29 Jun 2010 16:45
29 June 2010
Insetco plc
(Formerly ASG Media plc)
("Insetco" or the "Company")
Preliminary Results for the Year ended 31 December 2009
Chairman's statement
Financial Results
The accounts for the period to 31 December 2009 show an operating loss of £53,443. There was also an exceptional cost of £9,608,325 relating to provisions against investments in subsidiary companies. The resulting loss per share was 10.18p.
Business Review
The Company had successfully raised funds during the period via equity issues and convertible loan capital. The board had been in discussions with potential investors to secure the funding required to meet the Company's immediate and longer term finance commitments. However, in light of the uncertainty as to the timing and final outcome of the discussions with potential investors, the Company requested a suspension of trading of its securities on AIM on 20 October 2009.
Having carefully considered the financial position and strategic options of the Company, on 2 November 2009 the Board of Insetco plc appointed Antony Batty and Stephen Evans of Antony Batty & Company LLP to act as Joint Administrators of the Company.
The Administrators of Insetco plc confirmed that on 4 November 2009 the Company sold the business and assets of the Group's trading subsidiaries, ASL Media Limited and Freelance Media Limited to RAM Investment Group PLC for £155,000 excluding receivables and on 9 November, the Administrators sold certain of the Company's other assets to RAM Investment Group PLC for a further £20,000.
Post Balance Sheet events
Since the year end the Company has successfully completed a restructuring of the business as set out in the Circular to Shareholders issued on 16 March 2010 and is no longer in Administration,. Trading in the Company's shares on AIM was restored on 12 April 2010. Christian Vaglio-Giors and Jamie Ball have resigned from the Board and Charles Woodworth and Rosalind Hutchinson have been appointed directors of the Company.
The Company is now pursuing the Investing Policy set out in the Circular to focus on the life insurance settlement market, which involves the acquisition life insurance policies covering the life of one or more individuals with an "ascertainable and limited" life expectancy. The Company's principal operations are now based in the United States.
Income statement
for the eighteen months ended 31 December 2009
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| Period ended 31 December | Year ended 30 June |
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| 2009 £ | 2008 £ |
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| REVENUE |
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| Cost of sales | - | - |
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| GROSS PROFIT | - | - |
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| Administrative expenses | (53,443) | (4,816,645) |
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| OPERATING LOSS | (53,443) | (4,816,645) |
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| Loss on realisation of investments and intangible assets | (9,608,325) | - |
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| Other interest receivable | - | - |
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| LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION | (9,661,768) | (4,816,645) |
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| Taxation | - | - |
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| LOSS FOR THE PERIOD | (9,661,768) | (4,816,645) |
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| LOSS PER ORDINARY SHARE | (10.18)p | (13.30)p |
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The income statement has been prepared on the basis that all operations are continuing operations.
Statement of changes in equity
for the eighteen months ended 31 December 2009
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| Share | Share | Other | Retained | Total |
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| Capital £ | Premium £ | Reserve £ | Loss £ | Reserves £ |
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| At 1 July 2008 | 411,861 | 37,317,111 | 364,977 | (32,596,503) | 5,497,446 |
| Movement in shares issued | 1,205,775 | 97,864 | - | - | 1,303,639 |
| Issue costs of placing | - | (2,500) | - | - | (2,500) |
| Loss after tax for the period | - | - | - | (9,661,768) | (9,661,768) |
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| At 31 December 2009 | 1,617,636 | 37,412,475 | 364,977 | (42,258,271) | (2,863,183) |
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| Share | Share | Other | Retained | Total |
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| Capital £ | Premium £ | Reserve £ | Loss £ | Reserves £ |
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| At 1 July 2007 | 257,235 | 36,777,767 | 209,725 | (27,779,858) | 9,464,869 |
| Movement in shares issued | 154,626 | 539,344 | - | - | 693,970 |
| Loss after tax for the period | - | - | - | (4,816,645) | (4,816,645) |
| Share based payments | - | - | 148,287 | - | 148,287 |
| Issue of convertible notes | - | - | 6,965 | - | 6,965 |
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| At 30 June 2008 | 411,861 | 37,317,111 | 364,977 | (32,596,503) | 5,497,446 |
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Share capital is the amount subscribed for shares at nominal value.
Share premium represents the excess of the amount subscribed for share capital over the nominal value of the respective shares.
Retained loss represents the cumulative loss of the company attributable to equity shareholders.
Balance sheet as at 31 December 2009
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| As at 31 December | As at 30 June |
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| 2009 £ | 2008 £ |
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| NON-CURRENT ASSETS |
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| Investments | - | 1,850,123 |
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| - | 1,850,123 |
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| CURRENT ASSETS |
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| Trade and other receivables | 110,000 | 4,060,494 |
| Cash and cash equivalents | - | 670,126 |
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| 110,000 | 4,730,620 |
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| CURRENT LIABILITIES |
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| Trade and other payables | (2,973,183) | (1,083,297) |
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| NET CURRENT ASSETS | (2,863,183) | 3,647,323 |
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| TOTAL ASSETS LESS CURRENT LIABILITIES | (2,863,183) | 5,497,446 |
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| SHAREHOLDERS' EQUITY |
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| Share capital | 1,617,636 | 411,861 |
| Share premium | 37,412,475 | 37,317,111 |
| Capital redemption reserve | 12,758 | 12,758 |
| Share based payment reserve | 345,254 | 345,254 |
| Convertible loan reserve | 6,965 | 6,965 |
| Retained earnings | (42,258,271) | (32,596,503) |
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| TOTAL EQUITY | (2,863,183) | 5,497,446 |
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Cash Flow Statement
for the eighteen months ended 31 December 2009
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| Period ended 31 December | Year ended 30 June |
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| 2009 £ | 2008 £ |
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| Net Cash utilised by operating activities | (1,971,239) | (739,361) |
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| Net cash used in activities | (1,971,239) | (739,361) |
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| Cash Flows from Financing |
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| Net proceeds from issue of shares | 240,000 | 693,970 |
| Loans received | 1,061,113 | 743,621 |
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| Net cash from financing | 1,301,113 | 1,437,591 |
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| Net cash inflow/(outflow) | (670,126) | 698,230 |
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| Cash and cash equivalent at beginning of year | 670,126 | (28,104) |
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| Cash and cash equivalent at end of year | - | 670,126 |
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| Notes to Cash Flow Statement |
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| Loss in year | (53,443) | (4,801,227) |
| (Increase)/decrease in receivables | 3,950,494 | (537,016) |
| Increase/(decrease) in payables | 1,889,886 | (202,345) |
| Write off and Provision for intercompany debtor | (7,758,202) | 4,652,940 |
| Share based payments | - | 148,287 |
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| (1,971,239) | (739,361) |
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Notes to the Financial Statements
for the eighteen months ended 31 December 2009
General information
The Company is a public limited company quoted on the AIM Market of the London Stock Exchange, and resident in England and Wales.
Basis of preparation and accounting policies
| Taxation
Due to the losses in the period, no corporation tax liability has arisen.
Factors affecting current tax charge: The tax assessed on the loss on ordinary activities for the period is different from the standard rate of corporation tax in the UK of 21% (2008-20%). | ||
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| Period ended 31 December 2009 | Year ended 30 June 2008 |
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| £ | £ |
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| Loss on ordinary activities before taxation | (9,661,768) | (4,816,645) |
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| Loss on ordinary activities by rate of tax | (2,028,971) | (963,329) |
| Other tax adjustments | 2,028,971 | 963,329 |
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| Total current tax | - | - |
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Loss Per Share
Loss per ordinary share has been calculated using the weighted average number of shares in issue during the relevant financial periods. The calculations of both basic and diluted earnings per share for the period are based upon a loss after tax of £9,661,768 (2008: loss of £4,816,645).
The weighted number of equity shares used in the basic calculation is 94,943,932 (2008: 36,198,907).
Report availability
Copies of the financial statements for the year ended 31 December 2009 are available on the Company's website www.insetco.com.