Round-the-world yacht race organiser Clipper Ventures has undergone a bout of reorganisation which will see it turn in a full year loss, writes William Davidson.

The restructuring, which was announced in December, means that Clipper will re-focus its energies on its core activities. These include the round-the-world race (which is under way at the moment and should finish in September 2001) and corporate sailing packages

This means that the internet and telecoms business Offshore Telecom will be floated off separately on Aim. Following the flotation, Clipper will hold a 9.4 per cent stake in the company, which will direct its attention towards the wireless telecoms side. Clipper's on-line needs will be met by Clipper Online, a new arm formed explicitly for this purpose.

This re-jigging rather overshadowed the results, which themselves were rather opaque due to a change of accounting period. In the six months to 31 October, turnover stood at £1.68 million, compared to a restated figure of £735,000 for the six months to 31 July 1999. The operating loss was trimmed from £227,000 to £123,000, translating into losses per share of 1p compared to 2.57p last time. There was no dividend.

On the race side, chairman Robin Knox-Johnston said that the potential value of sponsorship directly reflects the media coverage of the previous event - and that the current race has generated more than five times the media coverage over the 1998 race. Studies have shown that the current value of the 2000 Race should be around the £5 million mark.

The events and hospitality arm could not move into profitable waters due to hefty start-up costs thanks to a fleet of new 38ft yachts being delivered. The other two divisions are less healthy, with the Rigid Inflatable Boat business up for sale (at book value) while the clothing side is being closed down.

Despite predicting a full-year loss for 2001, the long-term prospects are brighter, if not brilliant. Today the shares moved up very slightly, from 50p to 55.5p,