Half Yearly Report - Replacement

RNS Number : 4514N
Palace Capital PLC
28 September 2012
 



GENERAL TEXT AMENDMENT

 

The following amendment has been made to the 'Interim results for the six months ended 31 July 2012' announcement released on 28/09/2012 at 10:56 under RNS No 4410N.

 

In the 5th paragraph of the paragraph entitled "Basis of Preparation", line 6, the reference to "the directors" should be "Stanley Davis and Neil Sinclair".

 

All other details remain unchanged.

 

The full amended text is shown below.

 

 

Palace Capital plc ("the Company")

 

 

Interim results for the six months ended 31 July 2012

 

 

CHAIRMAN'S STATEMENT

 

I can report that for the half year ended 31 July 2012 your company made a loss before tax of £65,086 (2011 - £23,852). The company will not be declaring a dividend.

 

We have spent some considerable time actively managing the nine properties within the Hockenhull Estates Ltd portfolio, acquired last October. We have successfully renewed the lease at an increased rental with Countrywide Estate Agents at 45 High Street, Nantwich, Cheshire. We worked with the Administrator of our former tenant, Connexions Ltd, at 23-25, Market Street, Crewe, Cheshire, resulting in the lease being assigned to Cheshire East Council who has become our direct tenant.

 

The half year was also spent seeking a significant and suitable acquisition in order to grow the Company. We are evaluating a number of opportunities but will not pursue those which do not provide the required return that we can recommend to shareholders. However we are leaving no stone unturned in trying to secure an appropriate transaction.

 

 The Company is focusing on the UK secondary property market mainly outside of London in order to find value. We are seeking to acquire further property companies that own secondary commercial investments, commercial property portfolios and property backed businesses in order to enhance shareholder value. The secondary property market continues to be in a state of flux but we believe that the uncertainties the market is facing will produce a number of opportunities of which we believe we can take advantage. We look to the future with confidence.

 

 

 

 

Stanley Davis

Chairman

28 September 2012

 

 

 

Enquiries: 

 

Palace Capital plc

Tel. +44 (0)20 7722 7603

Neil Sinclair, Managing Director


Allenby Capital Limited

Tel. +44 (0) 20 3328 5656

Nick Naylor, Chief Executive


Mark Connelly, Corporate Finance



Palace Capital plc

CONSOLIDATED INCOME STATEMENT

for the six months ended 31 July 2012

 

 

 

 

Notes


6 months ended

31 July

2012

(unaudited)

    

               £

6 months

ended

31 July

2011

(unaudited)

 

£

12 months

ended

31 January

2012

(audited)

 

£







Revenue



104,660

-

55,400







Cost of sales



4,204

-

-




                  

                  

                  

GROSS PROFIT



100,456

-

55,400







Administrative expenses



(108,452)

(20,927)

(141,647)

Costs of acquisition



-

-

(53,033)

Gains on revaluation of investment property portfolio


-

-

197,500




                  

                  

                  

PROFIT/(LOSS) BEFORE INTEREST



(7,996)

(20,927)

58,220







Other interest receivable



33

-

27

Finance costs



(57,123)

(2,925)

(44,863)




                  

                  

                  

PROFIT/(LOSS) BEFORE TAX



(65,086)

(23,852)

13,384







Taxation



-

-

573




                  

                  

                  

PROFIT/(LOSS) FOR THE PERIOD



(65,086)

(23,852)

13,957




                  

                  

                  













PROFIT/(LOSS) PER ORDINARY SHARE






Basic

2


(0.21p)

(0.33p)

0.09p

Diluted

2


(0.21p)

(0.33p)

0.05p




                  

                  

                  









 

 

 


Palace Capital plc

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 31 July 2012

 

           


 






 


31 July

2012

(unaudited)

£

31 July

2011

(unaudited)

£

31 January

2012

(audited)

£













NON-CURRENT ASSETS






Goodwill



5,910

-

5,910

Investment properties



2,015,000

-

2,015,000

Tangible fixed assets



559

-

805




              

              

              




2,021,469

-

2,021,715







CURRENT ASSETS






Trade and other receivables



19,160

5,341

46,848

Cash and cash equivalents



96,913

22,698

145,378




              

              

              

TOTAL CURRENT ASSETS



116,073

28,039

192,226







CURRENT LIABILITIES






Redeemable preference shares



(65,000)

(65,000)

(65,000)

Trade and other payables



(103,312)

(111,150)

(122,079)




              

              

              

TOTAL CURRENT LIABILITIES



(168,312)

(176,150)

(187,079)







NET CURRENT ASSETS/(LIABILITIES)

(52,239)

(148,111)

5,147







NON-CURRENT LIABILITIES






Borrowings



(1,759,939)

-

(1,757,485)




              

              

              

NET ASSETS/(LIABILITIES)



209,291

(148,111)

269,377




              

              

              







EQUITY






Share capital



315,938

72,160

315,938

Share premium account



110,395

5,761

110,395

Convertible loan notes - equity



27,934

-

27,934

Share based payments



8,333

-

3,333

Profit and loss account



(253,309)

(226,032)

(188,223)




              

              

              

EQUITY - attributable to the owners of the parent

209,291

(148,111)

269,377




              

              

              












































 


Palace Capital plc

CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 31 July 2012

 

 


Notes

6 months ended

 31 July

2012

(unaudited)

£

6 months

ended

31 July

2011

(unaudited)

£

12 months

ended

31 January

2012

(audited)

£






OPERATING ACTIVITIES





Net cash out flow from operations

3

(6,470)

(4,450)

(145,081)



              

              

              

NET CASH OUTFLOW FROM OPERATING ACTIVITIES


(6,470)

(4,450)

(145,081)



              

              

              






Interest received


33

-

27

Interest paid


(42,028)

-

(17,361)



              

              

              

NET CASH OUTFLOW FROM INVESTING ACTIVITIES


(41,995)

(4,450)

(17,334)






TAXATION





Corporation tax paid


-

-

(28,148)






INVESTING ACTIVITIES





Payments to acquire subsidiary undertaking


-

-

(1,783,395)

Payments to acquire fixed assets


-

-

(805)



              

              

              

NET CASH INFLOW FROM INVESTING ACTIVITIES


-

-

(1,784,200)



              

              

              






FINANCING ACTIVTIES





Loan provided by a director


-

20,000

577,500

Bank loan


-

-

1,200,000

Proceeds from issue of loan notes


-

-

348,412



              

              

              

Net cash INflow from financing activities


-

20,000

2,125,912



              

              

              






NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS


(48,465)

15,550

138,230






Cash and cash equivalents at beginning of period


145,378

7,148

7,148








              

              

              

CASH AND CASH EQUIVALENTS AT END OF PERIOD


 

96,913

 

22,698

 

145,378



              

              

              






 



 

Palace Capital plc

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 31 July 2012

 

 


 

Share Capital

£

 

Share Premium

£

 

Convertible loan equity reserve

£

 

Share based payment reserve

£

Profit and loss account

£

Total equity

£








As at 31 January 2011

72,160

5,761

-

-

(202,180)

(124,259)

Loss for the period

-

-

-

-

(23,852)

(23,852)


              

              

              

              

              

              

As at 31 July 2011

72,160

5,761

-

-

(226,032)

(148,111)

Issue of new shares

243,778

104,634

-

-

-

348,412

Share based payments

-

-

-

3,333

-

3,333

Issue of convertible loans

-

-

27,934

-

-

27,934

Profit for the period

-

-

-

-

37,809

37,809


              

              

              

              

              

              

As at 31 January 2012

315,938

110,395

27,934

3,333

(188,223)

269,377

Share based payments

-

-

-

5,000

-

5,000

Loss for the period

-

-

-

-

(65,086)

(65,086)


              

              

              

              

              

              








As at 31 July 2012

315,938

110,395

27,934

8,333

(253,309)

209,291


              

              

              

              

              

              









1              BASIS OF PREPARATION

The financial information contained in this interim report does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The figures for the period ended 31 January 2012 have been extracted from the audited statutory accounts. The interim results, which have not been audited or reviewed by the company's auditors, have been prepared in accordance with applicable International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).  These standards are also collectively referred to as "IFRS".

The accounting policies and methods of computations used are consistent with those used in the Group Annual Report for the year ended 31 January 2012 and are expected to be used in the Group Annual Report for the year ending 31 January 2013.

Statutory accounts for the year ended 31 January 2012 were prepared and filed with the Registrar of Companies and received an unqualified audit report.

 

The interim report was approved by the Board of Directors on 28 September 2012.

 

As at 31 July 2012, the Group had net current liabilities of £52,239.  Included within current liabilities are redeemable preference shares of £65,000 and loan notes of £60,000.  These amounts are due to directors of the company Stanley Davis and Neil Sinclair or entities controlled by them and Andrew Perloff, who have given undertakings to the group that these amounts will only be payable when there are adequate cash resources within the group so that the group can continue to meet its liabilities as they fall due for the foreseeable future.  In addition, Stanley Davis and Neil Sinclair will continue to support the company and if and when necessary will provide funds on an interest free basis.  With these undertakings, and after considering the group's cash flow forecasts, the directors have prepared these interim results on the going concern basis.

 

Copies of this statement are available to the public for collection at the company's Registered Office at 41 Chalton Street, London, NW1 1JD and on the Company's website, www.palacecapitalplc.com.

 

 

 

2              PROFIT/(LOSS) per share

 

The profit/(loss) per share for the period is calculated based upon the following information:

 



 

6 months ended

 31 July

2012

(unaudited)

6 months ended

31 July

2011

(unaudited)

12 months

ended

31 January

2012

(audited)


Weighted average number of shares for basic profit/(loss) per share

31,593,733

7,215,956

15,297,356



                  

                  

                  


Weighted average number of shares for diluted profit/(loss) per share

 

63,086,439

 

7,215,956

 

25,737,404



                  

                  

                  












Profit/(Loss) for the period

(65,086)

(23,852)

13,384



                  

                  

                  

 

3             

Reconciliation of operating LOSS to net cash flow from operating activities

6 months ended

 31 July

2012

(unaudited)

£

6 months ended

31 July

2011

(unaudited)

£

12 months

ended

31 January

2012

(audited)

£







Profit/(Loss) for the period

(65,086)

(23,852)

13,384







Adjustments for:





Finance income

(33)

-

(27)


Finance costs

57,123

2,925

44,863


Gain on revaluation of investment property portfolio

-

-

(197,500)







Share based payments

5,000

-

3,333



             

             

             


Operating cash flow before movements in working capital

(2,996)

(20,927)

(135,947)







Depreciation

246

-

-


(Increase)/decrease in debtors

27,688

3,089

(15,493)


Increase/(decrease) in creditors

(31,408)

13,388

(6,560)



             

             

             


Net cash flow from operating activities

(6,470)

(4,450)

(158,000)



             

             

             

 








 


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