Pre-close trading update - Regulatory Release
- Trading expected to be at the top end of recently upgraded market expectations
- The Twilight Saga: New Moon number one selling DVD in UK and Canada in 2010
- Proposed move to the Main Market of London Stock Exchange
- Relocation of place of incorporation to Canada
- Revised equity incentive arrangements
Prior to entering its close period, Entertainment One Ltd (AIM: ETO), the independent international entertainment group, is pleased to announce the following update on trading for the financial year ended 31 March 2010.
The Company expects results for the financial year to be at the top end of the recently upgraded market expectations. During March 2010, the Company's DVD release of The Twilight Saga: New Moon reached number one in the UK and Canadian DVD charts with more than 1.5m units sold across the two territories; this followed its strong box office performance in November 2009. The outlook for the new financial year remains positive with a strong film slate across all territories and further growth in the TV business.
Results for the financial year ended 31 March 2010 will be announced on or around 25 May 2010.
Main Market Listing
Whilst the Board is pleased with the recent performance of the Company's share price, it continues to review opportunities to improve the value of the Company's shares and broaden its shareholder base.
The Company is also therefore pleased to announce that it is in dialogue with the UKLA regarding the move of its listing from AIM to a Standard Listing on the Main Market of the London Stock Exchange (the "Main Market"). The Board considers the current size, increasing maturity and ambition of the Company to be more appropriately served by a listing on London's Main Market.
Subject to UKLA and other approvals as required, it is the Company's intention to move on to the Main Market following the announcement of its full year results and contemporaneously with the redomiciliation of the Company as described below.
Proposed redomiciliation
In addition to the proposed move to the Main Market, the Board believes that the relocation of the Company's incorporation from the Cayman Islands to Canada will further improve its market perception and attract a wider investor base. The Company is therefore currently considering relocating its incorporation from the Cayman Islands to Canada. Concurrently the Company will change its residence for tax purposes from Jersey to Canada. The Board believes this will enable the Company to simplify its group structure and more efficiently address certain regulatory requirements applicable to businesses operating in the Canadian film and television distribution industry. It is anticipated that the relocation would be undertaken through a scheme of arrangement in the Cayman Islands, which would also be subject to the approval of the Cayman Islands courts and the Company's shareholders.
Further updates will be provided on progress of the redomiciliation and move to the Main Market.
Executive Share Scheme
The Board have approved the implementation of a new equity incentivisation scheme for the Executive Directors (Darren Throop, Patrice Theroux and Giles Willits (together the "Executives") as of 1 April 2010 (the "New Scheme"). Under the New Scheme, Executives will only be rewarded if Shareholder value is created, thereby aligning the interests of the Executives directly with those of Shareholders. Following the implementation of the New Scheme, the total maximum number of Ordinary Shares of the Company available for incentivisation of all employees will remain unchanged from that set out at the Admission of the Company to Aim in March 2007, being 15% on a fully diluted basis.
As part of the New Scheme, the Executives have entered into arrangements with the Company to give up their rights to 3,185,976 unvested options and/or share awards previously awarded to them.
Existing options and awards for employees other than the Executives remain unchanged as a result of the implementation of the New Scheme.
Enquiries:
Redleaf Communications
Emma Kane
Rebecca Sanders-Hewett
020 7566 6700
Entertainment One
Giles Willits
Scott MacFadyen
020 7907 3773
+1 416 903 6581
Singer Capital Markets Limited
(NOMAD and joint broker)
James Maxwell
Richard Savage
020 3205 7500
Cenkos Securities plc
Stephen Keys
Alex Aylen
020 7397 8926