TIDMASTR TIDMEVOL
RNS Number : 6606Z
Astaire Group Plc
25 September 2009
Astaire Group Plc
INTERIM CONDENSED FINANCIAL STATEMENTS
for the six months ended 30 June 2009
Astaire Group Plc, the investment bank and stockbroker, today announces its
interim results for the six months ended 30 June 2009.
Highlights
* Significant restructuring programme essentially completed
* Acquisition of complementary businesses, Dowgate Capital Plc and Ruegg & Co
Limited
* June 2009 was the first profitable month for fifteen months
* Group rebranded under the well established Astaire name
* Group retained net cash remains strong at GBP9.1 million
Edward Vandyk, Group Chief Executive, commented:
"Following our restructuring programme, we are now focused on growing the Group,
both organically and through the acquisition of complementary businesses to
strengthen our competitive position for the long term. However, while there are
signs of increased market activity, small cap corporate activity remains slow
and so we remain cautious on that front for the remainder of this year. Our
retail stockbroking business Rowan Dartington & Co. is benefiting from
increasing private client activity."
+---------------------------------+----------------------------------------------+
| Enquiries | |
+---------------------------------+----------------------------------------------+
| Astaire Group plc | 020 7448 4400 |
+---------------------------------+----------------------------------------------+
| Edward Vandyk | |
+---------------------------------+----------------------------------------------+
| | |
+---------------------------------+----------------------------------------------+
| Fairfax I.S. PLC, Nominated | 020 7598 5368 |
| Adviser | |
+---------------------------------+----------------------------------------------+
| Jeremy Porter | |
+---------------------------------+----------------------------------------------+
| | |
+---------------------------------+----------------------------------------------+
| | |
+---------------------------------+----------------------------------------------+
| Maitland | 020 7379 5151 |
+---------------------------------+----------------------------------------------+
| Neil Bennett | |
+---------------------------------+----------------------------------------------+
| George Hudson | |
+---------------------------------+----------------------------------------------+
| Tom Roberts | |
+---------------------------------+----------------------------------------------+
Chairman's Statement
The first half of 2009 has seen the new management team focused on the
objectives set out by the Chief Executive in the 2008 Annual Report and
Accounts, in particular achieving cash flow neutrality and returning the group
to profitability.
Results
The underlying loss before tax (as explained more fully in the Financial Review)
for the period was GBP2.3 million, compared to a loss of GBP1.1 million for the
first six months of 2008. Statutory loss before tax from continuing operations
was GBP2.6 million, compared with a loss of GBP1.6 million for the first half of
2008. Whilst total income has fallen relative to last year the main contributor
to the increased losses in 2009 has been the costs of restructuring.
For the first time in fifteen months the Group achieved its objective of being
profitable in the month of June 2009. This has been achieved despite a
relatively low level of revenue as a consequence of the cost reductions
implemented across the businesses.
Strategy
There has been significant restructuring activity within the London based
institutional stockbroking and corporate finance business, along with the
cessation of activities in Blue Oar Asset Management and the sale of the
Australian business, Inteq Limited. The costs of restructuring and terminating
activities are included in these results.
Having largely completed the restructuring phase the Group has pursued its
strategy of seeking to acquire businesses that can deliver additional revenue
onto the established operating platforms within the Group. The successful
conclusion to our offer for Dowgate Capital Plc will deliver additions to our
corporate finance activities as well as an expansion of our private client
wealth management business. The acquisition of Ruegg & Co Limited also provides
further expansion to our corporate finance function. The task for the remainder
of the year is to fully integrate these acquisitions and ensure any operational
efficiencies are successfully delivered.
Astaire Securities Plc
The securities business has been reshaped in the first half of 2009 with
substantial changes in personnel, management and operating focus. The business
remains committed to its institutional and corporate clients and is improving
the services provided to both. Work is ongoing to fully absorb and integrate the
staff and clients acquired through the acquisitions, and this is expected to be
completed before the year end.
Rowan Dartington & Co. Limited
The private client stockbroking and wealth management business was, and remains,
a key part of the Group's activities. The business continues to recruit talented
staff and has recently agreed terms with suppliers for a significant upgrading
to its IT systems.
Change of Name
The Group has changed its name from Blue Oar Plc to Astaire Group Plc in
accordance with approval obtained from shareholders at the Annual General
Meeting.
Outlook
Whilst markets feel more positive at present, and there is increased activity in
the marketplace generally, small cap corporate activity remains slow. Our
expectations therefore remain cautious on that front for the remainder of this
year. However, private client activity is increasing, and the Group's
institutional research gaining wider recognition, so we look forward to 2010
with increasing confidence.
Oliver Vaughan
Chairman
25th September 2009
Financial Review
Result before tax
The result for the first six months of 2009 was a headline loss before tax of
GBP2.6 million which, on an underlying basis (the metric by which the Board
monitors ongoing performance and which is considered to provide the optimal
comparative measure) produced a loss before tax of GBP2.3 million as detailed
below:
+--------------------------------------+--------------+--------------+--------------+
| | Unaudited | Unaudited | Audited |
| | Six months | Six months | Year ended |
| | to | to | 31 December |
| | 30 June 09 | 30 June 08 | 08 |
| | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------------+--------------+--------------+--------------+
| | | | |
+--------------------------------------+--------------+--------------+--------------+
| Headline loss on ordinary activities | (2,561) | (1,615) | (16,131) |
| before taxation | | | |
+--------------------------------------+--------------+--------------+--------------+
| Add back: | | | |
+--------------------------------------+--------------+--------------+--------------+
| (Gain) / loss on fair value through | (23) | (427) | 1,092 |
| profit and loss investments | | | |
+--------------------------------------+--------------+--------------+--------------+
| Adjustments for associated operating | 12 | 214 | (546) |
| costs | | | |
+--------------------------------------+--------------+--------------+--------------+
| Loss on sale of subsidiary | 619 | - | - |
+--------------------------------------+--------------+--------------+--------------+
| Impairment of goodwill and other | 98 | - | 10,261 |
| intangibles | | | |
+--------------------------------------+--------------+--------------+--------------+
| Amortisation of other intangibles | 222 | 265 | 589 |
+--------------------------------------+--------------+--------------+--------------+
| Bid defence costs | - | - | 365 |
+--------------------------------------+--------------+--------------+--------------+
| Share-based payments credit | (924) | - | - |
+--------------------------------------+--------------+--------------+--------------+
| Share-based payments charge | 292 | 470 | 1,115 |
+--------------------------------------+--------------+--------------+--------------+
| | | | |
+--------------------------------------+--------------+--------------+--------------+
| Underlying loss on ordinary | (2,265) | (1,093) | (3,255) |
| activities before taxation | | | |
+--------------------------------------+--------------+--------------+--------------+
Income statement
The Income Statement for the period is split between "Continuing" and
"Discontinued" operations. Discontinued refers to the sale in the period of the
Group's Australian subsidiary, Inteq Limited, which completed on 3 June 2009 and
which reported a loss for the period of GBP196,000 (6 months to 30 June 2008:
loss of GBP416,000).
Gross fees and commission income fell 7% relative to the same period last year,
and this was primarily due to the very limited revenues from corporate finance
and new issue activity. Realised gains on our equity investments and option
positions again provided a contribution, with a net gain of GBP220,000 (6 months
to 30 June 2008: GBP702,000). The unrealised movement in the valuation of
options and warrants held at 30 June 2009 was a modest gain of GBP23,000 (6
months to 30 June 2008: GBP427,000), reflecting a further positive movement in
the share price of the underlying equities. The loss on the sale of Inteq
Limited totalled GBP619,000. Operating expenses, on a headline basis, have
fallen by 17% relative to the first half of 2008. Investment revenue of
GBP148,000 (6 months to 30 June 2008: GBP573,000) is primarily interest on the
cash balances held by the Group.
Taxation
The taxation credit for the period is principally in respect of deferred tax
movements.
Earnings per share
The basic loss per share from continuing operations for the six months was 1.48
pence per share compared to 0.85 pence per share for the first six months of
2008.
Balance sheet
The main change in the Balance Sheet between 31 December 2008 and 30 June 2009
relates to the movement in cash. Net assets per share were 9.99 pence per share
at 30 June 2009, a 17.3% decline from 12.08 pence per share at 31 December 2008.
Net current assets remain strong at GBP12.5 million at 30 June 2009 compared
with GBP15.2 million at 31 December 2008.
Cash flow
During the period cash and cash equivalents have fallen from GBP13.6 million to
GBP9.1 million, a reduction of GBP4.5 million. The cash reduction is as a
consequence of the costs of restructuring and the cessation of non-core
operations, the operating outflows in the period, costs relating to the
successful bid by Evolve Capital Plc in December 2008 and investment activity.
Dividends
The Board is not recommending the payment of an interim dividend.
Going concern
As part of its regular assessment of the future prospects for the Group, the
Board reviews a one year plan and further projections. Group cash balances
including those acquired have decreased during 2009, but the Group has
significant cash resources and no borrowings. As detailed above, the Group has
undertaken a strategic review and cut costs across its operating businesses.
As a result of such considerations, the Directors have a reasonable expectation
at the time of approving the interim financial statements that the Company and
the Group have adequate resources to continue in operational existence for the
foreseeable future. For this reason, they continue to adopt the going concern
basis in preparing the interim financial statements.
Peter Joy
Group Finance Director
25th September 2009
Condensed Consolidated Income Statement
for the six months ended 30 June 2009
+----------------------------------------+-------------+-------------+-------------+
| | Unaudited | Unaudited | Audited |
| | Six months | Six months | Year ended |
| | to | to | 31 December |
| | 30 June 09 | 30 June 08 | 08 |
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Fee and commission income | 6,187 | 6,661 | 15,018 |
+----------------------------------------+-------------+-------------+-------------+
| Fee and commission expenses | (1,028) | (644) | (1,825) |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Net fee and commission income | 5,159 | 6,017 | 13,193 |
+----------------------------------------+-------------+-------------+-------------+
| Other income | 338 | 96 | 178 |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Total income | 5,497 | 6,113 | 13,371 |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Profit on disposal of | 220 | 702 | 651 |
| available-for-sale investments | | | |
+----------------------------------------+-------------+-------------+-------------+
| Gain / (loss) on fair value through | 23 | 427 | (1,092) |
| profit and loss investments | | | |
+----------------------------------------+-------------+-------------+-------------+
| Loss on sale of subsidiary | (619) | - | - |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Operating expenses | (98) | - | (10,261) |
| Impairment of goodwill and other | | | |
| intangibles | | | |
+----------------------------------------+-------------+-------------+-------------+
| Amortisation of other intangibles | (222) | (265) | (589) |
+----------------------------------------+-------------+-------------+-------------+
| Bid defence costs | - | - | (365) |
+----------------------------------------+-------------+-------------+-------------+
| Share-based payments credit | 924 | - | - |
+----------------------------------------+-------------+-------------+-------------+
| Share-based payments charge | (292) | (470) | (1,115) |
+----------------------------------------+-------------+-------------+-------------+
| Other operating expenses | (8,142) | (8,690) | (17,832) |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Total operating expenses | (7,830) | (9,425) | (30,162) |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Operating loss | (2,709) | (2,183) | (17,232) |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Investment revenue | 154 | 573 | 1,150 |
+----------------------------------------+-------------+-------------+-------------+
| Finance costs | (6) | (5) | (49) |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Loss on ordinary activities before | (2,561) | (1,615) | (16,131) |
| taxation | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Taxation | 79 | 205 | 1,186 |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Loss from continuing operations | (2,482) | (1,410) | (14,945) |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Discontinued operations | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Loss from discontinued operations | (196) | - | - |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Loss for the period | (2,678) | (1,410) | (14,945) |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Loss attributable to equity | (2,678) | (1,410) | (14,945) |
| shareholders | | | |
| of Astaire Group Plc | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Loss per ordinary share (pence) | | | |
+----------------------------------------+-------------+-------------+-------------+
| From continuing operations | (1.48) | (0.85) | (9.01) |
| - Basic | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| - Diluted | (1.48) | (0.85) | (8.97) |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| From continuing and discontinued | (1.60) | (0.85) | (9.01) |
| operations | | | |
| - Basic | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| - Diluted | (1.59) | (0.85) | (8.97) |
+----------------------------------------+-------------+-------------+-------------+
Condensed Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2009
+----------------------------------------+-------------+-------------+-------------+
| | Unaudited | Unaudited | Audited |
| | Six months | Six months | Year ended |
| | to | to | 31 December |
| | 30 June 09 | 30 June 08 | 08 |
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Loss for the period | (2,678) | (1,410) | (14,945) |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Other comprehensive income: | | | |
+----------------------------------------+-------------+-------------+-------------+
| Gains on revaluation of | 53 | 50 | 191 |
| available-for-sale investments taken | | | |
| to equity, net of tax | | | |
+----------------------------------------+-------------+-------------+-------------+
| Exchange differences on translation of | 3 | 424 | 419 |
| foreign operations | | | |
+----------------------------------------+-------------+-------------+-------------+
| Transferred to profit or loss on sale | (98) | 1 | (3) |
| of available-for sale investments | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Other comprehensive income for the | (42) | 475 | 607 |
| year, net of tax | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Total comprehensive income for the | (2,720) | (935) | (14,338) |
| year | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Total comprehensive income | (2,720) | (935) | (14,338) |
| attributable to | | | |
| equity shareholders of Astaire Group | | | |
| Plc | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
Condensed Consolidated Balance Sheet
as at 30 June 2009
+------------------------+------------------+------------------+------------------+
| | Unaudited | Unaudited | Audited |
| | 30 June 09 | 30 June 08 | 31 December 08 |
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------+------------------+------------------+------------------+
| ASSETS | | | |
+------------------------+------------------+------------------+------------------+
| Non-current assets | | | |
+------------------------+------------------+------------------+------------------+
| Goodwill | 1,093 | 9,645 | 1,093 |
+------------------------+------------------+------------------+------------------+
| Other intangible | 3,363 | 5,944 | 3,841 |
| assets | | | |
+------------------------+------------------+------------------+------------------+
| Property, plant and | 595 | 988 | 906 |
| equipment | | | |
+------------------------+------------------+------------------+------------------+
| | | | |
+------------------------+------------------+------------------+------------------+
| Total non-current | 5,051 | 16,577 | 5,840 |
| assets | | | |
+------------------------+------------------+------------------+------------------+
| | | | |
+------------------------+------------------+------------------+------------------+
| Current assets | | | |
+------------------------+------------------+------------------+------------------+
| Trade and other | 11,480 | 27,818 | 7,065 |
| receivables | | | |
+------------------------+------------------+------------------+------------------+
| Available-for-sale | 1,583 | 1,549 | 1,224 |
| investments | | | |
+------------------------+------------------+------------------+------------------+
| Fair value through | 316 | 1,970 | 522 |
| profit & | | | |
| loss investments | | | |
+------------------------+------------------+------------------+------------------+
| Cash and cash | 9,093 | 16,392 | 13,601 |
| equivalents | | | |
+------------------------+------------------+------------------+------------------+
| | | | |
+------------------------+------------------+------------------+------------------+
| Total current assets | 22,472 | 47,729 | 22,412 |
+------------------------+------------------+------------------+------------------+
| | | | |
+------------------------+------------------+------------------+------------------+
| Total assets | 27,523 | 64,306 | 28,252 |
+------------------------+------------------+------------------+------------------+
| | | | |
+------------------------+------------------+------------------+------------------+
| LIABILITIES | | | |
+------------------------+------------------+------------------+------------------+
| Current liabilities | | | |
+------------------------+------------------+------------------+------------------+
| Trade and other | 9,935 | 29,219 | 7,152 |
| payables | | | |
+------------------------+------------------+------------------+------------------+
| Current tax | 61 | 89 | 55 |
| liabilities | | | |
+------------------------+------------------+------------------+------------------+
| Obligations under | - | 35 | 34 |
| finance leases | | | |
+------------------------+------------------+------------------+------------------+
| | | | |
+------------------------+------------------+------------------+------------------+
| Total current | 9,996 | 29,343 | 7,241 |
| liabilities | | | |
+------------------------+------------------+------------------+------------------+
| | | | |
+------------------------+------------------+------------------+------------------+
| Non-current | | | |
| liabilities | | | |
+------------------------+------------------+------------------+------------------+
| Deferred tax | 755 | 1,618 | 836 |
| liabilities | | | |
+------------------------+------------------+------------------+------------------+
| Obligations under | - | 64 | 52 |
| finance leases | | | |
+------------------------+------------------+------------------+------------------+
| | | | |
+------------------------+------------------+------------------+------------------+
| Total non-current | 755 | 1,682 | 888 |
| liabilities | | | |
+------------------------+------------------+------------------+------------------+
| | | | |
+------------------------+------------------+------------------+------------------+
| Total liabilities | 10,751 | 31,025 | 8,129 |
+------------------------+------------------+------------------+------------------+
| | | | |
+------------------------+------------------+------------------+------------------+
| EQUITY | | | |
+------------------------+------------------+------------------+------------------+
| Share capital | 168 | 167 | 167 |
+------------------------+------------------+------------------+------------------+
| Share premium | 15,716 | 15,658 | 15,716 |
+------------------------+------------------+------------------+------------------+
| Capital redemption | - | 2,708 | - |
| reserve | | | |
+------------------------+------------------+------------------+------------------+
| Merger reserve | 2,559 | 9,501 | 2,559 |
+------------------------+------------------+------------------+------------------+
| Fair value and other | 81 | 1,001 | 456 |
| reserves | | | |
+------------------------+------------------+------------------+------------------+
| Retained earnings | (1,752) | 4,246 | 1,225 |
+------------------------+------------------+------------------+------------------+
| | | | |
+------------------------+------------------+------------------+------------------+
| Parent company's | 16,772 | 33,281 | 20,123 |
| shareholders' equity | | | |
+------------------------+------------------+------------------+------------------+
| | | | |
+------------------------+------------------+------------------+------------------+
| Total equity and | 27,523 | 64,306 | 28,252 |
| liabilities | | | |
+------------------------+------------------+------------------+------------------+
Condensed Consolidated Statement of Changes in Equity
for the six months ended 30 June 2009
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| | Share | Share | Capital | Merger | Fair | Retained | Total |
| | capital | premium | redemption | Reserve | value | earnings | equity |
| | | | reserve | | and | | |
| | | | | | other | | |
| | | | | | reserves | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Balance at 1 January | 165 | 15,658 | 2,708 | 9,276 | 526 | 5,779 | 34,112 |
| 2008 | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Issue of share | 2 | - | - | 225 | - | - | 227 |
| capital | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Dividends paid | - | - | - | - | - | (593) | (593) |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Share-based payments | - | - | - | - | - | 470 | 470 |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Total comprehensive | - | - | - | - | 475 | (1,410) | (935) |
| income | | | | | | | |
| for the period | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Balance at 30 June | 167 | 15,658 | 2,708 | 9,501 | 1,001 | 4,246 | 33,281 |
| 2008 | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Dividends paid | - | - | - | - | - | (400) | (400) |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Transfer to share | - | 58 | - | (58) | - | - | - |
| premium | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Share-based payments | - | - | - | - | - | 645 | 645 |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Total comprehensive | - | - | - | - | 132 | (13,535) | (13,403) |
| income | | | | | | | |
| for the period | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Transfer to retained | - | - | (2,708) | (6,884) | (677) | 10,269 | - |
| earnings | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Balance at 31 | 167 | 15,716 | - | 2,559 | 456 | 1,225 | 20,123 |
| December 2008 | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Issue of ordinary | 1 | - | - | - | - | - | 1 |
| share capital | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Share-based payments | - | - | - | - | - | (632) | (632) |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Total comprehensive | - | - | - | - | (42) | (2,678) | (2,720) |
| income | | | | | | | |
| for the period | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Transfer on disposal | - | - | - | - | (333) | 333 | - |
| of subsidiary | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
| Balance at 30 June | 168 | 15,716 | - | 2,559 | 81 | (1,752) | 16,772 |
| 2009 | | | | | | | |
+----------------------+---------+---------+------------+---------+----------+----------+----------+
Condensed Consolidated Statement of Cash Flows
for the six months ended 30 June 09
+----------------------------------------+-------------+-------------+-------------+
| | Unaudited | Unaudited | Audited |
| | Six months | Six months | Year ended |
| | to | to | 31 December |
| | 30 June | 30 June | 2008 |
| | 2009 | 2008 | GBP'000 |
| | GBP'000 | GBP'000 | |
+----------------------------------------+-------------+-------------+-------------+
| Net cash used in operating activities | (4,116) | (4,386) | (7,151) |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Investing activities | | | |
+----------------------------------------+-------------+-------------+-------------+
| Interest received | 267 | 570 | 1,066 |
+----------------------------------------+-------------+-------------+-------------+
| Dividends received | 21 | 23 | 27 |
+----------------------------------------+-------------+-------------+-------------+
| Proceeds on disposal of | 1,043 | 825 | 1,106 |
| available-for-sale investments | | | |
+----------------------------------------+-------------+-------------+-------------+
| Purchases of available-for-sale | (1,595) | (450) | (578) |
| investments | | | |
+----------------------------------------+-------------+-------------+-------------+
| Purchases of property, plant and | (35) | (299) | (402) |
| equipment | | | |
+----------------------------------------+-------------+-------------+-------------+
| Purchase of subsidiary undertakings | - | (3,190) | (3,352) |
+----------------------------------------+-------------+-------------+-------------+
| Cash acquired with subsidiary | - | 730 | 729 |
| undertaking | | | |
+----------------------------------------+-------------+-------------+-------------+
| Cash divested with subsidiary | (95) | - | - |
| undertaking | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Net cash used in investing activities | (394) | (1,791) | (1,404) |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Financing activities | | | |
+----------------------------------------+-------------+-------------+-------------+
| Dividends paid | - | (593) | (993) |
+----------------------------------------+-------------+-------------+-------------+
| Capital element of finance leases | (25) | (12) | (25) |
| repaid | | | |
+----------------------------------------+-------------+-------------+-------------+
| Proceeds from issue of ordinary share | 1 | - | - |
| capital | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Net cash used in financing activities | (24) | (605) | (1,018) |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Net decrease in cash and cash | (4,534) | (6,782) | (9,573) |
| equivalents | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Cash and cash equivalents at beginning | 13,601 | 23,091 | 23,091 |
| of period | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Effect of foreign exchange rates | 26 | 83 | 83 |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------------+-------------+-------------+-------------+
| Cash and cash equivalents at end of | 9,093 | 16,392 | 13,601 |
| period | | | |
+----------------------------------------+-------------+-------------+-------------+
Notes to the Interim Condensed Financial Statements
+----+--------------------------------------------------------------+
| 1. | ACCOUNTING POLICIES |
+----+--------------------------------------------------------------+
The Interim Report is unaudited and does not constitute statutory accounts
within the meaning of section 435 of the Companies Act 2006.
IAS 1 (revised) requires the presentation of a statement of changes in equity as
a primary statement, separate from the income statement and statement of
comprehensive income. As a result, a condensed consolidated statement of changes
in equity has been included in the primary statements, showing changes in each
component of equity for each period presented.
The Group has adopted International Financial Reporting Standard 8 "Operating
Segments" for its financial statements for the year ending 31 December 2009.
IFRS 8 requires operating segments to be identified on the basis of internal
reports about components of the Group that are regularly reviewed by the Chief
Executive to allocate resources to the segments and to assess their performance.
Excepting the above, the accounting policies used in the preparation of the
Interim Report are consistent with those set out in the Annual Report and
Accounts for the year ended 31 December 2008.
The information for the year ended 31 December 2008 does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. A copy
of the statutory accounts for that year has been delivered to the Registrar of
Companies. The auditors' report on those accounts was not qualified, did not
include reference to any matters to which the auditors drew attention by way of
emphasis without qualifying the report, and did not contain statements under
section 237(2) or (3) of the Companies Act 1985.
The interim condensed financial statements will be circulated to all
shareholders by 2 October 2009 and will be available from the Company's
registered office at 30 Old Broad Street, London, EC2N 1HT and also in
accordance with Rule 20 of the AIM rules, on the Company's website at
www.astairegroup.co.uk.
+----+----------------------------------------------------------------------------+
| 2. | TAXATION |
+----+----------------------------------------------------------------------------+
The tax credit for the six months to 30 June 2009 reflects all the necessary
provisions for current tax, taking into account the availability of losses
brought forward, and movements in deferred tax with reference to the adjustments
necessary under IFRS. In arriving at the effective tax rate account has been
taken of the change in the rate of tax charged, and the disallowance of the cost
of share-based payments charged to the income statement. Current income tax
expense is recognised in these interim consolidated financial statements based
on management's best estimates of the annual income tax liability expected for
the full financial year.
+----+----------------------------------------------------------------------------+
| 3. | LOSS PER SHARE |
+----+----------------------------------------------------------------------------+
The calculation of the basic loss per ordinary share is based on the loss on
ordinary activities after tax and on the weighted average number of ordinary
shares in issue during the period. The calculation of diluted loss per ordinary
share is based on the basic loss per ordinary share adjusted to allow for the
issue of shares on the assumed conversion of all dilutive options and warrants.
Reconciliations of the loss and weighted average number of shares used in the
calculations are set out in the tables below.
Continuing operations
+-------------------+---------+--+-------------+--+---------+--+--+---------+--+-------------+--+------+--+
| | 6 months ended 30 June 2009 | 6 months ended 30 June 2008 |
+-------------------+------------------------------------------+---------------------------------------+
| | Loss | | Weighted | | Loss | | Loss | | Weighted | | Loss |
| | GBP'000 | | | | per | | GBP'000 | | | | per |
| | | | Average | | share | | | | Average | | share |
| | | | Number | | (pence) | | | | Number | | (pence) |
| | | | of | | | | | | of | | |
| | | | shares | | | | | | shares | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| Basic loss per | (2,482) | | 167,788,554 | | (1.48) | | (1,410) | | 165,031,899 | | (0.85) |
| ordinary share | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| Dilutive effect | - | | 141,831 | | | | - | | 139,516 | | |
| of securities | | | | | | | | | | | |
| -options and | | | | | | | | | | | |
| warrants | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| Dilutive loss per | (2,482) | | 167,930,385 | | (1.48) | | (1,410) | | 165,171,415 | | (0.85) |
| | | | | | | | | | | | |
| ordinary share | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+--+--+---------+--+-------------+--+------+--+
Continuing and discontinued operations
+-------------------+---------+--+-------------+--+---------+--+--+---------+--+-------------+--+------+--+
| | 6 months ended 30 June 2009 | 6 months ended 30 June 2008 |
+-------------------+------------------------------------------+---------------------------------------+
| | Loss | | Weighted | | Loss | | Loss | | Weighted | | Loss |
| | GBP'000 | | | | per | | GBP'000 | | | | per |
| | | | Average | | share | | | | Average | | share |
| | | | Number | | (pence) | | | | Number | | (pence) |
| | | | of | | | | | | of | | |
| | | | shares | | | | | | shares | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| Basic loss per | (2,678) | | 167,788,554 | | (1.60) | | (1,410) | | 165,031,899 | | (0.85) |
| ordinary share | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| Dilutive effect | - | | 141,831 | | | | - | | 139,516 | | |
| of securities | | | | | | | | | | | |
| -options and | | | | | | | | | | | |
| warrants | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| Dilutive loss per | (2,678) | | 167,930,385 | | (1.59) | | (1,410) | | 165,171,415 | | (0.85) |
| | | | | | | | | | | | |
| ordinary share | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+-----+---------+--+-------------+--+---------+
| | | | | | | | | | | | |
+-------------------+---------+--+-------------+--+---------+--+--+---------+--+-------------+--+------+--+
+----+----------------------------------------------------------------------------+
| 4. | DIVIDENDS PAID |
+----+----------------------------------------------------------------------------+
+--------------------------------------+--------------+------------+-------------+
| | Six months | Six months | Year Ended |
| | to | to | 31 December |
| | 30 June | 30 June | |
| | 2009 | 2008 | 2008 |
| | GBP'000 | GBP'000 | GBP'000 |
| | | | |
+--------------------------------------+--------------+------------+-------------+
| No dividends were paid in the period | - | 593 | 993 |
| to 30 June 2009. (30 June 2008: | | | |
| 0.36p per share, 31 December 2008: | | | |
| 0.24p per share) | | | |
+--------------------------------------+--------------+------------+-------------+
+----+----------------------------------------------------------------------------+
| 5. | ACQUISITION OF DOWGATE CAPITAL PLC |
+----+----------------------------------------------------------------------------+
On 20 July 2009 the Group announced that having received acceptances for 75.80
percent. of total voting rights, the offer for Dowgate Capital Plc was declared
wholly unconditional. By 28 August 2009 the Group had received acceptances for
93.74 percent. of total voting rights, and announced that the offer was closed
and that it intended to compulsorily acquire any remaining shares that had not
accepted the offer.
The details below are based on the estimated cost of acquiring 100 percent. of
Dowgate Capital Plc.
+------------------------------------------+------------+-------------+------------+
| | Book value | Fair value | Fair value |
| | GBP'000 | adjustments | GBP'000 |
| | | GBP'000 | |
+------------------------------------------+------------+-------------+------------+
| Net assets acquired: | | | |
+------------------------------------------+------------+-------------+------------+
| Property, plant and equipment | 197 | | 197 |
+------------------------------------------+------------+-------------+------------+
| Available-for-sale investments | 88 | | 88 |
+------------------------------------------+------------+-------------+------------+
| Trade and other receivables | 1,052 | | 1,052 |
+------------------------------------------+------------+-------------+------------+
| Cash and cash equivalents | 863 | | 863 |
+------------------------------------------+------------+-------------+------------+
| Trade and other payables | (706) | (161) | (867) |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| | 1,494 | (161) | 1,333 |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| Other intangibles | | | 1,305 |
+------------------------------------------+------------+-------------+------------+
| Goodwill | | | 682 |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| Total consideration | | | 3,320 |
+------------------------------------------+------------+-------------+------------+
| Satisfied by: | | | |
+------------------------------------------+------------+-------------+------------+
| Shares | | | 1,192 |
+------------------------------------------+------------+-------------+------------+
| Cash | | | 1,968 |
+------------------------------------------+------------+-------------+------------+
| Directly attributable costs | | | 160 |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| | | | 3,320 |
+------------------------------------------+------------+-------------+------------+
| Net cash outflow arising on acquisition | | | |
+------------------------------------------+------------+-------------+------------+
| Cash and directly attributable costs | | | (2,128) |
+------------------------------------------+------------+-------------+------------+
| Cash and cash equivalents acquired | | | 863 |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| | | | (1,265) |
+------------------------------------------+------------+-------------+------------+
+----+----------------------------------------------------------------------------+
| 6. | ACQUISITION OF RUEGG & CO LIMITED |
+----+----------------------------------------------------------------------------+
On 22 July 2009 a wholly owned United Kingdom registered subsidiary, Ruegg & Co
Limited, was acquired by the issue of 6.0 million Astaire Group Plc ordinary
shares of 0.1 pence each whose fair market value was deemed to be 5.25 pence per
share, and the payment of GBP334,000 in cash.
+------------------------------------------+------------+-------------+------------+
| | Book value | Fair value | Fair value |
| | GBP'000 | adjustments | GBP'000 |
| | | GBP'000 | |
+------------------------------------------+------------+-------------+------------+
| Net assets acquired: | | | |
+------------------------------------------+------------+-------------+------------+
| Property, plant and equipment | 3 | | 3 |
+------------------------------------------+------------+-------------+------------+
| Available-for-sale investments | 27 | 114 | 141 |
+------------------------------------------+------------+-------------+------------+
| Trade and other receivables | 154 | | 154 |
+------------------------------------------+------------+-------------+------------+
| Cash and cash equivalents | 180 | | 180 |
+------------------------------------------+------------+-------------+------------+
| Trade and other payables | (54) | | (54) |
+------------------------------------------+------------+-------------+------------+
| Current tax liabilities | (66) | | (66) |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| | 244 | 114 | 358 |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| Other intangibles | | | 174 |
+------------------------------------------+------------+-------------+------------+
| Goodwill | | | 134 |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| Total consideration | | | 666 |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| Satisfied by: | | | |
+------------------------------------------+------------+-------------+------------+
| Shares | | | 315 |
+------------------------------------------+------------+-------------+------------+
| Cash | | | 334 |
+------------------------------------------+------------+-------------+------------+
| Directly attributable costs | | | 17 |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| | | | 666 |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| Net cash outflow arising on acquisition | | | |
+------------------------------------------+------------+-------------+------------+
| Cash and directly attributable costs | | | (351) |
+------------------------------------------+------------+-------------+------------+
| Cash and cash equivalents acquired | | | 180 |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| | | | (171) |
+------------------------------------------+------------+-------------+------------+
+----+----------------------------------------------------------------------------+
| 7. | DISPOSAL OF INTEQ LIMITED |
+----+----------------------------------------------------------------------------+
On 3 June 2009 the Group completed the disposal of Inteq Limited, its Australian
corporate finance subsidiary. The disposal was effected as part of the Group's
strategy to cut costs and exit loss making businesses.
The results of the discontinued operations, which have been included in the
consolidated income statement, were as follows:
+----------------------------------------------------+------------+
| | GBP'000 |
+----------------------------------------------------+------------+
| | |
+----------------------------------------------------+------------+
| Total income | 210 |
+----------------------------------------------------+------------+
| Profit on disposal of available-for-sale | 44 |
| investments | |
+----------------------------------------------------+------------+
| Operating expenses | (450) |
+----------------------------------------------------+------------+
| | |
+----------------------------------------------------+------------+
| Loss on ordinary activities before taxation | (196) |
+----------------------------------------------------+------------+
| | |
+----------------------------------------------------+------------+
| Attributable tax expense | - |
+----------------------------------------------------+------------+
| | |
+----------------------------------------------------+------------+
| Loss on disposal of discontinued operations | (196) |
+----------------------------------------------------+------------+
A loss of GBP619,000 arose on the disposal of Inteq Limited as shown below:
+----------------------------------------------------+------------+
| | GBP'000 |
+----------------------------------------------------+------------+
| | |
+----------------------------------------------------+------------+
| Property, plant and equipment | 215 |
+----------------------------------------------------+------------+
| Available-for-sale investments | 375 |
+----------------------------------------------------+------------+
| Fair value through profit and loss investments | 232 |
+----------------------------------------------------+------------+
| Trade and other receivables | 159 |
+----------------------------------------------------+------------+
| Cash and cash equivalents | 95 |
+----------------------------------------------------+------------+
| Trade and other payables | (457) |
+----------------------------------------------------+------------+
| | |
+----------------------------------------------------+------------+
| | 619 |
+----------------------------------------------------+------------+
| | |
+----------------------------------------------------+------------+
| Loss on sale of subsidiary | (619) |
+----------------------------------------------------+------------+
| | |
+----------------------------------------------------+------------+
| Total consideration | - |
+----------------------------------------------------+------------+
| | |
+----------------------------------------------------+------------+
| Net cash outflow arising on disposal: | |
+----------------------------------------------------+------------+
| Cash consideration | - |
+----------------------------------------------------+------------+
| Cash and cash equivalents disposed of | (95) |
+----------------------------------------------------+------------+
| | |
+----------------------------------------------------+------------+
| | (95) |
+----------------------------------------------------+------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EELBLKKBLBBX
Evolve Capital (LSE:EVOL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Evolve Capital (LSE:EVOL)
Historical Stock Chart
From Jul 2023 to Jul 2024
