Half Yearly Report
December 15 2008 - 8:19AM
UK Regulatory
RNS Number : 1466K
Strathdon Investments PLC
15 December 2008
Strathdon Investments plc
Unaudited Half Year Results for the 6 months to 30 September 2008
Strathdon Investments plc ("the Group") today announces its unaudited half year results for the six months to 30 September 2008.
Chairman's Statement
The first six months of this financial year to 30 September 2008 has continued to be a challenging environment with economic conditions
significantly worsening towards the end of the period. Nonetheless the Group continues to focus on both reducing costs and seeking to
realise its investment portfolio where possible. The operating loss for the six months when compared to the same period last year has been
significantly reduced from �0.97 million to �0.19 million. Following both the recent reduction in the size of the board and the recently
announced renegotiation of the fund management fees it is anticipated that these losses will be further reduced.
The net asset value as at 30 September 2008 is 8.20 pence per share, which compares to 9.59 pence per share at 31 March 2008.
The board's key short term objective is to restore liquidity and extinguish the bank debt. In this regard the board continues to seek
the realisation of the portfolio where possible while at the same time continuing to review its strategic options to deliver shareholder
value.
Portfolio Company Performance
In aggregate �0.33 million was realised from 2 investments in the first six months. These realisations generated a small gain of �3,000,
compared with the previous carrying value. The bulk of these net proceeds have been used to reduce further the debt of the Group to the
current level.
The period has seen no new investment activity and no further requirement for investment in the existing portfolio by the Group. The
Fund Manager continues to work closely with the portfolio. Whilst at present there are no anticipated short term cash requirements the
current economic conditions remain challenging which may not preclude the need for further investment at some point in the future.
The residual portfolio comprises 11 investments with an aggregate value of �5.02 million with 7 of these investments continuing to
comprise in excess of 96% of the residual value.
Financial Results
The operating loss for the six months ended 30 September 2008 was �0.19m compared to �0.97m in the same period last year. After taking
account of realised gains and unrealised losses on investments the loss before tax for the six months was �0.72 m compared to �7.05 m in the
same period in the prior year.
Total net assets at 30 September 2008 were �4.25m (2007: �6.94 million) equivalent to a net asset value per share of 8.20 pence (2007:
13.40 pence); bank borrowings totalled �0.33m.
Board
Further to the announcement made at the AGM on 24 October 2008, Malcolm Williams resigned from the board on 31 October 2008. The board
would like to thank Malcolm for his substantial contributions to and support for the Group.
Outlook
This period has seen costs reduced further, continuing realisations and a reduction in bank debt. The Group is seeking to continue this
strategy with the goal of ultimately operating free of debt. When combined with further cost reductions arising from the renegotiation of
the fund management fees it is intended that this will allow the Group to focus on achieving further realisations and to continue to review
its strategic options to enhance shareholder value.
Simon Hunt
Chairman
15 December 2008
Consolidated Income Statement
For the 6 months ended 30 September 2008
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 September 2008 30 September 2007 31 March
2008
�000 �000 �000
Notes
Income 74 (493) 365
Administrative expenses (263) (474) (1,682)
Operating loss (189) (967) (1,317)
Realised gains on financial
assets designated at fair 3 25 241
value though profit or loss
(net)
Unrealised losses on financial
assets designated at fair (516) (6,043) (7,834)
value through profit or loss
(net)
Net movement on investments (513) (6,018) (7,593)
Loss on ordinary activities
before finance costs and (702) (6,985) (8,910)
taxation
Finance costs (20) (66) (108)
Loss from continuing
operations before taxation
(722) (7,051) (9,018)
Taxation - - -
Loss for the period from
continuing operations (722) (7,051) (9,018)
Basic and diluted loss per 2 (1.39)p (13.61)p (17.40)p
share
Consolidated Balance Sheet
As at ended 30 September 2008
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 September 2008 30 September 2007 31 March
2008
�000 �000 �000
Notes
Assets
Non-current assets
Financial assets designated at
fair value through profit or 5,022 8,355 5,557
loss
Current assets
Trade and other receivables 212 307 555
Cash and cash equivalents 96 34 201
308 341 756
Liabilities
Current liabilities
Financial liabilities (330) (1,205) (656)
Trade and other payables (611) (413) (546)
(941) (1,618) (1,202)
Net current / (liabilities) (633) (1,277) (446)
assets
Total assets less current 4,389 7,078 5,111
liabilities
Non-current liabilities
Loans (141) (141) (141)
Net assets 4,248 6,937 4,970
Shareholders' equity
Share capital 2,591 2,591 2,591
Share premium account 6,392 6,392 6,392
Special reserve 36,290 36,290 36,290
Warrant reserve 928 928 928
Retained earnings (41,953) (39,264) (41,231)
Total Shareholders' equity 4,248 6,937 4,970
Net asset value per Ordinary 3 8.20p 13.40p 9.59p
share
Consolidated Statement of Changes in Shareholders' Equity
For the 6 months ended 30 September 2008
Share Share premium Special reserve Warrant Retained earnings Total
Capital account reserve equity
�000
�000 �000
�000 �000 �000
Balance at 31 March 2007 2,591 6,392 36,290 928 (32,213) 13,988
Loss for the period - - - - (7,051) (7,051)
Balance at 30 September 2007 2,591 6,392 36,290 928 (39,264) 6,937
Loss for the period - - - - (1,967) (1,967)
Balance at 31 March 2008 2,591 6,392 36,290 928 (41,231) 4,970
Loss for the period - - - - (722) (722)
Balance at 30 September 2007 2,591 6,392 36,290 928 (41,953) 4,248
Consolidated Cash Flow Statement
For the 6 months ended 30 September 2008
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 September 2008 30 September 2007 31 March
2008
�000 �000 �000
Net cash outflow from (85) (202) (215)
operating activities
Cash flows (used in) / from
investing activities
Proceeds from sale of - - 11
subsidiary
Purchase of financial assets - (431) (557)
Proceeds from sale of 326 730 1,626
financial assets
Net cash (used in) / from 326 299 1,080
investing activities
Cash flows from / (used in)
financing activities
Repayment of borrowings (326) (75) (959)
Interest paid (20) (55) (107)
Loan funds drawn down - - 335
Net cash from / (used in) (346) (130) (731)
financing activities
Net increase / (decrease) in
cash and cash equivalents (105) (33) 134
Cash and cash equivalents at
the beginning of the period 201 67 67
Cash and cash equivalents at
the end of the period 96 34 201
Notes to the Financial Statements
For the 6 months ended 30 September 2008
1. These half year statements, which have been approved by the directors, are unaudited, and have not been reviewed by the auditors
pursuant to the Auditing Practices Board (ASB) guidance on Review of Interim Financial Information.
The half year statements do not constitute full financial statements as defined in section 240 of the Companies Act 1985. The
comparative figures for the year ended 31 March 2008 do not constitute full financial statements and have been extracted from the Company's
financial statements for the year ended 31 March 2008. Those accounts included an emphasis of matter with regards to going concern and an
adverse opinion in respect of the non-consolidation of the investment in Stagebeach Limited.
Emphasis of matter - Going concern
In forming their opinion on the financial statements, the auditors considered the adequacy of the disclosure made in regards to the
director's review of the anticipated income and expenditure of the Group, including the anticipated realisation of the group's investment
portfolio or a refinancing deal. In view of the uncertainty over the proceeds and timing of the realisation of the group's investment
portfolio or a refinancing deal, the audit report emphasized the indication of the existence of a material uncertainty which may cast
significant doubt about the Group's ability to continue as going concern. The audit option was not qualified in this respect.
Adverse opinion
The Group held a majority investment in Stagebeach Limited until May 2007, when its shareholding fell below 50% and it ceased to have
control of Stagebeach. This investment was accounted for as a financial asset designated at fair value through profit or loss in the prior
year comparatives. The Group did not account for its investment in Stagebeach as a subsidiary in the period up to May 2007 as required by
IAS 27, as the directors were of the opinion that it would not assist shareholders in their understanding of the financial statements and
that it would be inconsistent with the nature of the business of the Group, which is that of an investment company. Furthermore, the Group
does not have access to the necessary information to enable Stagebeach Limited's financial results to be accounted for under IAS 27. In
view of this, the auditors opinion was that the consolidated financial statements for the yea ended 31 March 2008 did not give a true and
fair view, in accordance with IFRSs as adopted by the European Union.
The accounts for the year ended 31 March 2008 have been delivered to the Registrar of Companies.
The half year statements have been prepared on a going concern basis. In arriving at their decision to prepare the half year statements
on a going concern basis, the directors have reviewed the anticipated income and expenditure of the Group and compared it with the Group's
cash resources. The directors believe that it remains appropriate to prepare these accounts on a going concern basis, however the ability of
the Group to remain a going concern is dependent on the realisation of an illiquid portfolio of securities in what continues to be extremely
difficult market conditions. Furthermore, there is considerable uncertainty over the timing and quantum of the proceeds from the realisation
of the portfolio. Until funds become available from such sources, the Group remains dependant on its short term financing arrangements, with
its bank and the continuing agreement with YFM Venture Finance Limited and the directors to delay payment of their fees.
The half year statements comply with IAS 34 'Interim Financial Reporting' and the accounting policies and methods of computation adopted
in the half year statements are the same as those adopted in the preparation of the audited financial statements for the year ended 31 March
2008.
The financial statements for the year ended 31 March 2008 were prepared in accordance with the International Financial Reporting
Standards (IFRS), which comprise standards and interpretations approved by the International Accounting Standards Board (IASB) and the
International Accounting Standards Committee (IASC) as adopted by the European Union and those parts of the Companies Act 1985 applicable to
companies reporting under IFRS.
2. The loss per share is based on the net loss from ordinary activities after tax attributable to shareholders of �722,000 (30
September 2007: �7,051,000 and 31 March 2008: �9,018,000) and on 51,817,057 shares (30 September 2007 and 31 March 2008: 51,817,057), being
the weighted average number of shares in issue during the period.
The share options within the Employee Share Option Scheme and the warrants exercisable at 36p per share are considered to be dilutive.
The Company has no other securities that would have a dilutive effect and hence basic and diluted earnings per share are the same.
3. The net asset value per share is calculated on attributable assets of �4,248,000 and 51,817,057 shares in issue at the period end
(30 September 2007: assets of �6,937,000 and 51,817,057 shares, 31 March 2008: assets of �4,970,000 and 51,817,057 shares).
The share options within the Employee Share Option Scheme and the warrants exercisable at 36p per share are not considered to be
non-dilutive potential ordinary shares. The Company has no other securities that would have a dilutive effect and hence basic and diluted
net asset values per share are the same.
4. Copies of the interim report can be obtained from the Company's registered office: Saint Martins House, 210-212 Chapeltown Road,
Leeds, LS7 4HZ.
For further information, please contact:
David Hall YFM Group Limited 0113 294 5000 or 0161 832 7603
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GUGAGPUPRGWA
Strathdon (LSE:STV)
Historical Stock Chart
From Jun 2024 to Jul 2024
Strathdon (LSE:STV)
Historical Stock Chart
From Jul 2023 to Jul 2024
