Interim Results
January 26 2007 - 1:01AM
UK Regulatory
RNS Number:1660Q
Capital Ideas PLC
26 January 2007
CAPITAL IDEAS PLC
Interim results for the six months ended 31 October 2006
Chairman's statement
Results
I am pleased to report on the trading for the first half ended 31 October 2006.
During the last six months a pre-tax loss of #31,000 (pre-tax profit #178,000)
has been reported as no asset disposals were made within the period.
Capital Ideas acquired stakes in three companies over the six months, namely
Tower Input Limited, Traction Technology plc and Turnaround Capital plc. These
took the total number of investments to nine. Forknall Limited, a fencing
manufacturer in which the Company had invested #21,000 went into liquidation
during the period
The last six months has seen an increase in the portfolio of investments,
however there were no asset realisations during this period. This position is
expected to reverse in the second half with a number of realisations already in
the pipeline.
Progress
The second half has started well with the admission of Consolidated Vending plc
to AIM. The Company's holding in this company is currently valued at a premium
to its book value of #30,000 We are scheduled to dispose of this by the end of
March 2007.
Traction Technology plc was admitted to AIM in December 2006 and our investment
in this business was disposed of before admission, realising a profit of
#24,000.
Turnaround Capital plc: the Company has a holding in this business which has a
book value of #22,000. Arrangements are in place to dispose of this shareholding
in the first half of 2007.
Europol International plc: the Company has a book value investment of #101,000
and this investment is currently being marketed via an IPO Offer which should
result in its partial or total disposal
As mentioned above, Forknall Limited, which had a book value of #21,000, was
written off during the first half as the company went into liquidation. The
board has reviewed the other investments and considers there is no need for any
further impairment.
Outlook
The second half should result in the total or partial disposal of at least two
further investments, Turnaround Capital plc and Europol International plc. In
addition, the Company has already disposed of its shareholding in Traction
Technology plc.
We are currently reviewing a number of attractive investment opportunities and
are confident of the future prospects of the Company.
Renwick Haddow, Chairman
For further information
Renwick Haddow Tel: +44 (0)207 623 3345
Zoe Biddick, Biddicks Tel: +44 (0)207 448 1000
CAPITAL IDEAS PLC
Profit and loss account
for the six months ended 31 October 2006
Note Six months Six months Year
ended 31 ended 31 ended 30
October 2006 October 2005 April 2006
Unaudited Unaudited Audited
#000 #000 #000
Turnover 2 13 281 438
Cost of sales (1) (46) (46)
-------- -------- --------
Gross profit 12 235 392
Administrative expenses (28) (56) (100)
-------- -------- --------
Operating (loss)/profit (16) 179 292
Loss on disposal of assets 3 (21) (1) (4)
-------- -------- --------
(Loss)/profit on ordinary
activities before interest (37) 178 288
Interest payable and similar
charges - - -
Interest receivable and similar
income 6 - 13
-------- -------- --------
(Loss)/profit on ordinary
activities before taxation (31) 178 301
Tax on loss on ordinary
activities 4 11 - (34)
-------- -------- --------
Retained (loss)/profit
for the financial period (20) 178 267
======== ======== ========
(Loss)/earnings per
ordinary share
Basic and fully diluted 5 (0.008)p 0.09p 0.12p
======== ======== ========
Balance sheet
at 31 October 2006
Note Six months Six months Year
ended 31 ended 31 ended 30
October 2006 October 2005 April 2006
Unaudited Unaudited Audited
#000 #000 #000
Fixed assets
Investments 6 221 97 164
-------- -------- --------
221 97 164
-------- -------- --------
Current assets
Debtors 7 192 93 281
Cash at bank and in hand 16 205 16
-------- -------- --------
208 298 297
Creditors: amounts falling
due within one year (46) (90) (67)
-------- -------- --------
Net current assets 162 208 230
-------- -------- --------
Total assets less current
liabilities 383 305 394
Creditors: amounts falling due
after more than one year - - -
-------- -------- --------
Net assets 383 305 394
======== ======== ========
Capital and reserves
Called up share capital 1,410 1,410 1,410
Share premium account 1,093 1,093 1,093
Revaluation Reserve 9 - -
Profit and loss account (2,129) (2,198) (2,109)
-------- -------- --------
Equityshareholders' funds 8 383 305 394
======== ======== ========
Cash flow statement
for the six months ended 31 October 2006
Note Six months Six months Year
ended 31 ended 31 ended 30
October 2006 October 2005 April 2006
Unaudited Unaudited Audited
#000 #000 #000
Net cash inflow from
operating activities 9 10 133 37
Returns on investment and
servicing of finance 6 - 13
Capital expenditure and
financial investments (16) (97) (164)
Acquisitions and disposals - (1) (4)
-------- -------- --------
Cash inflow/(outflow)
before financing - 35 (118)
Financing - 129 93
-------- -------- --------
Increase in cash and cash
equivalents in the period - 164 (25)
Cash and cash equivalents
at start of the period 16 41 41
-------- -------- --------
Cash and cash equivalents
at end of the period 16 205 16
======== ======== ========
Reconciliation of net funds
1 May Cash flow Non-cash 31 October
2006 Movement 2006
#000 #000 #000 #000
Cash at bank and in hand 16 - - 16
========= ======== ========= ========
Notes
1 BASIS OF PREPARATION
The Directors approved the interim financial statements on 20 January 2007. The
interim financial information for the six months to 31 October 2006 is unaudited
and has been prepared based on the accounting policies set out in the statutory
accounts for the year ended 30 April 2006. These accounting policies are also
expected to be adopted in the statutory accounts for the year ended 30 April
2007. The interim financial information for the six months ended 31 October 2006
does not constitute statutory accounts as defined in Section 240 of the
Companies Act 1985. The statutory accounts for the year ended 30 April 2006,
which received an unqualified auditors' report, have been delivered to the
Registrar of Companies.
2 TURNOVER
The main activity of the Company remains that of investment in companies and
hence reported turnover in the period represents proceeds receivable on the part
or full disposal of such investments and the provision of related services.
3 LOSS ON DISPOSAL OF ASSETS
During the period the Company wrote off #21,000 (#6,000 investments and #15,000
debtors) following the liquidation of Forknall Limited.
Upon disposal of The International Academy plc on 22 August 2003, it was agreed
that the Company would receive a deferred consideration based on the future
performance of The International Academy plc. During the six month period to 31
October 2005, this consideration was renegotiated to a single sum of #50,000.
This income was off-set by a warranty claim by the purchaser of The
International Academy plc for #48,000 in respect of taxation, plus #3,000 in
respect of professional fees resulting from the claim. The net effect of this
transaction was a #1,000 loss on the disposal of the operation in the period to
31 October 2005. A further #3,000 of professional fees were subsequently
incurred in respect of this matter, thereby resulting in an overall loss of
#4,000 for the year to 30 April 2006.
4 TAXATION
A tax liability of #34,000 was provided for in respect of the year ended 30
April 2006. Upon calculation of the actual liability this amount was reduced by
#8,000 to #26,000. This adjustment combined with the tax credit of #3,000,based
on the taxable losses for the period to 31 October 2006, results in an overall
corporation tax credit of #11,000 for the period to 31 October 2006.
5 (LOSS)/EARNINGS PER ORDINARY SHARE
The calculation of basic earnings per share is based on losses of #20,000 (six
months ended 31 October 2005: profits of #178,000, year ended 30 April 2006:
profits of #267,000) and ordinary shares of 236,130,555 (31 October 2005:
194,463,888 shares, 30 April 2006: 215,297,222) being the weighted average
number of ordinary shares in issue during the period. The 0.9p deferred shares
in existence do not have rights to either dividends or the assets of the Company
and have therefore been discounted from the weighted average calculation.
The profit for the period and the weighted average number of ordinary shares for
the purposes of calculating the fully diluted earnings per share are the same as
for the basic earnings per share calculation. This is because exercise of the
outstanding warrants would have no effect on the calculated earnings per
ordinary share and would therefore not be dilutive under the terms of Financial
Reporting Standard No. 22 (FRS 22).
6 INVESTMENTS
Six months Six months Year
ended 31 ended 31 ended 30
October 2006 October 2005 April 2006
#000 #000 #000
Unlisted Investments
Value held as at
start of period 164 - -
Additions 54 112 193
Disposals (6) (15) (29)
Revaluations 9 - -
-------- -------- --------
Value held as at
end of period 221 97 164
======== ======== ========
7 DEBTORS
Six months Six months Year
ended 31 ended 31 ended 30
October 2006 October 2005 April 2006
#000 #000 #000
Loans:
As at start of period 195 - -
New advances 1 40 200
Repayments and
redemptions (70) - (5)
-------- -------- --------
As at end of period 126 40 195
Trade debtors 10 - -
Prepayments 11 1 16
Other debtors 45 52 70
-------- -------- --------
192 93 281
======== ======== ========
8 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS FUNDS
Six months Six months Year
ended 31 ended 31 ended 30
October 2006 October 2005 April 2006
#000 #000 #000
(Loss)/profit for the
financial period (20) 178 267
New share capital subscribed
(including premium and expenses) - 129 129
Revaluation of investments 9 - -
Opening shareholders' funds 394 (2) (2)
-------- -------- --------
Closing shareholders'funds 383 305 394
======== ======== ========
9 RECONCILIATION OF OPERATING LOSS TO OPERATING CASH FLOWS
Six months Six months Year
ended 31 ended 31 ended 30
October 2006 October 2005 April 2006
#000 #000 #000
Operating (loss)/profit (37) 179 292
Decrease/(increase) in debtors 89 (89) (277)
(Decrease)/increase in creditors (10) 43 22
Loans and debtors converted
into equity (38) - -
Investments written-off 6 - -
-------- -------- --------
Net cash inflow from
operating activities 10 133 37
======== ======== ========
10 COPIES OF INTERIM REPORT
Copies of the interim report are available from the Company's Registered Office
at 4 Sovereign Court, Graham Street, Birmingham, B1 3JR.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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