RNS Number : 6854E
Libertas Capital Group PLC
30 September 2008
The 'Interim Results' announcement released today at 12:00pm under RNS No 6603E has been reformatted.
All material details remain unchanged.
The full text is shown below.
LIBERTAS CAPITAL GROUP plc
("Libertas Capital" or "the Company")
Interim Results for the 6 months ended 30th June 2008
Libertas Capital Group plc (AIM: LBR), the financial services group, today announces
un-audited interim results for the six months ended 30th June 2008.
Highlights
Financial
* Revenue �3.2m for H1 2008 (H1 2007: �6.2m).
* Post tax loss before share based payments of �2.5m for half year (H1 2007:
profit of �0.1m); post tax loss after share based payments of �3.2m (H1 2007
: loss of �0.4m)
* Earnings per share for H1 2008 loss of (6.68) pence (H1 2007: 0.82 pence)
* Net assets before Treasury and EBT shares of �6.5m (31 Dec 2007: �10.1m)
* Fundraising of �3.3m through equity and equity linked debt completed
* Pro forma net assets before Treasury and EBT shares of �9.8m after the
recent fundraising including the equity linked debt
Operational
* Completion of a number of private and public funding transactions in first
half of the year despite poor market conditions
* Rationalisation programme implemented resulting in reduction of some 20% in
head count and other cost savings
* Dubai office is now fully operational and post the half year we have closed
our offices in Stockholm and Los Angeles, whilst moving our US operations to
New York
* Current healthy pipeline of mandated transactions
Jakob Kinde, Group Managing Director of Libertas Capital Group plc, said:
"Like many companies in the financial sector, we have been adversely impacted by the credit crunch and resulting contraction of
business. As a result we have suffered losses in this first half year. We are disappointed with the performance of the business in this
first half and have taken, and continue to take, significant steps to reduce our costs and strengthen our balance sheet. In August we raised
�3.3m as set out in a circular to shareholders on 12 August 2008. Our strategy of being able to offer a full service capability in the UK,
Europe, North America, Asia and the Middle East which are important geographical markets, leave us better placed than many to execute a
reasonable level of business in tough markets and well placed to take advantage of the upturn when the global markets improve."
For further information please contact:
Libertas Capital Group plc +44 (0)20 7569 9650
Jakob Kinde, Group Managing Director
Roger Barlow, Non-executive Chairman
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/international 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 (including oil and gas and natural resources), Infrastructure, Real Estate, Healthcare, Technology and
Telecoms. 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.
Review of Half Year
In line with the rest of the market, we have experienced a difficult first half. We are working hard on an improvement in the second
half and beyond, building on the infrastructure and underlying strength of our business.
Summary of Financial Results
Revenue for H1 2008 was �3.17m compared with revenue of �6.21m for H1 2007. Post tax loss before share based payments for the Group for
the first half was �2.5m and a post tax loss after share based payments of �3.2m compared with H1 2007 of a profit of �0.1m and a loss of
�0.4m respectively. Net assets before deducting Treasury and EBT shares were �6.5m compared with �7.8m in H1 2007. In these half year
results, in line with industry experience we have included a non cash provision of �1.04m relating to share based payments in accordance
with IFRS 2.
We are disappointed with these results and have undertaken significant cost reductions, including reducing headcount by 20% and closing
our offices in Stockholm and Los Angeles. Additionally, since these results, we have put in place additional funding of �3.3m for the
company and continue to look for further opportunities to strengthen our balance sheet. On a pro forma basis, net assets before deducting
Treasury and EBT shares would be �9.8m, including the equity linked debt.
We believe that our business is fundamentally strong and that the infrastructure we have built will assist us in executing business in
these difficult times. We have a current healthy pipeline of mandated transactions. In particular, we expect to see positive contributions
from Dubai this year and to develop our New York office in 2009.
Outlook
Our underlying strategy remains unchanged. We are continuing to capitalise on our expertise in our core sectors - namely Renewable
Energy, Energy (including oil and gas and natural resources) Infrastructure, Real Estate, Healthcare, Technology and Telecoms - within all
our business operations and geographic areas where we see significant opportunities. Hence we will continue to selectively strengthen our
human capital resources in key geographic areas/sectors whilst, at the same time, reducing costs where possible.
We continue to generate new mandates and believe that whilst the remainder of 2008 will continue to be challenging, we expect to execute
a reasonable level of business and enhance our performance as and when the global markets improve.
Jakob Kinde
Group Managing Director
Libertas Capital Group Plc
Interim consolidated condensed income statement
for the six-month period ended 30 June 2008
Note UnauditedSix- UnauditedSix- AuditedYear
monthperiod ended30 monthperiod ended30 ended31December
June 2008�000 June 2007�000 2007�000
Revenue - fees 3,173 6,209 18,318
Gain on trading investments 283 501 355
Mark to market loss on trading (201) - -
investments
Operating expenses (including (6,451) (6,682) (15,742)
salaries and bonuses)
Operating expenses - share 5 (1,044) (575) (945)
based payments
--------- -------- --------
(Loss) / profit for the period (4,240) (547) 1,986
before financing
--------- -------- ---------
Interest income 406 259 774
Interest expenses (479) (237) (593)
--------- -------- ---------
(Loss) /profit before tax (4,313) (525) 2,167
Taxation 9 1,106 158 (651)
--------- --------- ---------
Net (loss)/profit for the (3,207) (367) 1,516
period
===== ===== =====
Earnings per share
Basic 11 (6.68p) (0.82p) 3.39p
Diluted 11 (5.81p) (0.72p) 2.88p
Libertas Capital Group Plc
Interim consolidated condensed balance sheet
At 30 June 2008
Unaudited Unaudited Audited
Note 30 June 2008 30 June 2007 31 December 2007
�000 �000 �000
Assets
Intangible assets - goodwill 2,285 825 2,285
Property and equipment 10 1,453 686 1,447
Available-for-sale investments 3,655 3,680 2,525
Deferred tax asset 448 - 318
--------- --------- ---------
Total non-current assets 7,841 5,191 6,575
--------- --------- ---------
Trade and other receivables 3,651 3,843 4,316
Investments held for trading 851 680 5,458
Cash and cash equivalent 1,073 808 927
Assets held for sale 173 - 206
--------- --------- ---------
Total current assets 5,748 5,331 10,907
--------- --------- ---------
Total assets 13,589 10,522 17,482
===== ===== =====
Equity
Share capital 8 549 469 473
Share premium account 3,605 3,605 3,605
Consolidation reserve 619 619 619
Retained earnings 1,879 3,150 5,395
Currency translation reserve 51 - -
Investment revaluation reserve (180) - -
Treasury shares 7 (110) (1,260) (1,260)
Shares held by EBT (686) - (686)
--------- --------- ---------
Total equity 5,727 6,583 8,146
--------- --------- ---------
Liabilities
Bank borrowings 2,854 686 2,309
Trade and other payables 3,996 3,253 5,614
Current tax liabilities - net 1,012 - 1,413
--------- --------- ---------
Total current liabilities 7,862 3,939 9,336
--------- --------- ---------
Total equity and liabilities 13,589 10,522 17,482
===== ===== =====
Libertas Capital Group Plc
Interim consolidated condensed statement of cash flows (un-audited)
For the six-month period ended 30 June 2008
Unaudited Unaudited Audited
Six-month Six-month Year-ended
period ended period ended 31 December
30 June 2008 30 June 2007 2007
Cash flows from operating �000 �000 �000
activities
Net (loss)/profit before (4,240) (547) 1,986
financing
Adjustments for non-cash items
Share based payment 1,044 575 945
Depreciation 213 150 199
Profit on disposal of (283) (427) (355)
investments
Mark to Market loss on 201 - -
investments
Foreign exchange reserve 51 26 -
Net interest (paid)/received (73) 22 181
---------- ---------- ----------
Cash flows from operating
activities before
working capital changes (3,087) (201) 2,956
Change in trade and other 473 (580) (1,717)
receivables
Change in trade and other (1,618) (77) 2,346
payables
Investments received as fees (153) (855) (5,539)
---------- ---------- ----------
(4,385) (1,713) (1,954)
Tax paid (172) (805) (805)
---------- ---------- ----------
Net cash used in operating (4,557) (2,518) (2,759)
activities
---------- ---------- ----------
Cash flows from investing
activities
Acquisition of property and (219) (564) (1,374)
equipment
Net proceeds from sale of 3,607 1,630 1,251
investments
---------- ---------- ----------
Net cash generated from/(used 3,388 1,066 (123)
in) investing activities
---------- ---------- ----------
Cash flows from financing
activities
Bank loans received - 686 686
Repayment of obligation under - (24) (31)
finance lease
Purchase/(sale) of treasury 770 (242) (242)
shares
Purchase of shares by EBT - - (686)
---------- ---------- ----------
Net cash generated from/(used in) financing 770 420 (273)
activities
---------- ---------- ----------
Net decrease in cash and cash (399) (1,032) (3,155)
equivalents
Cash and cash equivalents at (1,382) 1,840 1,773
the beginning of the period
---------- ---------- ----------
Cash and cash equivalents at (1,781) 808 (1,382)
the end of the period
===== ====== ======
Cash and cash equivalents at the end of the period comprises
Cash at bank 1,073 808 927
Bank borrowings (2,854) - (2,309)
--------- ---------- ----------
(1,781) 808 (1,382)
====== ====== ======
Libertas Capital Group Plc
Interim consolidated condensed statement of changes in equity
for the six-month period ended 30 June 2008
Share Share Consolidation Retained Treasury/ Investment Other
capital premium reserve earnings EBT shares rev reserve reserve Total
�000 �000 �000 �000 �000 �000 �000 �000
At 1 January 2007 438 3,605 619 2,942 (1,018) - 106 6,692
Net loss for the period - - - (367) - - - (367)
Shares issued 31 - - - - - - 31
Treasury shares acquired - - - - (242) - - (242)
Share based payments reserve - - - 575 - - - 575
Realisation of assets held for - - - - - - (106) (106)
sale
--------- --------- --------- --------- --------- --------- --------- ---------
At 30 June 2007 (unaudited) 469 3,605 619 3,150 (1,260) - - 6,583
Shares issued 4 - - - - - - 4
Net profit for the period - - - 1,875 - - - 1,875
EBT shares acquired - - - - (686) - - (686)
Share based payments reserve - - - 370 - - - 370
--------- --------- --------- --------- --------- --------- --------- ---------
At 31 December 2007 (audited) 473 3,605 619 5,395 (1,946) - 8,146
===== ===== ===== ===== ===== ===== ===== =====
At 1 January 2008 473 3,605 619 5,395 (1,946) - 8,146
Shares issued 76 - - - - - - 76
Share based payment charge - - - - 1,044 - - - 1,044
net
Shares issued - - - (975) - - - (975)
Net loss for the period - - - (3,206) - - - (3,206)
Disposal of treasury shares at - - - (379) 1,150 - - 771
loss
Fair value adjustment AFS - - - - - (180) - (180)
Currency translation - - - - - - 51 51
adjustment
--------- --------- --------- --------- --------- --------- --------- ---------
At 30 June 2008 (unaudited) 549 3,605 619 1,879 (796) (180) 51 5,727
===== ===== ===== ===== ===== ===== ===== =====
Libertas Capital Group Plc
Notes
(forming part of these financial statements)
1. Legal status and principal activities
Libertas Capital Group Plc ("the Group") is incorporated in United Kingdom as public limited Group under the Companies Act
1985.
The principal activity of Libertas Capital Group Plc and its subsidiaries (together referred to as the *Group*) is to provide a full range
of corporate advisory services, securities distribution and asset management services through five wholly owned operating subsidiaries.
2. Basis of preparation
Statement of compliance
The financial statements have been prepared in accordance with International Financial Reporting Standard ("IFRS"), IAS 34
Interim Financial Reporting. They do not include all of the information required for full annual financial statements and should be read in
conjunction with the annual audited financial statements of the Group as at 31 December 2007.
Basis of preparation
These financial statements have been prepared in Great Britain Pounds (*GBP or �*) and rounded to the nearest thousand.
Basis of measurement
These financial statements are prepared under the historical cost convention, except for financial instruments which are measured at fair
value.
3. Significant accounting policies
The accounting policies applied by the Group are the same as those applied by the Group in its financial statements as at 31
December 2007.
Financial risk management
The Group's financial risk management objectives, policies and procedures are consistent with those disclosed in the financial
statements as at and for the year ended 31 December 2007.
4. Estimates
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of
policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The
significant judgments made by management in applying the Group*s accounting policies and the key sources of estimating uncertainty were the
same as those that applied to the financial statements as at 31 December 2007.
Libertas Capital Group Plc
Notes * (continued)
5. Share based payments
During 2008 a non-cash expense of �1.044 million has been recognised in the income statement representing the fair value of awards over
10.56 million shares and price adjustment in respect of shares award granted in prior year but not yet issued to employees. In accordance
with IFRS 2 Share based payments, share awards have been expensed at market value at the date of grant.
6. Post balance sheet event
Subsequent to the balance sheet date, the Group has entered into an investment agreement, whereby a total of �3.316 million has been
invested by certain investors in the Group by way of loan notes and equity, both with attached warrants.
7. Treasury shares
Of the total 4,383,949 treasury shares held by the Group at 31 December 2007, during the current year 4 million shares were disposed of at a
loss of approximately �0.4 million; at 30 June 2008 383,949 shares remain as Treasury shares.
8. Share capital
During 2008, the Group issued additional 7.6 million shares to its employees as part of a shares award scheme. The nominal value of these
shares amounting to �76,000 has been adjusted against the share based payment reserve.
9. Taxation
The tax credit for the six-month period ended 30 June 2008 is based on estimated tax rate for the current year ending 31
December 2008.
10. Property and equipment
During the six-month period ended 30 June 2008 the Group acquired assets for a purchase consideration of �0.2 million whereas there were no
disposals during the period.
11. Earnings per share
The calculation of the basic earnings per ordinary share is based on the loss on ordinary activities after tax and the weighted average
number of ordinary shares in issue during the period. The calculation of the diluted earnings per share is based on the basic earnings per
share adjusted to allow for the issue of shares in the assumed conversion of all dilutive options.
Loss Weighted Earnings
�000 Average per share
Number (p)
Period ended 30 June 2008
Basic earnings per share (3,207) 47,993,797 (6.68p)
Diluted earnings per share (3,207) 55,179,626 (5.81p)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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