Half-year Report

RNS Number : 8242F

Pires Investments PLC

17 July 2019

 

Pires Investments PLC

("Pires" or the "Company")

Unaudited interim results for the six months to 30 April 2019

Highlights

·      Net asset value at the period end was £2.36 million, representing an increase of 148% compared to the figure at 31 October 2018 of £0.95 million

·      Market capitalisation as at the period end represented a 28% discount to net asset value

·      Net asset value principally comprises cash and shares in Eco (Atlantic) Oil & Gas Limited ("ECO")

·      Cash at period end was £0.93 million, increasing to the current level of £1.35 million

·      Profit of £659,048 made during period

Chairman's Statement

The Company is pleased to report further strong progress for the period under review, with a profit before taxation of £659,048 (six months ended 30 April 2018: £122,556) as a result of an increase in the value of our investment portfolio, net of disposals, and a reduction in our operating expenses.

As at the period end, our net asset value was £2,358,120 (31 October 2018: £949,617), which represented an increase of some 148% on the position at the year end and principally comprises cash and investments. Net assets per share increased from £0.028p to £0.035p over the same period.

The principal investment in the portfolio remains ECO, together with a holding in Portage Biotech resulting from a transaction by one of our investee companies, SalvaRx plc, referred to in our 2018 full year results.

During the period, we disposed of part of our holding in ECO against a background of a further significant rise in its share price. Since the period end, the ECO share price has fallen back modestly. We continue to actively manage our investment portfolio with a view to locking in gains progressively.  As a result of this strategy and a successful placing carried out by the Company earlier in the year, our cash balance has now increased to a current level of around £1.35 million.

We continue to review potential new opportunities and are confident that we will continue to make further progress in the months ahead.

Peter Redmond

Chairman

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Enquiries:

Pires Investments plc Peter Redmond, Chairman	Tel: [phone]
Nominated Adviser Cairn Financial Advisers LLP Liam Murray / Tony Rawlinson	Tel: [phone]
Broker Peterhouse Capital Limited Duncan Vasey / Lucy Williams	Tel: [phone] Tel: [phone]

UNAUDITED STATEMENT OF COMPREHENSIVE INCOME

for the six months ended 30 April 2019

				Unaudited		Unaudited		Audited
				6 months		6 months		Year
				ended		ended		Ended
				30-Apr		30-Apr		31-Oct
				2019		2018		2018
Continuing activities				£		£		£
	Notes
Revenue
Investment income				-		-		-
Other income				291		6		11
Total revenue				291		6		11
Gains on investments held at fair value through profit or loss				764,994		271,165		574,987
Operating expenses				(106,237)		(148,615)		(252,929)
Operating profit from continuing activities				659,048		122,556		322,069
Profit before taxation from continuing activities				659,048		122,556		322,069
Tax				-		-		-
Profit for the period from continuing activities				659,048		122,556		322,069
Profit for the period and total comprehensive income attributable to equity holders of the Company				659,048		122,556		322,069
Basic profit per share			3
Equity holders
Basic and diluted				1.46p		0.37p		0.95p

 

UNAUDITED STATEMENT OF FINANCIAL POSITION

As at 30 April 2019

		Unaudited		Unaudited		Audited
		As at		As at		As at
		30-Apr		30-Apr		31-Oct
		2019		2018		2018
		£		£		£
	Notes
NON-CURRENT ASSETS
Property, plant and equipment		-		-		-
Investment in subsidiaries		1		1		1
TOTAL NON CURRENT ASSETS		1		1		1
CURRENT ASSETS
Investments		1,477,056		799,101		1,029,526
Trade and other receivables		15,876		7,400		11,357
Cash and cash equivalents		932,864		113,587		48,028
TOTAL CURRENT ASSETS		2,425,796		920,088		1,088,911
TOTAL ASSETS		2,425,797		920,089		1,088,912
EQUITY
Called up share capital		11,996,156		11,914,727		11,914,727
Share premium account		4,249,081		3,581,055		3,581,055
Retained earnings		(14,051,784)		(14,910,345)		(14,710,832)
Capital redemption reserve		164,667		164,667		164,667
TOTAL EQUITY	4	2,358,120		750,104		949,617
LIABILITIES
CURRENT LIABILITIES
Trade and other payables		67,677		169,985		139,295
TOTAL LIABILITIES AND CURRENT LIABILITIES		67,677		169,985		139,295
TOTAL EQUITY AND LIABILITIES		2,425,797		920,089		1,088,912

UNAUDITED CASH FLOW STATEMENT

For the six months ended 30 April 2019

		Unaudited		Unaudited		Audited
		6 months ended		6 months ended		Year ended ended
		30-Apr		30-Apr		31-Oct
		2019		2018		2018
		£		£		£
Cash flows from operating activities		659,048		122,556		322,069
Depreciation		-		-		-
Realised (gain) on disposal of investments		(120,060)		(94,930)		(82,192)
Fair value movement in investments		(644,934)		(176,235)		(492,795)
Finance income		(291)		(6)		(11)
(Increase)/decrease in receivables		(4,519)		2,476		(1,482)
Increase/(decrease) in payables		(71,618)		3,085		(27,596)
Net cash absorbed by operating activities		(182,374)		(143,054)		(282,007)
Cash flows from investing activities
Payments to acquire investments		-		(176,000)		(176,000)
Proceeds of sale of investments		317,464		191,493		264,882
Finance income received		291		6		11
Net cash from investing activities		317,755		15,499		88,893
Cash flows from financing activities
Proceeds from issue of equity		749,455		-		-
Finance costs paid		-		-		-
Net cash from financing activities		749,455		-		-
Net increase/(decrease) in cash and cash equivalents during the period		884,836		(127,555)		(193,114)
Cash and cash equivalents at beginning of the period		48,028		241,142		241,142
Cash and cash equivalents at end of the period		932,864		113,587		48,028

Notes to the Unaudited Interim Report

1. GENERAL INFORMATION

Pires Investments Plc (the "Company") is a company domiciled in England whose registered office address is c/o Cooley Services Limited, Dashwood, 69 Old Broad Street, London EC2M 1QS. The condensed interim financial statements of the Company for the six months ended 30 April 2019 is that of the Company only.

The condensed consolidated interim financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.

The financial information for the year ended 31 October 2018 has been extracted from the statutory accounts for that period which were prepared in accordance with International Financial Reporting Standards ("IFRS"). The auditors' report on the statutory accounts was unqualified. A copy of those financial statements has been filed with the Registrar of Companies.

The financial information for the six months ended 30 April 2018 and 2019 was also prepared in accordance with IFRS.

The condensed consolidated interim financial statements do not include all of the information required for full annual financial statements. 

The condensed interim financial statements were authorised for issue on 16 July 2019.

2. BASIS OF ACCOUNTING

The financial statements are unaudited and have been prepared on the historical cost basis in accordance with International Financial Reporting Standards as adopted by the EU ("IFRS") using the same accounting policies and methods of computation as were used in the annual financial statements for the year ended 31 October 2018. As permitted, the interim report has been prepared in accordance with the AIM rules for Companies and is not compliant in all respects with IAS 34 Interim Financial Statements. The condensed consolidated interim financial statements do not include all the information required for full annual financial statements and hence cannot be construed as in full compliance with IFRS.

3. PROFIT / LOSS PER SHARE

The calculation of the basic loss per share is based on the following data:

	Unaudited		Unaudited	Audited
	6 months		6 months	Year
	ended		ended	ended
	30-Apr		30-Apr	31-Oct
	2019		2018	2018
	£		£	£
Profit on continuing activities after tax	659,048		122,556	322,069
Basic and fully diluted
Basic and fully diluted earnings per share have been computed based on the following data:
		Number of shares
Weighted average number of ordinary shares for the period	45,238,999		33,521,353	33,521,353
Basic earnings per share from continuing activities (p)	1.46		0.37	0.95
There were no dilutive instruments that would give rise to diluted earnings per share

4. STATEMENT OF CHANGES IN EQUITY

	Share Capital		Share Premium		Capital Redemption Reserve		Retained Earnings		Total
	£		£		£		£		£
At 1 November 2017	11,914,727		3,581,055		164,667		(15,032,901)		627,548
Profit for the 6 months ended 30 April 2018							122,556		122,556
At 30 April 2018	11,914,727		3,581,055		164,667		(14,910,345)		750,104
Profit for the 6 months ended 31 October 2018							199,513		199,513
At 31 October 2018	11,914,727		3,581,055		164,667		(14,710,832)		949,617
Issue of Share Capital	81,429		668,026						749,455
Profit for the 6 months ended 30 April 2019							659,048		659,048
At 30 April 2019	11,996,156		4,249,081		164,667		(14,051,784)		2,358,120

5.  DISTRIBUTION OF INTERIM REPORT

Copies of the Interim Report for the six months ended 30 April 2019 are available on the Company's website, www.piresinvestments.com.

 

END

 

 

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