Last checked at 31 Oct 2008 15:00
HIGHWAY CAPITAL PLC
INTERIM REPORT 2008
Chairman's Statement
The results for the six months ended 31 August 2008 showed a loss before tax of £30,000 (six months ended 31 August 2007: £26,000 loss; year ended 29 February 2008: £54,000 loss).
No dividend has been declared.
During the period under review, your directors have continued to search for an acquisition or other solution which would add shareholder value, regrettably without success. We will continue our efforts in this direction. Until such time as we are able to put suitable proposals to shareholders, we will continue to minimise expenditure.
A H Drummon
Chairman
31 October 2008
| Profit and loss account | Notes | 6 months ended 31 August 2008 (unaudited) £'000 | 6 months ended 31 August 2007 (unaudited) £'000 | Year ended 29 February 2008 (audited) £'000 |
| Management fees | - | - | - | |
| Administrative expenses | (40) | (38) | (78) | |
| Operating loss | 2 | (40) | (38) | (78) |
| Interest receivable | 10 | 12 | 24 | |
| Loss on ordinary activities before taxation | (30) | (26) | (54) | |
| Tax credit on loss on ordinary activities | - | - | - | |
| Loss for the period | (30) | (26) | (54) | |
| Basic and diluted loss per share | 3 | (0.38)p | (0.33)p | (0.67)p |
| Balance Sheet | Notes | 31 August 2008 (unaudited) £'000 | 31 August 2007 (unaudited) £'000 | 29 February 2008 (audited) £'000 |
| Fixed assets | ||||
| Investments | - | - | - | |
| Current assets | ||||
| Debtors | 11 | 12 | 4 | |
| Cash at bank and in hand | 453 | 508 | 480 | |
| 464 | 520 | 484 | ||
| Creditors: amounts falling due within one year | (38) | (36) | (28) | |
| Net current assets | 426 | 484 | 456 | |
| Net assets | 426 | 484 | 456 | |
| Capital and reserves | ||||
| Share capital | 5 | 159 | 159 | 159 |
| Share premium | 295 | 295 | 295 | |
| Profit and loss account | (28) | 30 | 2 | |
| Total equity shareholders' funds | 426 | 484 | 456 |
| Cash Flow Statement | Notes | 6 months ended 31 August 2008 (unaudited) £'000 | 6 months ended 31 August 2007 (unaudited) £'000 | Year ended 29 February 2008 (audited) £'000 | |||
| Net cash outflow from operating activities | 6a | (37) | (32) | (72) | |||
| Returns on investments and servicing of finance | |||||||
| Interest received | 10 | 12 | 24 | ||||
| Net cash inflow from returns on investments and servicing of finance | 10 | 12 | 24 | ||||
| Taxation | |||||||
| Corporation tax | - | - | - | ||||
| Equity dividends paid | - | - | - | ||||
| Decrease in cash | 6b | (27) | (20) | (48) | |||
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 2008 has been prepared on a basis consistent with the financial statements for the year ended 29 February 2008.
The condensed set of financial statements for the six months ended 31 August 2008 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 29 February 2008 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 240 of the Companies Act 1985.
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 2008 (unaudited) £'000 | 6 months ended 31 August 2007 (unaudited) £'000 | Year ended 29 February 2008 (audited) £'000 | |
| Directors' remuneration | |||
| - salaries and fees | 14 | 14 | 28 |
| Auditors' remuneration | |||
| - audit services | 6 | 6 | 13 |
| - other services | 4 | 4 | 8 |
3. Loss per share
The loss per ordinary share calculation has been based on the losses attributable to ordinary shareholders of £30,000 (August 2007: £26,000; February 2008: £54,000), divided by 7,945,638 (August 2007 and February 2008: 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. 2008 interim dividend
No interim dividend has been declared.
5. Share capital
| 31 August 2008 (unaudited) | 31 August 2007 (unaudited) | 29 February 2008 (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 2008 (unaudited) £'000 | 6 months ended 31 August 2007 (unaudited) £'000 | Year ended 29 February 2008 (audited) £'000 | |
| (a) Net cash outflow from operating activities | |||
| Operating loss | (40) | (38) | (78) |
| (Increase)/decrease in debtors | (7) | (7) | 1 |
| Increase/(decrease) in creditors | 10 | 13 | 5 |
| (37) | (32) | (72) | |
| (b) Reconciliation of net cash flow to movement in net funds/(debt) | |||
| Decrease in cash in the period | (27) | (20) | (48) |
| Movement in net funds/(debt) in the period | (27) | (20) | (48) |
| Opening net funds/(debt) | 480 | 528 | 528 |
| Closing net funds/(debt) | 453 | 508 | 480 |
7. Related party transactions
A H Drummon, Chairman, is a consultant to and, until 11 June 2008 was a director of, Keith, Bayley, Rogers & Co. Limited, the financial adviser and stockbroker to Highway Capital plc. In the six months ended 31 August 2008, Keith, Bayley, Rogers & Co. Limited received retainer fees of £5,000 (August 2007: £5,000; February 2008: £10,000).
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
A H Drummon E P Levey
Chairman Non-Executive Director
9. Publication
Copies of this statement will be circulated to all shareholders and will also be available from the registered office of Highway Capital plc at 73 Wimpole Street, London W1G 8AZ.