Value And Indexed Property Income Trust Plc Regulatory News (VIP)

31 Mar 2009 07:00



For immediate release 31 March 2009

Energy Asset Management Plc

("EAM" or the "Company")

Second Interim Results for the Twelve Months Ended 31 December 2008

Introduction

On 23 December 2008 the Company announced that it had entered into a conditional agreement with Macquarie Energy Asset Holdings Limited for the sale by the Company of the entire issued share capital Energy Assets Limited, a wholly owned subsidiary of the Company and its principal trading entity. At a general meeting held on 9 January 2009 shareholders approved the sale and, as the Company was reclassified under the AIM Rules as an Investing Company, approved the Investment Strategy set out below.

The Company has extended its accounting reference period ending on 31 December 2008 so as to end on 31 March 2009 in order to better inform shareholders by presenting audited Financial Statements made up to a period after the sale and, accordingly presents second unaudited interim results to 31 December 2008.

Financial Results

In the 12 months to 31 December 2008 the Group made a loss after taxation of £292,513 (2007 - loss £1,051,289) representing a loss per share of 0.09p (2007 - loss 0.39p per share). The reduced loss reflects the progress that was being made by the Company's principal trading business.

Following receipt of the initial consideration arising from the sale of Energy Assets Limited in January 2009, and after settlement of costs, cash balances currently amount to some £450,000. Details of further consideration pursuant to the sale of Energy Assets Limited are set out in note 5 to these second interim financial statements.

Investment Strategy

The Company will seek to acquire assets, companies or businesses in the United Kingdom and Europe in the energy or natural resources sector and in the service sector. The Company may be either an active investor and acquire control of a single company or it may be a passive investor and acquire non-controlling shares or other assets or businesses as is considered to be in the best interests of the Company.

The Future

Your board is seeking out suitable acquisitions and meanwhile is endeavouring to keep costs to a minimum and to conserve cash.

Contact: John Shaw, Energy Asset Management PLC on 07973 826613 

Roland Cornish, Beaumont Cornish Limited on 020 7628 3396

  Notes to the unaudited financial statements

1. Basis of Preparation

These second interim financial statements of the Group for the twelve months ended 31 December 2008 have been prepared on a going concern basis in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRSs) endorsed by the European Union and the AIM Rules for Companies. The interim financial statements have been prepared on a basis consistent with the accounting policies set out in the Group's consolidated annual financial statements for the year ended 31 December 2007. They have not been audited, do not include all the information required for full annual financial statements, and should be read in conjunction with the Group's consolidated annual financial statements for the year ended 31 December 2007. The report of the auditors on those consolidated annual financial statements was unqualified. This information does not constitute statutory accounts as defined in section 240 of the Companies Act 1985.

As permitted, the Group has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing this interim financial information.

2. Loss per share 

The loss per share has been calculated by dividing the loss after taxation of £292,513 by the weighted average number of Ordinary Shares in issue for the period of 330,401,260 (2007: 263,917,554). The diluted loss per share is the same as the basic loss per share as the options that were in existence have an anti-dilutive effect on the loss per share and therefore have not been taken into account.

3. Dividend

No dividend is recommended. 

4. Share capital 

At 31 December 2008 the Company had 332,768,383 Ordinary shares of 1p each in issue. (2007: 278,768,383).

5. Post Balance sheet events

On 9 January 2009, the Company sold its interests in Energy Assets Limited, a wholly owned subsidiary of the Company and its principal trading entity. 

Under the terms of the sale agreement, the Company sold the entire issued share capital of Energy Assets Limited to Macquarie Energy Assets Holdings Limited, a wholly owned subsidiary of Macquarie Group Limited, for an aggregate consideration of up to £1,848,572 payable in three tranches:

(a) £590,953 of the consideration was paid to the Company at Completion;

(b) £590,953 of the consideration is to be paid to the Company on 31 December 2009. Of this amount, £75,714 is conditional upon Alan McKeating and Philip Bellamy-Lee remaining in employment with Energy Assets Limited at 31 December 2009; and

(c) up to £666,666 of additional consideration is payable to the Company on or about 30 June 2010  conditional upon the net profit attributable to the activities of EAL and Pulse 24 Limited (a wholly owned subsidiary of Macquarie Group Limited) for the financial year ended 31 March 2010 being equal to or exceeding £3,000,000. Of this amount, £151,428 is conditional upon Alan McKeating and Philip Bellamy- Lee remaining in employment with Energy Assets Limited at 30 June 2010 and to the extent that profit is less than £3,000,000, the payment will be scaled down proportionately.

The Company has also subsequently disposed of its interests in other minor subsidiaries for a nominal sum and accordingly the Company has now become an investing company under the AIM Rules.

The Company has extended the accounting reference period ending on 31 December 2008 so as to end on 31 March 2009 so as to better inform shareholders by presenting audited Financial Statements made up to a period after the disposals. Meanwhile, the Company now presents these Second Interim Financial Statements.