Last checked at 23 May 2014 07:00
VERDES MANAGEMENT PLC
INTERIM RESULTS
EMBARGOED FOR 700AM ON FRIDAY 23 MAY 2014
Verdes Management Plc ("Verdes" or "the Company") announces its half year results for the period ended 31 March 2014.
Financial
In the half year to 31 March 2014 the Company reported turnover of £NIL (2013: £NIL) and a loss before tax of £324,280 (2013: Loss £162,546).
Strategy
I joined the board of Verdes Management plc on 26 March 2014 as non-executive chairman. My thanks go to my predecessor as chairman, Daan van den Noort, and also to non-executive director Joep van den Aker, both of whom resigned on 26 March 2014.
The six months to 31 March 2014 were a period of change for the Company, the key events having been detailed in the former chairman's statement which was published on 19 March 2014 as part of the Annual Report & Accounts. From September 2013 the Company embarked on a project to develop as a strategic investment company. However, the financing associated with this project failed to arrive and therefore the Company was unable to pursue this endeavour further, resulting in suspension of trading of the Company's shares on AIM on 30 January 2014.
Abortive and one-off costs in the six months in relation to this unsuccessful project amounted to approximately £256,000.
On 4 March 2014 the Company announced its new investing policy, Mr David Breith's purchase of a significant shareholding and also the placing of new shares which raised £750,000 in working capital. This enabled the restoration of admission of the Company's shares to AIM with the previous financial uncertainty lifted.
Prior to Mr David Breith's investment in the Company and the private placing detailed above, the Board was able to secure voluntary reductions in the amounts due to a number of its creditors.
Subsequently, agreement was also reached with our broker SI Capital to cancel its previous warrant agreement with the Company and to replace it with a new agreement more closely aligned with the Company's current position. I would like to thank all our creditors and SI Capital for their support during this period.
Furthermore I am pleased to announce that on 20 March 2014 the Company gained approval for its new investing policy. On 9 May 2014 it also welcomed Mr David Mends to the Board as a non-executive director.
Outlook
At 31 March 2014 the Company had £400,000 of cash available leaving it well positioned to embark on its investing strategy when a suitable opportunity has been identified.
Verdes Management plc
Statement of Comprehensive Income
| Note | 6 months ended 31 March 2014 |
| 6 months ended 31 March 2013 |
| Year ended 30 September 2013 |
|
| (unaudited) |
| (unaudited) |
| (audited) |
|
| £ |
| £ |
| £ |
|
|
|
|
|
|
|
Revenue |
| - |
| - |
| - |
|
|
|
|
|
|
|
Cost of Sales |
| - |
| - |
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
| - |
| - |
| - |
Administrative expenses |
| (324,316) |
| (162,968) |
| (412,968) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss) |
| (324,316) |
| (162,968) |
| (412,968) |
|
|
|
|
|
|
|
Finance income |
| 319 |
| 422 |
| 422 |
Finance costs |
| (283) |
| - |
| (500) |
|
|
|
|
|
|
|
(Loss) on ordinary activities before taxation |
| (324,280) |
| (162,546) |
| (412,968) |
|
|
|
|
|
|
|
Income tax expense |
| - |
| - |
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) attributable to shareholders of the company |
| (324,280) |
| (162,546) |
| (412,968) |
|
|
|
|
|
|
|
(Loss) per share attributable to the equity holders of the company: |
|
|
|
|
|
|
Basic (loss) per ordinary share | 3. | (0.04 pence) |
| (0.03 pence) |
| (0.07 pence) |
|
|
|
|
|
|
|
Diluted (loss) per ordinary share | 3. | (0.04 pence) |
| (0.03 pence) |
| (0.07 pence) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Verdes Management plc
Statement of Financial Position
|
| 31 March 2014 |
| 31 March 2013 |
| 30 September 2013 |
|
| (unaudited) |
| (unaudited) |
| (audited) |
|
| £ |
| £ |
| £ |
Assets |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Property, plant and equipment |
| 540 |
| 1,121 |
| 836 |
Investments |
| - |
| 500 |
| - |
|
|
|
|
|
|
|
|
| 540 |
| 1,621 |
| 836 |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Trade and other receivables |
| 41,224 |
| 144,825 |
| 47,028 |
Cash and cash equivalents |
| 400,100 |
| 103,352 |
| 37,619 |
|
|
|
|
|
|
|
|
| 441,324 |
| 248,177 |
| 84,647 |
|
|
|
|
|
|
|
Total assets |
| 441,864 |
| 249,798 |
| 85,483 |
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Trade and other payables |
| 91,882 |
| 162,535 |
| 248,721 |
|
|
|
|
|
|
|
Total liabilities |
| 91,882 |
| 162,535 |
| 248,721 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Called-up equity share capital |
| 3,365,791 |
| 3,333,063 |
| 3,333,063 |
Share premium account |
| 2,925,448 |
| 2,120,676 |
| 2,120,676 |
Accumulated losses |
| (5,941,257) |
| (5,366,476) |
| (5,616,977) |
|
|
|
|
|
|
|
Total Equity |
| 349,982 |
| 87,263 |
| (163,238) |
|
|
|
|
|
|
|
Total Liabilities and Equity |
| 441,864 |
| 249,798 |
| 85,483 |
|
|
|
|
|
|
|
Verdes Management plc
Statement of Changes in Equity as at 31st March 2014
|
| Share Capital |
| Share Premium |
| Retained Earnings |
| Total Equity |
|
|
|
|
|
|
|
|
|
|
| £ |
| £ |
| £ |
| £ |
|
|
|
|
|
|
|
|
|
Balance at 1 October 2012 |
| 3,158,063 |
| 2,120,676 |
| (5,203,930) |
| 74,809 |
|
|
|
|
|
|
|
|
|
Issue of shares |
| 175,000 |
| - |
| - |
| 175,000 |
|
|
|
|
|
|
|
|
|
Share issue costs |
| - |
| - |
| - |
| - |
|
|
|
|
|
|
|
|
|
Loss for period |
| - |
| - |
| (162,546) |
| (162,546) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 March 2013 |
| 3,333,063 |
| 2,120,676 |
| (5,366,476) |
| 87,263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for period |
| - |
| - |
| (250,501) |
| (250,501) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 September 2013 |
| 3,333,063 |
| 2,120,676 |
| (5,616,977) |
| (163,238) |
|
|
|
|
|
|
|
|
|
Issue of shares |
| 32,727 |
| 842,273 |
| - |
| 875,000 |
|
|
|
|
|
|
|
|
|
Share issue costs |
| - |
| (37,500) |
| - |
| (37,500) |
|
|
|
|
|
|
|
|
|
Loss for period |
| - |
| - |
| (324,280) |
| (324,280) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 March 2014 |
| 3,365,790 |
| 2,925,449 |
| (5,941,257) |
| 349,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Verdes Management plc
Statement of Cash Flows
| 6 months ended 31 March 2014 |
| 6 months ended 31 March 2013 |
| Year ended 30 September 2013 |
| (unaudited) |
| (unaudited) |
| (audited) |
| £ |
| £ |
| £ |
|
|
|
|
|
|
Net cash used in operating activities | (350,055) |
| (200,266) |
| (265,999) |
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
Interest paid | (283) |
| - |
| - |
Interest received | 319 |
| 422 |
| 422 |
|
|
|
|
|
|
Net cash flow before financing activities | (350,019) |
| (199,844) |
| (265,577) |
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Net proceeds from issue of equity shares | 712,500 |
| 175,000 |
| 175,000 |
|
|
|
|
|
|
Net cash from financing activities | 712,500 |
| 175,000 |
| 175,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents | 362,481 |
| (24,844) |
| (90,577) |
|
|
|
|
|
|
Opening net cash and cash equivalents | 37,619 |
| 128,196 |
| 128,196 |
|
|
|
|
|
|
Closing net cash and cash equivalents | 400,100 |
| 103,352 |
| 37,619 |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating loss to net cash (outflow)/inflow from operating activities | 6 months ended 31 March 2014 |
| 6 months ended 31 March 2013 |
| Year ended 30 September 2013 |
| (unaudited) |
| (unaudited) |
| (audited) |
| £ |
| £ |
| £ |
|
|
|
|
|
|
Operating (Loss) from continuing activities | (324,316) |
| (162,968) |
| (412,968) |
Depreciation | 296 |
| 297 |
| 582 |
|
|
|
|
|
|
Operating cash flows before movements in working capital | (324,020) |
| (162,671) |
| (412,386) |
|
|
|
|
|
|
Decrease/(increase) in receivables | 5,804 |
| (128,562) |
| (30,764) |
Increase/(decrease) in payables | (31,839) |
| 90,967 |
| 177,151 |
|
|
|
|
|
|
Net movement in working capital | (26,035) |
| (37,595) |
| 146,387 |
|
|
|
|
|
|
Net movement in cash flow | (350,055) |
| (200,266) |
| (265,999) |
|
|
|
|
|
|
Income taxes paid | - |
| - |
| - |
|
|
|
|
|
|
Net cash (outflow)/inflow from operating activities | (350,055) |
| (200,266) |
| (265,999) |
|
|
|
|
|
|
Notes to the unaudited financial statements
1. Basis of preparation
The financial information included in this report does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The interim financial statements for the six months ended 31 March 2014 have been prepared under applicable International Financial Reporting Standards adopted by the European Union ("IFRS"). The financial information for the period ended 30 September 2013 has been extracted from the statutory accounts for that period. The auditors' report on the full statutory accounts for the period ended 30 September 2013 included an Emphasis of Matter paragraph in regard to Going Concern and Subsequent Events. The financial information for the six months ended 31 March 2013 and 31 March 2014 has not been audited.
2. Principal Accounting Policies
The principal accounting policies adopted are consistent with those of the annual financial statements for the year ended 30 September 2013 and are those expected to be applied for the year ending 30 September 2014.
3. Earnings/Loss per Share
The earnings per ordinary share have been calculated on the loss on ordinary activities after taxation of -£324,280 (31 March 2013: -£162,546, 30 September 2013: -£413,046) using the weighted average number of ordinary shares in issue during the period being 744,313,104(31 March 2013: 598,395,022, 30 September 2013:632,631,421). The weighted average number of diluted ordinary shares in issue during the period was 744,313,104(31 March 2013: 598,395,022, 30 September 2013: 632,631,421).
4. Availability
Copies of this Interim Report are available from the Company Secretary, Third Floor, Cardinal House, 39/40 Albemarle Street, London W1S 4TE and on the Company's website www.verdes-group.com
For further information please contact:
Verdes Management PLC
Gillian Leates - Chairman 0208 133 2782
SPARK Advisory Partners Limited
Nominated Adviser
Neil Baldwin 0113 370 8974
Mark Brady
SI Capital Limited
Broker
Andy Thacker 01483 413510
Nick Emerson