TIDMASTO
RNS Number : 1539J
AssetCo PLC
28 March 2018
Providers of management and resources to the fire and emergency
services in the Middle East
Date: 28 March 2018 Immediate Release
AssetCo plc
("AssetCo" or the "Company")
Preliminary results for the year to 30 September 2017
Statement by the Chairman, Tudor Davies
Introduction
We are pleased to report the results for the year to 30
September 2017.
Results
Profit after taxation in the period under review was GBP2.2m
(2016: GBP4.6m) on revenue of GBP24.9m (2017: GBP23.3m) with the
reduction in profitability being an increase in the litigation
costs incurred in our claim for negligence against Grant
Thornton.
The cash position remains strong with free cash balances of
GBP21.5m (2016: GBP15.5m).
Our business is based on the provision of an outsourced fire
service agreement with the Abu Dhabi government, which commenced in
April 2010, but since November 2016, has continued satisfactorily
on the same basis and on similar terms but with a contract entered
into on an arrears basis every five or six months, whilst a
longer-term arrangement is considered by the Abu Dhabi
government.
Claim against Grant Thornton
The claim for negligence against AssetCo's former auditors,
Grant Thornton, which with interest amounts to approximately
GBP40.0m, is now scheduled to be concluded at a trial in June
2018.
As previously reported by the Financial Reporting Council
("FRC") on conclusion of their investigations in relation to the
audits in 2009 and 2010, Grant Thornton were fined GBP3.5m and
given a severe reprimand. Separately, the audit partner Mr Robert
Napper was fined GBP200,000 and excluded from membership of the
Institute of Chartered Accountants for three years.
The FRC report on AssetCo entitled Particulars of Facts and Acts
of Misconduct: Grant Thornton UK LLP and Robert Napper, is
available on the FRC website www.frc.org.uk.
Outlook
Trading continues to be in line with management's expectations
and we will keep shareholders informed on any developments in
relation to the Grant Thornton claim and our Abu Dhabi
business.
Enquiries:
AssetCo plc Arden Partners plc TooleyStreet Communications
Tudor Davies, Chairman Nominated adviser and Fiona Tooley
Tel: +44 (0) 7785 703523 broker Email: fiona@tooleystreet.com
+44 (0) 20 7614 5900 John Llewellyn-Lloyd/ Mobile: +44 (0) 7785
Ciaran Walsh 703523
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: GBP33.6m
AssetCo plc
Income Statement
for the year to 30 September 2017
Year ended Year ended
30 September 30 September
2017 2016
Notes GBP000 GBP000
Revenue 24,881 23,300
Cost of sales (17,738) (16,550)
---- ----
Gross profit 7,143 6,750
Administrative expenses (4,891) (1,874)
---- ----
Operating profit 2,252 4,876
Finance income 8 21
Finance costs (87) (294)
---- ----
Profit before tax 2,173 4,603
Income tax expense - -
---- ----
Profit for the year 2,173 4,603
Earnings per share
Basic - pence 4 17.80 37.70
Diluted - pence 4 17.80 37.70
AssetCo plc
Statement of Comprehensive Income
for the year to 30 September 2017
Year ended Year ended
30 September 30 September
2017 2016
GBP000 GBP000
Recognised profit for the year 2,173 4,603
Other comprehensive (expense)/income
Exchange differences on translating
foreign operations (438) 1,858
---- ----
Other comprehensive (expense)/income,
net of tax (438) 1,858
---- ----
Total comprehensive income for the
year 1,735 6,461
AssetCo plc
Statement of Financial Position
As at 30 September 2017
At At
30 September 30 September
2017 2016
Notes GBP000 GBP000
Assets
Non-current assets
Property, plant and equipment - -
Cash held in respect of a bond 233 240
---- ----
Total non-current assets 233 240
---- ----
Current assets
Inventories - -
Trade and other receivables 10,685 12,498
Cash and cash equivalents 6 21,530 15,470
Cash held in respect of bonds 102 3,040
---- ----
Total current assets 32,317 31,008
---- ----
Total assets 32,550 31,248
Liabilities
Current liabilities
Trade and other payables 4,759 5,192
---- ----
Total current liabilities 4,759 5,192
---- ----
Total liabilities 4,759 5,192
---- ----
Shareholders' equity
Share capital 25,474 25,474
Share premium 64,941 64,941
Profit and loss account (62,624) (64,359)
---- ----
Total equity 27,791 26,056
---- ----
Total equity and liabilities 32,550 31,248
The financial statements were authorised for issue by the board
of directors on 27 March 2018 and were signed on its behalf by
Tudor Davies.
AssetCo plc
Statement of Changes in Equity
for the year to 30 September 2017
Profit
Share Share and loss Total
capital premium account Equity
GBP000 GBP000 GBP000 GBP000
Balance at 30 September 2015 25,474 64,941 (70,820) 19,595
Profit for the year - - 4,603 4,603
Other comprehensive income:
Exchange differences on translation - - 1,858 1,858
---- ---- ---- ----
Total comprehensive income for
the year - - 6,461 6,461
---- ---- ---- ----
Balance at 30 September 2016 25,474 64,941 (64,359) 26,056
Profit for the year - - 2,173 2,173
Other comprehensive expense:
Exchange differences on translation - - (438) (438)
---- ---- ---- ----
Total comprehensive income for
the year - - 1,735 1,735
---- ---- ---- ----
Balance at 30 September 2017 25,474 64,941 (62,624) 27,791
AssetCo plc
Statement of Cash Flows
for the year to 30 September 2017
Year ended Year ended
30 September 30 September
2017 2016
Notes GBP000 GBP000
Cash flows from operating activities
Cash generated from operations 5 3,094 2,151
Cash deposited in respect of a bond (104) -
Cash released in respect of bonds 3,246 -
Finance costs (87) (294)
---- ----
Net cash generated from operating activities 6,149 1,857
---- ----
Cash flows from investing activities
Finance income 8 21
---- ----
Net cash generated from investing activities 8 21
---- ----
Net change in cash and cash equivalents 6,157 1,878
Cash and cash equivalents at beginning
of year 15,470 12,836
Exchange differences on translation (97) 756
---- ----
Cash and cash equivalents at end of year 21,530 15,470
AssetCo plc
Notes to the Financial Statements
for the year to 30 September 2017
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 subsidiaries.
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.
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 financial statements, which were authorised for issue
by the board of directors on 27 March 2018.
2. Basis of preparation
The preliminary results for the year to 30 September 2017, which
do not form the statutory accounts of the Company, 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 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 Company's geographical settlement.
No secondary segmental information has been provided as, in the
view of the directors, the Company 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 Company is domiciled in the UK and operates a branch in the
United Arab Emirates. 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
Year ended 30 September 2017
Continuing
UAE Unallocated Operations
GBP000 GBP000 GBP000
Revenue
Revenue to external customers 24,881 - 24,881
---- ---- ----
Total revenue 24,881 - 24,881
Segment result
EBITDA and operating profit 6,450 (4,198) 2,252
Finance income - 8 8
Finance costs (87) - (87)
---- ---- ----
Profit before tax 6,363 (4,190) 2,173
Income tax - - -
---- ---- ----
Profit for the year 6,363 (4,190) 2,173
Segment assets and liabilities
Total assets 18,669 13,881 32,550
Total liabilities (3,348) (1,411) (4,759)
---- ---- ----
Total net assets 15,321 12,470 27,791
Other segment information
Total capital expenditure - - -
Year ended 30 September 2016
Continuing
UAE Unallocated Operations
GBP000 GBP000 GBP000
Revenue
Revenue to external customers 23,300 - 23,300
---- ---- ----
Total revenue 23,300 - 23,300
Segment result
EBITDA and operating profit 6,050 (1,174) 4,876
Finance income 7 14 21
Finance costs (294) - (294)
---- ---- ----
Profit before tax 5,763 (1,160) 4,603
Income tax - - -
---- ---- ----
Profit for the year 5,763 (1,160) 4,603
Segment assets and liabilities
Total assets 19,110 12,138 31,248
Total liabilities (4,414) (778) (5,192)
---- ---- ----
Total net assets 14,696 11,360 26,056
Other segment information
Total capital expenditure - - -
4. Earnings per share
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.
2017 2016
GBP000 GBP000
Profit for the year 2,173 4,603
---- ----
Weighted average number of ordinary shares in
issue 12,211,163 12,211,163
Basic and diluted earnings per share - pence 17.80 37.70
5. Reconciliation of profit before tax to cash generated from operations
2017 2016
GBP000 GBP000
Profit for the year before taxation 2,173 4,603
Finance costs 87 294
Finance income (8) (21)
Decrease/(increase) in receivables 1,191 (4,766)
(Decrease)/increase in payables (349) 2,041
---- ----
3,094 2,151
6. Analysis of net cash At 30 September
2017 2016
GBP000 GBP000
Cash at bank and in hand 21,530 15,470
---- ----
Cash and cash equivalents 21,530 15,470
In addition to the above GBP335,000 (2016: GBP3,280,000) was
held on deposit as security in respect of outstanding performance
bonds.
7. Contingent liabilities
Approximate maximum
liability
at 30 September
2017 2016
GBP000 GBP000
Performance bond related to a UAE based contract,
released in full in 2017 - 3,000
---- ----
Performance bond related to a UAE based contract,
expected to reduce to approximately GBP1.2 million
in 2018 and to be released in full in 2020 2,400 2,400
---- ----
Performance bond related to a UAE based contract,
released in full in 2017 - 130
---- ----
Performance bond related to a UAE based contract, 105 -
expected to be released in full in 2018
8. Post balance sheet events
The performance bond referred to in note 7 and expected to be released
in 2018 was released towards the end of December 2017. In February
2018, the company entered into a new performance bond of similar value
to that released in December 2017. It is expected that this will be
released in full later in 2018. There are no other post balance sheet
events to report.
9. Annual general meeting
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 2017 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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