PANTHER SECURITIES PLC

Earnings Release • Aug 5, 2014

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PANTHER SECURITIES PLC - Trading update - Wimbledon Studios Limited

PR Newswire

London, August 5

                                                              5 August 2014                            Panther Securities PLC                   ("Panther", the "Company" or the "Group")                  Trading update - Wimbledon Studios LimitedIt is with regret that the Company reports that administrators from KPMG LLPwere appointed today to resolve the financial issues of our tenant andassociate investment Wimbledon Studios Ltd ("Wimbledon Studios").Panther, as an investor, originally subscribed £150,000 for 25 per cent of theoriginal start-up share capital of Wimbledon Studios, as well as providingworking capital loan facility of £622,000, which was fully drawn down attoday's date. The investment was fully written down and all but £220,000 of theloan was provided against in the accounts for the year ended 31 December 2013.The Group was also the landlord of the Studio property and assisted theWimbledon Studios business by not collecting rent and lease payments forfixtures. At today's date, the Group is owed £1,641,000 by Wimbledon Studiosregarding these rental payments, of which £1,485,000 was provided within theaccounts for the year ended 31 December 2013, leaving remaining exposure £156,000.Therefore the total unprovided debt to the Group is currently £376,000.Despite the Board of Panther being of the opinion that it could not provide anyadditional financing, Andrew Perloff, Chairman of Panther, personally loanedWimbledon Studios additional finance of £250,000 as he believed the businessstill had some chance of survival through possible further outside investmentor the sale of the business as a going concern.Panther, who are a long term supporter of small businesses, has taken the viewthat it has a moral duty to smaller businesses and, as such, is prepared tosupport a slower close down process via administration, rather than a forcedliquidation, which would result in lower costs to Panther. This slower closedown will give the many small businesses in the media village time to prepareand find alternative premises.The Group has lost significant funds on its corporate investment and loans toWimbledon Studios, however, the majority of this was provided against in theaccounts for the year ended 31 December 2013. The Company expects that it willsuffer a further loss of between £376,000 (not provided against above) to circa£600,000 in the current financial year, depending on the success of theadministration of Wimbledon Studios.The Group continues to hold the property from which Wimbledon Studios hastraded and is looking into other options for the site, including the twointerested parties, mentioned in the announcement dated 29 July 2014.Finally, the Group would like to thank David Smith, who was previously thefinancial controller of Wimbledon Studios, who has taken the responsibility andbecome a Director to assist the trading business close down in the leastharmful manner. This has shown true loyalty to the various affected partiesincluding the media village and studio employees, considering the suddenresignation of the previous managing director.A further announcement will be made in due course.Enquiries:Panther Securities PLCAndrew Perloff - Chairman                                    Tel: 01707 667 300Simon Peters - Finance DirectorSanlam Securities UK Limited (Nominated Adviser and Broker)David Worlidge/Virginia Bull                                 Tel: 020 7628 2200