Last checked at 22 Dec 2010 07:01
For immediate release 22 December 2010
Adalta Real plc ("Adalta Real" or "the Company")
UNAUDITED INTERIM REPORT AND FINANCIAL STATEMENTS
for the Six Months Period ended 30 September 2010
Chairman's Statement
for the six month period ended 30 September 2010
I am pleased to present the Unaudited Interim Financial Statements of your Company for the six months period ended 30 September 2010 ("the Period").
These Interim Statements are presented on an unconsolidated basis, ie. as a single entity, the form which the Company will apply to the financial statements for the year to 31 March 2011.
Financials
In the six months ended 30 September 2010, total revenue amounted to £218,515 and comprehensive income was £15,640, a profit which is welcome compared with a loss of £111,993 in the equivalent period of 2009, ie. prior to the sale of the Company's then operating subsidiary, thereby representing a positive improvement of £127,633. This level of profit in such a short time demonstrates that the Company's Agency and Consultancy businesses have become well established during the Period. The Company has also been able to explore a number of commercial property development opportunities.
The balance of shareholders' funds at 30 September 2010 was £580,119, which represents a similar result to that at 31 March 2010. The Board believes that the maintenance of a healthy Balance Sheet is fundamental to the sustainability of the Company in the turbulent times of the after effects of a such a severe recession in the UK.
Activities
Since the approval by Shareholders of the Company's New Investing Policy in July 2009, the Company has been focussing on its Agency and Consultancy businesses. In the Period a number of commercial property agency and consultancy instructions have been received and an encouraging number of development opportunities identified, some of which will hopefully come to fruition in the foreseeable future.
The Company also has the benefit of a formal Agency and Consultancy Contract with the major national retail company with which it has been working throughout 2010 and in consequence has generated a satisfactory level of income from its specific instructions as well as ongoing agency and consultancy activities in the Period. In addition, the Company has earned revenue from local commercial property clients and also has a reasonable number of similar local instructions in the pipeline.
The Company has also benefited from the sterling efforts of its dedicated team, thereby enabling the Company to continue the intensity of its activities, which in this Period has produced the noteworthy financial results referred to above.
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Remainder of the Year and Future Prospects
Since the end of the Period, the Board has continued to concentrate its efforts on the expansion of the commercial property agency and consultancy instructions, which are increasing and will continue to produce a revenue stream of fees without requiring any external funding.
Furthermore, the Company is now processing a number of development opportunities which are at different stages and which will be progressed as rapidly as circumstances will allow.
Overall, I am delighted with the performance of the Company in general, and its operational team in particular, over the Period and up to date. This is especially the case against a background of the consequences of the severe UK recession and a hazardous UK business environment.
It would be remiss of me not to mention the suspension of the Company's shares to trading on AIM. AIM has concluded that the Company had not sufficiently implemented its New Investing Policy in accordance with Rule 15. Consequently the Company's shares were suspended on 9 August 2010.
The Company believed that it had implemented its New Investing Policy as set out in the Circular to Shareholders dated 14 July 2009 and approved by the Shareholders at the General Meeting held on 30 July 2009. However, AIM has confirmed that to restore the Company's shares to trading on AIM the Company would need to expend almost all of its financial resources by investing it in property or in the completion of a reverse takeover before 9 February 2011. The Company does not consider such transactions to be a suitable use of its resources or to be in the best interests of the Company or its Shareholders.
Accordingly, in order to preserve working capital cash within the Company and, in the interests of all shareholders, to maintain a valid market upon which the Company's ordinary shares can be freely traded, the Board has decided to apply for the ordinary share capital of the Company to be admitted to the PLUS-quoted market operated by PLUS Markets Group Plc and to cancel the admission of such share capital to trading on AIM. A further announcement will be made in due course.
Kevin M Gilmore FRICS
Executive Chairman
22nd December 2010
Contact: Adalta Real Plc Tel: 01295 670123
Kevin Gilmore Mob: 07785 396666
Beaumont Cornish Limited Tel: 020 7628 3396
Roland Cornish
Rivington Street Corporate Finance Ltd Tel: 020 7652 3389
Eran Zucker
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Statement of Comprehensive Income
for the six months ended 30 September 2010
Unaudited 6 months to 30 September 2010 £'000 |
|
Unaudited 6 months to 30 September 2009 £'000 |
Audited 12 months to 31 March 2010 £'000 | ||
REVENUE | 218.5 | - | 11.0 | ||
Cost of sales | (70.6) | - | (7.2) | ||
GROSS PROFIT | 147.9 | - | 3.8 | ||
Administrative expenses | (133.3) | (102.3) | (303.6) | ||
PROFIT/(LOSS) FROM OPERATIONS BEFORE ONE-OFF ITEMS |
14.6 |
(102.3) |
(299.8) | ||
Loss on disposal of investments | - | (10.6) | (15.1) | ||
PROFIT/(LOSS) FROM OPERATIONS |
14.6 |
|
(112.9) |
(314.9) | |
Finance income | 1.0 | 0.9 | 0.9 | ||
PROFIT/(LOSS) BEFORE TAXATION |
15.6 |
(112.0) |
(314.0) | ||
Taxation | - | - | - | ||
PROFIT/(LOSS) AFTER TAXATION |
15.6 |
(112.0) |
(314.0) | ||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO SHAREHOLDERS |
15.6 |
(112.0) |
(314.0) | ||
BASIC EARNINGS PER SHARE (Note 4) |
0.08p |
(0.54p) |
(1.52p) | ||
DILUTED EARNINGS PER SHARE (Note 4) |
0.08p |
(0.54p) |
(1.52p) |
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Statement of Financial Position
as at 30 September 2010
Unaudited 30 September 2010 £'000 |
|
Unaudited 30 September 2009 £'000 |
Audited 31 March 2010 £'000 | |||
ASSETS | ||||||
NON CURRENT ASSETS | ||||||
Property, plant and equipment | 23.9 | 19.2 | 24.2 | |||
23.9 | 19.2 | 24.2 | ||||
CURRENT ASSETS | ||||||
Inventories | 9.2 | - | 3.0 | |||
Trade and other receivables | 291.3 | 156.9 | 65.7 | |||
Cash and cash equivalents | 313.0 | 744.2 | 544.4 | |||
TOTAL CURRENT ASSETS | 613.5 | 901.1 | 613.1 | |||
TOTAL ASSETS |
637.4 |
920.3 |
637.3 | |||
EQUITY AND LIABILITIES | ||||||
CURRENT LIABILITIES | ||||||
Trade and other payables | 57.3 | 181.0 | 72.8 | |||
TOTAL CURRENT LIABILITIES | 57.3 | 181.0 | 72.8 | |||
SHAREHOLDERS' EQUITY | ||||||
Called up share capital | 1,030.7 | 1,030.7 | 1,030.7 | |||
Share premium account | 1,558.1 | 1,558.1 | 1,558.1 | |||
Retained earnings | (2,008.7) | (1,849.5) | (2,024.3) | |||
TOTAL SHAREHOLDERS' EQUITY | 580.1 | 739.3 | 564.5 | |||
TOTAL EQUITY AND LIABILITIES |
637.4 |
920.3 |
637.3 | |||
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Statement of Changes in Equity
for the six months ended 30 September 2010
Share capital £'000 | Share premium £'000 | Retained earnings £'000 |
Total £'000 | |
At 1 April 2009 | 1,030.7 | 1,558.1 | (1,737.5) | 851.3 |
Total comprehensive income | - | - | (112.0) | (112.0) |
At 30 September 2009 | 1,030.7 | 1,558.1 | (1,849.5) | 739.3 |
Total comprehensive income | - | - | (202.0) | (202.0) |
Reserve movement arising from share based payments |
- |
- |
27.2 |
27.2 |
At 31 March 2010 | 1,030.7 | 1,558.1 | (2,024.3) | 564.5 |
Total comprehensive income | - | - | 15.6 | 15.6 |
At 30 September 2010 | 1,030.7 | 1,558.1 | (2,008.7) | 580.1 |
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Statement of Cash Flow
for the six months ended 30 September 2010
Unaudited 6 months to 30 September 2010 £'000 |
Unaudited 6 months to 30 September 2009 £'000 |
Audited 12 months to 31 March 2010 £'000 | |||
Cash flows from operating activities | |||||
Profit/(loss) from operations | 14.6 | (112.9) | (314.9) | ||
Adjustments for depreciation | 2.0 | 0.1 | 1.6 | ||
Loss on disposal of subsidiary | - | 10.6 | 15.1 | ||
Adjustments for share based payment expense | - | - | 27.2 | ||
Cash flows from operations before changes in working capital |
16.6 |
(102.2) |
(271.0) | ||
Changes in working capital | |||||
Increase in inventories | (6.2) | - | (3.0) | ||
Increase in trade and other receivables | (225.6) | (102.3) | (11.1) | ||
(Decrease)/increase in trade and other payables |
(15.5) |
167.7 |
59.5 | ||
Total changes in working capital |
(247.3) |
65.4 |
45.4 | ||
Cash absorbed by total operating activities |
(230.7) |
(36.8) |
(225.6) | ||
Cash flows from investing activities | |||||
Interest received | 1.0 | 0.9 | 0.9 | ||
Proceeds from disposal of subsidiary undertaking |
- |
1,044.5 |
1,044.5 | ||
Less expenditure in connection with disposal of subsidiary undertaking |
- |
(255.1) |
(259.5) | ||
Net expenditure on non-property related non-current assets |
(1.7) |
(19.3) |
(25.9) | ||
Net cash generated from investing activities |
(0.7) |
771.0 |
760.0 | ||
Net (decrease)/increase in cash and cash equivalents |
(231.4) |
734.2 |
534.4 | ||
Cash and cash equivalents at beginning of period |
544.4 |
10.0 |
10.0 | ||
Cash and cash equivalents at end of period |
313.0 |
744.2 |
544.4 | ||
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Notes to the Unaudited Interim Financial Statements
for the six months ended 30 September 2010
1 GENERAL INFORMATION
Adalta Real Plc is a public limited company ('Adalta Real' or the 'Company') incorporated in the United Kingdom under the UK Companies Acts (Registration number 04075473), whose shares are listed on the Alternative Investment Market ('AIM'). The Company's registered office address is Church Court, Stourbridge Road, Halesowen, West Midlands, B63 3TT, United Kingdom.
The Company's principal activities during the period were commercial property agency, commercial property consultancy, followed by the acquisition and development of, and/or investment in commercial property and potential corporate acquisitions, the latter mainly in the property sector.
2 BASIS OF ACCOUNTING
The financial information has been prepared on the historical cost basis. The accounting policies set out below have been applied consistently to all periods presented in this six month report.
3 BASIS OF PREPARATION
These condensed Interim Statements are for the six months ended 30 September 2010. The Company has not adopted the reporting requirements of International Accounting Standard (IAS) 34 'Interim Financial Reporting'. The Interim Statements do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements of the Company for the year ended 31 March 2010.
The Interim Statements have been prepared applying the accounting policies and presentation that were applied in the preparation of the 2010 financial statements.
These Interim Statements for the six months ended 30 September 2010 has neither been audited nor reviewed by the Company's auditors. The financial information for the year ended 31 March 2010 set out in these Interim Statements does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The statutory accounts for the year ended 31 March 2010 have been reported on by the company's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 498(2) or 498(5) of the Companies Act 2006.
4 EARNINGS PER SHARE
The calculation of basic earnings per share is profit of £15,640 (2009: loss £111,993) divided by 20,613,292 shares (2009: 20,613,292 shares), being the weighted average number of ordinary shares in issue during the period.
Diluted earnings per share is calculated using the weighted average number of shares
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adjusted to assume conversion of all ordinary share options at 30 September 2010 that had an exercise price below the estimated average fair price for the six months ended 30 September 2010.
Since the exercise price of the 1,956,000 (2009: 1,330,000) share options is above the estimated average fair price for the period, the diluted earnings per share is equivalent to the basic earnings per share.
5 APPROVAL OF THE INTERIM HALF YEAR REPORT
These Interim Statements for the six month period to 30 September 2010 were approved by the Board of Directors on 22 December 2010.
6 WEBSITE
These Interim Statements are being posted to shareholders and will be available on the website: www.adaltareal.com
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