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OPERATIONAL UPDATE FROM THE MANAGING DIRECTOR
23 APRIL 2004
General
During the last quarter, the Company has continued to pursue the transactions underway at the time of reporting the half yearly results to shareholders. In addition considerable effort is now being expended on planning for manufacture and installation of signs in Turkey and New York. Additional detail in relation to the progress of the transactions is provided below. The Directors remain confident conclusion of the transactions currently on the Lumacom project slate will be achieved, and that these transactions will be profitable for the Company.
Notwithstanding this outlook, the Directors continue to carefully monitor and control costs, and the group’s cash expenditure for the quarter has remained within the indications provided at the half year update, with the group maintaining a cash balance of $4.149m as at 31 March 2004.
Europe
Scandinavia
Our Scandinavian cooperative partners have now advised that they are arranging draft legal documentation in relation to opportunities in Finland and Sweden.
Spain
The restructuring of the sales programme for the Maremagnum screen is beginning to deliver results. A substantial pipeline of transactions has been generated and conversion to bookings is now evident. We continue to work with our partners in Spain to pursue additional sites in anticipation of solid results from the video screen sales team for Maremagnum.
Turkey
The Company has received copies of the regulatory approval for signs atop the Marmara Hotel in Taksim Square, Istanbul, and Lumacom’s Turkish partner has confirmed its intention to move forward with the installation of the signs. The required progress payment for the purchase price of the signs was received prior to 31 March 2004, and this project is now proceeding to manufacture. At this stage, Lumacom is not able to comment on the final level of advertising achievable from this site, however, our partner has confirmed their confidence in finalising an advertising deal prior to installation of the sign. Installation is planned during the first quarter of the next financial year.
Greece
As was flagged in our last update, the regulatory environment and the current focus of the relevant Ministry on infrastructure for the Olympic Games will most likely see the installation of LumaSigns deferred until after the conclusion of the Games. Notwithstanding this, our partner in Greece has confirmed that they hold the agreement of the landlords for three high profile sites in Athens and one in Thessaloniki, which will be formalised in contractual terms following receipt of permissions for the signs.