Last checked at 25 Sep 2009 09:00
For immediate release: 25 September 2009
KINGSWALK INVESTMENTS LIMITED ("Kingswalk" or "the Company") UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009
Kingswalk Investments Limited (AIM: KWI), the strategic investment company, today announces its unaudited results for the six months ended 30 June 2009.
DIRECTORS' REVIEW
We are pleased to present the Company's interim results for the six months to 30 June 2009 to shareholders.
Background
2009 has, for nearly all businesses involved in the financial sector andparticularly those involved in private equity, been an extremely difficulttrading environment. The Company has, during the course of this year, undergonesomething of a transformation with, inter alia, the appointment of newadministrators in Guernsey, the approval by shareholders of a change in theCompany's investment policy and a change of name to Kingswalk Investments and awidening of the Company's shareholder base through the placing undertaken inJune 2009. These changes have been brought about by the almost totaldisintegration of the Company's carrying value of private equity investments,principally caused by the lack of available capital for the underlyingbusinesses, the result of which is that a number have, along with manythousands of other businesses, unfortunately entered administration with novalue attributable to equity holders.The actions taken during the first half of 2009 have, the directors believe,provided Kingswalk with a fresh start to enable it to try to recover value forshareholders during the inevitable rally in investment values over the courseof the next 12 - 18 months.Financial reviewDuring the period under review, the Company did not make any investments andonly realised one investment for 100,000, the proceeds of which were used topartly repay Kingswalk's outstanding borrowings at the time of 115,000. Theeffect of this, together with some of the Company's creditors agreeing toconvert part of their balances owed by the Company into new ordinary shares inthe Company, as announced on 19 June 2009, is that the Company was able togreatly improve its balance sheet by reducing its net current liabilities from 207,883 at the beginning of the period to 10,540 at the period end. Net debt(loans net off cash) at the period end improved from 114,120 on 1 January 2009to only 13,380 at the end of the period under review. Net assets at the periodend increased to 96,089 compared to 43,356 at the beginning of the year.The Company recorded a loss for the period of 137,451, compared to a loss forthe year ended 31 December 2008 of 3,737,827, the year in which the Companyimpaired the vast majority of the carrying value of its investments. Losses oninvestments during the period of 9,453 compares to a loss on investment forthe whole of 2008 of 3,598,699. Expenditure for the six months to 30 June 2009was 127,998 down in comparison to the same period last year.Cash at the period end was 21,777 (31 December 2008: 880) and the Company hada long-term borrowing facility in place at the period end enabling it to drawdown approximately a further 67,000, sufficient to cover the ongoing runningcosts of the Company for the foreseeable future.
Current trading and outlook
The Directors are currently in discussions with a number of parties to raisenew equity and/or debt funds for the Company in order to kick start a new roundof investments, in both private and public ventures. It is the Directors longterm strategy to return the Company to delivering material value forshareholders through the capital appreciation of its underlying investments.Whilst it is too early at this moment to provide any certainty as to when or ifthese additional funds will be forthcoming, the Directors remain cautiouslyoptimistic.UNAUDITED STATEMENT OF TOTAL RETURN FOR THE SIX MONTHS ENDED 30 JUNE 2009 For the 6 months ended For the 6 months ended For the year ended 30 June 2009 30 June 2008 31 December 2008 (unaudited) (unaudited) (audited) Note Revenue Capital Total Revenue Capital Total Revenue Capital Total GBP GBP GBP GBP GBP GBP GBP GBP GBP LOSSES ON INVESTMENTS Net losses on investments at fair value through profit or loss - (9,453) (9,453) - (10,252) (10,252) - (3,598,699) (3,598,699) ______ ______ ______ _____ _______ _______ _____ _______ _______ - (9,453) (9,453) - (10,252) (10,252) - (3,598,699) (3,598,699) ______ ______ ______ _____ _______ _______ _____ _______ _______ INCOME Interest income - - - 20,858 - 20,858 13,770 - 13,770 Loan waiver - - - - - - - 429,051 429,051 ______ ______ ______ _____ _______ _______ _____ _______ _______ - - - 20,858 - 20,858 13,770 429,051 442,821 ______ ______ ______ _____ _______ _______ _____ _______ _______ EXPENDITURE Loan write off - - - - - - - 210,306 210,306 Directors' fees - - - 10,000 - 10,000 15,000 - 15,000 Administration fees 56,858 - 56,858 32,189 - 32,189 50,939 - 50,939 Professional fees 17,994 6,000 23,994 - 14,040 14,040 26,890 - 26,890 Consultancy fees - 35,000 35,000 - 75,011 75,011 - 154,220 154,220 Audit fee 7,000 - 7,000 1,500 - 1,500 11,500 - 11,500 Interest expense 1,039 - 1,039 17,094 - 17,094 77,362 - 77,362 Regulatory and registration fees 4,107 - 4,107 11,238 - 11,238 12,588 - 12,588 Loss on foreign exchange - - - 32,807 - 32,807 23,144 - 23,144 ______ ______ ______ _____ _______ _______ _____ _______ _______ 86,998 41,000 127,998 104,828 89,051 193,879 217,423 364,526 581,949 ______ ______ ______ _____ _______ _______ _____ _______ _______ LOSS ON ORDINARY ACTIVITIES
FOR THE PERIOD/YEAR (86,998) (50,453) (137,451) (83,970) (99,303) (183,273) (203,653) (3,534,174) (3,737,827)
Earnings per share Basic (pence per share) 2 (1.00) (1.38) (28.24)
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued during the period.
UNAUDITED BALANCE SHEET 30 June 30 June 31 December30 JUNE 2009 2009 2008 2008 Note (unaudited) (unaudited) (audited)FIXED ASSETS GBP GBP GBP GBP GBP GBPInvestments at fair value through profit or loss 141,786 4,037,543 251,239 CURRENT ASSETS Loans receivable - 230,000 -Other debtors and prepayments - 39,970 -Cash and cash equivalents 21,777 1,664 880 ________ ________ ________ 21,777 271,634 880CREDITORS - AMOUNTS FALLINGDUE WITHIN ONE YEARLoans payable - (541,257) (115,000)Other creditors and accruals (32,317) (170,010) (93,763) _______ ________ ________ (32,317) (711,267) (208,763) Net current liabilities (10,540) (439,633) (207,883) _______ ________ ________Total assets less current liabilities 131,246 3,597,910 43,356CREDITORS - AMOUNTS FALLINGDUE AFTER ONE YEARLoans payable 35,157) - - ________ ________ _______NET ASSETS 96,089 3,597,910 43,356 ________ ________ _______CAPITAL AND RESERVESCALLED UP SHARE CAPITAL 3 322,556 132,372 132,372SHARE PREMIUM ACCOUNT 4,254,872 4,254,872 4,254,872RESERVES (4,481,339) (789,334) (4,343,888) _________ ________ _________SHAREHOLDERS' FUNDS 96,089 3,597,910 43,356 _________ ________ _________
Net asset value per share
(pence per share) 4 0.30 27.18 0.33APPROVED BY THEBOARD OF DIRECTORSP M Everitt I R ParryDirector DirectorDate: 24 September 2009UNAUDITED CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 30 JUNE 2008 Six month Six month Year ended period ended period ended 31 December 30 June 2009 30 June 2008 2008 (unaudited) (unaudited) (audited) GBP GBP GBP
Net cash outflow from operating activities (39,260)
(95,603) (349,613) Investing activities: Proceeds from disposals of unquoted investments 100,000 45,628 243,484 Loans receivable repaid - - 52,576 _______ _______ _______
Net cash inflow from investing activities 100,000
45,628 296,060 Financing: Loans received 35,157 44,988 47,782 Loans repaid (115,000) - - Issue of Ordinary Shares 40,000 - - _______ _______ _______
Net cash (outflow) / inflow from financing (39,843)
44,988 47,782
Increase / (Decrease) in cash for the period / year 20,897
(4,987) (5,771) Opening cash position 880 6,651 6,651 ______ ______ ______
Cash and cash equivalents at period / year end 21,777
1,664 880 ______ ______ ______RECONCILIATION OF NET
CASHFLOW TO MOVEMENT IN CASH
AND CASH EQUIVALENTS
Increase / (decrease) in cash resources for the year 20,897
(4,987) (5,771)
Cash outflow / (inflow) from debt finance 79,843
(44,988) (47,782) _______ _______ _______
Change in net debt resulting from cash flows 100,740
(49,975) (53,553) Loans waived - - 429,051 Opening (debt) brought forward (114,120) (489,618) (489,618) _______ _______ _______ Closing net (debt) carried forward (13,380) (539,593) (114,120) _______ _______ _______ NOTES TO THE UNAUDITED FINANCIAL STATEMENTS30 JUNE 20091. ACCOUNTING POLICIES(a) CONVENTION
These unaudited interim financial statements have been prepared using the same accounting policies, presentation and methods of computation adopted in the last audited financial statements, which were prepared in accordance with applicable United Kingdom Accounting Standards.
2. EARNINGS PER SHARE
The calculation of basic earnings per share is based on the net return onordinary activities after tax for the period and on the weighted average numberof ordinary shares in issue during the period. On 25 June 2009, the Companyissued 19,018,392 ordinary shares, increasing the number of ordinary shares inissue to 32,255,627. Accordingly, the weighted average number of shares inissue for the six months ended 30 June 2009 was 13,762,605 (2008: 13,237,235).FRS 22: "Earnings Per Share" defines dilution as a reduction in earnings pershare or as an increase in loss per share. When calculating the dilutiveearnings per share for the year the loss per share decreased. Accordingly thediluted loss per share is not disclosed as per FRS 22. The company has800,000 share options in issue which could potentially dilute basic earningsper share in the future.3. CALLED UP SHARE CAPITALOn 25 June 2009, the Company issued and allotted 19,018,392 new ordinary Sharesof 1 pence each ("Ordinary Shares"). 15,018,392 of the new Ordinary Shares wereissued in settlement of 150,183 of outstanding debts owed by the Company and4,000,000 of the new Ordinary Shares were issued to raise new funds for theCompany totalling 40,000. Accordingly, the number of Ordinary Shares in issueat the year increased from 13,237,235 at the beginning of the period to 32,255,627 at 30 June 2009.
4. NET ASSET VALUE PER SHARE
The calculation of net asset value per share is based on the net assets of 96,089 (2008: 3,597,910) and on the ordinary shares in issue of 32,255,627 atthe balance sheet date (2008: 13,237,235).
The report is available to view and download from the Company's website at www.kingswalkinvestments.com
For further information please contact:
Kingswalk Investments Limited Paul Everitt +44 (0)1481 732888Daniel Stewart & Company Plc Oliver Rigby +44(0)20 7776 6550GTH Communications Toby Hall +44 (0)20 7153 8039Christian Pickel +44 (0)20 7153 8036
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