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4 May 2012 07:00
VIRIDAS PLC
("VIRIDAS" OR THE "COMPANY")
UNAUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2011
Viridas, the AIM listed investing company (AIM:VIR), announces its preliminary results for the year, ended 31 December 2011.
For more information please contact:
Viridas Plc: +44 (0) 20 7580 7576
Nicholas Lee, Chairman
Nominated Adviser and Joint Broker: +44 (0) 20 7012 2000
Westhouse Securities
Antonio Bossi/Paul Gillam
Joint Broker: +44 (0) 20 7562 3351
Rivington Street Corporate Finance
Jon Levinson
EXECUTIVE CHAIRMAN'S STATEMENT
INTRODUCTION
During the year ended 31 December 2011, the Company was successfully repositioned as an investment company with a focus on the natural resources sector. Furthermore, significant progress has been made in the pursuit of this strategy.
FINANCIAL
The period under review partially relates to the Company's previous strategy and, accordingly, does not represent a complete period reflecting current operations. The results for this period comprised a loss after taxation of £393,726 (2010: loss £362,053). This period included overheads relating to the Company's previous operations, including one off costs of £226,000 being incurred by the Company prior to me joining the board. This figure is therefore not representative of the current overhead base of the Company.
The net assets of the Company as at 31 December 2011 were £2,168,091 (2010: £4,044) representing a significant uplift on the prior year figure. The Company's principal investments at the year end comprised holdings in Leed Resources plc and Brady Exploration plc. The year end figure for net assets, however, does not reflect the very substantial additional gain of around £1.5 million before costs and taxes achieved from the sale of the majority of the Company's investment in Leed Resources plc in January 2012.
At 31 December 2011, the Company had cash balances of £375,659 (2010: £42,461). Again, as a result of the sale of the majority of the Company's investment in Leed Resources plc in January 2012, this balance increased very significantly to around £3.2 million.
The key performance indicators are set out below.
COMPANY STATISTICS | 2011 | 2010 |
Net asset value | £2,168,091 | £4,044 |
Net asset value - fully diluted per share | 0.355p | 0.012p |
Closing share price | 0.50p | 2.0p |
Share price premium to net asset value | 41% | N/A |
Market capitalisation | £3,054,000 | £657,000 |
OUTLOOK
In terms of strategy, we are constantly reviewing new opportunities in the natural resources sector and are seeking situations that offer scope for high returns against the background of a sensible level of risk. The Company is seeking to make relatively significant investments with on-going involvement and influence either by way of board representation or similar, with the principal purpose of monitoring and supporting the investment. Whilst we see many opportunities only a few meet our investment criteria. In the current market environment, cash is particularly valuable and so we are very focused on investing it wisely. Given the success of the Company's strategy to date, we are extremely well placed to take advantage of interesting opportunities as they arise.
I firmly believe that shareholders can look forward to a very exciting and financially rewarding future for their Company.
Nicholas Lee
Executive Chairman
UNAUDITED GROUP INCOME STATEMENT | |||
FOR THE YEAR ENDED 31 DECMBER 2011 | |||
2011 | 2010 | ||
Note | £ | £ | |
Continuing operations: | |||
Administrative expenses | (166,423) | (471,826) | |
Compensation payments to directors | (226,000) | - | |
Operating loss | (392,423) | (471,826) | |
Finance income | 876 | 407 | |
Loss before taxation | (391,547) | (471,419) | |
Taxation | 1,391 | - | |
Loss for the year from continuing operations | (390,156) | (471,419) | |
(Loss)/profit for the year from discontinued operations | (3,570) |
109,366 | |
Loss for the financial year attributable to equity holders of the parent | (393,726) | (362,053) | |
(Loss)/earnings per share | 2 | ||
- Basic and diluted continuing operations | (0.11p) | (1.43p) | |
- Basic and diluted discontinued operations | 0.00p | 0.33p | |
- Total basic and diluted | (0.11p) | (1.10p) |
UNAUDITED GROUP STATEMENT OF COMPREHENSIVE EXPENSE
FOR THE YEAR ENDED 31 DECEMBER 2011
2011 | 2010 | ||
£ | £ | ||
Loss for the financial year | (393,726) | (362,053) | |
Market value adjustment to investments | 1,085,573 | - | |
Exchange differences on translating foreign operations | - | (10,753) | |
Total comprehensive income/(expense) for the year | 691,847 | (372,806) |
UNAUDITED GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2011
Called up share capital | Share premium account | Investment reserve |
Other reserves (note 17) |
Retained deficit |
Total equity | |
£ | £ | £ | £ | £ | ||
Balance at 1 January 2010 | 3,285,796 | 1,852,339 | - | 145,543 | (4,799,038) | 484,640 |
Loss for the year | - | - | - | - | (362,053) | (362,053) |
Other comprehensive expense | ||||||
Exchange differences on translating foreign operations |
- |
- | - |
(10,753) |
- |
(10,753) |
Total comprehensive expense for the year |
- |
- | - |
(10,753) |
(362,053) |
(372,806) |
Recognition of foreign exchange gains on discontinued activities (note 4) |
- |
- | - |
(107,790) |
- |
(107,790) |
Balance at 31 December 2010 | 3,285,796 | 1,852,339 | - | 27,000 | (5,161,091) | 4,044 |
Loss for the year | - | - | - | - | (393,726) | (393,726) |
Other comprehensive income | ||||||
Market value adjustment to investments | - | - | 1,085,573 | - | - | 1,085,573 |
Total comprehensive income/(expense) for the year | - | - | 1,085,573 | - | (393,726) | 691,847 |
Issue of share capital | 545,000 | 1,005,000 | - | - | - | 1,550,000 |
Share issue costs | - | (82,490) | - | - | - | (82,490) |
Share based payment costs | - | - | - | 4,690 | - | 4,690 |
Transactions with owners | 545,000 | 922,510 | - | 4,690 | - | 1,472,200 |
Balance at 31 December 2011 | 3,830,796 | 2,774,849 | 1,085,573 | 31,690 | (5,554,817) | 2,168,091 |
UNAUDITED GROUP STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2011 | |||
2011 | 2010 | ||
Note | £ | £ | |
Non-current assets | |||
Investments | 1,760,086 | - | |
Current assets | |||
Trade and other receivables | 85,170 | 8,578 | |
Cash and cash equivalents | 375,659 | 42,461 | |
460,829 | 51,039 | ||
Total Assets | 2,220,915 | 51,039 | |
Current liabilities | |||
Trade and other payables | 52,824 | 46,995 | |
52,824 | 46,995 | ||
Net assets | 2,168,091 | 4,044 | |
Equity | |||
Share capital | 3 | 3,830,796 | 3,285,796 |
Share premium account | 2,774,849 | 1,852,339 | |
Capital redemption reserve | 27,000 | 27,000 | |
Investment reserve | 1,085,573 | - | |
Share option reserve | 4,690 | - | |
Retained losses | (5,554,817) | (5,161,091) | |
Total equity | 2,168,091 | 4,044 | |
UNAUDITED GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2011 | |||
2011 | 2010 | ||
£ | £ | ||
Cash flows from operating activities | |||
Loss before taxation - continuing operations | (391,547) | (471,419) | |
Profit before taxation - discontinued operations | (3,570) | 2,306 | |
Share based payment expense | 4,690 | - | |
Provision for impairment of investments | - | - | |
Dividend from subsidiary | - | - | |
Interest receivable | (876) | (1,323) | |
Interest payable | - | - | |
Decrease in trade and other receivables | (76,592) | 21,118 | |
Decrease in trade and other payables | 5,829 | (65,857) | |
Foreign exchange movement | - | (10,753) | |
(462,066) | (525,928) | ||
Interest paid | - | - | |
Tax received/(paid) | 1,391 | (90,199) | |
Net cash used by operating activities | (460,675) | (616,127) | |
Cash flows from investing activities | |||
Purchase of investments | (674,513) | ||
Dividend from subsidiary | - | - | |
Interest received | 876 | 1,323 | |
Net cash from investing activities | (673,637) | 1,323 | |
Cash flows from financing activities | |||
Issue of shares | 1,550,000 | - | |
Share issue expenses | (82,490) | - | |
Net cash generated from financing activities | 1,467,510 | - | |
Net (decrease)/increase in cash and cash equivalents | 333,198 | (614,804) | |
Cash and cash equivalents at the beginning of the year | 42,461 | 657,265 | |
Cash and cash equivalents at the end of the year | 375,659 | 42,461 | |
NOTES
1 | BASIS OF PREPARATION |
| ||
The financial information set out in this announcement has not been audited and does not constitute the statutory accounts of the Group (within the meaning of section 435 of the Companies Act 2006) for the year ended 31 December 2011. Whilst the financial information included in this preliminary announcement has been computed in accordance with International Financial Reporting Standards (IFRS), this announcement in itself does not contain sufficient information to comply with IFRS. |
| |||
GOING CONCERN The directors have, at the time of approving the financial statements, a reasonable expectation that the Group has adequate resources to continue in existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. |
| |||
2 | LOSS PER SHARE | |||
The basic earnings per share is based on the profit/(loss) for the year divided by the weighted average number of shares in issue during the year. The weighted average number of ordinary shares for the year ended 31 December 2011 assumes that all shares have been included in the computation based on the weighted average number of days since issue. | ||||
2011 | 2010 | |||
£ | £ | |||
Profit/(loss) attributable to equity holders of the Group: | ||||
Loss from continuing operations | (390,156) | (471,419) | ||
(Loss)/profit from discontinued operations | (3,570) | 109,366 | ||
Loss for the year attributable to equity holders of the Group | (393,726) | (362,053) | ||
Weighted average number of ordinary shares in issue | 350,912,751 | 32,857,956 | ||
Earnings per share attributable to equity holders of the Group: | ||||
Loss per share from continuing operations | (0.11p) | (1.43p) | ||
(Loss)/profit from discontinued operations | 0.00p | 0.33p | ||
Loss per share for the year | (0.11p) | (1.10p) | ||
The share options in issue are anti-dilutive in respect of the basic loss per share calculation and have therefore not been included. | ||||
3 | SHARE CAPITAL | ||||
Number of shares | Share capital | ||||
Deferred | Ordinary | Deferred | Ordinary | ||
£ | £ | ||||
Issued and fully paid | |||||
Balance at 1 January 2010 | 24,357,956 | 2,435,796 | |||
Shares issued for cash | 8,500,000 | 850,000 | |||
Balance at 31 December 2010 | - | 32,857,956 | - | 3,285,796 | |
Share reorganisation: | |||||
Deferred shares of 9.9p each | 32,857,956 | - | 3,252,938 | - | |
Ordinary shares of 0.1p each | - | 32,857,956 | - | 32,858 | |
Shares issued for cash | - | 545,000,000 | - | 545,000 | |
Balance at 31 December 2011 | 32,857,956 | 577,857,956 | 3,252,938 | 577,858 | |
On 10 May 2011 the shareholders approved a reorganisation of the Company's share capital, whereby each ordinary share of 10p was split into one ordinary share of 0.1p and one deferred share of 9.9p. The deferred shares have restricted rights such that they have no economic value. On 31 March 2011 the Company raised additional capital through the issue of £1,050,000 of Convertible Loan Notes. Following the approval of the reorganisation of the share capital on 10 May 2011 the Convertible Loan Notes were converted at 0.25p per share into 420,000,000 ordinary shares of 0.1p each. On 18 July 2011 the Company issued 125,000,000 ordinary shares for cash at 0.4p per share raising £500,000 before expenses. | |||||
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