RNS Number:0727X
Abingdon Capital PLC
30 March 2004
30 March 2004
Abingdon Capital plc
Final results for the year to 31 December 2003
Abingdon Capital plc reports its unaudited final results forthe year to 31
December 2003.
Business and financial highlights:
* Year of strong progress towards the creation of an integrated
financial services firm. The business now offers corporate finance, corporate
stockbroking, private equity andhedge fund management services
* Significant commitment made to wholly-owned subsidiary Corporate
Synergy plc - a fully integrated advisory and institutional stockbroker
focused on smaller companies
* Obtained regulatory approval for Mountcashel LLP, the hedge fund
management operation. Launch of first hedge fund expected in May
* Group turnover up 131% to #1,759,000 (2002: #763,000)
* Group losses before tax fell 46% to #592, 000 (2002: #1,096,000)
* Intend to pay a final dividend of 0.1p per share to shareholders on
the register on 23 April 2004 which, when combined with the 0.1p per share
interim dividend, makes a maiden full year dividend of 0.2p per share
* Group cash balance of #4,983,000 (2002: #5,033,000)
* Residual current asset investments of #446,000 (2002: #871,000)
Oliver Vaughan, Chairman, said:
"On the basis of current trading in 2004, the Group is performing well and
profitably. With the encouraging early performance of the repositioned Corporate
Synergy plc and the imminent launch of the new Mountcashel hedge fund, we
believe that Abingdon Capital should continue to progress positively in 2004."
Enquires, please contact:
Edward Vandyk Chief Executive Abingdon Capital020 7937 4445
Neil Boom/Jenny Leahy Gresham PR Ltd 020 7404 9000
Simon Hayes KBC Peel Hunt Ltd 020 7418 8900
Chairman's statement
We made strong progress in 2003 despite the difficult market conditions,
successfully broadening the size and scope of Abingdon Capital's activities.
With the addition of corporate stockbroking to our major trading brand Corporate
Synergy, the Group now has an integrated financial services business offering
corporate finance, corporate stockbroking, private equity and hedge fund
management services. It is our intention to provide focused, high quality advice
and execution across all our service lines. We are confident that there is a
great growth opportunity in the smaller companies' arena, especially when so
many City stockbrokers are moving out of this market to concentrate on companies
with larger market capitalisations.
As a consequence of improved stock market conditions in the second half, the
Group was able to lower substantially losses before tax, which were reduced to
#592,000 (2002: loss #1,096,000) on a strongly improved turnover of #1,759,000
(2002: #763,000). With revenues from Corporate Synergy plc now starting to flow,
we were able to invest in the Group and still have healthy cash balances. As at
31 December 2003 the Group had cash balances of #4,983,000 (2002: #5,033,000)and
residual current asset investments of #446,000 (2002: #871,000). We intend to
use some of the Group's cash reserves to continue the expansion and development
of Corporate Synergy.
As a further sign of the directors' confidence in the future of the business the
Company intends to pay a final dividend of 0.1p per share on 14 May 2004 to
holders on the register on 23 April 2004. This, when combined with the interim
dividend of 0.1p per share paid in October 2003 will make 0.2p per share for the
year (2002: nil) and is being paid from reserves.
Corporate Synergy plc ("CS plc")
We took advantage of quieter trading conditions in early 2003 to reposition
Corporate Synergy plc (CS plc) as an integrated house for quoted companies and
to strengthen our private equity capabilities. The repositioning of CS plc has
been a great success, coinciding with a strong recovery in the smaller quoted
companies market. Within a matter of months of receiving its broking approvals,
CS plc has raised over #7 million for clients in 2004, an activity it had never
undertaken hitherto, and announced its first full service IPO where it acted as
nominated adviser and broker and raised just under #2 million, predominantly
from institutional investors. With its growing team of equity analysts, CS plc
is also now producing regular company research on smaller quoted stocks, many of
which are ill served in this regard. This flow of information has added to CS
plc's visibility among our key targets and referrer base. We are confident that
the platform CS plc has built will continue to form the basis of future growth
and profitability.
Mountcashel LLP ("Mountcashel")
We are pleased to report that Mountcashel has now received its regulatory
approvals and is expected to launch its first hedge fund in May 2004. The Group
has invested considerable financial resource in Mountcashel, all of which has
been written off as made. This investment in Mountcashel accounts for the bulk
of the Group losses for the year.
The Board has considered carefully the Group's future relationship with
Mountcashel. It concluded that it would prefer to be an investor with defined
risk rather than a 50% partner with an open-ended future funding commitment.
Further, the Board believes that a smaller ownership in an operation where
management and employees have a larger stake is more likely lead to a better
overall financial performance for the Group.
Accordingly, the Board invited proposals from current employees and partners of
Mountcashel to provide further funding to reduce the Group's holding from 50% to
25%. The negotiations have been concluded successfully, and subject to
regulatory and other approvals, a further capital injection will be made by
employees, partners of Mountcashel and others, and the Group's interest in
Mountcashel will fall to 25%.
Board appointment
As announced on 29 March 2004 Gavin Casey, who has been Chairman of CS plc since
September 2003, has now joined the Board as a non-executive director. Gavin
Casey is a former chief executive of the London Stock Exchange.
Outlook
On the basis of current trading in 2004, the Group is performing well and
profitably. With the encouraging early performance of the repositioned CS plc
and the imminent launch of the new Mountcashel hedge fund, we believe that
Abingdon Capital should continue to progress positively in 2004.
Oliver Vaughan
Chairman
30 March 2004
Consolidated Profit and Loss Account
for the year ended 31 December 2003
2003 2002
Note #'000 #'000
Turnover 1 1,759 763
Cost of Sales (1,264) (634)
Gross profit 495 129
Administrative expenses:
Exceptional 2 - (169)
Other (1,436) (1,322)
Other operating income 20 44
Operating loss (921) (1,318)
Profit on disposal of investments 176 69
Investment income 2 -
Interest receivable and similar income 169 155
Interest payable and similar charges (18) (2)
Loss on ordinary activities
before taxation (592) (1,096)
Taxation 14 -
Loss on ordinary activities
after taxation (578) (1,096)
Dividends 3 (114) -
Retained Loss (692) (1,096)
Loss per share (pence) 4
Basic (1.02) (2.5)
Diluted (1.02) (2.5)
All results are derived fromcontinuing operations.
There were no recognised gains or losses other than those included in the profit
and loss account above.
Balance Sheets
as at 31 December 2003
Group Company
2003 2002 2003 2002
#'000 #'000 #'000 #'000
Fixed assets
Tangible assets 121 65 8 9
Investments 325 - 4,363 4,038
446 65 4,371 4,047
Current assets
Investments 446 871 115 489
Debtors 604 1,403 46 1,152
Cash at bank and in hand 4,983 5,033 2,985 2,845
6,033 7,307 3,146 4,486
Creditors: Amounts falling
due within one year (589) (888) (1,727) (1,806)
Net current assets 5,444 6,419 1,419 2,680
Total assets less current liabilities 5,890 6,484 5,790 6,727
Capital and reserves
Called up share capital 58 57 58 57
Share premium 845 748 845 748
Other reserves 2,708 2,708 2,708 2,708
Profit and loss account 2,279 2,971 2,179 3,214
Equity shareholders' funds 5,890 6,484 5,790 6,727
Consolidated Cash Flow Statement
for the year ended 31 December 2003
2003 2002
Note #'000 #'000
Net cash outflow from
operating activities 5 (229) (956)
Returns on investment
and servicing of finance
Interest received 168 156
Interest paid (18) (1)
Dividends on fixed asset investments - 4
150 159
Taxation paid (127) (180)
Capital expenditure
and financial investments
Purchase of tangible fixed assets (107) (20)
Purchase of fixed asset investments (325) -
Purchase of current asset investments (172) (2,480)
Saleof current asset investments 717 2,589
Loan advances - (200)
113 (111)
Acquisitions and disposals
Cost of purchase of subsidiary - (610)
Cash acquired with subsidiary - 36
- (574)
Equity dividends paid (56) -
Cash outflow before management
of liquid resources and financing (149) (1,662)
Management of liquid resources
Decrease in short term deposits 179 1,729
Financing
Issue of shares 99 -
Increase in cash in the year 129 67
Approved and signed on behalf of the Board of Directors on 30 March 2004.
A C Roberts E Vandyk
Finance Director Chief Executive
Notes to the preliminary results
for the year ended 31 December 2003
1. Segmental Analysis
2003 2002
Total Total
#'000 #'000
Turnover
Corporate finance advisory and stockbroking 1,467 763
Principal trading 292 -
1,759 763
Loss before tax
Corporate finance advisory and stockbroking 69 (864)
Principal trading (661) (232)
(592) (1,096)
Net assets
Corporate finance advisory and stockbroking 1,332 1,267
Principal trading 4,558 5,217
5,890 6,484
All of the Group's results are derived from activities within the United
Kingdom.
2. Exceptional Items
2003 2002
#'000 #'000
Fees of corporate transactions
including demerger - 162
Write-off of goodwill - 7
- 169
3. Dividends
2003 2002
#'000 #'000
On equity shares:
Interim paid of 0.1p per share 56 -
Final proposed of 0.1p per share 58 -
114 -
4. Loss per ordinary share
The calculation of the basic and diluted loss per ordinary share is based on
loss on ordinary activities after tax and on the weighted average number of
ordinary shares in issue during the year. In view of the losses of the group,
the effect of the exercise of share options was not dilutive in either year.
Reconciliations of the loss and weighted average number of shares used in the
calculations are set out in the table below.
2003 2002
Weighted Earnings Weighted Earnings
average per average per
Earningsnumber of share Earnings number of share
#'000 shares pence #'000 shares pence
Basic loss per (578) 56,857,486 (1.02) (1,096) 44,712,338 (2.50)
Ordinary share
5. Reconciliationof operating loss to net cash outflow from operating
activities
2003 2002
#'000 #'000
Operating loss (921) (1,318)
Goodwill written off - 7
Income from investments - (4)
Provisions against investments 38 320
Depreciation of fixed assets 51 34
Decrease/(Increase) in debtors 793 (403)
(Decrease)/Increase in creditors(190) 408
Net cash outflow from operating activities (229) (956)
6. Status Of Financial Information
The financial information set out in the announcement does not constitute the
company's statutory accounts for the year ended 31 December 2003 or 2002. The
financial information for the year ended 31 December 2002 is derived from the
statutory accounts for that year which have been delivered to the Registrar of
Companies. The auditors reported on those accounts; their report was unqualified
and did not contain a statement under s237(2) or (3) Companies Act 1985. The
statutory accounts for the year ended 31 December 2003 will be finalised on the
basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the company's annual general meeting.
This information is provided by RNS
The company news service from the London Stock Exchange
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