30 Jun 2009 10:30
Red Leopard Holdings Plc (the "Company") Final Results Chairman's Statement
I am pleased to present the financial statements for the year to 31 December 2008 for Red Leopard Holdings Plc and its wholly owned subsidiaries, Harrell Hotels (Europe) Limited and Red Leopard Management Limited (the "Group").
Net deficit on equity of the Group as at 31 December 2008 was £239,776 (2007: equity £232,450) and, with no revenue generated from operations, the loss for the year attributable to the equity holders of the parent was £532,228 (2007 £ 213,627).
As at 31 December 2008, net cash for the Group was £189,667.
The Board's decision towards the end of 2007 was to focus on residential property developments, a strategy which it pursued through a joint development agreement with First Broughton Group. Unfortunately, this strategy focused on the development of residential properties aimed at the mid-market consumer, a target market that was severely affected by the economic downturn during 2008.
While the outcome from this investment was disappointing, the reality of the situation could have been much worse. Through the joint development agreement we located several sites, conducted preliminary due diligence (including land surveys and local authority searches) and the evaluation of the sites looked promising. However, each of these sites was under option subject to finance and, as occurred to most property developers last year, we were unable to secure finance due to the drying up of liquidity. In hindsight, this has worked in our favour as the specific sites we held under option have continued to decline in value. .
In order to finance these operations the company invested £336,613 into site investigation, research, council planning and working capital. We are unlikely to retrieve this in the near term if at all. The Board continues to monitor the residential development market but would not be investing any further funds until there was significant improvement in this segment.
The Board is now actively investigating and reviewing several opportunities including investments in the leisure and hospitality market, with special attention focused on hotels. The current economic climate is presenting some exciting hotel opportunities which we are hopeful Red Leopard can get successfully involved in, given adequate financing.
J J MayChairmanConsolidated income statement Year to 31 Re-stated December Year to 31 2008 December 2007 £ £ OVERHEADS Administrative expenses (263,948) (208,114) OPERATING LOSS BEFORE FINANCE (263,948) (208,114) Finance income 66,093 13,063 Finance cost (334,373) (18,576) LOSS FROM CONTINUING ACTIVITIES BEFORE (532,228) (213,627)TAXATION Income tax expense - - LOSS FOR THE YEAR ATTRIBUTABLE TO THE (532,228) (213,627)EQUITY HOLDERS OF THE PARENT Loss per share - basic and diluted 4 (0.13)p (0.08)pConsolidated balance sheet Year ended Re-stated 31 December Year ended 2008 31 December 2007 £ £ NON-CURRENT ASSETS Property, plant and equipment - - TOTAL NON-CURRENT ASSETS - - CURRENT ASSETS Trade and other receivables 52,502 244,145 Cash and cash equivalents 189,667 414,684 TOTAL CURRENT ASSETS 242,169 658,829 TOTAL ASSETS 242,169 658,829 EQUITY Share capital 798,227 798,227 Share premium account 2,723,241 2,723,241 Share based payment reserve 60,002 - Other reserve 72,414 72,414 Retained earnings (3,893,660) (3,361,432) TOTAL EQUITY (239,776) 232,450 CURRENT LIABILITIES Trade and other payables 114,502 65,240 TOTAL CURRENT LIABILITIES 114,502 65,240 NON-CURRENT LIABILITIES Borrowings 367,443 361,139 TOTAL NON-CURRENT LIABILITIES 367,443 361,139 TOTAL LIABILITIES 481,945 426,379 TOTAL EQUITY AND LIABILITIES 242,169 658,829Company balance sheet Year ended Re-stated 31 December Year ended 2008 31 December 2007 £ £ NON-CURRENT ASSETS Investments 100 100 TOTAL NON-CURRENT ASSETS 100 100 CURRENT ASSETS Trade and other receivables 85,493 235,862 Cash and cash equivalents 148,850 405,014 TOTAL CURRENT ASSETS 234,343 640,876 TOTAL ASSETS 234,443 640,976 EQUITY Share capital 798,227 798,227 Share premium account 2,723,241 2,723,241 Share based payment reserve 60,002 - Other reserve 72,414 72,414 Retained earnings (3,901,486) (3,379,317) TOTAL EQUITY (247,602) 214,565 CURRENT LIABILITIES Trade and other payables 114,602 65,272 TOTAL CURRENT LIABILITIES 114,602 65,272 NON-CURRENT LIABILITIES Borrowings 367,443 361,139 TOTAL NON-CURRENT LIABILITIES 367,443 361,139 TOTAL LIABILITIES 482,045 426,411 TOTAL EQUITY AND LIABILITIES 234,443 640,976
Consolidated statement of changes in equity
Share Share Share Other Retained Total capital premium based reserves earnings equity payment account reserve £ £ £ £ £ £ At 1 January 2008 798,227 2,723,241 - 72,414 (3,361,432) 232,450 Loss for the year - - - - (532,228) (532,228) Total recognised 798,227 2,723,241 - 72,414 (3,893,660) (299,778)income and expense Share-based payment - - 60,002 - - 60,002expense At 31 December 2008 798,227 2,723,241 60,002 72,414 (3,893,660) (239,776) Share Share Re-stated Re-stated Total capital premium Retained equity Other earnings account reserves £ £ £ £ £ At 1 January 2007 492,160 2,552,491 72,414 (3,147,805) (30,740) Loss for the year - - - (213,627) (213,627)(re-stated) Total recognised income and 492,160 2,552,491 72,414 (3,361,432) (244,367)expense Shares issued during the 306,067 236,250 - - 542,317year Costs off-set against share - (65,500) - - (65,500)premium At 31 December 2007 798,227 2,723,241 72,414 (3,361,432) 232,450
Company statement of changes in equity
Share Share Share Other Retained Total capital premium based reserves earnings equity payment account reserve £ £ £ £ £ £ At 1 January 2008 798,227 2,723,241 - 72,414 (3,379,317) 214,565 Loss for the year - - - - (522,169) (522,169) Total recognised 798,227 2,723,241 - 72,414 (3,901,486) (307,604)income and expense Share-based payment - - 60,002 - - 60,002expense At 31 December 2008 798,227 2,723,241 60,002 72,414 (3,901,486) (247,602) Share Share Re-stated Re-stated Total capital premium Retained equity Other earnings account reserves £ £ £ £ £ At 1 January 2007 492,160 2,552,491 72,414 (3,163,351) (46,286) Loss for the year - - - (215,966) (215,966)(re-stated) Total recognised income and 492,160 2,552,491 72,414 (3,379,317) (262,252)expense Shares issued during the 306,067 236,250 - - 542,317year Costs off-set against share - (65,500) - - (65,500)premium At 31 December 2007 798,227 2,723,241 72,414 (3,379,317) 214,565
Consolidated cash flow statement
Year to 31 Year to 31 December December 2008 2007 £ £CASH FLOWS USED IN OPERATING ACTIVITIES (225,020) (434,775) INVESTING ACTIVITIES Interest received 12,659 13,063 Interest paid on loans (12,656) (12,587) Reclassification of listed investments - 50,000 CASH FLOWS FROM INVESTING ACTIVITIES 3 50,476 FINANCING ACTIVITIES Sale of listed investments - 159,000 Issue of ordinary shares - 542,317 Expense paid in connection with share issue - (65,500) CASH FLOWS FROM FINANCING ACTIVITIES - 635,817 NET (DECREASE)/ INCREASE IN CASH AND CASH (225,017) 251,518EQUIVALENTS Cash and cash equivalents brought forward 414,684 163,166 CASH AND CASH EQUIVALENTS CARRIED FORWARD 189,667 414,684 Company cash flow statement Year to 31 Year to 31 December December 2008 2007 £ £ CASH FLOWS USED IN OPERATING ACTIVITIES (255,706) (422,266) INVESTING ACTIVITIES Interest received 12,198 5,567 Interest paid on loans (12,656) (12,587) Investment in subsidiary - (100) Reclassification of listed investments - 50,000 CASH FLOWS (USED IN)/FROM INVESTING (458) 42,880ACTIVITIES FINANCING ACTIVITIES Sale of listed investments - 159,000 Issue of ordinary shares - 542,317 Expense paid in connection with share issue - (65,500) CASH FLOWS FROM FINANCING ACTIVITIES - 635,817 NET (DECREASE)/ INCREASE IN CASH AND CASH (256,164) 256,431EQUIVALENTS Cash and cash equivalents brought forward 405,014 148,583 CASH AND CASH EQUIVALENTS CARRIED FORWARD 148,850 405,014
Notes:
1. This statement has been prepared using accounting policies and presentation
consistent with those applied in the preparation of the statutory accounts
of the Company.
2. The summary accounts set out above do not constitute statutory accounts as
defined by Section 240 of the UK Companies Act 1985. The summarised balance sheets at 31 December 2008 and the summarised income statement and, summarised cash flow statements and summarised statement of changes in equity for the year then ended have been extracted from the Group's 2008 statutory financial statements upon which the auditors' opinion is unqualified. The results for the period ended 31 December 2007 have been extracted from the statutory accounts for that period, which contain an unqualified auditors' report.
3. The annual report and accounts were today posted to shareholders.
4. Basic loss per ordinary share for the year is based on the loss of £532,228
(2007: £213,627) and a weighted average of 397,964,658 (2007: 267,660,731)
ordinary shares.
For diluted loss per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all potential dilutive ordinary shares. Items to be included in the calculation are:
- Options for ordinary shares
- Convertible loan notes for ordinary shares
The effect of conversion of all potential dilutive ordinary shares would have an anti-dilutive effect on loss per share and therefore they have not been incorporated in the diluted loss per share calculation.
Enquiries:
John May, Red Leopard Holdings Plc +44 (0) 20 7747 8385
Liam Murray, Dowgate Capital Advisers Limited +44 (0) 20 7492 4777
Neil Badger, Dowgate Capital Stockbrokers Limited +44 (0) 12 9351 7744
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