MEDIA HOLDINGS plc
(`Media Holdings' or `the Company')
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007
Business highlights in the period:
- Name changed from Firenze Ventures plc to Media Holdings plc on 20 December
2007;
* Disposal of investment in Full Portion Media Limited on 2 July 2007 for £
120,000 and repayment in full of all outstanding loans;
* Provision against existing investment in Parkgreen Communications Limited
(`Parkgreen') following termination of Simon Robinson from the company, the
refinancing of Parkgreen and writing off within Parkgreen of all the old
issues relating to past actions of Simon Robinson.
Post balance sheet events:
* Investment in Aquarius Media plc, Red Dragon Investments plc and
Interactive Publishing plc;
* New issue of 55 million ordinary shares of 0.5p each at 0.85p per share
plus £182,500 in convertible loan notes to acquire 1,000 ordinary shares of
£1 each in Parkgreen resulting in a shareholding of 1,490 shares (49.667%)
CHAIRMAN'S STATEMENT
I am pleased to make this statement to you as Chairman of the Company.
Review of activities
The Company changed its name from Firenze Ventures plc to Media Holdings plc on
20 December 2007. The new name is more indicative of the Company's investment
strategy to seek opportunities in the public relations and marketing sectors.
The Company's principal investment as at 31 December 2007 was the 49% interest
in Parkgreen Communications Limited (`Parkgreen'), a company providing
financial and corporate public relations services to clients listed on the
London Stock Exchange, Toronto Stock Exchange and Australian Stock Exchange.
Parkgreen's latest unaudited results for the year to 31 January 2008 show
turnover of £1.8 million and post-tax profit before exceptional items of £
188,000. During late 2007, some senior management changes became necessary at
Parkgreen resulting in the departure of Simon Robinson and a substantial
injection of new funds to refinance the business and recapitalise the balance
sheet which showed a deficit of £543,000 due to the substantial write downs
resulting from past actions of the senior management of this business. Since
the year end, the Company has re-established its 49% holding in Parkgreen which
had been diluted by the refinancing that was necessary.
Accordingly, the directors are satisfied with the current outlook and future
prospects for the Parkgreen investment.
The investment in Full Portion Media Limited was disposed of in full on 2 July
2007. The consideration received was £120,000, representing the carrying value
of the investment in the balance sheet and the repayment in full of all amounts
due to the Company, including accrued interest.
Post balance sheet events
As announced on 5 February 2008, the Company acquired 6,000,000 ordinary shares
in Aquarius Media plc ("Aquarius"), representing 7.05% of that company's issued
share capital. Aquarius is a PLUS-quoted company established in July 2007 for
the purpose of making investments in the public relations and marketing
sectors. In July 2007, Aquarius acquired Full Portion Media Limited, a public
relations business which aims to create, launch and sustain clients in
prominent positions within the media.
In addition, on 5 February 2008, the Company acquired 15,500,000 ordinary
shares in Red Dragon Investments plc (`Red Dragon'), representing 11.77% of
that company's issued share capital. In September 2007, Red Dragon acquired GJA
Communications Limited, a strategic communications agency operating in the
marketing services sector, with specific emphasis on communication strategy,
public relations and event management.
The consideration for the above acquisitions was satisfied by the issue of
39,000,000 new ordinary shares at an issue price of 1 pence per share to
Financial One Securities Limited together with a convertible loan note for £
121,250. The loan note is convertible by the noteholder into a maximum of
12,125,000 new ordinary shares at 1 pence per share.
On 20 February 2008, the Company subscribed for 35,000,000 new ordinary shares
in Interactive Publishing plc (`Interactive') at 2 pence per share. Interactive
was admitted to PLUS-Markets on 20 February 2008 and on the same day acquired
Trojan Publishing Limited, a London-based publishing company with a portfolio
of around 40 titles. It has since continued to acquire other titles to add to
its portfolio. The consideration for this acquisition was £735,000 including
expenses and was satisfied by the issue of £700,000 in unsecured
non-convertible loan notes to Griffin Two Limited. The loan notes are repayable
after one year. On 7 May 2008, the Company sold 25,000,000 shares in
Interactive to Griffin Two Limited at 2 pence per share.
As stated above the Company has also re-established its 49% shareholding in
Parkgreen by issuing 55 million new ordinary shares of 0.85p each at 1p per
share and £182,500 in convertible loan notes.
Financial overview
In the period ended 31 December 2007, the Company had a turnover of £83,800,
representing management charges to Parkgreen and arrangement fees received.
Administrative costs amounted to £263,563 and provisions against investments
were £1,272,000. The Company received interest of £6,162 and paid interest of £
8,573. The loss before tax and loss per share for the period amounted to £
1,382,174 and 1.55p respectively. The Directors do not propose to declare a
dividend.
As at 31 December 2007 shareholders' funds were £218,922 and cash balances were
£992.
On 27 September 2007, Griffin Two Limited agreed to lend the Company £200,000
by way of unsecured convertible loan notes. The loan notes carry interest at a
rate of 8% and are due for repayment after three years.
On 15 November 2007, the Company agreed to loan Parkgreen £35,000 under a short
term loan facility. The facility carried interest in advance at 12% and was
repayable on 28 February 2008. On the same date, the Company agreed a £35,000
loan from Griffin Two Limited on the same terms.
Outlook
The investments to date further the Company's strategy to develop, acquire and
invest in opportunities within the public relations and marketing sectors. The
Directors are satisfied with the performance of the Company's investments to
date and continue to seek suitable acquisition targets to enhance the Company's
value.
Vince Nicholls
Chairman
PROFIT & LOSS ACCOUNT
For The Year Ended 31 December 2007
Year ended Period
31.12.07 17.08.05 to
31.12.06
£ £
Revenue 83,800 -
Administrative expenses (263,563) (238,125)
Provision against investments (1,272,000) -
Aborted acquisition costs - (279,862)
Share of profits of associates 72,000 -
_________ _________
LOSS FROM OPERATIONS (1,379,763) (517,987)
Finance revenue 6,162 12,149
Finance Costs (8,573) -
_________ _________
LOSS BEFORE TAX (1,382,174) (505,838)
Taxation - -
_________ _________
LOSS FOR THE PERIOD (1,382,174) (505,838)
_________ _________
Loss per share (note 1) (1.55)p (0.84)p
BALANCE SHEET
As at 31 December 2007
31.12.07 31.12.06
£ £
NON-CURRENT ASSETS
Financial assets - 1,671,144
Investments in associates 555,160 -
_________ _________
TOTAL NON-CURRENT ASSETS 555,160 1,671,144
CURRENT ASSETS
Investments held for resale - 150,000
Trade and other receivables 64,429 59,087
Cash and cash equivalents 992 3,233
_________ _________
65,421 212,320
CURRENT LIABILITIES
Trade and other payables (162,465) (227,368)
Borrowings (35,000) -
_________ _________
NET CURRENT (LIABILITIES)/ASSETS (132,044) (15,048)
_________ _________
TOTAL ASSETS LESS CURRENT LIABILITIES 423,116 1,656,096
NON-CURRENT LIABILITIES
Long-term borrowings (204,194) (120,000)
_________ _________
NET ASSETS 218,922 1,536,096
_________ _________
EQUITY
Issued share capital 456,417 434,083
Share premium account 1,650,517 1,607,851
Profit & loss account (1,888,012) (505,838)
_________ _________
SHAREHOLDERS' FUNDS 218,922 1,536,096
_________ _________
CASH FLOW STATEMENT
For The Period Ended 31 December 2007
Year ended Period
31.12.07 17.08.05 to
31.12.06
£ £
Cash flow from operating activities
Loss before taxation (1,382,174) (505,838)
Adjusted for:
Investment income (6,162) (12,149)
Investment expenses 8,573 -
Provision against investments 1,272,000 -
Loss on disposal of investments 30,000 -
Increase in trade and other receivables (20,638) (9,087)
Increase in trade payables (64,903) 227,368
Share of profits of associates (72,000) -
_________ _________
Net cash from operating activities (235,304) (299,706)
Cash flows from investing activities
Purchase of investments (84,016) (881,144)
Sale of investments 120,000 -
Loans received 235,000
Loans advanced (105,000) (110,000)
Loans repaid - 60,000
Interest received 6,458 12,149
Interest payable (4,379) -
_________ _________
Net cash from investing activities 168,063 (918,995)
Cash flows from financing activities
Issue of shares 67,000 1,221,934
Expenses of issue (2,000) -
_________ _________
Net cash used in financing activities 65,000 1,221,934
Net increase in cash and cash equivalents (2,241) 3,233
Opening cash & cash equivalents 3,233 -
_________ _________
Closing cash & cash equivalents 992 3,233
_________ _________
NOTES
1 Loss per share
The basic loss per share is calculated by dividing the loss for the financial
period attributable to shareholders by the weighted average number of shares in
issue. There were no dilutive securities as at 31 December 2007. The weighted
average number of shares were:
Year ended Period
31.12.07 17.08.05 to
31.12.06
Number Number
Weighted average number of shares 89,295,421 59,795,343
_________ _________
Loss per share (1.55)p (0.84)p
2 While the financial information included in this announcement has been
computed in accordance with International Financial Reporting Standards (IFRS),
this announcement does not itself contain sufficient information to comply with
IFRS. The full financial statements of the company will be prepared in
accordance with IFRS, International Accounting Standards and their
interpretations issued or adopted by the International Accounting Standards
Board as adopted for use in the European Union.
3 The financial information has not been audited or reviewed by the auditors.
This financial statement does not constitute statutory accounts within the
meaning of Section 240 of the Companies Act 1985 (the "Act").
4 The Directors have not declared a dividend for the period.
5 The final results announcement was approved by the Board of Directors on 30
May 2008. Copies of this report will be sent to shareholders and will be
available free of charge from the Company's registered office at Hilden Park
House, 79 Tonbridge Road, Hildenborough, Kent TN11 9BH.
Enquiries:
Vince Nicholls, Chairman 01732 836180
James Caithie, Dowgate Capital Advisers Limited 020 7492 4777