TIDMDKE
RNS Number : 8441Z
Dukemount Capital PLC
20 December 2017
20 December 2017
Dukemount Capital Plc
("Dukemount" or "the Company")
Interim Results
Dukemount Capital Plc (LSE: DKE) is pleased to announce its
unaudited interim results for the six months ended 31 October
2017.
Highlights
-- First acquisition made in September 2017 of property in North West England
-- 50-year Agreement to Lease signed with Housing Association on first property in September 2017
-- Option to Buy, with a four-month term, signed on second property in North West England
Geoffrey Dart commented:
"It has been a very active six months for the Board who have
been pursuing a number of deals focussing on both small and medium
acquisitions. Two are progressing well as previously announced but
also much larger transactions, which would be immediately
attractive to institutions seeking blue chip long-term income, have
been presented to us. As a result of this, excellent contacts have
been forged with additional institutions who have approached
Dukemount seeking long-term income and the Group views the future
with considerable optimism."
The Group will continue to update shareholders once further
progress has been made.
For further information, please visit
www.dukemountcapitalplc.com or contact:
Dukemount Capital Plc Via WalbrookPR
Geoffrey Dart / Timothy
Le Druillenec
Walbrook PR (Media and Tel: +44 (0) 207 933
Investor Enquiries 8780
Paul Cornelius / Gary dukemountcapital@walbrookpr.com
Middleton
Optiva Securities Ltd Tel: +44 (0) 203 137
1906
Christian Dennis - Corporate
Broker
Jeremy King - Corporate
Broker
Peterhouse Corporate Tel: +44 (0) 207 469
Finance Limited 0930
Lucy Williams/Duncan
Vasey
Chairman's Statement
I hereby present the Interim Report for the six months ended 31
October 2017. During the period the Company made a loss of
GBP112,976 (six months to 31 October 2016: loss of GBP21,118) which
is mainly attributable to directors' fees and the costs of being on
the Official List and trading on the London Stock Exchange. As at
the date of this report the Group has approximately GBP230,000 of
cash balances.
Following its listing on the London Stock Exchange on 29 March
2017, the Group has continued to investigate various projects and
has completed its first acquisition with an option in place on a
possible second acquisition.
The Government's backing of housing at the last budget is good
to see and we expect some of the GBP44 billion in overall
government support for housing filtering through to the supported
living sector which continues to grow at a pace.
As we have always tried to stress, Dukemount is neither a
property developer nor a Real Estate Investment Trust. Our primary
business is selling long-dated, CPI linked income to institutions
such as pension funds who are battling continued longevity in their
pension clients. Since 1971 average life expectancy in men has
risen by 10 years and over 7 years for women.
We have a very flexible business model and can reinvest all our
profits into expanding our property portfolio or pay a dividend
which also means that we don't need to raise capital on the Stock
Market to fund acquisitions.
We have chosen the supported living sector as it's fast growing
and seen as having good visibility for long term Government funding
as there are long term cost savings to local authorities.
North West England Acquisitions
The two acquisitions we have so far announced are different
projects with one involving demolition and re-build the other a
refurbishment in a large City in the North West of England.
The first involves the demolition of a large building in a high
density residential area which will serve tenants from the
supported living sector looking to live within the local community
very well. The area has excellent transport links and many local
shops within walking distance.
We have finalised plans with our architect for a new building
which will include retail space of approximately 3,200 square feet
and 17 residential apartments. We have already agreed a 50-year
lease with a supported living housing association and expect to
generate around GBP234,000 of income per annum which is
CPI-linked.
Our build-out timescale for this project is estimated to take 18
months after which the housing association will receive the keys.
An appropriate builder has been sourced and will be bonded for time
and cost.
We are currently in talks with institutions who wish to purchase
the entire 50-year lease income for their long-dated income
requirements.
We have also received notifications of interest in buying this
project as it is, a development site with planning permission, and
the uniqueness of our business model allows us to consider these
proposals.
The second project consists of a large building which was
previously used for high occupancy living. This project will have a
shorter timeline to completion as it only involves the
refurbishment of the interior and landscaping and we expect a
6-month timeline.
The announcement of these acquisitions earlier in the year has
generated additional interest for this project from a number of
housing associations and we are currently in discussions with these
organisations to get the best deal for Dukemount both in timescale
and income. As this situation has arisen we have taken a four-month
option-to-buy on the property to allow us to successfully conclude
a leasing agreement.
When a 50-year lease has been agreed, and all the necessary and
substantial health and safety checks concluded we will offer the
entire income to our expanding database of institutional
clients.
Outlook
We are being presented with acquisition targets on a regular
basis both small and medium and more recently of a more significant
scale. Each acquisition is investigated thoroughly on its merits to
attract both housing associations and institutions and concise
surveys are undertaken. In tandem with this, we are considering
offers of finance as well as other suggestions for the first
acquisition in the North West of England and expect to have made a
decision in the coming months allowing the development to
commence.
With long-dated income demand still high and solutions still
lean we continue to see a bright future for Dukemount. The end game
is in sight for our first two acquisitions and I look forward to
updating on new acquisition opportunities as they clear our strict
criteria.
I would like to take the opportunity to thank our shareholders
for their support and also my fellow directors for their continuing
efforts in driving this business forward.
Geoffrey Dart
Executive Chairman
19 December 2017
Responsibility Statement
We confirm that to the best of our knowledge:
-- the Interim Report has been prepared in accordance with
International Accounting Standards 34, Interim Financial Reporting,
as adopted by the EU; and
-- gives a true and fair view of the assets, liabilities,
financial position and loss of the Group; and
-- the Interim Report includes a fair review of the information
required by DTR 4.2.7R of the Disclosure and Transparency Rules,
being an indication of important events that have occurred during
the first six months of the financial year and their impact on the
set of interim financial statements; and a description of the
principal risks and uncertainties for the remaining six months of
the year.
-- The Interim Report includes a fair review of the information
required by DTR 4.2.8R of the Disclosure and Transparency Rules,
being the information required on related party transactions.
The interim Report was approved by the Board of Directors and
the above responsibility statement was signed on its behalf by:
Geoffrey Dart
Executive Chairman
19 December 2017
Statement of Comprehensive Income
For the half year ended 31 October 2017
Group Company Company
Notes Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Oct 31 Oct 30 April
2017 2016 2017
GBP GBP GBP
Total administrative
expenses and loss from
operations (153,476) (21,918) (167,470)
Loss on disposal of available
for sale financial investment - - (9,679)
Loss before taxation (153,476) (21,918) (177,149)
Tax - - -
Loss for the financial
period (153,476) (21,918) (177,149)
Other comprehensive income
Unrealised gain on available
for sale financial investment 40,500 800 800
Reclassification of cumulative
loss on available for
sale financial asset
on disposal - - 17,200
----------- ----------- -----------
Total comprehensive (loss)
attributable to the equity
holders of the parent (112,976) (21,118) (159,149)
----------- ----------- -----------
Earnings per share
- Basic and diluted 3 (0.0332) (0.0138) (0.099)
Statements of financial position
At 31 October 2017
Group Company Company
Note Unaudited Unaudited Audited
31 Oct 31 Oct 30 April
2017 2016 2017
GBP GBP GBP
ASSETS
Current assets
Investment property 4 200,743 - -
Available for sale financial
assets 65,500 27,800 25,000
Trade and other receivables 5 33,807 4,231 41,793
Cash and cash equivalents 234,198 17,072 593,406
Total Current assets 534,248 49,103 660,199
----------- ----------- ----------
Total assets 534,248 49,103 660,199
----------- ----------- ----------
LIABILITIES
Current liabilities
Trade and other payables 6 7,900 5,775 26,875
Total Current liabilities 7,900 5,775 26,875
----------- ----------- ----------
Total liabilities 7,900 5,775 26,875
----------- ----------- ----------
NET ASSETS 526,348 43,328 633,324
----------- ----------- ----------
Capital and reserve attributable
to the equity holders
of the Parent
Share capital 339,500 152,500 338,300
Share premium 736,337 196,500 731,537
Share based payments
reserve 30,499 23,308 30,499
Retained earnings (579,988) (328,980) (467,012)
----------- ----------- ----------
TOTAL EQUITY 526,348 43,328 633,324
----------- ----------- ----------
Statement of Changes in Equity
For the half year ended 31 October 2017
Company Share Share Share Retained Total
capital premium based losses shareholders'
payment equity
reserve
GBP GBP GBP GBP GBP
Balance at 1 May
2016 152,500 196,500 23,308 (307,863) 64,445
---------------------- --------- --------- --------- ----------- ---------------
Loss for the period - - - (177,149) (177,149)
Other comprehensive
income
Change in fair
value of available
for sale financial
assets - - - 800 800
--------- --------- --------- ----------- ---------------
Reclassification
of cumulative loss
on available for
sale financial
assets on disposal - - - 17,200 17,200
--------- --------- --------- ----------- ---------------
Total comprehensive
income for the
year - - - (159,149) (159,149)
--------- --------- --------- ----------- ---------------
Issue of ordinary
shares 185,800 623,200 - - 809,000
Issue costs - (88,163) - - (88,163)
Share based payments - - 7,191 - 7,191
Total transactions
with owners 185,800 535,037 7,191 - 728,028
Balance at 30 April
2017 338,300 731,537 30,499 (467,012) 633,324
---------------------- --------- --------- --------- ----------- ---------------
Consolidated Share Share Share Retained Total
capital premium based losses shareholders'
payment equity
reserve
GBP GBP GBP GBP GBP
Balance at 30 April
2017 338,300 731,537 30,499 (467,012) 633,324
----------------------- --------- --------- --------- ---------- ---------------
Loss for the period (153,476) (153,476)
Other comprehensive
income
Change in fair
value of available
for sale financial
assets 40,500 40,500
--------- --------- --------- ---------- ---------------
Total comprehensive
income for the
year - - - (112,976) (112,976)
--------- --------- --------- ---------- ---------------
Issue of ordinary
shares 1,200 4,800 - - 6,000
Total transactions
with owners 1,200 4,800 - - 6,000
--------- --------- --------- ---------- ---------------
Balance at 31 October
2017 339,500 736,337 30,499 (579,988) 526,348
----------------------- --------- --------- --------- ---------- ---------------
Statement of Cashflows
For the half year ended 31 October 2017
Group Company Company
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Oct 31 Oct 30 April
2017 2016 2017
GBP GBP GBP
Operating activities
Loss before taxation (153,476) (21,918) (177,149)
Loss on disposal of available
for sale financial asset - - 9,679
Share based payments - - 7,191
Decrease / (increase) in
trade and other receivables 7,986 (305) (37,867)
(Decrease) / increase in
trade and other payables (18,975) 1,926 23,025
Cash used in operations (164,465) (20,297) (175,121)
Net cash outflow used in
operating activities (164,465) (20,297) (175,121)
Investing activities
Proceeds from sale of available
for sale financial assets - - 10,321
Purchase of investment property (200,743) - -
----------- ----------- ----------
Net cash outflow from investing
activities (200,743) - 10,321
----------- ----------- ----------
Cash Flows from Financing
Activities
Proceeds from issue of shares,
net of issue costs 6,000 - 720,837
Net Cash generated from Financing
Activities 6,000 - 720,837
----------- ----------- ----------
Decrease in cash and cash
equivalents in period/ year (359,208) (20,297) 556,037
Cash and cash equivalents
at beginning of period /
year 593,406 37,369 37,369
Cash and cash equivalents
at end of period / year 234,198 17,072 593,406
----------- ----------- ----------
Notes to the Interim Report
For the half year ending 31 October 2017
1. GENERAL INFORMATION
Dukemount Capital Plc (the "Company") is a company domiciled in
England. The interim report for the six months ended 31 October
2017 comprises the results of the Company and its subsidiaries
(together referred to as the "Group").
The comparatives for the full year ended 30 April 2017 are
results of the Company only as the subsidiary was formed after 30
April 2017. A copy of the statutory accounts for that year has been
delivered to the Registrar of Companies. The auditor's report on
those financial statements was unqualified.
2. BASIS OF PREPARATION AND FINANCIAL INFORMATION
The Interim Report, which includes the consolidated interim
financial statements have been prepared in accordance with
International Accounting Standard 34 'Interim Financial Reporting'.
The Interim Report should be read in conjunction with the annual
financial statements for the year ended 30 April 2017, which have
been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union.
The results of the six months to 31 October 2017 is consolidated
and the comparative is company only figures as the subsidiaries
formed after year end.
Cyclicality
The interim results for the six months ended 31 October 2017 are
not necessarily indicative of the results to be expected for the
full year ending 30 April 2018. Due to the nature of the entity,
the operations are not affected by seasonal variations at this
stage.
The Interim Report for the period 1 May 2017 to 31 October 2017
is unaudited. This report has not been reviewed by the company's
auditors in accordance with the International Standard on Review
Engagements 2410 issued by the Auditing Practices Board. In the
opinion of the Directors the interim financial statements, included
in the Interim Report, for the period presents fairly the financial
position, and results from operations and cash flows for the period
in conformity with the generally accepted accounting principles
consistently applied. The interim financial statements incorporate
unaudited comparative figures for the interim period 1 May 2016 to
31 October 2016 and extracts from the audited financial statements
for the year ended 30 April 2017.
The Interim Report, which includes the interim financial
statements, set out above does not constitute statutory accounts
within the meaning of the Companies Act 2006. It has been prepared
on a going concern basis in accordance with the recognition and
measurement criteria of International Financial Reporting Standards
(IFRS) as adopted by the European Union. Except as described below,
the accounting policies applied in preparing the interim financial
statements are consistent with those that have been adopted in the
Company's 2017 audited financial statements. Statutory financial
statements for the year ended 30 April 2017 were approved by the
Board of Directors on 10 August 2017 and delivered to the Registrar
of Companies. The report of the auditors on those financial
statements was unqualified.
Going concern
The Directors, having made appropriate enquiries, consider that
adequate resources exist for the Company and Group to continue in
operational existence for the foreseeable future and that,
therefore, it is appropriate to adopt the going concern basis in
preparing the condensed interim financial statements for the period
ended 31 October 2017.
Risks and uncertainties
The key risks that could affect the Group's short and medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Company's 2017
audited financial statements, a copy of which is available on the
Company's website: http://www.dukemountcapitalplc.com. Following
the Company's acquisition of investment property in this six month
reporting period, the group needs to ensure that its investment
properties have long term leases in place with Housing Associations
and that they are of sufficient interest to Institutions to whom
the Company will seek to sell long-term income from the property
assets. In addition the Company is aware of the need to enhance its
reserves of cash and cash equivalents.
Accounting Policies
Critical accounting estimates and judgements
The preparation of the interim financial statements requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the end of the reporting
period. Due to the nature of the Company, the Directors do not
believe there to be any material critical accounting estimates and
judgements that were used in preparing these financial
statements.
Changes in accounting policy and disclosures
The following new accounting policies have been implemented in
the period:
Consolidation - subsidiaries
Subsidiaries are all entities (including structured entities)
over which the Group has control. The Group controls an entity when
the Group is exposed to, or has rights to, variable returns from
its involvement with the entity and has the ability to affect those
returns through its power over the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the
Group. They are deconsolidated from the date that control
ceases.
The group applies the acquisition method to account for business
combinations. The consideration transferred for the acquisition of
a subsidiary is the fair values of the assets transferred, the
liabilities incurred to the former owners of the acquire and the
equity interests issued by the group. The consideration transferred
includes the fair value of any asset or liability resulting from a
contingent consideration arrangement. Identifiable assets acquired
and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair values at the
acquisition date. The group recognises any non-controlling interest
in the acquired companies on an acquisition-by-acquisition basis,
either at fair value or at the non-controlling interest's
proportionate share of the recognised amounts of acquiree's
identifiable net assets.
Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the
acquisition date carrying value of the acquirer's previously held
equity interest in the acquiree is re-measured to fair value at the
acquisition date; any gains or losses arising from such
re-measurement are recognised in profit or loss.
Any contingent consideration to be transferred by the group is
recognised at fair value at the acquisition date. Subsequent
changes to the fair value of the contingent consideration that is
deemed to be an asset or liability is recognised in accordance with
IAS 39 either in profit or loss or as a change to other
comprehensive income. Contingent consideration that is classified
as equity is not re-measured, and its subsequent settlement is
accounted for within equity.
Inter-company transactions, balances and unrealised gains on
transactions between group companies are eliminated. Unrealised
losses are also eliminated. When necessary, amounts reported by
subsidiaries have been adjusted to conform with the group's
accounting policies.
The following entities have been consolidated in to the Group
interim financial statements:
DKE (North West) Limited, incorporated 6(th) November 2014 in
England, of which 100% of the GBP100 share capital was acquired on
7(th) September 2017 for GBP1. This company simultaneously acquired
a property in North West England.
DKE (Wavertree) Limited, incorporated 24(th) April 2016 in
England, of which 100% of the GBP1 share capital was acquired on
6(th) October 2017. This company subsequently signed an option to
acquire a property in North West England on a four month term.
Investment property
Investment property is measured initially at its cost, including
related transaction costs and where applicable borrowing costs
IAS 7 and 12 have been taken out but have no impact on the
accounts.
New standards, amendments and interpretations not yet
adopted
The standards and interpretations that are issued, but not yet
effective, up to the date of issuance of the Financial Statements
are listed below. The Group intend to adopt these standards, if
applicable, when they become effective.
Standard Effective date
------------------------ --------------------------------------------------------- -------------------
IAS 40 (Amendments) Transfer of investment property 1 January 2018
IFRIC Interpretation 22 Foreign currency transactions and advanced consideration 1 January 2018
IFRS 4 (Amendments) Applying IFRS 9 with IFRS 4 Insurance contracts 1 January 2018*(1)
IFRS 9 Financial instruments 1 January 2018*(1)
IAS 16 Leases 1 January 2019*(1)
IFRS 15 Revenue from contracts with customers 1 January 2018*(1)
IAS 7 (Amendments) Disclosure initiative 1 January 2017*(1)
IFRS 2 (Amendments) Share based payments - classification and measurement 1 January 2018
IAS 12 (Amendments) Recognition of Deferred Tax 1 January 2017*(1)
Annual Improvements 2014-2016 Cycle 1 January 2017
------------------------ --------------------------------------------------------- -------------------
1. Not yet endorsed by the EU.
The Group is evaluating the impact of the new and amended
standards above.
3. EARNINGS PER SHARE
The basic loss per share is derived by dividing the loss for the
period attributable to ordinary shareholders by the weighted
average number of shares in issue.
Group Company Company
Unaudited Unaudited Audited
31 Oct 31 Oct 30 April
2017 2016 2017
Loss for the period (GBP'000) (112,976) (21,118) (159,149)
Weighted average number
of shares - expressed in
thousands 339,500 152,500 179,687
Basic earnings per share
- expressed in pence (0.0332) (0.0138) (0.099)
4. INVESTMENT PROPERTY
Group Investment
property
Cost
Opening cost at 1 May -
2017
Additions 200,743
Closing cost at 31 October
2017 200,743
-----------
The investment property is currently under construction and is
valued under the cost model.
5. TRADE AND OTHER RECEIVABLES
Group Company Company
Unaudited Unaudited Audited
31 Oct 31 Oct 30 April
2017 2016 2017
Trade and other receivables 33,807 4,231 41,793
33,807 4,231 41,793
=========== =========== ==========
6. TRADE AND OTHER PAYABLES
Group Company Company
Unaudited Unaudited Audited
31 Oct 31 Oct 30 April
2017 2016 2017
Trade and other payables 7,900 5,775 26,875
7,900 5,775 26,875
=========== =========== ==========
7. POST REPORTING DATE EVENTS
There have been no events after the reporting date of a material
nature.
.
8. APPROVAL OF INTERIM FINANCIAL STATEMENTS
The Condensed interim financial statements were approved by the
Board of Directors on 19 December 2017.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR OKCDNABDDBBD
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