Final Results
October 31 2003 - 8:21AM
UK Regulatory
RNS Number:5479R
KeyWorld Investments PLC
31 October 2003
KEYWORLD INVESTMENTS PLC
RESULTS FOR THE YEAR ENDED 30 APRIL 2003
The directors of KeyWorld Investments plc announce the results for the year
ended 30 April 2003.
Accounts are being posted to shareholders today and will be available at the
Company's registered office, 46 Crawford Street, London,W1H 1JU until 30
November 2003.
CHAIRMAN'S STATEMENT
During the year ended 30 April 2003, KeyWorld's new management team commenced
the implementation of the company's redefined strategy in preparation for the
launch of the KeyWorld Bond which is expected to take place by the end of 2003.
The accounts for the year ended 30 April 2003, which show a loss of #507,561,
reflect the costs incurred while implementing the redefined strategy and in
developing the KeyWorld Bond. There have been no sales during the period under
review.
RCI Europe - Keyworld Agreement
Throughout most of the year ended 30 April 2003, KeyWorld carried on extensive
negotiations with RCI Europe (RCI). These negotiations culminated in May 2003
with the signing of an agreement whereby RCI, the leading timeshare exchange and
travel services organisation, will provide accommodation exchange and club
member services to the purchasers of the KeyWorld Bond.
The KeyWorld Bond will be launched as a property-backed debenture that provides
the purchaser with an annual allocation of KeyPoints, which are refundable on a
one for one basis with RCI Points. In addition to the annual allocation of
KeyPoints and membership in the KeyWorld Club, the Bond is intended to return
the purchaser's initial investment at the end of 30 years.
Distribution Channels
During the past year, KeyWorld entered into discussions with various firms of
Independent Financial Advisers regarding the possibility of distributing the
KeyWorld Bond. These discussions continue and reflect significant interest in
the KeyWorld Bond.
Funding
The KeyWorld management team also focused considerable effort on the raising of
funds required to develop and launch the KeyWorld Bond, and the Company has
continued to enjoy the support of Ellingham Investments Limited, its majority
shareholder. As a result, KeyWorld was able to arrange a convertible loan from
Ellingham Investments Limited in the amount of #750,000. A substantial portion
of this loan was subsequently converted into KeyWorld shares.
In summary, I believe that KeyWorld has successfully recovered from the
suspension of its initial life insurance wrapped bond and is now in a position
to move forward with the launch of the KeyWorld Bond. I look forward to
announcing further developments as the year progresses.
Todd Knobel
Chairman
30 October 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 APRIL 2003
2003 2002
# #
Administrative expenses (457,613) (1,615,296)
Operating loss (457,613) (1,615,296)
Other operating income 52 1,116
Interest payable and similar charges (50,000) -
Loss on ordinary activities before taxation (507,561) (1,614,180)
Tax on loss on ordinary activities - -
Loss for the financial year absorbed by (507,561) (1,614,180)
reserves
Loss per share (pence) (0.03) (0.20)
There were no recognised gains or losses other than the loss for the year. All
operations are continuing.
CONSOLIDATED BALANCE SHEET AT 30 APRIL 2003
2003 2003 2002 2002
# # # #
Fixed assets
Tangible assets 69,419 96,066
Current assets
Debtors 24,695 29,855
Cash at bank and in hand 11,547 2,925
36,242 32,780
Creditors: amounts falling due within
one year
Convertible debt (532,491) -
Other (552,453) (1,325,568)
(1,084,944) (1,325,568)
Net current liabilities (1,048,702) (1,292,788)
Total assets less current liabilities (979,283) (1,196,722)
Capital and reserves
Called up share capital 1,255,839 530,839
Share premium account 1,653,095 1,653,095
Profit and loss account (3,888,217) (3,380,656)
Equity shareholders' funds (979,283) (1,196,722)
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 APRIL 2003
2003 2002
# #
Net cash outflow from operating activities (503,148) (768,606)
Interest received 52 1,116
Returns on investments and servicing of 52 1,116
finance
Capital expenditure and financial investment
Purchase of tangible fixed assets - (799)
Financing
Receipts from borrowings 530,679 473,175
Net cash inflow from financing 530,679 473,175
Increase/(decrease) in cash 27,583 (295,114)
NOTES
FINANCIAL INFORMATION
The financial information set out in this report does not constitute statutory
accounts as defined in section 240 of the Companies Act 1985. The figures for
the year ended 30 April 2003 have been extracted from the statutory financial
statements which have been not yet been filed with the Registrar of Companies.
The auditors' report on those financial statements was unqualified and did not
contain a statement under Section 237(2) of the Companies Act 1985.
GOING CONCERN
The company meets its day to day working capital requirements through the
financial support provided by Ellingham Investments Limited ('Ellingham'). This
support is in the form of a loan facility and conversion agreement dated 13 May
2002 under which Ellingham Investments Limited advanced funds up to #750,000
bearing interest at 10% and repayable on the anniversary of the agreement unless
the loan is converted into ordinary share capital.
On 17 June 2002 Ellingham exercised its right to convert #725,000 of debt to
ordinary share capital at par value. During the year to 30 April 2003 additional
funds were advanced to the group and on 12 May 2003 a further #580,000 of debt
was converted to ordinary share capital at 0.0714 pence per share. At 30 April
2003, the loan amount outstanding was #532,491.
On 22 August 2003 the company announced that it had arranged an unsecured loan
of #419,547 from one of its major shareholders, Lifestyle 2000 Limited. The loan
bears no interest and is repayable after three years.
Ellingham is a related party to the company by virtue of the fact that one of
its major shareholders is connected to a major shareholder in Keyworld
Investments PLC. The company expects to operate with this support for the
foreseeable future, as continued efforts are made to redesign and relaunch the
KeyWorld Bond.
On this basis, the directors consider it appropriate to prepare the financial
statements on the going concern basis. The financial statements do not include
any adjustments that would result from a withdrawal of Ellingham's support.
LOSS PER SHARE
2003 Weighted average 2003 Per share 2002 Weighted average 2002 Per share
number of shares amount number of shares amount
(number) (pence) (number) (pence)
Basic loss per 1,678,176,875 (0.03) 796,259,067 (0.20)
share
The weighted average number of shares is calculated by time apportioning each
share issue during the year. The loss per share calculation is based on a loss
for the year ended 30 April 2003 of #507,562 (30 April 2002 of #1,614,180).
All options were anti-dilutive in 2003 and 2002.
This information is provided by RNS
The company news service from the London Stock Exchange
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