RNS Number:1977S
Clipper Ventures PLC
9 October 2000
CLIPPER VENTURES PLC
RESULTS FOR THE YEAR ENDED 30 APRIL 2000
Clipper Ventures PLC ('Clipper'), the AIM quoted yacht racing
and branded marine events company, has announced its audited
results for the 15 months ended 30 April 2000.
Key points :
- The results were :
turnover #1.61m (1999 : #931,000, restated)
loss before tax #1.19m (1999 : #107,000, restated)
loss per share 11.83p (1999 : 1.77p, restated).
- The results reflect the start-up costs and investment in the
new Corporate Sailing, RIB (rigid inflatable boat) and
Clothing divisions as well as certain one-off items which
included the costs of moving to AIM.
- The Times Clipper 2000 round-the-world race starts from
Portsmouth on 15 October 2000 and will be Clipper's biggest
and most successful event in every respect.
- The race is a complete 'sell out' and is generating over #3
million in berth fees. The expected aggregate value of
sponsorship deals (cash and goods or services) is over #1.5
million.
- Clipper's management team has been strengthened with the
appointment of Richard Cooper as Managing Director and Tim
Cowper as Finance Director.
- On outlook, Chairman, Sir Robin Knox-Johnston stated :
'The Times Clipper 2000 race will start shortly, creating
substantial media coverage for Clipper's activities and
brand. In the current year, substantial progress is being
made on building on the complementary activities within the
group. Looking forward, Clipper plans to develop and launch
a series of new major events, specifically designed to
attract TV coverage - in turn creating a wider platform for
generating participation revenue and sponsorship income.'
For further information, please contact :
Clipper Ventures PLC 023-8023-7088
Sir Robin Knox-Johnston, Chairman
William Ward, Chief Executive
Richard Cooper, Managing Director
Tim Cowper, Finance Director
Buchanan Communications 020-7466-5000
Steve Liebmann or Ed Cowdery
AUDITED RESULTS FOR THE 15 MONTHS TO 30 APRIL 2000
CHAIRMAN'S STATEMENT
Introduction
I am pleased to report Clipper's results for the 15-month
period to 30 April 2000. During the period, Clipper has made
substantial progress in its development as a leading marine
events business.
The change in year-end to 30 April was announced during the
period; and this, taken together with an appropriate change in
our accounting policies, will give a better balance to our
future results from the contribution from the biennial round-
the-world ('RtW') yacht races.
During the 15 months, Clipper has invested heavily within the
business, including the promotion of the high profile Times
Clipper 2000 RtW race, the start-up and development of new
operating activities, a substantial strengthening of the
management team, the consolidation of operations onto one site
in Southampton and a provision against the value of some of the
yachts. The results also bear the costs of the move from OFEX
to the Alternative Investment Market in August 1999.
This investment means that Clipper is very well placed to
pursue its ambitious plans for future growth.
Results
The change in accounting policy for the RtW races now provides
for income and related expenditure to be allocated to the
relevant accounting period in which particular 'legs' of the
race are completed. Accordingly, the results for the 12 months
to 31 January 1999 have been restated.
Turnover for the 15 month period under review was #1.6 million
(1999 : #0.9 million). As a result of the investment mentioned
above, the inclusion of full non-race costs for 15 months but
income and related race costs from only two thirds of the
Clipper 98 RtW race, a loss of #1.2 million was incurred (1999
: loss of #0.1 million). The loss per share was 11.83p (1999 :
loss of 1.77p).
As in previous years, the directors are not recommending the
payment of an ordinary dividend for the period.
Operations
The Times Clipper 2000 RtW will start from Portsmouth on 15
October 2000 and will be Clipper's biggest and most successful
event in every respect. The appointment of The Times newspaper
as title sponsor together with a considerable increase in
overall media exposure has resulted in a substantial lift in
profile for this event. Each of the eight yachts competing is
named after and is backed by the cities of London, Leeds,
Liverpool, Glasgow, Bristol, Plymouth, Portsmouth and the
Island of Jersey. This city-versus-city concept will
substantially increase the competitive following and increase
media interest in the event still further. In turn, this
should result in satisfied sponsors and will improve future
sponsorship values.
The race is a complete 'sell out' and is generating over #3
million in berth fees. Overall income from the race will be
increased significantly by sponsorship. In addition to The
Times title sponsorship, The Berkeley Festival Waterfront
Company has paid to host the start and finish (Portsmouth), the
Algarve Tourism Board (Vilamoura), Fox-Pitt Kelton (Hong Kong)
and the Island of Jersey have each entered into stopover
sponsorship agreements. Clipper has also made signage,
licensee and official supplier agreements with Ladbrokes,
Olympus, Argosy Publishing and others. The aggregate value
from this portfolio of sponsors is expected to exceed #1.5
million in cash and in goods or services.
During the period under review, the Corporate Sailing division
began trading with its fleet of purpose-built 38 foot yachts
during the latter part of the 1999 season. The results for
this business reflect its start-up and development costs, the
benefits of which are being seen in the current year with
turnover for the 2000 season likely to increase three-fold when
compared to the previous period.
The clothing division was launched early in 2000, developing
and sourcing a range of leisure and foul weather garments for
sale in conjunction with The Times Clipper 2000 race and
through the retail trade.
The RIB (rigid inflatable boat) division was also launched
during the period, based on an exclusive marketing, importing
and distribution agreement with Gemini Inflatables Pty of Cape
Town, South Africa. Initial deliveries of RIBs have been
deployed within Clipper Ventures' Corporate Sailing division.
The use of the internet and web sites has become an intrinsic
part of Clipper's major marine events. ClipperTelecom PLC is a
company established alongside Clipper to further develop and
promote these activities and to develop new streams of income
based on telecommunications. This business has been financed to
date by outside investors. It is anticipated that
ClipperTelecom will seek admission to AIM in due course; at
that time, Clipper expects to hold a significant amount of the
enlarged equity.
Board
During the course of 2000, Clipper has strengthened its Board
with the appointment of Richard Cooper as Managing Director in
March and the appointment of Tim Cowper as Finance Director in
August. William Ward, previously Managing Director, has become
Chief Executive. We now have the management resources needed
to take Clipper forward to its next stage of development.
Outlook
The Times Clipper 2000 race will start shortly, creating
substantial media coverage for Clipper's activities and brand.
In the current year, substantial progress is being made on
building on the complementary activities within the company.
Looking forward, Clipper plans to develop and launch a series
of new major events, specifically designed to attract TV
coverage - in turn creating a wider platform for generating
participation revenue and sponsorship income.
Sir Robin Knox-Johnston 9 October 2000
Chairman
PROFIT AND LOSS ACCOUNT
PERIOD FROM 1 FEBRUARY 1999 TO 30 APRIL 2000
Period to Year to
30 Apr 31 Jan
2000 1999
as
restated
# #
TURNOVER 1,610,438 930,920
Cost of sales 1,204,603 442,177
--------- -------
GROSS PROFIT 405,835 488,743
Marketing and
administrative expenses 1,415,458 509,277
--------- -------
OPERATING LOSS (1,009,623) (20,534)
----------- --------
Interest receivable 380 -
Interest payable (185,640) (86,610)
--------- --------
LOSS ON ORDINARY
ACTIVITIES BEFORE TAXATION (1,194,883) (107,144)
Tax on loss on ordinary - 8,318
activities
---------- --------
LOSS ON ORDINARY
ACTIVITIES AFTER TAXATION (1,194,883) (115,462)
Dividends (including non- - 32,000
equity)
----------- ---------
LOSS FOR THE FINANCIAL PERIOD (1,194,883) (147,462)
----------- ---------
Earnings per share (pence) (11.83) (1.77)
------- -------
All of the activities of the company are classed as continuing.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Period to Year to
30 Apr 2000 31 Jan 1999
as
restated
# #
Loss for the financial period
attributable to the shareholders (1,194,883) (115,462)
Impairment adjustment (326,460) -
-------- -------
Total recognised gains and
losses relating to the period (1,521,343) (115,462)
Prior year adjustment (see note 3) (292,198) -
--------- ---------
Total gains and losses recognised
since the last annual report (1,813,541) (115,462)
----------- ---------
BALANCE SHEET
AS AT 30 APRIL 2000
As at As at
30 Apr 2000 31 Jan 1999
as restated
# # # #
FIXED ASSETS
Tangible assets 3,127,702 2,887,451
CURRENT ASSETS
Stocks 292,583 22,805
Debtors 2,464,219 1,553,564
Cash at bank and in 6,867 3,812
hand
--------- --------
2,763,669 1,580,181
CREDITORS: Amounts falling
due within one year (3,355,697) (2,935,127)
---------- ----------
NET CURRENT LIABILITIES (592,028) (1,354,946)
--------- ----------
TOTAL ASSETS LESS CURRENT
LIABILITIES 2,535,674 1,532,505
CREDITORS: Amounts falling
due after more than one year (1,675,858) (334,533)
----------- ---------
859,816 1,197,972
------- ---------
CAPITAL AND RESERVES
Called-up share capital 318,768 487,112
Share premium account 1,601,047 249,516
Revaluation reserve - 326,460
Profit and loss account (1,059,999) 134,884
---------- -------
SHAREHOLDERS' FUNDS (including
non-equity interests) 859,816 1,197,972
------- ---------
CASH FLOW STATEMENT
PERIOD FROM 1 FEBRUARY 1999 TO 30 APRIL 2000
Period to Year to
30 Apr 2000 31 Jan 1999
as restated
# # # #
NET CASH (OUTFLOW)/INFLOW
FROM OPERATING ACTIVITIES (1,078,729) 278,438
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest received 380 -
Interest paid (276,136) (75,788)
Interest element of
finance lease rental
payments (1,415) (5,310)
Non-equity dividends paid (16,000) (33,271)
-------- --------
NET CASH OUTFLOW FROM
RETURNS ON INVESTMENTS
AND SERVICING OF FINANCE (293,171) (114,369)
TAXATION - (8,318)
CAPITAL EXPENDITURE
Payments to acquire
tangible fixed assets (779,798) (339,236)
--------- ---------
NET CASH OUTFLOW FROM
CAPITAL EXPENDITURE (779,798) (339,236)
--------- ---------
CASH OUTFLOW BEFORE
FINANCING (2,151,698) (183,485)
FINANCING
Issue of equity share
capital 31,656 13,966
Share premium on issue of
equity share capital 1,351,531 249,516
Repayment of non-equity
share capital (200,000) -
Net inflow of bank loans 200,417 9,165
Net outflow from loans (248,170) (194,831)
Capital element of finance
lease rental payments 11,434 (4,808)
------ -------
NET CASH INFLOW FROM
FINANCING 1,146,868 73,008
---------- -------
DECREASE IN CASH (1,004,830) (110,477)
----------- ---------
NOTES
1 Financial information
These accounts do not constitute statutory accounts.
Comparative figures for the period ended 31 January 1999 have
been extracted from the statutory accounts on which the
auditors gave an unqualified report and which have been filed
with the Registrar of Companies.
2 Earnings per share
Basic earnings per share has been calculated on the loss on
ordinary activities after taxation and preference dividends
of #1,194,883 (1999: #147,462) using the weighted average
number of shares in issue of 10,101,639 (1999: 8,337,765).
There is no dilutive effect of the options and warrants on
the loss for the period ended 30 April 2000.
3 Prior year adjustment
The prior year adjustment relates to a change in accounting
policy in respect of recognition of race income and
expenditure straddling an accounting period. In previous
accounting periods, the race income and expenditure was
allocated to the accounting period in which the race started.
The policy has been changed such that the allocation is based
on the number of legs completed.
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
to the period ended 30 April 2000.
The comparative figures have been amended in respect of
promotion and marketing costs which have been removed from
cost of sales and included within Marketing and
administrative expenses. The effect of this is to increase
gross profit for the year ended 31 January 1999 by #196,067
and increase Marketing and administrative expenses by the
same amount. There is no effect on the operating loss.
4 The Annual Report & Accounts will be posted to shareholders
shortly and will be available for collection at the offices
of the company.
5 The Annual General Meeting of Clipper Ventures PLC will be
held at Buchanan Communications Limited, 107 Cheapside,
London, EC2V 6DN on 8th December 2000.
Nominated Advisor
Corporate Synergy PLC, PO Box 5569, Newbury, RG20 8YY
Nominated Broker
Hoodless Brennan & Partners, 40 Marsh Wall, Docklands,
London E14 9TP
Register Address
Shamrock Quay, William Street, Northam, Southampton,
Hampshire SO14 5QL
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