30 Jun 2008 15:00
Mission Capital plc
30 June 2008
INTERIM RESULTS For the six months to 31 March 2008
Mission Capital plc ("Mission Capital" or the "Company") announces its unaudited interim results for the six months to 31 March 2008.
Chairman's Statement
Introduction
The consolidated interim results of the Company and its subsidiaries for the six months ended 31 March 2008 show turnover of £1.7 million (2007: £2.8 million), and a loss on ordinary activities before taxation of £0.6 million (2007: £0.16 million), representing a basic and diluted loss per share of 0.572p (2007: 0.161p). As at 31 March 2008, the Company had consolidated net assets of £4.0 million (2007: £6.3 million). The Company will not be paying an interim dividend.
The last two months of the period were taken up by events following the summary dismissal on 5 February 2008 by the Company of its then executive directors, Mr Neil Sinclair and Ms Emma Sinclair. The Board established that the Company had minimal cash resources, no bank lending facilities, and mounting liabilities.
The continuing directors took emergency action to consolidate the Company's financial position. They obtained secured bank borrowing to enable the Company to pay its creditors, and took immediate steps to reduce the Company's expenditure by closing its head office and making head office staff redundant.
The Sinclairs then commenced proceedings against the Company and sought various injunctions against it, including their restoration as executives and employees of the Company and to obtain the Court's permission to bring a derivative action (using the Company's money) against certain of the non-executive directors of the Company.
The Sinclairs lost these applications at the High Court on 12 March 2008 when the Court made orders for costs in the Company's favour against them. Despite the Company's solicitors' written requests for payment, these costs have still not been paid by the Sinclairs.
Given the further deterioration in the property market and the costs of the litigation referred to above, these interim results show a trading loss, as had been anticipated by the directors and announced by the Company on 30 April 2008.
The Present Position
Your directors are disappointed by the continuing costs to the Company of and incidental to the litigation with the Sinclairs and the consequential financial loss. The Board believes that the Company has no choice but to defend the claim by the Sinclairs for restoration to office, as such restoration would, in the Board's view, be profoundly contrary to the interests of shareholders.
The Company's investment in Athens is, as previously announced, unlikely to provide any value to shareholders. The component properties are intended to be sold under the supervision of Athens' bankers, with the objective of Athens and its subsidiaries avoiding formal insolvency procedures.
The Company's subsidiary, Karspace Management Limited (KML), continues to trade profitably. The Board is working with its management team to secure the best way forward for its future success.
The Board
Mr Michael Guthrie retires as a director with effect from today. The Board is grateful for his past service. The Board has been strengthened by the appointments of Mr Chris Phillips in February and Mr Godfrey Thorpe, the non-executive Chairman of KML, in May. The Board has appointed me as Chairman also with effect from today.
Outlook
The turmoil in property and financial markets shows no sign of abatement. We continue to consider options for the Company as they arise.
Philip Goldenberg
Chairman
| Consolidated interim income statement | ||||
| For the six months ended 31 March 2008 | ||||
| Six months 31 March 2008 (unaudited) | Six months31 March 2007 (unaudited) | Year ended30 September 2007 (unaudited) | ||
| Notes | £ | £ | £ | |
| Gross turnover | 1,657,208 | 2,814,920 | 5,149,776 | |
| Less: landlords share of parking receipts | (776,599) | (1,276,553) | (2,624,713) | |
| Net revenue | 880,609 | 1,538,367 | 2,525,063 | |
| Cost of sales | (415,459) | (930,705) | (1,337,513) | |
| Gross profit | 465,150 | 607,662 | 1,187,550 | |
| Distribution costs | (64,497) | (77,870) | (202,854) | |
| Administrative expenses | (976,948) | (672,552) | (1,756,862) | |
| Operating loss | (576,295) | (142,760) | (772,166) | |
| Finance income | 15,033 | 30,603 | 51,780 | |
| Finance expense | (28,656) | (108,186) | (506,758) | |
| Share of profit/(loss) in associated undertaking | - | 57,951 | (497,944) | |
| Loss for the period before taxation | (589,918) | (162,392) | (1,725,088) | |
| Tax expense, net | - | - | - | |
| Loss for the period | (589,918) | (162,392) | (1,725,088) | |
| Attributable to shareholders of Mission Capital plc | ||||
| Loss per share (pence) | ||||
| Basic and diluted | 4 | 0.572p | 0.161p | 1.701p |
| Consolidated interim balance sheet | ||||
| 31 March 2008 | ||||
| 31 March 2008 (unaudited) | 31 March 2007 (unaudited) | 30 Sept 2007 (unaudited) | ||
| £ | £ | £ | ||
| Assets | ||||
| Non-current assets | ||||
| Goodwill | 1,971,477 | 1,971,477 | 1,971,477 | |
| Plant, property and equipment | 35,904 | 127,043 | 100,843 | |
| Investment in associate | - | 1,183,780 | - | |
| 2,007,381 | 3,282,300 | 2,072,320 | ||
| Current assets | ||||
| Inventories | 1,000,000 | 1,200,000 | 1,100,000 | |
| Trade and other receivables | 341,612 | 675,886 | 453,938 | |
| Cash and cash equivalents | 602,644 | 1,154,953 | 726,828 | |
| Total | 1,944,256 | 3,030,839 | 2,280,766 | |
| Total assets | 3,951,637 | 6,313,139 | 4,353,086 | |
| Equity | ||||
| Share capital | 1,030,672 | 1,013,018 | 1,030,672 | |
| Share premium account | 3,654,208 | 3,549,862 | 3,654,208 | |
| Equity reserve | 87,023 | 87,023 | 87,023 | |
| Retained earnings | (2,588,752) | (436,138) | (1,998,834) | |
| Total Equity | 2,183,151 | 4,213,765 | 2,773,069 | |
| Liabilities | ||||
| Non-current | ||||
| Borrowings | 758,321 | 782,743 | 777,024 | |
| Provisions for liabilities | - | 100,000 | - | |
| 758,321 | 882,743 | 777,024 | ||
| Current | ||||
| Trade and other payables | 958,026 | 1,107,159 | 728,984 | |
| Borrowings | 35,437 | 68,264 | 35,457 | |
| Current tax liabilities | 16,702 | 29,804 | 29,790 | |
| Obligations under finance lease | - | 11,404 | 8,762 | |
| 1,010,165 | 1,216,631 | 802,993 | ||
| Total liabilities | 1,768,486 | 2,099,374 | 1,580,017 | |
| Total equity and liabilities | 3,951,637 | 6,313,139 | 4,353,086 | |
| Consolidated interim statement of changes in equity | ||||||||||||
| 31 March 2008 | ||||||||||||
| Equity attributable to equity holders of Mission Capital plc: | ||||||||||||
| Share capital | Share premium account | Equity reserve | Retained earnings | Total equity | ||||||||
| £ | £ | £ | £ | £ | ||||||||
| Balance at 1 October 2006 | 998,203 | 3,464,677 | 87,023 | (273,746) | 4,276,157 | |||||||
| Issue of share capital | 14,815 | 85,185 | - | - | 100,000 | |||||||
| Loss for the six month period and total recognised income and expense for the period | - | - | - | (162,392) | (162,392) | |||||||
| Balance at 31 March 2007 | 1,013,018 | 3,549,862 | 87,023 | (436,138) | 4,213,765 | |||||||
| Issue of share capital | 17,654 | 104,346 | - | - | 122,000 | |||||||
| Loss for the six month period and total recognised income and expense for the period | - | - | - | (1,562,696) | (1,562,696) | |||||||
| Balance at 30 September 2007 | 1,030,672 | 3,654,208 | 87,023 | (1,998,834) | 2,773,069 | |||||||
| Loss for the six month period and total recognised income and expense for the period | - | - | - | (589,918) | (589,918) | |||||||
| Balance at 31 March 2008 | 1,030,672 | 3,654,208 | 87,023 | (2,588,752) | 2,183,151 | |||||||
| Consolidated interim cash flow statement
| ||||
| For the six months ended 31 March 2008 | ||||
| Six months 31 March 2008 (unaudited) | Six months 31 March 2007 (unaudited) | Year ended 30 Sept 2007 (unaudited) | ||
| £ | £ | £ | ||
| Operating activities | ||||
| Results for the period after tax | (589,918) | (162,392) | (1,725,088) | |
| Depreciation of property, plant and equipment | 18,975 | 28,537 | 57,702 | |
| Impairment of interest in associated undertaking | - | - | 261,222 | |
| Profit on disposal of property, plant and equipment | 40,102 | (4,052) | (1,693) | |
| Profit on sale of available for sale financial assets | - | (4,547) | (4,547) | |
| Share of (profit)/loss in associated undertaking | - | (57,951) | 497,944 | |
| Interest receivable (including share of associate) | (15,033) | (30,603) | (51,780) | |
| Interest payable (including share of associate) | 28,656 | 108,186 | 506,758 | |
| Changes in inventories | 100,000 | - | 100,000 | |
| Changes in trade and other receivables | 112,326 | (58,483) | 163,465 | |
| Change in trade and other payables | 215,954 | (19,161) | (197,523) | |
| Tax paid | - | (56,997) | (57,013) | |
| Net cash generated from operating activities | (88,938) | (257,463) | (450,553) | |
| Investing activities | ||||
| Additions to property, plant and equipment | (569) | (66,291) | (76,315) | |
| Receipts from sales of property, plant and equipment | 6,431 | - | 9,250 | |
| Acquisition of interest in associated undertaking | - | (1,206,140) | (1,206,140) | |
| Acquisition of subsidiary undertakings (net of cash acquired) | - | - | (182,360) | |
| Receipts from sale of available for sale financial assets | - | 652,713 | 652,713 | |
| Interest received | 15,033 | 28,575 | 47,788 | |
| Net cash used in investing activities | 20,895 | (591,143) | (755,064) | |
| Financing activities | ||||
| Interest paid | (28,656) | (25,847) | (55,792) | |
| Repayment of borrowings | (18,723) | (18,954) | (21,216) | |
| Repayment of finance lease obligations | (8,762) | (11,592) | (14,235) | |
| Proceeds from share issues | - | - | - | |
| (56,141) | (56,393) | (91,243) | ||
| Net changes in cash and cash equivalents | (124,184) | (904,999) | (1,296,860) | |
| Cash and cash equivalents, beginning of period | 726,828 | 2,023,688 | 2,023,688 | |
| Cash and cash equivalents, end of period | 602,644 | 1,118,689 | 726,828 | |
Selected explanatory notes
1. Nature of operations and general information
The principal activity of Mission Capital plc (the "Company") and its subsidiaries (together, the "Group") is property investment and management. The trading subsidiaries are Karspace Management Limited, a company specialising in the provision of car park and traffic management services to both the public and private sector, Mission Capital (Gloucester) Limited, a property company, and Mission Real Estate Limited, the management company to Athens Investments Holding Group Limited.
Mission Capital plc, a limited liability company, is the Group's ultimate parent company. It is registered in England and Wales. The address of Mission Capital plc's registered office, which is also its principal place of business, is 29 - 30 Fitzroy Square, London, W1T 6LQ. Mission Capital plc's shares are listed on the London Stock Exchange's Alternative Investment Market (AIM).
These condensed consolidated interim financial statements have been prepared using the recognition and measurement principles of International Financial Reporting Standards ("IFRS") as adopted by the European Union. They do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 30 September 2007. These are the first interim financial statements issued by the Company under IFRS. The accounting policies have been applied consistently to all the periods presented in the interim statements.
These consolidated interim financial statements are presented in British pounds (£), which is also the functional currency of the Company.
2. Accounting policies and changes thereto
Basis of preparation
The financial statements have been prepared under the historical cost convention except in relation to share based payments which are stated at their fair value. The measurement bases and principal accounting policies for the Group are set out below:
Basis of consolidation
The Group financial statements consolidate those of the Company and of its subsidiary undertakings at the balance sheet date. Subsidiary undertakings are entities over which the Group has the power to control the financial and operating policies so as to obtain benefits from their activities. The Group obtains and exercises control through voting rights.
Profits or losses on intra-Group transactions are eliminated in full. Acquisitions of subsidiaries are dealt with by the purchase method. On acquisition of a subsidiary, all of the subsidiary's assets and liabilities which exist at the date of acquisition are recorded at their fair values reflecting their condition at that date. Goodwill is stated after separating out identifiable intangible assets. Goodwill represents the excess of acquisition cost over the fair value of the group's share of the identifiable net assets of the acquired subsidiary at the date of acquisition.
IFRS 1 exemptions - business combinations completed prior to date of transition to IFRS
The Group has elected not to apply IFRS3 Business Combinations retrospectively to business combinations prior to the date of transition, 1 October 2006. Accordingly the classification of the combination remains unchanged from that used under UK GAAP. Assets and liabilities are recognised at the date of transition as if they would be recognised under IFRS, and are measured using their UK GAAP carrying amount immediately post-acquisition as deemed cost under IFRS, unless IFRS requires fair value measurement. Deferred tax is adjusted for the impact of any consequential adjustments after taking advantage of the transitional provisions.
Associates
Associates are those entities over which the group has significant influence but which are neither subsidiaries nor interests in joint ventures. Joint ventures are entities whose economic activities are controlled jointly by the group and by other ventures independent of the group. Investments in associates are recognised initially at cost and subsequently accounted for using the equity method. Acquired investments in associates are also subject to purchase method accounting. However, any goodwill or fair value adjustment attributable to the share in the associate is included in the amount recognised as investment in associates.
All subsequent changes to the share of interest in the equity of the associate are recognised in the group's carrying amount of the investment. Changes resulting from the profit or loss generated by the associate are reported in "share of profits of associates" in the consolidated income statement and therefore affect net results of the group. These changes include subsequent depreciation, amortisation or impairment of the fair value adjustments of assets and liabilities.
Items that have been recognised directly in the associate's equity are recognised in the consolidated equity of the group. However, when the group's share of losses in an associate equals or exceeds its interest in the associate, including any unsecured receivables, the group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. If the associate subsequently reports profits, the investor resumes recognising its share of those profits only after its share of the profits equals the share of losses not recognised.
Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group's interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Amounts reported in the financial statements of associates have been adjusted where necessary to ensure consistency with the accounting policies adopted by the group.
Goodwill
Goodwill represents the excess of the cost of acquisition over the fair value of the identifiable net assets acquired and is capitalised.
Goodwill is subject to annual impairment testing. The recoverable amount is tested annually or when events or changes in circumstances indicate that it may be impaired. The recoverable amount is the higher of the fair value less costs and the value in use in the Group. An impairment loss is recognised to the extent that the carrying value exceeds the recoverable amount. In determining a value in use, estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the goodwill that have not already been included in the estimate of future cash flows.
Goodwill previously written-off under UK GAAP prior to the adoption of IFRS for the restated balance sheet of 1 October 2006 has not been reinstated. Goodwill previously written off to reserves is not written back to profit or loss on subsequent disposal.
Revenue
Group revenue comprises the following:
(i) receipts from management and operation of car parks. Where the group does not bear the significant risks and rewards of operating a car park, revenue comprises the net management fee receivable by the group. In all other cases, turnover comprises gross receipts from customers. In these cases, also shown on the face of the profit and loss account is "landlords' share of parking receipts", which represents car parking receipts collected on behalf of car park owners. Turnover is exclusive of VAT.
(ii) rental income from properties.
(iii) management fee receivable for the management of properties.
With all streams of income, when the outcome of a transaction involving the provision of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the balance sheet date. The outcome of the transaction is deemed to be able to be estimated reliably when all the following conditions are satisfied:
- the amount of revenue can be measured reliably - it is probable that the economic benefits associated with the transaction will flow to the entity - the stage of completion of the transaction at the balance sheet date can be measured reliably, and - the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
Interest
Interest is recognised using the effective interest method which calculates the amortised cost of a financial asset and allocates the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying value of the financial asset.
All borrowing costs are expensed as incurred.
Property, Plant and Equipment
Property, plant and equipment are stated at cost, net of depreciation and any provision for impairment, if applicable. Depreciation is calculated to write off the cost of all property, plant and equipment by equal instalments over their expected useful economic lives. The rates generally applicable are:
| Land and buildings - leasehold | Term of lease |
| Fixtures, fittings and equipment | 5 years straight line, or contract period if shorter |
| Motor vehicles | Shorter of period of finance lease and useful economic life on a straight line basis |
Material residual value estimates are updated as required, but at least annually, whether or not the asset is revalued.
Impairment testing of goodwill, and property, plant and equipment
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level. Goodwill is allocated to those cash-generating units that are expected to benefit from synergies of the related business combination and represent the lowest level within the group at which management monitors the related cash flows.
Impairment losses recognised for cash-generating units to which goodwill has been allocated, are credited initially to the carrying amount of goodwill. Any remaining impairment loss is charged pro rata to the other assets in the cash generating unit. With the exception of goodwill, all assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist.
Taxation
Current tax is the tax currently payable based on taxable profit for the period.
Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with shares in subsidiaries is not provided if reversal of these temporary differences can be controlled by the Group and it is probable that reversal will not occur in the foreseeable future. In addition, tax losses available to be carried forward as well as other income tax credits to the Group are assessed for recognition as deferred tax assets. Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the underlying deductible temporary differences will be able to be offset against future taxable income. Current and deferred tax assets and liabilities are calculated at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the balance sheet date. Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate to items that are charged or credited directly to equity (such as the revaluation of land) in which case the related deferred tax is also charged or credited directly to equity.Financial AssetsFinancial assets are divided into the following categories: loans and receivables and available-for-sale financial assets. Financial assets are assigned to the different categories by management on initial recognition, depending on the purpose for which they were acquired. The designation of financial assets is re-evaluated at every reporting date at which a choice of classification or accounting treatment is available.All financial assets are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial assets are recognised at fair value plus transaction costs. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Trade receivables are classified as loans and receivables. Loans and receivables are measured subsequent to initial recognition at amortised cost using the effective interest method, less provision for impairment. Any change in their value through impairment or reversal of impairment is recognised in the income statement.Provision against trade receivables is made when there is objective evidence that the Group will not be able to collect all amounts due to it in accordance with the original terms of those receivables. The amount of the write-down is determined as the difference between the asset's carrying amount and the present value of estimated future cash flows.An assessment for impairment is undertaken at least at each balance sheet date.A financial asset is de-recognised only when the contractual rights to the cash flows from the asset expire or the financial asset is transferred and that transfer qualifies for de-recognition. A financial asset is transferred if the contractual rights to receive the cash flows of the asset have been transferred or the Group retains the contractual rights to receive the cash flows of the asset but assumes a contractual obligation to pay the cash flows to one or more recipients. A financial asset that is transferred qualifies for de-recognition if the Group transfers substantially all the risks and rewards of ownership of the asset, or if the Group neither retains nor transfers substantially all the risks and rewards of ownership but does transfer control of that asset.Financial LiabilitiesFinancial liabilities are obligations to pay cash or other financial assets and are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial liabilities categorised as at fair value through profit or loss are recorded initially at fair value, all transaction costs are recognised immediately in the income statement. All other financial liabilities are recorded initially at fair value, net of direct issue costs. Financial liabilities categorised as at fair value through profit or loss are measured at each reporting date at fair value, with changes in fair value being recognised in the income statement. All other financial liabilities are recorded at amortised cost using the effective interest method, with interest-related charges recognised as an expense in finance cost in the income statement. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are charged to the income statement on an accruals basis using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise. A financial liability is de-recognised only when the obligation is extinguished, that is, when the obligation is discharged or cancelled or expires. ProvisionsA provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation. Employee BenefitsDefined contribution pension scheme: The pension cost charged against operating profits is the contributions payable to the scheme in respect of the accounting period.
Short-term employee benefits, including holiday entitlement are included in current pension and other employee obligations at the undiscounted amount that the Group expects to pay as a result of the unused entitlement. Leased assetsIn accordance with IAS 17, the economic ownership of a leased asset is transferred to the lessee if the lessee bears substantially all the risks and rewards related to the ownership of the leased asset. The related asset is recognised at the time of inception of the lease at the fair value of the leased asset or, if lower, the present value of the minimum lease payments plus incidental payments, if any, to be borne by the lessee. A corresponding amount is recognised as a finance leasing liability. Leases of land and buildings are split into land and buildings elements according to the relative fair values of the leasehold interests at the date the asset is initially recognised. The interest element of leasing payments represents a constant proportion of the capital balance outstanding and is charged to the income statement over the period of the lease. All other leases are regarded as operating leases and the payments made under them are charged to the income statement on a straight line basis over the lease term. Lease incentives are spread over the term of the lease. Inventories Inventories are stated at the lower of cost and net realisable value.
Share optionsDuring 2005, the group issued a number of warrants which were expensed during the vesting period. The fair value was determined at the grant date using the Black-Scholes method, and was expensed on a straight line basis together with a corresponding increase in equity over the vesting period, based on the group's estimate of the number of warrants that would vest. Cash and cash equivalentsCash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.EquityEquity comprises the following: - "Share capital" represents the nominal value of equity shares; - "Share premium account" represents the excess over nominal value of the fair value of consideration received for equity shares, net of expenses of the share issue; - "Equity reserve" represents the reserve in relation to warrants issued but not yet exercised; and - "Retained earnings" represents retained profits.Changes in accounting policies: IFRS1 First-time Adoption of International Financial Reporting Standards sets out the procedures that the Group must follow when it adopts IFRS for the first time as the basis for preparing its financial statements. The Group is required to establish its IFRS accounting policies as at 30 September 2008 and, in general, apply these retrospectively to determine the IFRS opening balance sheet at its date of transition, 1 October 2006. The principal changes in accounting policies are: IFRS3 Business Combinations requires that goodwill is subject to annual impairment reviews rather than amortisation. Goodwill amortisation charged under UK GAAP of £48,688 in the six month period to 31 March 2007, and £98,638 in the year ended 30 September 2007, has been reversed upon adoption of IFRS.
The cash flow statement has been amended for the presentational impact of adoption of IFRS. The net effect in the income statements for the period under review may be summarised as follows:
| Six months 31 Mar 2007 (unaudited) | Year ended 30 Sept 2007 (unaudited) | |
| £ | £ | |
| Administrative expenses: | ||
| Under UK GAAP | 721,240 | 1,855,500 |
| Elimination of amortisation of goodwill | (48,688) | (98,638) |
| Restated under IFRS | 672,552 | 1,756,862 |
| Six months 31 Mar 2007 (unaudited) | Year ended 30 Sept 2007 (unaudited) | |
| £ | £ | |
| Net result for the period: | ||
| Under UK GAAP | (211,080) | (1,823,726) |
| Elimination of amortisation of goodwill | 48,688 | 98,638 |
| Restated under IFRS | (162,392) | (1,725,088) |
The net effect on the opening balance sheet as at 1 October 2006 may be summarised as follows:
| Under UK GAAP (audited) | IAS36 Impairment of assets | Restated under IFRS (unaudited) | |
| £ | £ | £ | |
| Assets | |||
| Non-current | |||
| Goodwill | 2,067,117 | - | 2,067,117 |
| Plant, property and equipment | 89,787 | - | 89,787 |
| Available for sale financial assets | 648,166 | - | 648,166 |
| 2,805,070 | - | 2,805,070 | |
| Current | |||
| Inventories | 1,200,000 | - | 1,200,000 |
| Trade and other receivables | 617,403 | - | 617,403 |
| Cash and cash equivalents | 2,047,961 | - | 2,047,961 |
| 3,865,364 | - | 3,865,364 | |
| Total assets | 6,670,434 | - | 6,670,434 |
| Equity | |||
| Share capital | 998,203 | - | 998,203 |
| Share premium account | 3,464,677 | - | 3,464,677 |
| Equity reserve | 87,023 | - | 87,023 |
| Retained earnings | (273,746) | - | (273,746) |
| Total Equity | 4,276,157 | - | 4,276,157 |
| Liabilities | |||
| Non-current | |||
| Borrowings | 802,330 | - | 802,330 |
| Obligations under finance leases | 11,861 | - | 11,861 |
| Provisions for liabilities | 500,000 | - | 500,000 |
| 1,314,191 | - | 1,314,191 | |
| Current | |||
| Trade and other payables | 926,507 | - | 926,507 |
| Borrowings | 55,640 | - | 55,640 |
| Current tax liabilities | 86,803 | - | 86,803 |
| Obligations under finance leases | 11,136 | - | 11,136 |
| 1,080,086 | - | 1,080,086 | |
| Total liabilities | 2,394,277 | - | 2,394,277 |
| Total equity and liabilities | 6,670,434 | - | 6,670,434 |
The net effect on the balance sheet as at 31 March 2007 may be summarised as follows:
| Under UK GAAP (audited) | IAS36 Impairment of assets | Restated under IFRS (unaudited) | |
| £ | £ | £ | |
| Assets | |||
| Non-current | |||
| Goodwill | 1,922,789 | 48,688 | 1,971,477 |
| Plant, property and equipment | 127,043 | - | 127,043 |
| Investment in associate | 1,183,780 | - | 1,183,780 |
| 3,233,612 | 48,688 | 3,282,300 | |
| Current | |||
| Inventories | 1,200,000 | - | 1,200,000 |
| Trade and other receivables | 675,886 | - | 675,886 |
| Cash and cash equivalents | 1,154,953 | - | 1,154,953 |
| 3,030,839 | - | 3,030,839 | |
| Total assets | 6,264,451 | 48,688 | 6,313,139 |
| Equity | |||
| Share capital | 1,013,018 | - | 1,013,018 |
| Share premium account | 3,549,862 | - | 3,549,862 |
| Equity reserve | 87,023 | - | 87,023 |
| Retained earnings | (484,826) | 48,688 | (436,138) |
| Total Equity | 4,165,077 | 48,688 | 4,213,765 |
| Liabilities | |||
| Non-current | |||
| Borrowings | 782,743 | - | 782,743 |
| Provision for liabilities | 100,000 | - | 100,000 |
| 882,743 | - | 882,743 | |
| Current | |||
| Trade and other payables | 1,107,159 | - | 1,107,159 |
| Borrowings | 68,264 | - | 68,264 |
| Current tax liabilities | 29,804 | - | 29,804 |
| Obligations under finance leases | 11,404 | - | 11,404 |
| 1,216,631 | - | 1,216,631 | |
| Total liabilities | 2,099,374 | - | 2,099,374 |
| Total equity and liabilities | 6,264,451 | 48,688 | 6,313,139 |
The net effect on the balance sheet as at 30 September 2007 may be summarised as follows:
| Under UK GAAP (audited) | IAS36 Impairment of assets | Restated under IFRS (unaudited) | |
| £ | £ | £ | |
| Assets | |||
| Non-current | |||
| Goodwill | 1,872,839 | 98,638 | 1,971,477 |
| Plant, property and equipment | 100,843 | - | 100,843 |
| Investment in associate | - | - | - |
| 1,973,682 | 98,638 | 2,072,320 | |
| Current | |||
| Inventories | 1,100,000 | - | 1,100,000 |
| Trade and other receivables | 453,938 | - | 453,938 |
| Cash and cash equivalents | 726,828 | - | 726,828 |
| 2,280,766 | - | 2,280,766 | |
| Total assets | 4,254,448 | 98,638 | 4,353,086 |
| Equity | |||
| Share capital | 1,030,672 | - | 1,030,672 |
| Share premium account | 3,654,208 | - | 3,654,208 |
| Equity reserve | 87,023 | - | 87,023 |
| Retained earnings | (2,097,472) | 98,638 | (1,998,834) |
| Total Equity | 2,674,431 | 98,638 | 2,773,069 |
| Liabilities | |||
| Non-current | |||
| Borrowings | 777,024 | - | 777,024 |
| 777,024 | - | 777,024 | |
| Current | |||
| Trade and other payables | 728,984 | - | 728,984 |
| Borrowings | 35,457 | - | 35,457 |
| Current tax liabilities | 29,790 | - | 29,790 |
| Obligations under finance leases | 8,762 | - | 8,762 |
| 802,993 | - | 802,993 | |
| Total liabilities | 1,580,017 | - | 1,580,017 |
| Total equity and liabilities | 4,254,448 | 98,638 | 4,353,086 |
For further information, please refer to Mission Capital plc's Consolidated Financial Statements 2007 (which were prepared under UK GAAP), which have been filed with the Registrar of Companies and are available on the Company's website, www.missioncapitalplc.com. The auditors' report on those financial statements was unqualified and did not contain a statement under Section 237(2) or Section 237(3) of the Companies Act 1985. The financial statements for the six months ended 31 March 2008 and 31 March 2007 are unaudited.
3. Segment analysisThe Group has three streams of income. An analysis of gross turnover is given below:
| Six months 31 March 2008 (unaudited) | Six months 31 March 2007 (unaudited) | Year ended 30 September 2007 (unaudited) | |
| £ | £ | £ | |
| Car park management | 1,609,083 | 2,734,037 | 4,957,595 |
| Property trading | - | 46,707 | 94,832 |
| Property management | 48,125 | 34,176 | 97,349 |
| 1,657,208 | 2,814,920 | 5,149,776 |
4. Losses per share The calculation of the basic loss per share is based on the losses attributable to the shareholders of Mission Capital plc divided by the weighted average number of shares in issue during the period. All losses per share calculations relate to continuing operations of the Company.
| Losses attributable to shareholders | Weighted average number of shares | Basic loss per share amount in pence | |
| Six months ended 31 March 2008 | (589,918) | 103,067,126 | 0.572 |
| Six months ended 31 March 2007 | (162,392) | 100,984,314 | 0.161 |
| Year ended 30 September 2007 | (1,725,088) | 101,404,654 | 1.701 |
Fully diluted loss per share is also based upon the above figures as there are no potential dilutive ordinary shares in issue.5. Financial Statements The financial information included in this report does not constitute statutory accounts for the purposes of section 240 of the Companies Act 1985. This statement will be available on the Company's website www.missioncapitalplc.com.