The Company was founded originally in 1993 as a means for investors to participate in theatre production as shareholders in a company dedicated to producing and investing in shows in London. Participation extended to opportunities for involvement in first nights, private readings, previews and other events. To date, the Company has been involved in over 75 productions.
Over the last 15 years the Company has enjoyed critical acclaim although, as is typical in theatre production, whilst some shows may enjoy both commercial and artistic success, this is not always the case. Taking on board the risky nature of theatre production, the Company has always had a policy of spreading the risk for shareholders by investing in several different productions.
Management
The Company was founded as Criterion Productions plc by Sally Greene with Lord Attenborough as Chairman. Sally remains the Chief Executive Officer and is the driving force behind the business, most recently having been instrumental in the creation of Billy Elliot The Musical - the Company's most successful show to date in a co-production with Working Title. In 2007, Robert Diamond took over as Chairman of Old Vic Productions. During their time as non-executive directors , two in particular , Stephen Daldry and Kevin Spacey, have been key to the Company's involvement in major projects, namely Billy Elliot The Musical and the Old Vic Theatre Company. Other non-executives from the business world, Robert Bourne and Bruce Walker, may not boast an Oscar but assist with the commercial and financial aspects. Joseph Smith, Executive Producer, brings with him a wealth of experience in non-profit and commercial theatre. Joseph has a successful 15 year track record of theatre production under his belt, including 10 years at the National Theatre where highlights involved producing the Transformation Season under Trevor Nunn. In addition to his considerable experience in the West End, Joseph has also spent the last four years working for the Broadway producer Ron Kastner in New York where he was Associate Producer for Gypsy, Life x 3, Talking Heads and The Retreat from Moscow.
Recent and Future Productions
The business has grown to the point that it now is the co-producer of the multi-award winning Billy Elliot The Musical in London, and Australia, and soon to launch on Broadway has helped to establish the Old Vic Theatre Company under the artistic direction of double Oscar winner Kevin Spacey has the UK rights to Vagina Monologues.
One of the benefits for Shareholders is, on occasions, being given the opportunity to invest directly alongside Old Vic Productions in its shows. Under an agreement with Working Title, Old Vic Productions has the ability to invest in the Broadway production and in others across North America and a tour is being considered. There is also the ability to take Billy Elliot The Musical to other territories and these will be considered as will the most appropriate way of taking the show to a particular region. It is possible that there may be opportunities to limit the risk for a particular territory by getting a local promoter to assume the main box office risk.
Business Model
Now that the Company is free from the restrictions imposed on activities under the BES and EIS (Business Expansion Scheme and Enterprise Investment Scheme) which gave original investors tax relief on their investments, Old Vic Productions will produce and co-produce shows in London and where appropriate look to transfer successful projects to Broadway and other territories.
The business model for Old Vic Productions is to put up a proportion of the funds for a project from its own resources, which sets it apart from some other producers, and to bring in investors in shows alongside. The benefits of this approach going forward are that it should limit the risk of any one show to the Company but as producer or co-producer, Old Vic Productions still earns a profit share on the funds from investors it has sourced, thereby enhancing the potential return on capital.
Old Vic Productions does not have an interest on the Old Vic Theatre building itself which is owned by The Old Vic Theatre Trust 2000, which is a registered charity.
CEO Investment and Use of Funds
The funds raised from the 2006 share offering allowed the Company to take Billy Elliot The Musical to Broadway with co-producers Working Title and to continue to support the Old Vic Theatre Company as well as participate in other shows which are under discussion.
Sally Greene, the CEO of Old Vic Productions, has provided a convertible loan facility to the Company limited to the sum of £700,000 so that there are funds available to make commitments to Billy Elliot The Musical in the USA. The loan is convertible at the same price as the Offer price of 50p per Ordinary Share.
It is the Board's intention to seek an admission to trading on the Ofex market for its ordinary shares at some time in the future. This will be when the Board believes that the Company's profits will be sustainable at an acceptable level.
Shareholder Benefits
Although the scale of activities has grown significantly, the ethos of the Company is still that of involving Shareholders in the process and excitement of new productions. According to the number of ordinary shares held, Shareholders will be entitled to certain benefits including invitations to first nights, private readings and other events normally only accessible to those integrally involved in the show. This aspect of Shareholders' involvement has always been at the heart of the Company and will remain so.
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