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Annual Financial Report

15 May 2012 12:49

RNS Number : 3823D
Northwest Investment Group Ltd
15 May 2012
 



Northwest Investment Group Limited

("NWIG" or the "Company")

Financial Results for the year ended 31 December 2011

 

 

CHAIRMAN'S STATEMENT

 

 

On 9 June 2010, Northwest Investment Group Ltd. ("NWIG" or "the Company") raised 3 million pounds from the Investors and was successfully listed on AIM of London Stock Exchange. Since then we have sought out investment opportunities in line with our investment policy namely the acquisition or investment in the hydropower energy market in Western China.

 

Whilst it was our intention to make a sizeable acquisition and we have commenced discussions with the relevant people and organisations in order to acquire or invest in hydropower projects, we have not yet concluded a deal. We will keep shareholders updated of progress as and when anything is announceable. As the Company has not substantially implemented its investment policy within 18 months of Admission then, in accordance with the AIM Rules, the Company's investment policy is subject to the approval of the Shareholders at the annual general meeting.

 

During 2011, the global economy has slowed, financial volatility and risk aversion have sharply increased, and performance remains uneven across regions. Despite this, China's economic performance continues to hold up well, especially in the energy market, which makes us confident in our implementation of investment policy and we will try our best to acquire the high-quality hydropower assets in the western area of China.

 

As the business develops, we will recruit more talented personnel so that we can realise our strategic objectives. I would like to extend my sincere thanks to my staff and board for their zeal, vision and dedication.

 

 

 

 

 

 

 

 

………………………………

Kaifeng Li

 

Chairman

 

 

Contact details:

 

Northwest Investment Group Ltd. +86-(0)10 8724 6052

 

Kaifeng Li, Chairman

 

 

 

 

ZAI Corporate Finance Ltd +44-(0)20 7060 2220

Nomad and Broker

 

John Depasquale/Wei Wang

 

 

 

 

 

 

 

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2011

Year ended

Year

ended

 31 December 2011

31

December 2010

£'000

£'000

Revenue

-

-

Cost of sales

-

-

 

 

-

-

Administrative expenses

(439)

(289)

 

 

Operating loss

(439)

(289)

Bank interest received

-

-

Finance costs

-

-

Loss before income tax

(439)

(289)

Income tax expense

-

-

Loss for the year

(439)

(289)

Earnings per share

Pence

Pence

restated

Basic and diluted earnings per share

(0.33)

(0.36)

 

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2011

As at

As at

31

December

2011

 31 December 2010

£'000

£'000

Current assets

Trade and other receivables

1

41

Cash and cash equivalents

2,381

2,783

2,382

2,824

Total assets

2,382

2,824

Current liabilities

Trade and other payables

47

50

47

50

Total liabilities

47

50

Equity attributable to owners of the parent

Share capital

670

670

Share premium

2,422

2,422

Retained earnings

(757)

(318)

Total equity

2,335

2,774

Total liabilities and equity

2,382

2,824

 

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2011

Share capital

Share premium

Retained earnings

Total

£'000

£'000

£'000

£'000

Balance at 31 December 2009

25

2

(29)

(2)

Comprehensive income

Profit or loss

-

-

(289)

(289)

 

 

 

 

Total comprehensive income

-

-

(289)

(289)

Transaction with owners

Issue of shares

Placing costs

645

-

2,595

(175)

-

-

3,240

(175)

 

 

 

 

Total transactions with owners

645

2,420

-

3,065

Balance at 31 December 2010

670

2,422

(318)

2,774

Comprehensive income

Profit or loss

-

-

(439)

(439)

 

 

 

 

Total comprehensive income

-

-

(439)

(439)

Balance at 31 December 2011

670

2,422

(757)

2,335

 

 

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2011

Year

ended

Year

ended

 31 December 2011

 31 December 2010

£'000

 £'000

Net cash used in operating activities

(402)

(288)

Investing activities

Sincerity fund for potential acquisition

(900)

-

Sincerity fund refunded

900

-

Interest received

-

-

 

 

Net cash used in investing activities

-

-

Financing activities

Repayment of loan to director

-

(973)

Proceeds from issue of share

-

3,240

Placing costs

-

(175)

 

Net cash used in/from financing activities

-

2,092

Net (decrease)/increase in cash and cash equivalents

(402)

1,804

Cash and cash equivalents at beginning of the year

2,783

979

 

Cash and cash equivalents at end of year

2,381

2,783

 

A copy of the Annual Report and Notice of AGM has been posted to shareholders and will shortly be made available on the Company's website http://www.northwestinv.com/

 

About NWIG

 

The Company's objective is to generate an attractive rate of return for Shareholders by taking advantage of opportunities to invest in the hydropower market in Western China. The Directors believe that Western China is relatively underdeveloped and therefore offers an attractive potential opportunity to invest in hydropower energy. The Directors also believe that it is likely that there will be continued governmental support for investment in hydropower projects in this region.

 

The Company is seeking to make a sizeable acquisition within a year of Admission, which most likely would be deemed a Reverse Takeover and therefore would require shareholders' approval. It does not intend to make any other smaller acquisitions or investments before then. The Company will ultimately aim to acquire/invest in up to 2 power-generation projects with a capacity of approximately 200 megawatts. The Directors intend that the construction of these projects would be completed before 2012.

 

Before making an acquisition the Board or an independent third party will carry out a feasibility study report to check the environmental impact and to carry out a relevant profitability analysis for each potential project. The Board will only complete an acquisition if the project is considered environmentally friendly and economically profitable.

 

The Company will be a value and growth oriented investor, targeting opportunities with the ability for the Company to add value either through its access to capital, its network of contacts or by recruiting high quality personnel. The Company intends to be an "active" investor rather than a "passive" investor.

 

The Company does not have a fixed life but the Directors undertake to propose a resolution for the winding-up of the Company if no investments are made within two years of Admission. If such resolution is not passed, the Company will continue its operations and a similar resolution will be put to Shareholders each year thereafter if no investments have been made. In addition, pursuant to the AIM Rules for Companies, if the Company has not substantially implemented its investment policy within eighteen months of Admission, the investment policy will be subject to approval by Shareholders at the next annual general meeting and annually thereafter.

 

As the Company's Investment Policy is, in the first instance, to seek an acquisition which would be deemed a Reverse Takeover and therefore result in the Company ceasing to be an "investing company" for the purposes of the AIM Rules and becoming a holding company of an operating business, it will not be relevant for the Company to undertake periodic reporting of its net asset valuation before such an acquisition is made. Full year and half yearly financial reporting will be undertaken in accordance with the AIM Rules.

 

The Company has been advised that there are no specific licences, consents or approvals required to carry on the Company's current activities in the BVI. The Company has also been advised that it does not require any specific licences in relation to its current activities in the PRC and that it has reasonable grounds to believe that it can obtain all necessary licences and permits at the relevant time in order to make the proposed acquisition detailed above.

 

It should be noted that the nature of the Company's activities is speculative and, being dependent on specific investment opportunities, uncertain, accordingly, an investment in the Ordinary Shares is designed only for investors who understand such risks and uncertainties and who can afford to bear the loss of their individual investment.

 

Any material change to the Investment Policy will only be made by the Board following Shareholder approval in accordance with the AIM Rules.

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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