RNS Number:3896L
Acquisitor PLC
21 May 2003
21 MAY 2003
ACQUISITOR PLC ("ACQ")
("ACQUISITOR" or "the Company")
(Ticker: Reuters ACQ.L or Bloomberg: ACQ LN)
ACQUISITOR ANNOUNCES FIRST SET OF INTERIM RESULTS SINCE CAPITAL REORGANISATION
The Board of Acquisitor Plc is pleased to announce the Interim Results for the
six months to 31 March 2003.
KEY POINTS:
* Interim results showing net profit #87,790
* Earnings Per Share 3.1p per share
* Net Asset Value #1,136,515 (40p per share)
Commenting on the results Chairman John Radziwill said: "I am pleased to report
the Interim Results for Acquisitor Plc for the six months ended 31 March 2003".
"Your Board's opinion that management can successfully apply their proven '
Private Equity in the Public Market' acquisition techniques in the UK and
continental European markets had much to do with our decision to reorganise the
Company in October 2002.
The Company's initial experiences bear this out and we are now seeking to expand
and grow operations in the UK. In view of a number of acquisition opportunities
that the Directors believe are available, the Company will be seeking to raise
additional funds in order to capitalise on these opportunities".
The above summary should be read in conjunction with the full text of the
following announcement.
Enquiries
Maxine Barnes maxine@barnesandwalters.com
Barnes and Walters Ltd 020 7430 1600
Further information on Acquisitor Plc can be found at: www.acquisitor.com
ACQUISITOR PLC
("Acquisitor" or "the Company")
(Ticker: Reuters ACQ.L or Bloomberg: ACQ LN)
INTERIM RESULTS FOR THE PERIOD ENDED 31 MARCH 2003
Chairman's Statement
Introduction
As reported in the Company's Report and Financial Statements for the year ended
30 September 2002, Acquisitor completed the transfer of substantially all its
assets to Acquisitor Holdings (Bermuda) Ltd on 7 October 2002. As a result of
this restructuring, the Company was left with net cash (cash less liabilities)
of #1.05 million (36.7p per share). At that time the Board redirected the
Company's acquisition policy to target businesses located in the UK and
continental Europe.
Financial Highlights
For the six-month period ending 31 March 2003, the Company reported net profits
of #87,790 or 3.1p per share. I have not made my usual comparison with last
year's results due to the reorganisation which renders any such comparison
meaningless.
The Company benefited from an over-provision of corporate taxes in the year to
30 September 2002 resulting in a write back to the profit and loss account of
#120,281 in the period.
Net assets at 31 March 2003 were #1,136,515 (39.8p per share).
Normally I would not discuss unrealised gains or losses as the Company's
holdings have a tendency to fluctuate wildly and irrationally in the public
market place, irrespective of underlying value. However, given that the
transaction has been publicly announced, I believe that reference to our only
current holding in IndigoVision Group plc ("Indigo") should help shareholders to
better understand the Company's acquisition methodology.
On 15 November 2002, Acquisitor announced it acquired 3,740,606 ordinary shares
in Indigo, representing 5.5% of that company's issued share capital. On 19
December 2002, Acquisitor announced that it was seeking further discussions
regarding a possible offer for IndigoVision. However the IndigoVision board
announced that day that discussions with Acquisitor had been terminated.
Your Company's Board has worked diligently to close the value gap between the
public market value and Indigo's Private Market Value. I am, therefore, happy to
report that on 11 December 2002, Indigo announced its intention to seek approval
of shareholders and then of the Court, for a return of at least #11 million (17p
per share) of cash to shareholders.
As a result, Acquisitor will show a healthy gain on its holding without having
disposed of one share.
I view this result as a 'partial' success but will not be happy until I can
report that we have finished the job and completely closed the value gap.
Unusually therefore, I will make reference to our net asset value on a
mark-to-market basis which at 31 March 2003 stood at #1,255,441 (44p per share).
Acquisitions and Disposals
During the period under review, one holding in Protagona plc was bought and
disposed of due to a takeover by an industry acquirer. Acquisitor realised a
profit of #90,975 on this transaction.
Outlook
Your Board's decision to reorganise the Company in October 2002 had much to do
with our opinion that management can successfully apply their proven Private
Equity in the Public Market techniques from the US to the UK and continental
European markets.
The Company's initial experiences bear this out and we are now seeking to expand
and grow operations in the UK. In view of a number of acquisition opportunities
that the Directors believe are available, the Company will be seeking to raise
additional funds in order to capitalise on these opportunities.
As always, I wish to thank our Board for their contribution and our shareholders
for their continuing support.
John Radziwill
Chairman
ACQUISITOR PLC
("Acquisitor" or "the Company")
(Ticker: Reuters ACQ.L or Bloomberg: ACQ LN)
Profit and Loss Account
For the six months ended 31 March 2003
6 months 12 months 6 months
to 31.3.03 to 30.09.02 to 31.03.02
(reviewed) (audited) (reviewed)
# # #
Administrative Expenses:
Exceptional items 0 (416,492) 0
Other (142,223) (917,764) (481,629)
Operating Loss (142,223) (1,334,256) (481,629)
Profit on disposal of investments 90,975 2,315,523 784,613
Other interest receivable and similar income 19,835 300,706 110,579
Interest payable and similar charges (1,078) (69,405) (145,899)
PROFIT on ordinary activities before tax (32,491) 1,212,568 267,664
Tax on ordinary activities 120,281 (464,987) (80,299)
PROFIT on ordinary activities after tax 87,790 747,581 187,365
PROFIT transferred to reserves 87,790 747,581 187,365
Earnings per share 3.1p 26.2p 6.6p
Shares outstanding 2,857,145 2,857,145 2,857,145
ACQUISITOR PLC
("Acquisitor" or "the Company")
(Ticker: Reuters ACQ.L or Bloomberg: ACQ LN)
Balance Sheet
As at 31 March 2003
31.03.03 30.09.02 31.03.02
(reviewed) (audited) (reviewed)
# # #
Fixed Assets
Holdings at cost 600,785 8,644,357 8,240,103
Current assets
Other debtors 0 0 3,387
Prepayments and accrued income 11,568 15,199 10,148
Cash at bank and in hand 598,906 7,569,634 6,786,339
610,474 7,584,833 6,799,874
Creditors: Falling due within one year
Bank overdraft 6,286 2,782,091 2,903,779
Trade creditors 1,720 211,402 73,733
Corporation tax 0 488,718 286,043
Accruals 66,738 791,623 381,282
74,744 4,273,834 3,644,837
Net current assets 535,730 3,310,999 3,155,037
Net assets 1,136,515 11,955,356 11,395,140
Capital and Reserves
Ordinary share capital 57,143 57,143 2,857,145
Share premium account 0 0 6,665,818
57,143 57,143 9,522,963
Profit & loss account 1,079,372 11,898,213 1,872,177
1,136,515 11,955,356 11,395,140
Net asset value per share # 0.40 # 4.18 # 3.99
ACQUISITOR PLC
("Acquisitor" or "the Company")
(Ticker: Reuters ACQ.L or Bloomberg: ACQ LN)
Cash flow statement
For the six months ended 31 March 2003
6 months 12 months 6 months
Note to 31.03.03 to 30.09.02 to 31.03.02
(reviewed) (audited) (reviewed)
# # #
Cash outflow from operating activities 2 (1,073,159) (816,605) (379,203)
Returns on investments and servicing of finance
Interest received 20,391 217,482 110,579
Interest paid (1,078) (69,405) (34,484)
19,313 148,077 76,095
Taxation
Corporation tax paid (368,437) (182,013) 0
(368,437) (182,013) 0
Capital expenditure and financial investment
Purchase of investments (792,698) (7,388,357) (4,505,419)
Proceeds on disposal of investments 282,888 10,617,626 6,476,911
(509,810) 3,229,269 1,971,492
Cash inflow/(outflow) before use of liquid
resources and financing (1,932,093) 2,378,728 1,668,384
Financing
Capital reduction (2,262,274) 0 0
(2,262,274) 0 0
Increase/(decrease) in cash during the period (4,194,367) 2,378,728 1,668,384
ACQUISITOR PLC
("Acquisitor" or "the Company")
(Ticker: Reuters ACQ.L or Bloomberg: ACQ LN)
Notes to the Accounts
1. Basis of Preparation
The accounting policies used in the preparation of this Interim Report are the
same as those used in the statutory accounts for the year to 30 September 2002.
The adoption of Financial Reporting Standards, which become effective for the
first time during the year to 30 September 2003, will not give rise to any
changes to these policies in the
accounts at 30 September 2003.
The six month period is treated as a discrete period.
The comparative figures for the financial year ended 30 September 2002 are not
the company's statutory accounts for that financial year. Those accounts 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 237 (2) or (3) of
the Companies Act 1985.
The Directors approved the report for circulation on 20 May 2003.
2. Reconciliation of Operating profit to Operating cash flows
6 months 12 months 6 months
to 31.03.03 to 30.09.02 to 31.03.02
(reviewed) (audited) (reviewed)
# # #
Operating loss (142,223) (917,764) (481,629)
Exceptional items 0 (416,492) 0
(Increase)/Decrease in debtors 3,631 (9,459) (7,795)
Increase / (Decrease) in creditors (934,567) 527,110 110,221
Net cash outflow from operations (1,073,159) (816,605) (379,203)
3. Reconciliation of net cash
6 months 12 months 6 months
to 31.03.03 to 30.09.02 to 31.03.02
(reviewed) (audited) (reviewed)
# # #
Net cash brought forward:
Cash at bank 7,569,634 6,756,645 6,756,645
Bank overdraft (2,782,091) (4,431,054) (4,431,054)
4,787,543 2,325,591 2,325,591
Net movement in the period:
Net cash inflow/(outflow) (4,194,367) 2,378,728 1,668,384
Exchange movement (556) 83,224 (111,415)
(4,194,923) 2,461,952 1,556,969
Net cash carried forward:
Cash at bank 598,906 7,569,634 6,786,339
Bank overdraft (6,286) (2,782,091) (2,903,779)
592,620 4,787,543 3,882,560
ACQUISITOR PLC
("Acquisitor" or "the Company")
(Ticker: Reuters ACQ.L or Bloomberg: ACQ LN)
Notes to the Accounts (continued)
4. Reconciliation of movement in shareholders' funds
6 months 12 months 6 months
to 31.03.03 to 30.09.02 to 31.03.02
(reviewed) (audited) (reviewed)
# # #
Share capital:
Brought forward 57,143 2,857,145 2,857,145
Capital reduction 0 (2,800,002) 0
57,143 57,143 2,857,145
Share premium:
Brought forward 0 6,665,818 6,665,818
Capital reduction 0 (6,665,818) 0
0 0 6,665,818
Profit & loss account:
Brought forward 11,898,213 1,684,812 1,684,812
Profit for the period 87,790 747,581 187,365
Capital reduction (10,906,631) 9,465,820 0
Carried forward 1,079,372 11,898,213 1,872,177
Total:
Brought forward 11,955,356 11,207,775 11,207,775
Profit for the period 87,790 747,581 187,365
Capital reduction (10,906,631) 0 0
Carried forward 1,136,515 11,955,356 11,395,140
This information is provided by RNS
The company news service from the London Stock Exchange
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