RNS Number:8417F
RAM Investment Group PLC
30 November 2004
FOR IMMEDIATE RELEASE 30 November 2004
RAM INVESTMENT GROUP PLC ("the Company")
Preliminary Announcement of results for the year ended 31 May 2004
HIGHLIGHTS
* Net assets #424,756 (2003: #502)
* Disposal of Stack Leisure Park for profit of #329,171
* Joint venture with FIFPro (Federation Internationale des Associations de
Footballeurs Professionnels) for major international football awards event
* Commercial partnership with Celador Music & Events, to the produce the
FIFPro event
For further information please contact:
Edward Adams,
RAM Investment Group PLC
020 7349 2001
Roland Cornish/Rod Venables,
Beaumont Cornish
020 7628 3396
James Chandler,
Beattie Financial
020 7398 3308/07771 787098
RAM INVESTMENT GROUP
Chairman's Statement
Financial Results
The results for the 12 months to 31 May 2004 for RAM Investment Group plc show a
profit on ordinary activities before taxation of #329,171, comprising the net
profit on the sale of the Stack Leisure Park, Dundee less the normal
administrative operating costs of the Company. As at 31 May 2004 the Company had
net assets of # 424,756 compared to #502 as at 31 May 2003.
The Stack Leisure Park
On 7 August 2003, the Company announced that it had, through its wholly owned
subsidiary, Fullwork Limited ("Fullwork"), exchanged a contract to purchase the
Feuhold of the Stack Leisure Park, Lochee, Dundee for #7,105,000.
The completion date for the acquisition was set for 2 August 2004, or earlier,
upon Fullwork giving the vendor 4 weeks written notice. A deposit of 10 per cent
of the purchase price was paid to the vendor.
Prior to the Company acquiring its interest in the site, the Directors had been
in dialogue with a number of potential tenants for the vacant space and had also
been in discussions with the Local Authority regarding a potential change of use
to include, but not be limited to, retail zoning. In the announcement of the
acquisition, the Directors stated that the transaction represented the first
step in the establishment of the Company's new business strategy. The Directors
believed that it would deliver value to shareholders over time significantly in
excess of the acquisition and financing costs.
Over the subsequent months, offers and approaches were received to acquire some
or all of the Stack Leisure Park units and the Directors considered these
offers, both in the context of the potential value that they could bring to the
Company and its shareholders and in the timescale under which they could be
achieved.
The Directors also considered a number of other potential investment
opportunities and, after some consideration, took the decision to sell the Stack
Leisure Park in order to focus their time and resources on new opportunities
using the anticipated investment profit from this transaction and other sources
of finance available to them.
On 16 April 2004, the Company announced that through its wholly owned
subsidiary, Fullwork, it had concluded a contract to sub-sell the Stack Leisure
Park in Lochee, Dundee for #8,150,000. This contract was completed on 21 July
2004, in advance of the expected completion date of 2 August 2004.
On completion of this sale, the Company realised a profit before costs of
#1,045,000 on the transaction and a profit after costs, but before provision for
taxation, of #329,171.
RAM MEDIA
FIFPro Joint Venture
On 4 October 2004, the Company announced that a newly established subsidiary,
RAM Media Limited, had entered into a 50/50 joint venture with FIFPro
(Federation Internationale des Associations de Footballeurs Professionnels) to
host the world's first football awards where the nominees are voted for by
professional football players from around the globe.
Joint Venture
RAM Media has acquired the exclusive rights to the event for a five-year period
with an option to extend the rights after the first five events. The acquisition
of the rights allows RAM Media, in partnership with FIFPro, to exploit all
media, broadcast, production, promotion and commercial sales opportunities
including sponsorship, merchandising, licensing, SMS and all telephone and other
rights during the period. RAM Media also plans to include music performances at
the event from the world's premier music artists.
RAM Media acquired the rights for a cash consideration of Euro400,000 per annum and
the Directors believe that as well as being a revenue generating transaction in
its own right the deal will present opportunities for revenue growth over the
period of the joint venture as more opportunities are leveraged.
The Awards
The first of the annual FIFPro WORLD XI PLAYER AWARDS ceremonies will be held in
London in September 2005 and cater for up to 2,000 guests. FIFPro will organise
footballers from 40 member countries to vote for the 11 best footballers. The
event will feature 12 awards chosen by the players. Each of FIFPro's 38,000
members will be invited to take part in a secret ballot to determine the 4
defenders, 4 midfielders, 2 forwards and the goalkeeper they most admire.
The one player that receives the most votes overall will be named as 'WORLD
PLAYER OF THE YEAR'. In addition, the FIFPro Awards Committee will vote to
decide the recipient of a thirteenth award, the 'WORLD XI LEGEND', which will be
given to an individual who has made an outstanding contribution to the game of
football, both on and off the pitch.
Celador Music & Events
RAM Media has also entered into a commercial partnership with Celador Music &
Events, a subsidiary of Celador International, that will enable Celador to
produce the event which will include music performances from the world's premier
music artists. Celador International is a company which specialises in the
development, distribution and licensing of some of the world's most successful
television shows including Who Wants To Be A Millionaire?
DIVE DOME LIMITED ("DIVE DOME")
During the past 5 months the Company's executives have invested time and
resources in developing and supporting Dive Dome, a newly formed subsidiary of
the Group, which plans to develop the world's first indoor warm water scuba
diving centre.
Dive Dome has an option on a 5.8 acre site in Milton Keynes from English
Partnership on which it has outline planning permission for the leisure
facility. Further details of the design and the features of the project can be
found on the dedicated web site www.divedome.com. The build cost of the scheme
is estimated at # 25m (the "projected funding requirement") and the Company is
in discussions with Founder Members, banks and other sources of finance in order
to be able to secure this projected funding requirement. It is not the intention
of the Directors at this time to seek any further funding from the shareholders
of the Company in support of this project other than that already committed from
existing cash reserves. The Directors expect that by March 2005 they will know
or will be able to assess whether the projected funding requirement has been or
can be achieved and it will then be some time after that before the full
commercial impact of such a leisure facility can be determined. Whilst the
Directors have been considerably encouraged by the reaction of the dive
community and other potential funding partners to the scheme there is no
guarantee that the Dive Dome concept will be developed.
Future Prospects
The prospects over the next 12 months will be particularly dependent upon the
success of the commercial arrangements entered into with FIFPro and Celador and
in particular Celador's ability to generate firm interest in the TV and
sponsorship rights to the event, the sale of tables to corporate hosts for the
evening and other income that can be generated from competitions and interactive
rights. Shareholders will be kept informed of developments as and when
announcements are considered appropriate for release by our commercial partners.
Change of Name
Shareholders approved the change of the Company's name to RAM Investment Group
plc at the Company's Extraordinary General Meeting on 9 June 2003. However, due
to circumstances outside of the Company's control the change could not be
completed immediately and the name Magnum Power plc was retained until 20
February 2004 when the change to RAM Investment Group plc became effective.
Edward Adams
Chairman
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2004
2004 2003
# #
Turnover 8,159,116 -
Cost of sales (7,681,701) -
Gross profit 477,415 -
Administrative expenses (150,920) (182,637)
Operating profit/(loss)
Continuing operations 326,495 -
Discounted activities - (182,637)
326,495 (182,637)
Profit on sale of property in
discontinued - 12,170
operations
Loss on disposal of - (20,071,273)
discontinued operations
- (20,071,273)
Profit/(loss) on ordinary
activities before 326,495 (20,241,740)
interest
Other interest receivable and 2,676 644
similar income
Interest payable and similar - (18,532)
charges
Profit/(loss) on ordinary
activities before 329,171 (20,259,628)
taxation
Tax on profit/(loss) on (26,109) -
ordinary activities
Profit/(loss) on ordinary
activities after 303,062 (20,259,628)
taxation
Profit/(loss) per share 6.1p (20.3p)
Basic and diluted profit/
(loss) per share
The profit and loss account hs been prepared on the basis that all operations
are continuing operations.
There are no recognised gains and losses other than those passing through
passing through the profit and loss account.
Notes of historical cost profits and losses
2004 2003
# #
Reported profit/(loss) on ordinary activities before
taxation 329,171 (20,259,628)
Diffrence between an historical cost depreciation
charge and the actual depreciation charge of the year
calculated on the revalued amount - 747
Historical cost profit/(loss) on ordinary activities
before taxation 329,171 (20,258,881)
Historical cost profit/(loss) for the year retained
after taxation, extraordinary items and dividends 303,062 (20,258,881)
BALANCE SHEET
AS AT 31 MAY 2004
Group Company
2004 2003 2004 2003
# # # #
Fixed assets - - - -
Intangible assets - - - -
Tangible assets - - 101 -
Investments - - 101 -
Current assets - - - -
Stocks 8,883,302 4,270 296,052 4,270
Debtors 49,304 18,294 49,304 18,294
Cash at bank
and in hand 8,932,606 22,564 345,356 22,564
Creditors:
amounts falling
due within one
year (8,507,850) (22,062) (32,007) 22,062
Net current
assets 424,756 502 313,349 502
Net assets 424,756 502 313,450 502
Capital and
reserves 10,033,440 9,993,440 10,033,440 9,993,440
Called up share
capital 10,874,428 10,793,236 10,874,428 10,793,236
Share premium
account (20,484,486) (20,786,174) (20,594,418) (20,786,174)
Profit and loss
account
Equity
shareholders'
funds 424,756 502 313,450 502
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2004
# 2004 # 2003
# #
Net cash (outflow)/inflow from
operating (934,992) (158,196)
activities
Returns on investments and servicing 2,676 644
of finance
Interest received - (18,532)
Interest paid
Net cash inflow/(outflow) for returns
on 2,676 (17,888)
investments and servicing of finance
Financial investment - 744,095
Receipts from sales of tangible
assets
Net cash (outflow)/inflow for capital - 744,095
expenditure
Acquisitions and disposals - (215,636)
Sales of subsidiary undertakings (net
of cash acquired)
Net cash outflow for acquisitions and - (215,636)
disposals
Net cash (outflow)/inflow before
management of (932,316) 352,375
liquid resources and financing
Financing 121,192 -
Issue of ordinary share capital 842,134 -
Other new short term loans - (393,133)
Repayment of other long term loans - (40,300)
Repayment of other short term loans - 99,352
Repayment of loan to subsidiary
Net cash inflow/(outflow) from 963,326 (334,081)
financing
Increase in cash in the year 31,010 18,294
NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2004
----
1 Reconciliation of operating profit/(loss) to net 2004 2003
cash outflow from operating activities
# #
----
Operating profit/(loss) 326,495 (182,637)
Depreciation of tangible assets - 12,000
(Increase)/decrease in debtors (8,879,032) 463
Increase in creditors within one year 7,617,545 11,978
---- ------------ ----------
Net Cash outflow from operating activities (934,992) (158,196)
---- ------------ ----------
2 Analysis of net (debt)/ 1 June Cash Other 31 May
funds 2003 flow non-cash 2004
changes
# # # #
----
Net cash: 18,294 31,010 - 49,304
Cash at bank and in hand
---- --------- --------- ---------- ---------
Debt: - (842,134) - (842,134)
Debts falling due within one
---- year --------- --------- ---------- ---------
Net funds/(debt) 18,294 (811,124) - (792,830)
---- --------- --------- ---------- ---------
3 Reconciliation of net cash flow to movement in net 2004 2003
(debt)/funds
# #
----
Increase in cash in the year 31,010 18,294
Cash (inflow)/outflow from (increase)/decrease in (842,134) 433,433
---- debt ------------ ----------
Movement in net (debt)/funds in the year (811,124) 451,727
Opening net funds/(debt) 18,294 (433,433)
---- ------------ ----------
Closing net (debt)/funds (792,830) 18,294
---- ------------ ----------
Notes:
1. 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.
2004 2003
# #
Profit/(loss) attributable to shareholders 303,062 (20,259,628)
Weighted average number of shares in issue 4,999,344 99,934,398
.............. ...........
Profit/(loss) per ordinary share - basic and
diluted 6.1 p (20.3)p
2. The financial information set out in this document does not constitute
statutory group accounts.
3. The consolidated profit and loss account, balance sheet and cash flow
statement for the year ended 31 May 2003 shown above have been extracted
from the statutory accounts for that year on which the auditors gave an
unqualified opinion. The report and accounts for the year ended 31 May 2004
are being posted to shareholders and, after being laid before the Annual
General Meeting, will be delivered to the Registrar of Companies.
4. The preliminary announcement was approved by the Board of Directors on 30
November 2004.
5. The Board of Directors does not propose to pay a dividend.
6. Copies of the report and accounts for the year ended 31 May 2004 are being
posted to shareholders and copies may also be obtained on written request
to the Company Secretary, at the Company's principal place of business, 235
Regents Park Road, London N3 3LF.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FDDFMSSLSEIF
RAM (LSE:RAM)
Historical Stock Chart
From Jun 2024 to Jul 2024
RAM (LSE:RAM)
Historical Stock Chart
From Jul 2023 to Jul 2024
