TIDMASTO
RNS Number : 8304K
AssetCo PLC
30 June 2014
Providers of management and resources to the fire and emergency
services in the Middle East
Date: Monday, 30 June 2014 Immediate Release
AssetCo plc
("AssetCo" or the "Company")
Half-Yearly Financial Report
six months to 31 March 2014
Statement by the Chairman, Tudor Davies
Results
We are pleased to announce interim results that show a
considerable improvement in operating profit from GBP0.3 million in
2013 to GBP1.1 million by March 2014. Revenue in the period was
lower at GBP7.0 million compared to GBP8.6 million in 2013
reflecting a combination of the absence of a loss making equipment
supply contract included in the corresponding period last year, and
lower costs in connection with our claim against the former
auditors.
As detailed in the 2013 Annual Report published on 28 March 2014
the Company has agreed the final form and specification for the
continuation of the ongoing contract for the supply of Fire
Services in Abu Dhabi. From our part, we have now completed and
signed this contract and expect that the contract will be completed
by the Abu Dhabi Government shortly and at that time, we will
update shareholders accordingly.
Since the year end in September 2013, we have made progress in
connection with the claim against the former auditors of the Group
and a claim has been submitted in accordance with the Professional
Negligence Pre-action Protocol, under which, the other side have an
opportunity to respond. The claim is being made by AssetCo Plc for
an amount of GBP50.8 million in respect of negligent audits of the
AssetCo Group for the years ended 31 March 2010 and 31 March
2011.
The Company also received the gross amount of GBP2,420,900.00 on
the exercise in December 2013 of 1,210,450 warrants. These warrants
were issued at the time of the refinancing of the Company under a
warrant instrument dated 9 September 2011.
Outlook
We continue to trade in line with management expectations and
will keep shareholders updated on our progress during the year.
Tudor Davies
Chairman
30 June 2014
AssetCo plc
Consolidated Income statement
for the six month period to 31 March 2014
Six months to Year to
31 March 31 March 30 September
2014 2013 2013
GBP'000 GBP'000 GBP'000
Revenue 7,027 8,567 17,647
Cost of sales (5,101) (7,020) (13,714)
------------ ----------- -----------------
Gross profit 1,926 1,547 3,933
Administrative expenses (788) (1,233) (2,195)
------------ ----------- -----------------
Operating profit 1,138 314 1,738
Finance income 28 7 47
Finance costs (134) (283) (526)
Profit before taxation 1,032 38 1,259
Income tax expense - - -
------------ ----------- -----------------
Profit for the period 1,032 38 1,259
Earnings per share (EPS): Restated
Basic - pence 8.89 0.35 11.44
Diluted - pence 8.67 0.31 10.13
Diluted pence per share has been restated in the prior year to reflect
the impact of share warrants within the weighted average number of shares
in issue.
AssetCo plc
Consolidated Statement of Comprehensive Income
for the six month period to 31 March 2014
Six months to Year to
31 March 31 March 30 September
2014 2013 2013
GBP'000 GBP'000 GBP'000
Recognised profit for the period 1,032 38 1,259
Other comprehensive income:
Exchange differences on translating
foreign operations (232) 233 (231)
Other comprehensive income, net
of tax (232) 233 (231)
--------- --------- -------------
Total comprehensive income for
the period 800 271 1,028
--------- --------- -------------
AssetCo plc
Consolidated Statement of Financial Position
As at 31 March 2014
31 March 31 March 30 September
2014 2013 2013
Notes GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 21 70 54
Cash held in respect of a bond 2,430 2,221 2,489
--------------------------------------- ------ --------- --------- -------------
Total non-current assets 2,451 2,291 2,543
Current assets
Inventories - 684 29
Trade and other receivables 3 5,724 5,607 4,515
Cash and cash equivalents (excluding
bank overdrafts) 5,058 4,118 4,134
Cash held as security against letters - 525 -
of credit
Cash held in respect of bond 2,430 2,221 2,489
--------------------------------------- ------ --------- --------- -------------
Total current assets 13,212 13,155 11,167
--------------------------------------- ------ --------- --------- -------------
TOTAL ASSETS 15,663 15,446 13,710
--------------------------------------- ------ --------- --------- -------------
Shareholders' equity
Share capital 25,474 25,353 25,353
Share premium 64,941 62,645 62,645
Foreign currency translation reserve (345) 351 (113)
Profit and loss account (76,944) (79,197) (77,976)
--------------------------------------- ------ --------- --------- -------------
TOTAL EQUITY 13,126 9,152 9,909
LIABILITIES
Current liabilities
Trade and other payables 4 2,537 6,294 3,801
TOTAL CURRENT LIABILITIES 2,537 6,294 3,801
--------------------------------------- ------ --------- --------- -------------
Total liabilities 2,537 6,294 3,801
--------------------------------------- ------ --------- --------- -------------
TOTAL EQUITY AND LIABILITIES 15,663 15,446 13,710
--------------------------------------- ------ --------- --------- -------------
AssetCo plc
Consolidated Statement of Changes in Equity
for the six month period to 31 March 2014
Share Foreign Profit Share premium Total
Capital currency and equity
translation loss reserve
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 30 September 2012 25,353 118 (79,235) 62,645 8,881
Profit for the period - - 38 - 38
Other comprehensive income:
Exchange differences on translation - 233 - - 233
Total comprehensive income
for the period - 233 38 - 271
-------------------------------------- --------- ------------- -------------- -------------- --------
Balance at 31 March 2013 25,353 351 (79,197) 62,645 9,152
-------------------------------------- --------- ------------- -------------- -------------- --------
Profit for the period - - 1,221 - 1,221
Other comprehensive income:
Exchange differences on translation - (464) - - (464)
Total comprehensive income
for the period - (464) 1,221 - 757
-------------------------------------- --------- ------------- -------------- -------------- --------
Balance at 30 September 2013 25,353 (113) (77,976) 62,645 9,909
-------------------------------------- --------- ------------- -------------- -------------- --------
Transactions with owners:
Issue of shares 121 - - 2,296 2,417
-------------------------------------- --------- ------------- -------------- -------------- --------
Transactions with owners for
the period 121 - - 2,296 2,417
-------------------------------------- --------- ------------- -------------- -------------- --------
Profit for the period - - 1,032 - 1,032
Other comprehensive income:
Exchange differences on translation - (232) - - (232)
-------------------------------------- --------- ------------- -------------- -------------- --------
Total comprehensive income
for the period - (232) 1,032 - 800
-------------------------------------- --------- ------------- -------------- -------------- --------
Balance as at 31 March 2014 25,474 (345) (76,944) 64,941 13,126
-------------------------------------- --------- ------------- -------------- -------------- --------
AssetCo plc
Consolidated Statement of Cash Flows
for the six month period to 31 March 2014
Six months to Year to
31 March 31 March 30 September
2014 2013 2013
Note GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash used in operations 5 (1,324) (1,489) (849)
Cash deposited in respect of
a performance bond - - (894)
Interest paid (134) (283) (526)
Income taxes received - 1,104 1,096
-------------------------------------- ----- --------- --------- -------------
Net cash outflows from operating
activities (1,458) (668) (1,173)
-------------------------------------- ----- --------- --------- -------------
Cash flows from investing activities
Finance income 28 7 47
Purchase of property, plant
and equipment - - (6)
Cash deposited in respect of - (525) -
letters of credit
-------------------------------------- ----- --------- --------- -------------
Net cash generated/(used) in
investing activities 28 (518) 41
-------------------------------------- ----- --------- --------- -------------
Cash flows from financing activities
Issue of shares (net of costs) 2,417 - -
Net cash generated from financing 2,417 - -
activities
-------------------------------------- ----- --------- --------- -------------
Net change in cash and cash
equivalents 987 (1,186) (1,132)
Cash, cash equivalents and bank
overdrafts at the beginning
of the period 4,134 5,266 5,266
Exchange differences on translation (63) 38 -
Cash, cash equivalents and bank
overdrafts at the end of the
period 5,058 4,118 4,134
-------------------------------------- ----- --------- --------- -------------
AssetCo plc
Notes to the Financial Statements
for the six month period to 31 March 2014
1. Legal status and activities
AssetCo plc (the "Company") is principally involved in the provision
of management and resources to the fire and rescue emergency services
in international markets. It currently trades through a branch in
UAE and its strategy is to develop this business. As at period end,
the company has no trading subsidiaries and therefore the principal
activities of the Group are restricted to those of the company detailed
above.
AssetCo plc is a public limited liability company incorporated and
domiciled in England and Wales. The address of its registered office
is Singleton Court Business Park, Wonastow Road, Monmouth, Monmouthshire
NP25 5JA. The Group operates from one site in UAE.
AssetCo plc shares are listed on the Alternative Investment Market
("AIM") of the London Stock Exchange.
2. Basis of preparation
The financial information in the half-yearly report has been prepared
using the recognition and measurement principles of International
Accounting Standards, International Financial Reporting Standards
and Interpretations adopted for use in the European Union (collectively
Adopted IFRSs). The principal accounting policies used in preparing
the half-year report are those the Group expects to apply in its
financial statements for the year ending 30 September 2014 and are
unchanged from those disclosed in the Annual Report and Consolidated
Financial Statements for the year [ended or to]30 September 2013.
The financial information for the six months to 31 March 2014 and
the six months to 31 March 2013 is unaudited and does not constitute
the Group's statutory financial statements for those periods. The
comparative financial information for the full year [ended or to]
30 September 2013 has, however, been derived from the audited statutory
financial statements for that period. A copy of those statutory financial
statements has been delivered to the Registrar of Companies.
While the financial figures included in this half-yearly report have
been computed in accordance with IFRSs applicable to interim periods,
this half-yearly report does not contain sufficient information to
constitute an interim financial report as that term is defined in
IAS 34.
The financial statements have been presented in Sterling to the nearest
thousand pounds (GBP'000) except where otherwise indicated.
3. Trade and Other Receivables
31 March 31 March 30 September
2014 2013 2013
GBP'000 GBP'000 GBP'000
Trade receivables 4,959 3,363 3,676
Other receivables 71 427 67
Prepayments and accrued income 694 1,817 772
----------- -------------- --------------
5,724 5,607 4,515
----------- -------------- --------------
4. Trade and Other Payables
31 March 31 March 30 September
2014 2013 2013
GBP'000 GBP'000 GBP'000
Trade and other payables 859 1,977 908
Other payables 992 2,428 2,213
Other taxation and social security 7 3 4
Accruals and deferred income 679 1,886 676
--------- --------- -------------
2,537 6,294 3,801
--------- --------- -------------
5. Reconciliation of profit before taxation to net cash used in operations
31 March 31 March 30 September
2014 2013 2013
GBP'000 GBP'000 GBP'000
Profit for the period 1,032 38 1,259
Depreciation and impairment 12 7 26
Loss on sale of property, plant and 19 - -
equipment
Interest expense 134 283 526
Interest received (28) (7) (47)
Decrease / (increase) in inventories 28 (283) 348
(Increase) / decrease in debtors (1,332) (576) 227
Decrease in creditors (1,189) (951) (3,188)
Cash used in operations (1,324) (1,489) (849)
---------- --------- -------------
6. Contingent liabilities
During the period to 30 September 2011 the Group entered into a Performance
Bond relating to a UAE based contract that would determine a potential
liability of 10% of the total contract value upon failure to fulfil
all the terms of the contract. This liability would equate to a maximum
of approximately GBP4m but has subsequently been increased to a maximum
of approximately GBP5m as a result of a contract extension. The Bond
will remain in place in full until 90 days after the customer has confirmed
that all contractual terms have been met and it is expected that the
confirmation will occur in the second half of this financial year.
At completion of the 90 day period the potential liability under this
Bond will reduce to 5% of the contract value and then reduce to 0%
upon expiration of associated warranty periods and this is expected
to be in approximately April 2017.
The Group has also provided an "Advanced Payment Guarantee" in connection
to a UAE based contract. The guarantee provides for the repayment in
part or full of payments received from the customer in advance of contractual
service delivery. The guarantee was originally for approximately GBP8m
but has been released down to a maximum liability of approximately
GBP1million. The guarantee is expected to be released in full in the
second half of this financial year ending September 2014.
7. Electronic Communications
The Company is not proposing to bulk print and distribute hard copies
of this Half-yearly Financial Report for the six month period to 31
March 2014 unless specifically requested by individual shareholders;
it can be downloaded from the Company's website at www.assetco.com.
News updates, Regulatory news, & Financial statements, can be viewed
and downloaded from the Group's website, www.assetco.com. Copies can
also be requested, in writing to, The Company Secretary, AssetCo plc,
Singleton Court Business Park, Wonastow Road, Monmouth, Monmouthshire
NP25 5JA.
Enquiries:
AssetCo plc Arden Partners plc TooleyStreet Communications
Tudor Davies, Chairman Richard Day/ James Fiona Tooley
Felix
Tel: +44 (0) 7785 703523 Tel:+44 (0) 20 7614 Mobile: +44 (0) 7785
or +44 (0) 20 7614 5900 5900 703 523
fiona@tooleystreet.com
AssetCo, is principally involved in the provision of management and resources
to the fire and emergency services in the Middle East. For further details,
visit the website, www.assetco.com.
Ticker: AIM: ASTO.L.
Market-cap GBP32.6m
This information is provided by RNS
The company news service from the London Stock Exchange
END
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