Prime Focus London PLC Company Update (9340W)

TIDMPFO

RNS Number : 9340W

Prime Focus London PLC

01 February 2013

1 February 2013

Prime Focus London PLC

(the "Company" or the "Group")

Company Update

The Company announces that in response to a formal request for further funding support from its wholly owned subsidiary company, PF Broadcast and Commercials Limited ("PFBC"), it is the Board of the Company's intention to request that the director of PFBC place PFBC into administration (the "Administration"). Accordingly the director has today filed a Notice of Intention to Appoint Administrators ("the Notice").

PFBC holds the legacy trading activities of both the Commercials Post Production and the Broadcast Post Production businesses. PFBC holds the employees engaged in the Commercials' trading activities. Liabilities in respect of equipment and property leases are mainly held in the plc or its other subsidiaries.

The decision to request that PFBC be placed into administration was taken following an assessment of the current financial position which established that PFBC has insufficient funding to meet its debts as they fall due. The Company continues to be dependent upon Prime Focus Limited, its Indian majority shareholder, for the funding of its working capital requirements. Whilst Prime Focus Limited has stated its continued support of the Company, it and the Board of the Company have concluded that PFBC is no longer able to continue to trade in its current form. The Notice will provide a 10 business day moratorium from any legal action being commenced or continued against PFBC. It is the understanding of the Company that during the period of the moratorium being in place in relation to PFBC that an urgent assessment will be undertaken on whether the business and assets of PFBC can be sold on a going concern basis.

Despite the aggressive reduction in operating costs which took place subsequent to the operational restructure earlier in the year, the Commercials activities of PFBC have continued to be a drag on performance. The Commercials operations of the Company in London continue to suffer from low volumes and suppressed margins and are the primary contributor to the requirement for funding support.

In contrast, the Broadcast business is performing well and continues to demonstrate both revenue and EBITDA growth over the previous year.

A further announcement regarding the Administration will be made in due course.

The Group's other trading operations in independent film and television VFX are unaffected and continue to trade as normal.

For further information, please contact

Prime Focus London Plc

Bernard Kumeta Chief Executive Officer +44 (0) 20 7565 1000

Northland Capital Partners Limited

Tim Metcalfe / Edward Hutton +44 (0) 20 7796 8800

Newgate Threadneedle

Graham Herring / Josh Royston +44 (0) 20 7653 9850

This information is provided by RNS

The company news service from the London Stock Exchange