Trading Statement
December 11 2009 - 6:31AM
UK Regulatory
TIDMHOL
RNS Number : 9861D
Hollywood Media Services plc
11 December 2009
11th December 2009
Hollywood Media Services Plc
("HMS" or the "Company")
Update on Trading and proposed Delisting
The Board of Hollywood Media Services Plc announces that since the suspension of
trading in the Company's shares on 25 June 2009 it has been in negotiations with
several parties including the Company's major shareholders and potential new
equity and debt providers, to raise the necessary working capital for the Group
and to fund the acquisitions where terms had already been negotiated.
The Group has suffered significantly from the recession in 2009 although cost
savings of more than GBP400,000 annually have contributed to an improving trend.
The trading subsidiaries have delivered to the Group EBITDA of GBP90,000 for the
4 months to October 2009 based on the unaudited management accounts. However,
negotiations to raise the required working capital for the Group, in the current
economic climate, were extremely difficult and have ultimately proved
unsuccessful. The Company has also, crucially, been unable to obtain payment of
the subscription monies due from the two investors who defaulted in the
fundraising in May 2009. Whilst the Directors are continuing to pursue the
defaulting investors for payment the lack of these subscription monies together
with the inability to raise alternative equity and/or debt finance has placed
significant pressure on the Group.
In view of the above the Directors are now of the opinion that the Company is no
longer able to fund the Group. The Board has taken advice from which it has
concluded that the Company's interests will be best served refinancing the Group
off AiM which will allow management to concentrate on developing the business
without the ongoing cost burden of a listing which has failed to provide the
anticipated benefits to the group.
Shareholders will be aware from the announcement made on 13 November 2009 that
the Company's nominated adviser resigned on that date, as they did from other
advisorships, following their acquisition by a larger company. For the reasons
above, it is not planned to appoint a new nominated advisor and accordingly,
under the AIM Rules, the listing of the Company's shares on AIM will be
cancelled with effect from 13th December 2009.
The Directors believe the trading companies can trade profitably without the
cost burden of the stock market and will continue the strategy of organic and
acquisitive growth with internally generated or private equity support which the
directors believe will be better suited to a small company than raising funds on
the public markets in the current economic climate. There will be further
updates for shareholders on this in the new year.
The company intends to expand use of the company website (www.hmservicesplc.com)
to allow shareholders and press regular updates and will, through newly planned
shareholder consultation seek input as the strategy develops. It is intention of
the directors to consider a listing on AIM or an alternative market in the
future when the company reaches a size to make such a listing viable.
For further information please contact:
+--------------------------+----------------------------+----------------+
| Martin Eberhardt | Hollywood Media Services | 020 7332 2200 |
| | Plc | |
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| | | |
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| | | |
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This information is provided by RNS
The company news service from the London Stock Exchange
END
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