RNS Number:6606S
Magnum Power PLC
28 November 2003
FOR IMMEDIATE RELEASE 28 NOVEMBER 2003
MAGNUM POWER PLC
ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 MAY 2003
Enquiries:
Edward Adams, Telephone: 020 7209 1324
Chairman, Magnum Power
Roland Cornish/Rod Venables Telephone: 020 7628 3396
Beaumont Cornish Limited
CHAIRMAN'S STATEMENT
FOR THE YEAR ENDED 31 MAY 2003
Results
The results for the 12 months to 31 May 2003 for Magnum Power PLC ("Magnum")
show a loss on ordinary activities before taxation of # 182,637, which mostly
consists of the administrative expenses of running the public company. The
period under review also saw the disposal of its subsidiary, that operated in
the area of built-in uninterruptible power supplies, and premises to the
Pentranic Group culminating in an exceptional loss of #20.06 million. As at 31
May 2003 Magnum, therefore, was a "shell" company with net assets of only # 502
(compared with # 20.5 million as at 31 May 2002).
The new board of directors and strategy
A circular to shareholders was issued in May 2003, which gave notice of an
Extraordinary General Meeting ("EGM") to be held on the 9 June 2003. The
ordinary and special resolutions were all passed at the EGM. Inter alia these
resolutions approved a capital reorganisation and the allotment and issue of #
200,000 worth of subscription shares to your new Directors - Edward Adams,
Nicholas Lebetkin and Laurence Selman. As a result of these measures the issued
share capital of 99.9m ordinary shares of 10p nominal each as at 31 May 2003
became 4.99m new ordinary shares of 1p nominal each, after the EGM. Of these
4.99m issued shares Edward Adams beneficially holds 1,000,000 shares (being
approximately 20 per cent of the voting rights), and Nicholas Lebetkin and
Laurence Selman each hold 1,500,000 shares (being approximately 30 per cent each
of the voting rights of the company).
In addition the circular set out the Directors' intention to change the strategy
of the company to focus on property and leisure investment and development.
The first transaction
Pursuant to this new strategy, on the 7 August 2003, the Company announced its
first transaction with an agreement to buy the Stack Leisure Park in Lochee,
Dundee for # 7.05m. This consists of seven units totalling 152,953 square feet
of which two that comprise 68,753 square feet are let and are producing rental
income of #621,925 per annum.
As the completion of this transaction constitutes a "reverse takeover" under the
AIM Rules the shares were suspended at the time of this announcement. A circular
to shareholders seeking approval to complete the purchase will be released
within the next two months. This circular will also give more details of the
proposed transaction, the structure of its financing and plans for the unlet
space.
Edward Adams
Chairman
28 November 2003
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2003
2003 2002
# #
Administrative expenses (182,637) (204,691)
Operating loss
Continuing operations - -
Discontinued activities (182,637) (204,691)
(182,637) (204,691)
Profit on sale of property 12,170 -
in discontinued
operations
Loss on disposal of
discontinued (20,071,273) -
operations
(20,071,273) -
Loss on ordinary activities
before (20,241,740) (204,691)
interest
Other interest receivable 644 3,774
and similar income
Interest payable and (18,532) (29,331)
similar charges
Loss on ordinary activities
before (20,259,628) (230,248)
taxation
Tax on loss on ordinary - -
activities
Loss on ordinary activities (20,259,628) (230,248)
after taxation
Loss per share
Basic and diluted loss per share (20.3p) (0.2p)
The profit and loss account has been prepared on the basis that all operations
have been discontinued.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 MAY 2003
2003 2002
# #
Loss on ordinary activities (20,259,628) (230,248)
after taxation
Unrealised deficit on revaluation of
properties - (231,410)
Total recognised gains and losses relating
to the year (20,259,628) (461,658)
Note of historical cost profits and losses
2003 2002
# #
Reported loss on ordinary activities before
taxation (20,259,628) (230,248)
Difference between an historical cost 747 7,121
depreciation charge and the actual
depreciation charge of the year calculated on
the revalued amount
Historical cost loss on ordinary activities
before taxation (20,258,881) (223,127)
Historical cost loss for the year retained
after taxation, extraordinary items and
dividends (20,258,881) (223,127)
BALANCE SHEET
AS AT 31 MAY 2003
2003 2002
# # # #
Fixed assets
Tangible assets - 957,455
Investments - 3,618,498
- 4,575,953
Current assets
Debtors 4,270 16,341,223
Cash at bank and in hand 18,294 -
22,564 16,341,223
Creditors: amounts falling
due within (22,062) (50,384)
one year
Net current assets 502 16,290,839
Total assets less current liabilities 502 20,866,792
Creditors: amounts falling
due after - (393,133)
more than one year 502 20,473,659
Capital and reserves
Called up share capital 9,993,440 9,993,440
Share premium account 10,793,236 10,793,236
Revaluation reserve - 213,529
Profit and loss account (20,786,174) (526,546)
Shareholders' funds - 502 20,473,659
equity interests
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2003
2003 2002
# # # #
Net cash inflow/(outflow) from operating
activities (158,196) (354,073)
Returns on investments and servicing
of finance
Interest received 644 3,774
Interest paid (18,532) (29,331)
Net cash inflow for returns on
investments and (17,888) (25,557)
servicing of finance
Disposal of fixed assets
Receipts from sales of tangible assets 744,095 -
Net cash inflow/(outflow) for capital
expenditure
Cost on disposal of subsidiary undertakings (215,636) -
Net cash inflow/(outflow) before
management of 352,375 (379,630)
liquid resources and financing
Repayments of loan to subsidiary. 99,352
Increase/(Decrease) in cash in the 451,727 (379,630)
year
Notes
1 Loss per share
Loss per ordinary share is calculated by dividing the loss attributable to
shareholders by the weighted average number of shares in issue during the
year.
2003 2002
# #
Loss attributable to shareholders (20,259,628) (230,248)
Weighted average number of shares in issue 99,934,398 99,934,398
Loss per ordinary share - basic and diluted (20.3) (0.2)
As a loss has been incurred in the year ended 31 May 2003, the exercise of
share options would not have been dilutive. Accordingly, the basic and
diluted loss per share are the same.
2 The financial information set out in this document does not constitute
statutory group accounts.
3 The consolidated profit and loss account, balance sheet and cash flow
statement for the year ended 31 May 2002 shown above have been extracted from
the statutory accounts for that year on which the auditors gave an unqualified
opinion. The report and accounts for the year to 31 May 2003 will be posted to
shareholders and, after being laid before the Annual General Meeting, will be
delivered to the Registrar of Companies.
4 The preliminary announcement was approved by the Board of Directors on 28
November 2003.
5 The Board of Directors does not propose to pay a dividend.
6 Copies of the report and accounts for the year ended 31 May 2003
will be sent to shareholders within the next seven days and copies may also be
obtained on written request to the Company Secretary, Level 2, Saltire Court, 20
Castle Terrace, Edinburgh EH1 2ET.
This information is provided by RNS
The company news service from the London Stock Exchange
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