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Papillon Holdings - Final Results

Mon, 30th Apr 2018 17:46

RNS Number : 6509M
Papillon Holdings PLC
30 April 2018
 

Papillon Holdings plc / Index: LSE / Epic: PPHP / Sector: Investment

 30 April 2018

Papillon Holdings plc ('Papillon' or 'the Company')

Final Results

 

Papillon Holdings plc, the London listed investment company, is pleased to announce its results for the year ended 31 December 2017.

 

Chairman's Report

Papillon Holdings plc ("the Company") is an investment company with the primary objective of undertaking a single acquisition of a target company, business or asset in the industrial or service sectors.

 

On 6 September 2017, almost a year after we had announced the potential acquisition of Myclubbetting.com Limited ("MCB"), the formal Sale and Purchase agreement ('SPA') with the directors and principal shareholders of MCB was terminated. As part of this termination, MCB agreed to refund all costs incurred by Papillon during the transaction process, including annual running costs of the public company beyond which would be reasonably expected, amounting to £350,000 of all costs in total, including repayment of a £50,000 loan made to MCB, of which £73,763 remains outstanding in total from MCB as of today's date. This sum, when received, will defray all essential costs of Papillon for the next 12 months.

 

Notwithstanding the foregoing, on 13 September 2017, we announced that we had signed a non-binding Heads of Terms to acquire the entire issued share capital of two companies in a cash and shares deal ('the Acquisition') of Phestor Limited ('Phestor'), and Greenway Activated Carbon Limited together with the Danish operating company, Phestor Denmark ('Greenway') which are developing operations in the very high growth sector of energy storage. These companies focus on ultra-supercapacitor development for energy storage and the development and sale of high quality active carbon production from biomass.

 

The Acquisition is subject and continues to be subject, inter alia, to the completion of due diligence, documentation and compliance with all regulatory requirements, including the Listing and Prospectus Rules and, as required, the Takeover Code. As the Acquisition will constitute a Reverse Takeover under the Listing Rules, the listing in the Company's ordinary shares was suspended, and continues to be suspended pending the publication of a prospectus and the application for the enlarged Company to have its Ordinary Shares readmitted to the Official List and to trading on the main market for listed securities of the London Stock Exchange.

 

The transaction to acquire Phestor has also been subject to delays beyond the directors' control and the directors are monitoring the transaction closely. With regard to the delays in these transactions the directors would like to take this opportunity to apologise to the shareholders for the lengthy time it has taken to complete a transaction in accordance with the primary objective of the company, and for the length of time the shares have been suspended and consequently the lack of liquidity in the company's shares. The director's interests are aligned with all shareholders and the completion of a successful transaction as soon as possible is of the highest priority for directors and shareholders alike. The directors would like to thank the shareholders for their ongoing patience and support.

 

The Directors of Papillon have issued a letter of comfort that any shortfall of working capital until completion of an acquisition will, if required, be made up by themselves personally.

 

James Longley

Director

30 April 2018

 

 

PAPILLON HOLDINGS PLC

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2017

 

 

 

 

 

 

 

Year ended 31 December 2017

 

Period to 31 December 2016

 

 

£'000

 

£'000

 

Notes

 

 

 

 

 

 

 

 

Continuing operations

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

300

 

-

Gross profit

 

300

 

-

 

 

 

 

 

 

Listing costs

5

(47)

 

(119)

Administrative expenses

5

(414)

 

(284)

Loss before taxation

 

(161)

 

(403)

Taxation

7

-

 

-

Loss and comprehensive loss for the period

 

(161)

 

(403)

 

 

 

 

 

 

 

 

 

 

Basic and diluted loss per share

8

(0.122p)

 

(0.574p)

 

 

 

 

 

 

 

 

 

 

 

Since there is no other comprehensive loss, the loss for the period is the same as the total comprehensive loss for the period attributable to the owners of the Company.

 

 

 

 

 

 

 

 

 

 

PAPILLON HOLDINGS PLC

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2017

 

 

           As at 31 December

 

 

2017

 

2016

 

Notes

£'000

 

£'000

Assets

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

Other receivables

10

124

 

268

Cash and cash equivalents

11

69

 

99

 

 

 

 

 

Total Assets

 

193

 

367

 

 

 

 

 

Equity and liabilities

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

12

23

 

36

 

 

 

 

 

Total Liabilities

 

23

 

36

 

 

 

 

 

Equity attributable to equity holders of the company

 

 

 

 

 

 

 

 

 

Share Capital - Ordinary shares

13

132

 

132

Share Premium account

13

602

 

602        

Profit and Loss Account

 

14

(564)

 

(403)

 

 

 

 

 

Total Equity

 

170

 

331

 

 

 

 

 

 

Total Equity and liabilities

 

193

 

367

 

 

 

 

 

 

 

 

 

 

PAPILLON HOLDINGS PLC

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31 December

 

 

 

31 December

 

 

 

2017

 

2016

 

Notes

 

 

 

 

 

 

 

£'000

 

£'000

Cash flows from operating activities

 

 

 

 

 

Operating loss

5

 

(161)

 

(403)

(Increase)/decrease in receivables

 

 

141

 

(68)

Increase/(decrease) in payables

 

 

(10)

 

36

 

 

 

 

 

 

Cash flow from operating activities

 

 

(30)

 

(435)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Issue of shares

13

 

-

 

534

Net cash from/(used in) financing activities

 

 

-

 

534

 

 

 

 

 

 

Net increase/decrease in cash and cash equivalents

 

 

(30)

 

99

Cash and cash equivalents at the beginning of the period

 

 

99

 

-

Cash and cash equivalents at end of period

 

 

69

 

99

 

 

 

 

 

 

Represented by:   Bank balances and cash

 

 

69

 

99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PAPILLON HOLDINGS PLC

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2017

 

 

 

 

 

 

 

Notes

Share capital

Share

premium

Accumulated deficit

Total

 equity

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

As at 31 December 2016

 

132

602

(403)

331

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the year

 

-

-

(161)

(161)

 

 

 

 

 

 

As at 31 December 2017

 

132

602

(564)

170

 

 

 

 

 

 

               

 

Accumulated deficit represents the cumulative loss of the company attributable to equity shareholders.

 

 

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

 

1       General information           

Papillon Holdings Plc ('the company') is an investment company incorporated in the United Kingdom. The address of the registered office is disclosed on the company information page at the front of the annual report.  The Company was incorporated and registered in England and Wales on 19 October 2015 as a private limited company and re-registered on 24 June 2016 as a public limited company when listed on London Stock Exchange.

 

 

2       Accounting policies

      

2.1   Basis of Accounting

 

This financial information has been prepared in accordance with International Financial Reporting Standards (IFRS), including IFRIC interpretations issued by the International Accounting Standards Board (IASB) as adopted by the European Union and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 

 

These policies have been consistently applied. 

 

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3. The preparation of financial statements in conformity with IFRSs requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Although these estimates are based on management's experience and knowledge of current events and actions, actual results may ultimately differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

 

a)    Going concern

 

These financial statements have been prepared on the assumption that the Company is a going concern. When assessing the foreseeable future, the Directors have looked at a period of at least twelve months from the date of approval of this report and the working capital requirements of the Company.

 

After making enquiries, the Directors firmly believe that together with their support the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

 

b)    New and amended standards adopted by the company

 

There are no IFRSs or IFRIC interpretations that are effective for the first time for the financial year beginning that would be expected to have a material impact on the Company.

 

c)    Standards, interpretations and amendments to published standards that are not yet effective

 

The following new standards, amendments to standards and interpretations have been issued, but are not effective for the financial period beginning 1 January 2017 and have not been early adopted. The Director anticipates that the adoption of these standard and the interpretations in future period will have no material impact on the financial statements of the Company.

 

 

Reference

Title

Summary

Application date of standard

Application date of Company

IFRS 9

Financial Instruments

Revised standard for accounting for financial instruments

Periods commencing on or after 1 January 2018

1 January 2018

IFRS 10

Consolidated financial statement

Amended by Investment Entities: Applying the Consolidation Exception

Periods commencing on or after 1 January 2016

1 January 2017

 

IFRS 11

Joint Arrangements

Amended by Accounting for Acquisitions of Interests in Joint Operations

Periods commencing on or after 1 January 2016

 

1 January 2017

 

IFRS 12

Disclosure of Interests in Other Entities

Amended by Investment Entities: Applying the Consolidation Exception

Periods commencing on or after 1 January 2016

1 January 2017

IFRS 14

Regulatory deferral accounts

Aims to enhance the comparability of financial reporting by entities subject to rate-regulations

Periods commencing on or after 1 January 2016

 

1 January 2017

IFRS 15

Revenue from contracts with customers

Specifies how and when to recognise revenue from contracts as well as requiring more informative and relevant disclosures

Periods commencing on or after 1 January 2018

1 January 2018

IFRS 16

Leases

IFRS 16 Leases published

Periods commencing on or after 1 January 2019

1 January 2019

IFRS 17

Insurance Contracts

IFRS 17 Insurance Contracts

Periods commencing on or after 1 January 2021

1 April 2021

IAS 16

Property, Plant and Equipment

Amended standard for accounting treatment for property, plant and equipment

Periods commencing on or after 1 January 2016

1 January 2017

IAS 27

Separate financial statement

Amended by Equity Method in Separate Financial Statements (Amendments to IAS 27)

Periods commencing on or after 1 January 2016

1 January 2017

IAS 28

Investments in Associates and Joint Ventures

Amended by Investment Entities: Applying the Consolidation Exception

Periods commencing on or after 1 January 2016

1 January 2017

 

 

2.2   Segmental reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the steering committee that makes strategic decisions. In the opinion of the director, the company has one class of business, being that of an investment Company. The company's primary reporting format is determined by the geographical segment according to the location of its establishments. There is currently only one geographic reporting segment, which is the UK. All costs are derived from the single segment.

 

 

2.3   Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

 

         Other receivables

Other receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.  Subsequent to the initial recognition, other receivables are measured at amortised cost less impairment losses for bad and doubtful debts.

 

Impairment losses for bad and doubtful debts are measured as the difference between the carrying amount of financial asset and the estimated future cash flows, discounted where the effect of discounting is material.

        

         Cash and cash equivalents

         Cash and cash equivalents comprised of cash at bank and in hand.

 

         Fair values

The carrying amounts of the financial assets and liabilities such as cash and cash equivalents, receivables and payables of the company at the statement of financial position date approximated their fair values, due to relatively short term nature of these financial instruments.

 

         Other payables

Other payables are initially recognised at fair value and thereafter stated in amortised cost.

 

2.4   Share capital

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

 

2.5   Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

 

There is no tax currently payable based on the Company making a loss for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income because it excludes items of income and expense that are taxable or deductible in other years, and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

 

Deferred tax is recognised on temporary differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences.

 

Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary differences arise from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

 

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

 

The carrying amount of deferred tax assets is reviewed at the end of the each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

 

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised. The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

 

Current or deferred tax for the year is recognised in profit or loss, except when it relates to items that are recognised in other comprehensive income or directly in equity, in which case the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

 

 

3       Critical accounting estimates and judgments

The company makes certain judgements and estimates which affect the reported amount of assets and liabilities. Critical judgements and the assumptions used in calculating estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

In the  process  of  applying  the  Company's  accounting  policies,  which  are  described  above,  the  Directors  do  not  believe  that  they  have  had  to  make any  assumptions  or  judgements  that  would have a material effect on the amounts recognised in the financial information.

 

 

4       Financial risk management

The Company's activities may expose it to some financial risks. The Company's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the company's financial performance.

 

a)  Liquidity risk

 

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The responsibility for liquidity risks management rest with the Board of Directors, which has established appropriate liquidity risk management framework for the management of the company's short term and long-term funding risks management requirements. During the period under review, the Company has not utilised any borrowing facilities. The Company manages liquidity risks by maintaining adequate reserves by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

 

b)  Capital risk

 

The Company takes great care to protect its capital investments. Significant due diligence is undertaken prior to making any investment. The investment is closely monitored.

 

 

5       Operating loss, expenses by nature and personnel

 

 

Year to 31 December 2017        £'000

 

Period from 19 October 2015 to

31 December 2016

 

 

 

 

£'000

Operating loss is stated after charging:

 

 

 

 

Directors Remuneration

 

24

 

20

Consulting and advisory fees

 

247

 

111

Premises

 

35

 

11

Legal and professional fees

 

7

 

78

Listing costs

 

47

 

119

Audit fees

 

9

 

5

Other administrative expenses

 

92

 

59

Total administrative expenses

 

461

 

403

 

 

 

6       Personnel

The average monthly number of employees during the period was two, being the directors.  

There were no benefits, emoluments or remuneration payable during the period for key management personnel other than the £24,000 disclosed in Note 5 and £120,000 paid in fees and disclosed in note 19 as a related party transaction.

 

 

7       Taxation

 

 

Year ended 31 December 2017

 

 

Period from 19 October 2015 to

31 December 2016

 

 

£'000

 

£'000

 

 

 

 

Total current tax

-

 

-

 

 

 

 

Factors affecting the tax charge for the period

 

 

 

Loss on ordinary activities before taxation

(161)

 

(403)

 

 

 

 

Loss on ordinary activities before taxation multiplied by standard rate of UK corporation tax of 19% (2016: 20%)

(30)

 

(80)

Effects of:

 

 

 

Non-deductible expenses

11

 

43

Tax losses carried forward

19

 

37

 

 

 

 

Current tax charge for the period

-

 

-

 

 

No liability to UK corporation tax arose on ordinary activities for the current period.

 

The company has estimated tax losses of £322,128 available for carry forward against future trading profits.

 

The tax losses have resulted in a deferred tax asset of approximately £64,000 (2016: £37,000) which has not been recognised in the financial statements due to the uncertainty of the recoverability of the amount.

 

 

8       Earnings per share

 

 

Year to 31 December 2017

   

Period from 19 October 2015 to 31 December 2016

 

 

 

 

 

Basic loss per share is calculated by dividing the loss attributable to equity shareholders by the weighted average number of ordinary shares in issue during the period:

 

 

 

 

 

 

 

 

 

Loss after tax attributable to equity holders of the company

 

 

(£160,993)

 

  (£402,742)

Weighted average number of ordinary shares

 

132,400,000

 

70,108,868

 

 

 

 

 

Basic and diluted loss per share

 

(0.122p)

 

 (0.574p)

 

 

 

9       Capital risk management

The Directors' objectives when managing capital  are to  safeguard  the  Company's  ability  to continue  as  a  going  concern  in  order  to  provide  returns  for  shareholders  and  benefits  for  other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. At the date of this financial information, the Company had been financed by the introduction of capital. In the future, the capital  structure  of  the  Company  is  expected  to  consist  of  borrowings  and  equity attributable to equity holders of the Company, comprising issued share capital and reserves.

 

 

10     Other receivables

 

 

 

2017

 

2016

 

 

£'000

 

£'000

 

 

 

 

 

Unpaid share capital

 

-

 

200

Other receivables

 

122

 

52

Prepayments

 

2

 

16

 

 

124

 

268

      

Details of unpaid share capital are disclosed in note 13 to the financial statements.             

 

 

11     Cash and cash equivalents

 

 

2017

 

2016

 

£'000

 

£'000

 

 

 

 

Cash at bank

69

 

99

 

69

 

99

 

 

 

12     Trade and other payables

 

 

 

2017

 

2016

 

 

£'000

 

£'000

 

 

 

 

 

Trade payables

 

12

 

4

Accruals

 

11

 

32

 

 

23

 

36

 

 

13     Share capital

 

2017

 

2016

 

£'000

 

£'000

Allotted, called up and fully paid

 

 

 

132,400,000 Ordinary shares of £0.001 each

132

 

132

 

132

 

132

 

The ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.

 

The Company has issued Placing warrants to the Placees to subscribe at 1.5 pence per Ordinary share for up to 41,200,000 Ordinary shares each on the basis of one Placing warrant for every two Placing shares subscribed for by each Placee. The Placing warrants are unlisted and are exercisable up to the second anniversary of Admission in whole or in a minimum aggregate amount of 50,000 Placing warrants.

 

The Company has issued Founder warrants to James Longley and Charles Tatnall, to subscribe at 1.25 pence per Ordinary share for up to 10 million Ordinary shares each, they also hold placee warrants of 5 million each.  The Founder warrants are unlisted and are exercisable up to the third anniversary of Admission in whole or in a minimum aggregate amount of 50,000 Founder warrants.

 

The Company has issued Broker warrants to JIM Nominees Limited to subscribe at the Placing Price for up to 10,300,000 Ordinary Shares. The Broker warrants are unlisted and are exercisable up to the fifth anniversary of Admission in whole or in a minimum aggregate amount of 50,000 Broker warrants.

 

 

14     Accumulated deficit

 

2017

 

2016

 

£'000

 

£'000

 

 

 

 

At start of period

(403)

 

               -

Loss for the period

(161)

 

(403)

 

 

 

 

As at 31 December

(564)

 

(403)

 

 

 

 

 

 

15     Contingent liabilities

The company has no contingent liabilities in respect of legal claims arising from the ordinary course of business.

 

 

16     Capital commitments

There was no capital expenditure contracted for at the end of the reporting period but not yet incurred.

 

 

17   Ultimate controlling party

As at 31 December 2017 the ultimate controlling parties of the Company are the Directors, Charles Tatnall and James Longley, who have a combined shareholding of more than 50% of the ordinary share capital of the company. 

 

 

18     Events after the reporting period

         There are no events after the reporting period.

 

 

19   Related party transactions

During the year ended 31 December 2017 the Directors received consultancy fees through the following companies:

 

Director

 

Company

 

 

2017   Fees  paid

 

  2016 Fees paid

 

 

 

 

 

£

 

£

James Longley

James Longley Limited

89,468

 

53,000

Charles Tatnall

Tatbels Limited

 

89,000

 

53,000

 

 

 

178,468

 

106,000

 

 

During the year ended 31 December 2017 the Directors were paid fees which amounted to £120,000 as follows:

 

Director

 

 

 

 

2017 Fees paid

 

2016 Fees paid

 

 

 

 

 

£

 

£

James Longley

 

60,000

 

60,000

Charles Tatnall

 

 

60,000

 

60,000

 

 

 

120,000

 

120,000

 

 

During the year ended 31 December 2017 the Company paid rent of £35,400 in respect of rental of offices. The head lease on these offices is owned by James Longley.

 

During the year ended 31 December 2017 the Company made a loan of £33,000 to Phestor Limited. James Longley resigned as director from Phestor Limited on 28 July 2017 before any loans were made. The foregoing loans to Phestor Limited were advanced to James Thorpe, director of Phestor Limited.

 

 

**ENDS**

 

For further information visit www.papillonholdingsplc.com or contact:

 

Charles Tatnall

Papillon Holdings plc

info@papillonholdingsplc.com

 

Financial Adviser

 

 

Jon Isaacs

Alfred Henry Corporate Finance Limited

jisaacs@alfredhenry.com +44 (0) 20 7309 2242

Financial PR

 

 

Isabel de Salis  

St Brides Partners Limited

isabel@stbridespartners.co.uk +44 (0) 20 7236 1177

 

 

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