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Company Announcements

Preliminary Results - year to 30 September 2016

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By LSE RNS

RNS Number : 6808A
AssetCo PLC
28 March 2017
 

 

Providers of management and resources to the fire and emergency services in the Middle East

 

Tuesday, 28 March 2017

Immediate Release

AssetCo plc

("AssetCo" or the "Company")

Preliminary results for the year to 30 September 2016

 

 

Statement by the Chairman, Tudor Davies

 

Introduction

We are pleased to report an improvement in profits and cash generation for the year ended 30 September 2016, principally all of which arises from a Fire Services contract in Abu Dhabi we have held since 2010 and which has been extended until November 2017 when it is due for renewal.

 

Results

The Income Statement for the year ended 30 September 2016 shows an Operating Profit of £4.9m (2015; £4.4m) on Revenue of £23.3m (2015; £21.7m) and a Profit before and after Taxation of £4.6m (2015; £4.0m). The year on year increase is principally due to the weakness of sterling versus the United Arab Emirates Dirham in which currency our business is conducted.

The cash position remains strong at £18.8m (2015; £15.6m) comprising free cash balances of £15.5m (2015; £12.8m) and restricted cash balances held in respect of bonds amounting to £3.3m (2015; £2.8m).

 

Claim against Grant Thornton

The litigation against the Company's former auditors, where we have issued formal Court proceedings and amounts to a sum in the region of £40m, continues but is not due to be heard until the summer of 2018.

UAE Contract

As announced on 31 January 2017, we agreed and signed a one year extension to our existing Abu Dhabi Fire Services contract, on similar terms, effective from November 2016 until November 2017 and are awaiting its final signature and return from Abu Dhabi.

Outlook

Trading continues to be in line with management's expectations and we will keep shareholders informed regarding further progress on extending the UAE contract and also any developments from the Grant Thornton claim.

 

Enquiries:

AssetCo plc

Tudor Davies, Chairman

Tel: +44 (0) 7785 703523

        +44 (0) 20 7614 5900

 

Arden Partners plc

Nominated adviser and broker

John Llewellyn-Lloyd/ Ciaran Walsh

Tel: +44 (0) 20 7614 5900

 

TooleyStreet Communications

Fiona Tooley

Email: fiona@tooleystreet.com

Mobile: +44 (0) 7785 703523

 

AssetCo is principally involved in the provision of management and resources to the fire and emergency services in the Middle East. 

For further details, visit the website, www.assetco.com

Ticker: AIM: ASTO.L

Market cap: £43.35m

 

 

AssetCo plc

Income Statement

for the year to 30 September 2016

 



Year to 30 September



2016

2015




£'000

£'000







Revenue


23,300

21,660


Cost of sales


(16,550)

(15,564)


Gross profit


6,750

6,096


Administrative expenses


(1,874)

(1,647)


Operating profit


4,876

4,449


Finance income


21

23


Finance costs


(294)

(459)


Profit before tax


4,603

4,013


Income tax


-

-


Profit for the year


4,603

4,013












Earnings per share (EPS):





Basic - pence


37.70

32.86


Diluted -  pence


37.70

32.86








 

 

 

AssetCo plc

Statement of Comprehensive Income

for the year to 30 September 2016

 






Year to 30 September




2016

2015




£'000

£'000







Recognised profit for the year


4,603

4,013







Other comprehensive income





Exchange differences on translating foreign operations


1,858

866


Other comprehensive income, net of tax


1,858

866







Total comprehensive income for the year


6,461

4,879







 

 

 

 

AssetCo plc

Statement of Financial Position

As at 30 September 2016

 


 



 


30 September 2016

30 September 2015

 


£'000

£'000

Assets




Non-current assets




Property, plant and equipment


-

-

Cash held in respect of a bond


240

2,802

Total non-current assets


240

2,802





Current assets




Inventories


-

-

Trade and other receivables


12,498

6,629

Cash and cash equivalents


15,470

12,836

Cash held in respect of a bond


3,040

11

Total current assets


31,008

19,476





Total assets


31,248

22,278





Shareholders' equity




Share capital


25,474

25,474

Share premium


64,941

64,941

Profit and loss account


(64,359)

(70,820)

Total equity


26,056

19,595





Liabilities




Current liabilities




Trade and other payables


5,192

2,683

Total current liabilities


5,192

2,683





Total liabilities


5,192

2,683





Total equity and liabilities


31,248

22,278

 

The financial statements were authorised for issue by the board of directors on 28 March 2017 and were signed on its behalf by Tudor Davies.

 

 

 

 

AssetCo plc

Statement of Changes in Equity

for the year to 30 September 2016

 



 

 

Share

capital

 

 

Share

premium


 

Profit

and loss

reserve

 

 

Total

equity



£'000

£'000


£'000

£'000









Balance at 30 September 2014

25,474

64,941


(75,699)

14,716


 

Profit for the year

Other comprehensive income:

Exchange differences on translation

 

-

 

-

 

-

 

-


 

4,013

 

866

 

4,013

 

866


Total comprehensive income for the year

-

-


4,879

4,879









Balance at 30 September 2015

25,474

64,941


(70,820)

19,595


 

Profit for the year

Other comprehensive income:

Exchange differences on translation

 

-

 

-

 

-

 

-


 

4,603

 

1,858

 

4,603

 

1,858


Total comprehensive income for the year

-

-


6,461

6,461









Balance at 30 September 2016

25,474

64,941


(64,359)

26,056


 

 

 

 

AssetCo plc

Statement of Cash Flows

for the year to 30 September 2016

 



Year to 30 September


2016

2015


Note

£'000

£'000

Cash flows from operating activities




Cash generated from operations

5

2,151

4,758

Cash deposited in respect of a performance bond


-

(223)

Cash released in respect of a performance bond


-

2,814

Finance costs


(294)

(459)

Net cash generated from operating activities


1,857

6,890





Cash flows from investing activities




Finance income


21

23

Net cash generated from investing activities


21

23





Net change in cash and cash equivalents


1,878

6,913





Cash, cash equivalents and bank overdrafts at beginning of year


12,836

5,787

Exchange differences on translation


756

136

Cash, cash equivalents and bank overdrafts at end of year

6

15,470

12,836

 

 

AssetCo plc

Notes to the Financial Statements

for the year to 30 September 2016

 

1.

Legal status and activities


 

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.

 

AssetCo plc shares are listed on the Alternative Investment Market ("AIM") of the London Stock Exchange.

 

This preliminary announcement has been presented in sterling to the nearest thousand pounds (£'000) except where otherwise indicated, as are the financial statements, which were authorised for issue by the board of directors on 28 March 2017.

 

2.

Basis of preparation


The preliminary results for the period to 30 September 2016, which do not form the statutory accounts of the Company, are an abridged statement of the full Annual Report and Financial Statements, which have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union, and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

 

The preliminary results have been prepared on a going concern basis.

 

The principal accounting policies are included in the financial statements and have been applied consistently in both periods presented.

 

3.

Segmental reporting

 

The core principle of IFRS 8 'Operating Segments' is to require an entity to disclose information that enables users of the financial statements to evaluate the nature and financial effects of the business activities in which the entity engages and the economic environments in which it operates.  Segmental information is therefore presented in respect of the Company's geographical settlement.  No secondary segmental information has been provided as, in the view of the directors, the Company operates in only one segment, being the provision of management and resources to fire and emergency services.  The directors consider the chief operating decision maker is the board.

 

The amounts provided to the board with respect to net assets are measured in a manner consistent with that of the financial statements.  The Company is domiciled in the UK and operates a branch in UAE.  Revenue by destination is not materially different from revenue by origin shown above.  All revenue relates to services.  Unallocated comprises the head office.

 

Analysis of revenue and results by geographical settlement

 

Year to 30 September 2016

 

 

UAE

£'000

 

Unallocated

£'000

Continuing operations

£'000

Revenue




Revenue to external customers

23,300

-

23,300

Total revenue

23,300

-

23,300





Segment result




EBITDA

6,050

(1,174)

4,876

Depreciation

-

-

-

Operating profit

6,050

(1,174)

4,876

Finance income

7

14

21

Finance costs

(294)

-

(294)

Profit for the year

5,763

(1,160)

4,603





Assets and liabilities




Total segment assets

19,110

12,138

31,248

Total segment liabilities

(4,414)

(778)

(5,192)

Total net assets

14,696

11,360

26,056





Other segment information




Total capital expenditure

-

-

-





 

 

 

 

Analysis of revenue and results by geographical settlement ……continued


 

Year to 30 September 2015

 

 

UAE

£'000

 

Unallocated

£'000

Continuing operations

£'000


Revenue





Revenue to external customers

21,660

-

21,660


Total revenue

21,660

-

21,660






Segment result





EBITDA

5,383

(922)

4,461


Depreciation

(12)

-

(12)


Operating profit

5,371

(922)

4,449


Finance income

11

12

23


Finance costs

(459)

-

(459)


Profit for the year

4,923

(910)

4,013






Assets and liabilities





Total segment assets

13,942

8,336

22,278


Total segment liabilities

(2,294)

(389)

(2,683)


Total net assets

11,648

7,947

19,595







Other segment information





Total capital expenditure

-

-

-






 

4.

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.



Year to 30 September



2016

£'000

2015

£'000


Profit for the year

4,603

4,013






Weighted average number of shares in issue

12,211,163

12,211,163






Basic and diluted earnings per share (EPS) - pence

37.70

32.86



 

5.

Reconciliation of profit before tax to cash generated from operations



Year to 30 September


2016

2015


£'000

£'000




Profit for the year before tax

4,603

4,013

Depreciation and impairment

-

12

Finance costs

294

459

Finance income

(21)

(23)

Decrease in inventories

-

333

(Increase)/decrease in debtors

(4,766)

65

Increase/(decrease) in creditors

2,041

(101)




Cash generated from operations

2,151

4,758

 


                 At 30 September

6.

Analysis of net cash:

2016

£'000

2015

£'000






Cash at bank and in hand

15,470

12,836







15,470

12,836






There was cash of £15,470,000 as at 30 September 2016 (2015: £12,836,000) and cash held in respect of bonds of £3,280,000 (2015: £2,813,000).

 

 

 

7.

   Contingent liabilities



Approximate maximum liability


2016

£'000

2015

£000




Performance bond related to a UAE contract, expected to be released in full in 2017

3,000

2,500




Performance bond related to a UAE contract, expected to reduce to approximately £1m in 2017 and to be released in full in 2020

 

2,400

 

2,000




Performance bond related to a UAE contract, expected to be released in full in 2017

130

100




 

8.

Post balance sheet events


There are no post balance sheet events to report.

 

9.

Annual General Meeting

 

The annual general meeting is to be held at 11.30 a.m. on Friday, 5 May 2017 at Harwood Capital, 6 Stratton Street, London, W1J 8LD.

A Notice convening the annual general meeting will be posted to shareholders in due course.

 

10.

Electronic communications

 

This Preliminary Announcement is available on the Company's website www.assetco.com.  News updates, regulatory news and financial statements can be viewed and downloaded from the Company's website, www.assetco.com.  Copies can also be requested, in writing, from The Company Secretary, AssetCo plc, Singleton Court Business Park, Wonastow Road, Monmouth, Monmouthshire NP25 5JA.  The Company is not proposing to bulk print and distribute hard copies of the Annual Report and Financial Statements for the year to 30 September 2016 unless specifically requested by individual shareholders; it can be downloaded from the Company's website.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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