20 Jun 2013 07:00
20 June 2013
Insetco plc
("Insetco" or the "Company")
Final Results and Notice of AGM
Insetco plc, a company specialised in the arranging and structuring of securitised products based on senior life settlement policies, announces its final results for the year ending 31 December 2012.
The following is an extract from the Directors' report from the annual report for the year to 31 December 2012. The full version of the annual report is being sent to all shareholders and is available from the Company's website.
Review of the business
The results for the year to December 2012 produced a loss of £1,777,189 (2011: loss £521,042) and net assets of £151,071 (2011: net assets £970,760).
Revenues in the year amounted to £720,230 (2011: £250,000) which are primarily represented by a non-recurring performance fee associated with the acquisition and subsequent maturity of certain life settlement polices.
During the year, the Company redeemed all its convertible loan notes, which has enabled the Company to operate on a debt free basis and save in excess of £60,000 in annual interest costs.
The board has undertaken an impairment review of the investment in Saolpoll (Jersey) Limited and Insetco Capital Markets Limited. As a result of such review, the board has concluded that the investment requires to be impaired by £1,767,219 with a consequent charge to income statement.
With new directors having joined the board since the year end we intend to utilise their expertise and look forward to the future with confidence.
For further information please visit www.insetco.co.uk or contact:
Insetco plc | |
Julian Seidman | 07958 904 130 |
Mathew Krock | 07712 163 056 |
Cairn Financial Advisers LLP | |
Jo Turner / James Caithie | 020 7148 7900 |
Statement of comprehensive income
Year ended 31 December 2012 £ | Year ended 31 December 2011 £ | ||||
Revenue | 720,230 | 250,000 | |||
Operating costs | (681,371) | (707,353) | |||
Operating profit/(loss) | 38,859 | (457,353) | |||
Impairment of investment | (1,767,219) | - | |||
Finance expense | (48,829) | (63,689) | |||
Loss before tax | (1,777,189) | (521,042) | |||
Income tax expense | - | - | |||
Total comprehensive income for the year | (1,777,189) | (521,042) | |||
Basic loss per share (pence) | (0.97) | (0.33) | |||
Fully diluted loss per share (pence) | - | - | |||
Statement of consolidated financial position
31 December 2012 £ | 31 December 2011 £ | ||||
Assets | |||||
Non-current assets | |||||
Goodwill | 200,000 | 1,967,219 | |||
Property and equipment | 2,577 | 4,206 | |||
202,577 | 1,971,425 | ||||
Current assets | |||||
Other receivables | 28,140 | 44,891 | |||
Cash and cash equivalents | 26,360 | 92,005 | |||
54,500 | 136,896 | ||||
Total assets | 257,077 | 2,108,321 | |||
Equity and liabilities | |||||
Equity | |||||
Ordinary share capital | 2,240 | 1,645 | |||
Deferred share capital | 1,617,633 | 1,617,633 | |||
Share premium | 41,314,946 | 40,358,041 | |||
Capital redemption reserve | 12,758 | 12,758 | |||
Accumulated deficit | (42,796,506) | (41,019,317) | |||
Equity attributable to equity holders | 151,071 | 970,760 | |||
Current liabilities | |||||
Trade and other payables | 106,006 | 172,561 | |||
Convertible loan notes | - | 965,000 | |||
Total liabilities | 106,006 | 1,137,561 | |||
Total equity and liabilities | 257,077 | 2,108,321 |
Consolidated and company statement of changes in equity year ended 31 December 2012
Ordinary share capital | Deferred share capital | Share premium | Capital redemption reserve | Accumulated deficit |
Total | |||||||
£ | £ | £ | £ | £ | £ | |||||||
Balance at 1 January 2011 | 1,153 | 1,617,633 | 38,502,199 | 12,758 | (40,498,275) | (364,532) | ||||||
Total comprehensive income for the year | - | - | - | - | (521,042) | (521,042) | ||||||
Issue of shares in connection with the acquisition of Saolpoll (Jersey) Limited | 492 | - | 1,966,726 | - | - | 1,967,218 | ||||||
Share issue costs in connection with the acquisition of Saolpoll (Jersey) Limited | - | - | (110,884) | - | - | (110,884) | ||||||
Balance at 31 December 2011 | 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 |
Statement of consolidated and company cash flow
Year ended 31 December | |||||
2012 | 2011 | ||||
£ | £ | ||||
Cash flow from operating activities | |||||
Loss before tax from continuing operations | (1,777,189) | (521,042) | |||
Impairment of investment | 1,767,219 | - | |||
Depreciation | 1,629 | 1,629 | |||
Finance expense | 48,829 | 63,689 | |||
Net cash inflow/(outflow) from operating activities before changes in working capital | 40,488 | (455,724) | |||
Decrease in receivables | 16,751 | 6,872 | |||
(Decrease)/increase in payables | (1,555) | 74,529 | |||
Cash flows generated/(absorbed) by operating activities | 55,684 | (374,323) | |||
Cash flows from investing activities | |||||
Acquisition of Insetco Capital Markets Limited | - | (1) | |||
Cash flows from financing activities | |||||
Repayment of convertible loan notes | (72,500) | - | |||
Share issue costs | - | (110,884) | |||
Issues of convertible loan notes | - | 465,000 | |||
Finance expense | (48,829) | (63,689) | |||
Net cash from financing activities | (121,329) | 290,427 | |||
Net decrease in cash and cash equivalents | (65,645) | (83,897) | |||
Cash and cash equivalents at 1 January 2012 | 92,005 | 175,902 | |||
Cash and cash equivalents at 31 December 2012 | 26,360 | 92,005 | |||
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.
The financial information set out in this announcement does not constitute the statutory accounts of the Company for the year to 31 December 2012 but is derived from the 2012 Annual Report and Accounts which have been delivered to the Registrar of Companies.
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 £1,777,189 (2011: loss £521,042) and the weighted average number of shares in issue for the year of 184,007,297 (2011: 156,533,380).
The calculation of the diluted loss per share for the years ended 31 December 2012 and 2011 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 7 March 2013 Clive Cooke resigned as a director of the Company. The Company and Mr. Cooke entered into a termination agreement which provided for compensation for loss of office in the sum of £30,000.
b) On 25 April 2013 Matthew Krock was appointed as a director of the Company.
c) On 3 June 2013 Julian Seidman was appointed as a director of the Company.
d) On 3 June 2013 Joanne Cutmore and Simon Sacerdoti resigned as directors of the Company. The Company and Ms. Cutmore and Mr. Sacerdoti entered into termination agreements which provided for compensation for loss of office in the sum of £16,000 each.
5. Dividend
The Company will not be paying a dividend for the current financial year (2011: £nil).
6. Accounts and notice of AGM
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 17 July 2013 at 10:00 a.m. to be held at Berkeley Square House, Berkeley Square, London W1J 6BD.