14 December 2011
Alpha Strategic PLC
("Alpha Strategic" or the "Company")
Interim results for the period ended 30 September 2011
Alpha Strategic PLC, the specialist investment management group, is pleased to announce its unaudited results for the 6 months ended 30 September 2011
Highlights
· Revenue increased to £339,000 (6 months to 30 September 2010: £281,000)
· Operating loss reduced to £19,000 (6 months to 30 September 2010: £107,000)
· £2.5m (£2.3m net) share placing
· Net assets £5.4 million (30 September 2010: £3.1 million)
· Healthy cash balance at £3.3 million (30 September 2010: £1.1 million)
Enquiries:
Alpha Strategic PLC 020 7222 3005
Nicola Meaden Grenham, Chief Executive Officer
Kit Malthouse, Finance Director
Arbuthnot Securities Limited 020 7012 2000
Tom Griffiths
To obtain a copy of this report, and for information on the Company and its directors, please visit our website at www.alphastrategic.com
Alpha Strategic PLC
("Alpha Strategic" or the "Company")
Interim results for the period ended 30 September 2011
Chairman's statement
Dear Shareholder
The Company is pleased to announce its unaudited interim results for the 6 months ended 30th September 2011.
The period has seen a significant event in the life of Alpha Strategic with the substantial investment in the Company by Northill Europe Holdings ("Northill"). An essential component of the relationship with Northill is the understanding, subject to all the usual caveats, that they are prepared to subscribe for additional shares to enable Alpha to undertake transactions wholly or partly for cash (not only for shares). It is already clear that this expands the range of transactions available to the Company and should accelerate its growth. Following the transaction, Jon Little, a director of Northill, was welcomed onto our Board, bringing a wealth of experience in the global asset management industry. His input and the substantial backing of Northill transforms Alpha's future prospects.
The last six months have seen a challenging market with extreme volatility and a difficult trading environment. However, both Winton's Global Futures Fund (GFF) and IKOS's FX Fund have performed well against the average performance of the hedge fund sector. For the six months to 30 September 2011 GFF was up approximately 3.2%, while IKOS's FX Fund was down approximately 3.65%. The hedge fund sector as a whole was down 9.13% during this period.
As a result our income for the period improved on last year, rising to £339,000 (6 months to 30 September 2010: 281,000). The result overall for the first half was significantly improved given that we were no longer required to amortise any income arising from our transaction with IKOS, and we were able to offset the costs of the transaction with Northill against our share premium account. The broadly breakeven result was also despite an increase in overheads, reflecting our investment in a larger team to spread the Alpha net and message as wide as possible.
On the balance sheet, the new investment boosted our coffers very significantly and the Company is now carrying a healthy level of cash at approximately £3.3 million (30 September 2010: £1.1million). There was a consequent rise in net assets to approximately £5.4 million (30 September 2010: £3.1million).
This reasonably pleasing set of interim results, while welcome, is nowhere near as welcome as a fourth transaction, which has been tantalisingly close on a number of occasions. Rest assured that we are pursuing all opportunities vigorously, and at the same time prudently.
I would like to thank all shareholders who have kept faith in the Company and for your continuing support.
Colin Barrow
Chairman
14 December, 2011
Alpha Strategic PLC
Consolidated statement of comprehensive income
for the six months ended 30 September 2011
|
|
Six months |
|
Six months |
|
Year |
|
|
|
ended |
|
ended |
|
Ended |
|
|
|
30 September |
|
30 September |
|
31 March |
|
|
|
2011 |
|
2010 |
|
2010 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
Notes |
£000 |
|
£000 |
|
£000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
339 |
281 |
|
610 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other administrative expenses |
|
(358) |
|
(264) |
|
(609) |
|
Amortisation of intangible assets |
|
- |
|
(124) |
|
(124) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total administrative expenses |
|
(355) |
|
(388) |
|
(733) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(19) |
|
(107) |
|
(123) |
|
|
|
|
|
|
|
|
|
Finance income Interest receivable and similar income |
|
1 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before tax |
|
(18) |
|
(107) |
|
(123) |
|
|
|
|
|
|
|
|
|
Taxation |
|
- |
|
34 |
|
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and total comprehensive income for the period attributable to shareholders |
|
(18) |
|
(73) |
|
(89) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per share |
5 |
(0.21) |
p |
(1.61) |
p |
(1.97) |
p |
Alpha Strategic PLC
Statement of financial position
as at 30 September 2011
|
|
30 September |
|
30 September |
|
31 March |
|
|
2011 |
|
2010 |
|
2010 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
£000 |
|
£000 |
|
£000 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Goodwill |
|
1,853 |
|
1,853 |
|
1,853 |
Plant and equipment |
|
9 |
|
10 |
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,862 |
|
1,863 |
|
1,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Trade and other receivables |
|
234 |
|
177 |
|
387 |
Cash and cash equivalents |
|
3,385 |
|
1,132 |
|
1,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,619 |
|
1,309 |
|
1,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
5,481 |
|
3,172 |
|
3,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity and liabilities |
|
|
|
|
|
|
Capital and reserves attributable to the equity holders of the parent |
|
|
|
|
|
|
Share capital |
|
142 |
|
95 |
|
95 |
Share premium |
|
4,948 |
|
2,649 |
|
2,649 |
Merger reserve |
|
1,341 |
|
1,341 |
|
1,341 |
Accumulated deficit |
|
(985) |
|
(951) |
|
(967) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,446 |
|
3,134 |
|
3,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Trade and other payables |
|
35 |
|
38 |
|
211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35 |
|
38 |
|
211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity and liabilities |
|
5,481 |
|
3,172 |
|
3,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alpha Strategic PLC
Statement of changes in equity
for the six months ended 30 September 2011
|
Attributable to equity holders of the Company |
|||||
|
Share Capital
|
Share Capital 'A' shares
|
Share premium
|
Merger reserve
|
Accumulated deficit
|
Total equity
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
At 1 April 2010 |
45 |
50 |
2,649 |
1,341 |
(878) |
3,207 |
Loss and total comprehensive income for the period attributable to shareholders |
- |
- |
- |
- |
(73) |
(73) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 September 2010 |
45 |
50 |
2,649 |
1,341 |
(951) |
3,134 |
Loss and total comprehensive income for the period attributable to shareholders |
- |
- |
- |
- |
(16) |
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 March 2011 |
45 |
50 |
2,649 |
1,341 |
(967) |
3,118 |
Loss and total comprehensive income for the period attributable to shareholders |
- |
- |
- |
- |
(18) |
(18) |
Shares issued in period |
47 |
- |
2,446 |
- |
- |
2,493 |
Share issue expenses |
- |
- |
(147) |
|
|
(147) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 September 2011 |
92 |
50 |
4,948 |
1,341 |
(985) |
5,446 |
|
|
|
|
|
|
|
Share Capital is the amount subscribed for ordinary shares at nominal value. Share Capital 'A' shares is the amount subscribed for 'A' ordinary shares at nominal value.
Share premium represents the excess of the amount subscribed for share capital over the nominal value of these shares net of share issue expenses.
The merger reserve comprises the excess of the amount subscribed for share capital over the nominal value of ordinary shares issued in respect of the acquisition of subsidiaries in accordance with the merger relief provisions of the Companies Act 1985 and the Companies Act 2006.
Accumulated deficit represent cumulative losses of the Group attributable to equity holders.
Alpha Strategic PLC
Statements of cash flows
for the six months ended 30 September 2011
|
|
Six months |
|
Six months |
|
Year |
|
|
ended |
|
ended |
|
ended |
|
|
30 September |
|
30 September |
|
31 March |
|
|
2011 |
|
2010 |
|
2011 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
£000 |
|
£000 |
|
£000 |
Cash flow from operating activities |
|
|
|
|
|
|
Operating loss before taxation |
|
(18) |
|
(107) |
|
(123) |
|
|
|
|
|
|
|
Finance income |
|
(1) |
|
- |
|
- |
Depreciation |
|
3 |
|
2 |
|
5 |
Amortisation |
|
- |
|
124 |
|
124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities before changes in working capital |
|
(16) |
|
19 |
|
6 |
|
|
|
|
|
|
|
Increase/(decrease) in trade and other receivables |
|
153 |
|
(2) |
|
(212) |
(Decrease)/increase in trade and other payables |
|
(176) |
|
(10) |
|
163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flow from operations |
|
(39) |
|
7 |
|
(43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
Purchases of plant and equipment |
|
(3) |
|
(1) |
|
(3) |
Interest received |
|
1 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flow from investing activities |
|
(2) |
|
(1) |
|
(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
Issue of ordinary shares |
|
2,493 |
|
- |
|
- |
Share issue expenses |
|
(147) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flow from financing activities |
|
2,346 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents in the period |
|
2,305 |
|
6 |
|
(46) |
Cash and cash equivalents at beginning of the period |
|
1,080 |
|
1,126 |
|
1,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of the period |
|
3,385 |
|
1,132 |
|
1,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents comprise: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
3,385 |
|
1,132 |
|
1,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of the period |
|
3,385 |
|
1,132 |
|
1,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alpha Strategic PLC
Notes to the interim results
for the six months ended 30 September 2011
1 The Group
The principal activity of the Group is to acquire shares in, or enter joint ventures with, or provide services to, hedge fund management businesses, so as to acquire high quality diversified revenue streams. The Company has its listing on the Alternative Investment Market ("AIM") of the London Stock Exchange.
2 Basis of preparation
These unaudited consolidated interim financial statements are for the six month period to 30 September 2011. They do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 March 2011, which were prepared under International Financial reporting Standards ("IFRS") as adopted by the European Union ("EU").
These interim consolidated financial statements have been prepared in accordance with accounting policies consistent with those set out in the Group's financial statements for the year ended 31 March 2011 and are consistent with the accounting policies the Group will use to prepare its financial statements for the year ended 31 March 2012. This half-yearly report does not contain sufficient information to constitute an interim financial report as set out in IAS34.
The financial information for the year ended 31 March 2011 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2011 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2011 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under S 498(2) or S 498(3) of the Companies act 2006.
3 Segmental analysis
The group's entire revenue is generated in the UK from a single business segment; that of providing services to hedge fund management businesses within Europe.
Management and financial reports received by the Board are prepared on the basis of the single business unit.
4 Dividends
The directors have not paid nor do they declare a dividend in the period (six months to 30 September 2010: nil; year to 31 March 2011: nil).
5 Loss per share
The calculation of the basic loss per share is based upon the loss after tax attributable to ordinary shareholders of £18,000 (six months to 30 September 2010: loss of £73,000; year to 31 March 2011: loss of £89,000) and a weighted average number of shares in issue for the year of 8,377,291 (six months to 30 September 2010 and year ended 31 March 2011: 4,520,621).
Diluted earnings per share for the six months to 30 September 2011, the six months to 30 September 2010 and the year to 31 March 2011 is the same as the basic loss per share because the inclusion of conversion rights and warrants have an anti-dilutive effect on the calculation.
6 Availability of this announcement
Copies of the financial statements will be available on the Company's website, www.alphastrategic.com, or can be obtained by contacting the Company Secretary at 66 Buckingham Gate, London SW1E 6AU.
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