LONDON (Alliance News) - Landscape Acquisition Holdings Ltd on Monday posted a loss in its first half as it has not yet acquired any companies and paid substantial charges on its founder preferred shares.
The buyout company, which raised USD484 million through its initial public offering in November, recorded a USD57.2 million loss in its first half ended April 30.
Of this loss, USD55.4 million was attributed to non-cash charges related to the company's founder preferred share dividend rights. The remaining loss came from Landscape's expenses and share warrants.
During the period, the company's investment income totalled USD2.6 million, with a further USD198,260 in other income.
Landscape has not declared a dividend but plans to do so once it has made an acquisition. Founder preferred shares will, if a dividend is in place, pay the equivalent of 20% of its ordinary share dividend. At present the company has issued 48.4 million ordinary shares and 1.6 million founder preferred shares.
"The company was formed to undertake an acquisition of a target company. There is no specific expected target value for the acquisition," said Landscape Chairman Paul Myners.
"Following completion of the acquisition, the objective of the company is expected to be to operate the acquired business...with a view to generating value for shareholders through operational improvements as well as potentially through additional complementary acquisitions," Myners added.
Myners was financial services secretary under UK prime minister Gordon Brown. He is currently a member of the House of Lords.
As at April 30 Landscape's net asset value was USD9.78 per share.
Shares in Landscape Acquisition were untraded at USD9.15 per share on Monday.