26 Jun 2014 10:51
Insetco plc
("Insetco" or the "Company")
Final results for year ended 31 December 2013
The Company was established in order to participate in the structuring of financial products with a particular focus on the US life settlements securitisationmarkets. The Company's intention is to acquire, as an agent for clients, US life insurance policies covering the life of one or more individuals, subject to specific parameters established with this client base.
Review of the business
The results for the year to 31 December 2013 produced a loss of £542,839 (2012: loss £1,777,189) and net liabilities of £391,768 (2012: net assets £151,071).
It has been recognised that the fair value of the investment in Saolpoll (Jersey) Limited and Insetco Capital Markets Limited should be provided for in full and this has contributed £200,000 to the reported loss.
Disappointingly, the company was unable to build its revenue development and the direction of the Company was adversely affected by unforeseen changes to the board. As a result, the Company sought additional finance during the year which was provided by the issuance of unsecured loans amounting to some £254,000.
With new directors having joined the board during the year and potential indications of refinancing and trading activities, we look forward to restoring the financial position of the Company.
Julian Seidman
Director
For further information please visit www.insetco.co.uk or contact:
Insetco plc | |
Julian Seidman | 07958 904 130 |
Cairn Financial Advisers LLP | |
Jo Turner / Liam Murray | 020 7148 7900 |
Consolidated statement of comprehensive income
Year ended
31 December 2013 £ | 31 December 2012 £ | |||
Revenue | - | 720,230 | ||
Operating costs | (342,839) | (681,371) | ||
Operating (loss)/profit | (342,839) | 38,859 | ||
Impairment of investment | (200,000) | (1,767,219) | ||
Finance expense | - | (48,829) | ||
Loss before tax | (542,839) | (1,777,189) | ||
Income tax expense | - | - | ||
Total comprehensive income for the year | (542,839) | (1,777,189) | ||
Basic loss per share (pence) | (0.24) | (0.97) | ||
Fully diluted loss per share (pence) | - | - | ||
|
Consolidated statement of financial position
31 December 2013 £ | 31 December 2012 £ | |||
Assets | ||||
Non-current assets | ||||
Goodwill | - | 200,000 | ||
Property and equipment | 856 | 2,577 | ||
856 | 202,577 | |||
Current assets | ||||
Other receivables | 14,413 | 28,140 | ||
Cash and cash equivalents | 19,060 | 26,360 | ||
33,473 | 54,500 | |||
Total assets | 34,329 | 257,077 | ||
Equity and liabilities | ||||
Equity | ||||
Ordinary share capital | 2,240 | 2,240 | ||
Deferred share capital | 1,617,633 | 1,617,633 | ||
Share premium | 41,314,946 | 41,314,946 | ||
Capital redemption reserve | 12,758 | 12,758 | ||
Accumulated deficit | (43,339,345) | (42,796,506) | ||
Equity attributable to equity holders | (391,768) | 151,071 | ||
Current liabilities | ||||
Trade and other payables | 172,397 | 106,006 | ||
Other loans | 253,700 | - | ||
Total liabilities | 426,097 | 106,006 | ||
Total equity and liabilities | 34,329 | 257,077 |
Consolidated and company statement of changes in equity year ended 31 December 2013
Ordinary share capital | Deferred share capital | Share premium | Capital redemption reserve | Accumulated deficit |
Total | |||||||
£ | £ | £ | £ | £ | £ | |||||||
Balance at 1 January 2012 | 1,645 | 1,617,633 | 40,358,041 | 12,758 | (41,019,317) | 970,760 | ||||||
Total comprehensive income for the year | - | - | - | - | (1,777,189) | (1,777,189) | ||||||
Adjustment in respect of share issue costs | - | - | 65,000 | - | - | 65,000 | ||||||
Issue of shares in connection with the redemption of convertible loan notes | 595 | - | 891,905 | - | - | 892,500 | ||||||
Balance at 31 December 2012 | 2,240 | 1,617,633 | 41,314,946 | 12,758 | (42,796,506) | 151,071 | ||||||
Total comprehensive income for the year | - | - | - | - | (542,839) | (542,839) | ||||||
Balance at 31 December 2013 | 2,240 | 1,617,633 | 41,314,946 | 12,758 | (43,339,345) | (391,768) |
Consolidated and company statement of cash flows
Year ended | ||||
31 December 2013 | 31 December 2012 | |||
£ | £ | |||
Cash flow from operating activities | ||||
Loss before tax from continuing operations | (542,839) | (1,777,189) | ||
Impairment of investment | 200,000 | 1,767,219 | ||
Depreciation | 1,721 | 1,629 | ||
Finance expense | - | 48,829 | ||
Net cash (outflow)/inflow from operating activities before changes in working capital | (341,118) | 40,488 | ||
Decrease in receivables | 13,727 | 16,751 | ||
Increase/(decrease) in payables | 66,391 | (1,555) | ||
Cash flows (absorbed)/generated by operating activities | (261,000) | 55,684 | ||
Cash flows from financing activities | ||||
Issue of unsecured loans | 253,700 | - | ||
Repayment of convertible loan notes | - | (72,500) | ||
Finance expense | - | (48,829) | ||
Net cash from financing activities | 253,700 | (121,329) | ||
Net decrease in cash and cash equivalents | (7,300) | (65,645) | ||
Cash and cash equivalents at 1 January 2013 | 26,360 | 92,005 | ||
Cash and cash equivalents at 31 December 2013 | 19,060 | 26,360 | ||
Notes to the financial statements
1. Corporate Information
Insetco plc ("the Company") is a public limited company incorporated in England and Wales. The company is quoted on the Alternative Investment Market of the London Stock Exchange. The registered office of the Company is Finsgate, 5 -7 Cranwood Street, London EC1V 9EE. The principal activity during the year was that of developing an infrastructure and exploiting commercial opportunities within the area of financial products with a specific emphasis on the life settlement market.
2. Basis of preparation and accounting policies
The financial statements of Insetco plc have been prepared in accordance with International Financial Reporting Standards ("IFRSs"), International Accounting Standards ("IASs") and International Financial Reporting Interpretations Committee ("IFRIC") interpretations, (collectively IFRS) as adopted for use in the European Union and as issued by the International Accounting Standards Board, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
The financial statements have been prepared under the historical cost convention and presented in GBP which is both the functional and presentational currency of the Company.
3. Loss per share
The calculation of the basic loss per share is based on the loss after tax of £542,839 (2012: loss £1,777,189) and the weighted average number of shares in issue for the year of 223,983,096 (2012: 184,007,297).
The calculation of the diluted loss per share for the years ended 31 December 2013 and 2012 is the same as the basic loss per share, as the loss for these years has an anti-dilutive effect.
4. Events after the reporting period
a) On 22 May 2014, the Company announced that it had held discussions with holders of unsecured loans totaling £253,700 granted in 2013 to vary their terms. Of this sum, it had been agreed that loans amounting to £213,700 would become convertible into new ordinary shares at a price of 0.025p per share. The convertible loans are interest free and may be converted immediately. As a result of the discussions, the Company received a request to convert £20,000 of convertible loans into 80,000,000 shares such shares being issued on 22 May 2014.
b) On 23 May 2014, the Company announced that a further £15,000 of unsecured loans would become convertible into new ordinary shares on the same terms as the conversion on 22 May 2014. As a result a further 60,000,000 shares were issued on 23 May 2014.
c) On 29 May 2014, the Company announced that it had raised £150,000 by of subscription for 150,000,000 new ordinary shares of 0.001p each at a price of 0.1p per share.
d) On 18 June 2014, the Company announced that a further £25,000 of convertible loans would become convertible into new ordinary shares on the same terms as the conversions on 22 and 23 May 2014. As a result a further 100,000,000 shares were issued on 18 June 2014.
5. Dividend
The Company will not be paying a dividend for the current financial year (2013: £nil).
A full version of the annual report is being sent to shareholders and will be available on the Company's website: www.insetco.com and from the Company's registered office at Finsgate, 5-7 Cranwood Street, London, EC1V 9EE.
The Annual General Meeting has been convened for 23 July 2014 at 10:00 a.m. to be held at Finsgate, 5-7 Cranwood Street, London EC1V 9EE