Interim Results

22 May 2007 07:01

Albany Capital PLC22 May 2007 Albany Capital Plc Interim Results to 31 March 2007 22 May 2007 Chairman's Statement I am pleased to report that for the six months to 31st March the company hasmade a profit before tax of £38,000 and net assets per share of 2.01 pence. The last six months have been a period of change for Albany with the majority oflegacy investments being sold, which has allowed the company to focus fully onthe new investing strategy. The disposal of the legacy investments necessitateda further write-down of £325,000, which is included in these interims. During the period, Albany made three new investments in Blue Oar Plc, DensitronPlc and ZTC Telecommunications Plc totalling £2.8million. Also, I am pleased toreport that the company is at an advanced stage of establishing a new 'cashshell' company which is expected to be floated on AIM in early June. Vestpa Plc,the new cash shell, will seek to acquire a single business which is seeking afloat on a public market. We are currently evaluating a number of potentialtransactions for Vestpa. Further, the Company has recently taken part in theunderwriting of the Watermark plc bond issue, the particulars of which will beannounced by that company, once completed. During the first half, the Company raised a further £11.8 million net followingtwo placings in October 2006 and December 2006. These funds added to thecompany's cash reserves which stood at £12.7 million at 31 March 2007. Asmentioned in the 2006 annual report, we were taking steps to eliminate thecumulative losses of £829,000 on our profit and loss account by offsetting themagainst the share premium account. This was approved by shareholders in GeneralMeeting on 14th December 2006 and subsequently approved by the Courts on 21stFebruary 2007 and I am now pleased to report that the company has positiverevenue reserves. To further strengthen the board and improve our access to deal flow, I amdelighted to welcome Simon Wharmby who joined the board on 1st March 2007. Simonhas a wealth of experience having been a stockbroker with Charles Stanley andsubsequently Strand Partners. I look forward to the remaining five months of the year and being able to reportfurther progress in the development of the company from the first six months. Oliver VaughanChairman 22 May 2007 Profit and Loss Account Unaudited Unaudited Audited Six months to Six months to Year ended 31 March 31 March 30 September 2007 2006 2006 £'000 £'000 £'000 NoteProfit on sale of investments 236 60 123 Administrative expenses (230) (64) (145) 6 (4) (22) Investment provision (325) (33) (356) Loss on ordinary activities before interest (319) (37) (378) Interest receivable and similar income 357 58 136 Profit / (loss) on ordinary activities before taxation 38 21 (242) Taxation (32) (8) (12) Profit on ordinary activities after taxation 6 13 (254) Earnings per ordinary share (pence) - Basic 2 0.001p 0.008p (0.160)p Balance Sheet Unaudited Unaudited Audited 31 March 31 March 30 September 2007 2006 2006 £'000 £'000 £'000 NoteFixed assetsTangible assets 5 - -Investments 3 - 150 25 5 150 25 Current assetsCurrent asset investments 3,391 1,254 1,327Debtors 203 73 38Cash at bank and in hand 12,661 2,241 2,457 16,255 3,568 3,822 Creditors: Amounts falling due within one year (638) (86) (82) Net current assets 15,617 3,482 3,740 Net assets 15,622 3,632 3,765 Capital and reservesCalled up share capital 7,790 1,579 1,779 Share premium 7,790 2,615 2,815 Shares to be issued reserve 36 - - Profit and loss account 4 6 (562) (829) Equity shareholders' funds 15,622 3,632 3,765 Cash Flow Statement Unaudited Unaudited Audited Six months to Six months to Year ended 31 March 31 March 30 September 2007 2006 2006 £'000 £'000 £'000 Net cash outflow from operating activities (117) (75) (167) Returns on investment and servicing of financeInterest received 178 58 136 Taxation paid - (1) (19) Capital expenditure and financial investmentsPurchase of tangible fixed assets (6) - -Sale of fixed asset investments 53 - - 47 - - Cash inflow / (outflow) before management of liquid resources and financing 108 (18) (50) Management of liquid resources and financingPurchase of current asset investments (3,007) (1,147) (2,127)Sale of current asset investments 1,288 845 1,672Increase in short term deposits (11,000) - - (12,719) (302) (455) FinancingProceeds from issue of ordinary share capital 12,022 - 400Expenses of share issues (207) - - 11,815 - 400 Decrease in cash in the period (796) (320) (105) Notes to the Accounts 1 Basis of preparation The interim financial information for the six months ended 31 March 2007 and thecomparative figures at 31 March 2006 do not constitute statutory accounts, andhave been neither audited nor reviewed by the Company's auditors. The interim financial information for the six months ended 31 March 2007 hasbeen prepared on a basis consistent with the statutory accounts for the yearended 30 September 2006, with the exception of share option costs where FRS 20has now been adopted. Results for the year ended 30 September 2006 have beenextracted from the statutory accounts which were reported on by the auditors,without qualification or statement under Section 237(2) or (3) of the CompaniesAct 1985, and have been delivered to the Registrar of Companies. The company awards employees equity-settled share-based payments, from time totime, on a discretionary basis. In accordance with FRS 20 "Share-based payments", equity-settled share-based payments are measured at fair value at time of grant. Fair value is measured by use of binomial based models. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Company's estimate of the number of shares that will eventually vest. Theoptions are subject to vesting conditions from one to three years, and theirfair value is recognised as an employee benefits expense with a correspondingincrease in shares to be issued reserve equity over the vesting period. Theproceeds received net of any directly attributable transaction costs arecredited to share capital (nominal value) and share premium when the options areexercised. The Company's share option scheme commenced in the current period andhence no prior year adjustment arose on adoption of FRS 20. 2 Earnings / (loss) per share The calculation of the basic earnings / (loss) per ordinary share is based onthe profit / (loss) on ordinary activities after tax and on the weighted averagenumber of ordinary shares in issue during the period. The calculation ofdiluted earnings / (loss) per ordinary share is not disclosed as the shareoptions, warrants and further subscription rights are currently non dilutivewhen calculated in accordance with FRS 14. Reconciliations of the earnings / (losses) and weighted average number of sharesused in the calculations are set out in the table below. 6 months ended 31 March 2007 6 months ended 31 March 2006 Weighted Weighted Average Earnings Average Earnings Earnings Number of per share Earnings Number of per share £ shares (pence) £ Shares (pence)Basic earnings per ordinaryshare 5,581 676,804,297 0.001 13,119 157,925,634 0.008 12 months ended 30 September 2006 Weighted Average Loss per Loss Number of share £ shares (pence) Basic loss per ordinary share (254,120) 163,624,264 (0.160) Notes to the accounts continued 3 Fixed Asset Investments Unlisted £000CostAt 1 October 2006 895Additions -Disposals (250) At 31 March 2007 645 ProvisionsAt 1 October 2006 870Provisions in period -Released on disposal (225) At 31 March 2006 645 Net book valueAt 31 March 2007 - At 30 September 2006 25 4 Profit and loss account £000 At 1 October 2006 (829)Reduction by Court Order 829Profit for the period 6 At 31 March 2007 6 5 Other information The interim financial statements was approved by the Directors on 21 May 2007 A copy of the interim financial statements will not be posted to shareholdersbut will be made available to the public at the company's registered office,223a Kensington High Street, London, W8 6SG. Contacts: John McleanAlbany Capital Plc 020 7937 4445 James JoyceW H Ireland Limited 020 7220 1666 This information is provided by RNS The company news service from the London Stock Exchange