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AssetCo PLC (ASTO)

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Wednesday 27 June, 2018

AssetCo PLC

Half-year Report - period ended 31 March 2018

RNS Number : 6768S
AssetCo PLC
27 June 2018
 

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

 

Wednesday, 27 June 2018

Immediate Release

 

AssetCo plc

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

("AssetCo" or the "Company")

 

2018 Half-year Report

for the six months ended 31 March 2018

 

Chairman's statement

Introduction

We are pleased to report that our trading results for the six month period ended 31 March 2018 have been satisfactory and met with our expectations, whilst the litigation against our former auditors Grant Thornton is ongoing.

 

Trading Results

The outsourced Fire Services contractual business in Abu Dhabi, UAE for the provision of an outsourced fire service to the Abu Dhabi government (the "Client") continues to be performed to the satisfaction of the Client.  The contract is ongoing and remains on similar terms and conditions that have been set since November 2016, which involves a new contract being re-confirmed every five or six months in arrears.

 

The operating profit for the period under review amounted to £0.5m (HY2017; £1.7m), which reflects an adverse impact from exchange rate movements of £0.7m compared to HY2017 and a reduction in profitability of £0.5m, arising principally from a reduction in training and logistics revenues.

 

Our Statement of financial position at the period end shows a strong balance sheet with cash balances of £19.6m (2017; £20.7m).

 

Litigation

As previously reported, Grant Thornton were fined £3.5m by the Financial Reporting Council in connection with their respective audits of Assetco plc in 2009 and 2010.  We are pursuing a claim against Grant Thornton, as a consequence of their professional negligence, which with interest amounts to approximately £40m; this case is in the process of being heard in the High Court with a decision expected later in this year.

 

Outlook

Trading continues to be satisfactory and we will continue to keep shareholders informed on the progress of our Middle East business and the progress and developments in relation to the action against Grant Thornton.

 

Tudor Davies

Chairman

27 June 2018

 

 

 

AssetCo plc

Income statement

for the six months ended 31 March 2018

 

 

 

Six months ended

Year ended

 

Note

31 March

2018

31 March

2017

30 September

2017

 

 

£'000

£'000

£'000

 

 

 

 

 

Revenue

 

11,151

13,274

24,881

Cost of sales

 

(8,215)

(9,333)

(17,738)

Gross profit

 

2,936

3,941

7,143

Administrative expenses

 

(2,440)

(2,192)

(4,891)

Operating profit

 

496

1,749

2,252

Finance income

 

3

4

8

Finance costs

 

(35)

(68)

(87)

Profit before taxation

 

464

1,685

2,173

Income tax expense

 

-

-

-

Profit for the period

 

464

1,685

2,173

 

 

 

 

 

 

 

 

 

 

Earnings per share (EPS):

3

 

 

 

Basic - pence

 

3.80

13.80

17.80

Diluted - pence

 

3.80

13.80

17.80

 

 

 

AssetCo plc

Statement of comprehensive income

for the six months ended 31 March 2018

 

 

 

Six months ended

Year ended

 

 

31 March

2018

31 March

2017

30 September

2017

 

 

£'000

£'000

£'000

 

 

 

 

 

Recognised profit for the period

 

464

1,685

2,173

 

 

 

 

 

Other comprehensive (expense) / income:

 

 

 

 

Exchange differences on translating foreign operations

 

(767)

658

(438)

Other comprehensive (expense) / income net of tax

 

(767)

658

(438)

 

 

 

 

 

Total comprehensive (expense) / income for the period

 

(303)

2,343

1,735

 

 

AssetCo plc

Statement of financial position

as at 31 March 2018

 

 

 

At 31 March

At 30 September

 

 

2018

2017

2017

 

Note

£'000

£'000

£'000

Assets

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

 

-

-

-

Cash held in respect of a bond

 

-

251

233

Total non-current assets

 

-

251

233

 

 

 

 

 

Current assets

 

 

 

 

Inventories

 

-

-

-

Trade and other receivables

4

12,438

12,187

10,685

Cash and cash equivalents

5

19,554

20,708

21,530

Cash held in respect of bonds

 

320

13

102

Total current assets

 

32,312

32,908

32,317

 

 

 

 

 

Total assets

 

32,312

33,159

32,550

 

 

 

 

 

Shareholders' equity

 

 

 

 

Share capital

 

25,474

25,474

25,474

Share premium

 

64,941

64,941

64,941

Profit and loss account

 

(62,927)

(62,016)

(62,624)

Total equity

 

27,488

28,399

27,791

 

 

 

 

 

Liabilities

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

6

4,824

4,760

4,759

Total current liabilities

 

4,824

4,760

4,759

Total liabilities

 

4,824

4,760

4,759

Total equity and liabilities

 

32,312

33,159

32,550

 

 

AssetCo plc

Statement of changes in equity

for the six months ended 31 March 2018

 

 

Share

Capital

Share premium

Profit and loss reserve

Total

equity

 

£'000

£'000

£'000

£'000

 

 

 

 

 

Balance at 30 September 2016

25,474

64,941

(64,359)

26,056

Profit for the period

-

-

1,685

1,685

Other comprehensive income:

 

 

 

 

Exchange differences on translation

-

-

658

658

Total comprehensive income for the period

-

-

2,343

2,343

 

 

 

 

 

Balance at 31 March 2017

25,474

64,941

(62,016)

28,399

 

 

 

 

 

Profit for the period

-

-

488

488

Other comprehensive expense:

 

 

 

 

Exchange differences on translation

-

-

(1,096)

(1,096)

Total comprehensive income for the period

-

-

(608)

(608)

 

 

 

 

 

Balance at 30 September 2017

25,474

64,941

(62,624)

27,791

 

 

 

 

 

Profit for the period

-

-

464

464

Other comprehensive income:

Exchange differences on translation

 

-

 

-

 

(767)

 

(767)

Total comprehensive income for the period

-

-

(303)

(303)

 

 

 

 

 

Balance as at 31 March 2018

25,474

64,941

(62,927)

27,488

 

 

AssetCo plc

Statement of cash flows

for the six months ended 31 March 2018

 

 

Six months ended

Year ended

 

31 March

2018

31 March

2017

30 September

2017

 

Note

£'000

£'000

£'000

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

Cash (used by) / generated from operations

7

(1,602)

1,811

3,094

Cash deposited in respect of performance bonds

 

(97)

-

(104)

Cash released in respect of performance bonds

 

102

3,232

3,246

Finance costs

 

(35)

(68)

(87)

Net cash (used by) / generated from operating activities

 

(1,632)

4,975

6,149

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Finance income

 

3

4

8

Net cash generated from investing activities

 

3

4

8

 

 

 

 

 

Net change in cash and cash equivalents

 

(1,629)

4,979

6,157

Cash and cash equivalents at the beginning of the period

 

21,530

15,470

15,470

Exchange differences on translation

 

(347)

259

(97)

Cash and cash equivalents at the end of the period

 

19,554

20,708

21,530

 

 

 

 

2.

Basis of preparation

 

The financial information in the Half-year Report has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively Adopted IFRSs). The principal accounting policies used in preparing the Half-year Report are those the Group expects to apply in its financial statements for the year ending 30 September 2018 and are unchanged from those disclosed in the Annual Report and Financial Statements for the year ended 30 September 2017.

The financial information for the six months ended 31 March 2018 and the six months ended 31 March 2017 is unaudited and does not constitute the Company's statutory financial statements for those periods.  The comparative financial information for the full year ended 30 September 2017 has, however, been derived from the audited statutory financial statements for that period.  A copy of those statutory financial statements has been delivered to the Registrar of Companies.

While the financial figures included in this Half-year Report have been computed in accordance with IFRSs applicable to interim periods, this Half-year Report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS 34.

The financial statements have been presented in sterling to the nearest thousand pounds (£'000) except where otherwise indicated.

 

3.

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.

 

Six months ended

Year ended

 

31 March

2018

31 March

2017

30 September

2017

 

£'000

£'000

 

 

Profit for the year

464

1,685

2,173

 

Weighted average number of ordinary shares in issue

12,211,163

12,211,163

12,211,163

 

Basic earnings per share (EPS) - pence

3.80

13.80

17.80

 

 

 

 

 

There are no dilutive potential ordinary shares and, therefore, the calculation of diluted earnings per share is the same as for basic earnings per share.

 

4.

Trade and other receivables

 

 

 

31 March

2018

31 March

2017

30 September

2017

 

£'000

£'000

£'000

Trade receivables

103

10,906

-

Other receivables

325

221

190

Prepayments and accrued income

12,010

1,060

10,495

 

12,438

12,187

10,685

 

5.

Cash and cash equivalents

 

 

 

31 March

30 September

 

2018

2017

2017

 

£'000

£'000

£'000

Cash at bank and in hand

19,554

20,708

21,530

Cash and cash equivalents

19,554

20,708

21,530

 

 

 

 

UK sterling

4,534

8,343

6,598

UAE Dirhams

15,020

12,365

14,932

 

19,554

20,708

21,530

 

In addition to the above UAE Dirhams amounting to £320,000 (31 March 2017: £264,000 and 30 September 2017: £335,000) were held on deposit as security in respect of outstanding performance bonds - see note 8 Contingent liabilities.

6.

Trade and other payables

 

31 March

2017

31 March

2017

30 September

2017

 

£'000

£'000

£'000

Trade payables

690

1,077

878

 

Other payables

1,439

1,196

1,183

Other taxation and social security

2

3

3

Accruals and deferred income

2,693

2,484

2,695

 

4,824

4,760

4,759

 

7.

Reconciliation of profit before taxation to net cash (used by) / generated from operations

 

 

Six months ended

Year ended

 

 

31 March

30 September

 

 

2018

2017

2017

 

£'000

£'000

£'000

 

 

 

 

Profit for the period before taxation

464

1,685

2,173

Finance costs

35

68

87

Finance income

(3)

(4)

(8)

(Increase) / decrease in receivables

(2,327)

855

1,191

Increase / (decrease) in payables

229

(793)

(349)

Cash (used by) / generated from operations

(1,602)

1,811

3,094

 

8.

Contingent liabilities

 

 

Approximate maximum potential liability

 

 

31 March

30 September

 

 

2018

2017

2017

 

Performance bond related to a UAE based contract, expected to reduce to approximately £1.1m in 2018 and to be released in full in 2020

 

 

2,225

 

 

2,500

 

 

2,400

 

 

 

 

 

 

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

 

-

 

140

 

-

 

 

 

 

 

 

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

 

-

 

-

 

105

 

 

 

 

 

 

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

 

100

 

-

 

-

 

9.

Electronic communications

 

The Company is not proposing to bulk print and distribute hard copies of this Half-year Report unless specifically requested by individual shareholders; it can be downloaded from the Company's website at www.assetco.com .

News updates, regulatory news, & financial statements can be viewed and downloaded from the Company's website, www.assetco.com.  Copies can also be requested, in writing to, The Company Secretary, AssetCo plc, Singleton Court Business Park, Wonastow Road, Monmouth, Monmouthshire NP25 5JA.

 

 

Enquiries:

AssetCo plc

Tudor Davies, Chairman

Tel: +44 (0) 7785 703523

or    +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

IR and media relations

Fiona Tooley

Mobile: +44 (0) 7785 703523

Email: [email protected]

 

 

 


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