Conygar Inv Regulatory News (CIC)

2 Dec 2005 07:00

Conygar Investment Company PLC(The)02 December 2005 2 December 2005 THE CONYGAR INVESTMENT COMPANY PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2005 CHAIRMAN'S STATEMENT Review of Activities Our strategy remains to invest in property assets and companies with propertyassets where we can add significant value using our property management,development and transaction structuring skills. The market continues to becompetitive and value hard to come by, however I am pleased to report anotherperiod of progress. In December 2004, we were pleased to announce our 50:50 joint venture, C MSheffield Limited, which acquired £15.7 million of properties on SheffieldBusiness Park. In August, these were sold to funds managed by Clerical Medicalfor £17.8 million, a profit to the joint venture of £1.43million after costs andwhich represents an excellent return on our £2.1 million equity investment insuch a short period of time. The joint venture will not complete in respect ofa £6.8million property which was exchanged in December conditional uponcompletion of defect rectification works. The works were not completed andtherefore the contract condition not fulfilled. The joint venture continues toactively seek out opportunities. The group also sold its shareholding in James Beattie PLC which was taken overby House of Fraser plc in August. This generated £479,000 of cash and a profitbefore taxation of £115,000. During the year the group recorded a profit before taxation of £527,000 and anundiluted earnings per share of 3.66p. The group continues to minimiseadministrative overhead and undertake the majority of our work without recourseto external advisers. Cash balances at 30 September 2005 amounted to£4.8million. Events Since the Balance Sheet Date On 30 November 2005, the company announced the acquisition of 50% of the sharecapital of Martello Quays Limited. This is a partnership between Conygar, alocal developer and Vinci Project Development Limited and has been appointedpreferred developer to obtain planning permission and develop an area in Walesknown as Pembroke Dock Waterfront. The development will consist of a fullyserviced marina, various retail and leisure outlets and a residentialdevelopment. Conygar has committed to fund the planning application costs whichare not anticipated to exceed £350,000. It is anticipated that the completeddevelopment will have an end value estimated to be in excess of £100 million. IFRS (International Financial Reporting Standards) As an AIM company, Conygar is not required to adopt IFRS until the yearcommencing 1 May 2007. The company is currently considering the likely effectof adopting IFRS and will report in due course. Prospects The board is very positive about the future prospects of the company.Management remains extremely committed to creating value for shareholders and wecontinue to work upon a pipeline of opportunities. As always we will continueto keep shareholders informed of the company's progress. R T E WareChairman CONSOLIDATED PROFIT AND LOSS ACCOUNTFor the year ended 30 September 2005 Period from Year Ended 22 Sep 03 to 30 Sep 05 30 Sep 04 £'000 £'000TURNOVERGroup and share of joint venture's turnover 9,691 -Less share of joint venture's turnover (9,179) - 512 -Cost of Sales (397) - Gross Profit 115 - Administrative Expenses (399) (208) Operating Loss (284) (208)Share of operating profit of joint venture 963 - 679 (208)Income from current asset investments 24 10 Interest receivable and similar incomeGroup 121 161Joint Venture 23 - Interest payable and similar chargesGroup - -Joint Venture (320) - Profit / (Loss) on Ordinary Activities before Taxation 527 (37) Taxation on profit on ordinary activities (171) - Profit/ (Loss) on Ordinary Activities after Taxation 356 (37) Dividends - - Profit / (Loss) for the Financial Period 356 (37) Earnings per shareUndiluted 3.66p (0.42)pDiluted 3.43p (0.40)p All of the activities of the Company are classed as continuing. The Company has no recognised gains or losses other than the results for theperiod as set out above. CONSOLIDATED BALANCE SHEET At 30 September 2005 30 Sep 2005 30 Sep 2004 £'000 £'000FIXED ASSETSTangible fixed assets 4 - 4 -Investment in joint venture Share of gross assets 687 - Share of gross liabilities (223) 464 - - 468 - CURRENT ASSETSDebtors 60 55Investments - 397Cash at bank 4,839 4,452 4,899 4,904 CURRENT LIABILITIESCreditors: amounts falling within one year 135 4,764 28 4,876 Total assets less current liabilities 5,232 4,876 CAPITAL AND RESERVESCalled-up equity share capital 486 486Share premium account 4,427 4,427Profit and loss account 319 (37) SHAREHOLDERS' FUNDS 5,232 4,876 COMPANY BALANCE SHEET At 30 September 2005 30 Sep 2005 30 Sep 2004 £'000 £'000 FIXED ASSETSTangible fixed assets 4 - 4 -CURRENT ASSETSDebtors 60 55Investments - 397Cash at bank 4,839 4,452 4,899 4,904 CURRENT LIABILITIESCreditors: amounts falling within one year 135 4,764 28 4,876 Total assets less current liabilities 4,768 4,876 CAPITAL AND RESERVESCalled-up equity share capital 486 486Share premium account 4,427 4,427Profit and loss account (145) (37) SHAREHOLDERS' FUNDS 4,768 4,876 CONSOLIDATED CASHFLOW STATEMENT For the year ended 30 September 2005 Notes Year ended 30 Period from 22 Sep 05 Sep 03 to 30 Sep 04 £'000 £'000 Net cash inflow / (outflow) from operating activities a 231 (615) Returns on the investments and servicing of financeDividends received 34 -Interest received 127 154 Net cash flow from returns on investments and servicing of finance 161 154 Cash inflow / (outflow) before management of liquid resources and 392 (461)financing Management of liquid resourcesDecrease / (increase) in funds placed on short term deposit 2,308 (4,400) Acquisitions and disposalsInvestment in joint venture (1) -Capital expenditure (4) - FinancingIssue of equity share capital - 486Share premium on issue of equity share capital - 4,427Net cash inflow from financing - 4,913 Increase in cash b 2,695 52 NOTES TO THE CASH FLOW STATEMENT a) RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES Year Ended 30 Period from 22 Sep 05 Sep 03 to 30 Sep 04 £'000 £'000 Operating loss (284) (208)Increase / (Decrease) in debtors 9 (38)Increase / (Decrease) in current asset investments 397 (397)Increase in creditors 109 28 Net cash inflow / (outflow) from operating activities 231 (615) b) RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS 30 Sep 05 30 Sep 04 £'000 £'000 Increase in cash in the period 2,695 52Cash (outflow) / inflow to short term deposits (2,308) 4,400 387 4,452Opening net funds 4,452 - Closing net funds 4,839 4,452 CONSOLIDATED CASHFLOW STATEMENT For the year ended 30 September 2005 c) ANALYSIS OF CHANGES IN NET FUNDS At At 1 Oct 2004 Cashflows 30 Sept 2005 £'000 £'000 £'000Net cash:Cash in hand and at bank 52 2,695 2,747Short term deposits* 4,400 (2,308) 2,092 Net Funds 4,452 387 4,839 * Short term deposits are included within cash at bank in the balance sheet Notes: 1. The financial information above does not constitute statutory accounts within the meaning of Section 240 Companies Act 1985 as amended (the "Act"). Full accounts in respect of the year ended 30 September 2005, on which the auditors reported without qualification and which contained no statement under Section 237(2) or (3) of the Act, will be delivered to the Registrar of Companies in due course. 2. Basic and fully diluted earnings per share have been calculated on the basis of a profit after tax of £356,000 and on the number of shares in issue being the weighted average number of shares in issue during the period of 9,722,001. The weighted average number of shares on a fully diluted basis was 10,389,668 which assumes the exercise of options over 667,667 shares at the start of the period. No adjustment has been made in respect of the exercise of options which were anti-dilutive throughout the period. 3. The directors are not proposing that a dividend payment be made. 4. The Report and Accounts for the year ended 30 September 2005 will be posted to shareholders shortly and copies may be obtained free of charge for at least one month following their posting by writing to The Secretary, The Conygar Investment Company PLC, First Floor, 122 Wigmore Street, London W1U 3RX. 5. The Company's Annual General Meeting will be held at 3.00 p.m. on Wednesday, 1 February 2006 at the offices of the Company, First Floor, 122 Wigmore Street, London W1U 3RX. Enquiries: The Conygar Investment Company PLC Robert Ware 020 7725 0360 The directors of Conygar accept responsibility for the information contained inthis announcement. To the best of the knowledge and belief of the directors ofConygar (who have taken all reasonable care to ensure that such is the case) theinformation contained in this announcement is in accordance with the facts anddoes not omit anything likely to affect the import of such information. 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