3rd Mar 2008 07:01
RAM Investment Group PLC03 March 2008 For immediate release 3 March 2008 RAM INVESTMENT GROUP PLC UNAUDITED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 NOVEMBER 2007 CHAIRMAN'S STATEMENT Introduction We present the Group's interim results for the six month period ended 31November 2007. Results The results for the six months to 30 November 2007 for RAM Investment GroupPLC ('RAM') show a loss on ordinary activities before taxation of £70,267(2006 - Loss of £68,434). The loss per share for the period was 1.2p (2006 - Loss of 1.2p). As at 30 November 2007 RAM had net liabilities of £35,626 (2006 - Netliabilities of £263,865). RAM Media Limited Whilst the litigation against the Greek Ministry of Culture is ongoing,placing RAM Media Limited into Administration has protected it fromcreditors relating to the cancelled FIFPro Awards Event and enabled it tofocus completely on winning the litigation. Although RAM Media remains wholly owned by RAM Investment Group plc it isnow controlled by its Administrators. The case against the Greek Ministry of Culture is still being pursued andSolicitors and Counsel willing to act on a Conditional Fee Agreement havebeen engaged, with the support of After The Event (ATE) insurance. A trialhas been scheduled to be held on 3-10 June 2008 and 16-19 June 2008. TheDirectors still consider that there is a good prospect of success togetherwith recovering a substantial amount in damages. Future Prospects Whilst the future of RAM Media Limited is dependent on the success of thecase against the Greek Ministry of Culture, RAM Investment Group continuesto consider a variety of investment opportunities and announcements willfollow when appropriate. Edward AdamsChairman Contact: Laurence Selman, Ram Investment Group plc on 020 8349 2001 Roland Cornish, Beaumont Cornish Limited on 020 7628 3396 RAM INVESTMENT GROUP PLCCONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 30 NOVEMBER 2007 Six months to Six months to Year to 30 November 30 November 31 May 2007 2006 2007 (Unaudited) (Unaudited) (Audited) £ £ £ Turnover - 683,585 806,261 Cost of sales - (682,309) (1,509,829) Gross profit/(loss) - 1,276 (703,568) Administrative expenses (58,500) (55,960) (144,474)Exceptional Profit on deemed - - 700,360disposal of investment in RamMedia LimitedExceptional Write off of RAM - - (108,466)Media Limited debt to Group ---------- ----------- ----------- Loss on ordinary activities (58,500) (54,684) (256,148)before interest and taxation Other interest receivable and 2,960 2,641 10,396similar incomeInterest payable and similar (14,728) (16,391) (30,675)charges ---------- ----------- -----------Loss before taxation (70,268) (68,434) (276,427)Tax on profit/(loss) on - - -ordinary activities ---------- ----------- -----------Loss on ordinary activities (70,268) (68,434) (276,427)after taxation ========== =========== =========== Loss per share: basic (pence) (1.2) (1.2) (4.9) ========== =========== =========== 1. Loss per share The calculation of basic loss per share is based upon the loss for the periodand the weighted average number of shares in issue during the period -5,667,900 (31 May 2007 - 5,667,900, 30 November 2006 5,667,900). Given the lossfor the period, no fully diluted earnings per share is disclosed. RAM INVESTMENT GROUP PLCCONSOLIDATED BALANCE SHEET AS AT 30 NOVEMBER 2007 30 November 30 November 31 May 2007 2006 2007 (Unaudited) (Unaudited) (Audited) £ £ £Fixed assetsTangible assets 1,860 3,020 2,440Investments 375,000 375,000 375,000 ------------ ------------- ------------ 376,860 378,020 377,440Current assetsDebtors 5,283 49,340 35,494Cash at bank in hand 98,266 256,405 134,060 ------------ ------------- ------------ 103,549 305,745 169,554 Creditors: amounts (516,035) (947,630) (512,352)falling due within one year ------------ ------------- ------------ Net current liabilities (412,486) (641,885) (342,798) ------------ ------------- ------------ Net assets/(liabilities) (35,626) (263,865) 34,642 ============ ============= ============ Capital and reservesCalled up share capital 10,040,226 10,040,226 10,040,226Share premium account 11,372,145 11,372,145 11,372,145Profit and loss account (21,448,022) (21,676,261) (21,377,754) ------------ ------------- ------------Equity shareholders' funds (35,651) (263,890) 34,617Minority interest - equity 25 25 25 ------------ ------------- ------------Equity shareholders' funds (35,626) (263,865) 34,642 ============ ============= ============ RAM INVESTMENT GROUP PLCCONSOLIDATED CASHFLOW STATEMENTFOR THE SIX MONTHS ENDED 30 NOVEMBER 2007 Six months Six months Year to to to 30 November 30 November 31 May 2007 2006 2007 (Unaudited) (Unaudited) (Audited) £ £ £ Net cash inflow/(outflow) from (34,471) 245,388 122,781operating activities Investing activitiesInterest received 2,961 2,641 7,188Interest paid (744) (744) (1,488) --------- -------- --------Net cash inflow/(outflow) from 2,217 1,897 5,700investing activitiesFinancing activitiesRepayment of other short term loans (3,540) (3,540) (7,081) --------- -------- --------Net cash inflow/(outflow) from (3,540) (3,540) (7,081)financing --------- -------- --------Net (decrease)/increase in cash and (35,794) 243,745 121,400cash equivalents ========= ======== ========Cashflows from operating activitiesOperating profit/(loss) (58,500) (54,684) (256,148)Adjustment for Administration of RAM - - 524,244Media LimitedDepreciation of tangible assets 580 580 1160(Increase)/decrease in debtors 44,057 (46,494) (32,648)Increase/(decrease) in creditors (20,608) 345,986 (113,827) --------- -------- -------- (34,471) 245,388 122,781 ========= ======== ======== RAM INVESTMENT GROUP PLCCONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE SIX MONTHS ENDED 30 NOVEMBER 2007 For the six months to 30 November 2007 Share Share Premium Retained Total Capital Account Earnings Equity £ £ £ £ Opening 10,040,226 11,372,145 (21,377,754) 34,617 Loss for the period - - (70,268) (70,268) ---------- ---------- ---------- ------ Closing 10,040,226 11,372,145 (21,448,022) (35,651) ========== ========== ========== ====== For the year to 31 May 2007 Share Share Premium Retained Total Capital Account Earnings Equity £ £ £ £ Opening 10,040,226 11,372,145 (21,622,363) (209,992) RAM Media excluded from - - 521,036 521,036 consolidation Loss for the period - - (276,427) (276,427) ---------- ---------- ---------- -------- Closing 10,040,226 11,372,145 (21,377,754) 34,617 ========== ========== ========== ======== RAM INVESTMENT GROUP PLCNOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 NOVEMBER 2007 1. Basis of preparation RAM Investment Group plc (the 'Group') has historically prepared itsconsolidated financial statements under UK Generally Accepted AccountingPractice ('UK GAAP'). The AIM rules require the use of IFRS as adopted bythe EU ('Adopted IFRS'). IFRS will apply for the first time in the Group's financial statements forthe year ending 31 May 2008. Accordingly the financial results for the 6months ended 30 November 2007 have been prepared and reported under IFRS. Asthe Group publishes comparative information in its Annual Report and InterimStatement the date of transition to IFRS is 1 June 2006. This unaudited financial information has been prepared on the basis of IFRSsexpected to be applicable at 31 May 2008 including IAS 34. These are subjectto ongoing review and endorsement by the EU or possible amendment byinterpretive guidance from the IASB and are therefore still subject tochange. We will update our restated information for any such changes whenthey occur. The adoption of IFRS has an impact on the presentation of the Group'saccounts but does not change the underlying business performance. There areno changes to the business model, strategy, risk management processes orcash flows. The auditors have issued unqualified opinions on the Group's UK GAAPfinancial statements for the years ended 31 May 2006 and 31 May 2007. Boththe transition balance sheet as at 1 June 2006 and the financial informationfor the year ended 31 May 2007, as prepared on the above basis, will beaudited as part of the audit of the financial statements for the year ending31 May 2008. Subject to that audit, EU endorsement of outstanding standardsand no further changes from the IASB, this information is expected to formthe basis for comparatives when reporting financial results for 31 May 2008,and for subsequent reporting periods. 2. Status of Accounts The interim financial information is unaudited. The financial informationdoes not constitute statutory accounts as defined by Section 240 of theCompanies Act 1985. 3. Period of accounts The financial statements include the results of the Group for the periodfrom 1 June 2007 to 30 November 2007. The comparatives cover the periodsfrom 1 June 2006 to 31 May 2007, and from 1 June 2006 to 30 November 2006respectively. 4. IFRS Accounting Policies This section provides a summary of the Group's new accounting policies underIFRS for the year ended 31 May 2008. Basis of accounting The financial statements have been prepared in accordance with InternationalFinancial Reporting Standards as adopted by the EU as they apply to thegroup for the year ended 31 May 2008 applied in accordance with theCompanies Act 1985. The financial statements have been prepared under the historical costconvention and in accordance with applicable accounting standards. The principal accounting policies are set out below: Basis of consolidation The Group accounts consolidate the accounts RAM Investment Group plc and allits subsidiary undertakings. Intra-company balances, and any unrealisedgains and losses or income and expenses arising from intra-grouptransactions, are eliminated when preparing the consolidated financialinformation. Going concern The directors confirm that they are satisfied that the Company and theGroup have adequate resources to continue in business for the foreseeablefuture. For this reason they continue to adopt the going concern basis inpreparing the financial statements. Revenue Revenue represents amounts receivable for goods and services net of VAT andtrade discounts. Tangible fixed assets Tangible fixed assets are stated at cost or valuation less depreciation.Depreciation is provided at rates calculated to write off the cost orvaluation less estimated residual value of each asset over its expecteduseful life as follows: Fixtures, fittings & equipment 25% straight line basis Investments Investment held as fixed assets are stated at cost less provision for anypermanent diminution in value. Deferred tax Deferred tax is provided in full in respect of taxation deferred by timingdifferences between the treatment of certain items for taxation andaccounting purposes, unless the tax deferred will not crystallise in theforeseeable future. Cash and cash equivalents Cash and cash equivalents comprise cash balances with banks net of thosebank overdrafts that form an integral part of the group's cash management. Financial liabilities and equity Financial liabilities and equity instruments are classified according tothe substance of the contractual arrangements entered into. An equityinstrument is any contract that evidences a residual interest in the assetsof the group after deducting all of its liabilities. Borrowings Interest bearing bank loans and overdrafts are recorded at the proceedsreceived, net of direct issue costs. After initial recognition borrowingsare measured at amortised cost. Borrowing costs are recognised in profit or loss in the period in whichthey are incurred. Equity Equity instruments issued by the company are recorded at the proceedsreceived, net of direct issue costs. Leasing Rentals paid under operating leases are recognised in profit or loss on astraight line basis over the period of the lease. Financial Instruments FRS 26 requires the classification of financial instruments into separatecategories for which the accounting requirement is different. RAM hasclassified its financial instruments as follows: • Fixed deposits, principally comprising funds held with banks and other financial institutions and trade receivables, are classified as loans and receivables. • Investments (other than interests in joint ventures and fixed deposits) and short-term deposits (other than fixed deposits) are classified as available for sale. • Borrowings and trade payables are classified as other liabilities. Financial instruments are initially measured at fair value. Theirsubsequent measurement depends on their classification: • Loans and receivables and other liabilities are held at amortised cost. • Available for sale assets are held at fair value. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
RAM.L