PGR.L Regulatory News (PGR)

21 Jul 2006 07:00

Ragusa Capital PLC21 July 2006 Ragusa Capital Plc Final results for the year ended 31 March 2006 CHAIRMAN'S STATEMENT The results for Ragusa Capital Plc (the "Company") cover the year ended 31 March2006. RESULTS FOR THE YEAR ENDED 31 MARCH 2006 The Company generated a profit for the year, after taxation, of £76,780 afterreceiving investment revenues of £216,625, having paid administrative expensesof £233,804 and recorded other net gains of £165,158. The other net gains of £165,158 include a loss of £70,808 on the sale of 243,000shares in Aurum Mining Plc as a result of the Company being deemed by The Panelon Takeovers and Mergers to be acting in concert with certain other shareholdersin Aurum Mining Plc. The other members of the concert party have agreed, in duecourse, to transfer sufficient of their shares in Aurum Mining Plc to reinstatethe position. This is the first year the Company has adopted International Financial ReportingStandards (IFRS) and the Company therefore recognises changes in the fair valueof its short-term investments in the income statement. The adoption of IFRSresulted in an overall positive effect of £20,713 on last year's balance sheetand result for the year. The basic and diluted earnings per share was 0.3 pence (2005: 0.1 pence). TheCompany had cash balances of £4,533,522 at the year end. The profit for the period also includes costs of approximately £17,000associated with an abortive acquisition. REVIEW OF ACTIVITIES As stated in the AIM admission document, the Board believes that potentialopportunities lie in the natural resources sector. When the Company announcedits results for the period ended 31 March 2005, it announced it had identified apotential acquisition opportunity within the oil sector. The Company furtherannounced that the Board was uncertain whether the parties would be able toreach agreement on revised terms, which the Board felt were necessary as aresult of certain matters that came to light during the due diligence process.This proved to be the case and when the Company released its interim results forthe six months ended 30 September 2005 it announced that discussions with thisparty had broken off. Despite having spent a significant amount of time on the opportunity referred toabove the Board has continued to both research and evaluate other opportunitiesof varying sizes. Consequently, the Company has made two small investments, asreferred to below, which the Board believes will deliver meaningful returns: • a 2.6% shareholding and a £170,000 secured convertible loan note in Aurum Mining Plc a company that has invested in gold and other mineral exploration and extraction projects in the FSU. • a 9.8% shareholding in Alba Mineral Resources Plc a company that was formed to develop its gold, nickel and base metal projects and investigate, acquire and advance further exploration projects in Scotland, the Republic of Ireland and other European countries. Notwithstanding these investments the Board is continuing to evaluate furtheropportunities with the emphasis on one large and substantial investment. Lance O'NeillChairman21 July 2006 INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2006 Notes 2006 2005 £ £ Revenue - - Cost of sales - - --------- ---------Gross profit - -Administrative expenses (233,804) (212,946) --------- ---------Operating loss (233,804) (212,946)Investment revenues 216,625 179,186Other gains and losses 165,158 20,713 --------- ---------Profit/(loss) before taxation 147,979 (13,047)Tax 2 (71,199) - --------- ---------Profit/(loss) for the year 76,780 (13,047) ========= ========= Earnings/(loss) per ordinary 10p share Basic and diluted 3 0.3 pence (0.1 pence) The comparative numbers relate to the period from incorporation on 25 March 2004to 31 March 2005. All of the Company's operations are classed as continuing. BALANCE SHEET 31 MARCH 2006 2006 2005 £ £Non-current assetsProperty, plant and equipment 4,820 4,044 Current assetsTrading investments 1,024,186 571,488Trade and other receivables 22,640 40,149Cash and cash equivalents 4,533,522 4,865,081 --------- --------- 5,580,348 5,476,718 --------- ---------Total assets 5,585,168 5,480,762 Current and total liabilitiesTrade and other payables (41,258) (84,569) Net current assets 5,539,090 5,392,149 Non-current liabilitiesDeferred tax (71,199) - --------- ---------Net assets 5,472,711 5,396,193 ========= ========= EquityShare capital 2,401,515 2,401,515Share premium account 3,007,463 3,007,725Retained earnings 63,733 (13,047) --------- ---------Total equity 5,472,711 5,396,193 ========= ========= STATEMENT OF CHANGE IN SHAREHOLDERS' EQUITY 31 MARCH 2006 Share Capital Share Premium Retained Total Earnings £ £ £ £ On incorpporation - - - - Loss for the period - - (13,047) (13,047) --------- --------- --------- -------- - - (13,047) (13,047) Issue of share capital 2,401,515 3,007,725 - 5,409,240 --------- --------- --------- -------- At 31 March 2005 2,401,515 3,007,725 (13,047) 5,396,193 ========= ========= ========= ======== Profit for the year - - 76,780 76,780 --------- --------- --------- -------- 2,401,515 3,007,725 63,733 5,472,973 Share issue costs - (262) - (262) --------- --------- --------- -------- At 31 March 2006 2,401,515 3,007,463 63,733 5,472,711 ========= ========= ========= ======== CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2006 2006 2005 £ £ Net cash from operating activities (257,868) (167,871) Investing activitiesPurchase of trading investments (420,852) (550,775)Proceeds on disposal of trading investments 133,312 -Interest received 216,625 179,186Purchase of property, plant and equipment (2,514) (4,699) --------- --------- (73,429) (376,288) --------- ---------Financing activities(Costs)/proceeds on the issue of shares (262) 5,409,240 --------- --------- (262) 5,409,240 --------- --------- --------- ---------Net (decrease)/increase in cash (331,559) 4,865,081 Cash and cash equivalents at the beginning ofthe period 4,865,081 - --------- ---------Cash and cash equivalents at the end of theperiod 4,533,522 4,865,081 ========= ========= Notes: 1. Basis of preparation The financial information set out above does not constitute the Company'sstatutory accounts within the meaning of section 240 of the Companies Act 1985.The information has been extracted from the Company's audited financialstatements for the year ended 31 March 2006. These financial statements will bedistributed to the shareholders and delivered to the Registrar in due course.The financial statements for the period ended 31 March 2005 have been deliveredto the Registrar and included the auditors' report which was unqualified and didnot contain a statement either under section 237(2) or 237(3) of the CompaniesAct 1985. The accounting policies are consistent with those applied in the preparation ofthe statutory audited accounts for the year ended 31 March 2006, which have beenprepared in accordance with International Financial Reporting Standards for thefirst time. 2. Tax 2006 2005 £ £United Kingdom corporation tax at 30% - -Deferred taxation (see below) 71,199 - --------- --------- 71,199 - ========= ========= The deferred tax balance arises on the unrealised gains on the Company'sinvestments, valued at their fair value. At the balance sheet date, the Company had £102,907 (2005: £13,047) available tooffset against future profits. No deferred tax asset has been recognised inrespect of these losses as the timing and extent of recovery is sufficientlyuncertain. 3. Earnings per share Basic earnings per share is calculated by dividing the profit attributed toordinary shareholders of £76,780 (2005: loss £13,047) by the weighted averagenumber of shares of 24,015,147 (2005: 16,774,618) during the year. The dilutedearnings per share calculation is identical to that used for basic earnings pershare as the exercise price of the warrants is greater than the average shareprice during the year and is therefore not considered dilutive under the termsof IAS 33 "Earnings per Share". Enquiries: Lance O'Neill, Ragusa Capital Plc 020 7499 8334Nigel Duxbury, Ragusa Capital Plc 020 7499 8334Graham Swindells, Arbuthnot Securities Limited 020 7012 2000 This information is provided by RNS The company news service from the London Stock Exchange