Concha Regulatory News (CHA)

14 December 2016

Concha PLC("Concha" or the "Company")

Final Results for the Year Ended 30 June 2016

Concha (AIM: CHA), the AIM quoted investment company focussed on investing in media, communications and technology companies, announces its audited results for the year ended 30 June 2016.

A copy of the report and accounts for the year ended 30 June 2016 will be posted to shareholders today and are available on the Company's website: www.concha-plc.com .

Enquiries:

Concha PLC

Chris Akers, Executive Chairman chris.akers@srgplc.com

SPARK Advisory Partners Limited (Nominated Advisor)

Sean Wyndham-Quin / Mark Brady Tel: 0203 368 3550

Buchanan (Financial PR)

Richard Oldworth Tel: 0207 466 5000

CHAIRMAN'S STATEMENT

Introduction

It was a disappointment to both the Board and shareholders alike, that following a prolonged and intense period of review and evaluation your Board took the difficult but correct decision to terminate discussions with the target investee company at the end of December 2015. In the immediate period following this conclusion, your Board gave significant consideration as to how it should best fulfil its investment strategy and restore value to its shareholder base. The reported loss of £0.98m for the year (2015: Loss £0.63m) includes a charge in respect of share based payments of £0.27m (2015: £0.08m) together with costs of £0.12m associated with pursuing the discussions with the target investee company to its conclusion which included fees associated with an extensive due diligence exercise and costs associated with the tenure of a new senior executive who was appointed to further supplement the Board's corporate finance resource.

These statements provide an update as to the conclusion of that review, the key investment initiatives your Board has taken during the year under review and how Concha intends to continue to execute on its investment strategy going forward.

Ve Interactive Limited

Following a careful review of the events leading up to December 2015, the Board felt it appropriate to seek to identify more mature investment opportunities, ideally those which had demonstrated a strong track record of sales growth, margin performance, geographic reach and on a trajectory towards a public offering within a two-year window from the time of investment.

In March 2016, your Board formed Concha Investments Limited ("CIL"), a wholly owned subsidiary company established for the specific purpose of evaluating and where appropriate consummating investment opportunities. CIL is registered in Malta, a jurisdiction which although highly regulated will ensure the Group is able to preserve both flexibility whilst at the same time mitigate any value leakage at the time of any subsequent disposal. Also during March 2016, CIL acquired a minority stake in Ve Interactive Limited ("Ve"), a global technology company formed in 2009 which drives website traffic and reduces abandonment at each stage of the customer journey on a web-site. Ve won the annual Sunday Times Hiscox Tech Track 100 in 2015. At the time of the investment, Ve serviced over 10,000 clients worldwide and tracked more than £100m worth of transactions per minute via its comprehensive data-set of proprietary apps and software which improve clients' prospects for customer acquisition, conversion and retention. Having reported a three-year compound annual sales growth of over 300% between 2012 and 2014, an established global reach (c.850 employees in 36 offices and 26 countries worldwide) and aspirations for either a trade sale or IPO, it provided an exciting investment opportunity.

Over the course of the last six months since our investment, we have established an ever-closer dialogue with the executive management team at Ve, providing opinion and where appropriate introductions to global investment banking institutions in preparation for the next phase of Ve's development. At Ve's AGM in October 2016, further steps were taken to embrace the corporate governance requirements expected of a global business and this process has recently culminated in the appointment of Stuart Chambers as Ve's Non-Executive Chairman with effect from 1 January 2017.

Stuart is among the UK's most prominent boardroom figures having held executive roles at companies including Shell, Mars and Pilkington and non-executive roles on 7 plc boards including ARM Holdings plc which designs computer chips for customers such as Apple, where he oversaw its recent sale to Softbank in August 2016 for $32 billion. As a current member of the UK Takeover Panel, this appointment represents a further strengthening of the Ve Board as it embarks upon its new phase of growth and engages with a more strategic investor base.

With a strong board, proven technology and an established core business providing a continued path to growth, your Board believes that Ve is well positioned to execute on its strategic objectives. Clearly, however, as a minority shareholder our influence over Ve is limited.

The Works

Concha continues to hold a 30% interest in The Works, The Complete Design Facility Limited ("Works"), a specialist design media company operating principally in the sports sector. Given the sports centric nature of its client base, Works was impacted by the numerous allegations of corruption within many high profile international sporting federations, organisations which Works has serviced for many years. The ensuing investigations and consequent changes to both personnel and internal procedures at these sporting federations has inevitably extended the sales cycle, particularly the tender process which has become the subject of much greater rigour and as such deferred certain projects which had been targeted for this year.

In addition to this environment of uncertainty, 2016 was also an IOC Summer Olympic year where traditionally international sporting federations suspend the release of new design initiatives until after the Games have concluded. Despite these challenging market conditions, Works has managed to further develop its strategic partnership in the Middle East where local presence has helped to forge new relationships with many government ministries including the Qatari World Cup Committee. As a result, we believe Works is well positioned to exploit not only the opportunities associated with the forthcoming World Cup in Qatar in 2022 but also a number of other showcase sporting events held within the EMEA region.

As the sporting landscape continues to change, we will continue to monitor the activities of Works closely and are confident that its position as a preferred partner will lead to a number of successes in 2017.

Future

With a strong and cohesive Board now in place, I feel we have a wealth of global commercial and corporate experience to not only support the investments which Concha has made to date but in the particular case of Ve, to ensure that at the time the objectives of Ve are realised, preserve the resultant value created for the benefit of shareholders. The Board continue to review and evaluate a number of opportunities and at the appropriate time will consummate further additions to its investment portfolio.

I would like to close by thanking our shareholders and advisers who have contributed to giving the Company such a positive future.

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2016

STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2016

STATEMENT OF CHANGES IN EQUITY

FOR THE YEARS ENDED 30 JUNE 2015 AND 2016

CASH FLOW STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2016

NOTES

The notes to the financial statements are available in the PDF download.