Last checked at 30 Jun 2014 07:00
Providers of management and resources to the fire and emergency services in the Middle East
Date: Monday, 30 June 2014 | Immediate Release |
AssetCo plc
("AssetCo" or the "Company")
Half-Yearly Financial Report
six months to 31 March 2014
Statement by the Chairman, Tudor Davies
Results
We are pleased to announce interim results that show a considerable improvement in operating profit from £0.3 million in 2013 to £1.1 million by March 2014. Revenue in the period was lower at £7.0 million compared to £8.6 million in 2013 reflecting a combination of the absence of a loss making equipment supply contract included in the corresponding period last year, and lower costs in connection with our claim against the former auditors.
As detailed in the 2013 Annual Report published on 28 March 2014 the Company has agreed the final form and specification for the continuation of the ongoing contract for the supply of Fire Services in Abu Dhabi. From our part, we have now completed and signed this contract and expect that the contract will be completed by the Abu Dhabi Government shortly and at that time, we will update shareholders accordingly.
Since the year end in September 2013, we have made progress in connection with the claim against the former auditors of the Group and a claim has been submitted in accordance with the Professional Negligence Pre-action Protocol, under which, the other side have an opportunity to respond. The claim is being made by AssetCo Plc for an amount of £50.8 million in respect of negligent audits of the AssetCo Group for the years ended 31 March 2010 and 31 March 2011.
The Company also received the gross amount of £2,420,900.00 on the exercise in December 2013 of 1,210,450 warrants. These warrants were issued at the time of the refinancing of the Company under a warrant instrument dated 9 September 2011.
Outlook
We continue to trade in line with management expectations and will keep shareholders updated on our progress during the year.
Tudor Davies
Chairman
30 June 2014
AssetCo plc Consolidated Income statement for the six month period to 31 March 2014
| ||||
Six months to | Year to | |||
31 March 2014 | 31 March 2013 | 30 September 2013 | ||
£'000 | £'000 | £'000 | ||
Revenue | 7,027 | 8,567 | 17,647 | |
Cost of sales | (5,101) | (7,020) | (13,714) | |
Gross profit | 1,926 | 1,547 | 3,933 | |
Administrative expenses | (788) | (1,233) | (2,195) | |
Operating profit | 1,138 | 314 | 1,738 | |
Finance income | 28 | 7 | 47 | |
Finance costs | (134) | (283) | (526) | |
Profit before taxation | 1,032 | 38 | 1,259 | |
Income tax expense | - | - | - | |
Profit for the period | 1,032 | 38 | 1,259 | |
Earnings per share (EPS): | Restated | |||
Basic - pence | 8.89 | 0.35 | 11.44 | |
Diluted - pence | 8.67 | 0.31 | 10.13 | |
Diluted pence per share has been restated in the prior year to reflect the impact of share warrants within the weighted average number of shares in issue. | ||||
AssetCo plc Consolidated Statement of Comprehensive Income for the six month period to 31 March 2014
| ||||
Six months to | Year to | |||
31 March 2014 | 31 March 2013 | 30 September 2013 | ||
£'000 | £'000 | £'000 | ||
Recognised profit for the period | 1,032 | 38 | 1,259 | |
Other comprehensive income: | ||||
Exchange differences on translating foreign operations | (232) | 233 | (231) | |
Other comprehensive income, net of tax | (232) | 233 | (231) | |
Total comprehensive income for the period | 800 | 271 | 1,028 | |
AssetCo plc Consolidated Statement of Financial Position As at 31 March 2014 | ||||
|
| |||
| 31 March 2014 | 31 March 2013 | 30 September 2013 | |
| Notes | £'000 | £'000 | £'000 |
ASSETS | ||||
Non-current assets | ||||
Property, plant and equipment | 21 | 70 | 54 | |
Cash held in respect of a bond | 2,430 | 2,221 | 2,489 | |
Total non-current assets | 2,451 | 2,291 | 2,543 | |
Current assets | ||||
Inventories | - | 684 | 29 | |
Trade and other receivables | 3 | 5,724 | 5,607 | 4,515 |
Cash and cash equivalents (excluding bank overdrafts) | 5,058 | 4,118 | 4,134 | |
Cash held as security against letters of credit | - | 525 | - | |
Cash held in respect of bond | 2,430 | 2,221 | 2,489 | |
Total current assets | 13,212 | 13,155 | 11,167 | |
TOTAL ASSETS | 15,663 | 15,446 | 13,710 | |
Shareholders' equity | ||||
Share capital | 25,474 | 25,353 | 25,353 | |
Share premium | 64,941 | 62,645 | 62,645 | |
Foreign currency translation reserve | (345) | 351 | (113) | |
Profit and loss account | (76,944) | (79,197) | (77,976) | |
TOTAL EQUITY | 13,126 | 9,152 | 9,909 | |
LIABILITIES | ||||
Current liabilities | ||||
Trade and other payables | 4 | 2,537 | 6,294 | 3,801 |
TOTAL CURRENT LIABILITIES | 2,537 | 6,294 | 3,801 | |
Total liabilities | 2,537 | 6,294 | 3,801 | |
TOTAL EQUITY AND LIABILITIES | 15,663 | 15,446 | 13,710 | |
AssetCo plc Consolidated Statement of Changes in Equity for the six month period to 31 March 2014 | |||||
Share Capital | Foreign currency translation reserve | Profit and loss reserve | Share premium | Total equity | |
£'000 | £'000 | £'000 | £'000 | £'000 | |
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 at 31 March 2013 | 25,353 | 351 | (79,197) | 62,645 | 9,152 |
Profit for the period | - | - | 1,221 | - | 1,221 |
Other comprehensive income: | |||||
Exchange differences on translation | - | (464) | - | - | (464) |
Total comprehensive income for the period | - | (464) | 1,221 | - | 757 |
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 income: Exchange differences on translation |
- |
(232) |
- |
- |
(232) |
Total comprehensive income for the period | - | (232) | 1,032 | - | 800 |
Balance as at 31 March 2014 | 25,474 | (345) | (76,944) | 64,941 | 13,126 |
AssetCo plc Consolidated Statement of Cash Flows for the six month period to 31 March 2014 | ||||
| Six months to | Year to | ||
| 31 March 2014 | 31 March 2013 | 30 September 2013 | |
| Note | £'000 | £'000 | £'000 |
| ||||
Cash flows from operating activities | ||||
Cash used in operations | 5 | (1,324) | (1,489) | (849) |
Cash deposited in respect of a performance bond | - | - | (894) | |
Interest paid | (134) | (283) | (526) | |
Income taxes received | - | 1,104 | 1,096 | |
Net cash outflows from operating activities | (1,458) | (668) | (1,173) | |
Cash flows from investing activities | ||||
Finance income | 28 | 7 | 47 | |
Purchase of property, plant and equipment | - | - | (6) | |
Cash deposited in respect of letters of credit | - | (525) | - | |
Net cash generated/(used) in investing activities | 28 | (518) | 41 | |
Cash flows from financing activities | ||||
Issue of shares (net of costs) | 2,417 | - | - | |
Net cash generated from financing activities | 2,417 | - | - | |
Net change in cash and cash equivalents | 987 | (1,186) | (1,132) | |
Cash, cash equivalents and bank overdrafts at the beginning of the period |
4,134 |
5,266 |
5,266 | |
Exchange differences on translation | (63) | 38 | - | |
Cash, cash equivalents and bank overdrafts at the end of the period |
5,058 |
4,118 |
4,134 | |
AssetCo plc Notes to the Financial Statements for the six month period to 31 March 2014 | |
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 2014 and are unchanged from those disclosed in the Annual Report and Consolidated Financial Statements for the year [ended or to]30 September 2013.
The financial information for the six months to 31 March 2014 and the six months to 31 March 2013 is unaudited and does not constitute the Group's statutory financial statements for those periods. The comparative financial information for the full year [ended or to] 30 September 2013 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.
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3. | Trade and Other Receivables |
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| 31 March 2014 | 31 March 2013 | 30 September 2013 |
| |
| £'000 | £'000 | £'000 |
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|
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Trade receivables | 4,959 | 3,363 | 3,676 |
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Other receivables | 71 | 427 | 67 |
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Prepayments and accrued income | 694 | 1,817 | 772 |
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5,724 | 5,607 | 4,515 |
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4. | Trade and Other Payables | |||
| 31 March 2014 | 31 March 2013 | 30 September 2013 | |
| £'000 | £'000 | £'000 | |
| ||||
Trade and other payables | 859 | 1,977 | 908 | |
| Other payables | 992 | 2,428 | 2,213 |
Other taxation and social security | 7 | 3 | 4 | |
Accruals and deferred income | 679 | 1,886 | 676 | |
| 2,537 | 6,294 | 3,801 | |
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5. | Reconciliation of profit before taxation to net cash used in operations | ||||
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| |||
| 31 March 2014 | 31 March 2013 | 30 September 2013 | ||
| £'000 | £'000 | £'000 | ||
| |||||
Profit for the period | 1,032 | 38 | 1,259 | ||
Depreciation and impairment | 12 | 7 | 26 | ||
Loss on sale of property, plant and equipment | 19 | - | - | ||
Interest expense | 134 | 283 | 526 | ||
Interest received | (28) | (7) | (47) | ||
Decrease / (increase) in inventories | 28 | (283) | 348 | ||
(Increase) / decrease in debtors | (1,332) | (576) | 227 | ||
Decrease in creditors | (1,189) | (951) | (3,188) | ||
Cash used in operations | (1,324) | (1,489) | (849) | ||
6. | 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 but has subsequently been increased to a maximum of approximately £5m as a result of a contract extension. 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 second half of this 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 2017.
The Group has also provided an "Advanced Payment Guarantee" 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 was originally for approximately £8m but has been released down to a maximum liability of approximately £1million. The guarantee is expected to be released in full in the second half of this financial year ending September 2014. |
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 to 31 March 2014 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/ James Felix |
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. Ticker: AIM: ASTO.L. Market-cap £32.6m |