TIDMRAM
RNS Number : 0908L
RAM Investment Group PLC
29 April 2010
29 April 2010
RAM INVESTMENT GROUP PLC
('RAM' or the 'Company')
Preliminary Results
RAM Investment Group, the AIM-listed investor in digital technologies, announces
its preliminary results for the 12 months ended 31 December 2009.
Relevant points:
· Foundation laid for profitable future
· Contracts won by Train FX ("TFX") & RAM Vision ("RV")
· Sales to grow on same cost base
· Prudent impairments against non-core investments
· Pre-tax loss of GBP1.85m (2008 seven months: GBP304,000 profit)
RAM Chairman Tim Baldwin said: "During 2009 your company moved from a position
of no operating activities and a modest balance sheet to becoming a revenue
producing group with two divisions, a strengthened board and an enlarged balance
sheet. Since revenues started only towards the end of the year, the accounts do
not reflect the revenue outlook of the Group in 2010 and beyond.
"The first TFX Passenger Information Systems are now being manufactured for
installation on First Great Western. European legislation is helping support
this need for passenger information. We believe that few suppliers are able to
supply the required technology and that therefore TFX is well positioned to win
many more contracts and to become a profitable business for years to come.
"RV has seen a significant uplift in its activity on a like for like basis. The
rebranding has been well received by the industry. Our range of advertising
clients has continued to broaden. RV now has a bigger network in shopping malls
than when trading under ASG Media.
"With 2010 commencing positively, your Board is confident that its strategy
ensures long term shareholder value which will enable it to implement a
progressive dividend policy in the future".
ENDS
Contact:
For further information please call:
Tim Baldwin RAM investment Group Plc
0207 518 4303
Sandy Jamieson Libertas Capital Corporate Finance Limited 0207 569
9650
Monisha Varadan Rivington Street Corporate Finance Limited 0207 562 3389
Paul Quade
020 7248 8010
CityRoad Communications
07947 186694
Appendix
Chairman's Statement
During 2009 your Company moved from a position of no operating activities, a
modest balance sheet and one employee to becoming a revenue-producing group with
two divisions, a strengthened board, an enlarged balance sheet and 27
employees. Since revenues started only towards the end of the year, the accounts
do not reflect the revenue outlook of the Company and its subsidiaries ("Group")
in 2010 and beyond.
The consolidated figures include TrainFX Limited for four months and RAM Vision
Limited for two months. The headline loss includes a prudent impairment of share
investments of GBP224,243 and a non cash share option cost of GBP103,799.
The two significant developments of last year were the acquisition of 49.9% of
TrainFX Limited ("TFX") and gaining board control with the option to acquire the
balance of the equity as well as the establishment of a 100% owned subsidiary
RAM Vision Limited ("RV"). These two businesses are complementary and form the
base for our expected growth over the next few years. Further details of these
companies can be seen at the respective websites: www.trainfx.com and
www.ram-vision.co.uk.
The Group raised new financing of GBP2.5m net cash in 2009. The vast majority of
this has gone into acquiring an interest in TFX and developing its business with
the balance used to strengthen the Group and for the development of RV.
Shares in TFX were bought from Vision Media Group PLC shortly before it went
into administration in June 2009 (TFX did not go into administration). Since RV
was formed in November 2009, it has been operating its business using the assets
acquired by the Group from ASL Media Limited and Freelance Media Limited, both
wholly owned subsidiaries of ASG Media Plc, (together the "ASG Group"), which
went into administration in November 2009. In December 2009, the Company bought
Estates Media Partners Limited ("EMP") in consideration of which it issued
shares to the sellers of EMP. For a more detailed review of the acquisitions
please see the Appendix to this announcement.
TFX's predecessor parent company invested considerable capital into its
business. This was to develop the engineering and software technology which is
now being sold to the train operating companies.
Equally the ASG Group invested considerable capital into its business to develop
a national network of digital screens primarily in major shopping centres across
the UK. RV has now taken over this operation following the purchase of ASG
Group assets by the Group.
The shares in TFX were purchased when it was in a pre-revenue state, but by
November TFX started winning contracts, a process that has continued in 2010.
Although RV was just a start up company in November 2009 it still contributed
turnover of GBP300,000 in the last two months of the year. This was despite
significant amount of time and effort required to renegotiate all the contracts
previously entered into by the ASG Group.
Other Investing Activities
In order to strengthen the balance sheet in the early stages, your Company
acquired some non-core investments during the year on a share swap basis to
boost its balance sheet. One of these has subsequently been sold. The cash
proceeds have been received in part this year with more expected over the next
two years.
The legacy Greek litigation case was won and should bring in net cash of around
GBP90,000 over the next few months which has been assigned to a consortium of
creditors to reduce the debt level of the Company.
Following Vision Media Group plc's descent into administration our small holding
in it was written down to zero and our holdings in Alpha Prospects plc and CEC
Unet plc were reviewed and impaired accordingly.
Outlook
The Group now employs 27 people. Their skill set range encompasses engineering,
finance, sales, marketing and creative digital media. The Group expects to grow
sales significantly in the years ahead without much additional increase in
overhead.
The two macro drivers for the Group are very favourable. These are the growth in
Digital Out Of Home ('DOOH') advertising and the requirements for substantive
technology upgrades on existing trains for improved passenger information and
security.
The current year has started very well. TFX has now won a number of major
contracts. To date these are to sell its passenger information systems equipment
and train management information solutions to train operating companies in the
UK. In due course we also expect to win orders for CCTV upgrades.
The first TFX Passenger Information Systems ("PIS") are now being manufactured
for installation on the First Great Western route from London to Reading.
European directives derived legislation is helping support this need for
passenger information. The board believes that there are few other suppliers
able to supply the required technology in this new market and that therefore TFX
is well placed win many more contracts and become a profitable business for
years to come.
TFX also has the contractual opportunity of establishing a digital network of
screens on commuter trains going into London to generate recurring advertising
and media revenue. This is a business very similar to RV and we expect to
benefit from RV's knowledge of the DOOH market.
TFX is now ready to install its digital screens on First Capital Connect trains.
On completion, passengers will benefit from enhanced travel information and news
and weather reports. To start its installation program your Company will be
required to raise capital this year. The advertising income that your Company
forecasts from the screens on trains will supplement the rolling revenue from
the TFX engineering sales and eventually overtake it.
Your Company intends to raise sufficient finance for the working capital
required by the Group for the next eighteen months and for the capital
expenditure needed by RV to extend its screen network and by TFX to commence the
installation of digital screens onto its first London commuter rail line.
RV has seen a significant uplift in its activity on a like for like basis. The
rebranding has been well-received by the industry. Our range of advertising
clients has continued to broaden. Besides winning longer term contracts, a
welcome trend of advertisers booking now well in advance has developed. We are
also starting to book highly profitable 'short burst' campaigns.
RV now has a bigger presence in shopping malls than when the network was
operated by the ASG Group. Moreover, RV has broadened its relationships with the
addition of more property companies, achieved through agreeing to operate and
market existing screen networks.
Because of RV's critical mass in national advertising, there are likely to be
other strategic opportunities in the DOOH sector.
The board was strengthened with the appointment of Mark Edmonds as
Communications Director and Iain Manley as Finance Director from his previous
Non-Executive position. Your board is currently looking at a short list for a
vacant non-executive director position and will make a further announcement
shortly.
With 2010 commencing positively, your board is confident that its strategy
ensures long term shareholder value which will enable it, in the future, to
implement a progressive dividend policy.
Tim Baldwin
Executive Chairman
RAM INVESTMENT GROUP PLC
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2009
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | 12 | | 7 |
| | | | | Months | | Months |
| | | | | to | | to |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | 31 Dec | | 31 Dec |
| | | | | 2009 | | 2008 |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | GBP | | GBP |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Continuing operations | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Revenue | | | | 360,753 | | - |
| | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Cost of sales | | | | (224,598) | | - |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Gross profit | | | | 136,155 | | - |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Administrative expenses | | | | (1,682,179) | | (88,717) |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Loss on disposal of assets | | | | (148,997) | | - |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Gain on disposal for | | | | - | | 393,600 |
| available-for-sale financial | | | | | | |
| assets | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Operating (Loss)/Profit | | | | (1,695,021) | | 304,883 |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Finance income | | | | 85 | | 620 |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Finance costs | | | | (127,281) | | (1,249) |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Finance costs - net | | | | (127,196) | | (629) |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Share of loss of associate | | | | (29,048) | | - |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| (Loss)/Profit before income tax | | | | (1,851,265) | | 304,254 |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Income tax expense | | | | - | | - |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| (Loss)/Profit for the year from | | | | (1,851,265) | | 304,254 |
| continuing operations | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| (Loss)/Profit attributable to: | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Owners of the parent | | | | (1,492,304) | | 304,254 |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Non-controlling interest | | | | (358,961) | | - |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | (1,851,265) | | 304,254 |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Earnings per share | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Basic earnings per share - | | | | (3.5)p | | 2.2p |
| continuing operations | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Diluted earnings per share - | | | | (3.5)p | | 2.2p |
| continuing operations | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
RAM INVESTMENT GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | 12 | | 7 |
| | | | | Months | | Months |
| | | | | to | | to |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | 31 Dec | | 31 Dec |
| | | | | 2009 | | 2008 |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | GBP | | GBP |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| (Loss)/Profit for the year | | | | (1,851,265) | | 304,254 |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Other comprehensive income: | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Changes in fair value of available | | | | (225,243) | | (10,408) |
| for sale financial assets | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Other comprehensive income for the | | | | (225,243) | | (10,408) |
| year, net of tax | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Total comprehensive income for the | | | | (2,076,508) | | 293,846 |
| year | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Attributable to: | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Owners of the parent | | | | (1,717,547) | | 293,846 |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Non-controlling interest | | | | (358,961) | | - |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| Total comprehensive income for the | | | | (2,076,508) | | 293,846 |
| year | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
| | | | | | | |
+------------------------------------+----+----------+----------+-------------+----------+----------+
RAM INVESTMENT GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 DECEMBER 2009
+----------------------------------------+----+--------------+----------+--------------+
| | | 12 | | 7 |
| | | Months | | Months |
| | | to | | to |
+----------------------------------------+----+--------------+----------+--------------+
| | | 31 Dec | | 31 Dec |
| | | 2009 | | 2008 |
+----------------------------------------+----+--------------+----------+--------------+
| | | GBP | | GBP |
+----------------------------------------+----+--------------+----------+--------------+
| Assets | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| Non-current assets | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| Property, plant & equipment | | 277,133 | | - |
+----------------------------------------+----+--------------+----------+--------------+
| Intangible assets | | 2,163,834 | | - |
+----------------------------------------+----+--------------+----------+--------------+
| Available-for-sale financial assets | | 365,650 | | 219,592 |
+----------------------------------------+----+--------------+----------+--------------+
| | | 2,806,617 | | 219,592 |
+----------------------------------------+----+--------------+----------+--------------+
| | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| Current assets | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| Trade and other receivables | | 608,143 | | 21,832 |
+----------------------------------------+----+--------------+----------+--------------+
| Cash and cash equivalents | | 439,390 | | 29,865 |
+----------------------------------------+----+--------------+----------+--------------+
| | | 1,047,533 | | 51,697 |
+----------------------------------------+----+--------------+----------+--------------+
| | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| Total assets | | 3,854,150 | | 271,289 |
+----------------------------------------+----+--------------+----------+--------------+
| | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| Equity | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| Capital and reserves attributable to | | | | |
| equity holders of the company | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| Ordinary shares | | 759,884 | | 133,153 |
+----------------------------------------+----+--------------+----------+--------------+
| Deferred shares | | 9,983,447 | | 9,983,447 |
+----------------------------------------+----+--------------+----------+--------------+
| Share premium account | | 14,876,985 | | 11,601,271 |
| Merger reserve | | 327,272 | | - |
+----------------------------------------+----+--------------+----------+--------------+
| Shares to be issued reserve | | 113,799 | | - |
+----------------------------------------+----+--------------+----------+--------------+
| Retained earnings | | (23,310,115) | | (21,592,568) |
+----------------------------------------+----+--------------+----------+--------------+
| Non-controlling interest | | (358,961) | | - |
+----------------------------------------+----+--------------+----------+--------------+
| Total equity | | 2,392,311 | | 125,303 |
+----------------------------------------+----+--------------+----------+--------------+
| | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| Liabilities | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| Non current liabilities | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| Borrowings | | 190,000 | | - |
+----------------------------------------+----+--------------+----------+--------------+
| | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| | | 190,000 | | - |
+----------------------------------------+----+--------------+----------+--------------+
| | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| Current liabilities | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| Trade and other payables | | 1,056,839 | | 145,986 |
+----------------------------------------+----+--------------+----------+--------------+
| Borrowings | | 215,000 | | - |
+----------------------------------------+----+--------------+----------+--------------+
| | | 1,271,839 | | 145,986 |
+----------------------------------------+----+--------------+----------+--------------+
| | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| Total liabilities | | 1,461,839 | | 145,986 |
+----------------------------------------+----+--------------+----------+--------------+
| | | | | |
+----------------------------------------+----+--------------+----------+--------------+
| Total equity and liabilities | | 3,854,150 | | 217,289 |
+----------------------------------------+----+--------------+----------+--------------+
| | | | | |
+----------------------------------------+----+--------------+----------+--------------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| | Share | Share | Retained | Shares | Merger | Total | Non-controlling | Total |
| | capital | premium | earnings | to be | Reserve | | interest | equity |
| | | | | issued | | | | |
| | | | | reserve | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Balance | 10,040,226 | 11,372,145 | (21,886,414) | - | - | (474,043) | - | (474,043) |
| at 1 | | | | | | | | |
| June | | | | | | | | |
| 2008 | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Profit | - | - | 304,254 | - | - | 304,254 | - | 304,254 |
| for | | | | | | | | |
| year | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Other | | | | | | | | |
| comprehensive | | | | | | | | |
| income: | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Changes | - | - | (10,408) | - | - | (10,408) | - | (10,408) |
| in fair | | | | | | | | |
| value | | | | | | | | |
| of | | | | | | | | |
| available | | | | | | | | |
| for sale | | | | | | | | |
| financial | | | | | | | | |
| assets | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Transactions | | | | | | | | |
| with owners: | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Issue | 76,374 | 229,126 | - | - | - | 305,500 | - | 305,500 |
| of | | | | | | | | |
| share | | | | | | | | |
| capital | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Balance | 10,116,600 | 11,601,271 | (21,592,568) | - | - | 125,303 | - | 125,303 |
| as at | | | | | | | | |
| 31 | | | | | | | | |
| December | | | | | | | | |
| 2008 | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Loss | - | - | (1,492,304) | - | - | (1,492,304) | (358,961) | (1,851,265) |
| for | | | | | | | | |
| year | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Other | | | | | | | | |
| comprehensive | | | | | | | | |
| income: | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Changes | - | - | (225,243) | - | - | (225,243) | - | (225,243) |
| in fair | | | | | | | | |
| value | | | | | | | | |
| of | | | | | | | | |
| available | | | | | | | | |
| for sale | | | | | | | | |
| financial | | | | | | | | |
| assets | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Share | - | - | - | - | - | - | - | - |
| of | | | | | | | | |
| other | | | | | | | | |
| comprehensive | | | | | | | | |
| income/(loss) | | | | | | | | |
| of associate | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Transactions | | | | | | | | |
| with owners: | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Issue | 626,731 | 3,369,156 | - | - | 327,272 | 4,323,159 | - | 4,323,159 |
| of | | | | | | | | |
| share | | | | | | | | |
| capital | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Costs | - | (93,442) | - | - | - | (93,442) | - | (93,442) |
| of | | | | | | | | |
| issue | | | | | | | | |
| of | | | | | | | | |
| share | | | | | | | | |
| capital | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Share | - | - | - | 103,799 | - | 103,799 | - | 103,799 |
| options | | | | | | | | |
| issued | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Convertible | - | - | - | 10,000 | - | 10,000 | - | 10,000 |
| loan-equity | | | | | | | | |
| component | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
| Balance | 10,743,331 | 14,876,985 | (23,310,115) | 113,799 | 327,272 | 2,751,272 | (358,961) | 2,392,311 |
| as at | | | | | | | | |
| 31 | | | | | | | | |
| December | | | | | | | | |
| 2009 | | | | | | | | |
+---------------+------------+------------+--------------+---------+---------+-------------+-----------------+-------------+
RAM INVESTMENT GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2009
+------------------------------------+-----+-------------+----------+-----------+
| | | Group |
+------------------------------------+-----+------------------------------------+
| | | 12 | | 7 |
| | | Months | | Months |
| | | to | | to |
+------------------------------------+-----+-------------+----------+-----------+
| | | 31 Dec | | 31 Dec |
| | | 2009 | | 2008 |
+------------------------------------+-----+-------------+----------+-----------+
| | | GBP | | GBP |
+------------------------------------+-----+-------------+----------+-----------+
| Cash flows from operating | | | | |
| activities | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| (Loss) / Profit before tax | | (2,076,508) | | 293,846 |
+------------------------------------+-----+-------------+----------+-----------+
| Adjustments for: | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Depreciation | | 84,461 | | - |
+------------------------------------+-----+-------------+----------+-----------+
| Equity-settled share based payment | | 178,149 | | - |
| transactions | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Share of loss from associate | | 29,048 | | - |
+------------------------------------+-----+-------------+----------+-----------+
| Net finance income recognised in | | 127,197 | | 629 |
| profit or loss | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Change in value of available for | | 225,243 | | 10,408 |
| sale financial assets | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Loss/ (gain) on disposal of | | 114,120 | | (393,600) |
| financial assets | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| | | (1,318,290) | | (88,717) |
+------------------------------------+-----+-------------+----------+-----------+
| Changes in working capital: | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| (Increase)/decrease in trade and | | (199,348) | | (15,878) |
| other receivables | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| (Decrease)/increase in trade and | | (675,052) | | 31,097 |
| other payables | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Cash used in operations | | (2,192,690) | | (73,498) |
| | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Interest paid | | (127,281) | | (1,249) |
+------------------------------------+-----+-------------+----------+-----------+
| Net cash used in operating | | (2,319,971) | | (74,747) |
| activities | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Cash flows from investing | | | | |
| activities | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Interest received | | 85 | | 620 |
+------------------------------------+-----+-------------+----------+-----------+
| Loans granted to associate | | (159,499) | | - |
+------------------------------------+-----+-------------+----------+-----------+
| Proceeds from sale of investment | | 157,915 | | - |
+------------------------------------+-----+-------------+----------+-----------+
| Acquisition of plant & machinery | | (34,632) | | - |
+------------------------------------+-----+-------------+----------+-----------+
| Acquisition of financial assets | | - | | 230,000 |
+------------------------------------+-----+-------------+----------+-----------+
| Acquisition of subsidiary net of | | 10,121 | | - |
| cash | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Acquisition of goodwill | | (175,000) | | - |
+------------------------------------+-----+-------------+----------+-----------+
| Net cash (used in)/ generated from | | (201,010) | | (229,380) |
| investing activities | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Cash flows from financing | | | | |
| activities | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Proceeds from issue of shares | | 2,590,506 | | 305,500 |
+------------------------------------+-----+-------------+----------+-----------+
| Proceeds from issue of convertible | | 200,000 | | - |
| notes | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Proceeds from borrowings | | 335,000 | | - |
+------------------------------------+-----+-------------+----------+-----------+
| Repayment of other short term | | (195,000) | | (3,749) |
| loans | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Net cash generated from/ (used in) | | 2,930,506 | | 301,751 |
| financing activities | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Increase/(decrease) in cash | | 409,525 | | (2,376) |
| equivalents | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Cash and cash equivalents at | | 29,865 | | 32,241 |
| beginning of year | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| Cash and cash equivalents at end | | 439,390 | | 29,865 |
| of year | | | | |
+------------------------------------+-----+-------------+----------+-----------+
| | | | | |
+------------------------------------+-----+-------------+----------+-----------+
The financial information in this announcement does not comprise statutory
accounts for the purpose of Section 435 of the Companies Act 2006 for the
years ended 31 December 2008 or 2009. It has been extracted from the Company's
consolidated accounts for the period to 31 December 2009 which are currently
unaudited.
.
Whilst the information in this announcement has been prepared in accordance with
recognition and measurement criteria of International Financial Reporting
Standards (IFRS's) this announcement in itself does not give sufficient
information to comply with IFRS's.
GOING CONCERN
The directors are aware that the Group's future solvency is dependent on their
being successful in raising funds in order to implement the Group's investment
strategy. Since the end of the accounting period there has been considerable
progress made towards achieving the Group's objectives. The directors' plans for
raising funds are at an advanced stage and having considered the forecasts for
the twelve-month period from the date of signing these financial statements the
directors believe that the Group's financial resources will be sufficient to
enable the Group to continue in operation for the foreseeable future.
The financial statements have been prepared on the going concern basis
which assumes that the Company and its subsidiaries will continue in operational
existence for the foreseeable future. The validity of this assumption depends on
the successful raising of additional funds.
Whilst the directors are presently uncertain as to the outcome of the fund
raise, plans for raising funds are at an advanced stage and they believe that it
is appropriate for the financial statements to be prepared on the going concern
basis.
BUSINESS COMBINATIONS
NEW PLANET INVESTMENTS
On 7 May 2009 to complete a 100% acquisition the Group acquired the remaining
81.8% of the issued capital of New Planet Investments Limited ("NPI") for a
purchase price of GBP400,000 satisfied by the issue of 7,272,727 ordinary shares
in the Company to the other shareholders of NPI. As at 31 December 2008 the
Group held 18.2% of the issued share capital of NPI. At this date the fair value
of the net assets and liabilities in New Planet Investments Limited equalled
GBP173,886 and consequently there is no goodwill on the initial investment. The
business contributed GBP29,523 net loss to the Group for the period from 7 May
2009 to 31 December 2009. The business did not contribute any revenue to the
Group as it was dormant. If the acquisition had occurred on 1st January 2009 the
contribution to consolidated profit for the period would have been unchanged.
NPI was acquired because it had the benefit of a non-legally binding exclusivity
arrangement with Vision Media Group Plc (the parent company of TrainFX Limited)
in relation to TFX and had entered into advance negotiations for the purchase of
TFX (including preparation of arrangements under which it would have acquired
TFX).
The fair value of the assets acquired and liabilities assumed were as follows:
+--------------------------------+----------+-----------+----------+-------------+----------+-----------+
| | | Book | | Fair | | Fair |
| | | values | | value | | values |
| | | | |adjustments | | |
+--------------------------------+----------+-----------+----------+-------------+----------+-----------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+--------------------------------+----------+-----------+----------+-------------+----------+-----------+
| | | | | | | |
+--------------------------------+----------+-----------+----------+-------------+----------+-----------+
| Cash and cash equivalents | | 298 | | - | | 298 |
+--------------------------------+----------+-----------+----------+-------------+----------+-----------+
| Intangible fixed assets | | 347,500 | | - | | 347,500 |
+--------------------------------+----------+-----------+----------+-------------+----------+-----------+
| Trade and other payables | | (23,912) | | - | | (23,912) |
+--------------------------------+----------+-----------+----------+-------------+----------+-----------+
| Borrowings | | (150,000) | | - | | (150,000) |
+--------------------------------+----------+-----------+----------+-------------+----------+-----------+
| | | | | | | |
| Net assets | | 173,886 | | - | | 173,886 |
| | | | | | | |
+--------------------------------+----------+-----------+----------+-------------+----------+-----------+
The consideration for the acquisition and the goodwill arising on acquisition
are as follows:
+----------------------------------------------------+----------+----------+
| | | GBP |
+----------------------------------------------------+----------+----------+
| Purchase consideration: | | |
+----------------------------------------------------+----------+----------+
| | | |
| Fair value of shares issued | | 400,000 |
+----------------------------------------------------+----------+----------+
| | | |
+----------------------------------------------------+----------+----------+
7,272,727 ordinary shares were issued at 5.5 pence per share to the vendors for
the acquisition of New Planet Investments Limited.
TRAINFX LIMITED
On 7 May 2009 the Group acquired 49.9% of the issued capital of TrainFX Limited
for GBP920,000. At this date the fair value of the net assets and liabilities in
TrainFX Limited equalled x and consequently there is no goodwill on the initial
investment. On 3 September 2009, the Group gained board control of TrainFX
Limited and hence it has been treated as a subsidiary of RAM Investment Group
plc from that date. The business contributed GBP684,549 net loss to the Group
for the period from 3 September 2009 to 31 December 2009. If the acquisition had
occurred on 1st January 2009 management estimates that consolidated loss for the
year would have been GBP953,653. No revenues were generated in the year. In
determining these amounts, management has assumed that the fair value
adjustments that arose on the date of acquisition would have been the same if
the acquisition on 1st January 2009.
The fair value of the assets acquired and liabilities assumed were as follows:
+--------------------------------+----------+-------------+----------+-------------+----------+-------------+
| | | Book | | Fair | | Fair |
| | | values | | value | | values |
| | | | |adjustments | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-------------+
| | | GBP | | GBP | | GBP |
+--------------------------------+----------+-------------+----------+-------------+----------+-------------+
| | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-------------+
| Cash and cash equivalents | | 384,423 | | - | | 384,423 |
+--------------------------------+----------+-------------+----------+-------------+----------+-------------+
| Property, plant and equipment | | 233,015 | | - | | 233,015 |
+--------------------------------+----------+-------------+----------+-------------+----------+-------------+
| Intangible fixed assets | | 327,054 | | - | | 327,054 |
+--------------------------------+----------+-------------+----------+-------------+----------+-------------+
| Trade and other receivables | | 334,876 | | - | | 334,876 |
+--------------------------------+----------+-------------+----------+-------------+----------+-------------+
| Trade and other payables | | (3,831,247) | | - | | (3,831,247) |
+--------------------------------+----------+-------------+----------+-------------+----------+-------------+
| | | | | | | |
| Net assets | | (2,551,879) | | - | | (2,551,879) |
| | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-------------+
| | | | | | | |
+--------------------------------+----------+-------------+----------+-------------+----------+-------------+
The consideration for the acquisition and the goodwill arising on acquisition
are as follows:
+----------------------------------------------------+----------+----------+
| | | GBP |
+----------------------------------------------------+----------+----------+
| Purchase consideration: | | |
+----------------------------------------------------+----------+----------+
| | | |
| Cash paid | | 920,000 |
+----------------------------------------------------+----------+----------+
RAM VISION LIMITED
On 5 November 2009 the Group incorporated a new company, RAM Vision Limited
(originally named ASG Estates Limited on incorporation). The Group owns 100% of
the issued share capital and has board control. The business contributed
GBP32,004 net loss to the Group for the period from 5 November to 31 December
2009.
ESTATES MEDIA PARTNERS LIMITED
Estates Media Partners Limited is a similar business to RV. It was acquired to
increase the scale of the media business.
On 22 December 2009 the Group acquired a 100% of the issued share capital of
Estates Media Partners Limited ("EMP") for a purchase price of GBP325,000
satisfied by the issue of 3,333,334 ordinary shares in the Company to the
shareholders of EMP. At this date the fair value of the net assets and
liabilities in Estates Media Partners Limited GBP16,137 and consequently
goodwill on the initial investment was GBPx.
+--------------------------------+----------+----------+----------+-------------+----------+----------+
| | | Book | | Fair | | Fair |
| | | values | | value | | values |
| | | | | adjustments | | |
+--------------------------------+----------+----------+----------+-------------+----------+----------+
| | | GBP | | GBP | | GBP |
+--------------------------------+----------+----------+----------+-------------+----------+----------+
| | | | | | | |
+--------------------------------+----------+----------+----------+-------------+----------+----------+
| Cash and cash equivalents | | 5,164 | | - | | 5,164 |
+--------------------------------+----------+----------+----------+-------------+----------+----------+
| Property, plant and equipment | | 28,162 | | - | | 28,162 |
+--------------------------------+----------+----------+----------+-------------+----------+----------+
| Trade and other receivables | | 12,390 | | - | | 12,390 |
+--------------------------------+----------+----------+----------+-------------+----------+----------+
| Trade and other payables | | (29,579) | | - | | (29,579) |
+--------------------------------+----------+----------+----------+-------------+----------+----------+
| | | | | | | |
| Net assets | | 16,137 | | - | | 16,137 |
| | | | | | | |
+--------------------------------+----------+----------+----------+-------------+----------+----------+
| | | | | | | |
+--------------------------------+----------+----------+----------+-------------+----------+----------+
The consideration for the acquisition and the goodwill arising on acquisition
are as follows:
+----------------------------------------------------+----------+----------+
| | | GBP |
+----------------------------------------------------+----------+----------+
| Purchase consideration: | | |
+----------------------------------------------------+----------+----------+
| | | |
| Fair value of shares issued | | 325,000 |
+----------------------------------------------------+----------+----------+
| | | |
+----------------------------------------------------+----------+----------+
3,333,334 ordinary shares were issued at 9.75 pence per share to the vendors as
part of the consideration for the acquisition of Estates Media Partners Limited.
There were no other acquisitions during the year ended 31 December 2009.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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