ALB.L Regulatory News (ALB)

10 Nov 2006 07:00

Albany Capital PLC10 November 2006 Albany Capital Plc ("Albany Capital" or "the Company") PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2006 10 November 2006 Chairman's Statement 2006 has been a year of change for Bionex Investments Plc as the Company bothchanged its name and its business. Before I update you with the current plans, Iwould like to report on the historic performance of Bionex for the twelve monthsto 30 September 2006. Bionex Investments Plc In the year to 30 September 2006 the Company made a loss after taxation of£254,120 and had net assets per share of 2.1 pence at the year-end. The lossarose from the performance of the historic life sciences portfolio and of otherdiverse investments together with the associated administrative costs. YourBoard has reviewed the current portfolio and has made adequate provisions toensure that the carrying value is in line with the lower of cost or the expectedrealisable value. I am pleased to report that following the review of the current portfolio, theCompany had at 30 September 2006 cash in short term deposits of £2.5 million(equivalent to 1.38 pence per share) and investments in quoted and unquotedsecurities amounting to a further £1.35 million. The short term goal is to reduce the number of smaller historic investments heldby liquidating the quoted portfolio and working out the unquoted investments. Albany Capital Plc To reflect the change in direction, Tim James and I joined the Board on 12 June2006 to start the implementation of the new plan. The first phase was to seekand receive shareholder approval for the new investing strategy and at the sametime request further funding so that the new plan could be implemented. Toreflect the Company's new approach, its name was changed to Albany Capital Plc. On 12 October 2006 the Company successfully raised approximately £8.3 million(before expenses) following the placing of 413,750,000 ordinary shares of 1pence each at a price of 2 pence per share. As part of this placing, WestminsterEnterprises Limited became a 25% shareholder in the Company and John McLean, asits representative, joined the Board. The New Investing Strategy The new investing strategy is now in place and is focused on seeking outsuitable pre-IPO investments together with taking minority stakes in small UKcompanies, typically with a valuation of less than £75 million, where theexperience and expertise of your Board can be directed to assisting with thedevelopment of the investee business and the subsequent realisation of value. To support the investing strategy further, your Board will be seeking toincrease the amount of funds available for investment and following thepublication of these accounts we will be issuing a circular to shareholdersadvising them of the actions proposed. Reduction of Share Premium Account In addition, to fully reflect the change of direction and the confidence of yourBoard in the investing strategy we will shortly be issuing a circular toshareholders seeking approval for a reduction in the share premium account inorder that the negative profit and loss account reserves can be eradicated. Thisis the first stage in ultimately putting the Company in a position to pay suchdividends as any future profit generation might allow. I believe that the changes which have been made to your Company during 2006,together with the raising of further funds, will place Albany Capital in astrong position to take advantage of future opportunities. I look forward to welcoming you all to the Company's Annual General Meeting inJanuary 2007, by which time we will be able to update you on our progress. Oliver Vaughan Chairman For further information please contact: Albany Capital PLC Chris Roberts +44 (0) 20 7937 4445W.H. Ireland Limited Peter Jackson +44 (0) 20 7220 1666 Profit and Loss Account for the year ended 30 September 2006 Note 2006 2005 £ £Profit on disposal of investments 123,029 114,888Management expenses (145,453) (133,214)Investment provision (355,959) (216,980)Loss on ordinary activities before interest (353,383) (235,306)Interest receivable and similar income 136,321 128,719Loss on ordinary activities before taxation (217,062) (106,587)Taxation (12,058) (27,471)Loss on ordinary activities after taxation (254,120) (134,058) Loss per ordinary share 1 (0.16)p (0.08)pBasic There were no recognised gains and losses other than the results shown above. None of the Company's activities was acquired or discontinued during the abovetwo financial years. Balance Sheet as at 30 September 2006 2006 2005Fixed assets £ £Investments 25,000 150,000Current assetsInvestments 1,326,773 560,507Debtors 38,208 536,608Cash and short term deposits at bank 2,456,870 2,561,787 3,821,851 3,658,902Creditors: amounts falling due within one year (81,760) (189,691)Net current assets 3,740,091 3,469,211Net assets 3,765,091 3,619,211 Capital and reservesCalled up share capital 1,779,256 1,579,256Share premium account 2,814,889 2,614,889Profit and loss account (829,054) (574,934)Equity shareholders' funds 3,765,091 3,619,211 Cash Flow Statement for the year ended 30 September 2006 2006 2005 £ £Operating loss (378,383) (235,306)Investment provision 365,542 216,980(Increase)/decrease in debtors (18,250) 82,391Decrease in creditors (13,634) (84,424)Profit from the sale of investments (123,029) (114,888)Net cash outflow from operating activities (167,754) (135,247) Returns on investments and servicing of finance Interest received 136,321 128,719 Taxation paid (18,823) (23,471) Capital expenditure and financial investment Purchase of fixed asset investments - (109,889) Cash outflow before management of liquid resources (50,256) (139,888) And financingManagement of liquid resourcesPurchase of current asset investments (2,126,593) (1,164,988)Sale of current asset investments 1,671,932 808,795Decrease in short term deposits - 3,000,000 (454,661) 2,643,807FinancingIssue of shares 400,000 -(Decrease)/increase in cash for the year (104,917) 2,503,919 30 September 30 September 2005 Cash flow 2006 £ £ £Analysis of changes in net fundsCash at bank and in hand 2,561,787 (104,917) 2,456,870Short term deposits - - - 2,561,787 (104,917) 2,456,870 2006 2005 £ £Reconciliation of net cash flow to movement in net funds(Decrease)/increase in cash for the year (104,917) 2,503,919Cash outflow from change in liquid resources (3,000,000) -Movement in net funds in the year (104,917) (496,081)Net funds at 30 September 2005 2,561,787 3,057,868Net funds at 30 September 2006 2,456,870 2,561,787 1. LOSS PER SHARE The calculation of basic loss per ordinary share is based on the loss onordinary activities after tax and on the weighted average number of ordinaryshares in issue during the year. The calculation of diluted loss per ordinaryshare is based on the basic loss profit per ordinary share adjusted to allow forthe issue of shares on the assumed conversion of all dilutive instruments. The loss and weighted average number of shares used in the calculation are setout in the table below: Loss 2006 Loss Loss 2005 Loss Weighted Weighted £ average Per £ average Per number share number share of shares pence of shares pence Basic Loss (254,120) 163,624,264 (0.16)p (134,058) 157,925,634 (0.08)pper ordinaryshare There are no dilutive instruments in existence. 2. STATUS OF FINANCIAL INFORMATION The financial information set out in this announcement does not constitute theCompany's statutory accounts for the year ended 30 September 2006 or 2005. Thefinancial information for the year ended 30 September 2005 is derived from thestatutory accounts for that year, which have been delivered to the Registrar ofCompanies. The auditors reported on those accounts; their report was unqualifiedand did not contain a statement under s237 (2) or (3) of the Companies Act 1985.The statutory accounts for the year ended 30 September 2006 will be finalised onthe basis of the financial information presented by the directors in thispreliminary announcement and will be delivered to the Registrar of Companiesfollowing the company's annual general meeting. This information is provided by RNS The company news service from the London Stock Exchange