RNS Number:3149E
Libertas Capital Group PLC
24 September 2007
For immediate release 24th September 2007
LIBERTAS CAPITAL GROUP plc
("Libertas Capital" or "the Company")
Interim Results for the 6 months ended 30th June 2007
Libertas Capital Group plc (AIM: LBR), the financial services group, today
announces un-audited interim results for the six months ended 30th June 2007.
Highlights:
Financial
* Revenue up 21% at #6.21m for H1 2007 (H1 2006: #5.13m). Revenue for the full
year of 2006 was #11.86m
* Pre tax profit before share based payments/exceptional items of #0.05m for
half year (H1 2006: #0.73m)
* Earnings per share (pre exceptional items) for H1 2007 of 0.08 pence (H1
2006: 1.23 pence)
* Earnings per share for H1 2007, after share based payments and exceptional
items, of (0.82) pence (H1 2006: 0.65 pence)
* Net assets before Treasury shares of #7.84m ( H2 2006: #7.71m)
Operational:
* 14 transactions completed in first half of the year, including M&A, private
funding and IPOs
* Continued strengthening of our staffing needs
* Completed final phase of developing platform of overseas offices to offer
international reach to our clients
Jakob Kinde, Executive Chairman of Libertas Capital Group plc, said:
"We are pleased with the underlying performance of the business in this first
half given the challenging markets. Our Revenue shows a creditable increase year
on year. We have continued to implement our strategy and are now able to offer
our full service capability in the UK, Europe, North America, Asia and the
Middle East which are growing and important geographical markets.
"We look forward to further success in 2007."
For further information please contact:
Libertas Capital Group plc
Jakob Kinde, Executive Chairman +44 (0)20 7569 9650
Henry Okereke, Chief Executive
Grant Thornton
Fiona Owen +44 (0)20 7383 5100
Buchanan Communications
Charles Ryland / Mary-Jane Johnson +44 (0)20 7466 5000
Notes to Editors
About Libertas Capital Group plc
Libertas Capital is an international financial services firm offering its
clients a full range of dedicated independent Corporate Finance Advisory,
Research and Distribution services.
Corporate Finance services include investment bankers with substantial depth of
European M&A and general corporate finance experience, as well as entrepreneurs
and industrial professionals with extensive experience and expertise in their
particular fields, having completed in excess of US$100 billion in transactions.
In our research and distribution services we offer our clients a dedicated
research capability with deep industry knowledge in our core sectors - Renewable
Energy, Energy (oil and gas, oil services, natural resources) and Healthcare
Industries - satisfying the needs of both our corporate and institutional
clients.
Our extensive distribution network covers UK, European, Asian, Middle Eastern
and US institutional clients.
Our business is based on core values and strengths which we believe both
differentiate Libertas Capital from its competitors and give us a competitive
advantage. We aim to provide a high level of customer service that will result
in long term client relationships based on the principles of openness,
innovation and creativity.
Chairman's Statement
We are pleased to report that Libertas Capital 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 2007 was #6.21m which compares well with revenue of #5.13m for H1
2006. Profit before share based payments and tax for the Group for the first
half was #0.05m and closing net assets before deducting Treasury shares were
#7.84m compared with profit before tax and net assets for H1 2006 of #0.38m and
#7.98m respectively. During H1 2007 the Company bought back a further 721,149
shares at a cost of #0.24m and transferred them to Treasury Shares - these now
amount to 4,383,949 shares at a cumulative cost of #1.26m. In these half year
results, in line with industry experience we have included a non cash provision
of #0.57m relating to share based payments in accordance with IFRS 2.
We have succeeded in 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 London
The business in London continues to develop in line with our strategy.
We are continuing to strengthen the distribution and research offering 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).
We have successfully placed transactions with a wide range of investors on a
global basis and are Nomad and broker for a number of different companies.
We are now recognised as an established service provider within the industry and
in a recent survey by the Times we were rated as one of the top 3 brokers within
the AIM market.
Libertas Capital Nordic
Our Nordic operation is developing well with the recent appointment of Hakan
Wallin as CEO and further strengthening of the team.
Libertas Capital Dubai
Libertas Capital (Dubai) Limited ("LCD") received its full regulatory licence
from the Dubai Financial Services Authority in late 2006 and is also a sponsor
on the Dubai International Financial Exchange (DIFX). LCD offers full corporate
finance, agency funding and research services covering the markets in the Middle
East and the Indian sub continent to complement services provided by the Group.
Libertas Capital Asia
We have expanded into Asia managed from an office in Hong Kong. The focus of
the business is primarily within Libertas Capital's core sectors, namely
Renewable Energy, Energy (oil and gas, oil services and natural resources) and
Healthcare. We have also broadened our sector interests in Real Estate and
Consumer Goods. Libertas Capital Asia Limited which has a full regulatory
licence has some key corporate mandates in place. This unit offers full
corporate finance services for the markets in Asia, particularly China, to
complement those services provided by the Group.
Libertas Capital US
In North America our wholly owned subsidiary, Libertas Capital Inc, received its
full licence in late 2006, enabling it to offer a range of corporate finance
advisory services in the growing and important US market.
Outlook
Our strategy remains unchanged. We are continuing to build our expertise in our
core sectors - namely Renewable Energy, Energy (oil and gas, oil services and
natural resources) 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.
Our business is continuing to progress well with some exciting mandates in our
pipeline. The Board looks forward to further progress in the full year.
Jakob Kinde
Executive Chairman
Consolidated Income Statement
for the 6 months ended 30 June 2007
Notes Un-audited Un-audited Audited
6 months ended 6 months ended 12 months
30 June 2007 30 June 2006 ended
31 December
2006
#000 #000 #000
Revenue - fees 6,209 5,135 11,860
Profit/Loss on trading 501 688 1,137
investments
- ordinary
- exceptional - (348) (348)
Operating expenses
(including salaries and
bonuses) (6,682) (5,134) (11,903)
Operating expenses -
share based payments 2 (575) - -
---------- ---------- -----------
Profit/(loss) before
financing (547) 341 746
Finance income 259 55 169
Finance costs (237) (15) (57)
Profit/(loss) before tax (525) 381 858
---------- ---------- -----------
Analysed as:
Profit before adjustments 50 729 2,029
Exceptional item - loss - (348) (348)
on trading investments
Discontinued activities - - (823)
Share based payments (575) - -
2
Profit/(loss) before tax (525) 381 858
-------------------------- ---------- ---------- -----------
Tax on profit/(loss) 3 158 (110) (252)
Profit/(loss) for the
period (367) 271 606
====== ====== ======
Earnings per share (pre
share based payments and
exceptional ) -basic 4 0.08p 1.23p 3.36p
Earnings per share -
basic 4 (0.82p) 0.65p 1.43p
Earnings per share -
diluted 4 (0.72p) 0.54p 1.23p
Consolidated Balance Sheet
as at 30 June 2007
Notes Un-audited Un-audited Audited
30 June 2007 30 June 2006 31 December
2006
#000 #000 #000
NON CURRENT ASSETS
Goodwill 825 825 825
Property, plant and
equipment 686 275 273
Available for sale
investments 3,680 3,492 3,276
--------- --------- ---------
5,191 4,592 4,374
--------- --------- ---------
CURRENT ASSETS
Trade and other
receivables 3,843 2,335 3,085
Available for sale
investments 5 680 4,378 1,537
Cash and cash equivalents 808 673 1,840
---------- -------- ---------
5,331 7,386 6,462
---------- -------- ---------
CURRENT LIABILITIES (3,253) (3,990) (4,144)
Trade and other payables (686) - -
Bank loan
--------- -------- ---------
(3,939) (3,990) (4,144)
NET CURRENT ASSETS 1,392 3,396 2,318
--------- ------- ---------
NET ASSETS 6,583 7,988 6,692
========= ======= ========
CAPITAL AND RESERVES
Share capital 6 469 419 438
Share premium account 3,605 3,538 3,605
Consolidation reserve 619 586 619
Other reserves - 842 106
Retained earnings 7 3,150 2,603 2,942
Treasury shares (1,260) - (1,018)
--------- ------- ---------
SHAREHOLDERS' FUNDS
-EQUITY INTERESTS 6,583 7,988 6,692
======== ======== ========
Consolidated Cash Flow Statement
for the 6 months ended 30 June 2007
Notes Un-audited Un-audited Audited
6 months ended 6 months ended 12 months
30 June2007 30 June 2006 ended
31 December
2006
#000 #000 #000
Cash used in operations 8 (1,735) (1,416) (2,946)
Net interest received 22 40 112
Taxation paid (805) (325) (328)
_______ _______ _______
Net cash utilised by
operations (2,518) (1,701) (3,162)
Investing activities (564) (116) (179)
Purchase of property, plant and
equipment
Fixed asset investments - net
receipt - 85 3,710
Net proceeds from available
for sale investments 1,630 2,189 2,229
_______ _______ _______
Net cash generated by
investing activities 1,066 2,158 5,760
Cash flows from financing activities
Shares issued for cash - - 69
Bank loans 686 - -
Repayment of obligations
under finance leases (24) (25) (50)
Purchase of treasury shares (242) - (1,018)
_______ _______ _______
Net cash generated/(utilised)
by financing activities 420 (25) (999)
_______ _______ _______
Net(Decrease)/Increase in
cash and cash equivalents (1,032) 432 1,599
_______ _______ _______
Notes to the Accounts for the 6 months ended 30 June 2007
1. Financial Information
The interim report which is the responsibility of the Directors and has not been
audited was approved by the Directors on 21 September 2007. The next annual
financial statements for the year ending 31 December 2007 will be prepared in
accordance with International Financial Reporting Standards (IFRS). Accordingly
the interim financial information in this report has been prepared using
accounting policies consistent with IFRS.
The financial information for the year ended 31 December 2006 set out in this
interim report does not comprise the Group's statutory accounts within the
meaning of Section 240 of the Companies Act 1985. The financial information for
the year ended 31 December 2006, which were prepared under UK GAAP, has been
extracted from the statutory accounts to that date which have been reported on
by the Company's auditors, 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.
The financial information for the six months ended 30 June 2007 and 30 June 2006
is unaudited.
2. Share based payments
In the six months ended 30 June 2007 a charge of #0.57m arose within operating
expenses, being the fair value of awards granted and vested over 2,301,125
ordinary shares, in accordance with IFRS 2 'Share Based Payments'. There is no
cash effect to this transaction.
3. Taxation
The tax charge for the period ended 30 June 2007 has been calculated by applying
the estimated tax rate for the current year ending 31 December 2007.
4. Earnings per share
The calculation of earnings per share is based on the following number of
shares:
6 months ended 6 months ended 12 months
30 June 2007 30 June 2006 ended
31 December
2006
Millions Millions Millions
Weighted average number of shares:
For basic earnings per share 44.6 41.6 42.3
Effect of dilutive options 6.2 9.0 7.0
-------- -------- --------
50.8 50.6 49.3
======= ======== ========
Notes to the Accounts (Contd)
5. Current Asset Investments available-for-sale
At 30 June 2006 current asset investments available-for-sale amounted to #4.38m,
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 was no profit impact arising
from this transaction.
6.Share Capital
During the period the Company issued 3,138,266 shares arising from the exercise
of rights over awards made under the Libertas Capital Group Share Incentive
Plan. These awards were granted in the year ended 31 December 2005 and vested
prior to 1 January 2006.
7.Reserves
Retained earnings include #0.57m relating to the provision in respect of share
based payments. Other reserves include the revaluation of available for sale
investments; this revaluation had been fully realised by 30 June 2007.
8.Cash Utilised by Operations
6 months ended 6 months ended 12 months
30 June 2007 30 June 2006 ended
31 December
2006
#000 #000 #000
Profit/(loss) before financing (547) 341 746
Share based payment 575 - -
Depreciation charges 150 43 108
Revaluation/profit of disposal
of available- for -sale
investments (427) (359) (789)
Foreign exchange reserve 26 (10) 28
Increase in debtors (580) (536) (1,261)
Decrease in creditors (77) (148) (66)
Investments received as fees (855) (747) (1,712)
--------- --------- --------
Cash utilised by operations (1,735) (1,416) (2,946)
========= ========= ========
Notes to the Accounts (Contd)
9. Transition to IFRS
The Group reported under UK GAAP in its previously published financial
statements for the year ended 31 December 2006.
The analysis below shows a reconciliation of equity and profits as reported
under UK GAAP as at 31 December 2006 to the revised equity and profits under
IFRS as reported in these financial statements.
Reconciliation of Equity as at as at
31 December 30 June 2006
2006
#000 #000
Equity shareholders funds under UK GAAP 6,578 7,141
Adjustments:
Goodwill 8 5
Available for sale investments (note c) 106 842
------- -------
Shareholders funds under IFRS 6,692 7,988
======= =======
Reconciliation of Profit
Reconciliation of Profit for the year ended December 2006 #000
Profit before financing 732
Foreign Exchange (note a) 6
Goodwill (note b) 8
-------
Restated under IFRS 746
=======
Reconciliation of Profit for the six months ended 30 June 2006 #000
Profit before financing 326
Foreign Exchange 10
Goodwill 5
-------
Restated under IFRS 341
=======
Notes to the Accounts (Contd)
Explanation of adjustment to profit
a) Foreign Currencies
Under UK GAAP the profit and loss accounts of foreign subsidiaries were
converted to pounds sterling for consolidation purposes at the year end rate.
Under IFRS income and expenses have been translated at average rates for the
period. This change has resulted in an increase in group profits for the half
year to 30 June 2006 and for the full year to 31 December 2006 of #10,000 and
#6,000 respectively.
b) Goodwill
Under UK GAAP, capitalised goodwill was amortised over its useful economic life.
Under IFRS, this goodwill is no longer amortised but is tested at least
annually for impairment. The impairment tests carried out by the Group have
identified no impairment loss and amortisation provided under UK GAAP has been
reversed. The adjustments to profits relating to the reversal of amortisation,
amounts to #8,000 for the year ended 31 December 2006 and #5,000 for the six
months ended 30 June 2006.
c) Available for Sale Investments
Available for sale investments are initially measured at cost. At subsequent
reporting dates they are measured at fair value or cost where fair value is not
readily ascertainable. Gains and losses arising from change in fair value are
recognised directly in equity until the investment is disposed of or is
determined to be impaired, at which time the accumulative gain or loss
recognised previously in equity is included in the income statement for the
period. This revaluation reserve had been realised by 30 June 2007, with the
resultant realised profit on disposal included within the income statement.
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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