Last checked at 23 Jun 2011 07:00
Viridas plc
("Viridas" or the "Company")
Preliminary results for the year ended 31 December 2010
Viridas, the AIM listed investing company (AIM:VIR), announces its preliminary results for the year ended 31 December 2010.
For more information please contact:
Viridas Plc: +44 (0)7973 616952
Nicholas Lee, Chairman
Nominated Adviser and Joint Broker: +44 (0) 20 7012 2000
Arbuthnot Securities
Antonio Bossi/Paul Gillam
Joint Broker: +44 (0) 20 7562 3351
Rivington Street Corporate Finance
Peter Greensmith
Chairman's statement
Introduction
The year ended 31 December 2010 was a difficult year for the Company as it became clear that its strategy to develop a commercial biofuel operation in Brazil was becoming increasingly difficult to implement, principally due to the lack of clarity on the Government's support for the use of biomass in the UK meant it was very difficult to raise the necessary finance from investors.
Consequently, and with very limited funding remaining available within the Company, in early 2011 it was decided to reposition the Company to focus on opportunities within the natural resources sector and raise funds for this purpose. Against this background, the Company raised £1,050,000 principally from new investors via a placing to enable the Company to fund its new strategy in the medium term. On 10 May 2011, shareholders also approved the Company's new investing strategy and a restructuring of the Company's share capital.
Following the adoption of this new strategy, the majority of the Company's directors have stepped down and I have been appointed as Chairman. The Company will make new appointments to the Board, as appropriate, consistent with this new strategic direction.
Financials
The period under review relates to the Company's previous strategy and, accordingly, does not reflect the current operations of the Company. The results for this period comprised a loss after taxation of £362,053 (2009: loss £565,676). At 31 December 2010, the Company had cash balances of £42,461.
Outlook
The Board believes that the Company is well placed to progress its new strategy within the natural resources sector and a number of interesting opportunities have already been identified and are currently under assessment. The Board is confident that there is considerable opportunity to develop shareholder value in the medium term.
I would like to take this opportunity to thank the team and shareholders for their support during this transitional time for the Company.
Nicholas Lee
Chairman
Consolidated income statement
For the year ended 31 December 2010
Note | Year ended 31 December 2010 | Year ended 31 December 2009 | |
£ | £ | ||
Operating loss | (471,826) | (681,670)
| |
Finance income | 407 | - | |
Finance expense | - | (535) | |
-------------- | -------------- | ||
Loss before taxation | (471,419) | (682,205) | |
Taxation | - | - | |
-------------- | -------------- | ||
Loss for the year from continuing operations | 2 | (471,419)
| (682,205) |
Profit for the year from discontinued operations
Loss for the financial year attributable to equity holders of the parent | 2 | 109,366 --------------- (362,053) --------------- | 116,529 --------------- (565,676) -------------- |
(Loss)/earnings per share | |||
- Basic and diluted continuing operations - Basic and diluted discontinued operations | 3 3 | (1.43p) 0.33p | (2.69p) 0.46p |
-Total basic and diluted | 3 | (1.10p) | (2.23p) |
Consolidated Statement of Comprehensive Expense
Loss for the financial year | (362,053)
| (565,676)
| |
Exchange differences on translating foreign operations
Total comprehensive expense for the year
| (10,753) --------------- (372,806) --------------- | (50,657) --------------- (616,333) -------------- |
Consolidated statement of changes in equity
For the year ended 31 December 2010
Share Capital
| Share Premium
| Capital Redemption Reserve
| Translation Reserve
| Retained Earnings
| Total Equity
| |
Balance at 1 January 2009 | 2,435,796 | 2,007,339 | 27,000 | 169,200 | (4,233,362) | 405,973 |
Issue of share capital
| 850,000 | - | - | - | - | 850,000 |
Cost of shares issued | - | (155,000) | - | - | - | (155,000)
|
Transactions with owners | ------------ 850,000 | -------------- (155,000) | ------------ | ------------- - | ------------- - | -------------- 695,000 |
| ------------- | ------------- | -------------- | -------------- | ------------- | --------------
|
Loss for the financial year
| - | - | - | - | (565,676) | (565,676) |
Other comprehensive expense | ||||||
Exchange differences on translating foreign operations |
- |
- |
- |
(50,657) |
- |
(50,657) |
------------- | ------------- | --------------- | -------------- | --------------- | -------------- | |
Total comprehensive expense for the year | - | - | - | (50,657) | (565,676) | (616,333) |
-------------- | -------------- | -------------- | -------------- | --------------- | -------------- | |
Balance at 31 December 2009 | 3,285,796 | 1,852,339 | 27,000 | 118,543 | (4,799,038) | 484,640 |
Loss for the financial 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 2) |
- |
- |
- |
(107,790) |
- |
(107,790) |
-------------- | -------------- | ------------- | ------------- | --------------- | -------------- | |
Balance at 31 December 2010 | 3,285,796 | 1,852,339 | 27,000 | - | (5,161,091) | 4,044 |
======== | ======== | ======= | ======= | ========= | ======== |
Consolidated statement of financial position
As at 31 December 2010
2010 | 2009 | ||
£ | £ | ||
Current assets | |||
Trade and other receivables | 8,578 | 29,696 | |
Cash and cash equivalents | 42,461 | 657,265 | |
------------ | ------------- | ||
51,039 | 686,961 | ||
------------ | ------------- | ||
Total Assets | 51,039 | 686,961 | |
------------ | ------------- | ||
Current liabilities | |||
Trade and other payables | 46,995 | 112,852 | |
Income tax payable | - | 89,469 | |
------------ | ------------- | ||
46,995 | 202,321 | ||
------------ | ------------ | ||
------------ | ------------ | ||
Net assets | 4,044 | 484,640 | |
======= | ======= | ||
EQUITY | |||
Share capital | 3,285,796 | 3,285,796 | |
Share premium account | 1,852,339 | 1,852,339 | |
Capital redemption reserve | 27,000 | 27,000 | |
Translation reserve | - | 118,543 | |
Retained deficit | (5,161,091) | (4,799,038) | |
--------------- | --------------- | ||
Total equity | 4,044 | 484,640 | |
--------------- | --------------- |
Consolidated statement of cash flows
For the year ended 31 December 2010
Note | 2010 | 2009 | |
£ | £ | ||
Cash flows from operating activities | |||
Loss before taxation - continuing operations | (471,419) | (682,205) | |
Profit before taxation - discontinued operations | 2,306 | 119,368 | |
Depreciation of property, plant and equipment | - | 3,679 | |
Interest receivable | (1,323) | (2,034) | |
Interest payable | - | 2,129 | |
Decrease in trade and other receivable | 21,118 | 248,277 | |
Decrease in trade and other payables | (65,857) | (80,592) | |
Foreign exchange movement | (10,753) | (50,657) | |
------------- | ------------- | ||
(525,928) | (442,035) | ||
Interest paid | - | (2,129) | |
Tax paid | (90,199) | 36,821 | |
------------- | ------------- | ||
Net cash used by operating activities | (616,127) | (407,343) | |
------------- | ------------- | ||
Cash flows from investing activities | |||
Interest received | 1,323 | 2,034 | |
------------- | ------------- | ||
Net cash from investing activities | 1,323 | 2,034 | |
------------- | ------------- | ||
Cash flows from financing activities | |||
Issue of shares - net proceeds | - | 695,000 | |
Repayment of loans | - | (384) | |
Repayment of finance leases | - | (3,220) | |
------------- | ------------- | ||
Net cash generated from financing activities | -
| 691,396 | |
Net (decrease)/ increase in cash and cash equivalents | (614,804) | 286,087 | |
Cash and cash equivalents at the beginning of the year | 657,265 | 371,178 | |
------------- | ------------- | ||
Cash and cash equivalents at the end of the year | 42,461 | 657,265 | |
------------- | ------------- |
Notes
1. Basis of preparation
The financial information set out in this announcement 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 2010. The auditors reported on those accounts and their report was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. The statutory accounts for the year ended 31 December 2010 will be delivered to the registrar of Companies following the Company's Annual General Meeting.
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 financial statements have been prepared on a going concern basis.
Overheads have been significantly reduced and comprise only the remuneration of the Directors, establishment costs, adviser costs and listing fees.
The company has raised £1,050,000 in additional funding in May 2011 which is sufficient to run the company and to pursue opportunities in line with its new strategy of seeking investments in the natural resources sector.
The Directors therefore believe that the going concern basis is appropriate for the preparation of the financial statements as they are in a position to meet all its liabilities as they fall due.
2. Discontinued operations
During the prior year, the previous business activities relating to distribution of underwear and Ninaclip products were discontinued. The income and expenditure account and cash flows have been split between continuing and discontinued activities in accordance with IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations".
Continuing | Discontinued | Total | Continuing | Discontinued | Total | |
2010 | 2010 | 2010 | 2009 | 2009 | 2009 | |
£ | £ | £ | £ | £ | £ | |
Administrative expenses | (471,826) | - | (471,826) | (681,670) | - | (681,670) |
Other income | - | 1,390 | 1,390 | - | 118,928 | 118,928 |
Operating (loss)/profit | (471,826) | 1,390 | (470,436) | (681,670) | 118,928 | (562,742) |
Net finance income/(expenses) |
407 | 916 | 1,323 | (535) | 440 | (95) |
(Loss)/profit before taxation |
(471,419) |
2,306 |
(469,113) |
(682,205) |
119,368 |
(562,837) |
Taxation | - | (730) | (730) | - | (2,839) | (2,839) |
|
|
|
|
|
| |
(Loss)/profit after taxation |
(471,419) |
1,576 |
(469,843) |
(682,205) |
116,529 |
(565,676) |
Recognition of foreign exchange gains on discontinued foreign operations |
- |
107,790 |
107,790 |
- |
- |
- |
(Loss)/profit for the year | (471,419) | 109,366 | (362,053) | (682,205) | 116,529 | (565,676) |
Net cash used by operating activities | (616,787) | 660 | (616,127) | (863,347) | 456,004 | (407,343) |
Net cash from investing activities | 407 | 916 | 1,323 | - | 2,034 | 2,034 |
Net cash generated from financing activities | - | - | - | 691,396 | - | 691,386 |
3. Loss per share
The basic loss per share is based on the loss of £ 362,053 (2009: £565,676) and 32,857,796 (2009:25,336,038) ordinary shares of 10p each, being the weighted average number of shares in issue during the year. The weighted average number of ordinary shares for the year ended 31 December 2010 assumes that all shares have been included in the computation based on the weighted average number of days since issue.
2010 | 2009 | ||
£ | £ | ||
Loss attributable to equity holders of the Group | (362,053) | (565,676) | |
Weighted average number of ordinary shares in issue | 32,857,956 | 25,336,038 | |
Basic & diluted loss per share (pence) | (1.10) | (2.23) | |
---------------- | ---------------- |
The share options in issue are anti-dilutive in respect of the basic loss per share calculation and have therefore not been included.
On the same basis as above the loss per share for continuing activities is 1.43 pence (2009: 2.69 pence) and the profit per share for discontinued activities is 0.33 pence (2009: profit per share of 0.46 pence).
4. Annual Report and Notice of Annual general Meeting
The annual report and the notice of annual general meeting will be mailed to shareholders on or around 24th June 2011. Copies will be available after that date from: The Secretary, Viridas plc, 31 Harley Street, London W16 9QS.
The Annual General Meeting will be held at Arbuthnot House, 20 Ropemaker Street, London EC2Y 9AR on 26th July 2011 at 11.00 a.m.