Arthur Shaw to concentrate on webcasting despite growing losses
- Added:
- Jan 31, 2002
The company generated 6.4m in sales for the year ended 30 September 2001 against 11.4m for the 18-month period to September 2000. Net loss was 7.6m after an impairment charge of 4.7m was applied to write down the value of acquisitions and webcast technology development costs.
It announced an option to sell its traditional engineering business - to an unnamed buyer for a “nominal consideration” - in order to concentrate on building a broad-based media business. If the deal is completed the company will retain an equity stake in the engineering division.
The company successfully transmitted a webcast of Lennox Lewis's fight in South Africa and streamed a Foo Fighters concert across broadband networks in the US. Its television company, Mike Mansfield Television, contributed an operating loss of 800,000 as a result of producing these webcasts.
Future webcasts will be tailored to suit current market conditions; the company will seek sponsorship for free-to-view basis that will minimise its financial risk. It added that any new media projects would only be undertaken if third parties funded them, with Shaw receiving a fee and not providing any cash flow.
Shaw intends to expand by way of acquisitions and organic growth and said it is in talks with two media companies “regarding potential acquisitions” and has “a number of further targets under consideration”.
The company has existed on a hand-to-mouth basis due to the delay in revenues generated by the media division. It has been increasing its short-term borrowings, converting borrowings into shares and its directors have had their salaries deferred.
Shaw has net current liabilities of 1.5m while net asset value was stated at 8.2m. Shares are unchanged at 0.925p, valuing the company at 8.9m.