13 Aug 2012 09:26
13 August 2012
Insetco plc
Half yearly results for the six month period ended 30 June 2012
Insetco plc ("Insetco" or the "Company"), a company specialising in the arranging and structuring of securitised products based on senior life settlement policies, is pleased to announce its report for the six month period ended 30 June 2012.
Key highlights
·; Results for the six months ended 30 June 2012 disclose a profit of £359,927 and net assets of £1,330,687.
·; In February 2012, the Company received a non-recurring performance fee of US$1.03m (£647,000) in relation to the structuring of certain life policies that were funded by a client in July 2010. The fee was received following the maturity of these policies.
·; As notified previously, Sanjeev Joshi was removed as a director at the general meeting held in May 2012 and, subsequently, Jo Cutmore and Simon Sacerdoti were appointed as non-executive directors.
·; In February 2012, the Company redeemed £72,500 of Convertible Loan Notes ("CLNs"). In August 2012, the Company agreed with certain CLN holders to convert £238,750 of CLNs at a price of 1.5p per share increasing the number of shares in issue by 15,916,667. The effect of these transactions will be to reduce interest expense by some £25,000 per annum.
Chief executive's statement
Through the strengthening of the Board, we have significantly improved the Company's relevant experience and expertise which will greatly assist the Board in continuing to build its life settlements and structuring business.
Enquiries:
Insetco plc
Clive Cooke (CEO) 020 7887 7840
Cairn Financial Advisers LLP
Nominated Adviser
Jo Turner/James Caithie 020 7148 7900
Statement of comprehensive income
Note | 6 months ended 30 June 2012 | 6 months ended 30 June 2011 | Year ended 31 December 2011 | |||||
unaudited | unaudited | audited | ||||||
£ | £ | £ | ||||||
Revenues | 720,230 | - | 250,000 | |||||
Operating expenses | 324,076 | 346,925 | 707,353 | |||||
Operating profit/(loss) | 396,244 | (346,925) | (457,353) | |||||
Finance expense | (36,317) | (29,561) | (63,689) | |||||
Profit/(loss) before tax | 359,927 | (376,486) | (521,042) | |||||
Income tax expense | - | - | - | |||||
Total comprehensive income | 359,927 | (376,486) | (521,042) | |||||
Basic profit/(loss) per share (pence) | 5 | 0.22p | (0.25)p | (0.33)p | ||||
Fully diluted profit per share (pence) | 5 | 0.17p | - | - |
Statement of financial position
| 30 June 2012 | 30 June 2011 | 31 December 2011 | |||
unaudited | unaudited | audited | ||||
£ | £ | £ | ||||
Assets | ||||||
Non-current assets | ||||||
Property and equipment | 3,392 | 5,020 | 4,206 | |||
Goodwill | 1,967,219 | 1,967,219 | 1,967,219 | |||
1,970,611 | 1,972,239 | 1,971,425 | ||||
Current assets | ||||||
Other receivables | 60,704 | 34,636 | 44,891 | |||
Cash and cash equivalents | 311,446 | 72,002 | 92,005 | |||
372,150 | 106,638 | 136,896 | ||||
Total assets | 2,342,761 | 2,078,877 | 2,108,321 | |||
Equity and liabilities | ||||||
Equity | ||||||
Ordinary share capital | 1,645 | 1,645 | 1,645 | |||
Deferred share capital | 1,617,633 | 1,617,633 | 1,617,633 | |||
Share premium | 40,358,041 | 40,358,041 | 40,358,041 | |||
Other reserves | 12,758 | 12,758 | 12,758 | |||
Accumulated deficit | (40,659,390) | (40,874,761) | (41,019,317) | |||
Equity attributable to equity holders | 1,330,687 | 1,115,316 | 970,760 | |||
Liabilities | ||||||
Current liabilities | ||||||
Trade and other payables | 119,574 | 173,561 | 172,561 | |||
Convertible loan notes | 892,500 | 290,000 | 965,000 | |||
1,012,074 | 463,561 | 1,137,561 | ||||
Non-current liabilities | ||||||
Convertible loan notes | - | 500,000 | - | |||
Total liabilities | 1,012,074 | 963,561 | 1,137,561 | |||
Total equity and liabilities | 2,342,761 | 2,078,877 | 2,108,321 | |||
Statement of changes in equity | |||||||||||||||||
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| Share capital | Share | Other | Accumulated |
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| Ordinary | Deferred | premium | reserve | deficit | Total | ||||||||||
at 1 January 2010 | 1,617,636 | - | 37,412,475 | 364,977 | (42,258,271) | (2,863,183) | |||||||||||
Total comprehensive income for the period | - | - | - | - | 1,942,791 | 1,942,791 | |||||||||||
Re-organisation of equity | (1,617,633) | 1,617,633 | - | (352,219) | 352,219 | - | |||||||||||
Issue of shares for cash | 8 | - | 6,425 | - | - | 6,433 | |||||||||||
Other share issues | 10 | - | 773,730 | - | - | 773,740 | |||||||||||
Exercise of warrants | 357 | - | 35,308 | - | - | 35,665 | |||||||||||
Conversion of debt | 188 | - | 216,162 | - | - | 216,350 | |||||||||||
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at 30 June 2010 |
| 566 | 1,617,633 | 38,444,100 | 12,758 | (39,963,261) | 111,796 | ||||||||||
Total comprehensive income for the period | - | - | - | - | (535,014) | (535,014) | |||||||||||
Exercise of warrants | 250 | - | 24,786 | - | - | 25,036 | |||||||||||
Conversion of debt | 337 | - | 33,313 | - | - | 33,650 | |||||||||||
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at 31 December 2010 | 1,153 | 1,617,633 | 38,502,199 | 12,758 | (40,498,275) | (364,532) | |||||||||||
at 1 January 2011 | 1,153 | 1,617,633 | 38,502,199 | 12,758 | (40,498,275) | (364,532) | |||||||||||
Total comprehensive income for the period | - | - | - | - | (376,486) | (376,486) | |||||||||||
Issue of shares in connection with the acquisition of Saolpoll (Jersey) Limited | 492 | - | 1,966,726 | - | - | 1,967,218 | |||||||||||
Share issue costs | - | - | (110,884) | - | - | (110,884) | |||||||||||
at 30 June 2011 | 1,645 | 1,617,633 | 40,358,041 | 12,758 | (40,874,761) | 1,115,316 | |||||||||||
Total comprehensive income for the period | - | - | - | - | (144,556) | (144,556) | |||||||||||
1,645 |
1,617,633 |
40,358,041 |
12,758 |
(41,019,317) |
970,760 | ||||||||||||
at 1 January 2012 | 1,645 | 1,617,633 | 40,358,041 | 12,758 | (41,019,317) | 970,760 | |||||||||||
Total comprehensive income for the period | - | - | - | - | 359,927 | 359,927 | |||||||||||
at 30 June 2012 | 1,645 | 1,617,633 | 40,358,041 | 12,758 | (40,659,390) | 1,330,687 | |||||||||||
Ordinary and Deferred 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 those shares net of share issue expenses
Other reserve represents a non-distributable reserve arising on the redemption or purchase of a company's own shares
Accumulated deficit represents the cumulative loss of the Group attributable to equity shareholders
Statement of cash flow
6 months ended 30 June 2012 | 6 months ended 30 June 2011 | Year ended 31 December 2011 | ||||
unaudited | unaudited | audited | ||||
£ | £ | £ | ||||
Cash flow from operating activities | ||||||
Profit/(loss) before tax from continuing operations | 359,927 | (376,486) | (521,042) | |||
Depreciation | 814 | 814 | 1,629 | |||
Finance expense | 36,317 | 29,561 | 63,689 | |||
Net cash inflow/(outflow) from operating activities before changes in working capital | 397,058 | (346,111) | (455,724) | |||
(Increase)/decrease in receivables | (15,813) | 17,128 | 6,872 | |||
(Decrease)/increase in payables | (52,987) | 75,529 | 74,529 | |||
Cash flows generated/(absorbed) by operating activities | 328,258 | (253,454) | (374,323) | |||
Cash flows from investing activities | ||||||
Acquisition of Insetco Capital Markets Limited | - | (1) | (1) | |||
Cash flows from financing activities | ||||||
Share issue costs | - | (110,884) | (110,884) | |||
Issue of convertible debt | - | 290,000 | 465,000 | |||
Repayment of convertible debt | (72,500) | - | - | |||
Finance expense | (36,317) | (29,561) | (63,689) | |||
Net cash from financing activities | (108,817) | 149,555 | 290,427 | |||
Net increase/(decrease) in cash and cash equivalents | 219,441 | (103,900) | (83,897) | |||
Opening cash and cash equivalents | 92,005 | 175,902 | 175,902 | |||
Closing cash and cash equivalents | 311,446 | 72,002 | 92,005 | |||
Notes to the interim financial statements
1. Corporate information
Insetco plc is a company incorporated in England and Wales, under registration number 05114024. The Company is quoted on the AIM market of the London Stock Exchange.
2. Basis of preparation
These interim financial statements for the six months ended 30 June 2012 have been prepared using accounting policies consistent with International Financial Reporting Standards "(IFRSs") and comply with the requirements of IAS 34 "Interim Financial Statements".
The same accounting policies, presentation and methods of computation as utilised in the audited financial statements for the year ended 31 December 2011 have been applied consistently in these condensed financial statements.
These condensed financial statements do not constitute statutory financial statements under the Companies Act 2006, have not been audited and do not include all information required for full annual financial statements.
The statutory financial statements for the year ended 31 December 2011 have been delivered to the Registrar of Companies.
3. Total comprehensive income
There are no additional items of income or expense which are not included in the total comprehensive expense statement for the period.
4. Segmental analysis
A segment is a defined component of the Company that is engaged in providing products or services to a particular business sector (business segment), or in providing products or services to a particular economic environment (geographic segment), which is subject to risks and rewards that are different in those other segments.
In the period, the Company operated in one segment, the development of business within financial products, with a particular focus on the life insurance settlement market, and in one geographical market, the United Kingdom. The disclosures required by IFRS8 relating to profits, losses, assets and liabilities of the segment are therefore disclosed by the financial statements as a whole.
5. Profit/(loss) per share
The calculation of the basic profit/(loss) per share is as follows:
| 6 months ended 30 June 2012 | 6 months ended 30 June 2011 | Year ended 31 December 2011 | |||
unaudited | unaudited | audited | ||||
£ | £ | £ | ||||
Profit/(loss) after taxation attributable to equity shareholders | 359,927 | (376,486) | (521,042) | |||
Weighted average number of shares in issue | 164,483,096 | 148,451,901 | 156,533,380 | |||
The calculation of the fully diluted profit per share is as follows:
| 6 months ended 30 June 2012 | 6 months ended 30 June 2011 | Year ended 31 December 2011 | |||
unaudited | unaudited | audited | ||||
£ | £ | £ | ||||
Profit/(loss) after taxation attributable to equity shareholders 1 | 396,244 | - | - | |||
Weighted average number of shares in issue 2 | 237,188,631 | - | - |
1 As adjusted for interest on convertible debt
2 As adjusted for issue of ordinary shares on conversion of debt and exercise of warrants
The calculation of the diluted loss per share for the 6 months ended 30 June 2011 and for the 12 months ended 31 December 2011 is the same as the basic loss per share, as the loss for these periods has an anti-dilutive effect.
6. Availability of the interim results statement
Copies of the interim results statement for the six months ended 30 June 2012 are available from the Company's website www.insetco.com.