Interim Results
30 September 2003 - 10:00AM
UK Regulatory
RNS Number:3221Q
Merchant House Group PLC
30 September 2003
Embargoed FOR release 8.00am 30 September 2003
MERCHANT HOUSE
GROUP PLC
Interim Results
For the six month period ended 30 June 2003
Merchant House Group today announces its interim results for the six month
period ended 30 June 2003.
Highlights
* FSA approval to carry out corporate finance and investment advisory
work
* Profitable investments in quoted shell company clients
* Refocus to take advantage of increase in smaller company corporate
activity
* Strong financial and staff platform for future growth
Enquiries
Merchant House Group 020 7332 2200
Peter Cotgrove
Peter Redmond
Shore Capital 020 7408 4090
Alex Borrelli
Jonathan Nelson
MERCHANT HOUSE
GROUP PLC
Interim Results
For the six month period ended 30 June 2003
CHAIRMAN'S STATEMENT
I am pleased to report that during the period to 30 June 2003 your Company
continued to complete the transition started during the second half of last
year. Although the continued restructuring and new investment in resources
during the period means we are reporting increased losses compared with a year
earlier, we are now strongly placed to consolidate our position with a view to
achieving profitability.
The Directors remain aware of the need to establish the Company on a profitable
basis as quickly as possible and continue to identify specific revenue earning
opportunities within the financial services sector. Following today's EGM we
have now secured shareholder approval for our new business strategy, and this is
underpinned by the FSA approval obtained in May allowing us to carry out
corporate finance and investment advisory business. We are now solidly
positioned to exploit the range of opportunities we have identified for
supplying corporate finance and investment advisory services to smaller
companies.
Our early moves to build on the revenues we are reporting here include
investments in two AiM quoted shell companies. MobileFuture plc and Future
Internet Technologies plc, where we also have an advisory role. The unrealised
gains in these investments as at 30 June 2003 are shown in Note 5 to the interim
results. It is worth noting that the shares of these companies, in which
investments were made at 0.125p and 5p per share respectively, were trading at
0.285p and 9.75p on Friday 26 September 2003.
MobileFuture has already completed the first stage of its transformation into an
operating business through its acquisition of a US-based IMAX cinema project
and a change of name to Bella Media plc. Our Company expects to continue to earn
fees from its association with these companies and other small quoted companies
where reconstruction or acquisition opportunities exist, and discussions
expected to lead to further transactions are already under way.
We have also now identified a broad range of prospective future transactions;
among other things we are considering a number of possible acquisitions and we
are seeking to strengthen our investment activities through relationships with
individuals and teams with established niche investment businesses of their own.
Our first half losses of #297,328 (4.38p per share) reflect our restructuring
during the period, including the recruitment of an experienced team of new
directors and other senior staff and the lease of a small suite of City offices.
Much work remains to be done, and while market conditions remain uncertain in
comparison with previous years, the changes we have put in place, coupled with
the signs of an upturn in smaller company corporate activity, mean we can build
on the firm base now established and look forward to achieving positive returns
for shareholders over the coming periods.
Peter Cotgrove
Executive Chairman
29 September 2003
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six month period ended 30 June 2003
Six month Six month
Note period ended period ended Year ended
30 June 2003 30 June 2002 31 December 2002
(Unaudited) (Unaudited) (Audited)
# # #
Turnover 39,076 - 90,960
Cost of Sales (25,000) - (30,000)
Realised gains on current asset
investments 6,326 - -
Gross Profit 20,402 - 60,960
Administrative costs (335,311) (99,349) (383,027)
Group Operating Loss (314,909) (99,349) (322,067)
Interest receivable 17,581 25,841 49,894
Loss on Ordinary Activities before
Taxation (297,328) (73,508) (272,173)
Tax on loss on ordinary activities 2 - - -
Loss on Ordinary Activities after
Taxation (297,328) (73,508) (272,173)
Loss per share (pence) 3 4.38p 1.08p 4.00p
The Group has no recognised gains or losses other than the results for the year
as set out above.
A cash flow statement has not been produced on the basis that the Company has
not yet commenced significant operations.
UNAUDITED CONSOLIDATED BALANCE SHEET
30 June 2003
As at As at As at
30 June 2003 30 June 2002 31 December 2002
Note (Unaudited) (Unaudited) (Audited)
# # #
Fixed Assets
Tangible fixed assets 18,790 - -
18,790 - -
Current Assets
Debtors 4 164,861 15,936 49,244
Cash at bank and in hand 645,827 1,286,610 1,079,374
Investments 3 71,125 - -
881,813 1,302,546 1,128,618
Creditors: Amounts falling due
within one year (142,353) (48,303) (73,040)
Net Current Assets 739,460 1,254,243 1,055,578
Total Assets Less Current
Liabilities 758,250 1,254,243 1,055,578
Capital and Reserves
Called-up equity share capital 340,000 340,000 340,000
Share premium account 1,039,440 1,039,440 1,039,440
Profit and loss account (621,190) (125,197) (323,862)
Equity Shareholders' Funds 6 758,250 1,254,243 1,055,578
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
for the six month period ended 30 June 2003
1. Accounting policies
Basis of Preparation
The interim results for the six months to June 2003 and June 2002
have been prepared under the historical cost convention, are unaudited and do
not constitute statutory accounts in accordance with Section 240 of the
Companies Act 1985.
Depreciation
Depreciation has been provided for so as to write off the cost of an
asset, less its estimated residual value, over its useful economic life as
follows:
Office equipment and fixtures: 3 years straight line
2. Taxation
No provision for corporation tax has been provided for, due to
losses incurred in the current and previous periods.
3. Loss per Share
The loss per share has been calculated by dividing the loss after
taxation of #297,328 (2002: #73,508) by the weighted average number of Ordinary
Shares in issue of 6,800,000 (2002: 6,800,000).
4. Debtors
Six month Six month
Period ended Period ended Year ended
30 June 2003 30 June 2002 31 December 2002
(Unaudited) (Unaudited) (Audited)
# # #
Trade debtors 9,301 - 4,363
Prepayments 69,675 15,936 3,106
Other debtors 85,885 - 41,775
164,861 15,936 49,244
5. Current Investments
Investments held as current assets are carried in the balance sheet
at cost. Their value as quoted on AiM at 30 June 2003 was #141,930. At cost
these were #71,125 giving an unrealised gain of #70,805. These holdings are not
held for long term investment purposes but are part of the Company's strategy in
relation to investment as set out in the letter to shareholders of 5 September
2003 and approved by the shareholders at the Extraordinary General Meeting of 29
September 2003.
6. Reconciliation of movement in shareholders' funds
Six month Six month
period ended period ended Year ended
30 June 2003 30 June 2002 31 December 2002
(Unaudited) (Unaudited) (Audited)
# # #
Loss for the period (297,328) (73,508) (272,173)
Opening shareholders' equity funds 1,055,578 1,327,751 1,327,751
Closing shareholders' equity funds 758,250 1,254,243 1,055,578
This information is provided by RNS
The company news service from the London Stock Exchange
END
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