Interim Results
January 18 2007 - 2:02AM
UK Regulatory
RNS Number:7171P
Clipper Ventures PLC
18 January 2007
Clipper Ventures plc
Unaudited Interim results for six months ended 31 October 2006
Clipper Ventures plc ("Clipper" or the "Company") announces that in the six
month period ended 30 October 2006 the Company made a profit, before and after
tax, of #89,000 on a turnover of #3.1 million.
In the six months to 30 October 2005 the Company made a profit of #570,000 on
turnover of #3.5 million and in the year to 30 April 2006 the Company made a
profit of #879,000, before and after, tax on a turnover of #7.6 million.
Banking facilities and cash flow
In October 2006 Chay Blythe's Challenge Business failed and whilst this removes
a potential competitor its business model was essentially very different from
Clipper's with sponsorship coming from corporate sponsors whereas Clipper
operates sponsorship and support coming principally from cities worldwide.
However one unforeseen consequence of the Challenge failure was the practical
inability of our bankers to provide the degree of support required, or that they
sought to give. Overnight the appraised value of the Clipper fleet, for banking
security purposes, fell by over 50% thus removing security cover from our
facilities then in the course of negotiation. To illustrate the paradox of this
position, the appraised security value of one of our 68' boats which had
completed one circumnavigation was about the same as the actual sales proceeds
we received from one of our old 60' boats, which had completed 4
circumnavigations, in the autumn of 2006.
In the 2006 financial statements attention was drawn to the uncertainty caused
by the Company not having agreed facilities in place. At that time it was stated
that the Company had received a qualified audit opinion. However, this was not
correct and the Board is pleased to be able to report that the audit opinion the
Company received was unqualified.
Our bankers have been supportive and I am pleased to be able to report that our
banking facilities, together with the proposed placing, details of which appear
below, will now provide adequate headroom for the Company's ongoing cash
requirements.
Shareholders should be aware that the Clipper business has large swings in cash
flow and the Company anticipates being cash positive before the autumn of 2007
with no utilised facilities.
Trading prospects
The Company is now forecasting a profit before, and after, tax of approximately
#900,000 for the year ending 30 April 2007. This is somewhat reduced from
forecasts published in October 2005, the main impact being a lower than forecast
sponsorship level on the Velux 5 Oceans event and increased costs of staging the
Clipper 2005 / 2006 event which concluded in the year in question.
Clipper 2007
The next Clipper race starts in September 2007 and I am pleased to report that 6
of the 10 cities who will be sponsoring entries in the Clipper 2007 Race have
been announced. The Board is also pleased that majority are repeat supporters
from the 2005 race - Liverpool, Singapore, Glasgow, Western Australia and Durban
with Hull being a new entry. The Company is in active discussion with a number
of cities to fill the remaining slots.
Currently approximately 2/3rds of crew places have been filled. The Company is
also negotiating the allocation of a significant number of crew spaces to a
number of individual cities, allowing those cities to effectively field their
own entry both as to the boat and the crew. The Board is satisfied with progress
on crew recruitment for the 2007 race.
Velux 5 Oceans
The Velux 5 Oceans event has reached Australia and is surpassing the Company's
forecasts and expectations in terms of media coverage, especially after the
storm filled start and Robin Knox-Johnston's participation. This has resulted in
key milestones included in the principle sponsorship agreement with Velux being
achieved several months earlier than planned.
Placing
The Board is at an advanced stage in arranging a placing of new shares to raise
approximately #1,000,000 after expenses. The placing will be made using existing
authorities and will not be subject to shareholders approval.
Conversion of Directors Loans
Subject to the placing proceeding the Directors have agreed to convert #200,000
of loans made to the Company into new ordinary shares on the same terms as the
placing and subject to the passing of the appropriate authorities at the AGM.
Dividend policy
The Board have reviewed the previously stated dividend policy which envisaged a
payment of 0.5p in respect of the current accounting period. The necessary
resolutions to reduce the Company's share capital and enable dividends to be
paid will be proposed at the EGM convened for the same day as the AGM. Subject
to the actual results of the Company, the reduction of capital being approved by
shareholders, warrant holders and the Courts it is now proposed to pay a
dividend of 0.25p for the current accounting period.
Personnel
Jeff Berry's resignation as finance director and company secretary was announced
in December 2006 and the process of appointing his successor is ongoing.
For further information, please contact:
Clipper Ventures Plc, William Ward, Chief Executive Officer +44 (0) 23 9252 6000
Corporate Synergy Plc, David Seal/John Prior +44 (0)20 7448 4400
Consolidated Profit and Loss Account
6 Months to 6 Months to
31 October 2006 31 October 2005
#'000 #'000
Turnover 3,122 3,472
Cost of Sales 776 1,449
Gross Profit 2,346 2,023
Administrative Expense 2,197 1,381
Operating Profit 149 642
Profit on Sale of Fixed Assets -
Other Interest Receivable -
Interest Payable (60) (72)
Profit on Ordinary Activities Before Taxation 89 570
Taxation - -
Profit on Ordinary Activities After Taxation 89 570
Consolidated Balance Sheet
As at 31 October 2006 As at 31 October 2005
#'000 #'000
Fixed Assets
Intangible Assets 321 401
Tangible Assets 4,564 4,410
Investments -
4,885 4,811
Current Assets
Assets Held for Resale 107 800
Stock 121 157
Debtors 4,436 2,980
Cash at Bank - -
4,664 3,937
Creditors : Amounts Falling
Due Within 1 Year (2,339) (5,438)
Net Current Assets / (Liabilities) 2,325 (1,501)
Total Assets Less Current Liabilities 7,210 3,310
Creditors : Amounts Falling
Due After More than 1 Year (5,864) (2,937)
1,346 373
Capital and Reserves
Called Up Share Capital 504 458
Share Premium Account 4,366 3,565
Profit and Loss Account (3,524) (3,650)
Shareholder Funds 1,346 373
Consolidated Cash Flow Statement
6 Months to 6 Months to
31 October 2006 31 October 2005
#'000 #'000
Net Cashflow from Operating Activities 126 1,799
Returns on Investments and
Servicing of Finance
Interest Paid (60) (72)
Interest Element of Finance Lease Rentals
Net Cash Inflow / (Outflow) for returns
on Investments and Servicing of Finance (60) (72)
Capital Expenditure and Financial Investment
Payments to Acquire Tangible Assets (103) (1,581)
Net Cash Inflow / (Outflow) for
Capital Expenditure (103) (1,581)
Net Cash Inflow / (Outflow) Before Financing (37) 146
Financing
Increase / (Decrease) in Cash in the Period (37) 146
Notes to the interim results
1 Non-statutory accounts
This statement, which was approved by the board of directors on the 17 January
2007does not comprise statutory accounts as defined in Section 240 of the
Companies Act 1985 and has been neither audited nor reviewed by the Company's
auditors.
2 Interim Statement
A copy of this statement will be sent to shareholders prior to 31 January 2007.
Additional copies are available on request from the Company's registered office,
The Granary & Bakery Building, Weevil Lane, Gosport, Hampshire PO12 1FX.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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