Interim Results
August 08 2001 - 3:01AM
UK Regulatory
RNS Number:1870I
Advance Capital Invest PLC
8 August 2001
Advance Capital Invest plc
("ACI" or the "Company")
Interim Results for period ended 30 April 2001
Chairman's statement
Results
Since the Company's incorporation on 20 October 2000, Advance Capital Invest,
the investment vehicle, has raised a total of approximately #2 million in
conjunction with its admission to AIM on 1 December 2001. During the period
under review, the Company has not undertaken any trading activities but has
incurred certain staff and operational costs associated with reviewing a
number of acquisitions. As at 30 April 2001 the Company had net assets of
approximately #1.79 million, comprising cash at bank and in hand of #1.92
million and short term creditors of #0.13 million, predominantly relating to
the terminated acquisition, as described below.
Terminated acquisition
I am disappointed to announce that the Company has ended discussions to
acquire IAC Holdings Limited ("IAC"), a film and television development,
finance and sales agency business. On 27 June2001, I announced that the
Company had signed heads of terms for the acquisition of the entire issued
share capital of IAC. During the ensuing period the Company has undertaken
extensive due diligence on IAC with the intention of completing the proposed
acquisition. In light of the current stockmarket conditions, the Board no
longer believes that it is in the best interests of ACI shareholders to
complete the acquisition of IAC, due in part to the fact that it required a
simultaneous fundraising.
Outlook
As a result of the termination of the discussions with IAC, the Board will
continue to actively review potential acquisitions. ACI remains an attractive
investment vehicle capable of providing additional managerial and capital
input to the suitable opportunity, when identified. After taking account of
the costs associated with the terminated acquisition of IAC, which are
estimated to be approximately #430,000 inclusive of VAT, of which #125,000 was
incurred prior to 30 April 2001, the Company continues to have a strong
balance sheet with net assets per share of approximately 18.3p, consisting
predominantly of cash at bank and in hand.
Nigel Whittaker
Chairman
For further information, please contact:
Nigel Whittaker Tel: 020 7796 4133
Chairman, Advance Capital Invest
Alistair Mackinnon-Musson / Philip Dennis Tel: 020 7796 4133
Hudson Sandler Email: aci@hspr.co.uk
Chris Callaway / Henry Turcan Tel: 020 7488 4040
Beeson Gregory
Profit and loss accounts for the period from incorporation to 30 April 2001
Period Ended
Notes 30 April 2001
#'000
Administrative expenses (38)
Operating loss (38)
Costs re terminated transaction (125)
Other income 41
Loss on ordinary activities before taxation (122)
Tax on profit on ordinary activities -
Loss on ordinary activities after taxation (122)
Retained profit brought forward -
Losses carried forward (122)
Loss per share - Diluted 3 (0.02p)
Loss per share - Basic 3 (0.02p)
The profit and loss account has been prepared on the basis that all operations
are continuing operations.
There are no recognised gains and losses other than those passing through the
profit and loss account.
Balance sheets at 30 April 2001
As at
30 April
Notes 2001
#'000
Current assets
Cash at bank and in hand 1,923
1,923
Creditors: amounts falling due within one year (133)
Net Assets 1,790
Capital and reserves
Called up share capital 5 810
Share premium account 1,102
Profit and loss account (122)
Shareholder's Funds - all equity interests 1,790
Cash flow statement at 30 April 2001
As at
30 April
Notes 2001
#'000
Net cash outflow from operation activities (30)
Return on investments and servicing of finance
Interest received 41
Net Cash outflow before financing 11
Financing
Placing 1,912
Increase in cash in the period 1,923
Notes to the Cash Flow Statement
As at
30 April
2001
#'000
(1) Reconciliation of operating loss to operating
cash outflow
Operating loss (38)
Cost re aborted transaction (125)
Increase in creditors 133
Net cash outflow from operating activities (30)
(2) Reconciliation of net cash flow to movement in net
funds
Placing proceeds 2,025
Cost of Placing (113)
Movement in net funds in period 1,912
Notes to the interim financial statements
1. Basis of preparation of the financial statements
The profit and loss account, balance sheet and cashflow statement which are
unaudited have been prepared in accordance with relevant accounting standards.
The financial information contained in the financial statements does not
constitute statutory accounts within the meaning of section 240 of the Act.
The Company was incorporated on 20 October 2000 and admitted to the
Alternative Investment Market on 1 December 2000, from which date it became
active. The Company is a cash shell with the stated intention of acquiring a
significant stake in a single company that has the potential for rapid growth.
There have been few transactions during the period.
2. Costs re terminated acquisition
In these financial statements, the costs incurred up to 30 April 2001, in
connection with the now terminated acquisition of IAC, have been written off
to the profit and loss account.
It is estimated that additional costs have been incurred post 30 April 2001
amounting to #305,000 including VAT. No provision has been made in these
financial statements for this amount.
3. Loss per share
The loss per Ordinary share for the period ended 30 April 2001 has been based
on the loss attributable to Shareholders of #122,000 divided by 8,100,000
shares, being the entire issued share capital of the Company throughout the
period from 1 December 2000 when the Company became active.
There is no difference between the basic and fully diluted earnings per
Ordinary Share, as no Ordinary Shares are issuable under the Share Options
until the completion by the Company of a business acquisition, and this
condition had not been met at the end of the reporting period.
4. Ordinary dividend
The Board has not declared an interim dividend in respect of this period.
5. Called up share capital
As at
30 April
2001
#'000
Authorised
Equity: 10,000,000 ordinary shares of 10p each 1,000
Allotted and fully paid:
Equity: 8,100,000 ordinary shares of 10p each 810
Independent review report to Advance Capital Invest plc
Introduction
We have been instructed to review the financial information detailed below in
respect of the Company's interim financial statements for the period from 20
October 2000 to 30 April 2001.
Directors' responsibilities
The interim financial statements are the responsibility of, and have been
approved by the Directors.
The Listing Rules of the Financial Services Authority require that the
accounting policies and presentation applied to the interim figures should be
consistent with those applied in preparing the preceding annual accounts except
where any changes, and reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board. A review consists principally of making
enquiries of group management and applying typical analytical procedures to the
financial information and underlying financial data, and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review is substantially
less in scope than an audit performed in accordance with Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly we do
not express an audit opinion on the financial statements.
Review conclusion
On the basis of our review, we are not aware of any material modifications
that should be made to the financial information as presented for the period
ended 30 April 2001.
H W FISHER & COMPANY
Chartered Accountants
Acre House
11-15 William Road
London NW1 3ER
7 August 2001
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