TIDMPIRI
RNS Number : 4018L
Pires Investments PLC
30 April 2020
Pires Investments plc
("Pires" or the "Company")
Results for the year to 31 October 2019
The Board is pleased to announce the audited results of Pires
for the year ended 31 October 2019.
Highlights
- Pre-tax profits achieved of over GBP865,000 with net asset value in excess of GBP2,564,000
- Investment strategy expanded to include the technology sector
which is already yielding positive results
- Net cash proceeds of GBP1.6 million and net profit of almost
GBP1 million realised from the disposal of investment in Eco
Atlantic
- Investment returns and recent fund raisings leave the Company
well-funded to implement its strategy going forward
Chairman's Statement
I am pleased to report significant further progress in the year
to 31 October 2019. The Company achieved a pre-tax profit of
GBP865,510 (2018: GBP322,069) with the value of our investment
portfolio rising to GBP1,165,409 (2018: GBP1,029,526) after
investment realisations during the period of GBP1,016,114 (2018:
GBP264,882). Net asset value at the year-end was GBP2,564,582
(2018: GBP949,617), equivalent to 3.56p per share, and earnings
were 1.64p per share (2018: 0.95p).
In February 2019, we raised just over GBP780,000 in new equity
capital. In October 2019, we obtained shareholder approval for an
extension of our investing policy to include technology and
invested GBP1.1 million for a 13% stake in Sure Valley Ventures
("SVV"), a venture capital fund which invests in the software
technology sector with a specific focus on artificial intelligence
("AI"), the internet of things ("IoT") and augmented and virtual
reality ("AR/VR"). To date, we have made further investments in SVV
in line with our funding commitment totalling approximately
GBP370,000. Our technology investments now represent much the
larger part of our portfolio, reflecting our change of investment
emphasis.
Shareholders will also be aware that on 24 April 2020, the
Company completed a placing to raise further funds amounting to
GBP1.06 million of which GBP454,286 has been firmly placed and
GBP605,714 placed conditional upon approval at the forthcoming
Annual General Meeting. As part of the placing, we are pleased to
welcome the well-known technology investor, Chris Akers, as a
significant shareholder in the Company. The Company is now seeing a
growing number of new investment opportunities and the Board
believes that the Company now has the resources to enable it to
take advantage of them as they arise.
Our results in the last financial year were largely the result
of the increased value and partial realisation of our holding in
Eco (Atlantic) Oil & Gas Limited ("Eco Atlantic") which has
proved a very successful investment for the Company. The Company
has now disposed of the majority of its holding in Eco Atlantic,
prior to the share price fall triggered by recent market conditions
and the sharp fall in oil prices. Overall, we have generated total
net cash proceeds of GBP1.6 million and realised a total net profit
on disposal of almost GBP1 million from this investment.
Our recent focus on technology has proved successful to date. In
December 2019, very soon after our initial investment in SVV, one
of its portfolio companies, Artomatix Limited, was acquired at a
price 500% the valuation at which the investment was made. As
realisations when achieved are paid out to investors, Pires
received a cash distribution of over EUR720,000 with a balance of
EUR82,000 due eighteen months after the sale.
A number of the other portfolio companies have also made
significant progress since our investment. For example, the share
price of VR Education Holdings plc which is quoted on AIM has
increased by almost 30% since the beginning of the year. In March
2020, VividQ Limited raised a further GBP2.4 million from two
strategic venture capital funds. VividQ has leading edge software
providing holography to consumer electronics. In April 2020, Admix
(the trading name for WAM Group Limited), which has developed a
programmatic monetization platform for gaming and other
entertainment developers, raised US$6.1 million from existing and
new investors at a 450% premium to the valuation at which SVV's
initial investment was made. Also, in April 2020, environmental
technology specialist, Ambisense Limited, announced its involvement
in ground surveys for a very large UK infrastructure project - the
Lower Thames Essex-Kent Crossing. More recently, SVV has invested
in Buymie Technologies Limited, a company that has created a
platform that uses artificial intelligence to provide consumers
with access to multiple large retailers - a particular pertinent
investment given the Covid-19 crisis.
In March 2020, Pires announced a direct investment of EUR250,000
in Getvisibility (the trading name for Visibility Blockchain
Limited), an artificial intelligence security company, addressing
the substantial and increasing problem which corporations face in
storing, sorting, accessing and protecting data. It has developed
and launched a software platform using artificial intelligence that
delivers visibility over a wide range of data.
In view of the current Covid-19 pandemic, it is appropriate to
make some comment on the position of the Company. Pires, unlike
very many other companies, remains able to carry on its activities
effectively. Furthermore, we believe that the Company's technology
investments are well positioned against the background of Covid-19.
We are, however, keeping all such matters under close review
In summary, the Company has made good progress during the
financial year and beyond. The Board's intention is to build a
broadly based technology investment company with interests in a
range of companies with exciting growth potential. We believe that
the fundraisings that we completed, the successful realisation of a
key part of our existing portfolio and the investments that we have
made represent valuable first steps in this direction. We look
forward to further progress in the current financial year.
Peter Redmond
Chairman
STATEMENT OF COMPREHENSIVE INCOME
2019 2018
Notes GBP GBP
----------------------------------------- ------- ---------- ----------
CONTINUING ACTIVITIES
Income
Other Income 1,368 11
-------------------------------------------------- ---------- ----------
Total income 1,368 11
Gain on investments held at fair
value through profit or loss 1,151,997 574,987
Operating expenses (287,855) (252,929)
Operating profit from continuing
activities 865,510 322,069
Profit before taxation from continuing
activities 865,510 322,069
Tax - -
----------------------------------------- ------- ---------- ----------
Profit for the year from continuing
activities 865,510 322,069
-------------------------------------------------- ---------- ----------
Other Comprehensive Income - -
----------------------------------------- ------- ---------- ----------
Total Comprehensive Income attributable
to equity holders of the Company 865,510 322,069
================================================== ========== ==========
Basic profit per share
Equity holders
Basic and diluted 1.64p 0.95p
================================================== ========== ==========
STATEMENT OF CHANGES IN EQUITY
Capital
Share Share Redemption Retained
Capital Premium Reserve Earnings Total
GBP GBP GBP GBP GBP
----------------------- ----------- ---------- ------------ -------------- -----------
Balance at 1 November
2017 11,914,727 3,581,055 164,667 (15,032,901) 627,548
Profit and total
comprehensive profit
for the year - - - 322,069 322,069
As at 31 October
2018 11,914,727 3,581,055 164,667 (14,710,832) 949,617
Profit and total
comprehensive profit
for the year - - - 865,510 865,510
Issue of shares (net
of costs) 81,429 668,026 - - 749,455
As at 31 October
2019 11,996,156 4,249,081 164,667 (13,845,322) 2,564,582
======================= =========== ========== ============ ============== ===========
STATEMENT OF FINANCIAL POSITION
2019 2018
GBP GBP
------------------------------------------- ------------- -------------
Non-current assets
Investment in subsidiaries 1 1
Total non-current assets 1 1
Current assets
Investments 1,165,409 1,029,526
Trade and other receivables 11,307 11,357
Cash and cash equivalents 1,426,799 48,028
-------------------------------------------- ------------- -------------
Total current assets 2,603,515 1,088,911
-------------------------------------------- ------------- -------------
Total assets 2,603,516 1,088,912
============================================ ============= =============
Equity
Issued share capital 11,996,156 11,914,727
Share premium 4,249,081 3,581,055
Retained earnings (13,845,322) (14,710,832)
Capital redemption reserve 164,667 164,667
-------------------------------------------- ------------- -------------
Total equity 2,564,582 949,617
Liabilities
Current liabilities
Trade and other payables 38,934 139,295
Total liabilities and current liabilities 38,934 139,295
-------------------------------------------- ------------- -------------
Total equity and liabilities 2,603,516 1,088,912
============================================ ============= =============
1. OPERATING PROFIT
2019 2018
GBP GBP
------------------------------------------------ ----- -----
Operating profit from continuing activities
is stated after charging:
Depreciation of property, plant and equipment - -
2. EARNINGS PER SHARE
2019 2018
GBP GBP
Profit attributable to the owners of the
Company
Continuing Operations 865,510 322,069
---------------------------------------------------- ----------- -----------
2019 2018
No. of No. of
Shares shares
---------------------------------------------------- ----------- -----------
Weighted average number of shares for calculating
basic profit per share 52,900,940 33,900,805
---------------------------------------------------- ----------- -----------
2019 2018
Pence Pence
---------------------------------------------------- ----------- -----------
Basic and diluted profit per share
Continuing Operations - basic and diluted 1.64 0.95
==================================================== =========== ===========
Copies of the accounts will shortly be posted to shareholders
and will be available on the Company's website at
www.piresinvestments.com
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries:
Pires Investments plc: +44 (0) 20 3 368 8961
Peter Redmond, Director
Nicholas Lee, Director
Nominated Adviser: +44 (0) 20 7213 0880
Cairn Financial Advisers LLP
Liam Murray
Ludovico Lazzaretti
Broker: +44 (0) 20 7562 3351
Peterhouse Capital Limited
Duncan Vasey / Lucy Williams
Financial Media and IR: +44 (0) 20 3004 9512
Yellow Jersey pires@yellowjerseypr.com
Sarah Hollins
Henry Wilkinson
Annabel Atkins
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements re ect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
This information is provided by RNS, the news service of the
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END
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