MUSIC group EMI is putting on a brave face over the collapse
earlier this month of bid talks with Seagram, the Canadian entertainment and drinks group.
Seagram chose to buy
PolyGram, the world's largest music company, which Dutch electronics group Philips had put on the market.
EMI's shares have fallen from 575p and closed down a further 12p at 520p yesterday in tune with the general market malaise.
However, chairman Sir Colin Southgate, unveiling a drop in profits before tax and exceptional items from #380.5m to #307.1m for the year to March 31, 1998, robustly argued that the company faced ''a great future'' alone.
He stressed: ''We look forward to a great future as an independent force in music.''
EMI finance director Simon Duffy said: ''Our strategy remains unchanged. If people do approach us on a serious basis, then clearly we're obliged to have conversations with them and will do so in the normal way.''
He added: ''But we think we have a very attractive strategy as an independent force in music.''
The annual results - which included turnover down from #2511.5m to #2352.7m - were hit by a number of adverse factors including the strength of sterling, lower growth in the global music market and the economic downturn in Japan and South-east Asia.
On this basis, the figures do not reflect the underlying strength of the business across both emerging and developing markets, said EMI.
The strength of sterling sliced #73m off profits, which included HMV before it was recently sold for #500m to HMV Media Group.
Among other items, EMI took a #43.3m exceptional charge for the closure of its head office in New York and a termination payment to Jim Fifield, who resigned as EMI music chief earlier this year. There was also an exceptional gain of #101.3m, largely on the HMV retailing disposal.
The company achieved market share gains in the US, the UK and France, three of the world's five largest music markets, offsetting disappointment in Japan and Germany.
In North America it moved from number six in the market to number four. Overall, said Sir Colin, EMI increased its world market share to 14.8%, reinforcing its position as the world's third-largest music company.
Looking ahead, Duffy said he was comfortable with analysts' estimates that profits this year would show a modest rise to between #310m and #320m, ahead of tax and exceptionals.
EMI's Asian operations should improve this year, taking into account an expected turnaround in Japan. Without Japan, Asian markets would only breakeven.
The dividend is hiked 6.7% to 16p covered 1.5 times by earnings per share.
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