Interim Results
January 10 2005 - 6:13AM
UK Regulatory
RNS Number:1764H
Clipper Ventures PLC
10 January 2005
Clipper Ventures plc ("Clipper" or "the Company")
Interim Results for the 6 months to October 2004
Chairman's Statement
Introduction'
Clipper Ventures has continued to see its transition into a world class event
management company in this period with a number of further sponsorship deals
being signed and partnerships being formed with International Sports marketing
agencies.
We have focused on developing each of our events individually and this focus has
resulted in an increased media profile, which has been reflected in the
increased sponsorship values we have been achieving in our contracts.
The Clipper Race
The international sponsorship strategy has been very successful and we expect to
see the benefits of this strategy in terms of sponsorship value and media
profile continue in future races going forward. Six of the ten yachts competing
in the next race are already sponsored by International Cities (Liverpool,
Durban, Perth, Jersey, Singapore, Glasgow) with the final 4 all expected to be
announced over the coming 6 month period.
The International aspect of this race has been further enhanced by the fact a
number of the ports have sponsored places for local crew, thus ensuring that
their yachts have a strong local representation. This concept is being further
developed during the 05-06 Race which will lead to a truly international race
with nations competing against nations - a vision highlighted at the start of
the development of the new race concept.
5 Oceans
The next 5 Oceans single-handed, professional race has already taken shape with
the start and finish port being secured. The event was further strengthened by
the fact that a partnership was signed with Global Sportsnet (a division of WPP
Plc) which has opened up a number of exciting sponsorship opportunities for both
this race and for the Company.
We also continue to see unprecedented competitor interest with over 70 completed
registrations of interest including some high profile professional sailors.
Zapcat Racing
This series continues to go from strength to strength with it benefiting from
the sponsorship knowledge and event organization skills of Clipper. We expect to
see the series grow over the coming period as it expands into Europe - this
started in December with their presence at the Paris Boat Show.
Sir Robin Knox-Johnston
Chairman
Operating and Financial Review
Crew Recruitment for the Clipper Race
Crew recruitment has been much stronger than in previous races, reflecting the
strength of the Clipper Race brand. All crew berths have now been sold apart
from a small proportion that are being reserved for sponsor nominated crew.
Currently #4.4 million of our crew income has been contracted. This is 82% of
our forecast crew income for the 05-06 race. We are also operating a reserve
list of crew to cover cancellations.
The Company will start selling crew places on the Clipper 07-08 race at the
January 05 London Boat Show.
Sponsorship
The Company has been developing its city sponsorship model for the Clipper Race
over recent years. This is now coming to fruition with contracted sponsorship to
date nearly 5 times the level of sponsorship of the previous race. The Company
expects to be in a position to announce the remaining 4 sponsoring cities in the
forthcoming months. The Directors are confident of achieving its sponsorship
target of #4.8mill for the Clipper 05 - 06 race (compared to #0.6 million on the
Clipper 02 race)
Fleet Build for the Clipper Races
The build of the fleet of 10 Dubois 68 yachts for future races is progressing in
line with our plans, with the project being on-time and on budget. The first
yacht was delivered in October 2004, and in its sea trials has surpassed all our
expectations. The yachts' speed will ensure an exciting race for the
competitors, while the good looks of the yacht provide the ideal backdrop for
our sponsors. The objective of the project was to move the race "up a league"
and the new yachts certainly achieve this objective.
5 Oceans
The line up of potential competitors for the 2006 edition of the race is
stronger than ever with initial registrations over 70 competitors. The Company
has announced that the race will be starting and finishing in Bilbao, Spain who
have committed #0.5 million cash to secure these rights.
In a recently announced agreement, the Company has also appointed Global
Sportsnet (a division of WPP Plc) to act as the sponsorship agent for the race.
This partnership is a very exciting development with Global Sportsnet bringing
great sponsorship expertise to the race - and with negotiations for title
sponsorship already underway.
Cash Flow
The Company offers discounts to crewmembers that make early payment. These
discounts have proved popular, and have been the key driver in generating strong
cashflow from crew income. Currently 66% of contracted crew income has been
received.
The contracted sponsors for the race so far total #3.1m (this is pure cash
payment values and excludes Value in Kind benefits which have significant cost
savings for the company) and 27% of this cash flow has been received.
Balance sheet
Improvement of the company's balance sheet to provide a firm financial footing
for future growth has been a priority for the Board. The company's balance sheet
has been strengthened, showing little debt and a conservative level of gearing.
Jeremy Knight
Finance Director
Profit and Loss Account for the period ended 31st October 2004
6 Months to 6 Months to
October 04 October 03
#'000 #'000
Turnover 155 1,505
Cost of Sales 167 1,099
Gross Profit (12) 407
Net Operating Expenses (273) 879
Operating Profit / (Loss) (285) (432)
Net Interest Payable (80) 71
Profit / (Loss) on Ordinary Activities Before Tax (365) (545)
Taxation - -
Profit / (Loss) for the Half Year (365) (545)
Balance Sheet as at 31st October 2004
As at As at
October 03 October 04
#'000 #'000
Fixed Assets
Intangible Asset 358 109
Tangible Assets 945 1,791
Investments - 29
1,303 1,929
Current Assets
Assets held for Re-sale 1,551 -
Stock 120 120
Debtors 3,373 619
Cash In Hand - -
5,044 739
Creditors : Amounts falling due within one year (1,049) (2,104)
Net Current Assets / (Liabilities) 3,995 (1,364)
Total Asset less Current Liablities 5,298 565
Creditors : Amounts due after more than one year (4,944) (500)
Total Net Assets 354 65
Capital and Reserves
Called Up Share Capital 450 367
Share Premium Account 3,423 2,500
Profit and Loss Account (3,519) (2,802)
Shareholder Funds 354 65
Cash Flow Statement for Period Ended 31st October 2004
6 Months to 6 Months to
October 04 October 03
#'000 #'000
Net Cash Inflow / (Outflow) from Operating Activities 822 (468)
Interest Paid (80) (71)
Net Cash (Outflow) / Inflow from Returns on Investments and (80) (71)
Servicing of Finance
Capital Expenditure and Acquisition of Intangible Assets (762) (78)
Increase in Invesments (260)
Capital Disposals - 508
Issues of Debentures 125
Net Cash Flow from Financing 125
Increase / (decrease) in Cash (280) 16
Analysis of Net Debt
1 May 2004 Cash Flow 31 October 2004
#'000 #'000 #'000
Cash at bank 1,641 (1,480) 161
Bank Overdrafts -
Bank Loans (1,500) 1,200 (300)
Net Cash 141 (280) (139)
Notes to the Interim Report
Period ended 31st October 2004
1. The interim accounts were approved by the Board of Directors on 7th January
2005.
2. The interim report has been prepared using accounting policies consistent
with those set out in the statutory accounts of the Company for the period
ended 30 April 2004.
3. The interim financial information is unaudited and does not constitute
statutory accounts within the meaning of section 240 of the Companies Act
1985.
4. Copies of the interim report are being sent to all shareholders and will be
available to the public from the company's registered office, Shamrock
Quay, William Street, Southampton, SO14 5QL.
5. The Directors do not recommend the payment of a dividend.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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