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FFI Holdings PLC: DEEP DIVE
OVERVIEW

FFI Holdings' bumpy AIM journey brought to an end by bid from Lumiere

At the Completion Contract business there have been lower volumes and the average budget per film has reduced
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OVERVIEW: FFI The Big Picture
Contracts have been delayed into the next financial year

 

  • FFT Holding specialises in film insurance and getting films completed

  • Offer from Lumiere of 25p per share

  • Underlying profits for the year to March will be around US$7.5mln

  • FFI set to delist once offer goes through

 

How it’s doing

FFI has struggled in current year with Completion Contract arm affected by lower volumes and a reduced average budget per film.

At Reel Media, the insurance agency, some films have been delayed into next year due to ending studio mergers.

 

Offer from Lumiere

Lumiere made a mandatory bid following its acquisition of FFI chief executive Steve Ransohoff’s 30.1% stake.

The offer price of 25p per share was a 28% premium to the close on 1 July.

Lumiere already holds a substantial stake in FFI and with the addition of the shares of Ransohoff and his family, its stake will rise to 68%.

Once the offer completes, the intention is to delist from AIM said Lumiere.

FFI joined the junior market almost two years ago but struggled in the wake of the drop in the number of films being produced that followed the Weinstein scandal.

Julian Bartlett, a non-executive director, said: "FFI's time on AIM has been blighted by a number of industry-specific headwinds which have largely been beyond our control; the diversification strategy we have followed will, we believe, in the longer-term bear fruit."

The offer values FFI at approximately £39.5 mln.

 

What it does

Completion contracts are tailored insurance policies to ensure films get finished and form the core of the business

Equipment rental comprises Pivotal and EPS-Cineworks following the latter’s acquisition in November last year.

Insurance agency Reel Media, bought in December 2017, provides cover 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.

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

FFI’s first piece of original content was a documentary about Pandas.

 

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FFI Holdings PLC Timeline

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