30 Apr 2019 07:00
Pires Investments plc
("Pires" or the "Company")
Results for the year to 31 October 2018
The Board is pleased to announce the audited results of Pires for the year ended 31 October 2018.
Chairman's Statement
The Board is pleased to announce improved results for the financial year ended 31 October 2018 as compared with the previous year. The Company achieved a profit before taxation of £322,069 compared to a loss before taxation of £142,916 for 2017. Operating costs were significantly reduced during the year to £252,929.
The principal factor behind the improved results was the increase in the value of our investments which almost doubled to £1,029,526, after allowing for share disposals during the period amounting to £264,881 which includes realised gains of £89,192. Since the period end, the value of the investment portfolio has increased by a further 45% to £1,490,000 after further profitable share disposals.
The main factor behind the improved performance was the increase in the value of our holding in ECO (Atlantic) Oil and Gas Limited although our other investments, principally SalvaRx plc ("SalvaRx"), also made significant advances. Since the year end, there have been significant changes in SalvaRx which are described in the Directors' Report in the section 'Events after the Reporting Period'.
In February 2019, the Board raised additional equity funds by way of a placing to raise £781,720 at a price of 2.4p per share, a modest discount to the then market price of the shares. As markets continue to be uncertain, the Board believed that it was prudent to raise some additional funds at this stage to ensure that the Company is well placed for the future and better able to take advantage of opportunities as they arise.
Taking account of this placing and the increased value of the Company's investments, the Company's net assets have now risen to around £2.35 million and comprise virtually wholly of cash and tradeable quoted shares. As previously stated, the Board considers that the Company not only represents a much more attractive investment partner but also has the resources to diversify its portfolio and to make investments from time to time on a scale which could significantly enhance shareholder value.
The Board will continue to seek value enhancing investments whether by taking minority holdings or by direct acquisition.
Peter Redmond
Chairman
STATEMENT OF COMPREHENSIVE INCOME
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| 2018 £ | 2017 £ |
CONTINUING ACTIVITIES |
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Income |
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Investment income |
| - | - |
Other Income |
| 11 | 8 |
Total income |
| 11 | 8 |
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Gain on investments held at fair value through profit or loss
|
| 574,987 | 196,049 |
Operating expenses |
| (252,929) | (338,973) |
Operating profit / (loss) from continuing activities |
| 322,069 | (142,916) |
Profit / (loss) before taxation from continuing activities |
| 322,069 | (142,916) |
Tax |
| - | - |
Profit / (loss) for the year from continuing activities |
| 322,069 | (142,916) |
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Profit / (loss) for the year and attributable to equity holders of the Company |
| 322,069 | (142,916) |
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Earnings per share |
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Equity holders |
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|
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Basic and diluted |
| 0.95p | (0.43)p |
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STATEMENT OF CHANGES IN EQUITY
| Share Capital £ | Share Premium £ | Capital Redemption Reserve £ | Retained Earnings £ | Total £ |
Balance at 1 November 2016 | 11,858,477 | 2,997,555 | 164,667 | (14,889,985) | 130,714 |
Issue of shares | 56,250 | 583,500 | - | - | 639,750 |
Loss and total comprehensive Income for the year |
- |
- |
- | (142,916) | (142,916) |
As at 31 October 2017 | 11,914,727 | 3,581,055 | 164,667 | (15,032,901) | 627,548 |
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Profit and total comprehensive profit for the year | - | - | - | 322,069 | 322,069 |
As at 31 October 2018 | 11,914,727 | 3,581,055 | 164,667 | (14,710,832) | 949,617 |
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STATEMENT OF FINANCIAL POSITION
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| 2018 £ | 2017 £ |
Non-current assets |
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Property, plant and equipment |
| - | - |
Investment in subsidiaries |
| 1 | 1 |
Total non-current assets |
| 1 | 1 |
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Current assets |
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Investments |
| 1,029,526 | 543,421 |
Trade and other receivables |
| 11,357 | 9,875 |
Cash and cash equivalents |
| 48,028 | 241,142 |
Total current assets |
| 1,088,911 | 794,438 |
Total assets |
| 1,088,912 | 794,439 |
Equity |
|
|
|
Issued share capital |
| 11,914,727 | 11,914,727 |
Share premium |
| 3,581,055 | 3,581,055 |
Retained earnings |
| (14,710,832) | (15,032,901) |
Capital redemption reserve |
| 164,667 | 164,667 |
Total equity |
| 949,617 | 627,548 |
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Liabilities |
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Current liabilities |
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Trade and other payables |
| 139,295 | 166,891 |
Total liabilities and current liabilities |
| 139,295 | 166,891 |
Total equity and liabilities |
| 1,088,912 | 794,439 |
| 1. OPERATING PROFIT / (LOSS) | |||
| 2018 £ | 2017 £ |
| |
Operating profit / (loss) from continuing activities is stated after charging: |
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|
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Depreciation of property, plant and equipment | - | 230 |
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Provision against VAT receivable | - | 68,157 |
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| 2. PROFIT / (LOSS) PER SHARE | |||
| 2018 £ | 2017 £ |
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Profit / (loss) attributable to the owners of the Company |
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Continuing Operations | 322,069
| (142,916)
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| 2018 No. of Shares | 2017 No. of shares |
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Weighted average number of shares for calculating basic loss per share | 33,900,805 | 33,521,353 |
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| 2018 Pence | 2017 Pence |
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Basic and diluted profit /(loss) per share |
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Continuing Operations - basic and diluted | 0.95 | (0.43) |
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Copies of the accounts will be posted to shareholders and will be available on the Company's website at www.piresinvestments.com
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Enquiries:
Pires Investments plc: +44 (0) 20 7580 7576
Peter Redmond, Director
Nominated Adviser: +44 (0) 20 7213 0880
Cairn Financial Advisers LLP
Liam Murray
Tony Rawlinson
Ludovico Lazzaretti
Broker: +44 (0) 20 7562 3351
Peterhouse Capital Limited
Duncan Vasey / Lucy Williams