Proactiveinvestors Australia FFI Holdings Plc https://www.proactiveinvestors.com.au Proactiveinvestors Australia FFI Holdings Plc RSS feed en Wed, 19 Dec 2018 08:20:05 +1100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - FFI Holdings needs next release to be a hit to start recovery process ]]> https://www.proactiveinvestors.com.au/companies/news/209370/ffi-holdings-needs-next-release-to-be-a-hit-to-start-recovery-process-209370.html FFI Holdings Plc’s (LON:FFI) share price has yet to recover from the hit its core business of film completion contracts suffered in the wake of the Weinstein scandal.

Completion contracts are tailored insurance policies to make sure films get finished.

Up until last year it had been a solid and predictable business, but the Weinstein scandal rocked the whole industry and FFI felt the effect.

There were 142 projects in the financial year to March 2018, compared to 168 in 2017, according to house broker Liberum.

Group profits fell 49% to US$5.3mln, though this included the US$9.5mln cost of listing on AIM in June 2017.

Underlying profits rose 30% to US$16.6mln while revenues were 52% better at US$58.9mln as service business acquired over the year started to contribute.

FFI expects underlying profits [EBIT] to rise to between US$20-22mln this year, while house broker Liberum forecasts US$20.6mln.

Services and content expansion

Since it joined Aim last year FFI has been using acquisitions to broaden its reach away from the completion contract business.

The group’s first piece of original content, a documentary called Pandas, premiered on 24 March this year to good reviews.

Equipment rental

Equipment rental forms another key plank of FFI’s strategy, with the division now comprising Pivotal and EPS-Cineworks following the latter’s acquisition in November last year.

The acquisition has given FFI around 50-60% of the post-production equipment rental market, with Cinework’s split of 25% to 75% film/television the reverse of Pivotal’s business model.

Post-production should be a growth market given the growth in content from streaming companies.

The shift toward television also look set to benefit the company, with Pivotal’s high-tech equipment and the booming popularity of streaming helping Cineworks.

Reel deal with Allianz

Insurance agency Reel Media, which FFI purchased in December 2017, has been boosted by the transfer of a US insurance book from Allianz.

Cover provided is for events such as death or disability of actors, fire and loss or damage to props, rather than completion contracts, and relates to both TV and films.

Nearly all films that are produced purchase general insurance to cover loss caused by certain insurable risks, says Liberum.

Reel Media will act as general managing agent and be paid a commission on the premiums received.

Film distribution as well

The most recent acquisition, Signature, saw FFI to expand into the film distribution market.

Founded in 2011, Signature has released over 600 titles and acts as an aggregator for Netflix, Amazon Prime and Sky and other streaming services.

Forward view

According to Liberum, FFI expects the US performance to normalise by the end of this financial year (March 2019) with completion contracts to be signed for 150-200 productions.

That would be in in line with historic levels.

Even so, Liberum reduced its price target and earnings per share per estimates for the next two years following the full year numbers.

The target price is now 91p from 100p, but that is still a hefty premium to the current market price of 40p and once confidence increases in the estimates for 2019 and beyond the shares should re-rate added the broker.

FFI is a world leading business in an exciting industry, it says, that has cash on the balance sheet, produced US$17mln of underlying profits last year and has the potential to grow this by 20%.

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Fri, 16 Nov 2018 09:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209370/ffi-holdings-needs-next-release-to-be-a-hit-to-start-recovery-process-209370.html
<![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20181011140643_13825553/ Fri, 12 Oct 2018 00:06:43 +1100 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20181011140643_13825553/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20181011140120_13825540/ Fri, 12 Oct 2018 00:01:20 +1100 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20181011140120_13825540/ <![CDATA[RNS press release - Resignation of CFO and Board Changes ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20181011070009_13824319/ Thu, 11 Oct 2018 17:00:09 +1100 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20181011070009_13824319/ <![CDATA[News - FFI Holdings promotes financial controller as CFO steps down ]]> https://www.proactiveinvestors.com.au/companies/news/206869/ffi-holdings-promotes-financial-controller-as-cfo-steps-down-206869.html Film services group FFI Holdings Plc (LON:FFI) has promoted its financial controller, Billy Cheung, to the position of chief financial officer following the resignation of Timothy Trankina.

Trankina stepped down from his role with immediate effect in order to pursue other interests, FFI said.

Cheung will take up his new role right away, although he won’t join the board.

FFI chairman James Terlizzi said: “The board appreciates Tim's contributions and wish him well in his future endeavours.”

Shares fell 16% to 30.3p.

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Thu, 11 Oct 2018 08:23:00 +1100 https://www.proactiveinvestors.com.au/companies/news/206869/ffi-holdings-promotes-financial-controller-as-cfo-steps-down-206869.html
<![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20181005140652_13818738/ Fri, 05 Oct 2018 23:06:52 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20181005140652_13818738/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20181005140117_13818729/ Fri, 05 Oct 2018 23:01:17 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20181005140117_13818729/ <![CDATA[RNS press release - Result of AGM (FFI Holdings PLC) ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180927142910_13807497/ Thu, 27 Sep 2018 23:29:10 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180927142910_13807497/ <![CDATA[RNS press release - Annual Report and AGM Notice ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180831150135_13775166/ Sat, 01 Sep 2018 00:01:35 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180831150135_13775166/ <![CDATA[RNS press release - Preliminary announcement of annual results ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180831070005_13773819/ Fri, 31 Aug 2018 16:00:05 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180831070005_13773819/ <![CDATA[News - FFI Holdings sees underlying profits improvement ]]> https://www.proactiveinvestors.com.au/companies/news/203957/ffi-holdings-sees-underlying-profits-improvement-203957.html One-off costs and disruptions to Hollywood productions knocked annual numbers at film finance and services specialist FFI Holdings PLC (LON:FFI).

Pre-tax profits to March fell 49% to US$5.3mln, largely due to the US$9.5mln cost of listing on AIM in June 2017.

READ: FFI Holdings sees underlying profits improvement

Underlying profits rose 30% to US$16.6mln while revenues were 52% better at US$58.9mln after a number of service business acquisitions over the year.

FFI expects underlying profits to rise to between US$20-22mln this year, but this was below house broker Liberum’s expectations.

The broker has cut its price target to 91p from 110p and reduced its profits forecast for the year to US$21mln.

Steve Ransohoff, FFI’s chief executive, said the company had achieved its strategic goals in 2017 despite the headwinds while streaming content from such as Netflix and Amazon was providing new opportunities for the company.

FFI ended the year with cash of US$19.4mln.

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Fri, 31 Aug 2018 08:13:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203957/ffi-holdings-sees-underlying-profits-improvement-203957.html
<![CDATA[RNS press release - Notice of Results ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180823070014_13765329/ Thu, 23 Aug 2018 16:00:14 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180823070014_13765329/ <![CDATA[RNS press release - Exercise of Options & Director/PDMR Dealing ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180615175501_13682448/ Sat, 16 Jun 2018 02:55:01 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180615175501_13682448/ <![CDATA[News - FFI Holdings steadies ship after Weinstein storm ]]> https://www.proactiveinvestors.com.au/companies/news/197708/ffi-holdings-steadies-ship-after-weinstein-storm-197708.html Film insurer FFI Holdings Plc (LON:FFI) can legitimately claim it was hit by something exceptional when it warned on profits in December.

The business has at its core a product it invented – film completion contracts.

Film must be finished

They do what it says on the can.

If a film is not completed or runs late, the contract kicks in and it is beholden on the contract issuer (ie FFI) to make sure the film gets made or the backers get some or all their investment back.

Up until last year it had been a solid and predictable business but the Weinstein scandal rocked the whole industry and FFI felt the effect.

There were 142 projects in financial year 2018, compared to 168 in 2017, according to house broker Liberum.

The three largest films that were cancelled totalled $3.5m of bonded fees, while numerous other titles were also impacted.

Liberum expects underlying profit (EBIT) from the completion contract division to reduce 31% to US$8.2mln this year, although that is better than the broker previously expected.

Weinstein effect a one-off

While last year’s weakness was disappointing, the industry scandal should be an exceptional event and management indicates that there are already signs of normality said Liberum.

Since it joined Aim last year FFI has been using acquisitions to broaden its reach away from completion contract business.

The group’s first piece of original content, a documentary called Pandas, premiered on 24 March this year, to positive reviews.

A global launch is planned for the Autumn, and Liberum forecasts that the film can generate underlying earnings of US$3.5mln in 2019.

Equipment rental

Equipment rental forms another key plank of FFI’s strategy, with the division now comprising Pivotal and EPS-Cineworks following the latter’s acquisition in November last year.

The acquisition has given FFI around 50-60% of the post-production equipment rental market, with Cinework's split of 25% to 75% film to television the reverse of Pivotal’s business model.

Post-production should be a growth market given the growth in content from streaming companies.

The shift toward television look set to benefit the company, with Pivotal’s high-tech equipment and the booming popularity of streaming serving as key positives for Cineworks’ growth prospects.

Reel deal with Allianz

Insurance agency Reel Media, which FFI purchased in December 2017, will also be boosted by the transfer of a US insurance book from Allianz.

Cover provided is for events such as death or disability of actors, fire and loss or damage to props, rather than completion contracts, and relates to both TV and films.

Nearly all films that are produced purchase general insurance to cover loss caused by certain insurable risks, says Liberum.

Reel Media will act as general managing agent and be paid a commission on the premiums received.

The latest acquisition, Signature, helps FFI to expand into the film distribution market.

Founded in 2011, Signature has released over 600 titles and acts as an aggregator for Netflix, Amazon Prime and Sky and other streaming services.

Interims stabilise

In the half-year statement, trading has been as expected said FFI, which expects to report underlying profits [EBIT] in the middle of a previously indicated range of US$15-18mln in the year to March.

Liberum forecasts US$16mln and has a target price of 100p compared to 81p in the market.

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Fri, 25 May 2018 09:42:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197708/ffi-holdings-steadies-ship-after-weinstein-storm-197708.html
<![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180510140601_13636732/ Thu, 10 May 2018 23:06:01 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180510140601_13636732/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180510140142_13636726/ Thu, 10 May 2018 23:01:42 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180510140142_13636726/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180510132501_13636689/ Thu, 10 May 2018 22:25:01 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180510132501_13636689/ <![CDATA[RNS press release - Trading update ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180509070008_13633731/ Wed, 09 May 2018 16:00:08 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180509070008_13633731/ <![CDATA[News - FFI Holdings stabilises after Weinstein fall-out ]]> https://www.proactiveinvestors.com.au/companies/news/196622/ffi-holdings-stabilises-after-weinstein-fall-out-196622.html FFI Holdings Plc’s (LON:FFI) trading has stabilised after a profit warning in December prompted by fall-out from the Harvey Weinstein scandal.

The business specialises in completion contracts, in effect a guarantee that a film or TV programme will be finished.

READ: FFI Holdings buys UK film distributor Signature

Numerous productions were cancelled at the end of last year in the wake of the allegations against Weinstein and other leading Hollywood figures.

Since December, though, trading has been as expected said FFI, which expects to report underlying profits [EBIT] in the middle of a previously indicated range of US$15-18mln in the year to March.

In addition, a documentary about pandas in conjunction with cinema owner IMAX marked a move into original content and was released to good reviews in the US last month 

IMAX intends to release the documentary into more US cinemas and globally later in the year.

Since listing on AIM last year, FFI has been diversifying its operations.

Film equipment rental capacity is up 30% year-on-year, an entertainment underwriting relationship with German group Allianz and motorsports insurance.

Steven Ransohoff, FFI’s chief executive, said the trading in the completion contract business meant he was confident to reaffirm the financial guidance issued in December. 

“Looking ahead, the successful launch of our IMAX collaboration with Pandas to strong critical acclaim early in our new financial year offers us a solid foundation upon which to grow in the year ahead." 

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Wed, 09 May 2018 07:46:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196622/ffi-holdings-stabilises-after-weinstein-fall-out-196622.html
<![CDATA[RNS press release - Acquisition ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180426070008_13619058/ Thu, 26 Apr 2018 16:00:08 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180426070008_13619058/ <![CDATA[News - FFI Holdings buys UK film distributor Signature ]]> https://www.proactiveinvestors.com.au/companies/news/195828/ffi-holdings-buys-uk-film-distributor-signature-195828.html Completion contracts specialist FFI Holdings Plc (LON:FFI) has acquired Signature Entertainment, one of the UK’s largest film distributors.

Steven Ransohoff, FFI Holdings’ chief executive said Signature is especially well placed in the streaming arena, which is a new captive distribution channel for the group.

READ: FFI Holdings signs 'landmark' deal to run Allianz's entertainment book

Founded in 2011, Signature has released over 600 titles and acts as an aggregator for Netflix, Amazon Prime and Sky and other streaming services. 

The consideration is US$5mln cash upfront followed by four annual payments based on underlying earnings.

FFI dominates the space in the UK for completion contracts, in effect an insurance policy to guarantee a film gets made, but has diversified recently into post-production services and distribution capabilities.

A documentary collaboration with IMAX and Warner Brothers, "Pandas", has also now been launched in the US.

 

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Thu, 26 Apr 2018 08:13:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195828/ffi-holdings-buys-uk-film-distributor-signature-195828.html
<![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180130084036_13514205/ Tue, 30 Jan 2018 19:40:36 +1100 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180130084036_13514205/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180123070002_13505304/ Tue, 23 Jan 2018 18:00:02 +1100 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180123070002_13505304/ <![CDATA[RNS press release - Announcement of Strategic Relationship ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180118070007_13500427/ Thu, 18 Jan 2018 18:00:07 +1100 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180118070007_13500427/ <![CDATA[News - FFI Holdings signs 'landmark' deal to run Allianz's entertainment book ]]> https://www.proactiveinvestors.com.au/companies/news/190213/ffi-holdings-signs-landmark-deal-to-run-allianz-s-entertainment-book-190213.html FFI Holdings Plc (LON:FFI) is to take over the running of German giant Allianz’s entertainment insurance arm, a business that has underwritten thousands of films and television series.

Reel Media, acquired by FFI last month, has entered a strategic relationship with Allianz Global Corporate & Specialty (AGCS) to become the managing general agent for its US-based studio, independent film and television business as well as its US loan-out corporation and touring business. 

Read: FFI Holdings snaps up motorsports events insurer

In Canada, Reel Media will also become AGCS's agent for documentary and educational work.

Steven Ransohoff, FFI Holdings’ chief executive, said: "FFI is delighted to extend its relationship with AGCS which dates back to 2013, when the company bought the completion contract business of Allianz and for which AGCS continues to provide insurance to FFI and its counterparties."

Read: FFI reels in Reel Media; says US trading affected by scandal involving leading independent film producer

AGCS and its affiliated companies at Allianz have been the recognised leader in film and entertainment risk insurance for over a century, he said and the deal will further broaden FFI’s reach away from its core of film completion contracts.

Marc Idelson, Reel Media’s chief executive, added: "Joining the underwriting teams of both firms will create a top group of experts with broad experience to serve the entertainment industry."

Broker Liberum described the deal with Allianz as a 'landmark' for FFI that would leverage the recently acquired Reel Media platform.

“The deal should add US$7m of EBIT which is already in estimates. We expect US$80-100m of premiums.

“We prudently assume no revenue synergies. There is now scope for better news flow after the disappointing warning in December.”

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Thu, 18 Jan 2018 07:35:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190213/ffi-holdings-signs-landmark-deal-to-run-allianz-s-entertainment-book-190213.html
<![CDATA[RNS press release - Acquisition ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180112070003_13493982/ Fri, 12 Jan 2018 18:00:03 +1100 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180112070003_13493982/ <![CDATA[News - FFI Holdings snaps up motorsports events insurer ]]> https://www.proactiveinvestors.com.au/companies/news/189938/ffi-holdings-snaps-up-motorsports-events-insurer-189938.html FFI Holdings Plc (LON:PLC) has broadened the scope of its insurance business with the acquisition of a motorsports events specialist and expects to announce another deal this month.

Subsidiary Reel Media, which FFI acquired in December, has bought the business from US broker All Risks for US$1.83mln.

READ: FFI reels in Reel Media; says US trading affected by scandal involving leading independent film producer

The acquired business insures race teams, racetracks, sanctioning bodies, associations, road courses, and motorsports special events and activities and is expected to generate an underlying profit (EBIT) of US$600,000.

Jerid Schmickle has joined the firm as President of the newly created International and Motorsports division.

“Motorsports entertainment has long held a place in the heart of world-wide fans. This acquisition is a complementary addition to an already broad offering of entertainment related insurance products." said Marc Idelson, Reel Media’s chief executive.

FFI is already the world’s leading issuer of completion contracts for the film industry. These essentially provide backers with guarantee that a film will be made.

READ: FFI acquires Aussie post-production media services firm Buff Dubs

Last month, the company warned revenues in the current trading period would be affected by the fall-out from the Harvey Weinstein scandal, which had resulted in a number of projects being unexpectedly cancelled.

Steven Ransohoff, FFI’s chief executive, added: “We continue to pursue affiliations with other insurance intermediaries and hope to announce an additional transaction before month end."

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Fri, 12 Jan 2018 08:13:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189938/ffi-holdings-snaps-up-motorsports-events-insurer-189938.html
<![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180108152524_13488953/ Tue, 09 Jan 2018 02:25:24 +1100 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180108152524_13488953/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180104070004_13484668/ Thu, 04 Jan 2018 18:00:04 +1100 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20180104070004_13484668/ <![CDATA[RNS press release - FFI Holdings PLC Acquires Reel Media LLC ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20171221143001_13474739/ Fri, 22 Dec 2017 01:30:01 +1100 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20171221143001_13474739/ <![CDATA[News - FFI reels in Reel Media; says US trading affected by scandal involving leading independent film producer ]]> https://www.proactiveinvestors.com.au/companies/news/189184/ffi-reels-in-reel-media-says-us-trading-affected-by-scandal-involving-leading-independent-film-producer-189184.html FFI Holdings Plc (LON:FFI) has acquired Reel Media, a US-based entertainment insurance agency and speciality brokerage that offers numerous insurance products to the entertainment industry globally.

FFI is purchasing Reel Media on an instalment basis, with an initial cash payment of US$7.25 million and five annual payments equivalent to a six-times multiple of 8.6% of trailing underlying earnings (EBITDA) thereafter.

FFI said the acquisition would broaden its capabilities beyond its core completion contract business to include the management of other forms of entertainment risk cover.

FFI is also exploring various affiliations with other insurance intermediaries to further grow this line of business.

In the 12 months preceding the acquisition, Reel Media generated US$9.9 million in revenues and adjusted EBITDA of US$2.56 million.

"Alongside our recent acquisitions in post-production services, today's announcement is a continued demonstration of our commitment to deploy the proceeds of our recent IPO to growth opportunities for our shareholders," said Steven Ransohoff, the chief executive officer of FFI.

In a separate announcement, FFI revealed group revenues in the six months to the end of September rose 55.1% to US$24.2mln from US$15.6mln in the same period of 2016.

Completion contract revenue rose 24.3% to US$18.9mln.

Underlying earnings before interest and tax (EBIT) expanded to US$7.1mln from US$5.4mln the year before.

Factoring in flotation costs of US$8.9mln, reported EBIT was negative at US$1.8mln versus a profit the previous year of US$4.9mln.

On the plus side, the flotation did boost the company’s coffers, and net cash at the end of September had increased to US$41.5mln from US$15.7mln a year earlier.

The company saw growth in all of its contract completion markets except for the US where a scandal involving one prominent independent film maker led to project delays.

“It is frustrating to have been impacted by recent events in the US film business as our core business has experienced growth in the rest of the world and the US business had been on track to meet expectations until scandals erupted in the last quarter of the calendar year resulting in the delay or cancellation of several projects,” said Ransohoff. 

“As we move towards the fiscal fourth quarter, I expect a busy end to our financial year and further announcements on our use of IPO proceeds,” he added.

Shares in FFI were down 1.3% in afternoon trading.

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Thu, 21 Dec 2017 15:05:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189184/ffi-reels-in-reel-media-says-us-trading-affected-by-scandal-involving-leading-independent-film-producer-189184.html
<![CDATA[RNS press release - Acquisition ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20171211070005_13460000/ Mon, 11 Dec 2017 18:00:05 +1100 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20171211070005_13460000/ <![CDATA[News - FFI acquires Aussie post-production media services firm Buff Dubs ]]> https://www.proactiveinvestors.com.au/companies/news/188570/ffi-acquires-aussie-post-production-media-services-firm-buff-dubs-188570.html Film production underwriter FFI Holdings Plc (LON:FFI) is to acquire Buff Dubs, an Australian post-production services provider, for an initial payment of A$881,000.

The acquisition follows the signing of a letter of intent in September and is the third acquisition this year in the field of post-production services.

READ: FFI Holdings strengthens ancillary business with EPS-Cineworks acquisition

Buff Dubs was founded in 2005 and has preferred provider and vendor status with some of the world's leading media platforms, including Netflix, Apple and Google, as well as gaming platforms including PlayStation and Xbox.

In its last financial year, Buff Dubs generated A$4.3mln of revenues and underlying earnings (EBITDA) of A$881,000.

As well as the initial down-payment of A$881,000 FFI will make five annual payments to the vendors of Buff Dubs that are equivalent to Buff Dubs’ EBITDA at a four-times multiple.

The management and directors of Buff Dubs will be staying on board to oversee the operations and growth of the company.

READ: Film completion contract firm FFI Holdings seeking AIM spotlight with listing move

"2017 has seen FFI make a concerted expansion into post-production services as we broaden our business to serve the wider needs of our entertainment industry clients,” said Steven Ransohoff, chief executive officer of FFI.

“As with Pivotal Post and EPS-Cineworks, Buff Dubs brings valuable expertise and customer relationships to FFI. Buff Dubs' vendor relationships across consumer media platforms such as Netflix, Apple and Google are particularly exciting opportunities for FFI as we help our clients reach new audiences with their content," he added.

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Mon, 11 Dec 2017 08:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/188570/ffi-acquires-aussie-post-production-media-services-firm-buff-dubs-188570.html
<![CDATA[News - FFI Holdings builds on a position of strength ]]> https://www.proactiveinvestors.com.au/companies/news/187850/ffi-holdings-builds-on-a-position-of-strength-187850.html Film making is a risky business and before any cameras start rolling a visit to FFI Holdings Plc (LON:FFI) is usually in order.

FFI is the world’s leading issuer of completion contracts.

They do what it says on the can. If a film is not completed or runs late, the contract kicks in and it is beholden on the contract issuer to make sure the film gets made or the backers get some or all of their investment back.

Offloading risks of film/TV production

“These contracts help offload risks to production budgets and timelines for financiers, as well as for FFI through long-standing insurance relationships,” it said. 

Some of the most famous films ever made have been backed by FFI.

From the first Bond film, Dr No, in 1962 to The Hunger Games in 2012 and last year’s blockbuster La La Land, FFI has issued contracts on approximately 1,700 productions with gross budgets in excess of US$17bn.

Dominant market share

Having come up with the idea of completion contracts in the first place the group has an 80% share of the market 

Founded in 1950 in the UK, the HQ is now in Los Angeles with the first completion contracts recently signed in China.

Trading last year was good with underlying profits of US$12.7mln on revenues of US$38.8mln, up 9%.

Those strong numbers helped FFI raise £26.5mln when it listed on Aim in June.

Using that cash the emphasis has switched to ancillary services such as post production work and equipment rental.

Cineworks acquisition boosts ancillary offering

November saw the acquisition of digital post-editing equipment rental group Cineworks Digital Studios, its first deal since listing on AIM.

EPS-Cineworks has a strong market presence in North America, especially in post-production work for television and independent projects.

Growth here is being driven by smaller content providers such as streaming companies that do not have post-production capabilities.

Sales were US $9.4mln in 2016 on which EPS-Cineworks made underlying profits [EBITDA] of US$2.7mln. 

EPS-Cineworks management is staying on and FFI sees many synergies between the business and Pivotal Post, which was acquired in February 2017.

Kevin Hyman, Pivotal Post’s chief executive, will manage the combined operation.

Steven Ransohoff, FFI’s chief executive, said: "Today's transaction underscores FFI's commitment to expanding its ancillary business offerings, in line with the diversification strategy we set out at the time of our IPO.”

Liberum sees good fit with Pivotal

House broker Liberum said the acquisition will give FFI 50-60% of the post-production market to add to its dominance in completion contracts.

Cinework’s business is split 25% theatrical and 75% televisions, which is the mirror image of Pivotal.

Through its relationship with Spielberg, Pivotal also has some high tech equipment that it can share with EPS-Cineworks.

“Post-production should be a growth market given the rise in the amount of content coming from streaming companies, who do not have traditional post production capabilities.

“The business has an attractive EBITDA margin [profit] of 29%, which can be increased though the synergies.”

Attractive purchase price

Liberum added the price for EPS-Cineworks looks modest and the broker has a target price of 182p.

Shares were trading at 155p, valuing the company at around £250mln.

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Mon, 27 Nov 2017 11:59:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187850/ffi-holdings-builds-on-a-position-of-strength-187850.html
<![CDATA[RNS press release - Acquisition ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20171115070003_13431691/ Wed, 15 Nov 2017 18:00:03 +1100 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20171115070003_13431691/ <![CDATA[News - FFI Holdings strengthens ancillary business with EPS-Cineworks acquisition ]]> https://www.proactiveinvestors.com.au/companies/news/187275/ffi-holdings-strengthens-ancillary-business-with-eps-cineworks-acquisition-187275.html Film production underwriter FFI Holdings Plc (LON:FFI) has completed the acquisition of digital post-editing group Cineworks Digital Studios, its first since listing on AIM in June.

The deal, which was originally agreed in September, will boost the range of ancillary services it can offer, said FFI.

READ: Film completion contract firm FFI Holdings seeking AIM spotlight with listing move

EPS-Cineworks has a strong market presence in North America, especially in post-production work for television and independent projects.

Growth here is being driven by smaller content providers such as streaming companies that do not have post-production capabilities.

Sales were US $9.4mln in 2016 on which EPS-Cineworks made underlying profits [EBITDA] of US$2.7mln. 

The total consideration is US$9.54mln, of which 87% has been paid in cash with the remainder in two instalments based on performance.

Management to stay on

EPS-Cineworks management is staying on and FFI sees many synergies between the business and Pivotal Post, which was acquired in February 2017.

Kevin Hyman, Pivotal Post’s chief executive, will manage the combined operation.

Steven Ransohoff, FFI’s chief executive,  said: "Today's transaction underscores FFI's commitment to expanding its ancillary business offerings, in line with the diversification strategy we set out at the time of our IPO.”

FFI was founded in the 1950’s and has underwritten around 1,700 productions with gross budgets in excess of US$17bn ranging from the first Bond movie, Dr. No in 1962, to The Hunger Games (2012) and La-La Land (2016).

 

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Wed, 15 Nov 2017 07:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187275/ffi-holdings-strengthens-ancillary-business-with-eps-cineworks-acquisition-187275.html
<![CDATA[RNS press release - Director/PDMR Shareholding/Amendment ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20171006161016_13389343/ Sat, 07 Oct 2017 02:10:16 +1100 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20171006161016_13389343/ <![CDATA[RNS press release - Letter of Intent Signed ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170925070005_13373387/ Mon, 25 Sep 2017 16:00:05 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170925070005_13373387/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170921090001_13370629/ Thu, 21 Sep 2017 18:00:01 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170921090001_13370629/ <![CDATA[RNS press release - Final Results for Film Finances, Inc. ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170921070005_13370188/ Thu, 21 Sep 2017 16:00:05 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170921070005_13370188/ <![CDATA[RNS press release - Creation of Captive Insurer & Trading Update ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170918070005_13365346/ Mon, 18 Sep 2017 16:00:05 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170918070005_13365346/ <![CDATA[RNS press release - Directorate Change ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170831070006_13346543/ Thu, 31 Aug 2017 16:00:06 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170831070006_13346543/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170705163838_13285283/ Thu, 06 Jul 2017 01:38:38 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170705163838_13285283/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170704181958_13284007/ Wed, 05 Jul 2017 03:19:58 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170704181958_13284007/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170704181743_13284006/ Wed, 05 Jul 2017 03:17:43 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170704181743_13284006/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170704181654_13284005/ Wed, 05 Jul 2017 03:16:54 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170704181654_13284005/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170704181231_13284003/ Wed, 05 Jul 2017 03:12:31 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170704181231_13284003/ <![CDATA[RNS press release - Admission to AIM and First Day of Dealings ]]> https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170630070004_13278721/ Fri, 30 Jun 2017 16:00:04 +1000 https://www.proactiveinvestors.com.au/companies/rns/15798/LSE20170630070004_13278721/ <![CDATA[News - Film completion contract firm FFI Holdings seeking AIM spotlight with listing move ]]> https://www.proactiveinvestors.com.au/companies/news/179401/film-completion-contract-firm-ffi-holdings-seeking-aim-spotlight-with-listing-move-179401.html Film completion contracts firm FFI Holdings PLC is seeking a listing on London's AIM, according to a London Stock Exchange filing, although no further details of the move were provided.

FFI provides the financiers of film and television productions with contracts that such productions will be completed on time, on budget and to a basic pre-agreed specification.

Since 2008, the group, said it has issued completion contracts to all the leading financiers involved in the entertainment industry, unlocking funding for approximately 1,700 productions with gross production budgets estimated to be in excess of US$17bn.

The group was founded in London in 1950 and is now headquartered in Los Angeles, US, with 11 offices globally including in London, Stockholm, Toronto, New York, Johannesburg, Cologne and Shanghai.

The listing statement continued: "FFI is a trusted, iconic brand positioned at the centre of the independent film and television entertainment industry.”

It concluded: "This extensive network of longstanding relationships, together with FFI's deep knowledge and expertise of the film and television production process, has enabled it to secure a leading market share globally and a high level of repeat business from existing clients in its core completion contract business.”

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Fri, 16 Jun 2017 14:27:00 +1000 https://www.proactiveinvestors.com.au/companies/news/179401/film-completion-contract-firm-ffi-holdings-seeking-aim-spotlight-with-listing-move-179401.html