and reserves
Called up share 458,208 450,313
capital
Share premium 3,565,356 3,423,246
account
Profit and loss (4,220,641) (3,153,195)
account
Shareholders' funds (197,077) 720,364
Equity interests (392,343) 525,098
Non-equity interests 195,266 195,266
(197,077) 720,364
COMPANY BALANCE SHEET
AS AT 30 APRIL 2005
2005 2004
� � � �
Fixed assets
Intangible assets 91,349 97,712
Tangible assets 2,994,022 272,062
Investments 150,130 -
3,235,501 369,774
Current assets
Assets held for resale 800,000 1,550,655
Stock 84,648 120,090
Debtors 4,694,909 2,447,528
Cash at bank and in 85,588 1,641,128
hand
5,665,145 5,759,401
Creditors: amounts (1,725,084) (1,848,806)
falling due within one
year
Deferred income (4,362,852) -
Net current (422,791) 3,910,595
(liabilities)/assets
Total assets less 2,812,710 4,280,369
current liabilities
Creditors: amounts (2,852,531) (3,560,005)
falling due after more
than one year
(including convertible
debt)
(39,821) 720,364
Capital and reserves
Called up share capital 458,208 450,313
Share premium account 3,565,356 3,423,246
Profit and loss account (4,063,385) (3,153,195)
Shareholders' funds (39,821) 720,364
Equity interests (235,087) 525,098
Non-equity interests 195,266 195,266
(39,821) 720,364
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 APRIL 2005
2005 2004
� � � �
Net cash inflow from operating 2,272,180 152,369
activities
Returns on investments and
servicing of finance
Interest received - 974
Interest paid (176,365) (196,714)
Interest element of finance - -
lease rentals
Net cash outflow for returns (176,365) (195,740)
on investments and servicing
of finance
Capital expenditure and
financial investment
Payment to acquire tangible (3,014,615) (214,165)
assets
Receipts from sales of - 507,750
tangible assets
Receipts from sales of - 48,824
investments
Net cash inflow/(outflow) for (3,014,615) 342,409
capital expenditure
Net cash inflow before (918,800) 299,038
financing
Financing
Issue of ordinary share - 83,200
capital
Share premium on issue of - 956,794
equity share capital
Cost of share issue - (33,963)
Issue of shares - 1,006,031
Issue of convertible 125,000
loan notes
Repayment of loans (1,500,000)
New bank loans 949,000
Capital element of hire 7,259 (2,718)
purchase contracts
Decrease in debt (1,492,741) 1,071,282
Net cash inflow from financing (1,492,741) 2,077,313
Increase in cash in the (2,481,572) 2,376,351
year
NOTES TO ACCOUNTS
1. General
The financial information herein does not constitute statutory accounts as
defined in section 240 of the Companies Act 1985.
Copies of the annual report will shortly be posted to shareholders and copies
will be available from the company's registered office at Shamrock Quay,
William Street, Northam, Southampton SO14 5QL.
2. Basis of preparation of the financial statements
The financial statements have been prepared in accordance with the historical
cost convention and are prepared in accordance with applicable accounting
standards. The principal accounting policies are unchanged from the previous
year.
END
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