Sports and entertainments group Enic has money in the war-chest and will continue to keep an eye on its stake in Wembley stadium, the company said today.
If the conditions are right, it will move to increase its 4.4% shareholding in the stadium group, it said.
The group announced a £450,000 loss in the first six-months of trading as a listed company but its bank account is full, with cash reserves of £15.8m.
Howard Stanton, chairman of Enic, said: “We continue our strategy of enhancing the long term capital value of the business and are investigating a number of interesting opportunities, particularly in the entertainment sector, both organically and by acquisition.”
The company announced it was interested in buying Wembley last year, but its approach was rejected.
Since then Wembley has unveiled plans to sell its famous stadium to the non-profit making English National Stadium Development Company (ENSDC).
That decision – which would still leave Wembley plc with a number of other stadiums and venues – is disputed by three board members at Wembley and the future of the business remains uncertain.
Enic has already been on a buying spree in the last six months acquiring a 50% stake in Basel Marketing for £15.2m. It means Enic now has a controlling interest in a further four European football clubs, FC Basel, AEK, Slavia Prague and Vicenza.
Enic also owns 25.1% of Glasgow Rangers. The stake currently has a market value of £42.3m. Its slice of Wembley, bought for £7.3m, is now valued at £9.1m.
In the six months ended December 31, the company announced revenues were £27.8m and group operating profit of £2.2m.
Exceptional costs of £800,000 relating to a legal action conducted against the European football governing body EUFA had kicked pre-tax profits into the red, the company said.
Direct comparisons with the previous year were not possible since the company’s flotation in May last year.
The nearest direct comparative was the figures for the nine month period to December 31, 1997, when the company made a £295,000 pre-tax profit.
The company said it had opened two new Warner Bros Studio Stores in the last six months, bringing the total number to 12.
Discussion about a number of further locations are at an advanced stage, the company said, and it is due to open its first entertainment restaurant in the USA in conjunction with Time Warner Entertainment.
Its holding in Internet software company Autonomy has also made significant progress. The company’s holding of 9%, with a book value of £3.7m, is now valued at £20.2m.
The company said it was trying to grow the group’s capital value, and would not be recommending the payment of an interim dividend.
EGi News 26/02/99
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