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

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?