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31 Oct 2011 07:00
INTERIM REPORT 2011
Chairman's Statement
The results for the six months ended 31 August 2011 showed a loss before tax of £41,000 (six months ended 31 August 2010: £45,000 loss; year ended 28 February 2011: £93,000 loss).
No dividend has been declared.
Subsequent to the publication of the last Annual Report Mr M Szytko acquired the shares formerly held by Mr A Perloff bringing his holding to 28.8%. This was announced to the markets on 25 July 2011.
Following the Annual General Meeting, Mr Szytko and myself were invited to join the Board and Mr Drummon and Mr Perloff stood down. The Board would like to thank them both for their contribution and wish them well for the future.
With two new major shareholders we hope to identify a potential target in due course which will be acceptable to all shareholders and which will add shareholder value.
I will report to you as soon as there are positive developments.
D Wheatley
Chairman
31 October 2011
Profit and loss account |
Notes | 6 months ended 31 August 2011 (unaudited) £'000 | 6 months ended 31 August 2010 (unaudited) £'000 | Year ended 28 February 2011 (audited) £'000 |
Management fees |
- |
- |
- | |
Administrative expenses | (41) | (45) | (93) | |
Operating loss | 2 | (41) | (45) | (93) |
Interest receivable | - | - | - | |
Loss on ordinary activities before taxation |
(41) |
(45) |
(93) | |
Tax credit on loss on ordinary activities |
- |
- |
- | |
Loss for the period | (41) | (45) | (93) | |
Basic and diluted loss per share |
3 |
(0.52)p |
(0.57)p |
(1.17)p |
Balance Sheet | Notes | 31 August 2011 (unaudited) £'000 | 31 August 2010 (unaudited) £'000 | 28 February 2011 (audited) £'000 |
Fixed assets | ||||
Investments | - | - | - | |
Current assets | ||||
Debtors | 12 | 12 | 4 | |
Cash at bank and in hand | 191 | 288 | 229 | |
203 | 300 | 233 | ||
Creditors: amounts falling due within one year |
(33) |
(42) |
(22) | |
Net current assets | 170 | 258 | 211 | |
Net assets | 170 | 258 | 211 | |
Capital and reserves | ||||
Share capital | 5 | 159 | 159 | 159 |
Share premium | 295 | 295 | 295 | |
Profit and loss account | (284) | (196) | (243) | |
Total equity shareholders' funds |
170 |
258 |
211 |
Cash Flow Statement | Notes | 6 months ended 31 August 2011 (unaudited) £'000 | 6 months ended 31 August 2010 (unaudited) £'000 | Year ended 28 February 2011 (audited) £'000 | |||
Net cash outflow from operating activities |
6a |
(38) |
(34) |
(93) | |||
Returns on investments and servicing of finance | |||||||
Interest received | - | - | - | ||||
Net cash inflow from returns on investments and servicing of finance |
- |
- |
- | ||||
Taxation | |||||||
Corporation tax | - | - | - | ||||
Equity dividends paid | - | - | - | ||||
Decrease in cash | 6b | (38) | (34) | (93) | |||
Notes to the Interim Report
1. Basis of preparation of the interim report
The condensed set of financial statements for the six months ended 31 August 2011 has been prepared on a basis consistent with the financial statements for the year ended 28 February 2011.
The condensed set of financial statements for the six months ended 31 August 2011 has not been audited or reviewed by the auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.
The comparative financial information for the year ended 28 February 2011 has been extracted from the audited financial statements, on which the auditors issued an unqualified audit report and which have been delivered to the Registrar of Companies.
The financial information contained in the interim statement does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.
There are no acquired or discontinued operations in the relevant financial periods.
There are no recognized gains or losses other than the profit or loss for the relevant financial periods.
Highway Capital plc is a stand-alone company and does not prepare consolidated accounts. It has therefore continued to prepare its accounts in accordance with UK rather than international accounting standards, as permitted under EC Regulation 1606/2002.
2. Operating loss
This is stated after charging: | ||||
6 months ended 31 August 2011 (unaudited) £'000 | 6 months ended 31 August 2010 (unaudited) £'000 | Year ended 28 February 2011 (audited) £'000 | ||
Directors' remuneration | ||||
- salaries and fees | 16 | 16 | 33 | |
Auditors' remuneration | ||||
- audit services | 4 | 4 | 9 | |
- other services | 7 | 7 | 14 | |
3. Loss per share
The loss per ordinary share calculation has been based on the losses attributable to ordinary shareholders of £41,000 (August 2010: £45,000; February 2011: £93,000), divided by 7,945,638 (August 2010 and February 2011: 7,945,638) being the average of the issued share capital during the period.
There is no difference between the basic and diluted loss per share.
4. 2011 interim dividend
No interim dividend has been declared.
5. Share capital
31 August 2011 (unaudited)
| 31 August 2010 (unaudited)
| 28 February 2011 (audited) | ||
| Ordinary shares of 2p each | ||||
| Authorised | ||||
Number of shares | 50,000,000 | 50,000,000 | 50,000,000 | |
Nominal value | £1,000,000 | £1,000,000 | £1,000,000 | |
Allotted, called-up, fully paid | ||||
Number of shares | 7,945,638 | 7,945,638 | 7,945,638 | |
Nominal value | £158,913 | £158,913 | £158,913 | |
6. Cash flow statement
6 months ended 31 August 2011 (unaudited) £'000 | 6 months ended 31 August 2010 (unaudited) £'000 | Year ended 28 February 2011 (audited) £'000 | ||
a) Net cash outflow from operating activities | ||||
Operating loss | (41) | (45) | (93) | |
(Increase)/decrease in debtors | (8) | (9) | 1 | |
Increase/(decrease) in creditors | 11 | 20 | (1) | |
(38) | (34) | (93) | ||
b) Reconciliation of net cash flow to movement in net funds | ||||
Decrease in cash in the period | (38) | (34) | (93) | |
Movement in net funds in the period |
(38) |
(34) |
(93) | |
Opening net funds | 229 | 322 | 322 | |
Closing net funds | 191 | 288 | 229 | |
7. Related party transactions
A H Drummon, who retired as chairman and director on 19 September 2011, is a consultant to Keith, Bayley, Rogers & Co. Limited, the financial adviser and stockbroker to Highway Capital plc. In the six months ended 31 August 2011, Keith, Bayley, Rogers & Co. Limited received retainer fees of £2,500 (August 2010: £5,000; February 2011: £10,000) and website maintenance and setup fees of £500 (August 2010: £1,167; February 2011: £1,667).
8. Responsibility statement
We confirm that to the best of our knowledge:
(a) the condensed set of financial statements has been prepared in accordance with Statement: Half-yearly financial reports issued by the Accounting Standards Board;
(b) the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and their impact on the financial statements and description of principal risks and uncertainties for the remaining six months of the year); and
(c) the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and changes therein).
By order of the Board
D Wheatley E P Levey
Chairman Non-Executive Director
9. Publication
Copies of this statement will be available on the company's website at www.highwaycapital.co.uk.
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