Unaudited Interim Results For the 6 months ended 31 December 2001 
21 March 2002

ENIC plc


Unaudited Interim Results

For the 6 months ended 31 December 2001


ENIC plc today announces unaudited interim results for the six months ended 31 December 2001.


Financial Highlights


· Turnover from continuing operations was £13.9 million (2000: £29.9 million)


· Net operating loss including associates of £5.1 million (2000: £3.6 million)


· Profit on sale of ukbetting.com Limited totalled £3.5 million


· Profit on sale of investments £1.8 million (2000: £33.7 million)


· Profit before tax of £1.0 million (2000: £30.1 million)


Stephen Davidson, Chairman of ENIC plc said:


“We remain mindful of the prevailing economic conditions as we continue with our
strategy of rationalising the Group's portfolio of investments." 



Chairman’s Statement 


The new financial year began in the same manner as the previous one finished, with
further efforts being made to rationalise the Group's portfolio of interests. For
the six months under review, Group turnover was £15.2m (2000: £29.9m) and pre-tax
profits were £1.0m (2000: profit £30.1m). The large profits earned in the
comparative period were due to the sale of 1m shares in Autonomy Corporation plc at
an average price of £34 per share. The reduction in Group turnover is primarily the
result of the sale of ukbetting.com Limited and Church Street Station. The sale of 
these businesses has also meant that the Group's trading activities have become
more seasonal. The first six months of the financial year include retail trading
over the Christmas period and profits made on player trading, which will not be
repeated in the second half of the year. The Board continues not to pay an interim
dividend (2000: £nil). 


Sports

Tottenham Hotspur is currently ninth in the Premier League and reached the final of
the Worthington Cup and the quarter final stage of the FA Cup. For the six months to
31 December 2001, Tottenham Hotspur plc announced profits of £2.9m (compared with
£0.9 for the six months to 31 January 2001). 


FC Basel is performing well in its league and is currently top of the Swiss First
Division. Should it retain this position at the end of the season, it will qualify
for the second preliminary round of the Champions' League next season.


AEK Athens is performing well in the domestic league; it is currently second which,
should it retain this position at the end of the season, will enable it to enter
the Champions' League at the third qualifying round stage. AEK also reached the last
sixteen of the UEFA Cup competition this season .


Disappointingly, Slavia Prague was eliminated from the qualifying rounds of both the
Champions' League and the UEFA Cup competitions at an early stage, its worst
performance for a number of seasons and one that has had a negative impact upon its
finances. The club is currently seventh in the Czech League and participation in
European competition next season (which is crucial to the club's financial wellbeing)
is dependent upon success in the domestic cup competition. As part of the Group's
ongoing strategy to develop the club's player trading potential, there has been
significant investment in the youth structure with the acquisition of a number of
young players.


Glasgow Rangers are currently second in the domestic league, with good prospects of
a place in Europe next season (although not in the lucrative Champions' League) but
have been eliminated from the qualifying rounds of the Champions' League and UEFA Cup
this season.


Vicenza Calcio has had another successful player trading season, however, the team is
playing well below expectations and promotion to Serie A at the end of this season is
now considered unlikely. A second season in Serie B will undoubtedly have a negative
impact on the club's finances.


Gaming and Media

Shareholders are already aware that, during the period under review, we sold our
remaining interest in the gaming sector, ukbetting.com Limited to a newly formed
company, ukbetting plc. We received an initial consideration comprising £1.5m in cash
and £1.5m in shares of ukbetting plc. Ukbetting recently announced its first
financial results for the period from 7 August 2001 to 31 December 2001 which showed
that "ukbetting has increased its betting customers both through acquisition and
subsequent strong organic growth within both its betting brands".


The Group has a shareholding of approximately 24% of Paradigm Media Investments plc.
The company has widened its investment focus to include non technology investments. 


The Group also sold a further 500,000 shares of Autonomy Corporation plc, raising
£2m and leaving it with a residual holding of 3m shares.



Entertainment

As anticipated in my last report to shareholders and despite best efforts by the
management team, trading conditions continue to be difficult at the Warner Bros.
Studio Stores although progress is being made with regard to the rationalisation of
the property portfolio. The performance of the WB Stage 16 restaurant was badly
affected by the terrorist activities of September and the effect these had on the
important conference market. 


Outlook

We remain mindful of the prevailing economic conditions as we continue with our
strategy of rationalising the Group's portfolio of investments.


Stephen Davidson

21 March 2002








Independent Review Report to ENIC plc


Introduction

We have been instructed by the Company to review the financial information for the
six months ended 31 December 2001 which comprises the consolidated profit and loss
account, balance sheet, cash flow statement, statement of total recognised gains
and losses and notes 1 to 9 set out on the following pages. We have read the other
information contained in the interim report and considered whether it contains any
apparent misstatements or material inconsistencies with the financial information.


Directors’ responsibilities 

The interim report, including the financial information contained therein, is the
responsibility of, and has been approved by, the directors. The directors are
responsible for preparing the interim report in accordance with applicable United
Kingdom law and accounting standards.


Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of Group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.


Review conclusion

On the basis of our review we are not aware of any material modifications that
 should be made to the financial information as presented for the six months
ended 31 December 2001.



Arthur Andersen

Chartered Accountants

180 Strand

London

WC2R 1BL

21 March 2002 

Unaudited Unaudited Audited

6 months ended 6 months ended 12 months ended

31 December 2001 31 December 2000 30 June 2001

£’000 £’000 £’000 £’000 £’000 £’000

Turnover 

Continuing operations 13,892 29,870 39,562 

Discontinued operations 1,309 - 18,297 

15,201 29,870 57,859

Operating expenses (23,510) (36,202) (67,006) 

Depreciation of tangible fixed assets (600) (1,230) (3,613) 

Impairment of goodwill and investments (2,932) (755) (38,028) 

Amortisation of intangible fixed assets (2,632) (2,904) (7,253) 

Net profit on player trading 8,588 9,651 11,619 

Exceptional costs - - (1,220) 


Total operating expenses (21,086) (31,440) (105,501)

Operating loss 

Continuing operations (5,791) (1,570) (46,437) 

Discontinued operations (94) - (1,205) 

Operating loss (5,885) (1,570) (47,642)

Share of associate’s operating profit/(losses) 776 (2,000) (4,904)

Profit on sale of investments 1,842 33,672 33,604

Profit on sale of AEK PAE - - 1,761

Profit on sale of FC Basel Marketing AG - - 501

Profit on sale of Church Street Station of Orlando Inc - - 885

Profit on sale of ukbetting.com Ltd 3,519 - -

252 30,102 (15,795)

Net interest 794 27 959

Profit/(loss) on ordinary activities before taxation 1,046 30,129 (14,836)

Tax on profit on ordinary activities (989) (2,416) (2,165)

Profit/(loss) on ordinary activities after taxation 57 27,713 (17,001)

Minority interests (equity) 260 587 266

Profit/(loss) for the financial period 317 28,300 (16,735)

Profit/(loss) per ordinary share – basic 0.003p 29.04p (16.52p)

Profit/(loss) per ordinary share – diluted 0.003p 29.03p (16.55p)





Unaudited at Unaudited at Audited at

31 December 2001 31 December 2000 30 June 2001

£’000 £’000 £’000

Fixed assets 

Goodwill - 4,202 -

Intangible assets 14,888 15,919 9,804

Tangible assets 1,577 20,516 1,827

Investments 25,331 37,948 26,322

41,796 78,585 37,953

Current assets 

Stock 906 5,920 1,769

Debtors 18,805 28,748 17,073

Cash at bank and in hand 53,446 40,643 46,607

73,157 75,311 65,449

Creditors: amounts falling due within one year (49,725) (43,200) (38,415)

Net current assets 23,432 32,111 27,034

Total assets less current liabilities 65,228 110,696 64,987

Creditors: amounts falling 

due after more than one year (2,889) (4,468) (595)

Provisions for liabilities and charges (2,335) (1,937) (4,795)

Net assets 60,004 104,291 59,597

Capital and reserves 

Called-up share capital 2,622 2,622 2,622

Share premium account 36,322 136,322 36,322

Capital redemption reserve 1,313 1,313 1,313

Profit and loss account 20,540 (34,877) 19,873

Shareholders’ funds (including non-equity interests) 60,797 105,380 60,130

Minority interests (equity) (793) (1,089) (533)

Total capital employed 60,004 104,291 59,597




Unaudited Unaudited Audited

6 months ended 6 months ended 12 months ended

31 December 2001 31 December 2000 30 June 2001

£’000 £’000 £’000

Net cash outflow from operating activities (2,485) (2,212) (11,113)

Net cash inflow from return on investments and servicing of finance 755 124 695

Taxation (paid)/recovered (482) - 62

Net cash inflow from capital expenditure and financial investments 2,578 35,367 44,906

Acquisitions and disposals 6,473 (742) (18,093)

Net cash inflow from management of liquid resources and financing - 3,821 25,628

Increase in cash 6,839 36,358 42,085





Unaudited Consolidated Statement of Total Recognised Gains and Losses

For the 6 months ended 31 December 2001




Unaudited Unaudited Audited

6 months ended 6 months ended 12 months ended

31 December 2001 31 December 2000 30 June 2001

£’000 £’000 £’000

Profit/(loss) for the financial period 317 28,300 (16,735)

Gains on foreign exchange translation differences 350 396 181

Total recognised gains/(losses) for the period 667 28,696 (16,554)




1. Basis of accounting

The interim financial information has been prepared on a basis consistent with
the report and accounts for the year ended 30 June 2001. The financial
information contained in this interim report does not constitute statutory
accounts as defined in section 240 of the Companies Act 1985.


2. Comparative information

ENIC plc has presented unaudited comparative accounts for the 6 months ended
31 December 2000 and the audited accounts for the year ended 30 June 2001.
The financial information for the year ended 30 June 2001 has been extracted
from the statutory accounts which have been reported on by the Group's auditors
and have been delivered to the Registrar of Companies. The Auditors' report was
unqualified and did not contain any statement under section 237(2) or (3) of
the Companies Act 1985.


3. Taxation

The taxation charge for the 6 months ended 31 December 2001 is based on the
estimated effective rate for the full year to 30 June 2002 and relates to
overseas taxation charges and associated companies.


4. Dividend

No interim dividend will be paid for the 6 months ended 31 December 2001 (31
December 2000: £nil and 30 June 2001: £nil).


5. Segmental information and geographical analysis 



Unaudited Unaudited Audited

6 months ended 6 months ended 12 months ended

31 December 2001 31 December 2000 30 June 2001

£’000 £’000 £’000

Turnover by origin and destination 

ENIC Sports 3,889 7,993 18,919

ENIC Entertainment 10,003 18,699 30,062

Media, Gaming and Group management 1,309 3,178 8,878

15,201 29,870 57,859

Profit/(loss) on ordinary activities before taxation 

ENIC Sports (2,326) 3,523 (24,860)

ENIC Entertainment (1,342) (2,409) (14,217)

Media, Gaming and Group management 4,714 29,015 24,241

1,046 30,129 (14,836)

Net assets 

ENIC Sports 4,779 33,917 5,747

ENIC Entertainment 1,709 11,369 2,930

Media, Gaming and Group management 53,516 59,005 50,920

60,004 104,291 59,597





(b) Geographical analysis

Unaudited Unaudited Audited

6 months ended 6 months ended 12 months ended

31 December 2001 31 December 2000 30 June 2001

£’000 £’000 £’000

Turnover by origin and destination 

UK 9,317 14,859 25,972

Europe 3,889 7,993 18,919

Other 1,995 7,018 12,968

15,201 29,870 57,859

Profit/(loss) on ordinary activities before taxation 

UK (1,595) (6,838) (16,942)

Europe 36 3,523 (24,849)

Other 2,605 33,444 26,955

1,046 30,129 (14,836)

Net assets 

UK 676 35,910 (374)

Europe 14,140 14,971 11,317

Other 45,188 53,410 48,654

60,004 104,291 59,597


6. Reconciliation of operating profit/(loss) to operating cash flows


Unaudited Unaudited Audited

6 months ended 6 months ended 12 months ended

31 December 2001 31 December 2000 30 June 2001

£’000 £’000 £’000

(Loss)/profit on ordinary activities before 

Interest, taxation and associate losses (524) 32,102 (10,891)

Impairment of goodwill and investments 2,932 755 38,028

Depreciation of tangible fixed assets 600 1,230 3,613

Amortisation of intangible fixed assets 2,632 2,904 7,253

Decrease in stock 863 1,899 5,889

Decrease/(increase) in debtors 10,231 (150) 8,093

(Decrease)/increase in creditors (5,270) 2,371 (10,178)

Profit on sale of investments (1,842) (33,672) (33,604)

Profit on sale of players (8,588) (9,651) (11,619)

Profit on disposal of fixed assets - - (4,550)

Profit on disposal of subsidiaries (3,519) - (3,147)

Net cash outflow from operating activities (2,485) (2,212) (11,113)




7. Analysis of change in net debt

At At

1 July 2001 Cash flow 31 December 2001

£’000 £’000 £’000

Cash in hand and at bank 46,607 6,839 53,446

Debt due within one year (21,885) - (21,885)

24,722 6,839 31,561



8. Profit and loss account

£’000

At 1 July 2001 19,873

Retained profit for the year 317

Foreign exchange translation differences 350

At 31 December 2001 20,540



9. Investments


The OFEX market value of the investment in The Rangers Football Club plc
as at the close of business on 20 March 2002 was £16.2m (£1.40 per share),
the carrying value at 31 December 2001 of £5m. 


The market value of the investment in Autonomy Corporation plc as at the
close of business on 20 March 2002 was £13.2m (£4.40 per share), with a
carrying value at 31 December 2001 of £1m.


The market value of the investment in Paradigm Media Investments Plc as
at the close of business on 20 March 2002 was £4.3m (£0.0425 per share),
with a carrying value at 31 December 2001 of £5.1m.


The market value of the investment in Ukbetting plc as at the close of
business on 20 March 2002 was £2m (£0.335 per share), with a carrying
value at 31 December 2001 of £1.5m.


The market value of the investment in Tottenham Hotspur plc as at the
close of business on 20 March 2002 was £10.3m (£0.338 per share) with
 a carrying value at 31 December 2001 of £12.2m.





Enquiries:
Daniel Levy, ENIC plc
Managing Director

John Bick, Holborn Public Relations


 
Tel: +44 (0) 208 365 5333
Fax: +44 (0) 208 365 5330

john_bick@holbornpr.co.uk