Main Web Site : http://www.firstartist.com/index.asp

20th June 2007 Broker Note : http://www.esnips.com/web/PPOtherStuff/


Major News/Events :

Trading Update July 2007


First Artist Corporation plc, is one of the worlds leading integrated marketing, sport and entertainment management businesses. Our companies are recognised experts in entertainment and sport representation, wealth and media management, advertising and events, and the complementary nature of their skills makes our offer truly exciting.

Group Web Sites :

MARKETING
http://www.sponsorshipconsulting.co.uk
http://www.newman-displays.com/
http://www.dewynters.com
http://www.theatremerchandise.com/
http://www.firstrights.co.uk/

SPORT
http://www.firstartistsport.com/
http://www.firstartistscandinavia.dk/

WEALTH
http://www.optimalwm.com/

EVENT MANAGEMENT
http://www.finishingtouchevents.co.uk/

ENTERTAINMENT
http://www.firstnci.com/

Broker Forecast 25th June 2007 :

2007 PTP 2.6m
2007 EPS 13.30p

2008 PTP 3.6m
2008 EPS 15.70p

Nice results (and nice to see a director buying), this is the comment from Daniel Stewart today :

First Artist - BUY
Price: 102p Target price: 194p Code: FAN.L Analyst: James Hollins | 020 7776 6571

Earnings and target price upgrades

First Artist has announced FY07A results ahead of our expectations. We retain our Buy recommendation and raise our target price by 10% from 176p to 194p on the back of an increase in our FY08E and FY09E earnings estimates of 9% and 11% respectively.

First Artist has reported top-line growth of 411% to 48.6m, relative to our estimate of 47.4m and reflecting a 10-month contribution of 32.9m from Dewynters (acquired November 2006).

First Artist FY07A EBITDA is up from 1.8m to 4.1m (+130% year-on-year, vs our forecast of 3.9m), with clean PBT of 2.8m (vs 1.4m in FY06A and 8% ahead of our 2.6m forecast).

A lower-than-expected fully diluted shares in issue led to a 19% earnings outperformance against our forecast (15.71p reported vs 13.26p forecast), showing year-on-year earnings growth of 95%.

A net cash inflow during FY07A of 2.7m led to year-end group net debt of 9.7m (2.4x EBITDA) against our forecast of 10.3m. Net debt is forecast to fall to 9.2m in FY08E (1.8x EBITDA).

Following the trading outperformance announced today, compounded by reduced net debt and dilutive shares in issue relative to our estimates, we are increasing our FY08E earnings estimate from 15.66p to 17.05p (+8.9%), with FY09E rising from 16.80p to 18.64p (+11.0%).

This places the shares on a P/E to FY08E of 6.0x (FY09E 5.5x) and an EV/EBITDA of 4.3x in FY08E (FY09E 3.9x).
On this basis, with a strong and diversified business model underpinned by expected earnings resilience and cash generation in its largest division, Dewynters (71% of forecast FY08E revenue), and multiple avenues of organic and acquisitive growth across the groups operations, we retain our Buy recommendation and increase our target price by 10% from 176p to 194p (90% upside).

Excellent results and future looks very promising. Under-valued stock on current and forward PE/PEG. I will be adding.

To much debt for maintaining progress as FY08 may not be as spectacular with credit sqeeze theatening the business expansion through aquisition. Great results would have produced a dividend! FAN is one to watch carefully.

I agree sold my holding as not sure where the growth is going to come from in a more difficult economic climate.

Latest news of police arrests following investigations into "bungs" in football will not help those involved in the players transfer market.

In case you havn't noticed, FAN is a more diverse company.

Yes but it is still very involved in the player transfer market.

Lost 30%...this was a Shares Mag favourite recently.

And strongly tipped by TW!

Very rare for PapalPower to promote a dud! Mortal after all! :o)

First Artist - BUY
Price: 76p Target price: 194p
Code: FAN.L Analyst: James Hollins | 020 7776 6571


Bullish H1 update

First Artist has released a bullish trading update for its H1 period to 29 February 2008.

H1 trading has been in line with management expectations and the group is confident that trading for the full year will be in line with market expectations. The group also stated that cash generation remains strong in the group.

Based on the H1 performance and solid outlook, we retain our forecasts and Buy recommendation with 155% upside to our 194p price target (target multiple of 6.0x EV/EBITDA, 10.4x P/E FY09E).

The in-line H1 trading represents a group-wide strong performance, highlighting the individual strengths of each business and underpinning our positive view on the revenue diversification within the group.

First Artists Media division (c.51% of forecast FY08E group EBIT) continues to trade strongly with highly resilient Dewynters revenue and new contracts to promote Gone with the Wind and Sleeping Beauty in London (opening in April and June 2008 respectively). Sponsorship Consulting and First Rights have shown positive contract wins and renewals with clients such as Shell and Unilever.

The Sport and Entertainment divisions (c.22% of forecast FY08E group EBIT) are also trading well, with a strong football trading window in January (19 transfers including Felipe Caicedo to Manchester City from Basel for 5.2m, as well as Jean-Alain Boumsong from Juventus to Lyon for c.2.2m).

Optimal Wealth (c.15% of forecast FY08E group EBIT) has gained its Chartered Status during the period (Chartered Insurance Institute) and delivered a strong performance.

The final division, Events (c.13% of forecast FY08E group EBIT), is stated to be trading sizeably ahead of the same period last year despite a difficult corporate events market.

Given the positive update we retain our FY08E estimates (4.0m EBIT, 3.6m PBT, 17.05p EPS) having upgraded our earnings by c.10% in November 2007.

Our current forecasts rate the shares at a significant discount to our fair value, with the group trading at 4.5x FY08E earnings (4.1x FY09E) and 3.7x EV/EBITDA (3.3x FY09E). We are forecasting FY08E group net debt of 9.2m, representing a net debt/EBITDA ratio of 1.8x (falling to 1.5x FY09E).

Our target multiple of 6.0x FY09E EV/EBITDA (10.4x earnings), implies a target price of 194p and, with 155% upside to our target, we retain our Buy recommendation.

What kind of update is the above-mentioned by FAN...more of a bulls**t update.


First Artist H1 pretax loss widens - MoneyAM

First Artist Corp. Plc. reported a wider first-half pretax loss, but said that it is confident for the rest of the year and beyond, despite the prevailing challenges in the market.

The media, events and entertainment management group posted a pretax loss of 281,000 pounds for the six months to Feb. 29, 2008, compared with a loss of 180,000 pounds in the previous year, despite a 48 percent rise in revenues to 27.37 million pounds.

First Artist said all its group companies are trading well, with strong new business generation and organic growth from current clients.

The company also said that it will continue to seek expansion opportunities through acquisition.

Here are the thoughts of Daniel Stewart :


First Artist - BUY

Price: 70p Target price: 194p

Code: FAN.L Analyst: James Hollins | 020 7776 6571


Solid H1, materially undervalued stock

First Artist has reported a solid set of H1 results, highlighting the resilient nature of its business model as a focussed marketing services group operating across media, events and entertainment/sports representation. The group has reported revenue growth of 48.1% (27.4m vs 18.5m), with each division trading well.

Group EBITA came in at 0.77m (+8.0% vs 0.71m), with the top-line growth partially offset by the relatively low margin contribution from Dewynters, higher sports division losses (H2 weighted) and higher head office costs.

Increased interest payments (0.75m vs 0.42m H1 2007) resulted in group breakeven at the pre-tax line against a small profit in H1 2007 (0.27m). A minor tax inflow resulted in H1 2008 EPS of 0.57p

Following the group's H1 results we are leaving our FY08E and FY09E earnings estimates unchanged. We believe that the H1 performance has underpinned our estimates (c.45% of forecast revenue covered in H1).

The group is benefiting from a resilient and diverse revenue stream, picking up new clients across its business divisions and supplementing organic growth.

We expect the cross-sale opportunities to drive further growth and see solid potential upside from internal, high-margin client referrals, as well as further acquisition opportunities.

Our unchanged estimates drive P/E multiples of just 4.1x FY08E and 3.8x FY09E (EV/EBITDA of 3.8x FY08E, dropping to 3.4x FY09E).

These multiples completely fail to reflect the true value of First Artists diverse and resilient revenue streams, market-leading positions in theatre, entertainment and sports marketing, upside from owned IP monetisation, continued heavy external investment in core markets, and international growth and acquisition opportunities.

With the debt level of 11.8m, First Artist has a net debt/EBITDA ratio to FY08E of just 2.1x (1.8x FY09E), with interest covered 4.1x (4.4x FY09E) and a substantial FCF yield in FY08E of 29.4%.

Across all metrics (P/E, EV/EBITDA, FCF yield, cash interest cover), we believe that First Artist is materially undervalued and we retain our Buy recommendation and 194p price target (target multiple 6x FY09E EV/EBITDA, 10.4x P/E).

The above is an old article in February.

FAN is 38p now...this is one of those thought to reach 200p...what a failure. AVOID at all means.

i agree,,dont really understand wath huppen to first artist,,i hold share and im loosing quite at bit,never thought would go that low,,,
hope they will back up again soon finger crossed

More negative news today, what next?

Shares suspended and reverse takeover, what next TW?