Creative Entertainment Group plc

February 27, 2009 07:14 ET

Interim Results & Placing

           Creative Entertainment Group plc / Index: PLUS / Ticker: CEGO / Sector: Entertainment
                      Creative Entertainment Group plc ('Creative' or 'the Company')

                                         Interim Results & Placing
Creative Entertainment Group plc, the PLUS-quoted facilitator of music and theatrical events, announces its
results for the six month period ended 31 December 2008.

Financial highlights

*       Profit before taxation of £28k against loss of £196k for the 6 months to December 2007 and  £1,109k
        for the year to 30 June 2008 (continuing operations);
*       Administrative expenses reduced by 41% from £833k for the 6 months to 31 December 2007 to £490k;
*       Share  Capital increased by £440k in the period to 31 December 2008 and a further £206k in January
        2009; and
*       Directors have invested £175,000 in Share Capital during the period.

Artistic highlights

*       Sir  Paul  McCartney who performed in front of over 200,000 people in Quebec, Canada -  the  first
        major concert organised by our New York office and Sir Paul's only scheduled live performance in North
        America in 2008;
*       Mika  performed in Martyr's Square for 15,000 people, the first major concert in Beirut  for  more
        than two years;
*       Girls Aloud & Katherine Jenkins performed at a major private party in London;
*       Jason Donovan national theatre tour; and
*       George Michael who performed at the Sheikh Zayed Stadium in Abu Dhabi on 1st December to celebrate
        National day.

Chairman's statement

I am pleased to report our unaudited interim results for the 6 months to 31 December 2008.

In  my last statement, I referred to the fact that we had conducted a strategic review and had focussed  on
significantly  reducing  our  cost base and playing to our strengths. I am delighted  to  report  that  the
positive actions taken have now resulted in the significant improvement in bottom line performance for  the
period  under  review. The period on which we are reporting is not traditionally the most  active  for  the
company and therefore, this is an encouraging result and gives us a sound foundation for the second half of
the year.

We  started  the  second  half year with Lulu performing with Robin Gibb at the  Outward  Bound  Gala,  the
Sugarbabes performing seven shows in Zurich and soprano Lesley Garrett in Cape Town, South Africa.

The  outlook  is encouraging with a number of major international events on the horizon.  We are  therefore
able  to  anticipate  increased earnings from a higher level of activity in the second  half  of  the  year
together with the reduced cost base.

We  are  starting to see the benefit of our New York presence. The performance by Sir Paul  McCartney  last
summer  was  an  important  milestone. As a result of that we expect to see a significant  contribution  to
results  from North America during the current year as we are currently advising the City of Halifax,  Nova
Scotia,  the  Quebec International Summer Festival and the Montreal Jazz Festival, in addition  to  ongoing
client relationships with performing arts festivals and theatres throughout the US.

Progress  continues  at,  a  digital interactive  children's  networking  site,  (effective
ownership 18.75%). In the 6 months to January 2009, the site has received over 4 million visits, nearly 50%
of  which were in December & January.  ComScore has rated the site as the "stickiest" for December 2008  in
the UK children's web market and the site was nominated for a BAFTA Kid's vote award (web-site category) in
2008. Registered Users are almost 1 million, up from 440,000 approximately one year ago.

I  am  pleased to welcome Luca Tenuta as Corporate Communications Director and Alan Judd FCA as  Commercial
Director.  Luca will concentrate on capital raising and Investor/Corporate relations and Alan will  greatly
assist in the international and strategic development of the Company. George Warren and Martin Groa´k  have
stepped  down  from  the Board and I thank them for their invaluable loyalty and support through  difficult
times and wish them well in the future.

Finally, I would also like to thank my colleagues, staff and shareholders, all of whom are demonstrating  a
positive attitude for the future of your Company.

P Frohlich
26 February 2009

For further information visit or contact:

Peter Frohlich             Creative Entertainment Group plc            Tel: 020 7499 7176
Felicity Edwards           St Brides Media & Finance Ltd               Tel: 020 7236 1177
Duncan Vasey               St. Helen's Capital Plc                     Tel: 020 7628 5582

                                                     Six months ended    Six months ended          Year ended
                                                     31 December 2008    31 December 2007        30 June 2008
                                                       (unaudited)         (unaudited)           (audited)
Continuing operations                                        £                   £                   £
Revenue                                                  2,333,971           4,243,136           8,817,557
Cost of sales                                           (1,873,540)         (3,709,301)         (7,769,337)
Gross profit                                               460,431             533,835           1,048,220
Administrative expenses - normal operations               (489,779)           (832,717)         (2,073,831)
                      -   exceptional costs                       -                   -           (200,356)
Loss from ordinary activities before income tax and        (29,348)           (298,882)         (1,225,967)
finance costs
Net finance costs                                          (10,337)            (17,450)            (3,542))
                                                           (39,685)           (316,332)         (1,229,509)
Transfer from revaluation reserve in respect                67,524             120,082             120,082
of realised profit on investment
Tax on profit (loss) from continuing operations                 -                   -                   -
Net profit/(loss) from continuing operations                27,839           (196,250)         (1,109,427)
Discontinued operations                                                                                                 
(Loss)/profit from discontinued operations                       -            (57,501)           (535,268)
Profit/ (Loss) for the period from continuing and           27,839           (253,751)         (1,644,695)
discontinued operations
Attributable to:                                                                                                        
Equity holders of the parent                                27,719           (244,404)         (1,628,803)
Minority interest                                              120             (9,347)            (15,892)
                                                            27,839           (253,751)         (1,644,695)
From continuing and discontinued operations                                                                             
Loss per share                                                                                                          
- basic                                                     0.0002            (0.0021)            (0.0134)
- diluted                                                   0.0002            (0.0021)            (0.0123)
From continuing operations                                                                                              
Loss per share                                                                                                          
- basic                                                     0.0002            (0.0016)            (0.0091)
- diluted                                                   0.0002            (0.0016)            (0.0084)

As at 31 December 2008
                                                          As at               As at               As at
                                                    31 December         31 December                  30
                                                           2008                2007                June
                                                     (unaudited)         (unaudited)      2008 (audited)
                                                             £                   £                   £
Non-current Assets                                                                                                     
Intangible assets                                        771,247             577,762             771,190
Property, plant & equipment                               30,838              48,619              39,912
Fixed asset investments                                  276,125             569,738             351,465
                                                       1,078,210           1,196,119           1,162,567
Current assets                                                                                        
Trade and other receivables                            1,071,963           2,216,488           1,035,049
Cash & cash equivalents                                  114,947             180,738             231,204
                                                       1,186,910           2,397,226           1,266,253
Total Assets                                           2,265,120           3,593,345           2,428,820
Equity and liabilities                                                                                                 
Share capital and reserves                                                                                             
Issued capital                                         1,407,627           1,246,543           1,246,543
Share premium account                                    698,983             717,399             698,983
Shares to be issued                                      278,669                   -                   -
Other reserves                                            76,556              52,436              68,516
Reverse acquisition reserve                             (400,219)           (400,219)           (400,219)
Revaluation reserve                                      247,600             312,585             315,124
Retained earnings                                     (2,257,229)           (900,669)         (2,285,068)
Translation reserve                                      (10,028)             (1,051)             (3,590)
Equity attributable to equity holders of the parent       41,959           1,027,024           (359,711)
Minority interest                                        (17,731)            (11,306)            (17,851)
Total Equity                                              24,228           1,015,718            (377,562)
Current liabilities                                                                                                    
Trade & other payables                                 1,891,049           2,541,968           2,353,267
Short-term borrowings                                    349,843              35,659             453,115
Total liabilities                                      2,240,892           2,577,627           2,806,382
Total equity and liabilities                           2,265,120           3,593,345           2,428,820

For the six months ended 31 December 2008
                                                   Six months ended  Six months ended               Year
                                                   31 December 2008  31 December 2007              ended
                                                        (unaudited)       (unaudited)            30 June

                                                               £                  £                  £
CASH FLOWS FROM OPERATING ACTIVITIES                                                                                
CASH RECEIPTS FROM CUSTOMERS                             2,322,655          3,920,068          9,725,467
CASH PAID TO SUPPLIERS AND EMPLOYEES                    (2,833,335)        (4,735,185)       (10,863,588)
CASH (ABSORBED)/GENERATED BY OPERATIONS                   (510,680)          (815,117)        (1,138,121)
INTEREST PAID                                              (10,804)            (6,962)           (15,717)
INTEREST RECEIVED                                              467              5,581            121,175
NET CASH INFLOW FROM OPERATING ACTIVITIES                 (521,017)          (816,498)        (1,141,663)
CASH FLOW FROM INVESTING ACTIVITIES                                                                                 

PURCHASE OF EQUIPMENT                                             -            (7,488)           (16,981)
ACQUISITION OF ASSOCIATED UNDERTAKING                             -          (218,613)          (225,088)

INTANGIBLE FIXED ASSETS ACQUIRED                              (283)           (17,468)           (22,370)

DISPOSAL OF FIXED ASSET INVESTMENT                          75,000            150,750            150,750

CASH ON ACQUISITION                                                                             -                   

NET CASH IN/(OUT)FLOW FROM INVESTING ACTIVITIES              74,717           (92,819)          (113,689)

CASH FLOWS FROM FINANCING ACTIVITIES                                                                                
PROCEEDS FROM ISSUE OF SHARES                               439,753            250,800            232,384
LOANS FROM DIRECTORS & SHAREHOLDER                         (125,000)                 -            200,000


NET CASH FLOWS USED IN FINANCING ACTIVITIES                 314,753            250,800            432,384

EXCHANGE DIFFERENCES                                         (6,438)              1,247            (1,292)

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS       (137,985)          (657,270)          (824,260)

CASH AND CASH EQUIVALENTS BROUGHT FORWARD                   (21,911)            802,349            802,349

CASH AND CASH EQUIVALENTS CARRIED FORWARD                  (159,896)            145,079           (21,911)

REPRESENTED BY:                                                                                                     
POSITIVE CASH BALANCES                                      114,947            180,738            231,204
SHORT TERM BORROWINGS                                      (274,843)           (35,659)          (253,115)

                                                           (159,896)           145,079            (21,911)


1.      Basis of preparation

The  group accounting policies are set out in the annual report and financial statements for the period  to
30 June 2008.

The  interim  financial  statements do not comprise statutory accounts for  the  purpose  of  s240  of  the
Companies Act 1985.

2.      Share capital and Earnings per share

The basic profit (loss) per share is calculated by dividing the loss attributable to equity shareholders by
the  weighted  average  number of shares in issue. At the period end, the company  had  received  cash  and
applications for shares which were not allotted and issued until January 2009. These sums are shown on  the
Balance  Sheet  as  Shares to be issued and are not dilutive for the purposes of calculating  Earnings  per
share  for  the period under review. In calculating the diluted loss per share, warrants and share  options
outstanding have been taken into account where the impact of these is dilutive.

The weighted average number of shares in the period was:

                                             Six months ended 31        Six months ended             Year ended
                                                   December 2008        31 December 2007           30 June 2008
                                                     (unaudited)             (unaudited)              (audited)
Basic Ordinary shares of 1p each                     127,543,327           119,660,492              121,977,182
Dilutive Ordinary Shares                               3,243,498            10,334,073               10,334,073

Total diluted                                        130,786,825           129,994,565              132,311,255

3.      Post Balance Sheet Event

Since 31 December 2008, the company has issued a further 20,625,000 ordinary shares at par, increasing  the
share capital by £206,250.

4.      Dividends

No dividends have been declared for the six months ended 31 December 2008.

The financial information for the six months to 31 December 2008 is unaudited and has not been reviewed  by
the auditors.

The  company has raised £31,669 following the placing of 3,166,900 new ordinary shares of 1p each  at  par.
The  money  raised  will be used to expand activities in the entertainment sector and for  general  working
capital purposes.

As  part  of  the placing, each new shareholder will be issued with two new warrants in the  Company,  each
warrant  entitling the holder to subscribe for one new ordinary share of one pence each at any time  during
the period from the date of issue to 30 November 2012.

As  a  result  of the above transactions, the Company now has 189,254,566 ordinary shares  in  issue.   The
Directors  hold 53,226,682 ordinary shares representing 28.1% of the enlarged share capital and  51,500,000
warrants exercisable at 1p each, representing 38% of the total number of warrants in issue.


                                               * * ENDS * *

Contact Information

  • Creative Entertainment Group plc