Last checked at 29 Sep 2010 12:47
For immediate release: 29 September 2010
KINGSWALK INVESTMENTS LIMITED ("Kingswalk" or "the Company") UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2010
Kingswalk Investments Limited (AIM: KWI), the strategic investment company, today announces its unaudited results for the six months ended 30 June 2010.
DIRECTORS' REVIEWOverviewWe are pleased to present the Company's interim results for the six months to30 June 2010 to shareholders. During the period under review, the Company hascontinued to review potential investment projects with a view to re-commencingits new investment strategy following its reorganisation in 2009. Although nonew investments were made during the period ended 30 June 2010, the Companyannounced an investment in Vermeesch Installaties BV ("Vermeesch") earlier thismonth. Vermeesch is a Dutch based security equipment installation andmaintenance firm operating in Rotterdam which, in the year ended 31 December2009 recorded turnover of €932,000. Kingswalk acquired a 49.99% stake with aview to assisting Vermeesch grow and potentially consolidate the highlyfragmented sector. In January 2010, the Company's board was strengthened withthe appointment of Daan van den Noort, an experienced investment director.
Financial review
The Company incurred a reduced loss for the period of £71,993 (H1 2009: £137,451), reflecting the cost control measures applied in the middle of lastyear. Expenditure during the period of £62,070 was in line with that incurredin the second half of 2009. (H2: £67,641). Loss per share for the period wasreduced five fold to 0.17 pence (H1 2009: 1.00 pence).The Company disposed of part of its holding of its only investment during theperiod, realising proceeds of £22,399. The carrying value of the balance of theholding of that investment was £49,640 at the period end.Since the period end, the Company's number of shares in issue has increased to53,171,673 following the issue of the consideration shares for the investmentin Vermeesch. As a result of the Vermeesch investment, at the date of thisreport, the Company had net assets of approximately £125,000, representing anet asset per share of approximately 0.24 pence per share. The Company'sconvertible debt facility secured in June this year remains in place and this,together with the expected returns from Vermeesch, gives the directorsconfidence for the remainder of the financial year.
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 furtherround of investments, in both private and public ventures. It is the Directorslong term 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 RETURNFOR THE SIX MONTHS ENDED 30 JUNE 2010 For the 6 months For the 6 months For the year ended 30 June 2010 ended 30 June 2009 ended 31 December 2009 (unaudited) (unaudited) (audited) Note Revenue Capital Total Revenue Capital Total Revenue Capital Total £ £ £ £ £ £ £ £ £ LOSSES ON INVESTMENTSNet losses on investments atfair value through profit or loss - (14,923) (14,923) - (9,453) (9,453) - (64,277) (64,277) ________ ________ ________ ________ ________ _________ _______ _______ _________ - (14,923) (14,923) - (9,453) (9,453) - (64,277) (64,277) ________ ________ ________ ________ ________ _________ _______ _______ ________ INCOMELoan waiver - 5,000 5,000 - - - - - - ________ ________ ________ ________ ________ _________ _______ _________ ________ - 5,000 5,000 - - - - - - ________ ________ ________ ________ ________ _________ _______ ________ ________EXPENDITURE
Directors' fees 8,000 - 8,000 - -
- 4,226 - 4,226 Administration fees 18,874 - 18,874 56,858 - 56,858 75,089 - 75,089 Professional fees 16,858 - 16,858 17,994 6,000 23,994 48,774 - 48,774 Consultancy fees - 10,547 10,547 - 35,000 35,000 - 44,998 44,998 Audit fee 3,000 - 3,000 7,000 - 7,000 13,370 - 13,370 Bank charges
and Interest 291 - 291 1,039 - 1,039 3,333 - 3,333 Regulatory and registration fees 4,500 - 4,500 4,107 - 4,107 5,849 - 5,849 ________ ________ ________ ________ ________ ________ _______ _________ ________ 51,523 10,547 62,070 86,998 41,000 127,998 150,641 44,998 195,639 ________ ________ ________ ________ ________ ________ _______ _________ ________ LOSS ON ORDINARY ACTIVITIESFOR THE PERIOD/YEAR (51,523) (20,470) (71,993) (86,998) (50,453) (137,451) (150,641) (109,275) (259,916) Earnings per share Basic (pence per share) 2 (0.17) (1.00) (0.64) (0.46) (1.10)
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 2010 30 June 2009 31 December 2009 Note (unaudited) (unaudited) (audited) £ £ £ £ £ £ Investments at fair value through profit or loss 49,640 141,786 86,962 CURRENT ASSETSOther debtors andprepayments 5,325 - 1,725 Cash and cash equivalents 80 21,777 26,816 ______ _______ _______ 5,405 21,777 28,541 CREDITORS - AMOUNTS FALLING DUE WITHIN ONE YEAROther creditors and accruals (30,920) (32,317) (39,385) _______ _______ _______ (30,920) (32,317) (39,385) Net current (25,515) (10,540) (10,844)liabilities Total assets less current liabilities 24,125 131,246 76,118 CREDITORS - AMOUNTS FALLING DUE AFTER ONE YEAR Loans payable (20,000) (35,157) - NET ASSETS 4,125 96,089 76,118 CAPITAL AND RESERVESCALLED UP SHARE CAPITAL 3 425,050 322,556 425,050 SHARE PREMIUM ACCOUNT 4,254,872 4,254,872 4,254,872 RESERVES (4,675,797) (4,481,339) (4,603,804) SHAREHOLDERS' FUNDS 4,125 96,089 76,118 Net asset value per share pence per share)4 0.01 0.30 0.18APPROVED BY THE BOARD OF DIRECTORSP M Everitt DirectorI R Parry DirectorDate: 29 September 2010UNAUDITED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2010
Six month Six month Year ended period ended period ended 31 December 30 June 2010 30 June 2009 2009 (unaudited) (unaudited) (audited) £ £ £
Net cash outflow from operating activities (74,135)
(39,260) (251,742)
Capital expenditure and financial investment: Proceeds from disposals of investments 22,399
100,000 100,000 _______ _______ _______
Net cash (outflow) / inflow before financing (51,736)
60,740 (151,742) Financing Loans received 25,000 35,157 - Loans repaid - (115,000) (115,000) Issue of Ordinary Shares - 40,000 292,678 _______ _______ _______
Net cash inflow / (outflow) from financing 25,000
(39,843) 177,678
(Decrease) / increase in cash for the period / year (26,736)
20,897 25,936 Opening cash position 26,816 880 880 ______ ______ ______
Cash and cash equivalents at period / year end 80
21,777 26,816 ______ ______ ______ NOTES TO THE UNAUDITED FINANCIAL STATEMENTS30 JUNE 20101. 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. The Company issued no ordinaryshares during the period. Accordingly, the weighted average number of ordinaryshares in issue for the six months ended 30 June 2010 was 42,505,007 (2009:13,762,605).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 has issuedoptions over 800,000 ordinary shares that could potentially dilute basicearnings per share in the future.
3. CALLED UP SHARE CAPITAL
The Company issued no ordinary shares during the period, accordingly the number of ordinary shares as at 30 June 2010 was 42,505,007 (2009: 13,762,605).
4. NET ASSET VALUE PER SHARE
The calculation of net asset value per share is based on the net assets of £4,125 (2009: £96,089) and on the ordinary shares in issue of 42,505,007 at thebalance sheet date (2009: 32,255,627).
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)14 8173 2888Daniel Stewart & Company Plc Oliver Rigby +44 (0)20 7776 6550GTH Communications Toby Hall +44 (0)20 3103 3900Christian Pickel +44 (0)20 3103 3902
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