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ASX CODE: CCS - 18 AUGUST 2004
FAILURE TO MEET PROSPECTUS FORECASTS
FOR SIX MONTHS ENDED 30 JUNE 2004
Concept Sports Limited today announced it would not meet its profit forecasts for the
six months ended 30 June 2004 as set out in the Company’s prospectus dated 18 May
2004.
While the audit of the company’s accounts for the six month period to 30 June 2004
has not yet been finalized, the directors are expecting revenue of approximately
A$14 million (compared to A$20.6 million forecast in the prospectus) and a pre-tax
loss of approximately A$1.8 million (compared to a pre-tax profit of A$ 1.5 million
forecast in the prospectus) for the period.
The main factors contributing to the deterioration in the company’s financial
performance against forecast for the six month period are summarised below;
Australian Business
While the event business has continued to meet revenue expectations, there
have been additional setup and operating costs incurred in relation to some
events. In addition, the company’s wholesale merchandise business failed to
achieve forecast revenues and earnings largely resulting from poor
performance from various American Sport and AFL Football Club licenses.
The company has restructured its sales division and has adopted an indent
sales ordering system to improve the operating performance.
EURO 2004 - Portugal
The revenue for the Euro 2004 soccer tournament failed to meet expectations.
The directors believe this was attributable to the early elimination of the
majority of the popular teams, resulting in reduced expenditure at the
company’s merchandising outlets.
International Motorsport
In the company's first season selling merchandise at all Grand Prix events and
distributing to retail outlets around the world, revenue for the six months
ending 30th June 2004 did not meet expectations. The company is disappointed
that the wholesale merchandising business was not established as quickly or
effectively as expected and has now begun a major review to improve our
performance during the current and subsequent seasons.
The company is currently involved in the Olympic Games in Athens and therefore at
this time the directors consider it is premature to review the forecasts for the 12
months ending 30 June 2005. The directors will review the forecasts for the year
ended 30 June 2005 when the financial results for the Olympics are determined, and
advise the market if they expect there will be any material deviation from those
forecasts.
The company's results to 30 June 2004 will be announced to the market on or before
27 August 2004.
For further information contact:.
Jeff Taylor
Director
Concept Sports Ltd
331 Ingles Street
PORT MELBOURNE VIC 3067
Ph: (03) 9646 6611