INVESTOR RELATIONS


financial REPORTS


Interim Financial Statement 2014

Management report

In 2014, the Elite Group pursued with conviction its strategic plan of expansion in the global market. The positive trend noted in the previous year continued throughout this first half year resulting in an important and boost increasing of revenue up to Euro 67,361,427, more than 38 Million achieved in 2013 (Euro 28,941,772).

In particular, during first six months, the Group consolidated its position at the leader of the worldwide business model management market. Despite the challenging global economic envi ronment, with some major concerns in Europe, the Group has made further important progress along its path of growth leveraging on the strength of its brand Elite and on a relentless commitment to quality of services rendered.

The sales increase was mainly achieved thank to the good performance of the model management business. These positive results are due mainly to a healthy organic growth of existing agen cies and an excellent growth phase of the US new agency: "The Society".

Together with the revenue increasing, the cost of sales totaled Euro 46,433,973 Million in the first half 2014.The Group's gross profit totaled in 2014 Euro 20,927,453 Million with an a verage gross margin of about 31% on net revenue. Operating expenses (excluding depreciation and amortization) totaled Euro 17,421,916 in 2014.

Ebitda for the first half totaled Euro 3.5 Million with a relevant increase compared with 2013 when it was negative (- 1.8 Million). Mainly the operating expenses absorbed the improveme nt achieved at gross margin level. Especially labor costs totaled Euro 10.9 Million. These higher costs are primarily attributable to the development of model Management business thanks to a top quality h iring policy of new bookers and other professionals from the enlarged Group. Regarding to other costs, Professional services totaled Euro 2.1 Million and Other operating expenses Euro 2.2 Million.

Stefania Valenti
C.E.O.
Elite World S.A.

DECEMBER 2013 Financial DATA

Management report

In 2013, the Elite Group (the Group) pursued with conviction its strategic plan of expansion in the global market.

The positive trend noted in the previous year continued throughout this year resulting in an important and boost increasing of full year revenue of Euro 65,064,763, 24% more than in 2012 (Euro 52,438,812).

In particular, the Group consolidated its position at the leader of the worldwide business model management market. Despite the challenging global economic environment, with some major concerns in Europe, the Group has made further important progress along its path of growth leveraging on the strength of its brand Elite and on a relentless commitment to quality of services rendered.

The actions undertaken in the course of 2013 have always been consistent with the long-term business expansion strategy, implemented in recent years.

The Group maintains a unique and powerful brand image and remains confident that the strategy which has been coherently deployed in recent years with regard to the acquisition of new business and its expansion in North America and soon in Asia.

This strategy will again be a key success factor for the forthcoming fiscal year.

Stefania Valenti
C.E.O.
Elite World S.A.

Interim Financial Statement 2013

Management report

The first half of the year saw an overall increase in revenues of almost 3M which was due principally to the continued strong performance of the model management division whose revenues grew by 12%. Revenues of the licensing division, however, declined by 10% as a direct consequence of our continuing restructuring efforts aimed at enhancing the quality and range of Elite-branded products and in eliminating certain overlapping agreements which had been entered into by the previous management. Although small as a proportion of total revenues, it is encouraging that, in a difficult environment, licensing and sponsorship revenues in relation to the Elite Model Look contest showed an increase of 28% over prior year.

Overall gross margin declined by 2.4% reflecting the reduced revenues from the licensing division and also lower margins in the model management division due principally to the lower margins generated by the new agency in New York during the initial start-up period. We expect margins to remain at a lower level for the remainder of the year but to progressively increase from 2014 onwards.

The comparison of overhead costs is distorted due to the fact that group recharges were only included in the full year accounts for 2012 but have been reflected in the first half numbers for 2013. Similarly the increase in staff costs reflects both the addition of the New York agency and the addition of certain management staff who were paid by in parent company in 2012 and whose costs, as noted above, were only recharged at the year-end.

The overall net loss of 3,455K reflects the efforts which are being undertaken in all three business divisions, the geographic expansion in model management with the opening of the agency in New York, the restructuring of the licensing division and the investments being made to raise the profile of the Elite Model Look contest in certain key markets. While all three have a negative impact on earnings in the short term, we are confident that they will be strong drivers of future profitability.

There have been two important recent developments in China with the opening of the first Elite agency in mainland China through a license agreement with Shanghai Gold Typhoon, a sister company of Elite World and the signature by PGM, our parent company, of a memorandum of understanding with Longhua New District establishing a long term strategic collaboration partnership. The organisation of 30th Elite Model Look World Final in Shenzhen will be the starting point of this prestigious partnership. In addition, Longhua will also have an option to organise the World Final in Shenzhen for the following two years.

Stefania Valenti
C.E.O.
Elite World S.A.

DECEMBER 2012 Financial DATA

Management report

The positive trend noted in the first half of 2012 continued throughout the year resulting in full year revenues of 52.4M representing an increase of 5.5M on the previous year. This increase was due to a strong performance from the model management division whose revenues increased by 6.1M. This increase was, however, offset by a reduction of 0.8M in revenues from the licensing division while the Elite Model Look division had an increase in revenues of 0.2M. The reduction in licensing revenues is the result of our decision to terminate certain existing contracts both as part of our ongoing efforts to enhance the quality and range of Elite-branded products and in order to eliminate certain overlapping agreements which had been entered into by the previous management. As the licensing division generates much higher margins than model management, this has resulted in an overall reduction in Gross Profit for the year

In addition to the provisions which have been made in respect to the early termination of certain licensing agreements referred to above, the group has incurred significant expenditure during the year in both relaunching the Elite brand through the development of the Elite Model Look event and in the extension of our agency network through the opening of an agency in New York.

As a consequence, the loss for the year has increased to 8,820K from 1,316K in the previous year, representing a loss per share of 45 cents against a loss of 7 cents per share in 2011.

In relation to the balance sheet, it should be noted that the group repaid all outstanding bank loans early in 2012 and borrowings at year-end are solely from companies controlled by our majority shareholder. Also it should be noted that in spite of the loss incurred, the Group had a positive cash balance of 7.4M at the year-end which confirms its financial solidity. It is moreover the intention of the board to take all necessary steps to ensure that the Group has adequate financing available for all future investment projects.

The early months of 2013 have shown an overall increase in revenues from the model management division although certain agencies are encountering more difficult trading conditions in their local markets. The New York agency commenced trading early in 2013 and, although still in the start-up phase, we are encouraged by the initial performance.

Overall, while the financial results for 2012 are negative, this was effectively the first year in our development plan through which we intend to strongly grow the business both organically and through acquisitions. We anticipate that the coming two years will see a considerable transformation in the Group and we are confident that the decisions which were taken in the past year have laid the foundations which are crucial to our future success and the global development.

Stefania Valenti
C.E.O.
Elite World S.A.

Interim Financial Statement 2012

Management report

We are pleased to report that the results for the first half of the year show an overall increase in revenues of slightly over 2M which was due to a strong performance from the model management division. An increase of 12% in model management revenues was, however, offset by a reduction of 16% in revenues from the licensing division. The reduction in licensing revenues is the result of our decision to terminate certain existing contracts both as part of our ongoing efforts to enhance the quality and range of Elite-branded products and in order to eliminate certain overlapping agreements which had been entered into by the previous management. As the licensing division generates much higher margins than model management, this has resulted in an overall reduction in both Gross Profit and Operating Profit for the period.

There had been a profit from other operations of 221K, due principally to the compensation received for the early termination of the lease on the previous offices in Paris, against a loss of 551K in 2011. This positive variation had allowed the group to record an increase of 30% in net profit (2,169K v 1,665K) with a corresponding increase in earnings per share to 11 cents against 8 cents in 2011.

In relation to the balance sheet, it should be noted that the group repaid all outstanding bank loans early in the year and was accordingly debt-free at the end of the period. Other balance sheet variations, notably trade receivables, were due principally to seasonality factors between June and December.

Despite the current difficult economic climate, we anticipate that the model management division will continue its good performance in the second half of the year. The short term results will, nonetheless, be adversely affected by our decision to open agencies in New York and Shanghai in the latter part of this year. This will result in an increase in costs in the initial start-up period before the new agencies becomes profitable.

In relation to the licensing division, as part of our plan to relaunch the Elite brand, we have embarked on a five year plan to develop the Elite Model Look event. In the current year, this will involve significant investments in promoting the national finals in the U.K. and Italy and particularly in staging the international final which will be held in China. We believe that these are strategically important markets and the presence of a prestigious Elite Model Look event will generate significant media interest, thereby allowing us to promote the brand in the most cost-effective manner.

Stefania Valenti
C.E.O.
Elite World S.A.


DECEMBER 2011 Financial DATA

Management report

It is satisfying to report that top line revenues have grown by 17% over the previous year. The Model Management division has again performed well with a revenue increase of 19%. The increase in revenues of the Licensing division (+16%) and the reduction in revenues of the Elite Model Look division (-29%) were due in part to the fact that a license was granted for the organization of the 2011 International Final. This resulted in increased Licensing revenues and a corresponding reduction in Elite Model Look sponsorship revenues.

In line with revenues, Gross Profit increased by 18% while Operating Profit, after deduction of overhead expenses, showed an increase of 2.1 million Euros (1,984K v -117K). This strong performance was, however, negatively impacted by both higher financing costs and, more particularly, a significant deferred tax charge.

While many of the issues identified at the end of 2010, and covered by the 3 million Euros provision which was made at the time, have since been resolved, it was considered prudent to maintain a provision of 1,984K to cover risks which are still pending. This together with certain restructuring costs resulted in an exceptional charge of 1,513K.

These various elements have resulted in a loss for the year of 1,316K (-7 cents per share) against a loss in 2010 of 2,173 (-11 cents per share)

The model agencies have continued to perform well during the early months of 2012 and we are actively seeking to grow the Licensing business through both existing and new contracts.

Mr. Cristian D'Ippolito
C.E.O.
Elite World S.A.


SEPTEMBER 2011 Financial DATA

Nine months to September 30, 2011

    1. The core business of the modeling agencies continued the strong performance seen in the first half of the year posting a 21% increase in year-to-date revenues (30,830K v 25,415K). Licensing revenues also progressed by a more modest 11% (4,238K v 3,823K) giving an overall increase in revenues of 20% (35,068K v 25,415K) against prior year.

    2. Gross margin percentage on the modeling business declined slightly at 31% (32% in 2010) and overall gross margin similarly declined by 2% reflecting also a higher proportion of modeling revenues. Gross margin in value terms grew by 14% (13,739K v 12,051K) which combined with a 9% increase in overheads resulted in an increase in EBIT before exceptional items of 71% (1,398K v 816K).

    3. After taking account of exceptional items, which related principally to contract termination payments, net profit, after interest, tax and minority interests decreased by 46% (351KE v 659K) resulting in earnings per share for the period of 2 cents per share compared to 3 cents per share in Q3, 2010.

Outlook

We maintain the outlook that we envisaged at the end of Q1 with growth in revenues in both divisions but at reduced rates compared to those observed in the first half of the year.


JUNE 2011 Financial DATA

Six months to June 30, 2011

    1. Growth in the core business of the modeling agencies has continued through Q2 with a year to date increase 20% in revenues against prior year. Revenues in the Licensing division also improved with a 34% increase with the increase being evenly split between revenues from product licensees and increased sponsorship income in relation to the Elite Model Look contest. The result was an overall increase in revenues of 22%.

    2. Gross margin percentage on the modeling business improved to 34% from 32% while the overall gross margin also improved to 34% from 32% for the corresponding period in 2010. Gross margin in value terms grew by 32% (10,138K v 7,707K) while EBIT after exceptional items increased by 57%.

    3. Net profit, after interest, tax and minority interests increased by 34% (1,367K v 1,018K) resulting in earnings per share for the period of 8 cents per share compared to 5 cents per share in prior year.

Outlook

We maintain the outlook that we envisaged at the end of Q1 with growth in revenues in both divisions but at reduced rates compared to those observed in the first half of the year.


MARCH 2011 Financial DATA

Three months to March 31, 2011

    1. The core business of the modeling agencies continued the strong growth seen in 2010 with a 17% increase in Q1 revenues against prior year. Together with a more modest increase of 8% in licensing revenues, overall revenues grew by 16% in Q1.

    2. Gross margin percentage on the modeling business remained stable at 35% and overall gross margin declined by 1% reflecting the high proportion of modeling revenues which represented 89% of total revenues against 88% for the corresponding period in 2010. Gross margin in value terms grew by 21% which

    3. Net profit, after interest, tax and minority interests increased by 30% resulting in earnings per share for the period of 6 cents per share compared to 5 cents per share in Q1, 2010.

Outlook

We are satisfied by the continued strong performance of the modeling business although we recognize that there is still scope to increase the profitability of this division. Q1 is historically the best quarter for this business but we nonetheless anticipate growth to continue over the remainder of the year albeit at a lower rate. The performance of the licensing business is more difficult to forecast but we expect to see growth in a range of 5-10% over the year.


DECEMBER 2010 Financial DATA

Management report

A strong performance from the model management division in 2010 allowed the Group to record a 15% increase in revenues over the previous year. Model management revenues increased by 15% while the licensing revenues generated from the sale of branded products showed a decline of 7%.The overall gross margin decrease from 41% to 39% is due to the change in the business mix. Model management in 2010 represented 85% of the group sales compared to 84% in the previous year.

The Gross Profit increase from 14,329K€ to 15,817K€ in 2010 was offset by an increase in overheads and provisions for doubtful debts, both for models and clients, of over 800K€. This resulted in an operating loss of 177K€ against a corresponding profit of 604K€ in 2009. After interest, extraordinary items, tax and minority interests, and in particular considering the general risk provision referred to below, the net loss for the year amounted to 2,358K€ (-12 cents per share) against a profit in 2009 of 780K€ (4 cents per share).

During the latter part of the last year Pacific Global Management (”PGM”), a Luxembourg-based company, acquired a majority stake in Elite World. Given PGM’s other investments in the music and entertainment sectors, the scope to develop potential synergies with Elite’s activities will be beneficial to the Group in the future.

Following PGM’s acquisition, a review was conducted on financial, legal and fiscal aspects of the Group’s business. As a result, and in conjunction with the adoption of IFRS for the Group consolidated accounts, it was considered prudent to make a general risk provision of three million Euros. While management will endeavour to manage these pending risks in order this minimize their impact, this amount represents our best estimate of the current potential exposure.

The business activity in the early part of this year has shown a continued good performance by the model management division and an improvement in the licensing revenues. While a number of operational issues remain to be resolved in the short term, we are confident that the Group is well positioned to develop both its core business of model management and its brand through licensing contracts in the future.

Mr. Cristian DIppolito
C.E.O.
Elite World S.A.


SEPTEMBER 2010 Financial DATA

Nine months to September 30, 2010
  1. The strong performance from the core business of the modeling agencies continued in Q3 with an increase in revenues of 12% over prior year. Licensing revenues, while showing an improvement on the first two quarters, remain weak. Revenues from sales by Elite licensees, with a reduction of 16%, have been adversely affected by the termination of certain contracts while the new license agreements have yet to generate revenues. Licensing revenues from other sources relate principally to the Elite Model Look contest. Overall there has been an increase in revenues of 9%.

  1. Gross margin percentage on the modeling business was stable and overall declined by 1 % due to the reduced proportion of licensing revenues. Overheads increased by 14% due to the addition of the three new agencies during Q1 and Q2 2009. The net effect was a decrease in EBIT of 43%.

  1. Net profit, after interest, tax and minority interests decreased by 48% resulting in earnings per share for the period of 3 cents per share compared to 6 cents per share in at end Q3 2009.

Outlook

While Q4 is likely to remain depressed, we consider that the reduction in licensing revenues is a temporary phenomenon and expect renewed growth in 2011. Growth in modeling revenues should continue albeit at a reduced pace given the very strong year-to-date performance.




JUNE 2010 Financial DATA

Six months to June 30, 2010
  1. As was the case in Q1 there was a strong performance from the core business of the modeling agencies with an increase of 16%. Licensing revenues were weak however with a drop of 21% on prior year reflecting weakness in consumer spending in the principal markets for our licensed products. This resulted in an increase in overall revenues of 10%.

  1. Gross margin percentage on the modeling business improved by 1.9% stable and overall declined by 1.3% reflecting the higher proportion of modeling revenues. Overheads increased by 13% due to the addition of the three new agencies during Q1 and Q2 2009. The net effect was a decrease in EBIT of 17%.

  1. Net profit, after interest, tax and minority interests increased by 18% resulting in earnings per share for the period of 5 cents per share compared to 6 cents per share in at end Q2 2009.

Outlook

We continue to anticipate good growth from the core business over the remainder of the year with almost all agencies showing increased revenues against prior year. The licensing business is currently weak but we are optimistic that we will see an improved performance in the second half of the year.




MARCH 2010 Financial DATA

Three months to March 31, 2010
  1. While overall revenues increased by 20% on prior year, the principal reason was a strong performance from the modeling agencies whose revenues were up 23%. Licensing revenues showed a small increase of 2% reflecting the continuing weakness in consumer spending.

  1. Gross margin percentage on the modeling business remained stable and overall declined by 1% reflecting the high proportion of modeling revenues. Overheads increased by 20% due to the addition of the three new agencies during Q1 and Q2 2009. The net effect was an increase in EBIT of 6%.

  1. Net profit, after interest, tax and minority interests increased by 3% resulting in earnings per share for the period of 5 cents per share which is unchanged on Q1, 2009.

  1. The negative movement in cash, which is typically the case in Q1, is due principally to the seasonal impact of increased trading activity against Q4.

Outlook

It will be difficult to maintain the same level of increase in modeling revenues, particularly as Q1 is the strongest single quarter for this business. Nonetheless we anticipate good growth from the core business over the remainder of the year. The licensing business is more difficult to forecast but we are optimistic for growth from geographical and product range expansion in the latter part of the year.





2009 Financial statements

MANAGEMENT REPORT

The severe economic downturn in the global economy, first experienced in 2008, continued throughout 2009 resulting in a challenging year for the Group. Our key businesses of model management and licensing were affected by cutbacks on advertising spend and reduced consumer spending respectively.

Nonetheless with the addition of three new agencies (Angels Paris, Elite London and Elite Copenhagen) in the early part of the year, we were able to grow modeling revenues by 8% against prior year. Licensing revenues which had been artificially inflated in 2008, when two Elite Model Look international finals were held, declined by 12%. The decline in licensing revenues derived purely from sales branded products was 5%. While this decline is not dramatic it represented the first contraction in the steady growth of this business since its inception and reflects the difficult market conditions experienced by our licensees.

The reduced contribution from the licensing division combined with some pressure on margins in the modeling business resulted in a reduction in gross margin from 47% to 43%. While continuing a high level of investment in the protection of the brand, overheads were kept under tight control with the only increase coming from the addition of the three new agencies. Overall a decline of 48% in EBIT after exceptional items was compensated by favourable movements on interest, taxes and minority interests, resulting in a net increase of 6% in net profit. Earnings per share remained stable at 6 cents per share.

At an Extraordinary General Meeting of shareholders held on July 27, 2009, the decision was taken to restructure the balance sheet of Elite World S.A. This restructuring will allow the company to pay dividends out of distributable profits in respect of 2009 and subsequent years. I commented at the time that it is the Group’s policy to deliver value to shareholders and that the Board considers that the ability to payment dividends is a key element in the application of this policy. Accordingly an initial dividend of five cents per share will be proposed to the annual shareholders’ meeting.

The global economic climate continues to be uncertain in the early months of 2010. Nonetheless we remain confident that the combined strengths of our brand name and of our network allow us to continue to grow. We continue to see huge potential for growth in new markets and product categories and we will endeavor to exploit these opportunities to the full.

Bernard Hennet

Chairman and C.E.O.
Elite World S.A.




SEPTEMBER 2009 Financial DATA

Nine months to September 30, 2009

  1. Incorporating the results from the results from the three new subsidiaries, modeling revenues increased by 11% (6% on a like for like basis) over the corresponding period in 2008. Licensing revenues, however, declined by 5% but as previously noted, this is primarily due to the impact of the Elite Model Look International Final in Q2 2008.


  1. Gross margins showed a slight decline reflecting the reduced proportion of licensing revenues. As in the case of licensing revenues, overhead costs showed a reduction due to costs incurred in connection with the International Final in Q2 2008.


  1. Net profit, after interest, tax and minority interests was down by 26% against Q2, 2008 resulting in earnings per share of 6 cents per share for the period compared to 8 cents per share for the corresponding period in 2008.


Outlook

  • It is difficult draw conclusions regarding the strength of a recovery from the Q3 results as this is traditionally our weakest quarter due to the holiday period in July and August which impacts all our agencies and to a lesser extent also the licensing business. Nonetheless we anticipate that the growth achieved in the modeling business over the first nine months will be maintained over the full year and that licensing revenues will be more or less flat against prior year.



JUNE 2009 Financial DATA

Six months to June 30, 2009

Note: The financial statements previously issued included the results of the three recently acquired subsidiaries but not their revenues and expenses as this information was not available at the time of publication. For completeness purposes this information has now been incorporated in the above financial statements and the below notes revised accordingly.
  1. The trend noted in Q1 continued with some agencies showing good growth while others suffered from weak demand in their local markets. Including the results from the three new subsidiaries, the net impact was an increase in modeling revenues of 4%. Licensing revenues, however, fell by 9% but this drop is largely due to the impact of the Elite Model Look International Final in Q2 2008.


  1. Gross margins showed a slight decline reflecting the reduced proportion of licensing revenues. As in the case of licensing revenues, overhead costs showed a reduction due to costs incurred in connection with the International Final in Q2 2008.


  1. Net profit, after interest, tax and minority interests was down by 26% against Q2, 2008 resulting in earnings per share of 6 cents per share for the period compared to 8 cents per share for the corresponding period in 2008.


Outlook

  • We continue to be optimistic that modest growth can be achieved in the modeling business for the full year. Elite has currently a number of rising stars and the increased revenues they are generating has helped to offset the difficult market conditions.
    Given their dependence on consumer spending, predicting the future trend in licensing revenues is a more difficult task. While we are reassured that revenues have held up well despite the very weak economic conditions, we are conscious that we are unlikely to achieve more dynamic growth until there is a sustained economic recovery.



MARCH 2009 Financial DATA

Three months to March 31, 2009

  1. Revenues in the modeling business showed a slight decline of 3% against prior year. While some agencies showed good growth, others suffered from difficult conditions in their local markets. Licensing revenues were down by 25% with approximately half of the decrease being due to license fees invoiced in Q1 2008 in connection with the Elite Model Look International Final and the balance due to weaker consumer spending affecting sales of Elite branded products.


  1. Overall gross margins showed a slight decrease due to the reduced licensing revenues while those of the modeling business remained stable. As noted above for licensing revenues, overhead expenses fell compared to Q1 2008 due to the absence of costs relating to the Elite Model Look International Final.


  1. Net profit, after interest, tax and minority interests decreased by 21% resulting in earnings per share for the period of 5 cents per share against 6 cents per share in Q1, 2008.


Outlook

  • As noted in our year-end report, the performance of the modeling agencies has varied significantly due to local market conditions. We remain optimistic that we can achieve modest growth from this activity in the current year. In this respect we are pleased to note the smooth integration of the three new agencies (Angels Paris, Elite London and Elite Copenhagen) into the group’s network and we anticipate that all three will make a positive contribution to the group’s results in the current year.


  • Revenues from the licensing business are clearly heavily dependent on the evolution of consumer spending. We continue to work on enlarging the geographical spread of our products which will help to offset the current downturn in sales in existing markets and to build a platform for future expansion.




2008 Complete Financial Statements

MANAGEMENT REPORT

The problems experienced by the global economy during 2008 resulted in more difficult market conditions for the Group. In this context, we are satisfied that revenues from the modeling business resisted reasonably well showing a decline of just 2% on prior year. Licensing revenues, although showing a 10% increase, also suffered from a decline in consumer spending particularly in the latter part of the year.

Overall gross margin increased to 47% from 45% due mainly to the greater contribution from licensing activities but also to an improved margin from the modeling business. The increased gross margin was, however, offset by a 23% increase in overhead expenses due to the fact both the 2008 and 2009 Elite Model Look international finals were held during the year. Expenditure on trade mark registration and protection also continued at a significant level at part of our policy of maximizing the protection of the Group’s principal asset.

EBIT after exceptional items declined by 21% to 1.8M€ and the net result, after interest, tax and minority interests, by 42% to 1.2M€, resulting in earning per share of 6 cents against 10 cents in 2007.

Business activity in the early part of the current year has been mixed with certain agencies performing well and others suffering from the poor economic conditions in their local markets. 2009 will certainly be a year of slower growth but we remain confident that the Group is well positioned to benefit from any upturn in activity. The Group’s strong balance sheet will allow us to seize any opportunities for external growth which present themselves. In this context we have acquired majority stakes in three agencies (Angels Paris, Elite London and Elite Copenhagen) since the beginning of the year. While the total investment is relatively small we believe that these acquisitions are strategically important for the future development of the Group.

Bernard Hennet

Chairman and C.E.O.
Elite World S.A.




September 2008 FinaNcial data

Nine months to September 30, 2008


  1. The global economic slowdown impacted modeling revenues resulting in a reduction of 5% over the corresponding period in 2007. While the licensing division continued to progress, it was similarly impacted with growth in revenues slowing to 14%

  2. Overall gross margins decreased slightly from 46% to 45%. An increased overhead charge resulted from certain costs which were incurred in relation to the EML Final in Prague.

  3. Year-to-date net profit, after interest, tax and minority interests declined by 16% against Q3, 2007 and, correspondingly, earnings per share for the period declined from 10 cents per share to 9 cents per share.

  4. To reflect a more accurate split in costs between Models Fees and Commissions and Overhead Expenses, the 2007 Income Statement has been restated in order to be comparable to 2008. This is purely to facilitate the understanding of the financial statements and has no impact on the Net Profit in either period.


    Outlook :

  • The severity of the current economic crisis makes it difficult to forecast with any degree of certainty how our business will evolve in the coming months. We have been experiencing price pressure since the beginning of the year and while the increased strength of the dollar is a positive element there will undoubtedly be adverse effects from pressure on advertising budgets for some time to come. While reduced consumer spending will impact our licensing business, we are optimistic that the expansion of our business into new Markets (North America and China) will allow us to maintain a strong growth.





JUNE 2008 FinaNcial data

Six months to June 30, 2008


  1. The combined effects of reduced advertising spend by clients and a weak dollar continue to adversely affect revenues from the core business of the modeling agencies resulting in a decrease of 6% against the corresponding period in 2007. The licensing division, however, maintained its strong growth with an increase of 28%.

  2. Gross margins improved both overall and on the modeling business but were offset by an increased overhead charge which resulted in an EBIT which remained flat against prior year.

  3. Similarly net profit, after interest, tax and minority interests was stable against Q2, 2007 and, accordingly, earnings per share for the period are unchanged at 8 cents per share.

  4. The negative movement in cash noted in the prior quarter was partially reversed and this positive trend should continue over the remainder of the year.


    Outlook:

  • 1.While market conditions in the modeling business are weaker than we had anticipated at the beginning of the year we expect to see some improvement by the fourth quarter. The licensing business should continue its strong growth and we are currently working on several new projects which will drive growth in the future.



march 2008 FinaNcial data

Three months to March 31, 2008


  1. As noted in Q4 2007 the combined effects of reduced advertising spend by clients and a weak dollar again weighed on revenues from the core business of the modeling agencies resulting in a slight decrease of 2% against the corresponding period in 2007. The licensing division, however, continued its strong growth with an increase of 29%.
  2. Gross margins improved both overall and on the modeling business but were partially offset by an increased overhead charge which resulted in an increase in EBIT of 4.0%.
  3. Net profit, after interest, tax and minority interests increased by 3.3% resulting in earnings per share for the period of 6 cents per share which is unchanged on Q1, 2007.
  4. The negative movement in cash is due principally to the seasonal impact of increased trading activity against Q4 together with certain advance payments which were made in connection with the Elite Model Look World Final held in Prague in April. Such payments were repaid by sponsors in Q2.



Outlook :

  • Although market conditions are currently weak we anticipate that revenues from the modeling business will show a slight increase over the full year. The licensing business should continue its strong growth benefitting from both a geographical and a product range expansion. It should be noted, however, that revenues cannot simply be extrapolated over the full year as seasonal factors mean that Q1 tends to be the strongest single quarter in the modeling business.


2007 Complete Financial Statements

2007 FinaNcial data

2006 Complete Financial Statements

2006 finaNcial data



2005 COmplete finacialstatements

2005 financial data