TIDMSTV
RNS Number : 0807E
Strathdon Investments PLC
15 December 2009
?
Strathdon Investments plc
Unaudited Half Year Results for the 6 months to 30 September 2009
Strathdon Investments plc ("the Group") today announces its unaudited half year
results for the six months to 30 September 2009.
Chairman's Statement
The first six months of this financial year have continued to present a
challenging business environment, with no immediate end to the economic downturn
in sight. The Group has however made significant progress in the period.
The successful realisation of the Group's investment in Newnova Group Limited in
July 2009, yielding total proceeds of GBP0.59 million, facilitated the full
settlement of the Strathdon Group's bank borrowings. This combined with the
impact of cost savings initiated at the end of the previous financial year and a
stabilisation in the value of the remaining investment portfolio has resulted in
a significant reduction in the reported loss for the six month period. This has
been reduced to GBP0.10 million in the six months to 30 September 2009, an
improvement of GBP0.62 million on the same period in 2008.
The net asset value as at 30 September 2009 is 5.99 pence per share, which
compares to 6.18 pence per share at 31 March 2009.
The Board continues to focus on realising key elements of the portfolio to
maintain liquidity, while at the same time evaluating its strategic options to
deliver shareholder value.
Portfolio Company Performance
A total of GBP0.62 million of proceeds have been realised in the period, the
largest element of this relating to the repayment of the Strathdon Group's loan
to Newnova Group Limited. This yielded a redemption premium of GBP0.073 million
above the original loan value. Strathdon has also partially disposed of its
holding in Utilyx Limited, selling 57% of its stake for GBP0.02 million. The
bulk of these net proceeds have been used to settle the Strathdon Group's bank
liabilities.
The period has seen no new investment activity and no further requirement for
investment in the existing portfolio by the Group. The Fund Manager continues to
work closely with the portfolio and a small investment of GBP0.013 million has
been made since the end of September into Oxagen Limited, as part of a
significant institution round, to preserve the fund's preferred rights. Whilst
at present there are no anticipated short term cash requirements the current
economic conditions remain challenging which may not preclude the need for
further investment at some point in the future.
The residual portfolio comprises 10 investments with an aggregate value of
GBP3.50 million, GBP0.01m up on the March 2009 value (allowing for the partial
sale of Utilyx shares). The value of AMG Systems Limited increased by GBP0.3m
on the back of continued strong trading but this was offset by the need to
restructure the fund's investment in Intouch With Health Limited to facilitate
new investment to fund essential working capital.
Financial Results
The operating loss for the six months ended 30 September 2009 was
GBP0.12 million compared to GBP0.19 million in the same period last year. After
taking account of realised gains and unrealised losses on investments the loss
before tax for the six months was GBP0.10 million compared to GBP0.72 million in
the same period in the prior year.
Total net assets at 30 September 2009 were GBP3.10 million (2008: GBP4.25
million) equivalent to a net asset value per share of 5.99 pence (2008: 8.20
pence); bank borrowings have now been fully repaid (2008: GBP0.33 million).
Outlook
This period has seen costs reduced further, continuing realisations and the
settlement of bank debt. The Group is seeking to continue this strategy with the
goal of ultimately operating free of creditors. When combined with further cost
reductions arising from the renegotiation of the fund management fees it is
intended that this will allow the Group to focus on achieving further
realisations and to continue to review its strategic options to enhance
shareholder value.
Simon Hunt
Chairman
15 December 2009
Consolidated Income Statement
For the 6 months ended 30 September 2009
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | Unaudited | | Unaudited | | Audited |
| | | 6 months | | 6 months | | Year |
| | | ended | | ended | | ended |
| | | 30 | | 30 | | 31 March |
| | | September | | September | | 2009 |
| | | 2009 | | 2008 | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| |Notes | GBP000 | | GBP000 | | GBP000 |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Revenue | | 20 | | 74 | | 105 |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Administrative expenses | | (135) | | (263) | | (446) |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Operating Loss | | (115) | | (189) | | (341) |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Realised gains on financial | | - | | 3 | | - |
| assets designated at fair value | | | | | | |
| though profit or loss (net) | | | | | | |
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Unrealised gains / (losses) on | | 23 | | (516) | | (1,392) |
| financial assets designated at | | | | | | |
| fair value through profit or | | | | | | |
| loss (net) | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Net movement on investments | | 23 | | (513) | | (1,392) |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Loss before finance costs and | | (92) | | (702) | | (1,733) |
| taxation | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Finance costs | | (6) | | (20) | | (35) |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Loss before taxation | | (98) | | (722) | | (1,768) |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Taxation | | - | | - | | - |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Loss for the period from | | (98) | | (722) | | (1,768) |
| continuing operations | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Basic and diluted loss per | 2 | (0.19)p | | (1.39)p | | (3.41)p |
| ordinary share | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
Consolidated Balance Sheet
As at ended 30 September 2009
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | Unaudited | | Unaudited | | Audited |
| | | 6 months | | 6 months | | Year |
| | | ended | | ended | | ended |
| | | 30 | | 30 | | 31 March |
| | | September | | September | | 2009 |
| | | 2009 | | 2008 | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| |Notes | GBP000 | | GBP000 | | GBP000 |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Assets | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Non-current assets | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Financial assets designated at | | 3,504 | | 5,022 | | 4,099 |
| fair value through profit or | | | | | | |
| loss | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Current assets | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Trade and other receivables | | 50 | | 212 | | 62 |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Cash and cash equivalents | | 271 | | 96 | | 102 |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | 321 | | 308 | | 164 |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Liabilities | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Current liabilities | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Financial liabilities | | - | | (330) | | (300) |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Trade and other payables | | (580) | | (611) | | (620) |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | (580) | | (941) | | (920) |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Net current liabilities | | (259) | | (633) | | (756) |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Total assets less current | | 3,245 | | 4,389 | | 3,343 |
| liabilities | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Non-current liabilities | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Loans | | (141) | | (141) | | (141) |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Net assets | | 3,104 | | 4,248 | | 3,202 |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Shareholders' equity | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Share capital | | 2,591 | | 2,591 | | 2,591 |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Share premium account | | 6,392 | | 6,392 | | 6,392 |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Special reserve | | 36,290 | | 36,290 | | 36,290 |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Warrant reserve | | 928 | | 928 | | 928 |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Retained earnings | | (43,097) | | (41,953) | | (42,999) |
+---------------------------------+-------+------------+-+------------+-+-----------+
| | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Total Shareholders' equity | | 3,104 | | 4,248 | | 3,202 |
+---------------------------------+-------+------------+-+------------+-+-----------+
| Net asset value per Ordinary | 3 | 5.99p | | 8.20p | | 6.18p |
| share | | | | | | |
+---------------------------------+-------+------------+-+------------+-+-----------+
Signed on behalf of the Board
Simon Hunt
Chairman
15 December 2009
Unaudited Statement of Changes in Shareholders' Equity
For the 6 months ended 30 September 2009
+----------------------+---------+---------+---------+---------+----------+---------+
| | Share | Share | Special | Warrant | Retained | Total |
| | Capital | premium | reserve | reserve | earnings | equity |
| | GBP000 | account | GBP000 | GBP000 | GBP000 | GBP000 |
| | | GBP000 | | | | |
+----------------------+---------+---------+---------+---------+----------+---------+
| | | | | | | |
+----------------------+---------+---------+---------+---------+----------+---------+
| Balance at 31 March | 2,591 | 6,392 | 36,290 | 928 | (41,231) | 4,970 |
| 2008 | | | | | | |
+----------------------+---------+---------+---------+---------+----------+---------+
| Loss for the period | - | - | - | - | (722) | (722) |
+----------------------+---------+---------+---------+---------+----------+---------+
| Balance at 30 | 2,591 | 6,392 | 36,290 | 928 | (41,953) | 4,248 |
| September 2008 | | | | | | |
+----------------------+---------+---------+---------+---------+----------+---------+
| Loss for the period | - | - | - | - | (1,046) | (1,046) |
+----------------------+---------+---------+---------+---------+----------+---------+
| Balance at 31 March | 2,591 | 6,392 | 36,290 | 928 | (42,999) | 3,202 |
| 2009 | | | | | | |
+----------------------+---------+---------+---------+---------+----------+---------+
| Loss for the period | - | - | - | - | (98) | (98) |
+----------------------+---------+---------+---------+---------+----------+---------+
| | | | | | | |
+----------------------+---------+---------+---------+---------+----------+---------+
| Balance at 30 | 2,591 | 6,392 | 36,290 | 928 | (43,097) | 3,104 |
| September 2009 | | | | | | |
+----------------------+---------+---------+---------+---------+----------+---------+
Consolidated Statement of Cash Flows
For the 6 months ended 30 September 2009
+--------------------------------+-----+------------+-+------------+-+-----------+
| | | Unaudited | | Unaudited | | Audited |
| | | 6 months | | 6 months | | Year |
| | | ended | | ended | | ended |
| | | 30 | | 30 | | 31 March |
| | | September | | September | | |
| | | 2009 | | 2008 | | 2009 |
| | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
| | | GBP000 | | GBP000 | | GBP000 |
+--------------------------------+-----+------------+-+------------+-+-----------+
| Net cash outflow from | | (143) | | (85) | | (161) |
| operating activities | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
| | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
| Cash flows from investing | | | | | | |
| activities | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
| Proceeds from sale of | | - | | - | | - |
| subsidiary | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
| Purchase of financial assets | | - | | - | | - |
+--------------------------------+-----+------------+-+------------+-+-----------+
| Proceeds from sale of | | 619 | | 326 | | 440 |
| financial assets | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
| Net cash from investing | | 619 | | 326 | | 440 |
| activities | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
| | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
| Cash flows used in financing | | | | | | |
| activities | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
| Repayment of borrowings | | (300) | | (326) | | (356) |
+--------------------------------+-----+------------+-+------------+-+-----------+
| Interest paid | | (7) | | (20) | | (22) |
+--------------------------------+-----+------------+-+------------+-+-----------+
| Net cash from used in | | (307) | | (346) | | (378) |
| financing activities | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
| | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
| Net increase / (decrease) in | | 169 | | (105) | | (99) |
| cash and cash equivalents | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
| | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
| Cash and cash equivalents at | | 102 | | 201 | | 201 |
| the beginning of the period | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
| | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
| Cash and cash equivalents at | | 271 | | 96 | | 102 |
| the end of the period | | | | | | |
+--------------------------------+-----+------------+-+------------+-+-----------+
Notes to the Financial Statements
For the 6 months ended 30 September 2009
1. These half year statements, which have been approved by the directors,
are unaudited, and have not been
reviewed by the auditors pursuant
to the Auditing Practices Board (ASB) guidance on Review of Interim
Financial
Information.
The half year statements do not constitute full financial statements as defined
in section 435 of the Companies Act 2006. The comparative figures for the year
ended 31 March 2009 do not constitute full financial statements and have been
extracted from the Company's financial statements for the year ended 31 March
2009.
The accounts for the year ended 31 March 2009 were reported without
qualification by the auditors and have been delivered to the Registrar of
Companies.
The half year statements have been prepared on a going concern basis. In
arriving at their decision to prepare the half year statements on a going
concern basis, the directors have reviewed the anticipated income and
expenditure of the Group and compared it with the Group's cash resources. The
directors believe that it remains appropriate to prepare these accounts on a
going concern basis. The ability of the Group to remain a going concern is
dependent on the agreement of the directors, ex-directors and YFM Venture
Finance Limited to delay payment of their outstanding fees until sufficient cash
resources are available. The Group has received confirmation of such agreement.
The half year statements comply with IAS 34 'Interim Financial Reporting' and
AIM Rule 18. The accounting policies and methods of computation adopted in the
half year statements are the same as those adopted in the preparation of the
audited financial statements for the year ended 31 March 2009.
The financial statements for the year ended 31 March 2009 were prepared in
accordance with the International Financial Reporting Standards (IFRS) as
adopted by the European Union and those parts of the Companies Act 1985
applicable to companies reporting under IFRS.
The following new standards and amendments to standards are mandatory for the
first time for the financial year commencing 1 April 2009. Where relevant to the
Company the half year statements have been prepared under the revised disclosure
requirements.
IAS 1 (revised) "Presentation of Financial Statements". The Company has elected
to present a single performance statement: the Statement of Comprehensive
Income.
IFRS 8 "Operating Segments". The adoption of this standard has had no impact on
the segmental information reported by the Company.
Other standards and interpretations which have been issued but are not currently
relevant for the Company are IAS 23 (Revised) and IFRICs 13, 15 and 16.
There has been no change to the principal risks and uncertainties facing the
Company since the publication of the financial statements for the year ended 31
March 2009. In summary, the principal risks are:
- Investment and strategic;
- Liquidity risk;
- Regulatory;
- Reputational;
- Operational;
- Financial;
- Interest rate risk; and
- Foreign currency risk
Full details of the principal risks can be found in the financial statements for
the year ended 31 March 2009 on page 10, a copy of which can be found at
www.yfmgroup.co.uk
2. The loss per share is based on the net loss from ordinary activities
after tax attributable to shareholders of
GBP98,000 (30 September
2008: GBP722,000 and 31 March 2009: GBP1,768,000) and on 51,817,057 shares
(30 September 2008 and 31 March 2009: 51,817,057), being the weighted
average number of shares in issue
during the period.
The share options within the Employee Share Option Scheme and the warrants
exercisable at 36p per share are considered to be dilutive. The Company has no
other securities that would have a dilutive effect and hence basic and diluted
earnings per share are the same.
3. The net asset value per share is calculated on attributable assets of
GBP3,104,000 and 51,817,057 shares in issue
at the period end (30
September 2008: assets of GBP4,248,000 and 51,817,057 shares, 31 March 2009:
assets of
GBP3,202,000 and 51,817,057 shares).
The share options within the Employee Share Option Scheme and the warrants
exercisable at 36p per share are not considered to be non-dilutive potential
ordinary shares. The Company has no other securities that would have a dilutive
effect and hence basic and diluted net asset values per share are the same.
4. Copies of the interim report can be obtained from the Company's
registered office: Saint Martins House, 210-212
Chapeltown Road,
Leeds, LS7 4HZ or from the Fund Manager's website: www.yfmgroup.co.uk.
For further information, please contact:
David Bell YFM Group Limited 0207 812 6470
This information is provided by RNS
The company news service from the London Stock Exchange
END
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