7th Feb 2006 11:00
RAM Investment Group PLC07 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 interimresults for the six months ended 30 November 2005. The company has also announced the details of the FIFPro Awards for 2006, one ofthe company's main revenue streams. RAM has signed an agreement with the Greek Government to hold the FIFPro eventin Athens in November 2006. The Company expects to derive significant revenuesfor the 2006 event, expected to be in the order of €4m. 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 associatedwith projects such as the FIFPro Awards. After the launch of the Federation Internationale des Associations deFootballeurs Professionnels ("FIFPro") World XI Player Awards in September 2005RAM made a number of key marketing changes for the 2006 Awards. Whilst revenuesfrom the event were below expectations, the Directors still consider theinvestment to have future value for the company and that the 2005 event was asuccessful platform for the future. 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 inaugural event was held in London in 2005. The second awards ceremony willbe held in Athens in November 2006. RAM has now renegotiated the terms of its contract with FIFPro so that thecompany now has a 70% interest in the project, rather than the original 50/50split. 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. RAM is now working with its partner company, PMG, to exploit all media,broadcast, production, promotion and commercial sales opportunities includingsponsorship, merchandising, licensing, SMS and all telephone and other rights. Chairman, Edward Adams said, "The Company learned a great deal from theinaugural FIFPro event. Through our partnership with PMG we are now much betterplaced to maximise the additional revenue opportunities which will arise frombroadcasting, sponsorship and other marketing opportunities. "The company is also proposing to create golf courses and associated propertydevelopments with PMG. These projects will utilise the core skills of the RAMdirectors who, between them, have over 45 years' experience in the propertyindustry." EnquiriesRAM Investment Group PLCLaurence Selman, Director Tel: 020 8349 2001 Beattie CommunicationsTim Blythe and Loic EchaubardBeattie Communications+44 (0) 207 053 [email protected] [email protected] 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 ParallelMedia 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 biggestnames in global professional golf. Key territories of the business includeChina, South East Asia, the Spanish speaking Americas, and Europe where PMG ownsextensive commercial and broadcast rights. PMG is listed on the AlternativeInvestment Market (EPIC code: PAA). RAM has invested £500,000 in PMG in the form of a convertible loan which at thetime 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 PMGshare price of 1.5p at any time before 31 October 2008 i.e. 33,333,333 ordinaryshares in PMG. At the time of this statement the price to sell PMG stock was4.0p which would give a potential profit before costs to RAM of £0.8m albeit theliquidity effects of selling such a large position could reduce this profitsomewhat. The Directors believe that there is significant growth still to come in the PMGbusiness model which will be reflected in its share price and regard it as along term investment. Prior to conversion the loan pays interest at three percent above the LondonInterbank Offeror Rate for euro dollar deposits. In order to finance the investment the Directors made a convertible loan to RAMof £375,000 (the "RAM loan"). The Company's Nominated Adviser, Beaumont Cornish Limited, opined that the termsof the transaction were fair and reasonable insofar as the Company'sshareholders are concerned. RAM Media Limited After the launch of the Federation Internationale des Associations deFootballeurs Professionnels ("FIFPro") World XI Player Awards in September 2005RAM made a number of key marketing changes for the 2006 Awards. Whilst revenuesfrom the event were below expectations, the Directors still consider theinvestment to have future value for the company and that the 2005 event was asuccessful platform for the future. Following the 2005 event the agreement with Celador International to produce andmarket the Awards was terminated. RAM has appointed Parallel Media Group Plc as the exclusive commercial agencyfor the Awards. PMG's responsibilities will include the negotiation of futurevenues for the FIFPro Awards, the sale of sponsorship for the 2006 and futureAwards, the international television distribution of the 2006 and future Awardsand the general commercialisation of the Awards including working withinternational SMS providers. PMG has eighteen years experience in these areas and has been successful innegotiating both multiple host venues and sponsorship agreements for over 50 PGATour Golf Tournaments worldwide. European Golf Resorts RAM has also reached an in-principle joint venture agreement with PMG to createand develop championship golf courses incorporating residential and resort styleliving in Eastern Europe. The proposed joint venture provides the opportunity for both companies to takeadvantage of the synergies that exist between them. RAM's Directors have over 45years of experience in the property industry whilst PMG has extensive experiencein global golf sponsorship sales, sports marketing and media. RAM will focus on locating suitable property sites for the planning anddevelopment of future golf courses, while PMG's role will be to source and,where relevant, promote professional golf tournaments to be staged at thesevenues. The joint venture partnership aims to create high value residential and luxurygolf resort hotels at each site working in tandem with local residentialdevelopment companies. It also intends to create investment value on the resorthotels by leasing them to hotel groups. Other revenue streams for the proposed joint venture to explore are the full orpartial sale of residential property whilst PMG would retain the long termoption to promote and stage golf tournaments at each individual golf course.Another possibility, subject to each local golfing fraternity, would be the saleof 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 AdamsChairman CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR 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 itemsFIFPro 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 ordinaryactivities before interest (207,493) (276,542) (726,103) Other interest receivable andsimilar income 1,972 8,332 14,569Interest payable and similarcharges (744) - (1,015)Tax on profit/(loss) on ordinary - - -activities Profit/(loss) on ordinaryactivities 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 arecontinuing operations. There are no recognised gains and losses other than those passing through theprofit and loss account. CONSOLIDATED BALANCE SHEETAS AT 30 NOVEMBER 2005 30 November 30 November 31 May 2005 2004 2005 (Unaudited) (Unaudited) (Audited) £ £ £Fixed assetsTangible assets 4,760 61,980 - Current assetsDebtors 506,923 - 279,591Cash at bank inhand 51,092 204,297 284,324 558,015 204,297 563,915 Creditors: amountsfalling due withinone year (552,330) (109,731) (347,205) Net currentassets/(liabilities) 5,685 94,566 216,710 Net assets 10,445 156,546 216,710 Capital and reservesCalled up sharecapital 10,040,226 10,033,440 10,040,226Share premiumaccount 11,372,145 10,874,429 11,372,145Profit and lossaccount (21,401,926) (20,751,323) (21,195,661) Equityshareholders'funds 10,445 156,546 216,710 The financial statements were approved by the Board on 6 February 2006. CONSOLIDATED CASH FLOW STATEMENTFOR 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) fromoperating activities (229,700) 1,050,775 559,441 Returns on investments and servicing offinanceInterest received 1,972 8,332 14,569Interest paid (744) - (1,015) Net cash inflow/(outflow) for returnson investments and servicing offinance 1,228 8,332 13,554 TaxationUK corporation tax paid - - (26,109) Capital expenditure and financialinvestmentPayments to acquire tangible assets (4,760) (61,980) - Net cash inflow/(outflow) beforefinancing (233,232) 997,127 546,886FinancingIssue of ordinary share capital - - 504,503Other new short term loans - - 25,765Repayment of other short term loans - (842,134) (842,134) Net cash inflow/(outflow) fromfinancing - (842,134) (311,866) (Decrease)/increase in cash in theyear (233,232) 154,993 235,020 NOTES TO THE FINANCIAL INFORMATIONFOR THE SIX MONTHS ENDED 30 NOVEMBER 2005 1. Reconciliation of operating profit/(loss) to net cash outflow from operatingactivities 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 theaccounting policies set out in the statutory accounts for the year ended 31 May2005. The financial information does not constitute statutory accounts as defined inSection 240 of the Companies Act 1985. These statements do not require to bereported on by the auditors. The comparative financial information is based uponnon-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 issueduring 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 toshareholders (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 ExchangeRelated Shares:
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