Interim Results
16 August 2004 - 9:00AM
UK Regulatory
RNS Number:9721B
Abingdon Capital PLC
16 August 2004
Abingdon Capital plc
Interim results for the six months to 30 June 2004
Abingdon Capital plc reports its unaudited interim results for the six months to
30 June 2004 and a return to profitability.
Financial and operational highlights:
* Group turnover up 132% to #1,722,000 (2003: #742,000)
* Group pre-tax profit of #270,000 (2003: pre-tax loss of #228,000)
* Proposed interim dividend of 0.125p per share represents 25% increase
on last year (2003: 0.1p per share)
* Group cash balance of #3,436,000
* Continued strong performance and significant growth from the Group's
principal operating subsidiary, Corporate Synergy, now established as a fully
integrated securities house servicing smaller companies
* Launch of first hedge fund in May for Mountcashel LLP (the Group's 25%
owned hedge fund management subsidiary - commitment of $16 million from
initial investors
* Further strengthening of the Board following the appointment during
the period of former Chief Executive of the London Stock Exchange,
Gavin Casey
Commenting on today's announcement, Oliver Vaughan, Chairman of Abingdon
Capital, said:
"The Board looks to the rest of the year with confidence. Whilst overall
performance for the year may well be affected by market conditions, which remain
uncertain, our principal operating subsidiary, Corporate Synergy, continues to
attract new clients, greater market recognition and improving levels and quality
of business."
Enquires, please contact:
Oliver Vaughan, Chairman Abingdon Capital 020 7937 4445
Edward Vandyk, Chief Executive
Katharine Sharkey/Jenny Leahy Gresham PR Ltd 020 7404 9000
Simon Hayes KBC Peel Hunt Ltd 020 7418 8900
Chairman's Statement
I am pleased to be able to report to you that the cautious optimism expressed in
my previous statements is beginning to be turned into reality.
The results for the six months ended 30 June 2004 show pre-tax profits for the
Group as a whole of #270,000. The tax charge in the period is nil leaving
profits after tax at the same figure.
In the light of the results it is proposed to pay an increased interim dividend
of 0.125p per share on 24th September 2004 to holders on the register on 3rd
September 2004, compared with 0.1p for the maiden interim dividend paid in 2003.
I am delighted to have been able to welcome Gavin Casey, formerly Chief
Executive of the London Stock Exchange, to our Board during the period under
review.
The underlying feature of these results was the strong performance from the
Group's principal operating subsidiary, Corporate Synergy.
Corporate Synergy plc
The turnover of #1.65 million generated by Corporate Synergy for the six months
ended 30 June 2004 exceeded that for the whole of the previous year and the
profits attributable to Corporate Synergy exceeded #400,000 for the period. 2004
has been a period of significant growth and change at Corporate Synergy with the
establishment of the firm as a fully integrated securities house servicing
smaller quoted companies. Corporate Synergy now provides corporate finance,
research and sales services to a growing list of clients. Compared with this
time last year staff numbers at Corporate Synergy have almost doubled and it now
acts for 22 retained client companies, compared with 14 at the end of 2003. In
addition Corporate Synergy has raised in excess of #20 million for client
companies (a service not offered this time last year) and has undertaken 19
transactions in the period (including 4 new issues and a further 7 placings)
compared with 16 in the whole of 2003.
On 1 July 2004 Corporate Synergy announced a new management structure with
Justin Lewis, previously head of broking, being appointed Chief Executive,
whilst Edward Vandyk will concentrate on a more client oriented role within
Corporate Synergy itself and on taking the Group forward in his role as Chief
Executive of Abingdon Capital.
Mountcashel LLP
The Group holds an equity interest of 25 per cent in Mountcashel LLP, a
regulated hedge fund manager. In May of the period under review the Mountcashel
Fund was launched, with initial investors committing $16 million. The
Mountcashel Fund is listed in Dublin and managed by Mountcashel LLP. Prior to
this the Group reduced its exposure to Mountcashel LLP from 50 per cent to 25
per cent allowing management to subscribe for further equity in the LLP so as to
have an appropriate exposure to risk as well as to reward. To date the fund,
which works on a 'momentum' principle, has, in common with all hedge funds, had
a somewhat difficult May and June but losses in each month were limited to under
one per cent. In July the fund recorded a profit of over one per cent. In
relative terms these results out perform the general hedge fund indices for the
period but we are well aware that investors are only interested in absolute,
rather than relative, returns.
Investments
The Group has maintained a strong cash position whilst at the same time
investing some of our resources to the Mountcashel Fund where we, as investors,
will be looking for enhanced returns.
The Group still has a limited number of investments not connected with its core
activities including a stake in M&P Direct PLC, which has stated its intentions
to seek a quotation on AIM as soon as is practicable.
In addition the Group has a 20 per cent stake, costing #75,000, in Formjet PLC
which expects to float on AIM shortly. Based on the projected placing price at
which funds are proposed to be raised on admission to AIM, this will show a
substantial uplift in value of the Group's investment.
The Group intends to continue to seek out similar opportunities to act as
principal where appropriate.
Outlook
The Board looks to the rest of the year with confidence. Whilst overall
performance for the year may well be affected by uncertain market conditions,
our principal operating subsidiary, Corporate Synergy, continues to attract new
clients, greater market recognition and improving levels and quality of
business.
As stated above, as an indication of the Board's confidence in the Group's
future prospects, it intends to pay an interim dividend of 0.125p per share,
payable to shareholders on the register on 24 September 2004.
Oliver Vaughan
Chairman
16 August 2004
Consolidated Profit and Loss Account
for the six months to 30 June 2004
Unaudited Unaudited Audited
Six months to Six months to Year ended
30 June 30 June 31 December
2004 2003 2003
#'000 #'000 #'000
Turnover 1,722 742 1,759
Cost of sales (1,033) (344) (1,264)
----------- ----------- ----------
Gross profit 689 398 495
Administrative expenses: (859) (714) (1,436)
Other operating income 39 - 20
----------- ----------- ----------
Loss on ordinary activities
before interest (131) (316) (921)
Profit on disposal of investments 333 176
Investment income - - 2
Interest receivable and similar
income 68 88 169
Interest payable and similar
charges - - (18)
----------- ----------- ----------
Profit / (loss) on ordinary
activities before taxation 270 (228) (592)
Taxation - - 14
----------- ----------- ----------
Profit / (loss) on ordinary
activities after taxation 270 (228) (578)
Dividends (72) (57) (114)
----------- ----------- ----------
Transfer to / (from) Reserves 198 (285) (692)
=========== =========== ==========
Earnings/(loss) per ordinary share
(pence)
- Basic 0.47 (0.40) (1.02)
- Diluted 0.43 (0.39) (1.02)
=========== =========== ==========
Consolidated Balance Sheet
Unaudited Unaudited Audited
30 June 30 June 31 December
2004 2003 2003
#'000 #'000 #'000
Fixed assets
Tangible assets 121 55 121
Investments 265 - 325
----------- ----------- ----------
386 55 446
----------- ----------- ----------
Current assets
Investments 2,613 734 446
Debtors 634 664 604
Cash at bank and in hand 3,436 5,312 4,983
----------- ----------- ----------
6,683 6,710 6,033
----------- ----------- ----------
Creditors: Amounts falling due within
one year (981) (566) (589)
----------- ----------- ----------
Net current assets 5,702 6,144 5,444
----------- ----------- ----------
Total assets less current liabilities 6,088 6,199 5,890
=========== =========== ==========
Capital and reserves
Called up share capital 58 57 58
Share premium 845 748 845
Other reserves 2,708 2,708 2,708
Profit and loss account 2,477 2,686 2,279
----------- ----------- ----------
Equity shareholders' funds 6,088 6,199 5,890
=========== =========== ==========
Consolidated Cash Flow Statement
Unaudited Unaudited Audited
Six months to Six months to Year ended
30 June 30 June 31 December
2004 2003 2003
#'000 #'000 #'000
Net cash inflow/(outflow) from
operating activities 336 60 (229)
----------- ----------- ----------
Returns on investment and servicing
of finance
Interest received 68 86 168
Interest paid - - (18)
Dividends from fixed asset
investments - 1 -
----------- ----------- ----------
68 87 150
----------- ----------- ----------
Taxation Paid - - (127)
----------- ----------- ----------
Capital expenditure and financial
investments
Purchase of tangible fixed assets (33) (6) (107)
Purchase of fixed asset
investments - - (325)
Purchase of current asset
investments (2,821) - (172)
Sale of current asset investments 986 37 717
(Grant) / repayment of loan (25) 100 -
----------- ----------- ----------
(1,893) 131 113
----------- ----------- ----------
Equity dividends paid (58) - (56)
----------- ----------- ----------
Cash (outflow) / inflow before
management of liquid resources
and financing (1,547) 278 (149)
=========== =========== ==========
Management of liquid resources and
financing
Decrease / (increase) in short
term deposits 1,787 (338) 179
----------- ----------- ----------
Financing
Issue of shares - - 99
----------- ----------- ----------
Increase/ (decrease) in cash in
the period 240 (60) 129
=========== =========== ==========
Notes to the Accounts
1 Basis of preparation
The unaudited accounts for the six months ended 30 June 2004 do not constitute
statutory accounts.
The profit and loss account, balance sheet and cash flow statement have been
prepared on a basis consistent with the statutory accounts for the year ended 31
December 2003.
Results for the year ended 31 December 2003 have been extracted from the
statutory accounts which were reported on by the auditors, without qualification
or statement under Section 237(2) or (3) of the Companies Act 1985 and have been
delivered to the Registrar of Companies.
2 Taxation
There is no tax charge for the period due to the availability of losses brought
forward.
3 Profit / (loss) per share
The calculation of the basic profit / (loss) per ordinary share is based on
profit / (loss) on ordinary activities after tax and on the weighted average
number of ordinary shares in issue during the period. The calculation of diluted
profit / (loss) per ordinary share is based on the basic profit / (loss) per
ordinary share adjusted to allow for the issue of shares on the assumed
conversion of all dilutive options.
Reconciliations of the profit / (loss) and weighted average number of shares
used in the calculations are set out in the table below.
6 months ended 30 June 2004 6 months ended 30 June 2003
Profit Weighted Profit Loss Weighted Loss
# Average per # Average per
Number of share Number of share
shares (pence) Shares (pence)
======== ========
Basic profit /
(loss) per
ordinary 270,000 57,937,851 0.47 (228,000) 56,529,518 (0.40)
Share
======== ========
Dilutive
effect of
securities - 5,771,957 - 2,624,854
-options and
warrants --------------------- ------------------
Dilutive
profit /
(loss)
per ordinary
Share 270,000 63,709,808 0.43 (228,000) 59,154,372 (0.39)
================================================================
4 Dividends
Six months to Six months to Year Ended
30 June 30 June 31 December
2004 2003 2003
#'000 #'000 #'000
Proposed interim of 0.125p per
share 72 57 114
========== ========== ==========
This information is provided by RNS
The company news service from the London Stock Exchange
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