TIDMAPL
RNS Number : 3508R
ACP Capital Limited
29 April 2009
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29 April 2009
ACP Capital Limited
Correction to 31 December 2008 financial statements and quarterly trading update
The Board of Directors of ACP Capital Limited (the "Company": AIM: APL;
together with its subsidiaries, the "Group") has recently been made aware of a
hedging agreement (the "Agreement") between the Company and IFR Capital Plc
("IFR"), which was agreed by the Company's previous Board, under which the
Company's Euro denominated investment in IFR's senior debt (the "Senior
Facilities"), but not that of ACP Mezzanine Limited, was fixed into Sterling by
reference to the Euro-Sterling exchange rate on 20 December 2007. The effect of
the Agreement is that to the extent that the Company makes foreign exchange
gains or losses on the Senior Facilities then the Company is due to pay such
gain to, or receive such loss from, IFR on the date that the Company's total
debt commitments to IFR are reduced to zero. As at 31 December 2008, the
Company's investment in the Senior Facilities was valued at EUR 34.04 million.
The Company's annual financial statements as at 31 December 2008 (as
released on 27 March 2009) do not reflect this Agreement. As at 31 December
2008, the total unrealised foreign exchange loss as a result of the Agreement
was GBP 8.57 million. This would reduce the stated Group Net assets (excluding
Minority interests) and Company Net assets in those financial statements by the
same amount. This would result in a Group Net asset value per share as at 31
December 2008 of 58.7 pence per share rather than 62.8 pence per share as
reported. The Group Loss attributable to equity shareholders for the year
allowing for the unrealised foreign exchange loss would increase from GBP 93.70
million to GBP 102.27 million with Group loss per share (attributable to equity
shareholders) increasing from 46.2 pence per share to 50.3 pence per share.
In the interim financial statements to 30 June 2009, amendments will be made to
the December 2008 comparatives to reflect this unrealised loss by way of a prior
year adjustment.
The Board notes that no references were made to the Agreement in the Company's
announcement of the IFR transaction on 20 December 2007 or in the December 2007
annual financial statements. The value of the Senior Facilities within the
December 2007 annual financial statements was determined by reference to the
exchange rate within the Agreement.
On 24 April 2009, the Company announced its quarterly trading update.
That update incorrectly noted that the Company does not hedge its foreign
exchange exposures. As a result of the Agreement EUR 34.04 million out of a
total portfolio Euro exposure of EUR 94.2 million is hedged. As at 31 March
2009, the unrealised loss as a result of the Agreement reduced to GBP 7.70
million. Quarterly trading updates going forward will report the unrealised
currency loss or gain as a result of the Agreement.
It is noted that this unrealised loss has no impact on the distribution
announced on 24 April 2009.
Enquiries
* Hugh Field, Collins Stewart Europe, +44 (0) 207 523 8350 (Nominated Adviser)
* Tim McCall/James Longfield, Hogarth Partnership, +44 (0) 207 357 9477
This information is provided by RNS
The company news service from the London Stock Exchange
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