Final Results
June 29 2007 - 10:30AM
UK Regulatory
Fundamental E Investments plc (the "Company" or "Fundamental")
Preliminary Results for the year to 30 September 2006
CHAIRMAN'S STATEMENT
Results
I am pleased to report that the Group's results for the year ended 30 September
2006 show a profit on ordinary activities before taxation of �51,000 (2005 -
loss of �1,544,000) on a turnover of �677,000 (2005 - �9,057,000). The profit
for the year is in the main attributable to the sales of the trading assets of
Kilsyth Property Developments Limited (formerly Wilson & Garden Limited),
recoveries made in respect of subsidiaries disposed of in previous years and
the forfeiture of shares previously issued to satisfy the purchase of software
licences.
As the directors are intent on growing the company any internally generated
cash is being used for this purpose and as such no dividend is being declared
in these results (2005 - 0p per share).
On 5 December 2005 the Group disposed of the trade of its loss making Wilson
and Garden subsidiary, yielding a book profit of �241,000. During the year the
Group was also able to release provisions of �227,000 in respect of guarantees
given against former subsidiaries bank facilities.
On 26 January 2006 the Group concluded new banking facilities with the
Clydesdale Bank, enabling it to develop its site in Kilsyth, Scotland. Planning
approval for the development of 72 apartments was granted on 14 March 2006. The
first of two options over adjoining property was exercised in October 2006.
On 2 August 2006 various warrant holders exercised warrants over 140,400,000
new Ordinary `A' shares in the Company with the proceeds amounting to �175,500.
Financial Position
As at 30 September 2006 the Group had cash resources of �180,000. At the same
date the Group had drawn down �465,000 against its Development Loan facility
with the Clydesdale Bank.
Strategy
The strategy of the Group is to continue to develop the site at Kilsyth, and
other suitable property opportunities as they become available and to invest in
small and medium sized technology led, and other businesses in the industrial
sector in Europe and Africa which could benefit from access to capital markets
using an AIM listed parent company.
Current Trading
The Group's current business activity is to develop its wholly owned property
site in Kilsyth. The tenant on our Kilsyth site vacated the premises at the end
of April 2007 which has now allowed the site development to move forward. It is
planned that the demolition of the current buildings on the site be started in
July 2007 and that construction work be commenced in October 2007. It will be
pleasing to see this development start and see the profit potential of the site
realised in what is an appreciating Scottish property market.
Using the considerable property expertise within the board other property
opportunities are being considered and if found to offer good returns will be
pursued.
Up until the end of April 2007 the Group continued to receive rental income
from the purchasers of the Wilson & Garden business from their occupation of
the Kilsyth site.
Forfeiture of Issued Shares and Change in Articles
In last year's Chairman's statement I detailed the board's intention to impose
a share forfeiture on Castell Trading Investment, SL, in respect of inadequate
services provided to the Group. I can confirm that the Company's Articles were
altered to allow such a forfeiture and on 21 June 2006 46,020,918 Ordinary `A'
shares were cancelled.
Finally, I would like to take this opportunity to thank our shareholders for
their support at this time. This is particularly relevant since on 27 March
2007 the Company's shares were suspended as it was unable to issue its annual
financial statements within the required timeframe. The Board regrets this
inconvenience to shareholders. We do not anticipate a further occurrence of
this nature.
Stephen Thomson
Chairman
29 June 2007
Consolidated Profit and Loss Account
for the year ended 30 September 2006
Year ended Year ended
30 30 September
September 2005
2006
�'000 �'000
Turnover
Continuing operations 165 -
Discontinued operations 512 9,057
677 9,057
Cost of sales (333) (6,162)
Gross profit 344 2,895
Distribution costs (20) (275)
Administrative expenses (511) (4,138)
Operating loss
Continuing operations (226) (585)
Discontinued operations 39 (933)
(187) (1,518)
Exceptional items
Profit on sale of operations 241 103
Surplus on forfeiture of 46 -
shares
Net interest payable (49) (129)
Profit/(loss) on ordinary
activities
before taxation 51 (1,544)
Taxation on loss on ordinary
activities - -
Profit/(loss) on ordinary
activities
After taxation 51 (1,544)
Minority interest - (70)
Profit/(loss) for the 51 (1,614)
financial year
Basic Profit/(loss) per share 0.005p (0.38)p
Diluted Profit/(loss) per 0.005p (0.35)p
share
Consolidated Balance Sheet
At 30 September 2006
As at As at
30 30
September September
2006 2005
�'000 �'000 �'000 �'000
Fixed assets
Tangible assets 664 732
664 732
Current assets
Stocks - 286
Debtors 149 811
Cash at bank and in hand 180 219
329 1,316
Creditors: amounts falling
due
within one year (755) (1,609)
Net current liabilities (426) (293)
Total assets less current 238 439
liabilities
Creditors: amounts falling
due
after more than one year - (155)
Provisions for liabilities - (227)
and charges
238 57
Capital and reserves
Called up share capital 3,714 3,619
Share premium account 9,997 9,962
Merger reserve 750 750
Other reserve 46 -
Profit and loss account (14,269) (14,274)
Equity shareholders' funds 238 57
Cashflow Statement for the year ended
30 September 2006
2006 2005
�'000 �'000
Operating profit/(loss) after 100 (1,415)
exceptional items
Depreciation 46 286
Profit on disposal of subsidiary - (103)
undertakings
Loss on sale of tangible fixed assets 106 48
Decrease in stocks 286 111
Decrease/(increase) in debtors 662 (362)
(Decrease)/increase in creditors (1,260) 507
Decrease in provisions (227) (413)
Net cash outflow from operating (287) (1,341)
activities
Net cash outflow from returns on
investments
and servicing of finance (49) (129)
Taxation - (21)
Net cash (outflow)/inflow from capital
expenditure
and financial investment (84) 38
Net cash inflow from acquisitions and - 416
disposals
Cash outflow before financing (420) (1,037)
Net cash inflow from financing 130 769
(Decrease)/increase in cash (290) (268)
Reconciliation of Movements in Shareholders' Funds
for the year ended 30 September 2006
2006 2005
�'000 �'000
Profit/(loss) for the year 51 (1,614)
Net issue of shares 130 868
Net increase/(decrease) in 181 (746)
shareholder's funds
Opening equity shareholders' funds 57 803
Closing equity shareholders' funds 238 57
Notes to the Preliminary Announcement
For the year ended 30 September 2006
1. The preliminary announcement has been prepared in accordance with
applicable accounting standards and under the historical cost convention.
The principal accounting policies of the group have remained unchanged from
those set out in the group's 2005 annual report and accounts.
2. The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in section 240 of the Companies
Act 1985. The summarised balance sheet at 30 September 2006 and the
summarised profit and loss account, summarised cash flow statement and
associated notes for the year then ended have been extracted from the
Group's 2006 statutory financial statements upon which the auditors'
opinion is qualified on the basis of the limitation in scope. This arises
from the lack of availability of accounting records for the businesses and
subsidiaries disposed by the group during the year and preceding year.
Those financial statements have not yet been delivered to the registrar of
companies.
3. There is no provision for corporation tax on the basis that no liability
arose in the year.
4. The Directors are not able to recommend the payment of a dividend.
5. The basic profit (loss) per share is based on profits (losses) attributable
to ordinary shareholders of approximately �51,000 (2005 - Loss �1,614,000)
divided by the weighted average number of shares in issue during the period
of 1,007,342,136 (2005 - 426,541,014).
6. The Annual Report and Accounts will be mailed to registered shareholders at
their registered address and from the date of release copies of the Annual
Report will be made available to the public free of charge for one month at
the Company's registered office, Birketts LLP, 16-18 Queen Street, Norwich,
NR2 4SQ, at the offices of City Financial Associates Limited, Pountney Hill
House, 6 Laurence Pountney Hill, London, EC4R 0BL.
Contact
Liam Murray, Nominated Adviser
City Financial Associates Limited
Tel 020 7090 7800
END
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