First Artist makes two acquisitions, strengthens football agency business

First Artist Corporation plc made two acquisitions alongside 1 million stg fundraising, and reported robust first half results which showed a swing to profit on a surge in sales.

The sports and entertainment group will buy Proactive Scandinavia A/S from Formation Group plc for 1.75 million stg, plus both the net asset value of Proactive Scandinavia as at May 31 2006, estimated to be about 250,000 stg, and a further 250,000 stg in two installments to Karsten Aarbrink.

The company's second acquisition is NCI Management Ltd from Nicola Ibison for up to 1.75 million stg.

First Artist expects both to boost earnings immediately.

In addition, the company is placing 16,758,334 new ordinary shares with institutional and other investors, including certain executive directors of the company, at 6 pence each to raise around 1 million stg before expenses.

The board said it will use the net proceeds of the placing for the acquisitions and for working capital purposes. The balance of the cash payable for the acquisitions will be financed from new banking facilities.

In a separate announcement, First Artist reported a pretax profit for the six months to end-April of 67,000 stg, up from a loss of 312,000 stg the prior year, on sales of 4.5 million stg compared with 1.05 mln. During the period, the group said is successfully integrated last summer's Event Management & Wealth Management acquisitions, which are performing well.

Chairman Jarvis Astaire said all divisions are trading in line with market expectations and the board remains optimistic about the group's continued success for the remainder of the year and beyond.

"We will be continuing this strategy to strengthen our position in the UK and Europe by organic and acquisitive growth, integrating these with our strong core businesses," Astaire said.

Proactive Scandinavia is an established football management agency based in Copenhagen, Denmark, and is currently owned by Formation. Formation said proceeds from the sale will repay its bank borrowings, with the surplus being available for reinvestment.

In the year to end-Aug 2005, Proactive Scandinavia made a profit after tax of around 200,000 stg. After expenses incurred on the transaction, Formation Group said it has incurred a loss on disposal of 300,000 stg.

First Artist said the Proactive Acquisition will expand the company's existing football agency businesses, provide it with a North European base and strengthen First Artist's position as a leading force in the European football market.

NCI is a UK entertainment agency which was established by former GMTV producer Nicola Ibison in 1997 and currently represents over 50 TV presenters and journalists.

In the year to March 31 2006, NCI reported turnover of 730,000 million stg and operating profit of 370,000 million.

First Artist also said that under the Placing, chief executive Jon Smith, finance director Richard Hughes and executive directors Phil Smith and Vincenzo Morabito have each conditionally subscribed for 166,667 placing shares.

First Artist said its strategy of providing distinct but wholly complementary services: sports player representation, entertainment and celebrity management, wealth management and event management, is now a reality and the group can look to push forward as a business, both organically and by further acquisitions.

It said it is actively seeking further acquisitions and joint ventures in all business areas.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.