Last checked at 27 Jun 2013 07:00
Providers of management and resources to the fire and emergency services in the Middle East
Date: Thursday, 27 June 2013 | Immediate Release |
AssetCo plc
("AssetCo" or the "Company")
Half-Year results for the six months ended 31 March 2013
Statement by the Chairman, Tudor Davies
Introduction
These results for the six months ended 31 March 2013 reflect continued trading from the Group's outsourced fire and rescue operations in the Middle East.
Results
The Consolidated Income Statement for the period shows an Operating Profit of £0.3m (2012: £1.0m) on Revenue of £8.6m (2012: £18.2m), and a Profit after tax of £0.04m (2012: £5.2m).
The reduction in Revenue reflects the disposal of UK vehicle leasing and maintenance businesses announced in August 2012 and which was reported upon in the Annual Report and Financial Statements for the year ended 30 September 2012.
The Group's operations are focused on providing management and resources to the fire and emergency services in the Middle East. Operating Profit during the first six months have been affected by one-off costs of approximately £0.6m and these relate to the completion of the construction portion of the Company's principal contract in the Middle East.
The Group remains in a comfortable cash positive position with Free Cash of £4.1m, and cash in support of bonds of £4.4m and letters of credit of £0.5m. Further details are set out in Note 8 to these results.
As reported in our last Annual financial statements, the new Board intends pursuing claims against the former auditors of the Group for an amount currently estimated at £50m. As a consequence, during the first half, approximately £0.4m of expenses have been incurred in preparing claims associated with the audit of past financial statements, and such costs are anticipated to continue until this matter is concluded.
Current Trading
Trading in the Middle East continues to be satisfactory and in line with management expectations. Discussions are continuing on renewing the arrangements and in the meantime, the principal contract has been extended to November 2013 to allow the opportunity to finalise a longer term agreement.
We look forward to keeping shareholders updated as appropriate during the year.
Tudor Davies
Chairman
27 June 2013
AssetCo plc Consolidated Income statement for the six month period ended 31 March 2013 | ||||||
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Six months to | Year to 30 September 2012 | |||||
Note | 31 March 2013 | 31 March 2012 | Continuing
| Discontinued
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£'000 | £'000 | £'000 | £'000 | |||
Revenue | 8,567 | 18,166 | 15,923 | 19,802 | ||
Cost of sales | (7,020) | (11,892) | (10,927) | (11,794) | ||
Gross profit | 1,547 | 6,274 | 4,996 | 8,008 | ||
Administrative expenses | (1,233) | (5,238) | (1,618) | (5,284) | ||
Operating profit | 314 | 1,036 | 3,378 | 2,724 | ||
Profit from disposal of businesses | 3 | - | 5,215 | - | 81,788 | |
Finance income | 7 | 10 | 51 | 19 | ||
Finance costs | (283) | (1,621) | (492) | (2,841) | ||
Gain/(loss) on fair value of financial instruments | - | 577 | - | (303) | ||
Profit before taxation | 38 | 5,217 | 2,937 | 81,387 | ||
Income tax credit | - | - | 1,096 | - | ||
Profit for the period | 38 | 5,217 | 4,033 | 81,387 | ||
Discontinued operations | ||||||
Profit for the period from discontinued operations | 81,387 | |||||
Profit for the period | 85,420 | |||||
Earnings per share (EPS) - | ||||||
-Basic-pence | ||||||
Continuing operations | 0.35 | 47.42 | 36.66 | |||
Discontinued operations | 739.83 | |||||
-Diluted - pence | ||||||
Continuing operations | 0.26 | 35.98 | 27.81 | |||
Discontinued operations | 561.26 | |||||
AssetCo plc Consolidated Statement of Comprehensive Income for the six month period ended 31 March 2013 | ||||
Six months to | Year to | |||
31 March 2013 | 31 March 2012 | 30 September 2012 | ||
£'000 | £'000 | £'000 | ||
Recognised profit for the period | 38 | 5,217 | 85,420 | |
Other comprehensive income: | ||||
Exchange differences on translating foreign operations | 233 | (9) | 11 | |
Actuarial losses on defined benefit pensions plan | - | - | (1,288) | |
Other comprehensive income, net of tax | 233 | (9) | (1,277) | |
Total comprehensive income for the period | 271 | 5,208 | 84,143 | |
AssetCo plc Consolidated Statement of Financial Position As at 31 March 2013 | ||||
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| 31 March 2013 | 31 March 2012 | 30 September 2012 | |
| Notes | £'000 | £'000 | £'000 |
ASSETS | ||||
Non-current assets | ||||
Property, plant and equipment | 70 | 21,065 | 74 | |
Cash held in respect of a bond | 2,221 | 4,136 | 2,042 | |
Total non-current assets | 2,291 | 25,201 | 2,116 | |
Current assets | ||||
Inventories | 684 | 278 | 377 | |
Trade and other receivables | 4 | 5,607 | 5,517 | 5,838 |
Cash and cash equivalents (excluding bank overdrafts) | 4,118 | 6,846 | 5,266 | |
Cash held as security against letters of credit | 525 | - | - | |
Cash held in respect of bond | 2,221 | - | 2,042 | |
Total current assets | 13,155 | 12,641 | 13,523 | |
TOTAL ASSETS | 15,446 | 37,842 | 15,639 | |
Shareholders' equity | ||||
Share capital | 25,353 | 25,353 | 25,353 | |
Share premium | 62,645 | 62,645 | 62,645 | |
Reverse acquisition reserve | - | (12,644) | - | |
Foreign currency translation reserve | 351 | 98 | 118 | |
Profit and loss account | (79,197) | (145,506) | (79,235) | |
TOTAL EQUITY | 9,152 | (70,054) | 8,881 | |
LIABILITIES | ||||
Current liabilities | ||||
Trade and other payables | 5/6 | 6,294 | 15,960 | 6,758 |
Short-term provisions | - | 1,389 | - | |
Bank loans and short term borrowings | - | 77,401 | - | |
Derivative financial instruments | - | 6,634 | - | |
TOTAL CURRENT LIABILITIES | 6,294 | 101,384 | 6,758 | |
Non-current liabilities | ||||
Retirement benefit liabilities | - | 1,112 | - | |
Long-term provisions | - | 5,400 | - | |
Total non-current liabilities | - | 6,512 | - | |
Total liabilities | 6,294 | 107,896 | 6,758 | |
TOTAL EQUITY AND LIABILITIES | 15,446 | 37,842 | 15,639 | |
AssetCo plc Consolidated Statement of Changes in Equity for the six month period ended 31 March 2013 | ||||||
Share Capital | Reserve acquisition reserve | Foreign currency translation reserve | Profit and loss reserve | Share premium | Total equity | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Balance at 30 September 2011 | 25,353 | (12,644) | 107 | (150,723) | 62,645 | (75,262) |
Profit for the period | - | - | - | 5,217 | - | 5,217 |
Other comprehensive income: Exchange differences on translation |
- |
- |
(9) |
- |
- |
(9) |
Total comprehensive income for the period | - | - | (9) | 5,217 | - | 5,208 |
Balance at 31 March 2012 | 25,353 | (12,644) | 98 | (145,506) | 62,645 | (70,054) |
Profit for the period | - | - | - | 80,203 | - | 80,203 |
Other comprehensive income: | ||||||
Exchange differences on translation | - | - | 20 | - | - | 20 |
Actuarial losses on defined benefit pensions plan | - | - | - | (1,288) | - | (1,288) |
Reverse acquisition reserve transfer | - | 12,644 | (12,644) | - | - | |
Total comprehensive income for the period | - | 12,644 | 20 | 66,271 | - | 78,935 |
Balance at 30 September 2012 | 25,353 | - | 118 | (79,235) | 62,645 | 8,881 |
Profit for the period | - | - | - | 38 | - | 38 |
Other comprehensive income: Exchange differences on translation |
- |
- |
233 |
- |
- |
233 |
Total comprehensive income for the period | - | - | 233 | 38 | - | 271 |
Balance as at 31 March 2013 | 25,353 | - | 351 | (79,197) | 62,645 | 9,152 |
AssetCo plc Consolidated Statement of Cash Flows for the six month period ended 31 March 2013 | ||||
| Six months to | Year to | ||
| 31 March 2013 | 31 March 2012 | 30 September 2012 | |
| Note | £'000 | £'000 | £'000 |
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Cash flows from operating activities | ||||
Cash (used) generated from operations | 7 | (1,489) | (3,399) | (2,842) |
Interest paid | (283) | (1,621) | (3,316) | |
Income taxes received | 1,104 | - | - | |
Net cash outflows from operating activities | (668) | (5,020) | (6,158) | |
Cash flows from investing activities | ||||
Finance income | 7 | 10 | 70 | |
Purchase of property, plant and equipment | - | (94) | (167) | |
Sale of property, plant and equipment | - | - | 138 | |
Cash deposited in respect of letters of credit | (525) | - | - | |
Net cash generated/(used) in investing activities | (518) | (84) | 41 | |
Cash flows from financing activities | ||||
Issue of shares (net of costs) | - | 8,041 | 8,041 | |
Repayments of amounts borrowed | - | - | (379) | |
Finance lease additions | - | 339 | - | |
Finance lease repayments | - | (847) | (612) | |
Net cash generated in financing activities | - | 7,533 | 7,050 | |
Net change in cash and cash equivalents | (1,186) | 2,429 | 933 | |
Cash, cash equivalents and bank overdrafts at the beginning of the period |
5,266 |
4,377 |
4,377 | |
Exchange differences on translation | 38 | - | - | |
Cash disposed of with businesses | - | (11) | (44) | |
Cash, cash equivalents and bank overdrafts at the end of the period |
4,118 |
6,795 |
5,266 | |
AssetCo plc Notes to the Financial Statements for the six month period 31 March 2013 | |
1. | Legal status and activities AssetCo plc (the "Company") 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-yearly 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 2013 and are unchanged from those disclosed in the Annual Report and Consolidated Financial Statements for the year ended 30 September 2012.
The financial information for the six months ended 31 March 2013 and the six months ended 31 March 2012 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 2012 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-yearly report have been computed in accordance with IFRSs applicable to interim periods, this half-yearly 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. | Profit from disposal of business |
| As first announced in September 2011 the Group has been restructured to concentrate on its business in the UAE.
This restructuring was completed in August 2012 and has seen the Group exit its historic UK vehicle leasing and maintenance contracts which were based on a flawed business and financial structure.
As a result, during the six month period ended 31 March 2012 the Group reported a £5,215,000 Profit from disposal of business and during the year to 30 September 2012 a £81,788,000 Profit from disposal of businesses. Further information can be found in the Group's 2012 Annual Report and Financial Statements. |
4. | Trade and Other Receivables | |||
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| 31 March 2013 | 31 March 2012 | 30 September 2012 | |
| £'000 | £'000 | £'000 | |
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Trade receivables | 3,363 | 2,645 | 2,579 | |
Other receivables | 427 | 398 | 1,786 | |
Prepayments and accrued income | 1,817 | 2,474 | 1,473 | |
5,607 | 5,517 | 5,838 | ||
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5. | Trade and Other Payables | |||
| 31 March 2013 | 31 March 2012 | 30 September 2012 | |
| £'000 | £'000 | £'000 | |
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Trade and other payables | 1,977 | 5,030 | 946 | |
6 | Short-term Liabilities | |||
| 31 March 2013 | 31 March 2012 | 30 September 2012 | |
| £'000 | £'000 | £'000 | |
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Other payables | 2,428 | 2,887 | 1,004 | |
Other taxation and social security | 3 | 451 | 4 | |
Accruals and deferred income | 1,886 | 7,592 | 4,804 | |
| 4,317 | 10,930 | 5,812 | |
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7. | Reconciliation of profit before taxation to net cash (used)/generated from operations | |||
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| 31 March 2013 | 31 March 2012 | 30 September 2012 | |
| £'000 | £'000 | £'000 | |
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Profit for the period | 38 | 5,217 | 84,324 | |
Depreciation and impairment | 7 | 2,945 | 2,943 | |
Amortisation and impairment | - | 66 | 67 | |
(Profit) / Loss on sale of property, plant and equipment | - | - | (138) | |
(Profit) / loss on disposal of businesses | - | (5,215) | (81,788) | |
Interest rate swaps | - | (577) | 303 | |
Other finance expense | - | - | 17 | |
Interest expense | 283 | 1,621 | 3,316 | |
Interest received | (7) | (10) | (70) | |
Other non-cash movements | - | - | 181 | |
(Increase) / decrease in inventories | (283) | 13 | (290) | |
(Increase) in debtors | (576) | (243) | (2,731) | |
(Decrease) in creditors | (951) | (5,619) | (7,913) | |
(Increase) in provisions | - | (1,597) | (724) | |
Contributions to the DB pension scheme in excess of service cost | - | - | (339) | |
Cash (used) from operations | (1,489) | (3,399) | (2,842) | |
8 | Contingent liabilities |
| During the period to 30 September 2011 the Group entered into a Performance Bond relating to a UAE based contract that would determine a potential liability of 10% of the total contract value upon failure to fulfil all the terms of the contract. This liability would equate to a maximum of approximately £4m. The Bond will remain in place in full until 90 days after the customer has confirmed that all contractual terms have been met and it is expected that the confirmation will occur in the first half of the next financial year. At completion of the 90 day period the potential liability under this Bond will reduce to 5% of the contract value and then reduce to 0% upon expiration of associated warranty periods and this is expected to be in approximately April 2016.
The Group has also provided an "Advanced Payment Guarantee" of approximately £8m in connection to a UAE based contract. The guarantee provides for the repayment in part or full of payments received from the customer in advance of contractual service delivery. The guarantee is expected to be released in full in the second half of this financial year.
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9. | Electronic Communications |
| The Company is not proposing to bulk print and distribute hard copies of this Half-year financial report for the six month period ended 31 March 2013 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 |
Arden Partners plc Richard Day/ Jamie Cameron |
TooleyStreet Communications Fiona Tooley |
Tel: +44 (0) 7785 703523 or 020 7614 5900 | Tel:+44 (0) 20 7614 5900 | Mobile: +44 (0) 7785 703 523 |
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. Ticker: AIM: ASTO.L Market cap: £38.78m |