Last checked at 14 Jun 2016 07:00
Date: Tuesday, 14 June 2016 | Immediate Release |
AssetCo plc
Providers of management and resources to the fire and emergency services in the Middle East
("AssetCo" or the "Company" or "Group")
Half-year Report
for the six months ended 31 March 2016
Introduction
We are pleased to announce that our results for the first half of the year reflect a continuing improvement in profit and cash generation.
Results
The Consolidated Income Statement for the period ended 31 March 2016 shows an operating profit of £2.1m (2015: £1.8m) on revenue of £11.0m (2015: £10.4m) and a profit before tax of £1.9m (2015: £1.5m). The improvement in profitability has resulted from the increase in the number of fire service personnel being supplied to our Middle East Fire Service contracts.
Cash Generation
The Company generated £2.2m of free cash in the period and at 31 March 2016 we had total cash of £18.5m (£15.6m at 30 September 2015) comprising free cash balances of £15.5m (£12.8m at 30 September 2015) and restricted cash balances held in respect of Bonds amounting to £3.0m (£2.8m at 30 September 2015).
Claim against Grant Thornton
The Company continues to pursue a claim against its former auditors Grant Thornton, in respect of negligent audits for the years ended 30 September 2009 and 2010, for losses, interest and costs totalling approximately £42m.
Outlook
We continue to produce a performance in line with management expectations. We will keep shareholders updated of further progress on trading, future contracts and the claim against Grant Thornton during the course of the year.
Tudor Davies
Chairman
14 June 2016
Editor's Note:
AssetCo is principally involved in the provision of management and resources to the fire and emergency services in the Middle East. For further details, visit the website, www.assetco.com.
Symbol: AiM: ASTO;
Market capitalisation: £39.57m
AssetCo plc Consolidated Income Statement for the six months ended 31 March 2016 |
Six months ended | Year ended | |||
Note | 31 March 2016 | 31 March 2015 | 30 September 2015 | |
£'000 | £'000 | £'000 | ||
Revenue | 11,003 | 10,418 | 21,660 | |
Cost of sales | (7,922) | (7,985) | (15,564) | |
Gross profit | 3,081 | 2,433 | 6,096 | |
Administrative expenses | (968) | (672) | (1,647) | |
Operating profit | 2,113 | 1,761 | 4,449 | |
Finance income | 7 | 10 | 23 | |
Finance costs | (178) | (269) | (459) | |
Profit before taxation | 1,942 | 1,502 | 4,013 | |
Income tax expense | - | - | - | |
Profit for the period | 1,942 | 1,502 | 4,013 | |
Earnings per share (EPS): | 3 | |||
Basic - pence | 15.90 | 12.30 | 32.86 | |
Diluted - pence | 15.90 | 12.30 | 32.86 | |
AssetCo plc Consolidated Statement of Comprehensive Income for the six months ended 31 March 2016
| ||||
Six months ended | Year ended | |||
31 March 2016 | 31 March 2015 | 30 September 2015 | ||
£'000 | £'000 | £'000 | ||
Recognised profit for the period | 1,942 | 1,502 | 4,013 | |
Other comprehensive income: | ||||
Exchange differences on translating foreign operations | 839 | 1,107 | 866 | |
Other comprehensive income net of tax | 839 | 1,107 | 866 | |
Total comprehensive income for the period | 2,781 | 2,609 | 4,879 | |
AssetCo plc Consolidated Statement of Financial Position as at 31 March 2016 | ||||
At 31 March | At 30 September | |||
2016 | 2015 | 2015 | ||
Notes | £'000 | £'000 | £'000 | |
Assets | ||||
Non-current assets | ||||
Property, plant and equipment | - | 2 | - | |
Cash held in respect of bonds | 4 | 2,956 | 2,881 | 2,802 |
Total non-current assets | 2,956 | 2,883 | 2,802 | |
Current assets | ||||
Inventories | 90 | - | - | |
Trade and other receivables | 5 | 7,282 | 6,064 | 6,629 |
Cash and cash equivalents | 4 | 15,494 | 10,503 | 12,836 |
Cash held as security against letters of credit | 4 | - | 55 | - |
Cash held in respect of a bond | 4 | 12 | - | 11 |
Total current assets | 22,878 | 16,622 | 19,476 | |
Total assets | 25,834 | 19,505 | 22,278 | |
Shareholders' equity | ||||
Share capital | 25,474 | 25,474 | 25,474 | |
Share premium | 64,941 | 64,941 | 64,941 | |
Foreign currency translation reserve | 1,729 | 1,131 | 890 | |
Profit and loss account | (69,768) | (74,221) | (71,710) | |
Total equity | 22,376 | 17,325 | 19,595 | |
Liabilities | ||||
Current liabilities | ||||
Trade and other payables | 6 | 3,458 | 2,180 | 2,683 |
Total current liabilities | 3,458 | 2,180 | 2,683 | |
Total liabilities | 3,458 | 2,180 | 2,683 | |
Total equity and liabilities | 25,834 | 19,505 | 22,278 | |
AssetCo plc Consolidated Statement of Changes in Equity for the six months ended 31 March 2016 | |||||
Share Capital | Foreign currency translation reserve | Profit and loss reserve | Share premium | Total equity | |
£'000 | £'000 | £'000 | £'000 | £'000 | |
Balance at 30 September 2014 | 25,474 | 24 | (75,723) | 64,941 | 14,716 |
Profit for the period | - | - | 1,502 | - | 1,502 |
Other comprehensive income: | |||||
Exchange differences on translation | - | 1,107 | - | - | 1,107 |
Total comprehensive income for the period | - | 1,107 | 1,502 | - | 2,609 |
Balance at 31 March 2015 | 25,474 | 1,131 | (74,221) | 64,941 | 17,325 |
Profit for the period | - | - | 2,511 | - | 2,511 |
Other comprehensive income/(expense): | |||||
Exchange differences on translation | - | (241) | - | - | (241) |
Total comprehensive income/(expense) for the period | - | (241) | 2,511 | 2,270 | |
Balance at 30 September 2015 | 25,474 | 890 | (71,710) | 64,941 | 19,595 |
Profit for the period | - | - | 1,942 | - | 1,942 |
Other comprehensive income: Exchange differences on translation |
- |
839 |
- |
- |
839 |
Total comprehensive income for the period | - | 839 | 1,942 | - | 2,781 |
Balance as at 31 March 2016 | 25,474 | 1,729 | (69,768) | 64,941 | 22,376 |
AssetCo plc Consolidated Statement of Cash Flows for the six months ended 31 March 2016 | ||||
Six months ended | Year ended | |||
31 March 2016 | 31 March 2015 | 30 September 2015 | ||
Note | £'000 | £'000 | £'000 | |
Cash flows from operating activities | ||||
Cash generated from operations | 7 | 2,410 | 2,253 | 4,758 |
Cash deposited in respect of performance bond | - | (223) | (223) | |
Cash repaid in respect of performance bond | - | 2,814 | 2,814 | |
Cash deposited in respect of a letter of credit | - | (55) | - | |
Finance costs | (178) | (269) | (459) | |
Net cash generated from operating activities | 2,232 | 4,520 | 6,890 | |
Cash flows from investing activities | ||||
Finance income | 7 | 10 | 23 | |
Net cash generated from investing activities | 7 | 10 | 23 | |
Cash flows from financing activities | ||||
Issue of shares (net of costs) | - | - | - | |
Net cash generated from financing activities | - | - | - | |
Net change in cash and cash equivalents | 2,239 | 4,530 | 6,913 | |
Cash and cash equivalents at the beginning of the period |
12,836 |
5,787 |
5,787 | |
Exchange differences on translation | 419 | 186 | 136 | |
Cash and cash equivalents at the end of the period |
15,494 |
10,503 |
12,836 | |
AssetCo plc Notes to the Financial Statements for the six months ended 31 March 2016 | ||||
1. | Legal status and activities | |||
AssetCo plc (the "Company" or the "Group") is principally involved in the provision of management and resources to the fire and rescue emergency services in international markets. It currently trades through a branch in UAE and its strategy is to develop this business. As at period end, the Company has no trading subsidiaries and therefore the principal activities of the Group are restricted to those of the company detailed above. AssetCo plc is a public limited liability company incorporated and domiciled in England and Wales. The address of its registered office is Singleton Court Business Park, Wonastow Road, Monmouth, Monmouthshire NP25 5JA. The Group operates from one site in UAE. AssetCo plc shares are listed on the Alternative Investment Market ("AIM") of the London Stock Exchange | ||||
2. | Basis of preparation | |||
The financial information in the Half-year Report has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively Adopted IFRSs). The principal accounting policies used in preparing the Half-year Report are those the Group expects to apply in its financial statements for the year ending 30 September 2016 and are unchanged from those disclosed in the Annual Report and Consolidated Financial Statements for the year ended 30 September 2015.
The financial information for the six months ended 31 March 2016 and the six months ended 31 March 2015 is unaudited and does not constitute the Group's statutory financial statements for those periods. The comparative financial information for the full year ended 30 September 2015 has, however, been derived from the audited statutory financial statements for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies.
While the financial figures included in this Half-year Report have been computed in accordance with IFRSs applicable to interim periods, this Half-year Report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS 34.
The financial statements have been presented in sterling to the nearest thousand pounds (£'000) except where otherwise indicated. | ||||
3. | Earnings per share | |||
Basic earnings per share is calculated by dividing the profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the period. | ||||
Six months ended | Year ended | |||
31 March 2016 | 31 March 2015 | 30 September 2015 | ||
£'000 | £'000 | £'000 | ||
Profit for the year | 1,942 | 1,502 | 4,013 | |
Weighted average number of ordinary shares in issue | 12,211,163 | 12,211,163 | 12,211,163 | |
Basic earnings per share (EPS) - pence | 15.90 | 12.30 | 32.86 | |
There are no dilutive potential ordinary shares and, therefore, the calculation of diluted earnings per share is the same as for basic earnings per share. | ||||
4. | Cash and cash equivalents | |||
31 March | 30 September | |||
2016 | 2015 | 2015 | ||
£'000 | £'000 | £'000 | ||
Cash at bank and in hand | 15,494 | 10,503 | 12,836 | |
Cash and cash equivalents | 15,494 | 10,503 | 12,836 | |
UK sterling | 4,839 | 5,972 | 5,399 | |
A E Dirhams | 10,655 | 4,531 | 7,437 | |
15,494 | 10,503 | 12,836 | ||
In addition to the above A E Dirhams amounting to £2,968,000 (31 March 2015: £2,881,000 and 30 September 2015: £2,813,000) were held on deposit as security in respect of outstanding performance bonds - see note 8 Contingent liabilities for further information - and £nil (31 March 2015: £55,000 and 30 September 2015: £nil) were held on deposit as security against letters of credit.
5. | Trade and other receivables | |||
31 March 2016 | 31 March 2015 | 30 September 2015 | ||
£'000 | £'000 | £'000 | ||
Trade receivables | 5,782 | 5,166 | 5,649 | |
Other receivables | 196 | 78 | 103 | |
Prepayments and accrued income | 1,304 | 820 | 877 | |
7,282 | 6,064 | 6,629 | ||
6. | Trade and other payables | |||
31 March 2016 | 31 March 2015 | 30 September 2015 | ||
£'000 | £'000 | £'000 | ||
Trade payables | 312 | 263 | 229 | |
Other payables | 884 | 616 | 719 | |
Other taxation and social security | 3 | 4 | 3 | |
Accruals and deferred income | 2,259 | 1,297 | 1,732 | |
3,458 | 2,180 | 2,683 | ||
7. | Reconciliation of profit before taxation to net cash generated from operations | |||
Six months ended | Year ended | |||
31 March | 30 September | |||
2015 | 2015 | 2015 | ||
£'000 | £'000 | £'000 | ||
Profit for the period before taxation | 1,942 | 1,502 | 4,013 | |
Depreciation and impairment | - | 11 | 12 | |
Finance costs | 178 | 269 | 459 | |
Finance income | (7) | (10) | (23) | |
(Increase)/decrease in inventories | (85) | 365 | 333 | |
(Increase)/decrease in debtors | (283) | 762 | 65 | |
Increase/(decrease) in creditors | 665 | (646) | (101) | |
Cash generated from operations | 2,410 | 2,253 | 4,758 | |
8. | Contingent liabilities | |||
Maximum potential liability | ||||
31 March | 30 September | |||
2016 | 2015 | 2015 | ||
Performance bond of AED14,461,000 related to a UAE based contract, expected to be released in full in 2017, secured by a cash deposit of AED14,461,000 |
2,739 |
2,658 |
2,596 | |
Performance bond of AED11,459,000 related to a UAE based contract, expected to reduce to AED5,730,000 in 2017 and to be released in full in 2020, secured by a cash deposit of AED1,146,000 |
2,170 |
2,106 |
2,057 | |
Performance bond of AED636,000 related to a UAE based contract, expected to be released in full in 2017, secured by a cash deposit of AED64,000 |
120 |
117 |
114 | |
The cash deposits referred to above are the same deposits as those referred to in note 4 Cash and cash equivalents. | ||||
9. | Electronic communications |
The Company is not proposing to bulk print and distribute hard copies of this Half-year Report for the six months ended 31 March 2016 unless specifically requested by individual shareholders; it can be downloaded from the Company's website at www.assetco.com. News updates, regulatory news, & financial statements can be viewed and downloaded from the Group's website, www.assetco.com Copies can also be requested, in writing to, The Company Secretary, AssetCo plc, Singleton Court Business Park, Wonastow Road, Monmouth, Monmouthshire NP25 5JA. |
Enquiries: AssetCo plc Tudor Davies, Chairman Tel: +44 (0) 7785 703523 or +44 (0) 20 7614 5900 |
Arden Partners plc Nominated adviser and broker John Llewellyn-Lloyd/Ciaran Walsh Tel: +44 (0) 20 7614 5900 |
TooleyStreet Communications IR and media relations Fiona Tooley Mobile: +44 (0) 7785 703 523 fiona@tooleystreet.com |