1st Mar 2005 07:01
RAM Investment Group PLC28 February 2005 Company Registration No. SC147230 (Scotland) RAM INVESTMENT GROUP PLC UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2004 RAM INVESTMENT GROUP PLC COMPANY INFORMATION Directors Barry Edward Adams MA (Chairman) Nicholas Simon Lebetkin Laurence Selman Secretary Iain Austen Manley Company number SC147230 Registered Office Level 2, Saltire Court 20 Castle Terrace, Edinburgh EH1 2ET Nominated Adviser Beaumont Cornish Limited Georgian House 63 Coleman Street London EC2R 5BB Auditors Newman Peters 19 Fitzroy Square London W1T 6EQ Solicitors Shepherd+ Wedderburn Level 2, Saltire Court 20 Castle Terrace Edinburgh EH1 2ET Moore & Blatch 11, The Avenue Southampton Hampshire SO17 1XF Bankers Bank of Scotland St James Gate 14-16 Cockspur Street London SW1V 5BL Registrars Capita Registrars Northern House Woodsome Park Fenay Bridge Huddersfield HD8 OLA RAM INVESTMENT GROUP PLC CONTENTS Page Chairman's Statement 4 Consolidated Profit and Loss 7 Account Consolidated Balance Sheet 8 Consolidated Cash Flow Statement 9 Notes to the Financial Information 10-12 RAM INVESTMENT GROUP PLC CHAIRMAN'S STATEMENT FOR THE SIX MONTHS ENDED 30 NOVEMBER 2004 FINANCIAL RESULTS The Group's pre-tax loss for the six months to 30 November 2004 was£268,210 (2003: loss of £55,176) comprising £57,720 administration costs,£35,917 on set up costs for the FIFPro World XI Player Awards contract viathe Company's wholly owned subsidiary, RAM Media Limited, and £174,573 forone-off exceptional expenditure on the Divedome project, primarily legaland professional fees, via the Company's wholly owned subsidiary, DivedomeLimited. RAM MEDIA LIMITED FIFPro As detailed in the Chairman's statement for the year ended 31 May 2004,theCompany'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 footballawards event, where the nominees are voted for by professional footballplayers from around the globe. RAM Media has acquired the exclusive rights to the event for a five-yearperiod with an option to extend the rights after the first five events. Theacquisition of the rights allows RAM Media, in partnership with FIFPro, toexploit all media, broadcast, production, promotion and commercial salesopportunities including sponsorship, merchandising, licensing, SMS and alltelephone and other rights during the period. RAM Media also plans toinclude music performances at the event from the world's premier musicartists. RAM Media acquired the rights for a cash consideration of €400,000 perannum and the Directors believe that as well as being a revenue generatingtransaction in its own right the deal will present further opportunitiesfor revenue growth over the period of the joint venture as suchopportunities are identified and exploited. Celador Music & Events RAM Media has also entered into a commercial partnership with Celador Music& Events Limited, a subsidiary of Celador International, that will enableCelador to produce the event which will include music performances from theworld's premier music artists. Celador International is a company whichspecialises in the development, distribution and licensing of some of theworld's most successful television shows including Who Wants To Be AMillionaire? An update on the progress of the FIFPro World XI Player Awards is expectedto be forthcoming in the near future. DIVEDOME LIMITED As described in the Chairman's statement for the year ended 31 May 2004 theCompany's executives have invested time and resources in developingDivedome Limited, a newly formed subsidiary, which plans to develop theworld's first indoor warm water scuba diving centre. As described previously, the Directors expect that by March 2005 they willknow or will be able to assess whether the projected funding requirementfor Divedome has been or can be achieved and it will then be some timeafter that before the full commercial impact of such a leisure facility canbe determined. Whilst the Directors have been considerably encouraged bythe reaction of the dive community and other potential funding partners tothe scheme there is no guarantee that the Divedome concept will bedeveloped. An update on the progress of the Divedome project is expected to beforthcoming in the near future. TIGER GAMBLING LIMITED On 11 January 2005 the Company announced that it had agreed heads of termsto form 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. The Directorsbelieve that this joint venture presents the opportunity to exploit a largeuntapped market which could generate strong revenues for the Company in themedium to long term. Joint Venture The agreement envisages a new company being formed called Tiger GamblingLimited which will be 75 percent owned by Tiger Telematics and 25 percentowned by the Company with profits generated being shared on a 50/50 basis.The Company will have day-to-day management control of Tiger GamblingLimited and will be responsible for drawing up and executing the company'sstrategy of exploiting the Gizmondo console for the gambling market.Under the Heads of Terms, the Company will be granted a global licence topromote and develop the console in the gambling market for an initial 18month period, subject to a three year extension provided that initial salestargets are achieved. Revenues are expected from many sources such asequity and currency trading, spread betting, sports betting, gaming andtraditional gambling such as poker, black jack and roulette. The devicegives gambling and betting corporations the opportunity to interact withits customers in a way they have never been able to do before. In addition,the Company anticipates additional revenues from advertising throughGizmondo's 'Smart Adds' applications which allow advertisers to delivercustomized feature-rich content to users of the device. Tiger Telematics/Gizmondo Gizmondo is a handheld mobile entertainment device that contains a 400Mhzprocessor, state of the art graphics chip and high resolution screen. Builtin GPS technology provides interactive and innovative gaming, GPRS allowshigh speed global communication applications and other features includegaming, a camera, music player, movie player, messaging and email. The newconsole for gambling will be based on the current Gizmondo device but willbe branded and marketed under a different name. PLACINGS On 11 January 2005 the Company placed 70,000 new Ordinary Shares of 1peach, at a price of 60p per share, fully paid and on 4 February 2005completed a placing of 608,556 new Ordinary Shares at 76p per share, fullypaid. These new Ordinary Shares which rank pari passu with the existing shares inissue, represent 10.71 per cent of the Company's enlarged issued sharecapital. The net proceeds of the placings, being approximately £502,000will be applied in supporting certain of the Company's current projects andproviding working capital for the Group as a whole. The 678,556 newOrdinary Shares were admitted to trading on AIM on 10 February 2005. FUTURE PROSPECTS It is expected that a further trading update will be made in the next fewweeks, providing more detail on the progress of both the FIFPro World XIPlayer Awards and Divedome. Edward AdamsChairman RAM INVESTMENT GROUP PLCCONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE SIX MONTHS ENDED 30 NOVEMBER 2004 Half year Half year Year to to to 30 November 30 November 31 May 2004 2003 2004 £ £ £ Turnover - - 8,159,116 Cost of sales - - (7,681,701) -------- -------- -------- Gross profit - - 477,415 Administration expenses (66,052) (56,708) (150,920)Exceptional items FIFPro contract set up costs (35,917) - - Divedome project costs (174,573) - - -------- -------- -------- Operating profit/(loss) (276,542) (56,708) 326,495 -------- -------- -------- Profit/(loss)on ordinary activitiesbefore interest and taxation (276,542) (56,708) 326,495 Interest receivable andsimilar income 8,332 1,532 2,676 -------- -------- -------- Profit/(loss)on ordinary activitiesbefore taxation (268,210) (55,176) 329,171 Tax on profit on ordinaryactivities - - (26,109) Profit/(loss)on ordinaryactivities after taxation (268,210) (55,176) 303,062 ======== ======== ======== Profit/(loss) per ordinary shareBasic & Diluted (5.3)p (0.57)p 6.1p There were no recognised gains or losses other than the loss for each financialperiod. RAM INVESTMENT GROUP PLC CONSOLIDATED BALANCE SHEETAS AT 30 NOVEMBER 2004 30 November 30 November 31 May 2004 2003 2004 £ £ £Fixed assets Tangible assets 61,980 - - Current assets Debtors - 1,034,781 8,883,302Cash at bank and in hand 204,297 86,710 49,304 -------- -------- --------- 204,297 1,121,491 8,932,606 Creditors: amounts falling due within one year (109,731) (1,054,974) (8,507,850) -------- -------- --------- Net current assets 94,566 66,517 424,756 -------- -------- --------- Net assets 156,546 66,517 424,756 ======== ======== ========= Capital and reservesCalled up share capital 10,033,440 10,033,440 10,033,440Share premium account 10,874,429 10,874,429 10,874,428Profit and loss account (20,751,323) (20,841,351) (20,483,112) -------- -------- --------- Equity shareholders'funds 156,546 66,517 424,756 ======== ======== ========= The financial statements were approved by the Board on 28 February 2005. RAM INVESTMENT GROUP PLC CONSOLIDATED CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 30 NOVEMBER 2004 Half year Half year Year to to to 30 November 30 November 31 May 2004 2003 2004 £ £ £ Net cash (outflow)/inflowfrom operating activities 1,050,775 (54,307) (934,992) Return on investments and servicingof financeInterest received 8,332 1,532 2,676Interest paid Net cash inflow from returns oninvestment and servicing of finance 8,332 1,532 2,676 Capital expenditure and financial investmentPayments to acquire tangible assets (61,980) - - Net cash (outflow)/inflow from capitalexpenditure and financial investment (61,980) - - Net cash inflow/(outflow) beforemanagement of liquid resourcesand financing 997,127 (52,775) (932,316) FinancingIssue of ordinary shares - 200,000 121,192Other new short term loans - - 842,134Repayment of loans (842,134) - -Expenses paid in connection withshare issues - (78,807) - Net cash (outflow)/inflowfrom financing (842,134) 121,193 963,326 ------- -------- -------Increase/(decrease) in cash andcash equivalents 154,993 68,418 31,010 ======= ======== ======= RAM INVESTMENT GROUP PLC NOTES TO THE FINANCIAL INFORMATIONFOR THE SIX MONTHS ENDED 30 NOVEMBER 2004 1 Going Concern The directors believe that the Company has adequate resources to continue in operation for the foreseeable future. For this reason they continue to adopt the going concern basis for preparing the Company's financial statements. 2 Accounting Policies 2.1 Accounting convention The financial statements have been prepared under the historical cost convention. The accounting policies are consistent with those set out in the audited financial statements for the year ended 31 May 2004 which were unqualified and did not contain a statement under section 237 of the Companies Act 1985. The financial information does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. Figures from the year ended 31 May 2004 included within this report are an abridged version of the full accounts filed with the Registrar of Companies. 3 Reconciliation of operating loss to net cash inflow from operating activities Half Year Half Year Year to to to 30 November 30 November 31 May 2004 2003 2004 £ £ £ Operating profit/(loss) (276,542) (56,708) 326,495 (Increase)/decrease in debtors 8,883,302 (1,030,511) (8,879,032) (Decrease)/increase in creditors due within one year (7,555,985) 1,032,912 7,617,545 -------- -------- --------- Net cash (outflow)/inflow from operating activities 1,050,775 (54,307) (934,992) -------- -------- -------- 4 Analysis of changes in net funds 1 June Cash 30 November 2004 Flows 2004 £ £ £ Net Cash: Cash at bank and in hand 49,304 154,993 204,297 Debt: Debts falling due within one (842,134) 842,134 - year -------- ------- -------- Net funds/(debt) (792,830) 997,127 204,297 -------- ------- -------- 5 Reconciliation of net cash flow to movement in net funds/(debt) Half year Half year Year to to to 30 November 30 November 31 May 2004 2003 2004 £ £ £ Increase (decrease) in the period 154,993 68,416 31,010 Cash outflow/(inflow) from 842,134 (781,554) (842,134) decrease/(increase) in net debt -------- -------- --------- Movement in net funds/(debt) 997,127 (713,138) (811,124) in the period Opening net funds/(debt) (792,830) 18,294 18,294 -------- -------- --------- Closing net funds/(debt) 204,297 (694,844) (792,830) ======== ======== ========= 6 Earnings/(loss) per Share Earnings/(loss) per Ordinary Share is calculated by dividing the profit/(loss) attributable to shareholders by the weighted average number of shares in issue. Half year Half year Year to to to 30 November 30 November 31 May 2004 2003 2004 £ £ £ Profit/(loss) attributable to (268,210) (55,176) 303,062 shareholders Weighted average number of 4,999,344 9,668,281 4,999,344 shares in issue Profit/(loss) per Ordinary Share (5.3)p (0.57)p 6.1p - basic & diluted This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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