Interim Results

Premier Management Holdings PLC
23 December 2002

For release at 07.00 on 23 December 2002

PREMIER MANAGEMENT HOLDINGS PLC

Interim results for the six months ended 31 October 2002

Premier Management Holdings plc (the 'Company'), the AIM-listed football agency
presents interim results for the six months ended 31 October 2002 for itself and
its subsidiaries (together, the 'Group').



Key points



•         Turnover up 33% to £1,002,000 (2001: £753,000).

•         First player investment realised showing a gain of £202,000.

•         Operating contribution up 29% to £248,000 (2001: £192,000).

•         Provisions for exceptional bad debts and strengthening of the Euro
          have contributed to a pre-tax loss for the period of £735,000 (2001:
          £168,000 profit).  No dividend is being recommended.

•         Market remains difficult with new transfer window system
          constraining activity, although the Group has had a substantial market
          share of transfers for cash consideration during November 2002.

•         Group hopes to benefit from reopening of transfer window in January
          2003 and expects higher activity levels during the summer window. 
          However, without a strong January trading in the second half of the
          year may be below Group's previous expectations.

•         Group has restructured cost base to make it more flexible and
          responsive to market conditions.

•         New offices have been opened in Turkey and the Netherlands and
          existing office in Hungary has been strengthened.



Chairman, Stuart Lucas said today,



'We are working ever more closely with various clubs.  Our discussions with
these clubs have suggested that foreign transfers will become increasingly more
important, which will leverage the investment in our offices abroad.  We
recently signed a contract with a First Division club to undertake their
scouting abroad for young players and several other clubs outsource a number of
their player issues to us.  We continue to seek and sign quality young players
on a selective basis in order to maintain the standards of service that such
players require.  We are now well placed to benefit from any recovery in the
market, which we anticipate starting in January and improving during the summer
window.'



For further enquiries contact:



Barry Gold (Joint Managing Director - Premier Management Holdings plc) 0207 456
0490





Chairman's statement



I am pleased to be able to report turnover for the six months ended 31 October
2002 of £1,002,000 (2001: £753,000) an increase of 33 per cent. over the
corresponding period of last year.  Whilst the core operating contribution of
the Group has increased 29 per cent. to £248,000 (2001: £192,000), the impact of
the convertible bond, amortisation of goodwill and provisions for potential bad
debts has resulted in a loss before taxation for the period of £735,000 (2001:
£168,000 profit).  No dividend is being recommended.



During the first quarter of the Group's financial year we benefited from acting
in the transfer of Jay-Jay Okocha to Bolton Wanderers and from the realisation
of £202,000 from our investment in Paulo Ferreira upon his transfer to Porto
from Vittoria Setubal during the summer.  However, following the closure of the
Premier League transfer window at the end of August, player movements within the
Nationwide League were also scarce.  With the well publicised financial
difficulties of many clubs in this league following the collapse of the ITV
Digital contract there are few funds available to maintain transfer activity.
Accordingly, our growth in turnover for the period under review reflects the
first contribution from Sports Player Management Ltd, which was acquired at the
end of last year.  It has also crystallised a goodwill amortisation charge for
the first time during the period under review of £212,000.



Several Nationwide League clubs have been placed in administration over the
previous six months and in most cases their future remains, at present,
unresolved.  In this environment we have decided to make full provision against
all amounts due from clubs presently in administration or in financial
difficulties although we would expect to make partial recovery in most cases.



The recent strengthening of the Euro against Sterling has required the Group to
provide for the potential foreign exchange loss on the Convertible Bond of
£124,000, which has impacted our results for the six months ended 31 October
2002.  Without this exchange loss and the exceptional bad debt charge I would
have been able to report that the Group's progress was in line with market
expectations for the full year.



The third quarter of our financial year has started slowly.  On 3 December 2002
the Daily Telegraph published a list of transfers which took place during
November.  The continuing quiet state of the Nationwide League transfer market
was demonstrated clearly by the fact that during that month only four transfers
were recorded for a fee.  The two largest fees involved were for £250,000 and
£50,000.  Although we can take comfort from the fact that the Group acted on
these two larger transactions, it is evident that there are very few deals being
pursued by a large number of agents.



Looking ahead, we hope to benefit from the re-opening of the transfer window
during January when Premiership clubs will come back into the market.  We
believe that activity will increase during the summer transfer window when clubs
release out of contract players and try to sign cheaper replacements.  However,
without a strong January we consider it likely that trading in the second half
of the year will be below our previous expectations.



In the light of current market conditions we have carried out a thorough review
of our cost base and implemented cuts designed to reduce our overhead base by at
least 30 per cent. in a full year.  We have reduced headcount and base pay
levels and increased the performance related element of the remuneration
packages of our remaining staff and Directors to bring them in line with the way
our overseas offices are structured.  I would like to thank our staff and
Directors who have appreciated the difficulties in our market place and have
accepted revisions to their contracts.  We are grateful to them all.



As part of this review we have also refocused resources where we consider that
they may be employed more beneficially.  To this end we have increased the size
of our office in Hungary and have opened new offices in Turkey and the
Netherlands.



We are working ever more closely with various clubs.  Our discussions with these
clubs have suggested that foreign transfers will become increasingly more
important, which will leverage the investment in our offices abroad.  We
recently signed a contract with a First Division club to undertake their
scouting abroad for young players and several other clubs outsource a number of
their player issues to us.



On the player representation side of the Group's business we continue to seek
and sign quality young players on a selective basis in order to maintain the
standards of service that such players require.



We are now well placed to benefit from any recovery in the market, which we
anticipate starting in January and improving during the summer window.





Stuart Lucas

Chairman



23 December 2002





Profit and loss account
For the six months ended 31 October 2002
                                                                  Six months to     Six months to       Year to
                                                                     31 October        31 October      30 April
                                                                           2002              2001          2002
                                                        Notes       (unaudited)       (unaudited)     (audited)
                                                                           £000              £000          £000

Turnover                                                                  1,002               753         1,683
Surplus on sale of investments                                              202                 -             -
                                                                          1,204               753         1,683
Fees paid out to sub-agents                                               (324)              (14)          (17)
Gross profit                                                                880               739         1,666
Administration expenses                                                   (632)             (547)       (1,326)
Operating contribution                                                      248               192           340
Exchange loss on convertible loan stock                                   (124)                 -           (3)
Amortisation on goodwill                                                  (212)               (9)          (24)
Provisions for bad debts                                                  (433)                 -          (28)
Operating profit/(loss)                                                   (521)               183           285
Interest received                                                            10                37            73
Interest paid                                                             (125)              (52)         (191)
Amortisation of finance costs                                              (99)                 -         (149)
Profit/(loss) on ordinary activities before tax                           (735)               168            18
Taxation                                                                      -              (37)          (25)
Profit/(loss) on ordinary activities after tax                            (735)               131           (7)
Transfer to share premium account                                            99                 -           149
Profit/(loss) for the period                                              (636)               131           142

Basic earnings/(loss) per share                             2           (3.01)p             0.66p       (0.03)p
Adjusted earnings per share                                 2           (1.78)p               N/a         0.70p
Fully diluted earnings per share                            2           (1.56)p             0.78p         0.71p


All amounts are derived from continuing operations

There are no recognised gains or losses other than shown in the profit and loss
account for each period.





Balance sheet
As at 31 October 2002
                                                                          As at             As at         As at
                                                                     31 October        31 October      30 April
                                                                           2002              2001          2002
                                                        Notes       (unaudited)       (unaudited)     (audited)
                                                                           £000              £000          £000
Fixed asset
Intangible assets                                                         3,941               152         3,729
Tangible assets                                                             171               185           186
Investments                                                 3             2,628             2,245         3,045
                                                                          6,740             2,582         6,960
Current assets
Debtors                                                                   2,833             1,334         2,168
Cash at bank and in hand                                                    361             3,152         1,320
                                                                          3,194             4,486         3,488
Creditors:
amounts falling due within one year                                     (1,710)             (184)       (1,515)
Net current assets                                                        1,484             4,302         1,973

Total assets less current liabilities                                     8,224             6,884         8,933

Creditors:
amounts falling due after more than one year                            (5,629)           (4,381)       (5,603)
Total assets less liabilities                                             2,595             2,503         3,330

Capital and reserves
Share capital                                                               244               200           244
Share premium account                                                     2,769             2,096         2,868
Profit and loss account                                                   (418)               207           218
                                                                          2,595             2,503         3,330





Movement in shareholders' funds
For the six months ended 31 October 2002
                                                                  Six months to     Six months to       Year to
                                                                     31 October        31 October      30 April
                                                                           2002              2001          2002
                                                        Notes       (unaudited)       (unaudited)     (audited)
                                                                           £000              £000          £000

Opening shareholders' funds                                               3,330             2,372         2,372
Shares issued                                                                                   -         1,320
Costs of shares issued written of to share premium
account                                                                                         -         (355)
Profit/(loss) for the period                                              (735)               131           (7)
Closing shareholders' funds                                               2,595             2,503         3,330





Cash flow statement
For the six months ended 31 October 2002




                                                                  Six months to     Six months to       Year to
                                                                     31 October        31 October      30 April
                                                                           2002              2001          2002
                                                        Notes       (unaudited)       (unaudited)     (audited)
                                                                           £000              £000          £000

Net cash movement on operating activities                                 (541)             (391)         (148)

Return on investments and servicing of finance
Interest received                                                            10                37            73
Interest paid                                                             (125)                 -         (191)
                                                                          (115)                37         (118)

Taxation                                                                      -                 -           (7)

Capital expenditure
Payments to acquire intangible assets                                     (225)               (4)         (133)
Receipts from disposal of intangible assets                                   -                 -             4
Payments to acquire tangible assets                                         (8)                 -          (30)
Payments to acquire investments                                           (102)                 -       (2,447)
Receipts from disposal of investments                                       563                 -             -
                                                                            228               (4)       (2,606)
Acquisitions and disposals
Payments to acquire subsidiary undertakings                               (199)                 -         (982)

Net cash outflow before management of liquid
resources                                                                 (627)             (358)       (3,861)

Management of liquid resources
Fixed asset investments                                                       -           (1,851)             -
Short term investments                                                      936                 -         (186)

Financing
Convertible bond issue                                                        -             4,938         4,938
Costs of bond issue                                                        (20)             (589)         (595)
Capital element of hire purchase                                           (10)                 -          (22)
Purchase of shares by employee trust                                      (102)                 -         (210)
Payment of deferred consideration                                         (175)                 -             -

Movement in cash during period                                                2             2,140            64





Notes to the interim accounts
For the six months ended 31 October 2002



1.      Basis of preparation

The results for the six months ended 31 October 2002 are unaudited and have not
been reviewed by the auditors.  They have been prepared on accounting bases and
policies that are consistent with those used in the preparation of the audited
financial statements of the company for the year ended 30 April 2002.



The financial statements contained in this report do not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985. The
results for the year ended 30 April 2002 were reported on by the Auditors and
received an unqualified audit report. Full accounts for the year ended 30 April
2002 have been delivered to the Registrar of Companies.



2.      Earnings per share



         The calculation of the basic earnings/(loss) per share is based on the
loss after tax of £735,000 (2001: £131,000) and on 24,433,333 ordinary shares
(2001: 20,000,000), being the weighted average number of ordinary shares in
issue during the period.



The calculation of adjusted earnings/(loss) per share is based on the basic loss
per share adjusted for the amortisation of goodwill and finance costs.



The calculation of diluted earnings/(loss) per share is based on the profit/
(loss) after tax adjusted for expense savings that would result from conversion
of the convertible bond and 31,447,971 ordinary shares (2001: 22,484,142) being
the weighted average number of ordinary shares in issue together with the
assumed conversion of all the options and convertible bond.



3.      Fixed asset investments



        Fixed asset investments are stated at cost less provision for
diminution in value.



         The company invests in the future value of players' transfer fees.
Fixed asset investments in footballers represents monies provided to clubs to
finance transfers of players.  An impairment review is carried out on the
carrying value of the investment at the end of each accounting period.



4.      Interim statement



         The interim statement will be posted to shareholders during January
2003.  Copies of the interim statement may be obtained from the company by
writing to the Company Secretary at 50 Liverpool Street, London, EC2M 7PR.





ENDS


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