Interim Results
August 31 2006 - 3:02AM
UK Regulatory
RNS Number:2698I
Libertas Capital Group PLC
31 August 2006
FOR IMMEDIATE RELEASE 31 AUGUST 2006
LIBERTAS CAPITAL GROUP plc
("Libertas Capital" or "the Company")
Interim Results for the 6 months ended 30th June 2006
Libertas Capital Group plc (AIM: LBR), the financial services group, today
announces un-audited interim results for the six months ended 30th June 2006.
Highlights
Financial
*Revenue up 42% at #5.13m for H1 2006 (H1 2005: #3.61m). Revenue for the
full year of 2005 was #9.73m
*Pre tax profit before exceptional items of #0.67m for half year (H1
2005: #0.66m)
*Earnings per share (before exceptional items) for H1 2006 of 1.20 pence
(H1 2005: 1.20p)
*Earnings per share for H1 2006 of 0.62 pence (H1 2005: 1.20 pence)
*Net assets of #7.14m ( H1 2005: #5.87m)
Operational
*15 transactions completed in first half of the year
*Opening of Libertas Capital Asia based in Hong Kong, servicing the Asian
Region, particularly China
*Continued the improvement of our staffing needs, with some significant
recruitments
*Completed our first public market listing in the Nordic Region with the
IPO of Benchmark Oil and Gas AB
Jakob Kinde, Executive Chairman of Libertas Capital Group plc, said:
"We are pleased to report a good set of first half year results despite
difficult market conditions. We have continued to implement our strategy
including the opening of operations in Hong Kong to serve the growing markets of
Asia, particularly China.
Our strategy remains unchanged. We are constantly building our competence in our
core sectors namely Energy (renewable energy, oil and gas, natural resources and
oil services), Technology (software, services and telecoms) and Healthcare
within all our business operations and geographic areas where we see significant
opportunities. Hence we have continued to strengthen our human capital resources
in key geographic areas to capture many of these opportunities on a profitable
basis.
The Board looks forward to further successes for the full year."
For further information please contact:
Libertas Capital Group plc
Jakob Kinde, Executive Chairman +44 (0)20 7569 9650
Henry Okereke, Chief Executive
Buchanan Communications
Charles Ryland / Mary-Jane Johnson +44 (0)20 7466 5000
Notes to Editors
About Libertas Capital Group plc
Libertas Capital is a UK-based financial services firm offering its clients a
full range of dedicated independent Corporate Finance Advisory, Research and
Distribution services.
Corporate Finance services include advice on M&A, public and private fund
raising, private equity encompassing development capital, MBOs and MBIs,
valuation and exit strategy. In the Securities business Libertas Capital offers
research to corporate and institutional clients, via Equity Growth Research and
Libertas Capital Research, over a global distribution network. Libertas Capital
is focused on the small to mid cap market in the UK, Europe, the Nordic region,
Asia and the US, where the Group has gained widespread experience and developed
strong relationships.
Libertas Capital concentrates primarily on growth companies across a number of
industry sectors with a particular focus on Energy (renewable energy, oil and
gas, natural resources and oil services), Technology (software, services and
telecoms) and Healthcare.
Chairman's Statement
We are pleased to report that we achieved a good set of trading results in the
first half of this year, building upon the previous year's performance.
Summary of financial results
Revenue for H1 2006 was #5.13m which compares well with revenue of #3.61m for H1
2005. Profit before tax and exceptional items for the Group for the first half
was #0.67m and closing net assets were #7.14m compared with profit before tax
and net assets for the full year of 2005 of #2.20m and #6.88m respectively.
We have maintained our objective to trade profitably whilst at the same time
implementing our growth strategy and strengthening our human capital resources
to offer the full services which the demanding market place requires.
Libertas Capital Corporate Finance Limited
The business in London and Stockholm is growing in line with our strategy with
an increased number of mandates, including our first public market listing in
the Nordic Region with the successful IPO of Benchmark Oil and Gas AB.
Libertas Capital Securities Limited
We are continuing to strengthen this subsidiary in its key activity areas,
namely distribution and research both under the brand name of Libertas Capital
Research (institutionally focused research in our core sectors) and Equity
Growth Research (corporate sponsored research across a wide range of sectors).
This subsidiary has participated in all our transactions and successfully placed
transactions with a wide range of investors. It has also become the broker for a
number of different companies.
Libertas Capital Ventures Limited
We have built a very interesting portfolio with a number of holdings in
companies mainly involved in renewable and clean energy, including Aspen Clean
Energy plc ("Aspen"). In August 2006 we received cash of #3m in respect of a
partial share capital reduction by Aspen following the disposal of its trading
subsidiary.
Expansion into Asia and North America
We are also expanding into Asia managed from an office in Hong Kong. The focus
of the business will be primarily within Libertas Capital's core sectors, namely
Energy (renewable energy, oil and gas, natural resources and oil services)
Technology (software, services and telecoms) and Healthcare but will also
incorporate Real Estate and Consumer Goods. The
wholly owned subsidiary, Libertas Capital Asia Limited, has already been
established, with some key corporate mandates in place. This unit will offer
full corporate finance services for the markets in Asia, particularly China, to
complement those services provided by the Group in London and Stockholm.
In North America our wholly owned subsidiary, Cresta Libertas Capital ("CLC"),
will receive final notification of its NASD membership approval in early
September as well as activation of its SEC broker-dealer registration, enabling
CLC to offer a range of corporate finance advisory services in the growing and
important US market.
Outlook
Our strategy remains unchanged. We are constantly building our competence in our
core sectors namely Energy, Technology and Healthcare within all our business
operations and geographic areas where we see significant opportunities. Hence we
have continued to strengthen our human capital resources in key geographic areas
to capture many of these opportunities on a profitable basis.
Our business is continuing to progress well with key significant additions to
our team and a good transaction pipeline. The Board looks forward to further
successes for the full year.
Jakob Kinde
Executive Chairman
Consolidated Profit and Loss Account for the 6 months ended 30 June 2006
Un-audited Un-audited Audited
6 months 6 months 12 months
ended ended ended
Notes 30 June 2006 30 June 2006 31 December 2005
#000 #000 #000
Revenue - fees 5,135 3,606 9,734
Profit/Loss on trading investments
- ordinary 688 - -
- exceptional 2 (348) - -
Operating expenses (including
salaries and bonuses) (5,149) (2,942) (7,513)
Profit on ordinary activities before 326 664 2,221
interest
Analysed as:
Profit before interest and exceptional item 674 664 2,221
Loss on trading investments - exceptional (348) - -
item
Profit on ordinary activities before 326 664 2,221
interest
Interest receivable 55 5 25
Interest payable (15) (12) (45)
Profit on ordinary activities before 366 657 2,201
taxation
Tax on profit on ordinary activities 3 (110) (197) (704)
Profit on ordinary activities after 256 460 1,497
taxation ===== ==== ====
Earnings per share (pre exceptional) 4 1.20p 1.20p 3.75p
basic
Earnings per share - basic 4 0.62p 1.20p 3.75p
Earnings per share - diluted 4 0.51p 1.06p 3.22p
Consolidated Balance Sheet as at 30 June 2006
Un-audited Un-audited Audited
Notes 30 June 2006 30 June 2005 31 December 2005
#000 #000 #000
FIXED ASSETS
Intangible fixed assets - 821 988 826
goodwill
Tangible fixed assets 275 191 202
Fixed asset investments 2,772 3,118 5,886
3,868 4,297 6,914
CURRENT ASSETS
Debtors 2,334 1,330 1,655
Investments 6 4,256 2,747 2,249
Cash at bank and in hand 673 130 241
7,263 4,207 4,145
CREDITORS - amounts falling due 7
within one year (3,969) (2,558) (4,147)
NET CURRENT ASSETS/
(LIABILITIES) 3,294 1,649 (2)
Total Assets less Current 7,162 5,946 6,912
Liabilities
Creditors - amounts falling due (21) (76) (31)
after one year
NET ASSETS 7,141 5,870 6,881
CAPITAL AND RESERVES
Called up share capital 8 419 415 415
Share premium account 3,538 3,538 3,538
Consolidation reserve 586 612 586
Profit and loss account 2,598 1,305 2,342
SHAREHOLDERS' FUNDS -EQUITY INTERESTS 7,141 5,870 6,881
Consolidated Cash Flow Statement for the 6 months ended 30 June 2006
Un-audited Un-audited Audited
6 months 6 months 12 months
ended ended ended
Notes 30 June 2006 30 June 2005 31 December 2005
#000 #000 #000
Net cash outflows from operating 9 (1,416) (1,694) (3,241)
activities
Returns on investments and 40 (7) (20)
servicing of finance
Taxation paid (325) - -
Capital expenditure and financial (116) (31) (89)
investment
Fixed asset investments - net 85 - 2,038
receipt
Acquisitions - net cash acquired - 1,265 1,265
in subsidiary
Net cash outflow before management (1,732) (467) (47)
of liquid resources and financing
Management of liquid resources
Current asset investments - net 2,189 - -
receipt from sales and purchases
Financing
Capital element of finance lease (25) (23) (49)
payments
Increase/(Decrease) in cash in 432 (490) (96)
the period
Notes to the Accounts for the 6 months ended 30 June 2006
1.Financial Information
The interim financial information for the six months ended 30 June 2006 has been
prepared using policies consistent with those applied in the account for the
year ended 31 December 2005. Such information does not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985. The
financial information for the year ended 31 December 2005 has been extracted
from the statutory accounts to that date which have been reported on by the
Company's auditors, Mazars LLP, and delivered to the Registrar of Companies. The
report of the auditors was unqualified and did not contain a statement under
Section 237(2) or (3) of the Companies Act 1985.
2.Exceptional items
Exceptional items of #0.35m arise following the flotation of an overseas
technology company whereby Libertas Capital invested in shares; this charge
relates to the subsequent write down of that investment to current market value
as a result of a fundamental industry change.
3.Taxation
The tax charge for the period ended 30 June 2006 has been calculated by applying
the estimated tax rate for the current year ending 31 December 2006.
4.Earnings per share
The calculation of earnings per share is based on the following number of
shares:
6 months 6 months 12 months
ended ended ended
30 June 2005 30 June 2006 31 December 2005
Millions Millions Millions
Weighted average number of
shares:
For basic earnings per share 41.6 38.2 39.9
Effect of dilutive options 9.0 5.0 6.5
50.6 43.2 46.4
Notes to the Accounts (Contd)
5. FRS 20 Share based payments
Under the Libertas Capital Group Employee Benefit Trust rights over 8,464,683
ordinary shares were awarded during the year ended 31 December 2005 and
disclosed within that year's statutory accounts. Accordingly under FRS 20 'Share
Based Payments' no adjustment is required to the accounts for the period ended
30 June 2006 as the awards had been vested prior to the effective date of FRS
20, being 1 January 2006.
6. Current Asset Investments
At 30 June 2006 current asset investments amounted to #4.26m, following a
transfer of #3.02m from fixed asset investments. In August 2006 Libertas Capital
received #3.02m cash relating to its investment in Aspen Clean Energy plc
("Aspen") following a partial return of capital by Aspen as a result of the
disposal of its trading subsidiary. There is no profit impact arising from this
transaction.
7. Creditors
Creditors of #3.97m (2005 #2.56m) include a bank overdraft of #nil (2005
#0.28m).
8.Share Capital
During the period the Company issued 435,576 shares arising from the exercise of
rights over awards made under the Libertas Capital Group Share Incentive Plan.
9.Reconciliation of operating profit to operating cash flows
6 months 6 months 12 months
ended ended ended
30 June 2006 30 June 2005 31 December 2005
#000 #000 #000
Operating profit 326 664 2,221
Depreciation charges 43 28 74
Amortisation charges 5 30 10
Devaluation of current asset 395 - 140
investments
Profit on sale of investments (754) - -
Foreign exchange reserve - - (26)
(Increase)/Decrease in debtors (536) 259 60
(Decrease)/Increase in creditors (148) 238 1,600
Investments received as fees (747) (2,913) (7,320)
Net cash outflows from operating (1,416) (1,694) (3,241)
activities
Notes to the Accounts (Contd)
10. Analysis of changes in net funds
As at Cash Flows Other Non As at
1 Jan 2006 Cash Changes 30 June 2006
#000 #000 #000 #000
Cash at bank 241 432 - 673
Finance leases (81) 25 - (56)
Current asset 2,249 - 2,007 4,256
investments
2,409 457 2,007 4,873
Further copies of this report are available on the Company's website at
www.libertascapital.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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