TIDMASTO
RNS Number : 4934I
AssetCo PLC
26 March 2015
Providers of management and resources to the fire and emergency
services in the Middle East
Date: Thursday, 26 March 2015 Immediate Release
AssetCo plc
("AssetCo" or the"Group" or the "Company")
Preliminary results for the year ended 30 September 2014
Statement by the Chairman, Tudor Davies
Introduction
We are pleased to announce results for the year ended 30
September 2014 showing a 53% improvement in profit over the same
period last year.
Results
The Consolidated Income Statement for the year ended 30
September 2014 shows an Operating profit of GBP2.6m (2013: GBP1.7m)
on Revenues of GBP14.6m (2013: GBP17.6m) and a Profit before tax of
GBP2.3m (2013: GBP1.3m). The main factors behind the lower Revenues
compared with the previous year relate to the completion of our
contractual obligations to construct and supply of equipment to
four new fire stations. The year on year increase in profits was
primarily due to the absence of one off costs associated with the
construction of the fire stations, and lower costs associated with
the claim against our former auditors Grant Thornton.
Cash position
We currently have total cash balances GBP10.8m (2013: GBP9.1m),
comprising free cash balances of GBP5.8m (2013: GBP4.1m) and
restricted cash balances held in respect of Bonds amounting to
GBP5.0m (2013: GBP5.0m). The cash balances in respect of Bonds in
part relate to completed contracts with GBP2.5m in current assets
which was received after the year end and GBP2.5m which is due for
release in the year ending 30 September 2017. The strong cash
position benefitted from the exercise of 1,210,450 warrants in
December 2013, resulting in gross proceeds of GBP2.4m.
Claim against former auditors
We have made some progress in respect of the claim against Grant
Thornton for losses resulting from negligent audits for the years
ended 31 March 2009 and 31 March 2010, by submitting details of our
claim, amounting to GBP50.8m, to Grant Thornton in accordance with
the Professional Negligence Pre-action Protocol. Although we
submitted our claim in May 2014 and the Protocol provides that a
substantive response be served within three months, in August 2014
Grant Thornton's solicitors indicated that they would not be in a
position to serve a response "before November". Grant Thornton's
response has since been further delayed and their solicitors have
recently indicated that we may expect a full reply by the end of
March 2015. Whilst we had hoped that Grant Thornton would engage
fully and openly in accordance with the Professional Negligence
Pre-Action Protocol, if a full response is not forthcoming we will
be left with no sensible alternative other than to issue formal
court proceedings against Grant Thornton in the near future.
Current Trading
Trading continues to be in line with management's expectations
and we will keep shareholders updated of further progress during
the coming year.
Enquiries:
AssetCo plc Arden Partners plc TooleyStreet Communications
Tudor Davies, Chairman John Llewellyn-Lloyd Fiona Tooley
/ Ciaran Walsh
Tel: +44 (0) 7785 703523 or+44 Tel:+44 (0) 20 7614 Mobile: +44 (0) 7785
(0) 20 7614 5900 5900 703 523
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: GBP35.72m
AssetCo plc
Consolidated Income Statement
for the year to 30 September 2014
Year to 30 September
2014 2013
Note
GBP'000 GBP'000
Revenue 3 14,634 17,647
Cost of sales (10,865) (13,714)
--------------- ---------------
Gross profit 3,769 3,933
Administrative expenses (1,169) (2,195)
--------------- ---------------
Operating profit 2,600 1,738
Finance income 9 47
Finance costs (356) (526)
Profit before tax 2,253 1,259
Income tax credit - -
--------------- ---------------
Profit for the year 2,253 1,259
Earnings per share (EPS): 4
Basic - pence 18.92 11.44
Diluted - pence 18.46 10.13
AssetCo plc
Consolidated Statement of Comprehensive Income
for the year to 30 September 2014
Year to 30 September
2014 2013
GBP'000 GBP'000
Recognised profit for the year 2,253 1,259
Other comprehensive income / (expense):
Exchange differences on translating foreign
operations 137 (231)
Other comprehensive income / (expense),
net of tax 137 (231)
----------- ----------
Total comprehensive income for the year 2,390 1,028
----------- ----------
AssetCo plc
Consolidated Statement of Financial Position
As at 30 September 2014
Note 30 September 30 September
2014 2013
GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 12 54
Cash held in respect of a bond 2,482 2,489
------------------------------------------- ----- ------------- -------------
Total non-current assets 2,494 2,543
Current assets
Inventories 333 29
Trade and other receivables 6,220 4,515
Cash and cash equivalents (excluding bank
overdrafts) 6 5,787 4,134
Cash held in respect of bond 2,509 2,489
------------------------------------------- ----- ------------- -------------
Total current assets 14,849 11,167
------------------------------------------- ----- ------------- -------------
Total assets 17,343 13,710
------------------------------------------- ----- ------------- -------------
Shareholders' equity
Share capital 25,474 25,353
Share premium 64,941 62,645
Foreign currency translation reserve 24 (113)
Profit and loss account (75,723) (77,976)
------------------------------------------- ----- ------------- -------------
Total equity 14,716 9,909
------------------------------------------- ----- ------------- -------------
Liabilities
Current liabilities
Trade and other payables 2,627 3,801
Total current liabilities 2,627 3,801
------------------------------------------- ----- ------------- -------------
Total liabilities 2,627 3,801
------------------------------------------- ----- ------------- -------------
Total equity and liabilities 17,343 13,710
------------------------------------------- ----- ------------- -------------
The financial statements were authorised for issue by the Board
of Directors on 25 March 2015 and were signed on its behalf by TG
Davies.
AssetCo plc
Consolidated Statement of Changes in Equity
for the year to 30 September 2014
Share Foreign Profit Share Total
capital currency and loss premium equity
translation 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 year - - 1,259 - 1,259
Other comprehensive expense:
Exchange differences on translation - (231) - - (231)
--------------------------------------- --------- ------------- ---------- --------- --------
Total comprehensive income
for the year - (231) 1,259 - 1,028
--------------------------------------- --------- ------------- ---------- --------- --------
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 year 121 - - 2,296 2,417
--------------------------------------- --------- ------------- ---------- --------- --------
Profit for the year - - 2,253 - 2,253
Other comprehensive income:
Exchange differences on translation - 137 - - 137
--------------------------------------- --------- ------------- ---------- --------- --------
Total comprehensive income
for the year - 137 2,253 - 2,390
--------------------------------------- --------- ------------- ---------- --------- --------
Balance at 30 September 2014 25,474 24 (75,723) 64,941 14,716
--------------------------------------- --------- ------------- ---------- --------- --------
AssetCo plc
Consolidated Statement of Cash Flows
for the year to 30 September 2014
Year to 30 September
2014 2013
Note GBP'000 GBP'000
Cash flows from operating activities
Cash used in operations 5 (380) (849)
Cash deposited in respect of a performance
bond (30) (894)
Interest paid (356) (526)
Income taxes received - 1,096
---------------------------------------------- ----- ----------- ----------
Net cash used in operating activities (766) (1,173)
---------------------------------------------- ----- ----------- ----------
Cash flows from investing activities
Finance income 9 47
Purchase of property, plant and equipment - (6)
Net cash generated from investing activities 9 41
---------------------------------------------- ----- ----------- ----------
Cash flows from financing activities
Issue of shares (net of costs) 2,417 -
Net cash generated in financing activities 2,417 -
---------------------------------------------- ----- ----------- ----------
Net change in cash and cash equivalents 1,660 (1,132)
Cash, cash equivalents and bank overdrafts
at the beginning of the year 4,134 5,266
Exchange differences on translation (7) -
---------------------------------------------- ----- ----------- ----------
Cash, cash equivalents and bank overdrafts
at the end of the year 6 5,787 4,134
---------------------------------------------- ----- ----------- ----------
AssetCo plc
Notes to the Financial Statements
for the year to 30 September 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.
The financial statements have been presented in Sterling to the nearest
thousand pounds (GBP'000) except where otherwise indicated.
These Group consolidated financial statements were authorised for issue
by the Board of Directors on 25 March 2015.
2. Basis of preparation
The Preliminary results for the period to 30 September 2014, which
do not form the statutory accounts of the Group, are an abridged statement
of the full Annual Report and Financial Statements, have been prepared
in accordance with International Financial Reporting Standards (IFRS)
as adopted by the European Union, and those parts of the Companies
Act 2006 applicable to companies reporting under IFRS.
The Preliminary results have been prepared on a going concern basis.
The principal accounting policies are included in the Group financial
statements and have been applied consistently in both periods presented.
3. Segmental reporting
The core principle of IFRS 8 'Operating Segments' is to require an entity
to disclose information that enables users of the financial statements
to evaluate the nature and financial effects of the business activities
in which the entity engages and the economic environments in which it
operates. Segmental information is therefore presented in respect of the
Group's geographical settlement. No secondary segmental information has
been provided as in the view of the Directors, the Group operates in only
one segment, being the provision of management and resources to fire and
emergency services. The Directors consider the chief operating decision
maker is the Board.
Unallocated comprised the head office. Analysis of revenue and results by geographical settlement
UAE Unallocated Continuing
Year to 30 September 2014 operations
GBP'000 GBP'000 GBP'000
Revenue
Revenue to external customers 14,634 - 14,634
Total revenue 14,634 - 14,634
--------------------------------------- ------------ -------------- --------------
Result
Segmental result (EBITDA) 3,224 (602) 2,622
Depreciation (22) - (22)
Operating profit 3,202 (602) 2,600
Finance income 3 6 9
Finance costs (356) - (356)
Profit for the year 2,849 (596) 2,253
--------------------------------------- ------------ -------------- --------------
Asset and liabilities
Total segment assets 13,483 3,860 17,343
Total segment liabilities (4,848) 2,221 (2,627)
--------------------------------------- ------------ -------------- --------------
Total net assets 8,635 6,081 14,716
--------------------------------------- ------------ -------------- --------------
Other segment information
Total capital expenditure - - -
Segment result represents EBITDA.
Revenues of approximately GBP13.822m are derived from a single customer
within the UAE segment. The amounts provided to the Board with respect
to net assets are measured in a manner consistent with that of the financial
statements. The Group is domiciled in the UK and also operates a branch
in UAE. Revenue by destination is not materially different from revenue
by origin shown above. All revenue relates to services.
Analysis of revenue and results by geographical settlement
UAE Unallocated Continuing
Year to 30 September 2013 operations
GBP'000 GBP'000
GBP'000
Revenue
Revenue to external customers 17,582 65 17,647
Total revenue 17,582 65 17,647
------------------------------------------------------- --------------- ------------------- -------------------
Result
Segmental result (EBITDA) 2,504 (740) 1,764
Depreciation (26) - (26)
Operating profit 2,478 (740) 1,738
Finance income 36 11 47
Finance costs (526) - (526)
Profit for the year 1,988 (729) 1,259
------------------------------------------------------- --------------- ------------------- -------------------
Asset and liabilities
Total segment assets 11,765 1,945 13,710
Total segment liabilities (6,020) 2,219 (3,801)
------------------------------------------------------- --------------- ------------------- -------------------
Total net assets 5,745 4,164 9,909
------------------------------------------------------- --------------- ------------------- -------------------
Other segment information
Total capital expenditure 6 - 6
Segment result represents EBITDA.
Revenues of approximately GBP17.025m are derived from a single customer
within the UAE segment. The amounts provided to the Board with respect
to net assets are measured in a manner consistent with that of the financial
statements. The Group is domiciled in the UK and also operates a branch
in UAE. Revenue by destination is not materially different from revenue
by origin shown above. All revenue relates to services.
4. Earnings per share
a) Basic earnings per share is calculated by dividing the profit attributable
to ordinary equity holders of the Company by the weighted average number
of ordinary shares outstanding during the period.
Year to 30 September
2014 2013
GBP'000 GBP'000
Profit for the year 2,253 1,259
----------- ------------------
Weighted average number of shares in issue 11,908,551 11,000,713
Basic profit per share (EPS) - pence 18.92 11.44
b) Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares. Dilutive potential ordinary shares comprise
warrants. A calculation is made to determine the number of shares that
could have been acquired at fair value based on monetary value of the
subscription rights attached to outstanding warrants, the warrants were
exercisable up until 31 December 2013 at a price of GBP2.00 each warrant.
The number of shares calculated as above is compared with the number
of shares that would have been issued assuming the exercise of the warrants.
As at 30 September 2013 there were 3,500,000 warrants which could have
been convertible at GBP2.00 each. On 3 January 2014 various shareholders
exercised warrants to subscribe for 1,210,450 new ordinary shares at
10p each at a price of GBP2.00 per share.
Year to 30 September
2014 2013
GBP'000 GBP'000
----------- ------------------
Profit for the year 2,253 1,259
----------- ------------------
Weighted average number of shares in issue 12,207,993 12,431,238
Diluted profit per share (EPS) - pence 18.46 10.13
Following the issue of the new ordinary shares the company's enlarged
issued share capital comprises 12,211,163 shares. As a result, and expiration
of the deadline for exercising warrants outstanding being 31 December
2013, there are no further warrant instruments outstanding that may be
exercised.
5. Reconciliation of profit before tax to net cash used from operations
Year to 30 September
2014 2013
GBP'000 GBP'000
Profit for the year before tax 2,253 1,259
Depreciation and impairment 22 26
Loss on sale of property, plant and equipment 19 -
Interest expense 356 526
Interest received (9) (47)
(Increase) / decrease in inventories (304) 348
(Increase) / decrease in debtors (1,720) 227
Decrease in creditors (997) (3,188)
Cash used in operations (380) (849)
---------------- -------------------
30 September
--------------------------------
6. Analysis of net cash: 2014 2013
GBP'000 GBP'000
--------------- ---------------
Cash at bank and in hand 5,787 4,134
5,787 4,134
--------------- ---------------
There was cash of GBP5.787m as at 30 September 2014 (2013: GBP4.134m)
and cash held in respect of a bond of GBP4.991m (2013: GBP4.978m).
7. 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 fulfill
all the terms of the contract. This liability initially equated to a
maximum of approximately GBP4m but subsequently increased to a maximum
of approximately GBP5m as a result of a contract extension. During the
2015 financial year the customer has confirmed that all contractual terms
have been met and consequently in February 2015 the potential liability
under this Bond reduced to 5% of the contract value, approximately GBP2.5m.
This will reduce further to 0% upon expiration of associated warranty
periods which is expected to occur in approximately July 2017.
During the period to 30 September 2011 the Group also provided an "Advanced
Payment Guarantee" of approximately GBP8m in connection to a UAE based
contract. The guarantee provided for the repayment in part or full of
payments received from the customer in advance of contractual service
delivery. The guarantee was released in full by 31 October 2014.
During the period to 30 September 2014 the Group entered into a second
Performance Bond, relating to a contract replacing that referred to above,
and that would determine a potential liability of approximately GBP2m
upon failure to fulfill all the terms of the contract. It is expected
that this will reduce to approximately GBP1m during the 2017 financial
year and then will be released in full during the 2020 financial year.
During the period to 30 September 2014 the Group also entered into a
third Performance Bond, relating to a further 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. The potential liability
equates to approximately GBP0.1m and is expected to be released May 2015.
8. Post Balance sheet events
On the 2 November 2014 the Group entered into a new five year contract
with a UAE based company. Along with the provision of manpower services
and supply of vehicles and equipment it also provided a Performance Bond
for this contract equating to approximately GBP0.1m. This is expected
to lapse in November 2019.
9. Electronic communications
This Preliminary Announcement is available on the Company's website www.assetco.com.
News updates, Regulatory news, and Financial statements can also be viewed
and downloaded from the website. Copies can also be requested, in writing
to: The Company Secretary, AssetCo plc, Singleton Court Business Park,
Wonastow Road, Monmouth, Monmouthshire NP25 5JA.
The Company is not proposing to bulk print and distribute hard copies
of the Annual Report and Financial Statements for the year to 30 September
2014 unless specifically requested by individual shareholders. However,
copies will be available to download from the Group's website www.assetco.com
in due course.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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