Interim Results
23 September 2003 - 9:00AM
UK Regulatory
RNS Number:0392Q
Abingdon Capital PLC
23 September 2003
ABINGDON CAPITAL PLC
INTERIM REPORT FOR THE SIX MONTHS TO 30 JUNE 2003
Chairman's Statement
The six months to 30th June 2003 have seen substantial progress in achieving the
Group's strategic aims of establishing a hedge fund management operation and
expanding the activities of Corporate Synergy plc from corporate finance into
stockbroking and research.
In the six months to 30th June 2003 the Group suffered a loss of #228,000 as
against a loss of #534,000 during the comparable period last year, although this
was prior to the acquisition of Corporate Synergy Holdings plc.
In relation to our proposed hedge fund management operation, Mountcashel Limited
Liability Partnership ("MLLP"), where our interest is 50%, progress towards
authorisation by the Financial Services Authority continues and, assuming a
successful outcome to our application in the short term, we believe the fund may
be operational by November. Prior to regulation the management team of MLLP, led
by Paul Spence, (formerly deputy head of global equities at BZW) continues to
trade principal funds, albeit on a small scale. Using some of the Group's cash
Paul and his team have achieved satisfactory and consistent results which have
helped ameliorate the not insignificant establishment costs of MLLP, which are
being funded by the Group.
The Group has continued to successfully dispose of its remaining quoted
investment portfolio, at around book value.
The Company is also delighted to announce that Gavin Casey, formerly Chief
Operating Officer of Smith NewCourt and Chief Executive of the London Stock
Exchange, has agreed to join the Board of Corporate Synergy as Chairman. Gavin
Casey proposes to subscribe for 1,000,000 new Abingdon Capital plc shares, which
the Board have resolved will be allotted at 7 pence per share, together with a
further 408,333 shares also allotted at 7 pence to other new employees. These
shares will not qualify for the interim dividend proposed below.
In line with others, Corporate Synergy has had a somewhat difficult six months
in its core activity, principally because of depressed market sentiment during
the start of the period, although it has remained profitable throughout.
Utilising the lull in activity, it has established a stockbroking operation from
scratch which will become fully operational by November. Given the return of
some market confidence the Board is optimistic that the increased range of
services provided by Corporate Synergy will enable full advantage to be taken of
the upturn.
I believe we are now well positioned for the future as a growth company based
around sustainable earnings. With the bulk of the investment in new recruits
for, and establishment of, our new activities now completed, our task is to
maximise the returns from those investments. As an indication of the Board's
confidence in the Group's future ability to generate positive earnings, it
intends to pay a maiden interim dividend of 0.1p per share from reserves,
payable on 27th October to shareholders on the register on 3rd October 2003.
Oliver Vaughan
Chairman
23 September 2003
Consolidated Profit and Loss Account
Unaudited Unaudited Audited
Six months Six months Year
to to ended
30 June 30 June 31 December
2003 2002 2002
#'000 #'000 #'000
Turnover 742 - 832
Cost of sales (344) (56) (634)
_________ _________ ________
Gross profit / (loss) 398 (56) 198
Administrative expenses:
Exceptional - - (169)
Other (714) (630) (1,322)
Other operating income - 83 44
________ ________ ________
Loss on ordinary activities
before interest (316) (603) (1,249)
Interest receivable and similar
income 88 69 155
Interest payable and similar
charges - - (2)
________ ________ ________
Loss on ordinary activities
before and after taxation (228) (534) (1,096)
Dividends (57) - -
________ ________ ________
Transfer from Reserves (285) (534) (1,096)
======== ======== ========
Loss per ordinary share (pence)
- Basic (0.4) (5.9) (2.5)
- Diluted (0.3) (5.9) (2.3)
======== ======== ========
Consolidated Balance Sheet
Unaudited Unaudited Audited
30 June 30 June 31 December
2003 2002 2002
#'000 #'000 #'000
Fixed assets 55 20 65
Tangible assets - 5,562 -
Investments _______ ________ ________
55 5,582 65
_______ ________ ________
Current assets
Investments 734 25 871
Debtors 664 71 1,403
Cash at bank and in hand 5,312 2,599 5,033
_______ _______ ________
6,710 2,695 7,307
_______ _______ ________
Creditors: Amounts falling due within
one year (566) (201) (888)
________ ________ ________
Net current assets 6,144 2,494 6,419
________ ________ ________
Total assets less current liabilities 6,199 8,076 6,484
======== ======== ========
Capital and reserves 57 4,511 57
Called up share capital 748 32 748
Share premium 2,708 2,744 2,708
Other reserves 2,686 789 2,971
Profit and loss account ________ ________ ________
Equity shareholders' funds 6,199 8,076 6,484
======== ======== ========
Consolidated Cash Flow Statement
Unaudited Unaudited Audited
Six months Six months Year
to to ended
30 June 30 June 31 December
2003 2002 2002
#'000 #'000 #'000
Net cash inflow/(outflow) from
operating activities 60 (476) (956)
Returns on investment and
servicing of finance
Interest received 86 72 156
Interest paid - - (1)
Dividends from fixed asset 1 3 4
investments
87 75 159
Taxation Paid - - (180)
Capital expenditure and financial
investments (6) (10) (20)
Purchase of tangible fixed assets - - -
Sale of tangible fixed assets - (2,380) -
Purchase of fixed asset investments - 180 -
Sale of fixed asset investments - - (2,480)
Purchase of current asset investments 37 25 2,589
Sale of current asset investments 100 - (200)
Repayment / (Grant) of loan 131 (2,185) (111)
Acquisitions and disposals - - (610)
Cost of purchase of subsidiary - - 36
Cash acquired with subsidiary - - (574)
Cash inflow/(outflow) before
management of liquid resources 278 (2,586) (1,662)
and financing
Management of liquid resources
and financing (338) 3,500 1,729
(Increase)/decrease in short term
deposits
Increase/ (decrease) in cash in
the period (60) 914 67
Notes to the Accounts
1 Basis of preparation
The unaudited accounts for the six months ended 30 June 2003 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 2002.
Results for the year ended 31 December 2002 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 corporation tax charge due to the availability of tax losses within
the Group.
3 Loss per share
The calculation of the basic 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 period. The calculation of diluted loss per ordinary
share is based on the basic loss per ordinary share adjusted to allow for the
issue of shares on the assumed conversion of all dilutive options.
Reconciliations of the loss and weighted average number of shares used in the
calculations are set out in the table below.
6 months ended 30 June 2003 6 months ended 30 June 2002
Weighted Loss Weighted Loss
Average per Average per
Loss Number of share Loss Number of share
# shares (pence) # Shares (pence)
Basic Loss per
ordinary (228,000) 56,529,518 ( 0.4) (534,000) 9,021,869 (5.9)
Share
------- -------
Dilutive
effect of
securities - 2,624,854 - -
-options and
warrants ------- -------- ------- --------
Dilutive Loss
per ordinary (228,000) 59,154,372 (0.3) (534,000) 9,021,869 (5.9)
Share
------- -------- ------- ------- -------- -------
4 Dividends
Six months Six months Year
to to Ended
30 June 30 June 31 December
2003 2002 2002
#'000 #'000 #'000
Proposed interim of 0.1p per
share 57 - -
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The company news service from the London Stock Exchange
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