TIDMASTO
RNS Number : 4578P
AssetCo PLC
10 June 2020
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
10 June 2020 Immediate Release
AssetCo plc
Providers of management and resources to the fire and emergency
services in the Middle East
("AssetCo" or the "Company")
2020 Half-year Report
for the six months ended 31 March 2020
Chairman's statement
Our focus has continued to be on regaining and developing new
business in the Middle East and realising the cash in receivables
and bonds from the previous contract and completing the action for
negligence against Grant Thornton. The results for the six months
to 31 March 2020 are a loss of GBP0.7m, reflecting the costs of
operating in Abu Dhabi, dealing with business development, and the
costs associated with the Court of Appeal hearing during January
2020.
We have made good progress collecting the outstanding
receivables and bonds but the pursuit of new business and gaining
new revenues has been slowed considerably by the CV19 lockdowns.
This has resulted in a strong liquidity with cash balances of
GBP29.6m, of which GBP26.1m is available and GBP3.5m cash held in
respect of bonds, of which GBP1.2m has been received after the end
of the half year, with the remainder expected to be released over
the course of the year. Whilst reasonably good progress had been
made in pursuing opportunities in the Middle East, the effects of
the CV19 pandemic has resulted in delays to the Board's
expectations for new business generation and revenues. The Board
considers that the Company's strong financial position may also be
suitably deployed in investing in other revenue-producing
opportunities that may arise from the current economic
recession.
Capital Reorganisation and Reduction
We are continuing our presence in the Middle East and awaiting
the Court of Appeal's decision in respect of the claim against
Grant Thornton. However, the Board considers that a large
proportion of the cash balances are surplus to these requirements,
and although future investments may arise, it may also be
appropriate to return surplus cash to shareholders.
Whilst no formal Board decision has been made on the use of
these funds, we are currently in the position of having net assets
of GBP28.4m, cash balances of GBP26m but negative distributable
reserves of GBP62m. The Board would like to take the opportunity to
create distributable reserves to provide the flexibility to be able
to make future distributions to shareholders. A Circular will be
posted to shareholders today seeking shareholder approval for a
Capital Reduction which, if approved, will then be subject to the
necessary Court approvals which we expect to be heard during August
2020.
Negligence Claim against Grant Thornton
As previously reported, in January 2019, AssetCo Plc was awarded
damages of GBP22.4m plus interest of approximately GBP6.5m plus
GBP5m on account of costs. On 29 March 2019, Grant Thornton paid
GBP34.3m into Court on which interest is accruing at the rate of 8
% per annum, and the release of these funds is now dependent on the
decision of the Court of Appeal which was heard in January 2020. We
were expecting to hear the result of this appeal at some stage
before or in the early part of the summer but have received no
indication of when exactly this decision may be.
Outlook
We shall keep shareholders informed of any developments
regarding the Capital Reorganisation, the result of the Court of
Appeal, and on the further development of the business in UAE.
Tudor Davies
Chairman
AssetCo plc
Income statement
for the six months ended 31 March 2020
Six months ended Year ended
Note 31 March 31 March 30 September
2020 2019 2019
GBP'000 GBP'000 GBP'000
--------- --------- -------------
Revenue - 5,210 5,345
Cost of sales - (4,165) (4,237)
--------- --------- -------------
Gross profit - 1,045 1,108
Administrative expenses (714) (660) (1,810)
--------- --------- -------------
Operating (loss)/profit (714) 385 (702)
Finance income 11 2 9
Finance costs (39) (25) (70)
(Loss)/profit before taxation (742) 362 (763)
Income tax expense - - -
--------- --------- -------------
(Loss)/profit for the period (742) 362 (763)
--------- --------- -------------
(Loss)/earnings per share (EPS): 3
Basic - pence (6.08) 2.96 (6,25)
Diluted - pence (6.08) 2.96 (6.25)
AssetCo plc
Statement of comprehensive income
for the six months ended 31 March 2020
Six months ended Year ended
31 March 31 March 30 September
2020 2019 2019
GBP'000 GBP'000 GBP'000
--------- --------- -------------
Recognised (loss)/profit for the
period (742) 362 (763)
Other comprehensive (expense) /
income:
Exchange differences on translating
foreign operations (743) (146) 648
Other comprehensive (expense) /
income net of tax (743) (146) 648
--------- --------- -------------
Total comprehensive (expense) /
income for the period (1,485) 216 (115)
--------- --------- -------------
AssetCo plc
Statement of financial position
as at 31 March 2020
At 31 March At 30 September
2020 2019 2019
Note GBP'000 GBP'000 GBP'000
--------- --------- ----------------
Assets
Non-current assets
Property, plant and equipment - 16 -
Total non-current assets - 16 -
--------- --------- ----------------
Current assets
Trade and other receivables 4 116 10,692 11,222
Cash and cash equivalents 5 26,075 18,257 17,101
Cash held in respect of bonds 3,464 3,290 3,487
--------- --------- ----------------
Total current assets 29,655 32,239 31,810
--------- --------- ----------------
Total assets 29,655 32,255 31,810
--------- --------- ----------------
Share capital 25,474 25,474 25,474
Share premium 64,941 64,941 64,941
Profit and loss account (62,045) (60,229) (60,560)
--------- --------- ----------------
Total equity 28,370 30,186 29,855
Liabilities
Current liabilities
Trade and other payables 6 1,285 2,069 1,955
--------- --------- ----------------
Total current liabilities 1,285 2,069 1,955
--------- --------- ----------------
Total liabilities 1,285 2,069 1,955
--------- --------- ----------------
Total equity and liabilities 29,655 32,255 31,810
--------- --------- ----------------
AssetCo plc
Statement of changes in equity
for the six months ended 31 March 2020
Share Share premium Profit and Total
Capital loss reserve equity
GBP'000 GBP'000 GBP'000 GBP'000
--------- -------------- -------------- --------
Balance at 1 October 2018 25,474 64,941 (60,445) 29,970
Profit for the period - - 362 362
Other comprehensive income:
Exchange differences on translation - - (146) (146)
Total comprehensive income for
the period - - 216 216
--------- -------------- -------------- --------
Balance at 31 March 2019 25,474 64,941 (60,229) 30,186
--------- -------------- -------------- --------
(Loss) for the period - - (1,125) (1,125)
Other comprehensive expense:
Exchange differences on translation - - 794 794
Total comprehensive income for
the period - - (331) (331)
--------- -------------- -------------- --------
Balance at 30 September 2019 25,474 64,941 (60,560) 29,855
--------- -------------- -------------- --------
(Loss) for the period - - (742) (742)
Other comprehensive income:
Exchange differences on translation - - (743) (743)
--------- -------------- -------------- --------
Total comprehensive income for
the period - - (1,485) (1,485)
--------- -------------- -------------- --------
Balance as at 31 March 2020 25,474 64,941 (62,045) 28,370
--------- -------------- -------------- --------
AssetCo plc
Statement of cash flows
for the six months ended 31 March 2020
Six months ended Year ended
31 March 31 March 30 September
2020 2019 2019
Note GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from/(used by) operations 7 9,653 2,630 1,709
Cash deposited in respect of performance
bonds - (1,150) (2,470)
Cash released in respect of performance
bonds - - 1,123
Finance costs (39) (25) (70)
Net cash generated from/(used by)
operating activities 9,614 1,455 292
--------- --------- -------------
Cash flows from investing activities
Finance income 11 2 9
Net cash generated from investing
activities 11 3 9
--------- --------- -------------
Net change in cash and cash equivalents 9,625 1,457 301
Cash and cash equivalents at the
beginning of the period 17,101 16,800 16,800
Exchange differences on translation (651) - -
Cash and cash equivalents at the
end of the period 26,075 18,257 17,101
--------- --------- -------------
AssetCo plc
Notes to the Financial Statements
for the six months ended 31 March 2020
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 the United Arab Emirates ("UAE") and its strategy is to develop
this business. As announced on 16 October 2018, the Company received,
on 15 October 2018, notice of termination of its contract in the
UAE. The contract terminated on 17 December 2018. Since termination,
the company has been tendering for new business, providing consultancy
and dealing with the outstanding bonds and receivables.
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 Company operates from one site in
UAE. As at period end, the Company had no subsidiaries.
AssetCo plc shares are listed on the Alternative Investment Market
("AIM") of the London Stock Exchange (AiM: symbol ASTO.L).
2. Basis of preparation
The financial information in the Half-year Report has been prepared
using the recognition and measurement principles of International
Accounting Standards, International Financial Reporting Standards
and Interpretations adopted for use in the European Union (collectively
Adopted IFRSs). The principal accounting policies used in preparing
the Half-year Report are those the Group expects to apply in its
financial statements for the year ending 30 September 2020 and,
except as set out below, are unchanged from those disclosed in
the Annual Report and Financial Statements for the year ended
30 September 2019.
IFRS 16 'Leases' was adopted by the company with effect from 1
October 2019 but it has had no significant effect on either the
company's balance sheet position or income statement. The company
has adopted IFRS 16 using the modified retrospective transition
approach, which does not require the restatement of comparative
figures. Adoption of IFRS 16 has not resulted in right of use
assets and lease liabilities being recognised on the balance sheet.
The financial information for the six months ended 31 March 2020
and the six months ended 31 March 2019 is unaudited and does not
constitute the Company's statutory financial statements for those
periods. The comparative financial information for the full year
ended 30 September 2019 has, however, been derived from the audited
statutory financial statements for that period. A copy of those
statutory financial statements has been delivered to the Registrar
of Companies.
While the financial figures included in this Half-year Report
have been computed in accordance with IFRSs applicable to interim
periods, this Half-year Report does not contain sufficient information
to constitute an interim financial report as that term is defined
in IAS 34.
The financial statements have been presented in sterling to the
nearest thousand pounds (GBP'000) except where otherwise indicated
.
3. (Loss)/earnings per share
Basic (loss)/earnings per share is calculated by dividing the
(loss)/profit attributable to ordinary equity holders of the Company
by the weighted average number of ordinary shares outstanding
during the period.
Six months ended Year ended
31 March 31 March 30 September
2020 2019 2019
----------- ----------- -------------
GBP'000 GBP'000 GBP'000
(Loss)/profit for the year (742) 362 (763)
----------- ----------- -------------
Weighted average number of ordinary
shares in issue 12,211,163 12,211,163 12,211,163
Basic (loss)/earnings per share
(EPS) - pence (6.08) 2.96 (6.25)
There are no dilutive potential ordinary shares and, therefore,
the calculation of diluted (loss)/earnings per share is the same
as for basic (loss)/earnings per share.
4. Trade and other receivables
31 March 31 March 30 September
2020 2019 2019
GBP'000 GBP'000 GBP'000
--------- --------- -------------
Trade receivables - - 11,054
Other receivables 68 119 83
Prepayments and accrued income 48 10,573 85
--------- --------- -------------
116 10,692 11,222
--------- --------- -------------
5. Cash and cash equivalents
31 March 31 March 30 September
2020 2019 2019
GBP'000 GBP'000 GBP'000
--------- --------- -------------
Cash at bank and in hand 26,075 18,257 17,101
--------- --------- -------------
Cash and cash equivalents 26,075 18,257 17,101
--------- --------- -------------
UK sterling 25,375 3,957 15,894
UAE Dirhams 700 14,300 1,207
--------- --------- -------------
26,075 18,257 17,101
--------- --------- -------------
In addition to the above UAE Dirhams amounting to GBP3,464,000
(31 March 2019: GBP3,290,000 and 30 September 2019: GBP3,487,000)
were held on deposit as security in respect of outstanding
performance bonds - see note 8 Contingent liabilities.
6. Trade and other payables
31 March 31 March 30 September
2020 2019 2019
GBP'000 GBP'000 GBP'000
--------- --------- -------------
Trade payables 34 225 166
Other payables 34 149 87
Other taxation and social security 3 3 3
Accruals and deferred income 1,214 1,692 1,699
--------- --------- -------------
1,285 2,069 1,955
--------- --------- -------------
7. Reconciliation of profit before taxation to net cash (used by)
/ generated from operations
Six months ended Year ended
31 March 30 September
2020 2019 2019
GBP'000 GBP'000 GBP'000
--------- -------- -------------
(Loss)/profit for the period
before taxation (742) 362 (763)
Depreciation - 10 26
Finance costs 39 25 70
Finance income (11) (2) (9)
Decrease in receivables 11,031 5,305 5,670
(Decrease) in payables (664) (3,070) (3,285)
Cash generated from/(used by)
operations 9,653 2,630 1,709
--------- -------- -------------
8. Contingent liabilities
Approximate maximum potential liability
31 March 30 September
2020 2019 2019
GBP'000 GBP'000 GBP'000
------------ ------------ ----------------
Warranty bond related to a UAE
based contract, expected to
be released in full in 2020
(31 March 2019: Performance
bond related to the same UAE
based contract) 1,270 1,200 1,270
------------ ------------ ----------------
Performance bond related to
a UAE based contract, expected
to be released in full during
2020 1,100 1,050 1,100
Performance bond related to
a UAE based contract, expected
to be released in full during
2020 1,100 1,050 1,100
9. Electronic communications
The Company is not proposing to bulk print and distribute hard
copies of this Half-year Report unless specifically requested
by individual shareholders; it can be downloaded from the Company's
website at www.assetco.com .
News updates, regulatory news, & financial statements can be
viewed and downloaded from the Company's website, www.assetco.com
. Copies can also be requested, in writing to, The Company Secretary,
AssetCo plc, Singleton Court Business Park, Wonastow Road, Monmouth,
Monmouthshire NP25 5JA.
Enquiries:
AssetCo plc
Tudor Davies, Chairman
Tel: +44 (0) 7785 703523
or +44 (0) 20 7614 5900
Arden Partners plc
Nominated adviser and broker
John Llewellyn-Lloyd/Ciaran Walsh
Corporate Broking: Simon Johnson
Tel: +44 (0) 20 7614 5900
Tooley Street Communications
IR and media relations
Fiona Tooley
Mobile: +44 (0) 7785 703523
Email: fiona@tooleystreet.com
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END
IR FLMRTMTAMBJM
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