Interim Results for the six m

RNS Number : 4056Y

Adalta Real PLC

22 December 2010

 



For immediate release                                                                                      22 December 2010

Adalta Real plc ("Adalta Real" or "the Company")

UNAUDITED INTERIM REPORT AND FINANCIAL STATEMENTS

for the  Six Months Period ended 30 September 2010

Chairman's Statement                                                                                     

for the six month period ended 30 September 2010

I am pleased to present the Unaudited Interim Financial Statements of your Company for the six months period ended 30 September 2010 ("the Period").

These Interim Statements are presented on an unconsolidated basis, ie. as a single entity, the form which the Company will apply to the financial statements for the year to 31 March 2011.

Financials

In the six months ended 30 September 2010, total revenue amounted to £218,515 and comprehensive income was £15,640, a profit which is welcome compared with a loss of £111,993 in the equivalent period of 2009, ie. prior to the sale of the Company's then operating subsidiary, thereby representing a positive improvement of £127,633. This level of profit in such a short time demonstrates that the Company's Agency and Consultancy businesses have become well established during the Period. The Company has also been able to explore a number of commercial property development opportunities.

The balance of shareholders' funds at 30 September 2010 was £580,119, which represents a similar result to that at 31 March 2010. The Board believes that the maintenance of a healthy Balance Sheet is fundamental to the sustainability of the Company in the turbulent times of the after effects of a such a severe recession in the UK.

Activities

Since the approval by Shareholders of the Company's New Investing Policy in July 2009, the Company has been focussing on its Agency and Consultancy businesses.  In the Period a number of commercial property agency and consultancy instructions have been received and an encouraging number of development opportunities identified, some of which will hopefully come to fruition in the foreseeable future.

The Company also has the benefit of a formal Agency and Consultancy Contract with the major national retail company with which it has been working throughout 2010 and in consequence has generated a satisfactory level of income from its specific instructions as well as ongoing agency and consultancy activities in the Period. In addition, the Company has earned revenue from local commercial property clients and also has a reasonable number of similar local instructions in the pipeline.

The Company has also benefited from the sterling efforts of its dedicated team, thereby enabling the Company to continue the intensity of its activities, which in this Period has produced the noteworthy financial results referred to above.

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Remainder of the Year and Future Prospects

Since the end of the Period, the Board has continued to concentrate its efforts on the expansion of the commercial property agency and consultancy instructions, which are increasing and will continue to produce a revenue stream of fees without requiring any external funding.

Furthermore, the Company is now processing a number of development opportunities which are at different stages and which will be progressed as rapidly as circumstances will allow.

Overall, I am delighted with the performance of the Company in general, and its operational team in particular, over the Period and up to date. This is especially the case against a background of the consequences of the severe UK recession and a hazardous UK business environment.

It would be remiss of me not to mention the suspension of the Company's shares to trading on AIM. AIM has concluded that the Company had not sufficiently implemented its New Investing Policy in accordance with Rule 15. Consequently the Company's shares were suspended on 9 August 2010.

The Company believed that it had implemented its New Investing Policy as set out in the Circular to Shareholders dated 14 July 2009 and approved by the Shareholders at the General Meeting held on 30 July 2009. However, AIM has confirmed that to restore the Company's shares to trading on AIM the Company would need to expend almost all of its financial resources by investing it in property or in the completion of a reverse takeover before 9 February 2011. The Company does not consider such transactions to be a suitable use of its resources or to be in the best interests of the Company or its Shareholders.

Accordingly, in order to preserve working capital cash within the Company and, in the interests of all shareholders, to maintain a valid market upon which the Company's ordinary shares can be freely traded, the Board has decided to apply for the ordinary share capital of the Company to be admitted to the PLUS-quoted market operated by PLUS Markets Group Plc and to cancel the admission of such share capital to trading on AIM. A further announcement will be made in due course.

Kevin M Gilmore FRICS

Executive Chairman

22^nd December 2010

Contact:         Adalta Real Plc                                                  Tel: [phone]

                        Kevin Gilmore                                                    Mob: [phone]

                        Beaumont Cornish Limited                              Tel: [phone]

                        Roland Cornish

                        Rivington Street Corporate Finance Ltd      Tel: [phone]

                        Eran Zucker

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Statement of Comprehensive Income

for the six months ended 30 September 2010

	Unaudited 6 months  to 30 September 2010 £'000		Unaudited 6 months  to 30 September 2009 £'000		Audited 12 months to 31 March 2010 £'000
REVENUE	218.5		-		11.0
Cost of sales	(70.6)		-		(7.2)
GROSS PROFIT	147.9		-		3.8
Administrative expenses	(133.3)		(102.3)		(303.6)
PROFIT/(LOSS) FROM OPERATIONS BEFORE ONE-OFF ITEMS	14.6		(102.3)		(299.8)
Loss on disposal of investments	-		(10.6)		(15.1)
PROFIT/(LOSS) FROM OPERATIONS	14.6		(112.9)		(314.9)
Finance income	1.0		0.9		0.9
PROFIT/(LOSS) BEFORE TAXATION	15.6		(112.0)		(314.0)
Taxation	-		-		-
PROFIT/(LOSS) AFTER TAXATION	15.6		(112.0)		(314.0)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO SHAREHOLDERS	15.6		(112.0)		(314.0)
BASIC EARNINGS PER SHARE (Note 4)	0.08p		(0.54p)		(1.52p)
DILUTED EARNINGS PER SHARE (Note 4)	0.08p		(0.54p)		(1.52p)

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Statement of Financial Position

as at 30 September 2010

		Unaudited 30 September 2010 £'000		Unaudited 30 September 2009 £'000		Audited 31 March 2010 £'000
ASSETS
NON CURRENT ASSETS
Property, plant and equipment		23.9		19.2		24.2
		23.9		19.2		24.2
CURRENT ASSETS
Inventories		9.2		-		3.0
Trade and other receivables		291.3		156.9		65.7
Cash and cash equivalents		313.0		744.2		544.4
TOTAL CURRENT ASSETS		613.5		901.1		613.1
TOTAL ASSETS		637.4		920.3		637.3
EQUITY AND LIABILITIES
CURRENT LIABILITIES
Trade and other payables		57.3		181.0		72.8
TOTAL CURRENT LIABILITIES		57.3		181.0		72.8
SHAREHOLDERS' EQUITY
Called up share capital		1,030.7		1,030.7		1,030.7
Share premium account		1,558.1		1,558.1		1,558.1
Retained earnings		(2,008.7)		(1,849.5)		(2,024.3)
TOTAL SHAREHOLDERS' EQUITY		580.1		739.3		564.5
TOTAL EQUITY AND LIABILITIES		637.4		920.3		637.3

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Statement of Changes in Equity

for the six months ended 30 September 2010

	Share capital £'000	Share premium £'000	Retained earnings £'000	Total £'000
At 1 April 2009	1,030.7	1,558.1	(1,737.5)	851.3
Total comprehensive income	-	-	(112.0)	(112.0)
At 30 September 2009	1,030.7	1,558.1	(1,849.5)	739.3
Total comprehensive income	-	-	(202.0)	(202.0)
Reserve movement arising from share based payments	-	-	27.2	27.2
At 31 March 2010	1,030.7	1,558.1	(2,024.3)	564.5
Total comprehensive income	-	-	15.6	15.6
At 30 September 2010	1,030.7	1,558.1	(2,008.7)	580.1

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Statement of Cash Flow

for the six months ended 30 September 2010

	Unaudited 6 months to 30 September 2010 £'000		Unaudited  6 months to 30 September 2009 £'000		Audited 12 months to 31 March 2010 £'000
Cash flows from operating activities
Profit/(loss) from operations	14.6		(112.9)		(314.9)
Adjustments for depreciation	2.0		0.1		1.6
Loss on disposal of subsidiary	-		10.6		15.1
Adjustments for share based payment expense	-		-		27.2
Cash flows from operations before changes in working capital	16.6		(102.2)		(271.0)
Changes in working capital
Increase in inventories	(6.2)		-		(3.0)
Increase in trade and other receivables	(225.6)		(102.3)		(11.1)
(Decrease)/increase in trade and other payables	(15.5)		167.7		59.5
Total changes in working capital	(247.3)		65.4		45.4
Cash absorbed by total operating activities	(230.7)		(36.8)		(225.6)
Cash flows from investing activities
Interest received	1.0		0.9		0.9
Proceeds from disposal of subsidiary undertaking	-		1,044.5		1,044.5
Less expenditure in connection with disposal of subsidiary undertaking	-		(255.1)		(259.5)
Net expenditure on non-property related non-current assets	(1.7)		(19.3)		(25.9)
Net cash generated from investing activities	(0.7)		771.0		760.0
Net (decrease)/increase in cash and cash equivalents	(231.4)		734.2		534.4
Cash and cash equivalents at beginning of period	544.4		10.0		10.0
Cash and cash equivalents at end of period	313.0		744.2		544.4

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Notes to the Unaudited Interim Financial Statements

for the six months ended 30 September 2010

1  GENERAL INFORMATION

Adalta Real Plc is a public limited company ('Adalta Real' or the 'Company') incorporated in the United Kingdom under the UK Companies Acts (Registration number 04075473), whose shares are listed on the Alternative Investment Market ('AIM'). The Company's registered office address is Church Court, Stourbridge Road, Halesowen, West Midlands, B63 3TT, United Kingdom.

The Company's principal activities during the period were commercial property agency, commercial property consultancy, followed by the acquisition and development of, and/or investment in commercial property and potential corporate acquisitions, the latter mainly in the property sector.

2  BASIS OF ACCOUNTING

The financial information has been prepared on the historical cost basis. The accounting policies set out below have been applied consistently to all periods presented in this six month report.

3 BASIS OF PREPARATION  

These condensed Interim Statements are for the six months ended 30 September 2010. The   Company has not adopted the reporting requirements of International Accounting Standard (IAS) 34 'Interim Financial Reporting'. The Interim Statements do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements of the Company for the year ended 31 March 2010.

The Interim Statements have been prepared applying the accounting policies and presentation that were applied in the preparation of the 2010 financial statements.

These Interim Statements for the six months ended 30 September 2010 has neither been audited nor reviewed by the Company's auditors. The financial information for the year ended 31 March 2010 set out in these Interim Statements does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The statutory accounts for the year ended 31 March 2010 have been reported on by the company's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 498(2) or 498(5) of the Companies Act 2006.

4 EARNINGS PER SHARE

The calculation of basic earnings per share is profit of £15,640 (2009: loss £111,993) divided by 20,613,292 shares (2009: 20,613,292 shares), being the weighted average number of ordinary shares in issue during the period.

Diluted earnings per share is calculated using the weighted average number of shares

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adjusted to assume conversion of all ordinary share options at 30 September 2010 that had an exercise price below the estimated average fair price for the six months ended 30 September 2010.

Since the exercise price of the 1,956,000 (2009: 1,330,000) share options is above the estimated average fair price for the period, the diluted earnings per share is equivalent to the basic earnings per share. 

5 APPROVAL OF THE INTERIM HALF YEAR REPORT

These Interim Statements for the six month period to 30 September 2010 were approved by the Board of Directors on 22 December 2010. 

6 WEBSITE

These Interim Statements are being posted to shareholders and will be available on the website: www.adaltareal.com

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