TIDMAPS
RNS Number : 1256N
Alpha Strategic PLC
03 September 2013
Alpha Strategic PLC ("Alpha Strategic" or "the Company")
3 September 2013
Results for the year ended 31 March 2013
Alpha Strategic, the specialist investment group, announces its
audited results for the year ended 31 March 2013.
Highlights
-- Revenue GBP493,000 (2012: GBP611,000)
-- Operating loss GBP2,161,000 (2012: loss GBP225,000)
-- Adjusted underlying operating loss GBP472,000 (2012: loss GBP225,000)
-- The adjusted underlying operating loss is before costs of
GBP1,689,000 comprising GBP1,439,000 impairment charges arising in
respect of goodwill and GBP250,000 in respect of changes in
management
-- Net loss GBP2,153,000 (2012: loss GBP220,000)
-- Net assets GBP3.1 million (2012: GBP5.2 million) - reflecting
the impact of the impairment of goodwill
-- Cash and debtor balances GBP2.8 million (2012: GBP3.5 million)
______________________________________________________________
Chairman's statement
The Board were delighted to welcome Alistair McKay as Chief
Executive on 1 October 2012. He brings a wealth of experience in
the financial services industry. Alistair has since been building
and broadening the in-house investment team in order to strengthen
our position within a demanding marketplace, whilst still retaining
our disciplined approach to focusing on the established end of the
fund management industry. Furthermore, Alpha Strategic has
broadened its search in the US fund management industry and
recruited a highly experienced, US based consultant focusing on
North America. We are encouraged by the in-roads we have made and
the deal pipeline we are now executing.
Through these initiatives I am pleased to report significant
progress towards our aim of creating a diversified portfolio of
income streams from established fund management businesses.
Financial Highlights
Alpha Strategic incurred a net loss of GBP2,153,000 (2012: loss
GBP220,000) for the year ended 31 March 2013 which included a
goodwill impairment charge of GBP1,439,000 (2012: nil) for IKOS
Asset Management ("IKOS"). As announced on 17 July 2013, the
Company mutually agreed with IKOS to terminate the Principal
Advisory Services Agreement, following the expiry of the minimum
revenue period on 31 March 2013. Also included in the loss for the
year are one-off costs of GBP250,000 for the management changes
that took place in this financial year.
Whilst global equity indices continued to rise in 2012, in
general managed futures strategies lost money for a second
consecutive year. This was no different for Winton's Global Futures
Fund ("GFF"), albeit the fund fared better as measured against
leading industry benchmarks. As a result of the challenging
environment, the income received from GFF was significantly
reduced.
The Company remains debt free and as at year end held cash
balances of GBP2,388,000 (2012: GBP3,309,000). The Company
continues to be mindful of overheads and operates a prudent
approach to cash management.
Management
As previously reported, Dr Nicola Meaden Grenham resigned as
Chief Executive in July 2012 and was appointed a Non-Executive
Director of the Company following her resignation. Alistair was
appointed Chief Executive on 1 October 2012. Alistair has over 20
years' experience in the financial services industry. He held a
number of senior investment banking roles, including head of the
Investment Management Advisory Group, at both Morgan Stanley and
Credit Suisse. During his time at Morgan Stanley and Credit Suisse,
Alistair was involved in many significant M&A and IPO
transactions in the asset management industry and has extensive
expertise in minority investing.
Outlook
Although our marketplace remains intensely competitive, Northill
Capital's backing and support, as majority shareholder, allows us
to be well placed to capitalise on opportunities where the business
is the right fit, at the right price and in a timely manner. We
have a strong pipeline with considerably greater potential than
ever before. We have signed 31 non-disclosure agreements since
October 2012 and made indicative financial proposals to 19
independent fund management firms and are in advanced discussions
with 4 of these. The discussions may or may not lead to an agreed
transaction. The Board is committed to helping the Company deliver
its strategy and I look forward to updating our shareholders of our
progress at the appropriate time.
Colin Barrow
Chairman
Enquiries:
Alpha Strategic PLC +44 (0)20 7222 3005
Colin Barrow
Alistair McKay
Kit Malthouse
Westhouse Securities Limited +44 (0)20 7601 6100
Tom Griffiths
Maitland +44 (0)20 7379 5151
Neil Bennett
Seda Ambartsumian
Statement of comprehensive income
For the year ended 31 March 2013
Notes 2013 2012
GBP000 GBP000
Revenue 493 611
Other administrative
expenses (965) (836)
Expenses relating to (250) -
the resignation of the
former Chief Executive
Impairment of goodwill (1,439) -
----------------------------------- ------ ---------- --------
Total administrative
expenses (2,654) (836)
Operating loss (2,161) (225)
Finance income
Interest receivable and
similar income 6 8 5
Loss before tax (2,153) (220)
Taxation 8 - -
Loss and total comprehensive
income for the year attributable
to shareholders (2,153) (220)
Basic and diluted loss
per share 9 (23.3) p (2.5) p
Statement of financial position
as at 31 March 2013
2013 2012
GBP000 GBP000
Assets
Non-current assets
Goodwill 414 1,853
Plant and equipment 6 7
420 1,860
Current assets
Trade and other receivables 400 168
Cash and cash equivalents 2,388 3,309
2,788 3,477
Total assets 3,208 5,337
Equity and liabilities
Capital and reserves attributable to
the equity holders of the parent
Share capital 127 142
Share premium 4,948 4,948
Merger reserve 1,341 1,341
Capital redemption reserve 15 -
Accumulated deficit (3,340) (1,187)
3,091 5,244
Current liabilities
Trade and other payables 117 93
117 93
Total equity and liabilities 3,208 5,337
Statement of changes in equity
for the year ended 31 March 2013
Attributable to equity holders of the Company
Share Capital
Share Capital Share redemption Merger Accumulated Total
Capital 'A' shares premium reserve reserve deficit equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
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 1 April 2012 92 50 4,948 - 1,341 (1,187) 5,244
Purchase of own
shares - (15) - 15 - - -
Loss and total comprehensive
income for the year
attributable to
shareholders - - - - - (2,153) (2,153)
At 31 March 2013 92 35 4,948 15 1,341 (3,340) 3,091
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 capital redemption reserve comprises the nominal value of
share capital purchased back by or returned to the Company and
subsequently cancelled. The reserve forms part of the company's
capital equity.
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 represents cumulative losses of the Company
attributable to equity holders.
Statement of cash flows
for the year ended 31 March 2013
2013 2012
GBP000 GBP000
Cash flow from operating activities
Loss before taxation (2,153) (220)
Finance income (8) (5)
Depreciation 4 5
Impairment of goodwill 1,439 -
Cash flow from operating activities
before changes in working capital (718) (220)
(Increase)/decrease in trade and other
receivables (232) 219
Increase/(decrease) in trade and other
payables 24 (118)
Net cash flow from operations (926) (119)
Investing activities
Purchases of plant and equipment (3) (3)
Interest received 8 5
Net cash flow from investing activities 5 2
Financing activities
Issue of ordinary shares - 2,493
Share issue expenses - (147)
Net cash flow from financing activities - 2,346
Net (decrease)/increase in cash and
cash equivalents in the year (921) 2,229
Cash and cash equivalents at beginning
of the year 3,309 1,080
Cash and cash equivalents at end of
the year 2,388 3,309
Cash and cash equivalents comprise:
Cash 2,388 3,309
Cash and cash equivalents at end of
the year 2,388 3,309
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 2013 Annual Report
and Accounts will be published in September 2013 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 2013 or the year ended 31 March 2012. The statutory accounts
for the year ended 31 March 2013 and 31 March 2012 have been
reported on by the Independent Auditors. The Independent Auditors'
Report on the Annual Report and Financial Statements for 31 March
2013 and 31 March 2012 was unqualified, did not draw attention to
any matters by way of emphasis, and did not contain a statement
under 498(2) or 498(3) of the Companies Act 2006.
Statutory accounts for the year ended 31 March 2012 have been
filed with the Registrar of Companies. The statutory accounts for
the year ended 31 March 2013, prepared under IFRS, will be
delivered to the Registrar in due course.
The 2013 accounts have been prepared on a basis consistent with
the accounting policies set out in the 2012 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
GBP2,153,000 (2012: loss GBP220,000) and a weighted average number
of shares in issue for the year of 9,225,758 (2012: 8,800,362).
The diluted loss per share in 2013 and 2012 is the same as the
basic loss per share as the losses in these 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 2013 Annual Report, together with the Notice of
Annual General Meeting, to be held on 26 September 2013, will
shortly be available on the Company's website,
www.alphastrategic.com, or can be obtained by contacting the
Company Secretary at 15-17 Grosvenor Gardens, London SW1W OBD.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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