RNS Number:0284Y
RAM Investment Group PLC
07 February 2006
FOR IMMEDIATE RELEASE 7 February 2006
RAM Investment Group PLC
"RAM"
INTERIM RESULTS AND DETAILS OF FIFPRO 2006
Ram Investment Group PLC (RAM) has today (7 February) announced its interim
results for the six months ended 30 November 2005.
The company has also announced the details of the FIFPro Awards for 2006, one of
the company's main revenue streams.
RAM has signed an agreement with the Greek Government to hold the FIFPro event
in Athens in November 2006. The Company expects to derive significant revenues
for the 2006 event, expected to be in the order of Euro4m.
Interim Results
The results for the six months to 30 November 2005 for RAM Investment Group PLC
('RAM') show a loss on ordinary activities after taxation of #206,265 (2004 -
Loss of #268,210).
This was largely the result of investment in, and the start up costs associated
with projects such as the FIFPro Awards.
After the launch of the Federation Internationale des Associations de
Footballeurs Professionnels ("FIFPro") World XI Player Awards in September 2005
RAM made a number of key marketing changes for the 2006 Awards. Whilst revenues
from the event were below expectations, the Directors still consider the
investment to have future value for the company and that the 2005 event was a
successful platform for the future.
Federation Internationale des Associations de Footballeurs Professionnels
("FIFPro")
The Company's wholly owned subsidiary, RAM Media Limited ('RAM Media'), entered
into a 50/50 joint venture on 4 October 2004 with FIFPro (Federation
Internationale des Associations de Footballeurs Professionnels) to host the
FIFPro World XI Player Awards, the world's first international football awards
event, where the nominees are voted for by professional football players from
around the globe.
The inaugural event was held in London in 2005. The second awards ceremony will
be held in Athens in November 2006.
RAM has now renegotiated the terms of its contract with FIFPro so that the
company now has a 70% interest in the project, rather than the original 50/50
split.
RAM Media has acquired, for Euro400,000 per annum, the exclusive rights to the
event for a five-year period with an option to extend the rights after the first
five events.
RAM is now working with its partner company, PMG, to exploit all media,
broadcast, production, promotion and commercial sales opportunities including
sponsorship, merchandising, licensing, SMS and all telephone and other rights.
Chairman, Edward Adams said, "The Company learned a great deal from the
inaugural FIFPro event. Through our partnership with PMG we are now much better
placed to maximise the additional revenue opportunities which will arise from
broadcasting, sponsorship and other marketing opportunities.
"The company is also proposing to create golf courses and associated property
developments with PMG. These projects will utilise the core skills of the RAM
directors who, between them, have over 45 years' experience in the property
industry."
Enquiries
RAM Investment Group PLC
Laurence Selman, Director Tel: 020 8349 2001
Beattie Communications
Tim Blythe and Loic Echaubard
Beattie Communications
+44 (0) 207 053 6000
Tim.blythe@beattiegroup.com loic.echaubard@beattiegroup.com
UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2005
Chairman's Statement
Parallel Media Group plc ("PMG")
On 9 August 2005, the Company announced that it agreed to invest in Parallel
Media Group plc (PMG) - a company listed on the AIM Market.
PMG owns one of the largest asset portfolios in golf and is one of the biggest
names in global professional golf. Key territories of the business include
China, South East Asia, the Spanish speaking Americas, and Europe where PMG owns
extensive commercial and broadcast rights. PMG is listed on the Alternative
Investment Market (EPIC code: PAA).
RAM has invested #500,000 in PMG in the form of a convertible loan which at the
time of investment equated to a 24.8% fully diluted shareholding.
The terms of this loan allow for a conversion into PMG Ordinary Shares at a PMG
share price of 1.5p at any time before 31 October 2008 i.e. 33,333,333 ordinary
shares in PMG. At the time of this statement the price to sell PMG stock was
4.0p which would give a potential profit before costs to RAM of #0.8m albeit the
liquidity effects of selling such a large position could reduce this profit
somewhat.
The Directors believe that there is significant growth still to come in the PMG
business model which will be reflected in its share price and regard it as a
long term investment.
Prior to conversion the loan pays interest at three percent above the London
Interbank Offeror Rate for euro dollar deposits.
In order to finance the investment the Directors made a convertible loan to RAM
of #375,000 (the "RAM loan").
The Company's Nominated Adviser, Beaumont Cornish Limited, opined that the terms
of the transaction were fair and reasonable insofar as the Company's
shareholders are concerned.
RAM Media Limited
After the launch of the Federation Internationale des Associations de
Footballeurs Professionnels ("FIFPro") World XI Player Awards in September 2005
RAM made a number of key marketing changes for the 2006 Awards. Whilst revenues
from the event were below expectations, the Directors still consider the
investment to have future value for the company and that the 2005 event was a
successful platform for the future.
Following the 2005 event the agreement with Celador International to produce and
market the Awards was terminated.
RAM has appointed Parallel Media Group Plc as the exclusive commercial agency
for the Awards. PMG's responsibilities will include the negotiation of future
venues for the FIFPro Awards, the sale of sponsorship for the 2006 and future
Awards, the international television distribution of the 2006 and future Awards
and the general commercialisation of the Awards including working with
international SMS providers.
PMG has eighteen years experience in these areas and has been successful in
negotiating both multiple host venues and sponsorship agreements for over 50 PGA
Tour Golf Tournaments worldwide.
European Golf Resorts
RAM has also reached an in-principle joint venture agreement with PMG to create
and develop championship golf courses incorporating residential and resort style
living in Eastern Europe.
The proposed joint venture provides the opportunity for both companies to take
advantage of the synergies that exist between them. RAM's Directors have over 45
years of experience in the property industry whilst PMG has extensive experience
in global golf sponsorship sales, sports marketing and media.
RAM will focus on locating suitable property sites for the planning and
development of future golf courses, while PMG's role will be to source and,
where relevant, promote professional golf tournaments to be staged at these
venues.
The joint venture partnership aims to create high value residential and luxury
golf resort hotels at each site working in tandem with local residential
development companies. It also intends to create investment value on the resort
hotels by leasing them to hotel groups.
Other revenue streams for the proposed joint venture to explore are the full or
partial sale of residential property whilst PMG would retain the long term
option to promote and stage golf tournaments at each individual golf course.
Another possibility, subject to each local golfing fraternity, would be the sale
of debentures.
Results
The results for the six months to 30 November 2005 for RAM Investment Group PLC
('RAM') show a loss on ordinary activities after taxation of #206,265 (2004 -
Loss of #268,210). As at 30 November 2005 RAM had net liabilities of #64,555
(2004 - Net assets of #156,546).
Appointment of Broker
On 1 August 2005 RAM appointed HB-corporate as broker to the Company.
Edward Adams
Chairman
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2005
Six months Six months Year to
to to
30 November 30 November 31 May
2005 2004 2005
(Unaudited) (Unaudited) (Audited)
# # #
Turnover 106,000 - -
Cost of sales (198,957) - -
Gross profit/(loss) (92,957) - -
Administrative expenses (114,536) (66,052) (163,535)
Exceptional items
FIFPro contract set up costs - (35,917) (282,164)
Divedome project costs - (174,573) (280,404)
Operating profit/(loss) (207,493) (276,542) (726,103)
Profit/(loss) on ordinary
activities before interest (207,493) (276,542) (726,103)
Other interest receivable and
similar income 1,972 8,332 14,569
Interest payable and similar
charges (744) - (1,015)
Tax on profit/(loss) on ordinary - - -
activities
Profit/(loss) on ordinary
activities after taxation (206,265) (268,210) (712,549)
(3.6)p (5.3)p (13.6)p
The profit and loss account has been prepared on the basis that all operations are
continuing operations.
There are no recognised gains and losses other than those passing through the
profit and loss account.
CONSOLIDATED BALANCE SHEET
AS AT 30 NOVEMBER 2005
30 November 30 November 31 May
2005 2004 2005
(Unaudited) (Unaudited) (Audited)
# # #
Fixed assets
Tangible assets 4,760 61,980 -
Current assets
Debtors 506,923 - 279,591
Cash at bank in
hand 51,092 204,297 284,324
558,015 204,297 563,915
Creditors: amounts
falling due within
one year (552,330) (109,731) (347,205)
Net current
assets/(liabilities) 5,685 94,566 216,710
Net assets 10,445 156,546 216,710
Capital and reserves
Called up share
capital 10,040,226 10,033,440 10,040,226
Share premium
account 11,372,145 10,874,429 11,372,145
Profit and loss
account (21,401,926) (20,751,323) (21,195,661)
Equity
shareholders'
funds 10,445 156,546 216,710
The financial statements were approved by the Board on 6 February 2006.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2005
Six months Six months Year to
to to
30 November 30 November 31 May
2005 2004 2005
(Unaudited) (Unaudited) (Audited)
# # #
Net cash inflow/(outflow) from
operating activities (229,700) 1,050,775 559,441
Returns on investments and servicing of
finance
Interest received 1,972 8,332 14,569
Interest paid (744) - (1,015)
Net cash inflow/(outflow) for returns
on investments and servicing of
finance 1,228 8,332 13,554
Taxation
UK corporation tax paid - - (26,109)
Capital expenditure and financial
investment
Payments to acquire tangible assets (4,760) (61,980) -
Net cash inflow/(outflow) before
financing (233,232) 997,127 546,886
Financing
Issue of ordinary share capital - - 504,503
Other new short term loans - - 25,765
Repayment of other short term loans - (842,134) (842,134)
Net cash inflow/(outflow) from
financing - (842,134) (311,866)
(Decrease)/increase in cash in the
year (233,232) 154,993 235,020
NOTES TO THE FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2005
1. Reconciliation of operating profit/(loss) to net cash outflow from operating
activities
Six months Six months Year to
to to
30 November 30 November 31 May
2005 2004 2005
(Unaudited) (Unaudited) (Audited)
# # #
Operating profit/(loss) (207,493) (276,542) (726,103)
(Increase)/decrease in debtors (227,332) 8,883,302 8,603,711
Increase/(decrease) in creditors 205,125 (7,555,985) (7,318,167)
(229,700) 1,050,775 559,441
2. Analysis of net (debt) / funds
1 June Cash Other non-cash 30 November
2005 flow changes 2005
# # # #
Net cash:
Cash at bank and in hand 284,324 (233,232) - 51,092
Debt:
Debts falling due within (25,765) 3,541 - (22,224)
one year
Net funds/(debt) 258,559 (229,691) - 28,868
3. Reconciliation of net cash flow to movement in net (debt)/funds
Six months Six months Year to
to to
30 November 30 November 31 May
2005 2004 2005
(Unaudited) (Unaudited) (Audited)
Increase/(decrease) in cash in the (233,232) 154,993 235,020
period
Cash (inflow)/outflow from 3,541 842,134 816,369
(increase)/decrease in debt
Movement in net (debt)/funds in the (229,691) 997,127 1,051,389
year
Opening net funds/(debt) 258,559 (792,830) (792,830)
Closing net (debt)/funds 28,868 204,297 258,559
4. Accounting policies
The interim financial statements have been prepared on the basis of the
accounting policies set out in the statutory accounts for the year ended 31 May
2005.
The financial information does not constitute statutory accounts as defined in
Section 240 of the Companies Act 1985. These statements do not require to be
reported on by the auditors. The comparative financial information is based upon
non-statutory, unaudited accounts for the six months ended 30 November 2004.
5. Profit/(Loss) per share
Profit / (Loss) per Ordinary Share is calculated by dividing the profit / (loss)
attributable to shareholders by the weighted average number of shares in issue
during the year.
Six months to Six months to Year to
30 November 30 November 31 May
2005 2004 2005
(Unaudited) (Unaudited) (Audited)
# #
Profit / (Loss) attributable to
shareholders (206,265) (268,210) (715,549)
Weighted average number of shares 5,667,900 4,999,344 5,224,347
Profit / (Loss) per Ordinary Share -
basic and diluted (3.6)p (5.3)p (13.6)p
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DGGGZGNKGVZM
RAM (LSE:RAM)
Historical Stock Chart
From Jun 2024 to Jul 2024
RAM (LSE:RAM)
Historical Stock Chart
From Jul 2023 to Jul 2024
