Last checked at 28 Mar 2017 07:00
Providers of management and resources to the fire and emergency services in the Middle East
Tuesday, 28 March 2017 | Immediate Release |
AssetCo plc
("AssetCo" or the "Company")
Preliminary results for the year to 30 September 2016
Statement by the Chairman, Tudor Davies
Introduction
We are pleased to report an improvement in profits and cash generation for the year ended 30 September 2016, principally all of which arises from a Fire Services contract in Abu Dhabi we have held since 2010 and which has been extended until November 2017 when it is due for renewal.
Results
The Income Statement for the year ended 30 September 2016 shows an Operating Profit of £4.9m (2015; £4.4m) on Revenue of £23.3m (2015; £21.7m) and a Profit before and after Taxation of £4.6m (2015; £4.0m). The year on year increase is principally due to the weakness of sterling versus the United Arab Emirates Dirham in which currency our business is conducted.
The cash position remains strong at £18.8m (2015; £15.6m) comprising free cash balances of £15.5m (2015; £12.8m) and restricted cash balances held in respect of bonds amounting to £3.3m (2015; £2.8m).
Claim against Grant Thornton
The litigation against the Company's former auditors, where we have issued formal Court proceedings and amounts to a sum in the region of £40m, continues but is not due to be heard until the summer of 2018.
UAE Contract
As announced on 31 January 2017, we agreed and signed a one year extension to our existing Abu Dhabi Fire Services contract, on similar terms, effective from November 2016 until November 2017 and are awaiting its final signature and return from Abu Dhabi.
Outlook
Trading continues to be in line with management's expectations and we will keep shareholders informed regarding further progress on extending the UAE contract and also any developments from the Grant Thornton claim.
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: £43.35m | ||
AssetCo plc Income Statement for the year to 30 September 2016
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Year to 30 September | ||||
2016 | 2015 | |||
£'000 | £'000 | |||
Revenue | 23,300 | 21,660 | ||
Cost of sales | (16,550) | (15,564) | ||
Gross profit | 6,750 | 6,096 | ||
Administrative expenses | (1,874) | (1,647) | ||
Operating profit | 4,876 | 4,449 | ||
Finance income | 21 | 23 | ||
Finance costs | (294) | (459) | ||
Profit before tax | 4,603 | 4,013 | ||
Income tax | - | - | ||
Profit for the year | 4,603 | 4,013 | ||
Earnings per share (EPS): | ||||
Basic - pence | 37.70 | 32.86 | ||
Diluted - pence | 37.70 | 32.86 | ||
AssetCo plc Statement of Comprehensive Income for the year to 30 September 2016
| ||||
Year to 30 September | ||||
2016 | 2015 | |||
£'000 | £'000 | |||
Recognised profit for the year | 4,603 | 4,013 | ||
Other comprehensive income | ||||
Exchange differences on translating foreign operations | 1,858 | 866 | ||
Other comprehensive income, net of tax | 1,858 | 866 | ||
Total comprehensive income for the year | 6,461 | 4,879 | ||
AssetCo plc Statement of Financial Position As at 30 September 2016
| |||
| |||
| 30 September 2016 | 30 September 2015 | |
| £'000 | £'000 | |
Assets | |||
Non-current assets | |||
Property, plant and equipment | - | - | |
Cash held in respect of a bond | 240 | 2,802 | |
Total non-current assets | 240 | 2,802 | |
Current assets | |||
Inventories | - | - | |
Trade and other receivables | 12,498 | 6,629 | |
Cash and cash equivalents | 15,470 | 12,836 | |
Cash held in respect of a bond | 3,040 | 11 | |
Total current assets | 31,008 | 19,476 | |
Total assets | 31,248 | 22,278 | |
Shareholders' equity | |||
Share capital | 25,474 | 25,474 | |
Share premium | 64,941 | 64,941 | |
Profit and loss account | (64,359) | (70,820) | |
Total equity | 26,056 | 19,595 | |
Liabilities | |||
Current liabilities | |||
Trade and other payables | 5,192 | 2,683 | |
Total current liabilities | 5,192 | 2,683 | |
Total liabilities | 5,192 | 2,683 | |
Total equity and liabilities | 31,248 | 22,278 | |
The financial statements were authorised for issue by the board of directors on 28 March 2017 and were signed on its behalf by Tudor Davies.
AssetCo plc Statement of Changes in Equity for the year to 30 September 2016
| ||||||
Share capital |
Share premium |
Profit and loss reserve |
Total equity | |||
£'000 | £'000 | £'000 | £'000 | |||
Balance at 30 September 2014 | 25,474 | 64,941 | (75,699) | 14,716 | ||
Profit for the year Other comprehensive income: Exchange differences on translation |
-
- |
-
- |
4,013
866 |
4,013
866 | ||
Total comprehensive income for the year | - | - | 4,879 | 4,879 | ||
Balance at 30 September 2015 | 25,474 | 64,941 | (70,820) | 19,595 | ||
Profit for the year Other comprehensive income: Exchange differences on translation |
-
- |
-
- |
4,603
1,858 |
4,603
1,858 | ||
Total comprehensive income for the year | - | - | 6,461 | 6,461 | ||
Balance at 30 September 2016 | 25,474 | 64,941 | (64,359) | 26,056 | ||
AssetCo plc Statement of Cash Flows for the year to 30 September 2016
| |||
Year to 30 September | |||
2016 | 2015 | ||
Note | £'000 | £'000 | |
Cash flows from operating activities | |||
Cash generated from operations | 5 | 2,151 | 4,758 |
Cash deposited in respect of a performance bond | - | (223) | |
Cash released in respect of a performance bond | - | 2,814 | |
Finance costs | (294) | (459) | |
Net cash generated from operating activities | 1,857 | 6,890 | |
Cash flows from investing activities | |||
Finance income | 21 | 23 | |
Net cash generated from investing activities | 21 | 23 | |
Net change in cash and cash equivalents | 1,878 | 6,913 | |
Cash, cash equivalents and bank overdrafts at beginning of year | 12,836 | 5,787 | |
Exchange differences on translation | 756 | 136 | |
Cash, cash equivalents and bank overdrafts at end of year | 6 | 15,470 | 12,836 |
AssetCo plc Notes to the Financial Statements for the year to 30 September 2016
| |
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 subsidiaries.
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.
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 financial statements, which were authorised for issue by the board of directors on 28 March 2017. | |
2. | Basis of preparation |
The preliminary results for the period to 30 September 2016, which do not form the statutory accounts of the Company, 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 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 Company's geographical settlement. No secondary segmental information has been provided as, in the view of the directors, the Company 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 Company is domiciled in the UK and 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.
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Analysis of revenue and results by geographical settlement ……continued | ||||
Year to 30 September 2015
|
UAE £'000 |
Unallocated £'000 | Continuing operations £'000 | |
Revenue | ||||
Revenue to external customers | 21,660 | - | 21,660 | |
Total revenue | 21,660 | - | 21,660 | |
Segment result | ||||
EBITDA | 5,383 | (922) | 4,461 | |
Depreciation | (12) | - | (12) | |
Operating profit | 5,371 | (922) | 4,449 | |
Finance income | 11 | 12 | 23 | |
Finance costs | (459) | - | (459) | |
Profit for the year | 4,923 | (910) | 4,013 | |
Assets and liabilities | ||||
Total segment assets | 13,942 | 8,336 | 22,278 | |
Total segment liabilities | (2,294) | (389) | (2,683) | |
Total net assets | 11,648 | 7,947 | 19,595 | |
Other segment information | ||||
Total capital expenditure | - | - | - | |
4. | 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. | |||
Year to 30 September | |||
2016 £'000 | 2015 £'000 | ||
Profit for the year | 4,603 | 4,013 | |
Weighted average number of shares in issue | 12,211,163 | 12,211,163 | |
Basic and diluted earnings per share (EPS) - pence | 37.70 | 32.86 | |
5. | Reconciliation of profit before tax to cash generated from operations | ||
Year to 30 September | |||
2016 | 2015 | ||
£'000 | £'000 | ||
Profit for the year before tax | 4,603 | 4,013 | |
Depreciation and impairment | - | 12 | |
Finance costs | 294 | 459 | |
Finance income | (21) | (23) | |
Decrease in inventories | - | 333 | |
(Increase)/decrease in debtors | (4,766) | 65 | |
Increase/(decrease) in creditors | 2,041 | (101) | |
Cash generated from operations | 2,151 | 4,758 | |
At 30 September | |||
6. | Analysis of net cash: | 2016 £'000 | 2015 £'000 |
Cash at bank and in hand | 15,470 | 12,836 | |
15,470 | 12,836 | ||
There was cash of £15,470,000 as at 30 September 2016 (2015: £12,836,000) and cash held in respect of bonds of £3,280,000 (2015: £2,813,000). | |||
7. | Contingent liabilities | |||||||||||||||||||||||||||
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8. | Post balance sheet events |
There are no post balance sheet events to report. |
9. | Annual General Meeting |
| The annual general meeting is to be held at 11.30 a.m. on Friday, 5 May 2017 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 2016 unless specifically requested by individual shareholders; it can be downloaded from the Company's website. |