TIDMASTO
RNS Number : 8181C
AssetCo PLC
20 June 2019
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
Thursday, 20 June 2019 Immediate Release
AssetCo plc
Providers of management and resources to the fire and emergency
services in the Middle East
("AssetCo" or the "Company")
2019 Half-year Report
for the six months ended 31 March 2019
Chairman's statement
These results show a Profit after taxation for the six months
ended 31 March 2019 of GBP0.4m (2018: GBP0.5m) on Revenue of
GBP5.2m (2018: GBP11.2m) with the net assets at 31 March 2019
totalling GBP30.2m. The reduced revenue results from the cessation
of our Fire Services to the Abu Dhabi government which, as already
announced, ended on 17 December 2018.
The liquidity position remains strong with Cash and cash
equivalents of GBP18.3m, and this position is expected to improve
as, although we have ongoing costs in relation to our remaining
staff in Abu Dhabi and legal costs associated with the Grant
Thornton appeal, we have Cash held in respect of Bonds of GBP3.3m,
Trade and other Receivables of GBP10.7m, and Trade and other
payables of just GBP2.1m.
On cessation of the Fire Services contract, our headcount in Abu
Dhabi was immediately reduced from 242 by the transfer of 229
employees to the new operations and since then we have successively
reduced the headcount to five. The remaining staff are senior fire
service and administration staff who are currently involved in
tendering for new business in the UAE, providing consultancy and
dealing with the outstanding bonds and receivables.
We are encouraged by the opportunities that have arisen and have
been involved in work proposals across several sectors; however, at
this stage it is too early to assess the timing and potential from
these sources.
Claim against Grant Thornton
The claim for negligence against AssetCo's former auditors,
Grant Thornton, culminated in a trial in June 2018, for which a
Judgment in AssetCo's favour was handed down. Since then permission
to appeal was refused by the Trial Judge, but as announced on 31
May 2019, Grant Thornton have now successfully applied to the Court
of Appeal for permission to appeal and the appeal will be heard by
the Court of Appeal towards the end of January 2020.
AssetCo were awarded damages of GBP22.4m plus interest of
approximately GBP6.5m and GBP5m on account of costs. On 29 March
2019, Grant Thornton paid GBP34.3m into Court on which interest is
accruing at the rate of 8% per annum and the release of which is
dependent upon the outcome of the appeal listed towards the end of
January 2020.
Outlook
We shall keep shareholders informed of any developments
regarding Grant Thornton's appeal and on the further development
and opportunities we have with our business in UAE.
Tudor Davies
Chairman
20 June 2019
AssetCo plc
Income statement
for the six months ended 31 March 2019
Six months ended Year ended
Note 31 March 31 March 30 September
2019 2018 2018
GBP'000 GBP'000 GBP'000
--------- --------- -------------
Revenue 5,210 11,151 22,888
Cost of sales (4,165) (8,215) (16,645)
--------- --------- -------------
Gross profit 1,045 2,936 6,243
Administrative expenses (660) (2,440) (4,746)
--------- --------- -------------
Operating profit 385 496 1,497
Finance income 2 3 5
Finance costs (25) (35) (83)
Profit before taxation 362 464 1,419
Income tax expense - - -
--------- --------- -------------
Profit for the period 362 464 1,419
--------- --------- -------------
Earnings per share (EPS): 3
Basic - pence 2.96 3.80 11.62
Diluted - pence 2.96 3.80 11.62
AssetCo plc
Statement of comprehensive income
for the six months ended 31 March 2019
Six months ended Year ended
31 March 31 March 30 September
2019 2018 2018
GBP'000 GBP'000 GBP'000
--------- --------- -------------
Recognised profit for the period 362 464 1,419
Other comprehensive (expense) /
income:
Exchange differences on translating
foreign operations (146) (767) 760
Other comprehensive (expense) /
income net of tax (146) (767) 760
--------- --------- -------------
Total comprehensive (expense) /
income for the period 216 (303) 2,179
--------- --------- -------------
AssetCo plc
Statement of financial position
as at 31 March 2019
At 31 March At 30 September
2019 2018 2018
Note GBP'000 GBP'000 GBP'000
--------- --------- ----------------
Assets
Non-current assets
Property, plant and equipment 16 - 26
Cash held in respect of a bond - - 1,199
--------- --------- ----------------
Total non-current assets 16 - 1,225
--------- --------- ----------------
Current assets
Inventories - - -
Trade and other receivables 4 10,692 12,438 15,997
Cash and cash equivalents 5 18,257 19,554 16,800
Cash held in respect of bonds 3,290 320 941
--------- --------- ----------------
Total current assets 32,239 32,312 33,738
--------- --------- ----------------
Total assets 32,255 32,312 34,963
--------- --------- ----------------
Shareholders' equity
Share capital 25,474 25,474 25,474
Share premium 64,941 64,941 64,941
Profit and loss account (60,229) (62,927) (60,445)
--------- --------- ----------------
Total equity 30,186 27,488 29,970
Liabilities
Current liabilities
Trade and other payables 6 2,069 4,824 4,993
--------- --------- ----------------
Total current liabilities 2,069 4,824 4,993
--------- --------- ----------------
Total liabilities 2,069 4,824 4,993
--------- --------- ----------------
Total equity and liabilities 32,255 32,312 34,963
--------- --------- ----------------
AssetCo plc
Statement of changes in equity
for the six months ended 31 March 2019
Share Share premium Profit and Total
Capital loss reserve equity
GBP'000 GBP'000 GBP'000 GBP'000
--------- -------------- -------------- --------
Balance at 30 September 2017 25,474 64,941 (62,624) 27,791
Profit for the period - - 464 464
Other comprehensive income:
Exchange differences on translation - - (767) (767)
Total comprehensive income for
the period - - (303) (303)
--------- -------------- -------------- --------
Balance at 31 March 2018 25,474 64,941 (62,927) 27,488
--------- -------------- -------------- --------
Profit for the period - - 955 955
Other comprehensive expense:
Exchange differences on translation - - 1,527 1,527
Total comprehensive income for
the period - - 2,482 2,482
--------- -------------- -------------- --------
Balance at 30 September 2018 25,474 64,941 (60,445) 29,970
--------- -------------- -------------- --------
Profit for the period - - 362 362
Other comprehensive income:
Exchange differences on translation - - (146) (146)
--------- -------------- -------------- --------
Total comprehensive income for
the period - - 216 216
--------- -------------- -------------- --------
Balance as at 31 March 2019 25,474 64,941 (60,229) 30,186
--------- -------------- -------------- --------
AssetCo plc
Statement of cash flows
for the six months ended 31 March 2019
Six months ended Year ended
31 March 31 March 30 September
2019 2018 2018
Note GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from/(used by) operations 7 2,630 (1,602) (3,453)
Cash deposited in respect of performance
bonds (1,150) (97) (3,631)
Cash released in respect of performance
bonds - 102 2,028
Finance costs (25) (35) (83)
Net cash generated from/(used by)
operating activities 1,455 (1,632) (5,139)
--------- --------- -------------
Cash flows from investing activities
Finance income 2 3 5
Purchases of property, plant and
equipment - - (26)
Net cash generated from investing
activities 2 3 (21)
--------- --------- -------------
Net change in cash and cash equivalents 1,457 (1,629) (5,160)
Cash and cash equivalents at the
beginning of the period 16,800 21,530 21,530
Exchange differences on translation - (347) 430
Cash and cash equivalents at the
end of the period 18,257 19,554 16,800
--------- --------- -------------
AssetCo plc
Notes to the Financial Statements
for the six months ended 31 March 2019
1. Legal status and activities
AssetCo plc (the "Company") is principally involved in the provision
of management and resources to the fire and rescue emergency services
in international markets. It currently trades through a branch
in the United Arab Emirates ("UAE") and its strategy is to develop
this business. As announced on 16 October 2018, the Company received,
on 15 October 2018, notice of termination of its contract in the
UAE. The contract terminated on 17 December 2018. Since termination,
the company has been tendering for new business, providing consultancy
and dealing with the outstanding bonds and receivables.
AssetCo plc is a public limited liability company incorporated
and domiciled in England and Wales. The address of its registered
office is Singleton Court Business Park, Wonastow Road, Monmouth,
Monmouthshire NP25 5JA. The Company operates from one site in
UAE. As at period end, the Company had no subsidiaries.
AssetCo plc shares are listed on the Alternative Investment Market
("AIM") of the London Stock Exchange (AiM: symbol ASTO.L).
2. Basis of preparation
The financial information in the Half-year Report has been prepared
using the recognition and measurement principles of International
Accounting Standards, International Financial Reporting Standards
and Interpretations adopted for use in the European Union (collectively
Adopted IFRSs). The principal accounting policies used in preparing
the Half-year Report are those the Group expects to apply in its
financial statements for the year ending 30 September 2019 and,
except as set out below, are unchanged from those disclosed in
the Annual Report and Financial Statements for the year ended
30 September 2018.
IFRS 9 'Financial Instruments' (effective 1 January 2018) introduces
a new model for the classification and measurement of financial
assets, a new expected credit loss model for the impairment of
financial assets held at amortised cost, and new requirements
for hedge accounting. There are also a number of new disclosure
requirements. The adoption of IFRS 9 has not had a material impact
on the company's results or financial position, but is expected
to result in further disclosures in the Report and Accounts for
the year ended 30 September 2019.
IFRS 15 'Revenue from Contracts with Customers (effective 1 January
2018) introduces a new five step model for the recognition of
revenue, which is based on the satisfaction of performance obligations.
The core principle is that an entity will recognise revenue to
depict the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods and services.
The adoption of IFRS 15 has not had a material impact on the company's
results or financial position, but is expected to result in further
disclosures in the Report and Accounts for the year ended 30 September
2019.
The financial information for the six months ended 31 March 2019
and the six months ended 31 March 2018 is unaudited and does not
constitute the Company's statutory financial statements for those
periods. The comparative financial information for the full year
ended 30 September 2018 has, however, been derived from the audited
statutory financial statements for that period. A copy of those
statutory financial statements has been delivered to the Registrar
of Companies.
While the financial figures included in this Half-year Report
have been computed in accordance with IFRSs applicable to interim
periods, this Half-year Report does not contain sufficient information
to constitute an interim financial report as that term is defined
in IAS 34.
The financial statements have been presented in sterling to the
nearest thousand pounds (GBP'000) except where otherwise indicated.
3. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable
to ordinary equity holders of the Company by the weighted average
number of ordinary shares outstanding during the period.
Six months ended Year ended
31 March 31 March 30 September
2019 2018 2018
------------ ----------- -------------
GBP'000 GBP'000
Profit for the year 362 464 1,419
------------ ----------- -------------
Weighted average number of ordinary
shares in issue 12,211,163 12,211,163 12,211,163
Basic earnings per share (EPS)
- pence 2.96 3.80 11.62
There are no dilutive potential ordinary shares and, therefore,
the calculation of diluted earnings per share is the same as for
basic earnings per share.
4. Trade and other receivables
31 March 31 March 30 September
2019 2018 2018
GBP'000 GBP'000 GBP'000
--------- --------- -------------
Trade receivables - 103 -
Other receivables 119 325 166
Prepayments and accrued income 10,573 12,010 15,831
--------- --------- -------------
10,692 12,438 15,997
--------- --------- -------------
5. Cash and cash equivalents
31 March 30 September
2019 2018 2018
GBP'000 GBP'000 GBP'000
-------- -------- -------------
Cash at bank and in hand 18,257 19,554 16,800
-------- -------- -------------
Cash and cash equivalents 18,257 19,554 16,800
-------- -------- -------------
UK sterling 3,957 4,534 5,120
UAE Dirhams 14,300 15,020 11,680
-------- -------- -------------
18,257 19,554 16,800
-------- -------- -------------
In addition to the above UAE Dirhams amounting to GBP3,290,000
(31 March 2018: GBP320,000 and 30 September 2018: GBP2,140,000)
were held on deposit as security in respect of outstanding
performance bonds - see note 8 Contingent liabilities.
6. Trade and other payables
31 March 31 March 30 September
2019 2018 2018
GBP'000 GBP'000 GBP'000
--------- --------- -------------
Trade payables 225 690 1,003
Other payables 149 1,439 1,618
Other taxation and social security 3 2 3
Accruals and deferred income 1,692 2,693 2,369
--------- --------- -------------
2,069 4,824 4,993
--------- --------- -------------
7. Reconciliation of profit before taxation to net cash (used by)
/ generated from operations
Six months ended Year ended
31 March 30 September
2019 2018 2018
GBP'000 GBP'000 GBP'000
--------- -------- -------------
Profit for the period before
taxation 362 464 1,419
Depreciation 10 - -
Finance costs 25 35 83
Finance income (2) (3) (5)
Decrease/(increase) in receivables 5,305 (2,327) (5,085)
(Decrease)/increase in payables (3,070) 229 135
Cash generated from/(used by)
operations 2,630 (1,602) (3,453)
--------- -------- -------------
8. Contingent liabilities
Approximate maximum potential liability
31 March 30 September
2019 2018 2018
------------ ----------- -----------------
Warranty bond related to a UAE
based contract, expected to
be released in full in 2020
(31 March 2018: Performance
bond related to the same UAE
based contract) 1,200 2,225 1,200
------------ ----------- -----------------
Performance bond related to
a UAE based contract, released - 100 -
in full during 2018
Performance bond related to
a UAE based contract, expected
to be released in full during
2019 1,050 - 1,050
Performance bond related to
a UAE based contract, expected 1,050 - -
to be released in full during
2019
9. Electronic communications
The Company is not proposing to bulk print and distribute hard
copies of this Half-year Report unless specifically requested
by individual shareholders; it can be downloaded from the Company's
website at www.assetco.com .
News updates, regulatory news, & financial statements can be viewed
and downloaded from the Company's website, www.assetco.com. Copies
can also be requested, in writing to, The Company Secretary, AssetCo
plc, Singleton Court Business Park, Wonastow Road, Monmouth, Monmouthshire
NP25 5JA.
Enquiries:
AssetCo plc
Tudor Davies, Chairman
Tel: +44 (0) 7785 703523
or +44 (0) 20 7614 5900
Arden Partners plc
Nominated adviser and broker
John Llewellyn-Lloyd/Ciaran Walsh
Equity Sales: John Peat
Tel: +44 (0) 20 7614 5900
TooleyStreet Communications
IR and media relations
Fiona Tooley
Mobile: +44 (0) 7785 703523
Email: fiona@tooleystreet.com
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END
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