CBX.L Regulatory News (CBX)

26 Jun 2006 07:01

Cubus Lux plc26 June 2006 26 June 2006 Cubus Lux plc Preliminary Results Cubus Lux plc, the Croatian leisure and tourism company, announces final resultsfor the 12 months ended 31 December 2005. Cubus Lux plc currently operates three casinos in Croatia, where it is thesecond largest casino operator. In March 2006, Cubus Lux acquired Plava Vala,which owns a licence to build and operate a marina under the brand name OliveIsland Marina, on the island of Uglijan, Croatia. Highlights in the period: • Management restructuring with the appointment of Gerhard Huber as Executive Chairman and Michael Janssen as non-executive director • Opening of third casino in Narcis Hotel in Rabac • Development of casino junkets business Since the year end: • Reverse takeover - acquisition of Plava Vala which owns a licence to build and operate a marina under the brand name Olive Island Marina • Placing raised £1,025,000 for working capital and to fund future strategy • Phase 1 of Olive Island marina construction almost complete - semi operational with first berths already occupied • Extensive marketing programme for existing casinos bearing fruit with improvement in junkets business in recent months Gerhard Huber, Executive Chairman of Cubus Lux, commented: "Cubus Lux has seen much change over the year transforming from a pure casinobusiness into a leisure and tourism company. The acquisition of Plava Vala hascreated a three pillar strategy of casinos, marinas and other leisureopportunities such as hotels and golf courses and this sets us on our way toachieving our goal of becoming the pre-eminent tourist and leisure business inCroatia. "We are pleased to announce that the recent marketing initiatives implemented inthe casino junkets business are now coming to fruition and we are starting tosee very encouraging signs in this area. We are also delighted to receive ourfirst customers to the Olive Island Marina which has almost completed its phase1 of construction." For further information please contact: Cubus Lux PlcGerhard Huber, Chairman: 07900 683 683 Corporate SynergyOliver Cairns/ Romil Patel, Corporate Finance: 020 7448 4400 Threadneedle CommunicationsGraham Herring/Alex White, Financial PR: 020 7936 9605/07793 839 024 Chairman's statement I am pleased to submit results for the twelve months ended 31 December 2005. Operations In the second half of 2005, we took over full control of the wholly ownedsubsidiary Cubus Lux doo from the previous management. The local management waschanged entirely, the operation streamlined and a marketing functionestablished. We brought in a new manager for the casino in Rabac and a new veryexperienced overall casino operations manager. We also developed a new IT systemwhich gives a much clearer and timely picture of our daily results. We arebeginning to see the impact of this by mid-2006. We were also starting the acquisition of Plava Vala doo to establish the secondpillar of three-pillar strategy for the new Cubus Lux PLC. This transaction wascompleted in early 2006. Financial For the 12 months ending 31st December 2005, the company is reporting revenuesof £571,000 and net loss of £497,000. Our results are below expectations, due toan increase in our administrative expenses as a result of operating as a publiccompany, which was not matched by an increase in revenues due to a below budgetjunket business. We have implemented corrective action and we are seeing alreadyimprovements in results in 2006. The acquisition of Plava Vala doo gave us the opportunity to raise more than£1,000,000 in equity for working capital for the current operations. Our plans for the future We want to reposition the company from a casino operator into the number onetourist company in Croatia. We want to establish operations which arecomplementary to gaming. These may include marinas and hotels especially golfhotels. The acquisition of Plava Vala, our first marina operation is wellunderway and was finalized in early 2006. We are also in negotiations to take over a development project in order tocomplete the repositioning of the company. If you have any questions please feel free to contact me. GERHARD HUBERChairmanExecutive Director CONSOLIDATED PROFIT AND LOSS ACCOUNT 2005 2004 £'000 £'000 TURNOVER 571 484 Cost of sales (70) (58) ------------- -------------GROSS PROFIT 501 426 Administrative expenses (981) (886) ------------- ------------- OPERATING LOSS (480) (460) Interest payable and similar charges (18) (7)Interest receivable and other income 1 14 ------------- -------------LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (497) (453) Tax on loss on ordinary - - ------------- ------------- RETAINED LOSS (497) (453) ============= ============= LOSS PER SHAREBasic and diluted (2.15p) (2.41p) ============= ============= All activities arose from continuing activities. CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 2005 2004 £'000 £'000 Loss for the financial year (497) (453) Exchange rate movements (20) (8) ------------- ------------- Total recognised losses relating to the year (517) (461) ============= ============= CONSOLIDATED BALANCE SHEET 2005 2004 £'000 £'000 FIXED ASSETS Tangible assets 590 594 ------------ ------------ CURRENT ASSETS Stock 10 6Debtors 301 54Cash at bank 431 385 ------------ ------------ 742 445 CREDITORS: amounts falling due within one year (740) (361) ------------ ------------NET CURRENT ASSETS 2 84 ------------ ------------ TOTAL ASSETS LESS CURRENT LIABILITIES 592 678CREDITORS: amounts falling due in more than one year (325) (140) ------------ ------------ 267 538 ============ ============ CAPITAL AND RESERVES Called up share capital 249 223Share premium account 1,321 1,101Merger reserve 347 347Profit and loss account (1,650) (1,133) ------------ ------------EQUITY SHAREHOLDERS' FUNDS 267 538 ============ ============ PARENT COMPANY BALANCE SHEET 2005 2004 £'000 £'000 FIXED ASSETS Investments 319 319 CURRENT ASSETS Debtors 703 743Cash at bank 15 5 ------------ ------------ 718 748 CREDITORS: amounts falling due within one year (83) (76) ------------ ------------NET CURRENT ASSETS 635 672 ------------ ------------ TOTAL ASSETS LESS CURRENT LIABILITIES 954 991 ============ ============ CAPITAL AND RESERVES Called up share capital 249 223Share premium account 1,321 1,101Profit and loss account (616) (333) ------------ ---------- EQUITY SHAREHOLDERS' FUNDS 954 991 ============ ============ CONSOLIDATED CASH FLOW STATEMENT 2005 2004 £'000 £'000 Operating loss (480) (460)(Profit)/loss on disposal of fixed assets (4) 21Depreciation 113 61Increase in debtors (247) (51)Increase in stock (4) (3)Increase in creditors 111 92 -------------- --------------CASH OUTFLOW FROM OPERATING ACTIVITIES (511) (340) RETURN ON INVESTMENT AND SERVICING OF FINANCEInterest payable (18) (7)Interest receivable 1 14 CAPITAL EXPENDITURE AND FINANCIAL INVESTMENTPurchase of fixed assets (120) (426)Proceeds from the sale of fixed assets 15 - -------------- --------------CASH OUTFLOW BEFORE FINANCING (633) (759) FINANCING Issue of shares in Cubus Lux Plc (net of issue costs) 246 1,004New loans undertaken less repayments 453 60 --------------- -------------INCREASE IN CASH IN THE YEAR 66 305 =============== ============= RECONCILIATION OF NET CASH FLOW TO NET FUNDS/(DEBT) 2005 2004 £'000 £'000 Increase in cash in the period 66 305Exchange differences (20) (8)Cash inflow from movement in debt (448) (60)New finance leases undertaken in year - (24)Loans converted to shares in Cubus Lux d.o.o. - 310 ------------- -------------Movement in net funds in the period (402) 523 Net funds/(debt) at beginning of period 232 (291) ------------- -------------Net (debt)/funds at end of period (170) 232 ============= ============= ANALYSIS OF CHANGES IN NET DEBT At 31 At 1 January Cash Exchange December 2005 flows differences 2005 £'000 £'000 £'000 £'000 Cash at bank and in hand 385 66 (20) 431 ------------ ------------ ------------ ------------ 385 66 (20) 431Debt due in less than one yearFinance leases (5) - - (5)Loans (8) (263) - (271) ------------ ------------ ------------ ------------ 372 (197) (20) 155Debt due in more than one yearFinance leases (19) 5 - (14)Loans (121) (190) - (311) ------------ ------------ ------------ ------------ 232 (382) (20) (170) ============ ============ ============ ============ RECONCILIATION OF MOVEMENTS IN GROUP SHAREHOLDERS' FUNDS 2005 2004 £'000 £'000 Loss for the year (497) (453) --------------- --------------- (497) (453) Exchange rate differences (20) (8)New shares issued in Cubus Lux Plc (net of issue costs) 246 1,004New shares issued in Cubus Lux d.o.o. (net of issue costs) - 310 --------------- ---------------Net movement in shareholders'funds (271) 853 Opening shareholders' funds/(deficit) 538 (315) --------------- ---------------Closing shareholders' funds 267 538 =============== =============== NOTES TO THE FINANCIAL STATEMENTS 1. TAXATION (a) Analysis of charge in the year Corporation tax - - ================== ================== (b) Factors affecting tax charge for the year The tax assessed for the year is different than the standard rate of corporation tax. The differences are explained below: Loss on ordinary activities before taxation (497) (453) ================== ================== Multiplied by the standard rate of (149) (136) corporation tax of 30% Effects of: Disallowable expenditure - 28 Losses carried forward 149 108 ------------------ ------------------ Current year tax charge - - ================== ==================(c) Factors affecting future tax charges The directors believe that the future tax charges will be reduced by the use of tax losses carried forward in Croatia. 2. LOSS FOR THE FINANCIAL YEAR The parent company has taken advantage of section 230 of the Companies Act 1985and has not included its own profit and loss account in these financialstatements. The group loss for the period includes a loss after taxation of£283,000 which is dealt with in the financial statements of the company. 3. TANGIBLE FIXED ASSETS Leasehold Plant and Group premises machinery Total £'000 £'000 £'000 Cost or valuation At 1 January 2005 45 706 751 Additions 6 114 120 Disposals - (19) (19) --------------- ------------ ---------------- At 31 December 2005 51 801 852 --------------- ------------ --------------- Depreciation At 1 January 2005 3 154 157 Charge for the year 13 100 113 Eliminated on disposal - (8) (8) -------------- ------------ -------------- At 31 December 2005 16 246 262 -------------- ------------ -------------- Net Book Value At 31 December 2005 35 555 590 ============== ============ ============== At 31 December 2004 42 552 594 ============== ============ ============== At 31 December 2005, included within other fixed assets are assets held under finance leases with a net book value of £16,480 (2004: £23,539). £6,261 depreciation (2004: £nil) has been charged on this asset in the year. 4. CASH AT BANK AND IN HAND Included within the cash at bank and in hand at 31 December 2005, is £220,000 (2004: £110,000) which is held by the Croatian Ministry of Finance as a bond to cover any large casinos wins. Cubus Lux d.o.o. is required to keep this bond in place in order to maintain its gaming licence. Cubus Lux d.o.o. is also required by law to maintain cash on site of €50,000 and HRK 150,000 at each casino. 6. LOSS PER SHARE The loss per share of 2.15p (2004: 2.41p) has been calculated on the weighted average number of shares in issue during the year namely 23,120,334 (2004: 18,772,476) and losses of £496,852 (2004: £453,452). FRS 14 does not require the calculation of diluted earnings per share, where the figure would be similar to basic earnings per share. 7. DIVIDEND STATEMENT The Directors do not recommend the payment of a dividend 8. FINANCIAL INFORMATION The annual report will be sent to shareholders in due course. Copies of this announcement and the full statutory accounts are available, free of charge, from the Company's nominated adviser, Corporate Synergy Plc at 30 Old Broad Street, London, EC2N 1HT The Company's AGM will take place at Vantis Plc, 66 Wigmore Street, London W1U 2SB on Tuesday, 8th August at 11.30am. This information is provided by RNS The company news service from the London Stock Exchange