Assetco Regulatory News (ASTO)

Date: Friday, 19 June 2015

Immediate Release

AssetCo plc

Consolidated Income Statement

for the six months ended 31 March 2015

Six months ended

Year ended

31 March

2015

31 March

2014

30 September

2014

£'000

£'000

£'000

Revenue

10,418

7,027

14,634

Cost of sales

(7,985)

(5,101)

(10,865)

Gross profit

2,433

1,926

3,769

Administrative expenses

(672)

(788)

(1,169)

Operating profit

1,761

1,138

2,600

Finance income

10

28

9

Finance costs

(269)

(134)

(356)

Profit before taxation

1,502

1,032

2,253

Income tax expense

-

-

-

Profit for the period

1,502

1,032

2,253

Earnings per share (EPS):

Basic - pence

12.30

8.89

18.92

Diluted - pence

12.30

8.67

18.46

AssetCo plc

Consolidated Statement of Comprehensive Income

for the six months ended 31 March 2015

Six months ended

Year ended

31 March 2015

31 March

2014

30 September

2014

£'000

£'000

£'000

Recognised profit for the period

1,502

1,032

2,253

Other comprehensive income/(expense):

Exchange differences on translating foreign operations

1,107

(232)

137

Other comprehensive income/(expense), net of tax

1,107

(232)

137

Total comprehensive income for the period

2,609

800

2,390

AssetCo plc

Consolidated Statement of Financial Position

As at 31 March 2015

At 31 March

2015

At 31 March

2014

At 30 September

2014

Notes

£'000

£'000

£'000

ASSETS

Non-current assets

Property, plant and equipment

2

21

12

Cash held in respect of Bonds

2,881

2,430

2,482

Total non-current assets

2,883

2,451

2,494

Current assets

Inventories

-

-

333

Trade and other receivables

3

6,064

5,724

6,220

Cash and cash equivalents (excluding bank overdrafts)

10,503

5,058

5,787

Cash held as security against letters of credit

55

-

-

Cash held in respect of Bonds

-

2,430

2,509

Total current assets

16,622

13,212

14,849

TOTAL ASSETS

19,505

15,663

17,343

Shareholders' equity

Share capital

25,474

25,474

25,474

Share premium

64,941

64,941

64,941

Foreign currency translation reserve

1,131

(345)

24

Profit and loss account

(74,221)

(76,944)

(75,723)

TOTAL EQUITY

17,325

13,126

14,716

LIABILITIES

Current liabilities

Trade and other payables

4

2,180

2,537

2,627

Total current liabilities

2,180

2,537

2,627

TOTAL LIABILITIES

2,180

2,537

2,627

TOTAL EQUITY AND LIABILITIES

19,505

15,663

17,343

AssetCo plc

Consolidated Statement of Changes in Equity

for the six months ended 31 March 2015

Share

Capital

Foreign currency translation reserve

Profit

and

loss reserve

Share premium

Total

equity

£'000

£'000

£'000

£'000

£'000

Balance at 30 September 2013

25,353

(113)

(77,976)

62,645

9,909

Transactions with owners:

Issue of shares

121

-

-

2,296

2,417

Transactions with owners for the period

121

-

-

2,296

2,417

Profit for the period

-

-

1,032

-

1,032

Other comprehensive expense:

Exchange differences on translation

-

(232)

-

-

(232)

Total comprehensive (expense) / income for the period

-

(232)

1,032

-

800

Balance at 31 March 2014

25,474

(345)

(76,944)

64,941

13,126

Profit for the period

-

-

1,221

-

1,221

Other comprehensive income:

Exchange differences on translation

-

369

-

-

369

Total comprehensive income for the period

-

369

1,221

-

1,590

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 as at 31 March 2015

25,474

1,131

(74,221)

64,941

17,325

AssetCo plc

Consolidated Statement of Cash Flows

for the six months ended 31 March 2015

Six months ended

Year ended

31 March

2015

31 March

2014

30 September

2014

Note

£'000

£'000

£'000

Cash flows from operating activities

Cash generated / (used) in operations

5

2,253

(1,324)

(380)

Cash deposited in respect of Performance Bonds

(223)

-

(30)

Cash released in respect of Performance Bonds

2,814

-

-

Cash deposited in respect of a letter of credit

(55)

-

-

Interest paid

(269)

(134)

(356)

Net cash generated from / (used in) operating activities

4,520

(1,458)

(766)

Cash flows from investing activities

Finance income

10

28

9

Net cash generated from investing activities

10

28

9

Cash flows from financing activities

Issue of shares (net of costs)

-

2,417

2,417

Net cash generated from financing activities

-

2,417

2,417

Net change in cash and cash equivalents

4,530

987

1,660

Cash, cash equivalents and bank overdrafts at the beginning of the period

5,787

4,134

4,134

Exchange differences on translation

186

(63)

(7)

Cash, cash equivalents and bank overdrafts at the end of the period

10,503

5,058

5,787

AssetCo plc

Notes to the Financial Statements

for the six months ended 31 March 2015

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 (Symbol: ASTO)

2.

Basis of preparation

The financial information in the half-yearly financial 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 2015 and are unchanged from those disclosed in the Annual Report and Consolidated Financial Statements for the year ended 30 September 2014.

The financial information for the six months ended 31 March 2015 and the six months ended 31 March 2014 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 2014 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 financial report have been computed in accordance with IFRSs applicable to interim periods, this half-yearly financial 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.

Trade and other receivables

31 March

2015

31 March

2014

30 September

2014

£'000

£'000

£'000

Trade receivables

5,166

4,959

5,132

Other receivables

78

71

149

Prepayments and accrued income

820

694

939

6,064

5,724

6,220

4.

Trade and other payables

31 March

2015

31 March

2014

30 September

2014

£'000

£'000

£'000

Trade and other payables

263

859

1,108

Other payables

616

992

504

Other taxation and social security

4

7

4

Accruals and deferred income

1,297

679

1,011

2,180

2,537

2,627

5.

Reconciliation of profit before taxation to net cash generated from / (used) in operations

31 March

2015

31 March

2014

30 September

2014

£'000

£'000

£'000

Profit for the period before taxation

1,502

1,032

2,253

Depreciation and impairment

11

12

22

Loss on sale of property, plant and equipment

-

19

19

Interest expense

269

134

356

Interest received

(10)

(28)

(9)

Decrease / (increase) in inventories

365

28

(304)

Decrease / (increase) in debtors

762

(1,332)

(1,720)

Decrease in creditors

(646)

(1,189)

(997)

Cash generated from / (used) in operations

2,253

(1,324)

(380)

6.

Contingent liabilities

During the period ended 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 fulfill all the terms of the contract. This liability initially equated to a maximum of approximately £4m but subsequently increased to a maximum of approximately £5m as a result of a contract extension. During the 2015 financial year the customer confirmed that all contractual terms had been met and consequently in February 2015 the potential liability under this Bond reduced to 5% of the contract value, approximately £2.5m. This will reduce further to 0% upon expiration of associated warranty periods which is expected to occur in approximately July 2017.

During the period ended 30 September 2011 the Group also provided an "Advanced Payment Guarantee" of approximately £8m in connection to a UAE based contract. The guarantee provided for the repayment in part or full of payments received from the customer in advance of contractual service delivery. The guarantee was released in full by 31 October 2014.

During the period ended 30 September 2014 the Group entered into a second Performance Bond, relating to a contract replacing that referred to above, and that would determine a potential liability of approximately £2m upon failure to fulfill all the terms of the contract. It is expected that this will reduce to approximately £1m during the 2017 financial year and then will be released in full during the 2020 financial year.

During the period ended 30 September 2014 the Group also entered into a third Performance Bond, relating to a further 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. The potential liability equates to approximately £0.1m and was released in full in March 2015.

During the period ended 31 March 2015 the Group entered into a further Performance Bond, relating to an additional UAE based contract that would determine a potential liability of approximately £0.1m upon failure to fulfil all the terms of the contract. It is expected this will lapse during the 2017 financial year.  

7.

Electronic communications

The Company is not proposing to bulk print and distribute hard copies of this Half-yearly financial report for the six month period ended 31 March 2015 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

John Llewelyyn-Lloyd

TooleyStreet Communications

Fiona Tooley

Tel: +44 (0) 7785 703523

or +44 (0) 20 7614 5900

Tel:+44 (0) 20 7614 5900

Mobile: +44 (0) 7785 703 523

fiona@tooleystreet.com

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 cap: £35.42m