RNS Number:7646Y
Bright Futures Group PLC
21 June 2007
Bright Futures Group Plc ("Bright Futures" or the "Company")
Final Results
Chairman's Statement
The trading subsidiaries and certain of its assets were disposed of to Sussex
Wellbeing Limited ("the buyer") for a consideration of #913,719 on 30 March
2006, which gave rise to a loss on disposal of these discontinued operations of
#470,532. The operating loss of the subsidiaries for the 3 months prior to 30
March 2006 are incorporated in the consolidated profit and loss account, and
amounted to #25,000. Following the disposal of the trading subsidiaries, Bright
Futures Group PLC ("the Company") has not had any trading businesses.
The remaining funds from the disposal, after the deduction of transaction costs
and other ongoing company expenses, amounted to #764,177 as at 31 December 2006.
The majority of these funds are invested on bank deposit attracting interest at
market rates, which contribute towards on-going expenses.
Costs are restrained to the absolute minimum necessary to maintain our AIM
listing whilst actively seeking a new acquisition opportunity.
Upon the divestiture of the company's operations, certain of the retail shop
leases remained in the name of Bright Futures Group plc. A full financial
indemnity was obtained from the buyer of our operations with respect to any
costs or liabilities arising from these leases. In conjunction with our
professional advisers and the buyer, we are in the process of either
re-assigning or surrendering these leases. This process does take quite some
time largely due to the logistics of obtaining landlords consent for
re-assignment. At the time of writing, there are 7 leases remaining.
Acquisition search
The former directors of the company resigned on 30 May 2006 and myself and
Marcus Yeoman were appointed as non-executive Directors with the objective of
identifying a business that could be acquired by the Company and which has a
good prospect of increasing shareholder value over time.
We have looked at a number of opportunities in a variety of sectors and have
come very close to entering into Heads of Agreement with three companies, which
for differing reasons did not proceed further. We still have a pipeline of
businesses under review and will continue to search actively for the right value
proposition for the Company.
Investment Strategy
Bright Future's shares were suspended from trading by the Stock Exchange on 2
April 2007 and will be de-listed after a further six months pursuant to AIM
rules pertaining to non-trading companies. The cash held at 31 December 2007
represented 1.6 pence per share.
Your Directors believe that the current investment strategy of continuing to
search for a suitable acquisition that has a good prospect of increasing
shareholder value over time, is the correct one. We will re-confirm this
strategy at the forthcoming Annual General Meeting.
In the event that a suitable acquisition opportunity is not identified by 30
September 2007, an Extraordinary General Meeting will be convened at that time
to re-consider the Investment Strategy and consider the possibility of
distributing Bright Futures' remaining funds to shareholders.
Duncan S Ralph
Non-executive Chairman
GROUP PROFIT AND LOSS ACCOUNT
As at 31 December 2006
Continued Discontinued Total
operations operations
Year ended Year ended Year ended Year ended
31 Dec 2006 31 Dec 2006 31 Dec 2006 31 Dec 2005
# # # #
TURNOVER 2,500 791,408 793,908 3,524,842
Cost of sales - (347,966) (347,966) (1,957,031)
GROSS PROFIT 2,500 443,442 445,942 1,567,811
Goodwill impairment - - - (2,036,014)
Goodwill amortisation - (2,083) (2,083) (129,768)
Operating costs (89,836) (465,824) (555,660) (2,487,240)
Administrative expenses (89,836) (467,907) (557,743) (4,653,022)
OPERATING LOSS (87,336) (24,465) (111,801) (3,085,211)
Net interest receivable and similar 17,937 3,652 21,589 7,797
charges
Loss on sale of discontinued operations - (470,532) (470,532) -
LOSS ON ORDINARY ACTIVITIES BEFORE (69,399) (491,345) (560,744) (3,077,414)
TAXATION
TAX ON LOSS ON ORDINARY ACTIVITIES - - - -
LOSS FOR THE FINANCIAL PERIOD (69,399) (491,345) (560,744) (3,077,414)
Loss per share - basic and diluted (0.15)p (1.03)p (1.17)p (6.43)p
Loss per share before goodwill 8 (0.15)p (1.02)p (1.17)p (1.91)p
amortisation - basic and diluted
The Group has no recognised gains or losses other than the results for the year
as set out above.
GROUP BALANCE SHEET
As at 31 December 2006
2006 2005
# #
FIXED ASSETS
Intangible fixed assets - 96,664
Tangible fixed assets - 439,985
- 536,649
CURRENT ASSETS
Stocks - 722,129
Debtors 3,783 380,547
Cash at bank 764,177 403,395
767,960 1,506,071
CREDITORS: amounts falling due within one year (6,826) (488,533)
NET CURRENT ASSETS 761,134 1,017,538
TOTAL ASSETS LESS CURRENT LIABILITIES 761,134 1,554,187
CREDITORS: amounts falling due after more than one year - (137,309)
PROVISONS FOR LIABILITIES - (95,000)
NET ASSETS 761,134 1,321,878
CAPITAL AND RESERVES
Called up share capital 2,392,501 2,392,501
Share premium account 147,821 147,821
Profit and loss account (1,779,188) (1,218,444)
EQUITY SHAREHOLDERS' FUNDS 761,134 1,321,878
GROUP CASH FLOW STATEMENT
For the year ended 31 December 2006
2006 2006 2005 2005
# # # #
Net cash outflow from operating activities (78,006) (364,177)
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received 23,333 14,778
Interest element of hire purchase (1,744) (6,981)
NET CASH INFLOW FROM RETURNS ON INVESTMENT AND 21,589
SERVICING OF FINANCE
7,797
CAPITAL EXPENDITURE
Payments to acquire tangible fixed assets (11,371) (229,145)
NET CASH OUTFLOW FROM
CAPITAL EXPENDITURE (11,371) (229,145)
AQUISTIONS AND DISPOSALS
Sale of business 831,012 -
Cash disposed of with business (396,815) -
-
NET CASH INFLOW FROM INVESTING ACTIVITIES 434,197 -
CASH INFLOW/(OUTFLOW) BEFORE FINANCING 366,409 (585,525)
FINANCING
Capital element of hire purchase (5,627) (22,508)
NET CASH OUTFLOW FROM FINANCING (5,627) (22,508)
INCREASE/(DECREASE) IN CASH 360,782 (608,033)
RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW
FROM OPERATING ACTIVITIES
Year ended Year ended
31 Dec 2006 31 Dec 2005
# #
Operating loss (111,801) (3,085,211)
Amortisation 2,083 129,768
Impairment - 2,036,014
Depreciation 35,235 125,213
Loss on disposal of fixed assets - 50,462
(Increase)/decrease in stocks (16,304) 117,663
(Increase)/decrease in debtors (295,236) 328,621
Increase/(decrease) in creditors 308,017 (161,707)
Increase in provisions - 95,000
Net cash outflow from operating profits (78,006) (364,177)
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
2006 2005
# #
Increase/(decrease) in cash in the year 360,782 (608,033)
Cash flow in respect of hire purchase 5,627 22,508
Change in net funds resulting from cash flows 366,409 (585,525)
New hire purchase - (132,528)
366,409 (718,053)
Change in net funds resulting from cash flows
Hire purchase disposed with subsidiaries 196,816 -
Movement in net funds in the year 563,225 (718,053)
Net funds at 31 December 2005 200,952 919,005
Net funds at 31 December 2006 764,177 200,952
ANALYSIS OF CHANGES IN NET FUNDS
At Other At
1 Jan 2006 Cash flows Non-cash 31 Dec 2006
changes
# # # #
Net Cash:
Cash in hand and at bank 403,395 360,782 - 764,177
Debt:
Hire purchase agreements (202,443) 5,627 196,816 -
Net funds 200,952 366,409 196,816 764,177
LOSS PER SHARE
The calculation of basic and diluted earnings per share on the loss of #560,744
(2005 - #3,077,414) and a weighted average number of ordinary shares in issue
during the period of 47,850,020 (2005 - 47,850,020).
There are no options outstanding at the end of the year and therefore the loss
per share is not diluted.
The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 December 2006 (but is derived from
those accounts). Statutory accounts for 31 December 2006 have not yet been
delivered to the Registrar of Companies. The auditors have reported on those
accounts under Section 235 of the Companies Act 1985; their reports were
unqualified and did not contain statements under section 237 (2) or (3) of the
Companies Act 1985.
Contact details
Liam Murray, Nominated Adviser
City Financial Associates Limited
Tel 020 7090 7800
This information is provided by RNS
The company news service from the London Stock Exchange
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