Assetco Regulatory News (ASTO)

Date: Thursday, 24 March 2016

Immediate Release

Enquiries:

AssetCo plc

Tudor Davies, Chairman

Tel: +44 (0) 7785 703523

+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

Fiona Tooley

Email: fiona@tooleystreet.com

Mobile: +44 (0) 7785 703523

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: £39.38m

AssetCo plc

Consolidated Income Statement

for the year to 30 September 2015

Year to 30 September

2015

2014

Continuing

£'000

£'000

Revenue

21,660

14,634

Cost of sales

(15,564)

(10,865)

Gross profit

6,096

3,769

Administrative expenses

(1,647)

(1,169)

Operating profit

4,449

2,600

Finance income

23

9

Finance costs

(459)

(356)

Profit before tax

4,013

2,253

Income tax

-

-

Profit for the year

4,013

2,253

Earnings per share (EPS):

Basic - pence

32.86

18.92

Diluted - pence

32.86

18.46

AssetCo plc

Consolidated Statement of Comprehensive Income

for the year to 30 September 2015

Year to 30 September

2015

2014

£'000

£'000

Recognised profit for the year

4,013

2,253

Other comprehensive income

Exchange differences on translating foreign operations

866

137

Other comprehensive income, net of tax

866

137

Total comprehensive income for the year

4,879

2,390

AssetCo plc

Consolidated Statement of Financial Position

As at 30 September 2015

30 September 2015

30 September 2014

£'000

£'000

Assets

Non-current assets

Property, plant and equipment

-

12

Cash held in respect of a bond

2,802

2,482

Total non-current assets

2,802

2,494

Current assets

Inventories

-

333

Trade and other receivables

6,629

6,220

Cash and cash equivalents

12,836

5,787

Cash held in respect of a bond

11

2,509

Total current assets

19,476

14,849

Total assets

22,278

17,343

Shareholders' equity

Share capital

25,474

25,474

Share premium

64,941

64,941

Foreign currency translation reserve

890

24

Profit and loss account

(71,710)

(75,723)

Total equity

19,595

14,716

Liabilities

Current liabilities

Trade and other payables

2,683

2,627

Total current liabilities

2,683

2,627

Total liabilities

2,683

2,627

Total equity and liabilities

22,278

17,343

AssetCo plc

Consolidated Statement of Changes in Equity

for the year to 30 September 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 year

121

-

-

2,296

2,417

Profit for the year

Other comprehensive income:

Exchange differences on translation

-

-

-

137

2,253

-

-

-

2,253

137

Total comprehensive income for the year

-

137

2,253

-

2,390

Balance at 30 September 2014

25,474

24

(75,723)

64,941

14,716

Profit for the year

Other comprehensive income:

Exchange differences on translation

-

-

-

866

4,013

-

-

-

4,013

866

Total comprehensive income for the year

-

866

4,013

-

4,879

Balance at 30 September 2015

25,474

890

(71,710)

64,941

19,595

AssetCo plc

Consolidated Statement of Cash Flows

for the year to 30 September 2015

Year to 30 September

2015

2014

Note

£'000

£'000

Cash flows from operating activities

Cash generated from/(used in) operations

5

4,758

(380)

Cash deposited in respect of a performance bond

(223)

(30)

Cash released in respect of a performance bond

2,814

-

Interest paid

(459)

(356)

Net cash generated from/(used in) operating activities

6,890

(766)

Cash flows from investing activities

Finance income

23

9

Net cash generated from investing activities

23

9

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

6,913

1,660

Cash, cash equivalents and bank overdrafts at beginning of year

5,787

4,134

Exchange differences on translation

136

(7)

Cash, cash equivalents and bank overdrafts at end of year

6

12,836

5,787

AssetCo plc

Notes to the Financial Statements

for the year to 30 September 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.

This preliminary announcement has been presented in sterling to the nearest thousand pounds (£'000) except where otherwise indicated, as are the Group consolidated financial statements, which were authorised for issue by the Board of Directors on 24 March 2016.

2.

Basis of preparation

The preliminary results for the period to 30 September 2015, which do not form the statutory accounts of the Group, are an abridged statement of the full Annual Report and Financial Statements, which have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union, and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The preliminary results have been prepared on a going concern basis.

The principal accounting policies are included in the Group financial statements and have been applied consistently in both periods presented.

3.

Segmental reporting

The core principle of IFRS 8 'Operating Segments' is to require an entity to disclose information that enables users of the financial statements to evaluate the nature and financial effects of the business activities in which the entity engages and the economic environments in which it operates. Segmental information is therefore presented in respect of the Group's geographical settlement. No secondary segmental information has been provided as, in the view of the Directors, the Group operates in only one segment, being the provision of management and resources to fire and emergency services. The Directors consider the chief operating decision maker is the Board.

The amounts provided to the Board with respect to net assets are measured in a manner consistent with that of the financial statements. The Group is domiciled in the UK and also operates a branch in UAE. Revenue by destination is not materially different from revenue by origin shown above. All revenue relates to services. Unallocated comprises the head office.

Year to 30 September 2014

UAE

£'000

Unallocated

£'000

Continuing operations

£'000

Revenue

Revenue to external customers

14,634

-

14,634

Total revenue

14,634

-

14,634

Segment result

EBITDA

3,224

(602)

2,622

Depreciation

(22)

-

(22)

Operating profit

3,202

(602)

2,600

Finance income

3

6

9

Finance costs

(356)

-

(356)

Profit for the year

2,849

(596)

2,253

Assets and liabilities

Total segment assets

13,483

3,860

17,343

Total segment liabilities

(4,848)

2,221

(2,627)

Total net assets

8,635

6,081

14,716

Other segment information

Total capital expenditure

-

-

-

4.

Earnings per share

a)

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.

Year to 30 September

2015

£'000

2014

£'000

Profit for the year

4,013

2,253

Weighted average number of shares in issue

12,211,163

11,908,551

Basic earnings per share (EPS) - pence

32.86

18.92

b)

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. Dilutive potential ordinary shares comprise warrants. A calculation is made to determine the number of shares that could have been acquired at fair value based on monetary value of the subscription rights attached to outstanding warrants. The warrants were exercisable up until 31 December 2013 at a price of £2.00 each warrant. The number of shares calculated as above is compared with the number of shares that would have been in issue assuming the exercise of the warrants. On 3 January 2014 various shareholders exercised warrants to subscribe for 1,210,450 new ordinary shares at 10p each at a price of £2.00 per share.

Following the issue of the new ordinary shares the company's enlarged issued share capital comprises 12,211,163 shares. As a result, of expiration of the deadline for exercising warrants outstanding being 31 December 2013, there are no further warrant instruments outstanding that may be exercised.

Year to 30 September

2015

£'000

2014

£'000

Profit for the year

4,013

2,253

Weighted average number of shares in issue

12,211,163

12,207,993

Diluted earnings per share (EPS) - pence

32.86

18.46

5.

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

Year to 30 September

2015

2014

£'000

£'000

Profit for the year before tax

4,013

2,253

Depreciation and impairment

12

22

Loss on sale of property, plant and equipment

-

19

Finance costs

459

356

Finance income

(23)

(9)

Decrease/(increase) in inventories

333

(304)

Decrease/(increase) in debtors

65

(1,720)

Decrease in creditors

(101)

(997)

Cash generated from/(used in) from operations

4,758

(380)

At 30 September

6.

Analysis of net cash:

2015

£'000

2014

£'000

Cash at bank and in hand

12,836

5,787

12,836

5,787

There was cash of £12,836,000 as at 30 September 2015 (2014: £5,787,000) and cash held in respect of bonds of £2,813,000 (2014: £4,991,000).

7.

Contingent liabilities

8.

Post balance sheet events

There are no post balance sheet events to report.

9.

Annual General Meeting

The AGM is to be held at 12.30 p.m. on 17 May 2016 at Harwood Capital, 6 Stratton Street, London, W1J 8LD. A Notice convening the Annual General Meeting will be posted to shareholders in due course.

10.

Electronic communications

This Preliminary Announcement is available on the Company's website www.assetco.com . News updates, regulatory news and financial statements can be viewed and downloaded from the Company's website, www.assetco.com . Copies can also be requested, in writing, from The Company Secretary, AssetCo plc, Singleton Court Business Park, Wonastow Road, Monmouth, Monmouthshire NP25 5JA. The Company is not proposing to bulk print and distribute hard copies of the Annual Report and Financial Statements for the year to 30 September 2015 unless specifically requested by individual shareholders; it can be downloaded from the Company's website.