RNS Number:0530K
Clipper Ventures PLC
17 September 2001
CLIPPER VENTURES ON COURSE FOR PROFITS THIS YEAR
Clipper Ventures plc, the AIM-listed ocean racing and marine events company,
founded by chairman Sir Robin Knox-Johnston in 1995, today announces
preliminary results for the year to April 30th 2001. Highlights include a 71
per cent increase in turnover, margin growth of 180 per cent and a reduction
in the loss from #1,195,000 to #417,000. The Board is forecasting a profit for
the current financial year. Shareholder' perks, which currently include
discounts on crew fees, are being enhanced to include a free learn-to-sail
course or sailing day.
Clipper Ventures owns and runs two of the world's five around-the-world races.
The Clipper 2000 Race finishes this Friday (21st September) at Gunwharf,
Portsmouth. The event has been contested by eight, 60ft racing yachts owned by
the company and sponsored by eight UK cities. Led by professional skippers,
crew pay up to #27,000 for the chance to circumnavigate the globe. The formula
is based on the company's mission of "enabling ordinary people to do
extraordinary things". The income stream from crew fees alone generated
revenues of #1,609,956 during the year. Prices have been increased for the
2002 race and crew registrations are running at double that for the 2000 race.
"Around Alone" - which was acquired in April this year as part of the declared
strategy to focus on core sailing activities - is aimed at the top
single-handed sailors who enter their own high-specification, sponsored yachts
in this around-the-world classic. At 27,000 nautical miles it is the longest,
most arduous race for any individual in any sport. The next Around Alone
begins in September 2002 and has already registered a number of the world's
leading yacht racers. Sponsorship, entry fees and related income are expected
to generate substantial revenues for the company.
In addition to its racing activities, Clipper Ventures has a Corporate
Division that organises sailing events for companies and national events such
as the UK Industry Challenge. The business is based on a fleet of Reflex 38ft
yachts. Improved marketing helped generate turnover growth of 140 per cent for
this division.
Sir Robin Knox-Johnston comments: "Significant progress has been made during
the year. We have built an exciting, cash-generative business which is now
poised to show reliable, profitable growth in the years ahead. Our objective
is to become the world market leader in the fast-growing yacht racing and
marine adventure marketplace and we are considering the acquisition or
development of additional events to help us realise this."
Group turnover amounted to #2,774,901 (#1,610,438). Gross profit rose to #
947,704 (#405,835). The loss for the year fell to #416,637 (#1,194,883).
Further information from:
Richard Cooper Managing Director and Jeremy Knight Financial Director 02380
237 088
Ashley Nield Woodside Communications (mobile) 07730 435 420 (office) 020 7435
0901
CHAIRMAN'S STATEMENT
Year from 1st May 2000 to 30th April 2001
I am pleased to report that Clipper Ventures has been able to consolidate &
develop its position as one of the world's leading marine event companies. The
demand for adventure and self-discovery has never been greater and our credo
of "enabling ordinary people to do extraordinary things" is placing us on the
crest of this wave.
In October 2000 the world's media witnessed the start of our flagship event,
The Times Clipper 2000 Round The World Yacht Race. The Times proved to be an
excellent sponsor and media partner, in this its millennium project, devoting
extensive space in its sports pages and carrying a number of competitors'
diary entries or "logs". The racing has been fiercely contested but always
within the spirit of good sportsmanship and the welcome the crews have
received at the ports en-route has been tremendous. Publicity emanating from
these encounters is helping to build Clipper Ventures into a global sporting
brand.
In April 2001 we bought the "Around Alone" race. This around-the-world event
is the longest race on Earth for an individual in any sport. It attracts the
cream of single-handed ocean-racing sailors and serves to broaden Clipper
Ventures' portfolio of products while remaining within our core expertise. Our
first Around Alone will start in the autumn of 2002 and in the run up to this
we anticipate making a series of announcements on competitor and sponsor
signings.
Our consolidation has including a refocusing of our corporate team on larger,
more profitable events: we have divested the non-core Rigid Inflatable Boats
(RIBS) business and discontinued our clothing line. These and other
adjustments have helped us to focus the business on our core activity as a
marine event organiser.
Results
Turnover is up 72 per cent on the previous period with our corporate division
showing particularly strong growth of 175 per cent. Gross Profit has also been
significantly improved and is showing a 134 per cent improvement on the
previous period. The increased utilisation of our fleet of Reflex 38 yachts
has been a key factor in these improvements and we expect this trend to
continue.
Administration and selling costs remain under control and show a small
reduction over the previous period. We have strengthened our marketing and
promotions team to substantially improve the profitability of our Corporate
Division and to build on the enhanced media profile of the Times Clipper 2000
race in terms of a significant growth in sponsorship income.
Clipper Ventures became cash generative in the year. A net cash inflow from
operating activities of #372k (2000: (#1,079k)) combined with increased equity
financing of #500k and the proceeds of business disposals has financed
investments of #109k and a reduction in loan financing. This has led to a
reduction in borrowing charges of 14 per cent compared to the previous period.
Over the year we incurred a loss of #417k. This compares with a loss of #
1,195k for the previous period.
Operations
I referred in my introduction to The Times Clipper 2000 which began last
October. This was our most significant event to date and media exposure
exceeded all expectations, running at five times the 1998 race. The next
Clipper race begins in October 2002 and crew signings are running at double
the rate we had for the 2000 event. Our highly successful city-sponsorship
formula will be extended to include international cities. Naturally, media
interest will be extended further afield. The Clipper race is developing into
a truly global event.
The acquisition of the Around Alone race extends our industry leadership.
Media interest is again very high, as the symbol of the lone sailor battling
the elements is a poignant one, as demonstrated by the recent around-the-world
adventures of skipper Ellen MacArthur MBE and her yacht Kingfisher. Our first
Around Alone is scheduled to start in September 2002 and registrations have
already been received for this prestigious event from some of the world's
leading sailors.
Our Corporate Sailing Division has entered its second year of operations. The
departure of our Corporate Director and some key staff affected the division's
performance for a period. However, their replacements have proved excellent. A
major new series of events are being negotiated such as the Clipper Industry
Championship which pits teams from vertical industry sectors against each
other and in so doing extends the Clipper Ventures brand among professionals
with high disposable incomes.
Board
Clipper Ventures has further strengthened its Board with the appointment of
Jeremy Knight as Finance Director in July 2001. A Fellow of the Chartered
Institute of Management Accountants, Jeremy joined us from Guilbert Limited,
part of the French PPR Group, where he was Financial Controller. Jeremy is
also a veteran of the 1998 Clipper race, in which he was watch leader aboard
the yacht Thermopylae.
Also in July, Tim Cowper, our previous Financial Director, retained his link
with Clipper Ventures by becoming a non-executive director. Michael Frank has
resigned as non-executive Director and the Board would like to express its
thanks to Michael for his services.
These changes, combined with the strengthening of our marketing and promotion
team, have equipped Clipper Ventures with the management skills to capitalise
on the enormous opportunities we have for continued growth.
Outlook
Last year we grew the business and reduced the loss by 65 per cent. The
company is now cash-generative and we expect to continue growing the business
in the current year and to record a significant profit after making
substantial investments in establishing the business. Our brand awareness and
value has been enhanced, demand for berths on our racing yachts is stronger
than ever and our increasing profile and expertise in the sponsorship arena is
leading to bigger and better deals. Clipper Ventures will continue to look for
premier events such as Around Alone for further brand extensions and increased
revenue.
Sir Robin Knox Johnston
Chairman
GROUP PROFT AND LOSS ACCOUNT Year ended Period from 01
30 April February 1999 to
2001 30 April 2000
# #
GROUP TURNOVER 2,774,901 1,610,438
Cost of sales (1,827,197) (1,204,603)
------------- -------------
GROSS PROFIT 947,704 405,835
Administrative expenses (1,272,417) (1,415,458)
------------- -------------
OPERATING LOSS (324,713) (1,009,623)
Profit on disposal of fixed assets 66,357 -
------------- -------------
(258,356) (1,009,623)
Interest receivable 278 380
Interest payable (159,622) (185,640)
------------- -------------
LOSS ON (417,700) (1,194,883)
ORDINARY ACTIVITIES
BEFORE TAXATION
Tax on loss - -
on ordinary
activities
------------- -------------
LOSS ON (417,700) (1,194,883)
ORDINARY ACTIVITIES
AFTER TAXATION
Minority 1,063 -
interests
------------- -------------
LOSS (416,637) (1,194,883)
FOR THE
FINANCIAL YEAR
------------- -------------
Earnings per share (pence) (3.31) (11.83)
------ -------
All of the activities of the company are classed as continuing.
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Period from
Year to 1 February 1999 to
30 April 2001 30 April 2000
# #
Loss for the financial year
attributable to the members
of the parent company (416,637) (1,194,883)
Impairment adjustment - (326,460)
---------- -------------
Total recognised gains and
losses relating to the year (416,637) (1,521,343)
Prior year adjustment - (292,198)
---------- -------------
Total gains and losses
recognised since the last
annual report (416,637) (1,813,541)
---------- -------------
GROUP BALANCE SHEET
As at 30 April 2001 As at 30 April 2000
# # # #
FIXED ASSETS
Intangible assets 109,475 -
Tangible assets 2,957,455 3,127,702
Investments 29,401 -
--------- ---------
3,096,331 3,127,702
CURRENT ASSETS
Stocks 202,230 292,583
Debtors 2,282,384 2,464,219
Cash at bank and
in hand 1,229 6,867
--------- ---------
2,485,843 2,763,669
CREDITORS: Amounts
falling due within
one year (3,370,780) (3,355,697)
--------- ---------
NET CURRENT
LIABILITIES (884,937) (592,028)
--------- ---------
TOTAL ASSETS LESS
CURRENT LIABILITIES 2,211,394 2,535,674
CREDITORS: Amounts
falling due after
more than one year (1,269,268) (1,675,858)
--------- ---------
942,126 859,816
--------- ---------
CAPITAL AND RESERVES
Called-up equity share
capital 328,202 318,768
Share premium account 2,091,613 1,601,047
Profit and loss account (1,476,636) (1,059,999)
--------- ---------
943,179 859,816
Minority interests (1,053) -
--------- ---------
Shareholder Funds 942,126 859,816
--------- ---------
COMPANY BALANCE SHEET
As at 30 April 2001 As at 30 April 2000
# # # #
FIXED ASSETS
Intangible assets 109,475 -
Tangible assets 2,957,455 3,127,702
Investments 29,491 -
--------- ---------
3,096,421 3,127,702
CURRENT ASSETS
Stocks 202,230 292,583
Debtors 2,282,384 2,464,219
Cash at bank and
in hand 1,229 6,867
--------- ---------
2,485,843 2,763,669
CREDITORS: Amounts
falling due within
one year (3,360,145) (3,355,697)
--------- ---------
NET CURRENT
LIABILITIES (874,302) (592,028)
--------- ---------
TOTAL ASSETS LESS
CURRENT LIABILITIES 2,222,119 2,535,674
CREDITORS: Amounts
falling due after
more than one year (1,269,268) (1,675,858)
--------- ---------
952,851 859,816
--------- ---------
CAPITAL AND RESERVES
Called-up equity share
capital 328,202 318,768
Share premium account 2,091,613 1,601,047
Profit and loss account (1,466,964) (1,059,999)
--------- ---------
SHAREHOLDERS' FUNDS 952,851 859,816
--------- ---------
GROUP CASH FLOW STATEMENT
Period from 1 February
Year to 1999 to
30 April 2001 30 April 2000
# # # #
NET CASH INFLOW/(OUTFLOW) FROM 372,283 (1,078,729)
OPERATING ACTIVITIES
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest received 278 380
Interest paid (157,736) (276,136)
Interest element of hire
purchase agreements (1,886) (1,415)
Non equity dividends paid - (16,000)
--------- --------
NET CASH (159,344) (293,171)
OUTFLOW FROM
RETURNS ON INVESTMENTS
AND SERVICING OF FINANCE
CAPITAL EXPENDITURE
Payments to acquire
intangible fixed assets (117,475) -
Payments to acquire
tangible fixed assets (83,374) (779,798)
Receipts from sale of
fixed assets 2,638 -
NET CASH (198,211) (779,798)
OUTFLOW FROM
CAPITAL EXPENDITURE
ACQUISITIONS AND DISPOSALS
Acquisition of investments (123,514) -
Disposal of investments 160,470 -
--------- --------
NET CASH FLOW FROM 36,956 -
ACQUISITIONS AND
DISPOSALS
--------- ---------
CASH 51,684 (2,151,698)
INFLOW/(OUTFLOW)
BEFORE FINANCING
FINANCING
Issue of equity
share capital 9,434 31,656
Share premium on
issue of equity
share capital 490,566 1,351,531
Issue of
repayment of
non-equity share
capital - (200,000)
Net inflow
of bank loans (280,691) 200,417
Net outflow
from loans - (248,170)
Capital element of
hire purchase rental
agreements (7,634) 11,434
--------- ---------
NET CASH (INFLOW)/
OUTFLOW FROM FINANCING 211,675 1,146,868
--------- -----------
INCREASE/(DECREASE)
IN CASH 263,359 (1,004,830)
--------- -----------
RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES
Period from
Year to 1 February 1999 to
30 April 2001 30 April 2000
# #
Operating loss (324,713) (1,009,623)
Depreciation 253,281 211,189
Amortisation 8,000 -
Loss on disposal of fixed assets 3,142 1,898
Decrease/(Increase) in stocks 90,353 (269,778)
Decrease/(Increase) in debtors 181,835 (910,655)
Increase in creditors 160,385 898,240
-------- ----------
Net cash inflow/
(outflow)from
operating activities 372,283 (1,078,729)
-------- ----------
Notes to the Preliminary Statement of results
1) RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
2001 2000
# # # #
Increase/(Decrease) in cash in
the period 263,359 (1,004,830)
Net cash inflow
from bank loans - (200,417)
Net cash outflow
from bank loans 280,691 248,170
Net cash outflow/
(inflow)in respect
of hire purchase
agreements 7,364 (11,434)
------- ----------
Change in net debt
resulting from cash flows 551,414 (968,511)
Net debt at 1st May 2000 (2,073,415) (1,104,904)
--------- ---------
Net debt at 30th April 2001 (1,522,001) (2,073,415)
--------- ---------
ANALYSIS OF CHANGES IN NET DEBT
At 1 May 2000 Cash flows At 30 April 2001
# # #
Net cash:
Cash in hand and
at bank 6,867 (5,638) 1,229
Overdrafts (1,301,067) 268,997 (1,032,070)
--------- --------- ---------
(1,294,200) 263,359 (1,030,841
--------- --------- ---------
Debt:
Debt due
within 1
year (286,213) 105,633 (180,580)
Debt due
after 1 year (474,513) 175,058 (299,455)
Hire purchase
agreements (18,489) 7,364 (11,125)
--------- --------- ---------
(779,215) 288,055 (491,160)
--------- --------- ---------
--------- --------- ---------
Net debt (2,073,415) 551,414 (1,522,001)
--------- --------- ---------
EARNINGS PER SHARE
Period from
Year to 1 February 1999 to
30 April 2001 30 April 2000
Earnings (3.31) (11.38)
per ordinary
share (pence)
Basic earnings per share have been calculated on the loss on ordinary
activities after taxation of #417,700 (2000: #1,194,883) using the weighted
average number of shares in issue of 12,595,714 (2000: 10,101,639).
There is no dilutive effect of the options and warrants on the loss
for the year ended 30th April 2001.
DIVIDENDS
The Directors do not recommend the payment of a dividend.
2) TURNOVER
The turnover and loss before tax are attributable to the principal
activities of the company.
An analysis of turnover is given below:
Period from
Year to 1 February 1999 to
30 April 2001 30 April 2000
# #
Round the world yacht race 1,939,956 1,382,651
RIBS sales 111,882 -
Corporate Hospitality and management training 539,544 195,660
Clothing sales 155,315 8,246
Other 28,204 23,881
------ ------
United Kingdom 2,774,901 1,610,438
--------- ---------
3) OPERATING LOSS
Operating loss is stated after charging:
Period from
Year to 1 February 1999 to
30 April 2001 30 April 2000
# #
Depreciation 253,821 211,189
Amortisation 8,000 -
Operating lease rentals on land and 49,802 23,385
buildings
Flotation costs 1,115 64,021
Auditors' remuneration
- as auditors 13,750 12,000
- accountancy 9,644 24,773
------ -------
4) PARTICULARS OF EMPLOYEES
The average number of staff employed by the group during the financial
year amounted to:
Period from
Year to 1 February 1999 to
30 April 2001 30 April 2000
No. No.
Management 4 3
Administrative 14 9
Yacht personnel 23 13
-- --
41 25
-- --
The aggregate payroll costs of the above were:
Period from
Year to 1 February 1999 to
30 April 2001 30 April 2000
# #
Wages and salaries 772,845 641,906
Social security costs 80,836 62,573
Other pension costs - 1,763
------- -------
853,681 706,242
------- -------
5) INVESTMENTS
Group Investments
COST #
Additions 123,514
Disposals (94,113)
-------
At 30th April 2001 29,401
-------
NET BOOK VALUE
At 30th April 2001 29,401
30th ------
The Company and Group own 2,139,933 0.25p ordinary shares of an AIM
listed company representing less than 3% of the issued share capital. This is
valued at cost, however the market value at 30 April 2001 was #42,799.
Company Group companies Investment Total
# # #
COST
Additions 90 123,514 123,604
Disposals - (94,113) (94,113)
-- ------- -------
At 30th April 2001 90 29,401 29,491
-- ------- -------
NET BOOK VALUE
At 30th April 2001 90 29,401 29,491
-- ------- -------
Clipper Ventures acquired 9,010 ordinary shares of 1p each in Clipper Ventures
Online Limited. This represents a 90.1% shareholding. Clipper Ventures
Online Limited provides internet services and was incorporated in England.
6) TRANSACTIONS WITH THE DIRECTORS
During the period there were no management charges (2000: #3,123) invoiced to
Clipper Ventures Plc by Gibson Ward Limited, a company in which Mr W Ward is a
director and majority shareholder. During the previous financial year,
premises occupied by the company were rented from Gibson Ward Limited on a
normal commercial basis, during the year ended 30 April 2001 Nil was charged
(2000: #23,695).
During the year the RIBS division was sold to RIBS UK Limited, a company in
which Mr W Ward is a director and majority shareholder, for the sum of #
150,000. As at the 30 April 2001 #25,000 was due payable and is included
within other debtors.
There were sales in the year to RIBS UK Limited of # 40,767 (2000: Nil) and
purchases made from RIBS UK Limited of #2,554 (2000: Nil). As at 30 April
2001 the balance due payable was #29,120 (2000: Nil).
7) SHARE CAPITAL
Authorised share capital:
2001 2000
# #
20,473,373 Ordinary shares of #0.01 each 204,734 205,000
200,000 Preference shares of #1 each - 200,000
195,000 Deferred shares of #1 each - 195,000
19,526,627 Deferred shares of #0.01 each 195,266 -
------- -------
400,000 600,000
------- -------
Allotted, called up and fully paid:
2001 2000
No. # No. #
Ordinary 13,293,569 132,936 12,376,800 123,768
shares #0.01
Deferred - - 195,000 195,000
shares #1
Deferred 19,526,627 195,266 - -
shares #0.01
--------------- ---------- --------------- ----------
32,820,196 328,202 12,571,800 318,768
--------------- ---------- --------------- ----------
The following ordinary shares were allotted during the year in order to
raise additional working capital:
Date of issue Nominal Value of Number of shares Consideration
shares issued received
25.01.01 1p 943,396 500,000
On 8th December 2000 a special resolution was passed to sub-divide the
#1 deferred shares into 1p deferred shares. In addition 26,627 ordinary 1p
shares were converted to deferred 1p shares.
The 1,925,627 1p deferred shares do not entitle the holder to a
certificate in respect thereof or to payment of any dividend or other
distribution or to receive notice or attend or vote at any general meeting of
the company or on return of the capital to the repayment of the amount paid up
on until after repayment of the capital paid up on the Ordinary Shares
together with a payment of #1,000,000 on each Ordinary Share and the Deferred
Shares shall not be capable of transfer at any time other than with the
consent of the directors. These deferred shares are therefore classified as
non-equity shares.
SHARE WARRANTS
Number at 01.05.00 Number at 30.04.01 Price Exercisable
750,000 750,000 40p 31.3.98 - 30.3.03
No new share warrants were granted during the year.
SHARE OPTIONS
As at 30 April 2001 options over the ordinary share had been granted
as follows:-
Number of options Lapsed in Number of options Option Exercisable
at 1.5.00 year at 30.4.01 Price
300,000 (150,000) 150,000 40.0p 24.08.02 -
22.08.09 +
175,000 - 175,000 40.0p 31.03.00 -
31.03.05 +
- (125,000) 164,120 45.5p 14.12.03 -
14.12.13 +
- - 13,627 45.5p 14.12.03 -
14.12.07 +
- - 329,670 45.5p 14.12.01 -
14.12.06 +
400,000 400,000 69.5p 23.03.01 -
23.03.07
125,000 125,000 50.0p 05.01.00 -
05.01.03
175,000 175,000 55.0p 05.01.00 -
05.01.04
95,000 95,000 60.0p 05.01.00 -
05.01.05
48,928 48,928 70.0p 05.01.00 -
05.01.06
+ The Company's earnings per share must be equal or exceed by 6% the growth of
RPI over the period determined by the remuneration committee commencing no
earlier than the financial year in which the option was granted.
8) The preliminary statements have been prepared on a consistent basis as
the results of the year ended 30 April 2000.
9) The company's financial statements for 2001 from which the figures
contained in this statement have been extracted have not yet been reported on
by the company's auditors or filed with the registrar of companies.
10) The preliminary announcement was approved by the board of directors on
14th September 2001
11) The annual report and accounts will be sent to shareholders by 31st
October 2001 and will be available from the company's offices at: Shamrock
Quay, William Street Northam, Southampton, SO14 5QL
Further information from:
Richard Cooper Managing Director and Jeremy Knight Financial Director 02380
237 088
Ashley Nield Woodside Communications (mobile) 07730 435 420 (office) 020 7435
0901
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