Preliminary Results - year to 30 September 2017

RNS Number : 1539J
AssetCo PLC
28 March 2018
 



 

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

 

Date: 28 March 2018

Immediate Release

 

AssetCo plc

("AssetCo" or the "Company")

Preliminary results for the year to 30 September 2017

 

 

Statement by the Chairman, Tudor Davies

 

Introduction

We are pleased to report the results for the year to 30 September 2017.

 

Results

Profit after taxation in the period under review was £2.2m (2016: £4.6m) on revenue of £24.9m (2017: £23.3m) with the reduction in profitability being an increase in the litigation costs incurred in our claim for negligence against Grant Thornton.

 

The cash position remains strong with free cash balances of £21.5m (2016: £15.5m).

 

Our business is based on the provision of an outsourced fire service agreement with the Abu Dhabi government, which commenced in April 2010, but since November 2016, has continued satisfactorily on the same basis and on similar terms but with a contract entered into on an arrears basis every five or six months, whilst a longer-term arrangement is considered by the Abu Dhabi government.

 

Claim against Grant Thornton

The claim for negligence against AssetCo's former auditors, Grant Thornton, which with interest amounts to approximately £40.0m, is now scheduled to be concluded at a trial in June 2018.

 

As previously reported by the Financial Reporting Council ("FRC") on conclusion of their investigations in relation to the audits in 2009 and 2010, Grant Thornton were fined £3.5m and given a severe reprimand.  Separately, the audit partner Mr Robert Napper was fined £200,000 and excluded from membership of the Institute of Chartered Accountants for three years. 

 

The FRC report on AssetCo entitled Particulars of Facts and Acts of Misconduct: Grant Thornton UK LLP and Robert Napper, is available on the FRC website www.frc.org.uk.

 

Outlook

Trading continues to be in line with management's expectations and we will keep shareholders informed on any developments in relation to the Grant Thornton claim and our Abu Dhabi business.

 

 

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: £33.6m

 

 

AssetCo plc

Income Statement

for the year to 30 September 2017

 

 



Year ended

Year ended



30 September

30 September



2017

2016


Notes

£000

£000





Revenue


24,881

23,300

Cost of sales


(17,738)

(16,550)



----

----

Gross profit


7,143

6,750

Administrative expenses


(4,891)

(1,874)



----

----

Operating profit


2,252

4,876

Finance income


8

21

Finance costs


(87)

(294)



----

----

Profit before tax


2,173

4,603

Income tax expense


-

-



----

----

Profit for the year


2,173

4,603



▬▬▬▬

▬▬▬▬





Earnings per share




Basic - pence

4

17.80

37.70

Diluted - pence

4

17.80

37.70

 

 

 

AssetCo plc

Statement of Comprehensive Income

for the year to 30 September 2017

 

 



Year ended

Year ended



30 September

30 September



2017

2016



£000

£000





Recognised profit for the year


2,173

4,603





Other comprehensive (expense)/income




Exchange differences on translating foreign operations


(438)

1,858



----

----

Other comprehensive (expense)/income, net of tax


 

(438)

 

1,858



----

----

Total comprehensive income for the year


1,735

6,461



▬▬▬▬

▬▬▬▬





 

 

 

 

AssetCo plc

Statement of Financial Position

As at 30 September 2017

 



At

At



30 September

30 September



2017

2016


Notes

£000

£000

Assets




Non-current assets




Property, plant and equipment


-

-

Cash held in respect of a bond


233

240



----

----

Total non-current assets


233

240



----

----

Current assets




Inventories


-

-

Trade and other receivables


10,685

12,498

Cash and cash equivalents

6

21,530

15,470

Cash held in respect of bonds


102

3,040



----

----

Total current assets


32,317

31,008



----

----

Total assets


32,550

31,248



▬▬▬▬

▬▬▬▬





Liabilities




Current liabilities




Trade and other payables


4,759

5,192



----

----

Total current liabilities


4,759

5,192



----

----

Total liabilities


4,759

5,192



----

----





Shareholders' equity




Share capital


25,474

25,474

Share premium


64,941

64,941

Profit and loss account


(62,624)

(64,359)



----

----

Total equity


27,791

26,056



----

----

Total equity and liabilities


32,550

31,248



▬▬▬▬

▬▬▬▬

 

 

The financial statements were authorised for issue by the board of directors on 27 March 2018 and were signed on its behalf by Tudor Davies.

 



 

 

AssetCo plc

Statement of Changes in Equity

for the year to 30 September 2017

 

 




Profit



Share

Share

and loss

Total


capital

premium

account

Equity


£000

£000

£000

£000






Balance at 30 September 2015

25,474

64,941

(70,820)

19,595

Profit for the year

-

-

4,603

4,603

Other comprehensive income:





Exchange differences on translation

-

-

1,858

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

Profit for the year

-

-

2,173

2,173

Other comprehensive expense:





Exchange differences on translation

-

-

(438)

(438)


----

----

----

----

Total comprehensive income for the year

-

-

1,735

1,735


----

----

----

----

Balance at 30 September 2017

25,474

64,941

(62,624)

27,791


▬▬▬▬

▬▬▬▬

▬▬▬▬

▬▬▬▬

 



 

 

AssetCo plc

Statement of Cash Flows

for the year to 30 September 2017

 

 



Year ended

Year ended



30 September

30 September



2017

2016


Notes

£000

£000





Cash flows from operating activities




Cash generated from operations

5

3,094

2,151

Cash deposited in respect of a bond


(104)

-

Cash released in respect of bonds


3,246

-

Finance costs


(87)

(294)



----

----

Net cash generated from operating activities


6,149

1,857



----

----

Cash flows from investing activities




Finance income


8

21



----

----

Net cash generated from investing activities


8

21



----

----

Net change in cash and cash equivalents


6,157

1,878

Cash and cash equivalents at beginning of year


15,470

12,836

Exchange differences on translation


(97)

756



----

----

Cash and cash equivalents at end of year


21,530

15,470



▬▬▬▬

▬▬▬▬

 



 

AssetCo plc

Notes to the Financial Statements

for the year to 30 September 2017

 

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 UAE and its strategy is to develop this business.  As at period end, the Company has no subsidiaries.

 

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 27 March 2018.

 

2.

Basis of preparation


The preliminary results for the year to 30 September 2017, 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 the United Arab Emirates.  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 ended 30 September 2017


 

UAE

£000

 

Unallocated

£000

Continuing

Operations

£000

 

Revenue




 





 

Revenue to external customers

24,881

-

24,881

 


----

----

----

 

Total revenue

24,881

-

24,881

 


▬▬▬▬

▬▬▬▬

▬▬▬▬

 

Segment result




 

EBITDA and operating profit

6,450

(4,198)

2,252

 

Finance income

-

8

8

 

Finance costs

(87)

-

(87)

 


----

----

----

 

Profit before tax

6,363

(4,190)

2,173

 

Income tax

-

-

-

 


----

----

----

 

Profit for the year

6,363

(4,190)

2,173

 


▬▬▬▬

▬▬▬▬

▬▬▬▬

 

Segment assets and liabilities




 

Total assets

18,669

13,881

32,550

 

Total liabilities

(3,348)

(1,411)

(4,759)

 


----

----

----

 

Total net assets

15,321

12,470

27,791

 


▬▬▬▬

▬▬▬▬

▬▬▬▬

 

Other segment information




 

Total capital expenditure

-

-

-

 


▬▬▬▬

▬▬▬▬

▬▬▬▬

 

 

Year ended 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 and operating profit

6,050

(1,174)

4,876

 

Finance income

7

14

21

 

Finance costs

(294)

-

(294)

 


----

----

----

 

Profit before tax

5,763

(1,160)

4,603

 

Income tax

-

-

-

 


----

----

----

 

Profit for the year

5,763

(1,160)

4,603

 


▬▬▬▬

▬▬▬▬

▬▬▬▬

 

Segment assets and liabilities




 

Total assets

19,110

12,138

31,248

 

Total liabilities

(4,414)

(778)

(5,192)

 


----

----

----

 

Total net assets

14,696

11,360

26,056

 


▬▬▬▬

▬▬▬▬

▬▬▬▬

 

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.



2017

2016



£000

£000


Profit for the year

2,173

4,603



----

----


Weighted average number of ordinary shares in issue

12,211,163

12,211,163


Basic and diluted earnings per share - pence

17.80

37.70



 

5.

Reconciliation of profit before tax to cash generated from operations



2017

2016


£000

£000

Profit for the year before taxation

2,173

4,603

Finance costs

87

294

Finance income

(8)

(21)

Decrease/(increase) in receivables

1,191

(4,766)

(Decrease)/increase in payables

(349)

2,041


----

----


3,094

2,151


▬▬▬▬

▬▬▬▬

 

6.

Analysis of net cash

                 At 30 September



2017

2016


£000

£000




Cash at bank and in hand

21,530

15,470


----

----

Cash and cash equivalents

21,530

15,470


▬▬▬▬

▬▬▬▬

 

In addition to the above £335,000 (2016: £3,280,000) was held on deposit as security in respect of outstanding performance bonds.



 

 

7.

   Contingent liabilities



Approximate maximum liability

at 30 September


2017

2016


£000

£000

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

-

3,000


----

----

Performance bond related to a UAE based contract, expected to reduce to approximately £1.2 million in 2018 and to be released in full in 2020

 

2,400

 

2,400


----

----

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

-

130


----

----

Performance bond related to a UAE based contract, expected to be released in full in 2018

105

-


▬▬▬▬

▬▬▬▬

 

8.

Post balance sheet events


The performance bond referred to in note 7 and expected to be released in 2018 was released towards the end of December 2017.  In February 2018, the company entered into a new performance bond of similar value to that released in December 2017.  It is expected that this will be released in full later in 2018.  There are no other post balance sheet events to report.

 

9.

Annual general meeting


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 2017 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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