20 Dec 2013 07:00
20 December 2013
LEGENDARY INVESTMENTS PLC ("Legendary" or the "Company")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013
EXECUTIVE CHAIRMAN'S STATEMENT
During the period, substantial progress was made at key investments, and progress continued at all core investments. Potential for value crystallisations and realisations are now in sight. Legendary continued to review potential investments, but no suitable investments were identified.
Dramatic progress continues at VirtualStock Limited. As announced in June 2013, VirtualStock won a landmark, renewable contract with the UK's largest retailer, Tesco PLC, to implement the cloud based e-commerce solution, The Edge™. Post the period end, The Edge™ was implemented and activated within Tesco PLC. Also post the period end, a further contract was signed with another major retailer, Kiddicare.com Limited, part of WM Morrison Supermarkets plc, and implementation and activation occurred shortly thereafter. A notable contract extension to support European expansion was also signed with Office Depot International.
These wins are the result of several months of dedicated work to the highest standards at VirtualStock. The wins, in which some of the world's leading companies have selected VirtualStock's solution (The Edge™) for critical online infrastructure, underlines the fact that VirtualStock continues to mature into a company capable of and trusted to supply world-class, critical online infrastructure solutions. VirtualStock's plan is to build on this success to accelerate growth. We are hopeful that value crystallisation is in sight.
Significant progress continues at Bosques Energeticos EBE S.A. de C.V. as the company continued to build on its sound knowledge and knowhow base. During the period it developed generation two elite Pongamia, which as announced in in November 2013 (post the period end) is flowering and exhibiting seed pods in under two years. In addition, generation four Jatropha was developed which is edible and yields seeds in as early as six months. Bosques believes that it is the first company to develop such plants. Through its research, development and innovation-based approach, Bosques has built up significant value. Legendary is assisting Bosques in conversations with a number of parties to develop its business further.
Significant progress continues at Amedeo Resources PLC (previously Creon Resources PLC). In April 2013, Amedeo, invested in MGR Resources PTE Ltd, a wholesale trader of ferrous metals and ore. Progress at MGR has been rapid, and the business made a substantial dividend payment to Amedeo in late July 2013. Progress also continued at Jiangsu Yangzijiang Offshore Engineering Co. Ltd ("YZJOE") with steel being struck in August on YZJOE's first rig order. In addition, wharf and slipway building commenced at YZJOE's new rig yard and is on schedule to be competed mid to late next year. Amedeo has the potential to become rapidly a large and valuable company. As a result of the assistance that Legendary has been giving to Amedeo, I was invited to join the Board of Amedeo. This I did in September 2013.
As reported in the 2013 Annual Report, Manas Minerals LLC owns the Padsha Ata Licence to mine for coal in Jalal-Abad, Kyrgystan. Soviet surveys suggest that the region contains 182 million tonnes of coal reserves of which 116 million is of coking coal quality. Results from Wardell Armstrong studies suggest that the coal formation is more intense and that the value of the coal is estimated at over US$15bn (US$85 per tonne). Various discussions are underway to progress this investment.
Medgold Resources Corp. continues to make progress having expanded its portfolio of permits and defined exploration targets. Sula Iron and Gold plc also continues to make progress having confirmed significant iron prospectivity in Sierra Leone. The Company has a small interest in Regency Mines plc; however it is not a core holding.
For the period, Legendary made a net loss on investments of £77,000 (2012: gain of £35,000). This was due to the fall in value of the listed investments, some of which have now, post the period end, recovered. In addition, while substantial progress has been made at the unlisted investments (comprising VirtualStock, Bosques and Manas), these are held at cost. Administrative costs were in line with the prior period at £89,000 (2012: £83,000). Overall, net loss for the first half of the year was £178,000 (2012: loss of £48,000). Legendary ended the period with £432,000 (2012: £378,000) of investments, £53,000 (2012: £237,000) of cash, £388,000 (2012: £574,000) of net assets and £508,000 (2012: £634,000) of total assets.
The period under review has been one of progress, both landmark and steady, at Legendary's investee companies. And progress continued post the period end. Legendary continues to assist its investee companies and evaluate new potential investments. Legendary is now poised to enter the next phase of its development.
For further information, please contact:
Legendary Investments Plc | Zafar Karim / Thomas Reuner
| 020 8201 3536 |
Grant Thornton UK LLP
| Colin Aaronson/ Melanie Frean / Jen Clarke
| 020 7383 5100 |
Beaufort Securities Limited
| Guy Wheatley | 020 7382 8300 |
SI Capital
| Nick Emerson/ Andrew Thacker
| 01483 413500 |
Newgate Threadneedle | Caroline Evans-Jones | 020 7653 9850 |
About Legendary Investments PLC
Legendary Investments PLC is a proactive investment company that focuses on making investments in and assisting companies which exhibit the potential to generate returns of many multiples through capital appreciation. Typically, Legendary invests in small companies where there are clear catalysts for value appreciation and the companies are operating in sectors exhibiting long term growth. Examples of such sectors include technology, energy and natural resources.
PROFIT AND LOSS ACCOUNT
for the six months ended 30th September 2013
(£'000)
| 6m ended 30/09/13 Unaudited | 6m ended 30/09/12 Unaudited | Year ended 31/03/13 Audited |
Net gain/(loss) on investments | (77) | 35 | 38 |
Net administrative expenses before share option charge and exceptional items | (89) | (83) | (184) |
Share option charge | (12) | 0 | (12) |
Net administrative expenses | (101) | (83) | (196) |
Operating (loss)/profit | (178) | (48) | (158) |
Finance charge | 0 | 0 | 0 |
(Loss)/profit on ordinary activities before tax | (178) | (48) | (158) |
Taxation | 0 | 0 | 0 |
(Loss)/profit on ordinary activities after tax | (178) | (48) | (158) |
(Loss) per share (basic and fully diluted) - pence | (0.01)p | (0.003)p | (0.01)p |
BALANCE SHEET
as at 30th September 2013
(£'000s) | As at30/09/2013Unaudited | As at30/09/2012Unaudited | As at31/03/2013Audited |
Fixed Assets | |||
Tangible assets | 3 | 5 | 4 |
Investments | 236 | 64 | 236 |
Current assets | |||
Current asset investments | 196 | 314 | 273 |
Debtors due within one year | 20 | 14 | 35 |
Cash at bank and in hand | 53 | 237 | 101 |
269 | 565 | 409 | |
Creditors | |||
Creditors: amounts falling due within one year | (90) | (30) | (65) |
Creditors: amounts falling due after one year | (30) | (30) | (30) |
Net assets/(liabilities) | 388 | 574 | 554 |
Capital and reserves | |||
Called up share capital | 1,643 | 1,575 | 1,643 |
Share premium account | 8,316 | 8,309 | 8,316 |
Share based payment reserve | 184 | 156 | 171 |
Profit and loss - deficit | (9,755) | (9,466) | (9,576) |
Equity shareholders' funds/(deficit) | 388 | 574 | 554 |
CASH FLOW STATEMENT
for the six months ended 30th September 2013
(£'000)
| 6m ended30/09/2013Unaudited | 6m ended30/09/2012Unaudited | Year ended31/03/2013Audited |
Net cash outflow from operating activities | (125) | (98) | (140) |
Purchase of office Equipment | 0 | 0 | 0 |
Payments to acquire investments | 0 | (200) | (368) |
Loss on Investments | 77 | 0 | 0 |
Net cash outflow before financing | (48) | (200) | (508) |
Financing | |||
Issue of new ordinary shares | 0 | 0 | 75 |
Increase in debt | 0 | 0 | 0 |
Expenses paid in connection with share issue | 0 | 0 | 0 |
0 | 0 | 75 | |
Decrease in cash in the period / year | (48) | (298) | (433) |
Notes to the Interim Results
1. Accounting Policies
The accounts have been prepared in accordance with applicable accounting standards under the historical cost accounting rules, modified by the revaluation of investments.
2. Basis of Preparation of Half Yearly Financial Information
These unaudited interim financial statements for the six months ended 30 September 2013 have been prepared in accordance with United Kingdom Generally Accepted Accounting Standards. The financial information in this interim announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.
The comparative financial information for the year ended 31 March 2013 does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The statutory accounts of Legendary Investments PLC for the year ended 31 March 2013 have been reported on by the Company's auditor and have been delivered to the Registrar of Companies.
The current and comparative periods to September have been prepared using accounting policies and practices consistent with those adopted in the annual financial statements for the year ended 31 March 2013 and are also consistent with those which will be adopted in the 31 March 2014 financial statements.
The Company is not required to prepare financial statements in accordance with International Accounting Standards as it is not a parent company. The directors are of the opinion that the adoption of International Accounting Standards would have no material impact on the reported results and will therefore continue to apply UK Generally Accepted Accounting Standards, but will reconsider the position should the Company's activities lead to a material difference between the accounting bases.
3. Earnings Per Share
The calculation of earnings per share is based on the profit/ (loss) for the period divided by the weighted average number of ordinary shares in issue during the period of 1,643,349,016 (2012: 1,575,167,198).
4. Half Yearly Report
The half yearly report, including the financial information contained herein, is the responsibility of, and was approved by the directors on 19 December 2013. The continuing obligations of the AIM Rules for Companies require that the accounting policies and presentation applied to the half yearly figures should be consistent with those applied in preparing preceding annual accounts except where any changes, and the reasons for them, are disclosed.
Copies of this report are available on the Company's website, www.leginvest.com