Final Results
October 31 2006 - 2:00AM
UK Regulatory
Embargoed: 0700 hours 31st October 2006
Clipper Ventures Plc
Final results for the year to 30 April 2006
Clipper Ventures Plc, owner of the Clipper Round the World Yacht Race and the
VELUX 5 OCEANS race, reports itsfinal audited results for the year to 30 April
2006.
Business and financial highlights:
* Turnover up to �7.6 million (2005: �0.58 million)
* Pre-tax profit up to �0.88 million (2005: loss of �1.07 million)
* Net assets of �1.53 million (2005: �(0.19) million)
* Deferred income carried forward �5 million (2005: �6.7 million)
Sir Robin Knox-Johnston, Chairman, said:
"This year has seen further growth in our business with a substantial increase
in awareness of our brand from global sponsors. The Clipper 05-06 Round the
World Yacht Race was a great success with all crew berths completely sold out.
The response from sponsors has been overwhelmingly positive and they now
rightly see the event as a global showcase for their cities.
Increasingly we are driving the business to new levels of media coverage as
witnessed by the wide coverage of the start of the VELUX 5 OCEANS race in which
I am currently competing. More media, more awareness, and more interest in the
challenging activity of ocean sailing is giving us the foundation for higher
value for our customers and far greater returns in the business"
Enquiries, please contact:
William Ward Chief Executive Clipper Ventures plc 02392 526000
Jeff Berry Finance Director Clipper Ventures plc 02392 526000
Adam Reynolds Hansard Group plc 020 7245 1100
John Prior Corporate Synergy plc 020 7448 4414
Chairman's Statement
The year to 30 April 2006 has again seen growing recognition of Clipper
Ventures as a world leading nautical events business. The biennial Clipper
Round the World Yacht Race has continued to demonstrate a keen demand from
adventurers who wish to circumnavigate the globe - most of whom regard their
trip as the adventure of their lifetime. Coupled with this strong demand from
amateur crew, is a very sharply growing interest from leading cities of the
world to participate in this race as key sponsors. Our development continues
and we look forward with great optimism that our business model will provide
strong income growth whilst balancing risk through a portfolio of major
sponsors, many of whom are increasingly committing on a multiple race basis.
Allied to the success of the Clipper race we have been delighted with the
participation of VELUX as our principal sponsor for the VELUX 5 OCEANS. This
race is the oldest in the calendar of circumnavigation events and we are proud
to be developing the event and returning it to its rightful place at the very
top of our sport. The race will provide competitors with the ultimate challenge
when they set out from Bilbao in late October to take on 35,000 miles of solo
sailing. As with the Clipper Round the World Yacht Race we are confident and
optimistic that this race will become a key event for the Group and provide a
growing contribution to profits in the future.
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 Clipper
05-06 has been booked to profit, with a proportion carried forward in line with
the stage completion of the race. Deferred income stands at �5m and will be
released to the profit and loss account in the years to April 07 and April 08.
Group profit after taxation for the year was �0.88m. The balance sheet at 30
April 2006 shows positive net assets of �1.5m with net current liabilities of �
0.8m (after allowing for �5m of income which has been deferred).
These results are slightly lower than we expected for this year for a number of
reasons. During the race we had to undertake a substantial re-design and re-fit
of the keels on the fleet. In total this cost the Group just under �400k. We
have looked carefully at the treatment of this one-off expense and have
prudently considered that only �222k of it should be taken to capital. In
consequence we have an unexpected cost in this years profit and loss account of
�192k. Our new Finance Director has quite rightly conducted a root and branch
review of our financial records and investigated the balances therein. He has
taken a very prudent approach to a number of existing balances and made
considered provision against debtors where recovery looks unlikely. These
adjustments have created a further charge against profit in this year of circa
�200k.
As at the date of signing these accounts the company did not have a formal
agreement in place with its bankers to provide the necessary level of bank
facility to meet its working capital requirements during the next twelve
months. In consequence the auditors opinion is qualified in this respect.
The Directors believe that adequate facilities will soon be formally agreed by
the existing bankers and therefore consider it appropriate to prepare the
financial statements on a going concern basis.
Business Overview
Clipper Ventures Plc is a marine sports company with its principal 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 Round the World
Yacht Race. Ten 68 foot yachts owned by the Company and sponsored by cities
around the world race against each other during a 10 month journey. The Company
provides skippers and training, the crews are recruited from enthusiastic
amateurs who pay for their berths aboard. The most recent race, which started
on 18 September 2005 from Liverpool, is the fifth in the series and the first
with our entirely new fleet of 68ft yachts. Crew berth utilisation for this
race has been in excess of 100% (after allowing for paid cancellations) and
sponsor income has been a major factor in developing the whole race income to �
8.5m. These races are run every two years, with the next race starting in
September 2007. Sales for this race, both crew and sponsor, have been very
encouraging to date.
VELUX 5 OCEANS
The Company's second main event is the VELUX 5 OCEANS solo event, previously
known as Around Alone, a single handed around the world race. We are delighted
to have VELUX as our key sponsor partner in this race and look forward to
developing our relationship with them as the event progresses.
For this race, Clipper Ventures provides both the race management and
promotion. The boats, usually sponsored, are privately owned. Bilbao will host
both the start of the race in October as well as the finish at the end of the
North Atlantic leg. Fremantle (Western Australia) and Norfolk (Virginia) have
contracted to host the port stops.
Zapcat Racing
The third business stream of the Group is Zapcat Racing.
Clipper Ventures is international agent for the one type inflatable catamarans
used in Zapcat Racing and organises both a national championship series and a
South Coast series of events. Income is generated through boat sales, host fees
and competitor entrance fees. The business is continuing to develop although
its contribution to Group profit and turnover is small. During the year a
licensing arrangement has been entered into with a third party resident in
Dubai. The intention of this agreement is to develop a form of franchising of
this powerboat series to see it develop in waters other than the UK. If
successful it is our intention to enter into further franchise type agreements
in other geographic regions.
Outlook
Our future is driven by our desire to lead the business sector in which we
operate.
We have the most successful amateur circumnavigation venture which is supported
by some of the most important world cities and is being delivered through a top
class fleet of new racing yachts. Our expectation is that the VELUX 5 OCEANS
race will once again become the very pinnacle of elite solo sailing and we are
both excited and delighted that a corporate of the magnitude of VELUX shares
that vision. The key to Clipper Ventures' future remains in growing the
international profile of our racing events, which will lead to greater public
awareness, greater media coverage and in turn greater sponsorship interest.
Alongside these developments we are keenly following new initiatives in the
development of sailing training and in the exploitation of corporate sailing
business, both of which are aimed at gaining the maximum utilisation of our
fleet. As broadband penetration accelerates, we also recognise an increasing
upside in the commercialisation of media rights and the exploitation of our
content.
We remain extremely optimistic about the future and continuing to exploit our
leadership position within the business of ocean yacht racing
During the year and subsequent to the year end our board has been substantially
strengthened by the appointment of Jeff Berry as our new Finance Director,
David Stubley as Commercial Director and Guy Spelman as non-executive Director.
Each brings his own special expertise to the board and I both welcome my new
colleagues and look forward to working with them in the future.
Sir Robin Knox-Johnston
Chairman
Consolidated Profit and Loss Account
for the year ended 30 April 2006
2006 2005
� �
Turnover 7,625,197 581,596
Cost of sales (4,850,919) (149,868)
____________ ____________
Gross profit 2,774,278 431,728
Administrative expenses (1,838,837) (572,154)
Stock provision - (750,655)
____________ ____________
Operating profit/(loss) 935,441 (891,081)
Other interest receivable and similar 488 -
income
Interest payable and similar charges (57,084) (176,365)
____________ ____________
Profit/(loss) on ordinary activities 878,845 (1,067,446)
before taxation
Tax on profit/(loss) on ordinary - -
activities
____________ ____________
Profit /(loss) on ordinary activities 878,845 (1,067,446)
after taxation
____________ ____________
Profit /(loss) per ordinary share 2.8 (4.12)
(pence)
____________ ____________
Diluted profit/(loss) per ordinary 2.8 (4.12)
share (pence)
All results are derived from continuing operations.
There were no recognised gains or losses or other movements in shareholders'
funds other than those included in the profit and loss account above.
Balance Sheets
as at 30 April 2006
Group Company
2006 2005 2006 2005
Audited Audited Audited Audited
�'000 �'000 �'000 �'000
Fixed assets
Tangible assets 4461 3035 4413 2994
Intangible assets 321 412 86 91
Investments 150 150
4782 3448 4649 3235
Current assets
Assets held for re-sale 644 800 644 800
Stock 124 173 55 85
Debtors 4102 4385 4095 4695
Cash at bank and in hand 1 86 1 86
4871 5444 4795 5665
Creditors: Amounts (2,376) (1867) (2,179) (1,725)
falling
due within one year
Deferred income falling (3329) (4362) (3329) (4362)
due within one year
Net current liabilities (834) (785) (713) (422)
Total assets less current 3948 2662 3936 2813
liabilities
Creditors: amounts (750) (500) (750) (500)
falling due after more
than one year
Deferred income falling (1669) (2360) (1669) (2352)
due after more than one
year
Provisions for (1) - - -
liabilities
Capital and reserves
Called up share capital 504 458 504 458
Share premium 4366 3565 4365 3565
Profit and loss account (3342) (4220) (3352) (4063)
Shareholders' funds/ 1528 (197) 1517 (40)
(deficit)
Consolidated Cash Flow Statement
for the year ended 30 April 2006
2006 2005
Audited Audited
�'000 �'000
Net cash inflow from operating 931 1977
activities
Returns on investment and servicing of
finance
Interest paid (57) (176)
Taxation 2 -
Capital expenditure and financial
investments
Purchase of tangible fixed assets (1756) (2759)
Sale of tangible fixed assets -
Repayment of loans -
Purchase of subsidiary - (28)
(1756) (2787)
Net cash outflow before financing (880) (986)
Financing
Issue of ordinary share capital 46 -
Share premium on issue of equity 800 -
Repayment of debenture loans (500) (1500)
New loans 750 -
1096 (1500)
Net cash inflow/(outflow) from
financing
Increase/(decrease) in cash in the year 216 (2487)
$
Notes to the Financial Statements
For the year ended 30 April 2006
1. DIVIDENDS
The deficit on our profit and loss account precludes the payment of dividends.
It had been the intention of the directors to call an Extraordinary General
Meeting to pass a resolution enabling the company to apply to the court for the
elimination of the deficit. It is now the intention to put such a resolution to
this year's Annual General Meeting. Should the resolution be passed and the
subsequent capital reduction application to the court be successful, then
dependent upon timing of the court approval, it is the directors intention to
recommend the payment of an interim dividend of 0.5p per share in respect of
the year ending 30 April 2007.
2. EARNINGS PER ORDINARY SHARE
Profit/(loss) per share has been calculated on the net basis on the profit/
(loss) on ordinary activities after taxation of �878,845 (2005: �(1,067,446))
using the weighted average number of ordinary shares in issue of 30,859,609
(2005: 25,899,462).
2006 2005
Pence Pence
Profit/(loss) per ordinary share 2.8 (4.12)
_____________ _____________
3. RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING
ACTIVITIES
2006 2005
� �
Operating profit/(loss) 935,441 (891,081)
Depreciation of tangible assets 331,011 30,382
Amortisation of intangible assets 91,047 26,661
Decrease in assets held for re-sale 155,956 -
Decrease in stocks 49,197 34,293
Decrease/(increase) in debtors 283,527 (1,874,726)
(Decrease)/increase in creditors (914,688) 4,652,043
_____________ _____________
Net cash inflow from operating activities 931,491 1,977,572
_____________ _____________
4. STATUS OF FINANCIAL INFORMATION
The financial information set out in the announcement does not constitute the
company's statutory accounts for the years ended 30 April 2006 or 2005. The
financial information for the year ended 30 April 2005 is derived from the
statutory accounts for that year, which have been delivered to the Registrar of
Companies.
END
Clipper Ventures (LSE:CLV)
Historical Stock Chart
From Jun 2024 to Jul 2024
Clipper Ventures (LSE:CLV)
Historical Stock Chart
From Jul 2023 to Jul 2024
