Cont...29 May 2014 14:48
The Directors are evaluating other such proposals and believe that this new
strategy will provide a substantial revenue stream to the Company and will
re-build shareholders' funds.
RESULTS
Our residential development in Wellingborough generated gross rental income of
GBP147,000 (2012: GBP149,000) and, after associated operating costs, resulted in
net rental income of GBP113,000 (2012: GBP117,000). GBP100,000 of the impairment
provision made in previous years against the value of the Wellingborough
properties has been reversed during the year due to the market value of the
portfolio increasing. In addition, the Group wrote off GBP17,000 (2012: GBP116,000)
invested in the production of the high powered motor. Administrative expenses
reduced to GBP73,000 (2012: GBP84,000) and after finance costs of GBP102,000 (2012: GBP
100,000) the profit before and after taxation was GBP36,000 (2012: loss of GBP
171,000) resulting in earnings per share of 0.08p (2012: loss of 0.39p).
The Group's net assets have increased to GBP205,000 (2012: GBP169,000) representing
net asset value per share of 0.47p (2012: 0.39p). Net asset value per share is
calculated by dividing the net assets of the Group by the number of ordinary
shares in existence at the balance sheet date.
The Directors do not recommend the payment of a dividend.
The Group's largest shareholder, Stephen Wicks, has agreed to provide further
financial support to the Group for the foreseeable future, if required. As at
the year end there were no loans due to Mr Wicks.
OPERATIONS
Our investment portfolio of 20 freehold houses in Wellingborough,
Northamptonshire remains fully let and in the current financial year the Group
has experienced an increase of approximately 5% in gross rents being achieved.
The properties are continuing to be let on short term tenancies and during the
year they were reclassified as investment property within non-current assets in
the Statement of Financial Position.
The Group continues to hold an investment in EiRx Therapeutics plc which has
been previously fully provided against.
OUTLOOK
As set out above, the provision of development funding for experienced,
undercapitalised housebuilders on prime sites, should enable the Group to
create a substantial profit stream over the coming period and I therefore
believe that the prospects for the Group are beginning to look positive.
Bill Weston
GROUP STRATEGIC REPORT
Results and performance
The results of the group for the year show a profit on ordinary activities
before and after taxation of GBP36,000 (2012: loss of GBP171,000). The
shareholders' funds for the Group total GBP205,000 (2012: GBP169,000). The
Directors do not recommend the payment of a dividend for the year ended 31
December 2013.
The performance of the Group during 2013 was similar to that of 2012, with
almost 100% occupancy on the rent