30 Apr 2018 07:00
Pires Investments plc
("Pires" or the "Company")
Results for the year to 31 October 2017
The Board is pleased to announce the audited results of Pires for the year ended 31 October 2017.
Chairman's Statement
During the year to 31 October 2017, the Company's net assets increased significantly to £627,548 compared to the previous year's figure of £130,714. This was principally due to fundraising during the year and the favourable performance of the Company's investment portfolio.
The operating loss from continuing activities for the period amounted to £142,916, again a significant reduction compared to the previous year. This improvement was principally due to the increase in value of the Company's investment portfolio, as already mentioned. We were also able to realise some of these investment gains through certain strategic disposals. The results also included a significant provision against our VAT receivable balance, which has had the effect of inflating our operating costs. Discussions with Customs and Excise continue but the Directors consider it prudent to make this provision at this stage.
During the period under review, we raised £675,000 gross (£639,750 net of fees) in new equity from investors and these funds were largely used to make a significant investment in Eco (Atlantic) Oil and Gas Limited ("ECO"), an oil and gas exploration company listed on both AIM and the Toronto Stock Exchange. Since the year end, the Company's net asset position has continued to grow and is, at the date of this statement approximately 30% higher than as at the year end. This is principally due to the increase in the share price of ECO, which now represents the Company's largest investment.
The Company reviewed a number of potential reverse transaction opportunities during the year. However, none of them advanced beyond the diligence stage. The Company continues to review a range of opportunities and the Directors believe that it is in a stronger position to attract interesting transactions given the improvement in its financial position.
Peter Redmond
Chairman
STATEMENT OF COMPREHENSIVE INCOME
2017 £ | 2016 £ | ||
CONTINUING ACTIVITIES | |||
Income | |||
Investment income | - | 33 | |
Other Income | 8 | 21 | |
Total income | 8 | 54 | |
Gain / (Loss) on investments held at fair value through profit or loss
| 196,049 | (302,463) | |
Operating expenses | (338,973) | (248,611) | |
Operating (loss) from continuing activities | (142,916) | (551,020) | |
(Loss) before taxation from continuing activities | (142,916) | (551,020) | |
Tax | - | - | |
(Loss) for the year from continuing activities | (142,916) | (551,020) | |
(Loss) for the year from discontinued operations | - | (8,617) | |
(Loss) for the year and attributable to equity holders of the Company | (142,916) | (559,637) | |
Loss per share | |||
Equity holders | |||
Basic and diluted | (0.43)p | (5.0)p | |
STATEMENT OF CHANGES IN EQUITY
Share Capital £ | Share Premium £ | Capital Redemption Reserve £ | Retained Earnings £ | Total £ | |
Balance at 1 November 2015 | 11,853,192 | 2,904,840 | 164,667 | (14,330,348) | 592,351 |
Issue of shares | 5,285 | 94,715 | - | - | 100,000 |
Share issue costs | - | (2,000) | - | - | (2,000) |
Total comprehensive loss for the year |
- |
- |
- | (559,637) | (559,637) |
As at 31 October 2016 | 11,858,477 | 2,997,555 | 164,667 | (14,889,985) | 130,714 |
Restatement re share consolidation: | |||||
Adjustment re share consolidation | 23,217 | (23,217) | |||
Total restated balance at 31 October 2016 | 11,881,694 | 2,974,338 | 164,667 | (14,889,985) | 130,714 |
Issue of shares | 56,250 | 583,500 | - | - | 639,750 |
Total comprehensive loss for the year | - | - | - | (142,916) | (142,916) |
As at 31 October 2017 | 11,937,944 | 3,557,838 | 164,667 | (15,032,901) | 627,548 |
STATEMENT OF FINANCIAL POSITION
2017 £ | 2016 £ | ||
Non-current assets | |||
Property, plant and equipment | - | 230 | |
Investment in subsidiaries | 1 | 1 | |
Total non-current assets | 1 | 231 | |
Current assets | |||
Investments | 543,421 | 152,624 | |
Trade and other receivables | 9,875 | 53,865 | |
Cash and cash equivalents | 241,142 | 49,448 | |
Total current assets | 794,438 | 255,937 | |
Total assets | 794,439 | 256,168 | |
Equity | |||
Issued share capital | 11,937,944 | 11,881,694 | |
Share premium | 3,557,838 | 2,974,338 | |
Retained earnings | (15,032,901) | (14,889,985) | |
Capital redemption reserve | 164,667 | 164,667 | |
Total equity | 627,548 | 130,714 | |
Liabilities | |||
Current liabilities | |||
Trade and other payables | 166,891 | 125,454 | |
Total liabilities and current liabilities | 166,891 | 125,454 | |
Total equity and liabilities | 794,439 | 256,168 | |
1. OPERATING(LOSS) |
| |||
2017 £ | 2016 £ | |||
Operating (loss) from continuing activities is stated after charging: | ||||
Depreciation of property, plant and equipment | 230 | 827 | ||
VAT provision | 68,157 | - | ||
2. (LOSS) PER SHARE |
| |||
2017 £ | 2016 £ | |||
(Loss)attributable to the owners of the Company | ||||
Continuing Operations | (142,916)
| (551,020) | ||
2017 No. of Shares | 2016 No. of shares | |||
Weighted average number of shares for calculating basic loss per share | 33,521,353 | 11,400,805 | ||
2017 Pence | 2016 Pence | |||
Basic and diluted loss per share | ||||
Continuing Operations - basic and diluted | (0.43) | (5.00) | ||
3. The Independent Auditors' Report contains an emphasis of matter which is set out below in the extract of their report:
Emphasis of matter
We draw attention to note 2 of the financial statements. The Company's administrative expenses in the 12-month period from the signing of these financial statements may exceed the Company's current cash balance, barring any fundraising activities undertaken by Pires. The Company, however, has a significant portfolio of listed investments, some of which could be easily realised to meet a possible shortfall if it were to arise. This provides more than sufficient headroom for Pires, as at the date of signing of these accounts.
Copies of the accounts will be posted 30 April 2018 to shareholders and will be available on the Company's website at www.piresinvestments.com
Enquiries:
Pires Investments plc: +44 (0) 20 7580 7576
Peter Redmond, Director
Nominated Adviser: +44 (0) 20 7213 0880
Cairn Financial LLP
Liam Murray
Broker: +44 (0) 20 7562 3351
Peterhouse Capital Limited
Duncan Vasey / Lucy Williams