Palace Capital Regulatory News (PCA)

GENERAL TEXT AMENDMENT

The following amendment has been made to the 'Interim results for the six months ended 31 July 2012' announcement released on 28/09/2012 at 10:56 under RNS No 4410N.

In the 5th paragraph of the paragraph entitled "Basis of Preparation", line 6, the reference to "the directors" should be "Stanley Davis and Neil Sinclair".

All other details remain unchanged.

The full amended text is shown below.

Palace Capital plc ("the Company")

Interim results for the six months ended 31 July 2012

CHAIRMAN'S STATEMENT

I can report that for the half year ended 31 July 2012 your company made a loss before tax of £65,086 (2011 - £23,852). The company will not be declaring a dividend.

We have spent some considerable time actively managing the nine properties within the Hockenhull Estates Ltd portfolio, acquired last October. We have successfully renewed the lease at an increased rental with Countrywide Estate Agents at 45 High Street, Nantwich, Cheshire. We worked with the Administrator of our former tenant, Connexions Ltd, at 23-25, Market Street, Crewe, Cheshire, resulting in the lease being assigned to Cheshire East Council who has become our direct tenant.

The half year was also spent seeking a significant and suitable acquisition in order to grow the Company. We are evaluating a number of opportunities but will not pursue those which do not provide the required return that we can recommend to shareholders. However we are leaving no stone unturned in trying to secure an appropriate transaction.

 The Company is focusing on the UK secondary property market mainly outside of London in order to find value. We are seeking to acquire further property companies that own secondary commercial investments, commercial property portfolios and property backed businesses in order to enhance shareholder value. The secondary property market continues to be in a state of flux but we believe that the uncertainties the market is facing will produce a number of opportunities of which we believe we can take advantage. We look to the future with confidence.

Stanley Davis

Chairman

28 September 2012

Enquiries: 

Palace Capital plc

CONSOLIDATED INCOME STATEMENT

for the six months ended 31 July 2012

Palace Capital plc

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 31 July 2012

Palace Capital plc

CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 31 July 2012

Palace Capital plc

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 31 July 2012

1 BASIS OF PREPARATION

The financial information contained in this interim report does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The figures for the period ended 31 January 2012 have been extracted from the audited statutory accounts. The interim results, which have not been audited or reviewed by the company's auditors, have been prepared in accordance with applicable International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). These standards are also collectively referred to as "IFRS".

The accounting policies and methods of computations used are consistent with those used in the Group Annual Report for the year ended 31 January 2012 and are expected to be used in the Group Annual Report for the year ending 31 January 2013.

Statutory accounts for the year ended 31 January 2012 were prepared and filed with the Registrar of Companies and received an unqualified audit report.

The interim report was approved by the Board of Directors on 28 September 2012.

As at 31 July 2012, the Group had net current liabilities of £52,239. Included within current liabilities are redeemable preference shares of £65,000 and loan notes of £60,000. These amounts are due to directors of the company Stanley Davis and Neil Sinclair or entities controlled by them and Andrew Perloff, who have given undertakings to the group that these amounts will only be payable when there are adequate cash resources within the group so that the group can continue to meet its liabilities as they fall due for the foreseeable future. In addition, Stanley Davis and Neil Sinclair will continue to support the company and if and when necessary will provide funds on an interest free basis. With these undertakings, and after considering the group's cash flow forecasts, the directors have prepared these interim results on the going concern basis.

Copies of this statement are available to the public for collection at the company's Registered Office at 41 Chalton Street, London, NW1 1JD and on the Company's website, www.palacecapitalplc.com.

2 PROFIT/(LOSS) per share

The profit/(loss) per share for the period is calculated based upon the following information: