18th Jul 2005 16:05
RAM Investment Group PLC18 July 2005 FOR IMMEDIATE RELEASE 18 July 2005 RAM Investment Group PLC "RAM" Preliminary results for the Year Ending 31 May 2005 Ram Investment Group PLC (RAM) has today (date) announced its full-year, auditedresults for the year ending 31 May 2005. Following a year in which the company has incurred exceptional and non-recurringcosts following its investments in the FIFPro and Divedome projects, RAM hasrecorded a pre-tax loss of £712,549. Chairman, Edward Adams, said, "In the last 12 months the company has madesignificant investments in its future. "The FIFPro World XI Player Awards - due to be held in September - are set tobecome a major part of the world football calendar. With guaranteed minimum netincome of £300,000 for the next five years, this is a very exciting project forRAM." The inaugural FIFPro awards will be held on 19 September in front of a globaltelevision audience of 650 million people. RAM Investment Group PLC Edward Adams, Chairman Tel: 020 8349 2001Nick Lebtkin, DirectorLaurence Selman, Director Beattie Communications Tim Blythe / Loic Echaubard Tel: 020 7053 6000 1. RAM Investment Group is an AIM listed investment company that focuses on investment opportunities in the property, leisure and media sectors. RAM INVESTMENT GROUP PLCCHAIRMAN'S STATEMENTFOR THE YEAR ENDED 31 MAY 2005 Results The results for the 12 months to 31 May 2005 for RAM Investment Group PLC('RAM') show a loss on ordinary activities before taxation of £712,549,comprising the normal administrative operating costs of the company of £163,535(2004 - £150,920) and non-recurring exceptional costs of £562,568. Of theseexceptional costs, £282,164 relates to obtaining the rights to the FIFPro WorldXI Player Awards and £280,404 relates to the Divedome project. As at 31 May2005, RAM had net assets of £216,710 (2004 - £424,756). RAM MEDIA LIMITED Federation Internationale des Associations de Footballeurs Professionnels("FIFPro") The Company's wholly owned subsidiary, RAM Media Limited ('RAM Media'), enteredinto a 50/50 joint venture on 4 October 2004 with FIFPro (FederationInternationale des Associations de Footballeurs Professionnels) to host theFIFPro World XI Player Awards, the world's first international football awardsevent, where the nominees are voted for by professional football players fromaround the globe. The FIFPro World XI Player Awards was formally launched at an internationalpress conference in London on 2 March 2005 in partnership with FIFPro andCelador, the television and events production company. The first event will beheld on 19 September 2005 at the Wembley Conference Centre where around 1,500guests and internationally renowned stars from the worlds of sport, music andfilm are expected to attend. The show will be broadcast to a worldwide audiencein excess of 650 million viewers. RAM Media has acquired, for €400,000 per annum, the exclusive rights to theevent for a five-year period with an option to extend the rights after the firstfive events. The acquisition of the rights allows RAM Media, in partnership withFIFPro, to exploit all media, broadcast, production, promotion and commercialsales opportunities including sponsorship, merchandising, licensing, SMS and alltelephone and other rights during the period. RAM Media also plans to includemusic performances at the event from some of the world's premier musicartists. RAM Media has also entered into a commercial partnership with Celador Music &Events Limited, a subsidiary of Celador International, which will enable Celadorto produce the event. Celador International is a company which specialises inthe development, distribution and licensing of some of the world's mostsuccessful television shows including Who Wants To Be A Millionaire? Under thesecommercial arrangements RAM will receive from Celador a minimum guaranteed feeof £300,000 per annum. Celador International represents all licensing and commercial rights connectedto the FIFPro World XI Player Awards including international television salesdistribution, products and interactive media. The company has already had a veryhigh level of response from networks in over 25 territories around the world andhas now secured agreements with broadcasters in China, Africa andHispanic-speaking US - with a total potential audience of 650m people - for thebroadcasting rights for the event. The broadcasters include: • Sky One, which has signed the exclusive UK rights• Telemundo for the Hispanic USA audience• Shanghai Media Group have acquired the rights for Dragon TV in China• Canal + Nordic for Sweden, Finland, Denmark and Norway• R.T.P. for Portugal• SuperSports for the entire African continent• Antenna 1 in Romania• Channel 2 in Iceland Celador continues to be in negotiations with other international broadcastpartners, further expanding the global reach for the show. DIVEDOME LIMITED The Company's executives have invested time and resources in the period underreview in developing Divedome Limited, a subsidiary of RAM. Divedome is a unique project to design, build and operate the first indoorsub-aqua leisure centre in the UK. RAM is in detailed discussions with a numberof corporate partners with a view to investment, construction and operation ofthe centre. The third party due diligence report has now been completed and theDirectors are of the view that this innovative leisure project would best bedeveloped in conjunction with experienced leisure operators who are expandingand developing their leisure assets. Whilst this project is still under consideration the Board believes it prudentto write off all costs incurred to date. TIGER GAMBLING On 11 January 2005 the Company announced that it had agreed heads of terms toform a joint venture with Tiger Telematics (NASDAQ: TGTL) to exploit thetechnology and design behind Tiger's mobile gaming console 'Gizmondo'specifically for applications in the areas of gambling. These heads of terms have not progressed to binding legal agreements and theDirectors feel it is appropriate to concentrate on other opportunities. Thecosts in relation to these heads of terms and negotiations have not beenmaterial. Placings On 11 January 2005 the Company placed 70,000 new Ordinary Shares of 1p each, ata price of 60p per share, fully paid and on 4 February 2005 completed a placingof 608,556 new Ordinary Shares at 76p per share, fully paid. These new Ordinary Shares rank pari passu with the existing shares in issue andrepresent 10.71 per cent of the Company's enlarged issued share capital. The netproceeds of the placings, being approximately £502,000 have been applied insupporting the Company's projects and providing working capital for the Group asa whole. The 678,556 new Ordinary Shares were admitted to trading on AIM on 10February 2005. Future Prospects The past 12 months have been a period of investment and development for thecompany and the Directors believe that the FIFPro World XI Awards are set tobecome a major revenue producing asset for the group over the next four years.Although certain projects have not been progressed, the Directors continue towork on other proposals that they believe have the potential to createshareholder value. Edward AdamsChairman RAM INVESTMENT GROUP PLCCONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 31 MAY 2005 2005 2004 £ £ Turnover - 8,159,116 Cost of sales - (7,681,701) Gross profit - 477,415 Administrative expenses (163,535) (150,920)Exceptional itemsFIFPro contract set up (282,164) -costsDivedome project costs (280,404) - Operating profit/(loss) (726,103) 326,495 Profit/(loss) on ordinaryactivities before (726,103) 326,495interest Other interest receivable 14,569 2,676and similar incomeInterest payable and (1,015) -similar charges Profit/(loss) on ordinary activitiesbefore (712,549) 329,171taxation Tax on profit/(loss) on - (26,109)ordinary activities Profit/(loss) on ordinaryactivities after (712,549) 303,062taxation Profit/(loss) per shareBasic and diluted profit/(loss) per share (13.6)p 6.1p The profit and loss account has been prepared on the basis that all operationsare continuing operations. There are no recognised gains and losses other than those passing through theprofit and loss account. RAM INVESTMENT GROUP PLC BALANCE SHEET AS AT 31 MAY 2005 -------------------------------------------------- Group Company 2005 2004 2005 2004 £ £ £ £Fixed assetsInvestments - - 102 101 --------- --------- -------- --------- - - 102 101Current assetsDebtors 279,591 8,883,302 842,157 296,052Cash at bankin hand 284,324 49,304 284,324 49,304 --------- --------- -------- --------- 563,915 8,932,606 1,126,481 345,356Creditors: amountsfalling duewithin oneyear (347,205) (8,507,850) (457,611) (32,007) --------- --------- -------- --------- Net currentassets 216,710 424,756 668,870 313,349 --------- --------- -------- --------- Net assets 216,710 424,756 668,972 313,450 ========= ========= ======== ========= Capital andreservesCalled upshare capital 10,040,226 10,033,440 10,040,226 10,033,440Share premiumaccount 11,372,145 10,874,428 11,372,145 10,874,428Profit andloss account (21,195,661) (20,483,112) (20,743,399) (20,594,418) --------- --------- -------- --------- Equityshareholders'funds 216,710 424,756 668,972 313,450 ========= ========= ======== ========= RAM INVESTMENT GROUP PLCCASH FLOW STATEMENTFOR THE YEAR ENDED 31 MAY 2005 -------------------------------------------------- 2005 2004 £ £ £ £Net cash inflow/(outflow) from operatingactivities 559,441 (934,992) Returns on investments and servicingof financeInterest received 14,569 2,676Interest paid (1,015) - Net cash inflow/(outflow) for returnson 13,554 2,676investments and servicing of finance TaxationUK corporation tax paid (26,109) - (26,109) - Net cash inflow/(outflow) before 546,886 (932,316)financing FinancingIssue of ordinary share capital 504,503 121,192Other new short term loans 25,765 842,134Repayment of other short term loans (842,134) - Net cash inflow/(outflow) from (311,866) 963,326financing Increase in cash in the year 235,020 31,010 The audited financial statements, from which the figures contained in thisstatement have been extracted, are being delivered to the Registrar of Companiesand sent to shareholders. They will be available from 2nd Floor, Supreme House,300 Regents Park Road, Finchley, London N3 2TL, free of charge, for 30 days fromposting. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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