TIDMASTO
RNS Number : 1849T
AssetCo PLC
24 March 2016
Date: Thursday, 24 March Immediate Release
2016
AssetCo plc
("AssetCo" or the "Group" or the "Company")
Providers of management and resources to the fire and emergency
services in the Middle East
Preliminary results for the year to 30 September 2015
Statement by the Chairman, Tudor Davies
Introduction
We are pleased to report continuing progress in the year to 30
September 2015 which reflects increased profit and cash
generation.
Results
The Consolidated Income Statement for the period under review
shows an Operating profit of GBP4.4 million (2014: GBP2.6 million)
on Revenue of GBP21.7 million (2014: GBP14.6 million) and a Profit
before tax of GBP4.0 million (2014: GBP2.3 million). The year on
year increase in profits has come from the planned increase in the
size of our major Middle East contract due to increases in
personnel and related firefighting equipment sales.
Cash Generation
The Company generated GBP6.9 million of free unrestricted cash
during the year with GBP2.6 million net releases from contract
Bonds and, the remaining balance generated from operations.
The cash position at 30 September 2015 is total cash of GBP15.6
million (2014: GBP10.8 million) comprising free cash balances of
GBP12.8 million (2014: GBP5.8 million) and restricted cash balances
held in respect of Bonds amounting to GBP2.8 million (2014: 5.0
million).
Claim against Grant Thornton
The claim against the Company's former auditors Grant Thornton
that was originally lodged under the Professional Negligence
Pre-action Protocol was the subject of a mediation hearing in
October 2015. Unfortunately as announced on 16 December 2015 the
mediation proved to be unsuccessful and the Company issued formal
Court proceedings in respect of the negligent audits for the years
ended 30 September 2009 and 2010. The claim for losses amounts to
GBP38 million plus interest and costs to date of approximately
GBP4.3 million making a total claim of GBP42.3 million.
Outlook
Trading continues to be in line with the current contracts and
Management expectations; we will keep shareholders updated of
further progress on trading and the claim against Grant Thornton
during the course of the year.
Enquiries:
AssetCo plc Arden Partners TooleyStreet Communications
Tudor Davies, Chairman plc Fiona Tooley
Tel: +44 (0) 7785 Nominated adviser Email: fiona@tooleystreet.com
703523 and broker Mobile: +44 (0)
+44 (0) 20 7614 John Llewellyn-Lloyd/ 7785 703523
5900 Ciaran Walsh
Tel:+44 (0) 20
7614 5900
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: GBP39.38m
AssetCo plc
Consolidated Income Statement
for the year to 30 September 2015
Year to 30 September
2015 2014
Continuing
GBP'000 GBP'000
Revenue 21,660 14,634
Cost of sales (15,564) (10,865)
---------- -----------
Gross profit 6,096 3,769
Administrative expenses (1,647) (1,169)
---------- -----------
Operating profit 4,449 2,600
Finance income 23 9
Finance costs (459) (356)
Profit before tax 4,013 2,253
Income tax - -
---------- -----------
Profit for the year 4,013 2,253
---------- -----------
Earnings per share (EPS):
Basic - pence 32.86 18.92
Diluted - pence 32.86 18.46
AssetCo plc
Consolidated Statement of Comprehensive Income
for the year to 30 September 2015
Year to 30 September
2015 2014
GBP'000 GBP'000
Recognised profit for the year 4,013 2,253
Other comprehensive income
Exchange differences on translating
foreign operations 866 137
----------- ----------
Other comprehensive income,
net of tax 866 137
----------- ----------
Total comprehensive income
for the year 4,879 2,390
----------- ----------
AssetCo plc
Consolidated Statement of Financial Position
As at 30 September 2015
30 September 30 September
2015 2014
GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment - 12
Cash held in respect of
a bond 2,802 2,482
------------- -------------
Total non-current assets 2,802 2,494
------------- -------------
Current assets
Inventories - 333
Trade and other receivables 6,629 6,220
Cash and cash equivalents 12,836 5,787
Cash held in respect of
a bond 11 2,509
------------- -------------
Total current assets 19,476 14,849
------------- -------------
Total assets 22,278 17,343
------------- -------------
Shareholders' equity
Share capital 25,474 25,474
Share premium 64,941 64,941
Foreign currency translation
reserve 890 24
Profit and loss account (71,710) (75,723)
------------- -------------
Total equity 19,595 14,716
------------- -------------
Liabilities
Current liabilities
Trade and other payables 2,683 2,627
------------- -------------
Total current liabilities 2,683 2,627
------------- -------------
Total liabilities 2,683 2,627
------------- -------------
Total equity and liabilities 22,278 17,343
------------- -------------
The financial statements were authorised for issue by the Board
of Directors on 24 March 2016 and were signed on its behalf by TG
Davies.
AssetCo plc
Consolidated Statement of Changes in Equity
for the year to 30 September 2015
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
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
Other comprehensive
income: - - 2,253 - 2,253
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
Profit for the year
Other comprehensive
income: - - 4,013 - 4,013
Exchange differences
on translation - 866 - - 866
--------- ------------- ---------- --------- --------
Total comprehensive
income for the year - 866 4,013 - 4,879
--------- ------------- ---------- --------- --------
Balance at 30 September
2015 25,474 890 (71,710) 64,941 19,595
(MORE TO FOLLOW) Dow Jones Newswires
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--------- ------------- ---------- --------- --------
AssetCo plc
Consolidated Statement of Cash Flows
for the year to 30 September 2015
Year to 30 September
2015 2014
Note GBP'000 GBP'000
Cash flows from operating activities
Cash generated from/(used in)
operations 5 4,758 (380)
Cash deposited in respect of
a performance bond (223) (30)
Cash released in respect of a 2,814 -
performance bond
Interest paid (459) (356)
Net cash generated from/(used
in) operating activities 6,890 (766)
----------- ----------
Cash flows from investing activities
Finance income 23 9
Net cash generated from investing
activities 23 9
----------- ----------
Cash flows from financing activities
Issue of shares (net of costs) - 2,417
Net cash generated from financing
activities - 2,417
----------- ----------
Net change in cash and cash equivalents 6,913 1,660
Cash, cash equivalents and bank
overdrafts at beginning of year 5,787 4,134
Exchange differences on translation 136 (7)
----------- ----------
Cash, cash equivalents and bank
overdrafts at end of year 6 12,836 5,787
----------- ----------
AssetCo plc
Notes to the Financial Statements
for the year to 30 September 2015
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.
This preliminary announcement has been presented
in sterling to the nearest thousand pounds (GBP'000)
except where otherwise indicated, as are the Group
consolidated financial statements, which were authorised
for issue by the Board of Directors on 24 March 2016.
2. Basis of preparation
The preliminary results for the period to 30 September
2015, which do not form the statutory accounts of
the Group, are an abridged statement of the full
Annual Report and Financial Statements, which 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.
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.
Unallocated comprises the head office.
Analysis of revenue and results by geographical
settlement
Continuing
Year to 30 September 2015 UAE Unallocated operations
GBP'000 GBP'000 GBP'000
Revenue
Revenue to external customers 21,660 - 21,660
Total revenue 21,660 - 21,660
--------- ------------- ------------
Segment result
EBITDA 5,383 (922) 4,461
Depreciation (12) - (12)
--------- ------------- ------------
Operating profit 5,371 (922) 4,449
Finance income 11 12 23
Finance costs (459) - (459)
Profit for the year 4,923 (910) 4,013
--------- ------------- ------------
Assets and liabilities
Total segment assets 13,942 8,336 22,278
Total segment liabilities (2,294) (389) (2,683)
--------- ------------- ------------
Total net assets 11,648 7,947 19,595
--------- ------------- ------------
Other segment information
Total capital expenditure - - -
--------- ------------- ------------
Continuing
Year to 30 September 2014 UAE Unallocated operations
GBP'000 GBP'000 GBP'000
Revenue
Revenue to external customers 14,634 - 14,634
----------- --------------- -------------
Total revenue 14,634 - 14,634
----------- --------------- -------------
Segment 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
----------- --------------- -------------
Assets 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 - - -
----------- --------------- -------------
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
2015 2014
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GBP'000 GBP'000
Profit for the year 4,013 2,253
----------- ------------
Weighted average number of shares in
issue 12,211,163 11,908,551
Basic earnings per share (EPS) - pence 32.86 18.92
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 in issue assuming the exercise of
the warrants. 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.
Following the issue of the new ordinary shares the
company's enlarged issued share capital comprises
12,211,163 shares. As a result, of expiration of
the deadline for exercising warrants outstanding
being 31 December 2013, there are no further warrant
instruments outstanding that may be exercised.
Year to 30
September
2015 2014
GBP'000 GBP'000
----------- ------------
Profit for the year 4,013 2,253
----------- ------------
Weighted average number of shares in
issue 12,211,163 12,207,993
Diluted earnings per share (EPS) - pence 32.86 18.46
5. Reconciliation of profit before tax to cash generated
from/(used in) operations
Year to 30 September
2015 2014
GBP'000 GBP'000
Profit for the year before tax 4,013 2,253
Depreciation and impairment 12 22
Loss on sale of property, plant and
equipment - 19
Finance costs 459 356
Finance income (23) (9)
Decrease/(increase) in inventories 333 (304)
Decrease/(increase) in debtors 65 (1,720)
Decrease in creditors (101) (997)
Cash generated from/(used in) from
operations 4,758 (380)
----------- --------------
At 30 September
6. Analysis of net cash: 2015 2014
GBP'000 GBP'000
Cash at bank and in hand 12,836 5,787
12,836 5,787
----------- ----------
There was cash of GBP12,836,000 as at 30 September
2015 (2014: GBP5,787,000) and cash held in respect
of bonds of GBP2,813,000 (2014: GBP4,991,000).
7. Contingent liabilities
Approximate maximum
liability
2015 2014
GBP'000 GBP000
Performance bond related to a UAE contract,
expected to be released in full in
2017 2,500 5,000
----------- ---------
Advance payment guarantee - 8,000
----------- ---------
Performance bond related to a UAE contract,
expected to reduce to approximately
GBP1m in 2017 and to be released in
full in 2020 2,000 2,000
----------- ---------
Performance bond related to a UAE contract,
released in full in March 2015 - 100
----------- ---------
Performance bond related to a UAE contract, 100 -
expected to be released in full in
2017
----------- ---------
8. Post balance sheet events
There are no post balance sheet events to report.
9. Annual General Meeting
The AGM is to be held at 12.30 p.m. on 17 May 2016
at Harwood Capital, 6 Stratton Street, London, W1J
8LD. A Notice convening the Annual General Meeting
will be posted to shareholders in due course.
10. Electronic communications
This Preliminary Announcement is available on the
Company's website www.assetco.com . News updates,
regulatory news and financial statements can be viewed
and downloaded from the Company's website, www.assetco.com
. Copies can also be requested, in writing, from 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 2015 unless
specifically requested by individual shareholders;
it can be downloaded from the Company's website.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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March 24, 2016 06:35 ET (10:35 GMT)
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