Last checked at 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
| Energy Asset Management Plc | ||||
| Consolidated Income Statement | ||||
| for the twelve month period ended 31 December 2008 | ||||
| Note | 31-Dec | 30-Jun | 31-Dec | |
| 2008 | 2008 | 2007 | ||
| £ | £ | £ | ||
| Unaudited | Unaudited | Audited | ||
| Revenue | 2,068,057 | 816,699 | 667,860 | |
| Cost of sales | (702,994) | (268,942) | (360,374) | |
| Gross Profit | 1,365,063 | 547,757 | 307,486 | |
| Operating expenses | (1,663,286) | (649,359) | (1,363,668) | |
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| Operating loss | (298,223) | (101,602) | (1,056,182) | |
| Finance Income | 6,920 | 2,541 | 4,893 | |
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| Loss before taxation | (291,303) | (99,061) | (1,051,289) | |
| Taxation | (1,210) | 0 | 0 | |
| Loss after taxation | (292,513) | (99,061) | (1,051,289) | |
| Retained loss for the period | (292,513) | (99,061) | (1,051,289) | |
| Attributable to | ||||
| Equity holders of the Company | (292,513) | (99,061) | (1,058,734) | |
| Minority interest | 0 | 0 | 7,445 | |
| Retained loss for the period | (292,513) | (99,061) | (1,051,289) | |
| Loss per share basic and diluted (p) | 2 | (0.09) | (0.25) | (0.39) |
| Energy Asset Management Plc | ||||
| Consolidated Balance Sheet | ||||
| As at 31 December 2008 | ||||
| 31-Dec | 30-Jun | 31-Dec | ||
| 2008 | 2008 | 2007 | ||
| £ | £ | £ | ||
| Unaudited | Unaudited | Audited | ||
| Assets | ||||
| Non current assets | ||||
| Property, plant and equipment | 3,512,120 | 1,153,631 | 476,092 | |
| Intangible assets- Goodwill | 745,475 | 745,475 | 745,475 | |
| Total non current assets | 4,257,595 | 1,899,106 | 1,221,567 | |
| Current assets | ||||
| Trade and other receivables | 239,401 | 465,883 | 95,200 | |
| Cash and cash equivalents | 120,479 | 215,648 | 17,101 | |
| Inventories | 230,228 | 136,125 | 131,984 | |
| Total current assets | 590,108 | 817,656 | 244,285 | |
| Total Assets | 4,847,703 | 2,716,762 | 1,465,852 | |
| Equity and liabilities attributable to equity holders of the Company | ||||
| Share capital and reserves | ||||
| Issued capital | 4 | 3,327,684 | 3,327,684 | 2,787,684 |
| Share premium account | 1,145,899 | 1,145,899 | 1,163,929 | |
| Reserves | (3,705,835) | (3,568,956) | (3,526,468) | |
| Total Equity | 767,748 | 904,627 | 425,145 | |
| Non-current liabilities Borrowings | 1,640,923 | 1,050,587 | 425,374 | |
| Current liabilities | ||||
| Borrowings | 136,357 | 70,649 | 40,605 | |
| Trade and other payables | 2,302,675 | 690,899 | 574,728 | |
| Total current liabilities | 2,439,032 | 761,548 | 615,333 | |
| Total equity and liabilities | 4,847,703 | 2,716,762 | 1,465,852 | |
| Energy Asset Management Plc | |||||
| Statement in Changes in Equity | |||||
| Share | Share | Retained | Minority | ||
| Capital | Premium | Earnings | Interests | Total | |
| £ | £ | £ | £ | £ | |
| Balance at 1 January 2007 | 2,467,684 | 1,083,929 | (2,580,880) | (7,445) | 963,288 |
| Loss for the period attributable to equity holders | 0 | 0 | (1,058,734) | 0 | (1,058,734) |
| Loss for the period attributable to minority interest | 0 | 0 | 0 | 7,445 | 7,445 |
| Share based payments | 0 | 0 | 113,146 | 0 | 113,146 |
| Shares issued | 320,000 | 80,000 | 0 | 0 | 400,000 |
| Balance at 31 December 2007 | 2,787,684 | 1,163,929 | (3,526,468) | 0 | 425,145 |
| Loss for the period attributable to equity holders | 0 | 0 | (99,061) | 0 | (99,061) |
| Share based payments | 0 | 0 | 56,573 | 0 | 56,573 |
| Shares issued | 540,000 | 0 | 0 | 0 | 540,000 |
| Share issue costs | 0 | (18,030) | 0 | 0 | (18,030) |
| Balance at 30 June 2008 | 3,327,684 | 1,145,899 | (3,568,956) | 0 | 904,627 |
| Loss for the period attributable to equity holders | 0 | 0 | (193,452) | 0 | (193,452) |
| Share based payments | 0 | 0 | 56,573 | 0 | 56,573 |
| Shares issued | 0 | 0 | 0 | 0 | 0 |
| Share issue costs | 0 | 0 | 0 | 0 | 0 |
| Balance at 31 December 2008 | 3,327,684 | 1,145,899 | (3,705,835) | 0 | 767,748 |
| Energy Asset Management Plc | ||||
| Consolidated Cash Flow Statement | ||||
| For the twelve months ended 31 December 2009 | ||||
| 31-Dec | 30-Jun | 31-Dec | ||
| 2008 | 2008 | 2007 | ||
| £ | £ | £ | ||
| Unaudited | Unaudited | Audited | ||
| Cash flows from operating activities | ||||
| Operating loss for the year as per income statement | (298,223) | (101,602) | (1,056,182) | |
| Depreciation of non current assets | 99,943 | 29,696 | 22,576 | |
| Loss on disposal of non current assets | 1,420 | 0 | 0 | |
| Share based payments | 113,146 | 56,573 | 113,146 | |
| (83,714) | (15,333) | (920,460) | ||
| Movements in working capital | ||||
| Increase in trade and other receivables | (483,278) | (370,683) | (41,865) | |
| Increase in inventories | (98,244) | (4,141) | (122,624) | |
| Increase in trade and other payables | 2,023,789 | 116,171 | 460,346 | |
| Net cash outflow from operations | 1,358,553 | (273,986) | (624,603) | |
| Cash flows from investing activities | ||||
| Interest received | 6,920 | 2,541 | 4,893 | |
| Purchase of non current assets | (3,135,971) | (707,235) | (478,263) | |
| Net cash outflow from investing activities | (3,129,051) | (704,694) | (473,370) | |
| Cash flows from financing activities | ||||
| Net proceeds from issue of equity shares | 521,970 | 521,970 | 400,000 | |
| Inflow from new leases | 1,444,580 | 683,614 | 475,853 | |
| Capital element of finance lease rental payments | (92,674) | (28,357) | (9,874) | |
| Net cash flows from financing activities | 1,873,876 | 1,177,227 | 865,979 | |
| Net increase/(decrease) in cash and cash equivalents | 103,378 | 198,547 | (231,994) | |
| Cash and cash equivalents at the beginning of period | 17,101 | 17,101 | 249,095 | |
| Cash and cash equivalents at end of period | 120,479 | 215,648 | 17,101 | |
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.