TIDMAPS
RNS Number : 2894L
Alpha Strategic PLC
03 September 2012
Alpha Strategic PLC ("Alpha Strategic" or "the Company")
3 September 2012
Results for the year ended 31 March 2012
Alpha Strategic, the specialist investment group, is pleased to
announce its audited results for the year ended 31 March 2012.
Highlights
-- Revenue GBP611,000 (2011: GBP610,000)
-- Operating loss GBP225,000 (2011: GBP123,000)
-- Net Assets GBP5.2 million (2011: GBP3.1 million)
-- Cash and debtor balance GBP3.5 million (2011: GBP1.5 million)
-- GBP2.3m share placing (net of costs)
Chairman's statement
The Company is pleased to announce its final results for the
year ended 31 March 2012.
The market environment remains difficult with continued
volatility around the world, caused in part by sovereign debt
concerns particularly in the Eurozone, fragile investor confidence
and subdued fund flows.
This challenging environment has been reflected in both the
assets under management of our two income generating funds,
Winton's Global Futures Fund ("GFF") and IKOS's FX Fund ("FXF"),
and to some extent in their performance. GFF produced a net return
of 1.5% for the period, off the back of a solid performance in the
previous year (approximately 9% net return) and maintained assets
under management at approximately $30million, following growth last
year. FXF had a stellar year in 2010 (net return of 27%) and was
showered with praise and awards accordingly. The 12 months to 31
March 2012 produced performance of negative 14% and hence we relied
upon the guaranteed basic level of income in our agreement with
them. The hedge fund sector was down approximately 4% for the same
period.
Both IKOS and Winton have an outstanding track record of
performance over the long term, but past performance, as they say,
is no indication of future performance, and the best approach in my
view is to look to quality. Both these managers invest heavily in
their research and investment teams. Both are systematic, and hence
unemotional. Both are top quality managers as a result.
As I said in my Interim Statement, we have come close to making
new investments during the past year. However, due to our rigorous,
selective approach and our strong preference for high quality
investments we chose not to proceed.
Investors may well be frustrated with the slow pace of
acquisition that this policy causes but we believe it to be right
and will stay with it. It should be evident that we have taken
steps, in the partnership with Northill Europe Holdings SARL
("Northill"), to improve our ability to execute deals for cash,
refinancing if necessary in the market afterwards.
We will also be strengthening the management team in the coming
weeks with the arrival of an experienced M & A professional
with the dealmaking skills we need to execute transactions in this
complex marketplace.
Financial Results
Group revenue remained static compared to the previous year at
GBP611,000 (2011 - GBP610,000) but our increased promotional
activity combined with more preliminary work on transactions which
did not sadly proceed, meant that our overhead was somewhat higher
than last year. On the upside, last year saw the end of the
amortisation of an intangible asset relating to a portion of
guaranteed income, and the two movements combined meant that the
loss for the year only increased from GBP123,000 in 2011 to
GBP220,000 in 2012. The main financial feature of the year was of
course the GBP2.5 million placing with Northill, which had the
effect of significantly strengthening the balance sheet and
augmenting our cash reserves so that we held GBP3.3 million in the
bank at the year end. We continue to operate a very prudent
approach in cash management and to bear down on costs where we can,
ever anxious to preserve our resources for deployment in future
acquisitions.
Management
On 4 July 2012 Nicola Meaden Grenham resigned from her position
as Chief Executive but continues to work closely with Alpha
Strategic in a consultancy capacity and as a Non-Executive
Director. Florence Lombard stepped down from the Board as
Non-Executive Director on 30 June 2012, due to other business
commitments in the USA.
I would like to acknowledge the considerable contribution both
Nicola and Florence have made to Alpha Strategic.
While we work towards the appointment of Nicola's successor I am
acting as Chief Executive alongside my role as Executive
Chairman.
Outlook
Despite challenging times, the balance sheet remains strong
allowing the Board to manage the business and assess new investment
opportunities without short-term cash concerns.
We continue to believe in the long-term prospects for Alpha
Strategic and remain focused on delivering value to our
shareholders, whom I thank for their continued patience and
support.
Colin Barrow
Chairman
Enquiries:
Alpha Strategic PLC +44 (0)20 7222 3005
Colin Barrow
Kit Malthouse
Westhouse Securities Limited +44 (0)20 7601 6100
Tom Griffiths
Maitland +44 (0)20 7379 5151
Neil Bennett
Rowan Brown
Statement of comprehensive income
for the year ended 31 March 2012
2012 2011
Notes GBP000 GBP000
Revenue 611 610
Other administrative
expenses (836) (609)
Amortisation of intangible
assets - (124)
----------------------------------- ------ -------- -------
Total administrative
expenses (836) (733)
Operating loss (225) (123)
Finance income
Interest receivable and 5 -
similar income
Loss before tax (220) (123)
Taxation - 34
Loss and total comprehensive
income for the year attributable
to shareholders (220) (89)
Basic and diluted loss
per share 2 (2.50) p (1.97) p
Statement of financial position
as at 31 March 2012
2012 2011
GBP000 GBP000
Assets
Non-current assets
Goodwill 1,853 1,853
Plant and equipment 7 9
1,860 1,862
Current assets
Trade and other receivables 168 387
Cash and cash equivalents 3,309 1,080
3,477 1,467
Total assets 5,337 3,329
Equity and liabilities
Capital and reserves attributable
to the equity holders of the
parent
Share capital 142 95
Share premium 4,948 2,649
Merger reserve 1,341 1,341
Accumulated deficit (1,187) (967)
5,244 3,118
Current liabilities
Trade and other payables 93 211
93 211
Total equity and liabilities 5,337 3,329
Statement of changes in equity
for the year ended 31 March 2012
Attributable to equity holders of the Company
Share
Share Capital Share Merger Accumulated Total
Capital 'A' shares premium reserve deficit equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 April 2010 45 50 2,649 1,341 (878) 3,207
Loss and total
comprehensive
income for the
year attributable
to shareholders - - - - (89) (89)
At 1 April 2011 45 50 2,649 1,341 (967) 3,118
Loss and total
comprehensive
income for the
year attributable
to shareholders - - - - (220) (220)
Shares issued
in the year 47 - 2,446 - - 2,493
Share issue expenses - - (147) - - (147)
At 31 March 2012 92 50 4,948 1,341 (1,187) 5,244
Share Capital is the amount subscribed for ordinary shares at
nominal value. Share Capital 'A' shares is the amount subscribed
for 'A' ordinary shares at nominal value.
Share premium represents the excess of the amount subscribed for
share capital over the nominal value of these shares net of share
issue expenses.
The merger reserve comprises the excess of the amount subscribed
for share capital over the nominal value of ordinary shares issued
in respect of the acquisition of subsidiaries in accordance with
the merger relief provisions of the Companies Act 1985 and the
Companies Act 2006.
Accumulated deficit represent cumulative losses of the Group
attributable to equity holders.
Statement of cash flows
for the year ended 31 March 2012
2012 2011
GBP000 GBP000
Cash flow from operating activities
Operating loss before taxation (220) (123)
Finance income (5) -
Depreciation 5 5
Amortisation - 124
Cash flow from operating activities
before changes in working capital (220) 6
Decrease/(increase) in trade
and other receivables 219 (212)
(Decrease)/increase in trade
and other payables (118) 163
Net cash flow from operations (119) (43)
Investing activities
Purchases of plant and equipment (3) (3)
Interest received 5 -
Net cash flow from investing
activities 2 (3)
Financing activities
Issue of ordinary shares 2,493 -
Share issue expenses (147) -
Net cash flow from financing 2,346
activities -
Net increase/(decrease) in cash
and cash equivalents in the
year 2,229 (46)
Cash and cash equivalents at
beginning of the year 1,080 1,126
Cash and cash equivalents at
end of the year 3,309 1,080
Cash and cash equivalents comprise:
Cash 3,309 1,080
Cash and cash equivalents at
end of the year 3,309 1,080
1. Basis of preparation
Whilst the financial information included in this announcement
has been prepared in accordance with International Financial
Reporting Standards (IFRS), this announcement does not contain
sufficient information to comply with IFRS. The 2012 Annual Report
and Accounts will be published in September 2012 and a copy will be
posted on the Group's website (www.alphastrategic.com).
The financial information set out in the announcement does not
constitute the Company's statutory accounts for the year ended 31
March 2012 or the year ended 31 March 2011. The financial
information for the year ended 31 March 2011 is extracted from the
statutory accounts of Alpha Strategic plc. The auditors, BDO LLP,
reported on those accounts; their report was unqualified and did
not contain a statement under section 498(2) or 498(3) of the
Companies Act 2006.
The summarised statement of financial position at 31 March 2012
and the summarised statement of comprehensive income, summarised
cash flow statement and associated notes for the year then ended
have been extracted from the group's financial statements. Those
financial statements have not yet been delivered to the
Registrar.
The 2012 accounts have been prepared on a basis consistent with
the accounting policies set out in the 2011 accounts.
2. Loss per share
The calculation of the basic loss per share is based upon the
loss after tax attributable to ordinary shareholders of GBP220,000
(2011: loss GBP89,000) and a weighted average number of shares in
issue for the year of 8,800,362 (2011: 4,520,621).
The diluted loss per share in 2012 and 2011 is the same as the
basic loss per share as the losses in the years have an
anti-dilutive effect.
3. Dividend
The directors do not recommend the payment of a dividend for the
year.
4. Copies of the financial statements
Copies of the 2012 Annual Report, together with the Notice of
Annual General Meeting, to be held on 26 September 2012, will be
shortly available on the Company's website, www.alphastrategic.com,
or can be obtained by contacting the Company Secretary at 66
Buckingham Gate, London SW1E 6AU.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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