Mercia Asset Regulatory News (MERC)

18 Dec 2006 07:01

Merchant Securities PLC18 December 2006 Merchant Securities plc ("the Company") 18th December 2006 INTERIM REPORT TO SHAREHOLDERS Chairman's statement I have pleasure in presenting the interim results for Merchant Securities plc('the Company') for the six months ended 30th September 2006. During thisperiod, the Company was known as Castor Investments plc. On 25th October 2006,the Company changed its name to Merchant Securities plc following itsacquisition of Merchant Securities Holdings Limited ("MSHL") for £8.35 million. The transaction was effected by issuing 16,700,000 new Ordinary Shares of 10peach at a price of 50p per share. On completion of the acquisition, theexisting directors, David Barton and Alan Pereira, resigned, and the followingdirectors were appointed: Anthony Fabrizi (Chief Executive), Patrick Claridge(Executive Director), Steven Whelton (Finance Director), John Green (Chairman)and Charles Price (Non-Executive Director). The Company's original strategy had been to acquire one or more relatedbusinesses in the health care and life sciences sectors, but it could notidentify suitable acquisitions within those sectors. Trading of the Company'sshares on AIM was suspended on 3rd April 2006, and the new shares werere-admitted following the acquisition. The results reported herein relate to the period before the takeover of MSHL anddo not reflect the group's current business activities. The Company suffered atrading loss for the period of £13,000. At 30th September 2006, the Company hada cash balance of £216,000, and an investment of 1.25 million shares in Phynovaplc (a company listed on AIM) carried at cost of £750,000. Subsequent to theend of the period, the Company sold 600,000 of its shares in Phynova plc for£448,500, thus realising a gain on disposal of £88,500. At 30th November 2006,the group had net cash balances of approximately £2.65 million. On 4th December 2006, the Company changed its business address and RegisteredOffice to John Stow House, 18 Bevis Marks, London, EC3A 7BJ. John Green Chairman Enquiries: Merchant Securities plc Anthony Fabrizi (Chief Executive) Tel: 020 7375 9010 Arden Partners plc Paul Davis Tel: 020 7398 1635 Broadgate Roland Cross Tel: 020 7726 6111 About Merchant Securities plc Merchant Securities plc provides a range of financial services to privateclients, institutions and small businesses. The Company's main operatingsubsidiary, Merchant Securities Group Limited, is authorised by the FinancialServices Authority and provides a variety of services, including asset andadvisory management to over 850 high net worth private clients, sales trading toinstitutional investors, and private equity funding and corporate advice tosmall UK companies. MERCHANT SECURITIES PLC Interim unaudited accounts for the six months ended 30th September 2006 PROFIT AND LOSS ACCOUNT Period ended Period ended Period ended 30th September 31st July 31st March 2006 2005 2006 Unaudited Unaudited Audited £000 £000 £000 Turnover - - -Administrative expenses (18 ) (95 ) (72 ) Operating loss (18 ) (95 ) (72 ) Interest receivable and similar income 5 17 46 Loss on ordinary activities before and after taxation (13 ) (78 ) (26 ) LOSS PER ORDINARY SHARE (PENCE) (NOTE 2) Basic (0.05 ) (0.29 ) (0.10 )Diluted (0.05 ) (0.29 ) (0.10 ) All amounts relate to continuing activities. All recognised gains and losses are shown in the Profit and Loss Account. RECONCILIATION OF MOVEMENT IN SHAREHOLDERS FUNDS Loss for the period (13 ) (78 ) (26 )Shares issued - 272 272Share premium - 788 788Other reserves and deficits - - (59 )Opening shareholders' funds 975 - -Closing shareholders' funds 962 982 975 BALANCE SHEET 30th September 31st July 31st March 2006 2005 2006 Unaudited Unaudited Audited £000 £000 £000 Current AssetsDebtors 75 - 4Investments 750 - 750Cash at bank and in hand 216 982 252 1,041 982 1,006Creditors: amounts falling due in less than one year (79 ) - (31 )Net assets 962 982 975 Capital and reservesCalled up share capital 272 272 272Share premium account 704 788 704Share warrant reserve 25 - 25Profit and loss account (39 ) (78 ) (26 )Shareholders' funds 962 982 975 CASH FLOW STATEMENT 30th September 31st July 31st March 2006 2005 2006 Unaudited Unaudited Audited £000 £000 £000 Net cash outflow from operating activities (41 ) (95 ) (44 )Return on investments and servicing offinanceInterest received 5 17 46Financial investmentAcquisition of current asset investment - - (750 )Net cash outflow before financing (36 ) (78 ) (748 ) FinancingIssues of ordinary shares for cash - 1,060 1,060Share issue expenses - - (60 )Net cash inflow from financing - 1,060 1,000 Increase(/decrease) in cash for the period (36 ) 982 252 NOTES Note 1 - Basis of preparation The interim accounts have been prepared in accordance with applicable accountingstandards and under the historic cost convention. The financial information set out in this interim statement, does not constitutestatutory accounts within the meaning of Section 240 of the Companies Act 1985. Note 2 - Loss per share The loss per share is calculated based on: Period ended Period ended Period ended 30th September 31st July 31st March 2006 2005 2006 Unaudited Unaudited Audited Loss for the period (£000) (13 ) (78 ) (26 )Weighted average number of shares in issue 27,200 27,200 25,868(000) Note 3 - Dividend The directors do not recommend the payment of an interim dividend. Note 4 - Interim statement The interim statement is available to the public from the Company's registeredoffice at John Stow House, 18 Bevis Marks, London EC3A 7JB. This information is provided by RNS The company news service from the London Stock Exchange