CAP.MAN.& INV Capital Management & Investment Plc : Interim Results
October 29 2014 - 4:58AM
UK Regulatory
TIDMCMIP
Capital Management and Investment PLC
("CMI" or the "Company")
Interim Results for the six month period ended 31 July 2014
Chairman's Statement
Introduction
As at 31 July 2014 the Company had two investments: a 2.8% (2013 - 2.8%)
shareholding in Algeco Scotsman Holdings ("ASH") and a 7% (2013 - 7%)
shareholding in Magticom. The fair value of the Company's investment in
ASH was increased as at 31(st) January 2014 to reflect recent
performance and also recognise the receipt of the distribution of cash
to Shareholders from the share capital reduction paid by ASH in October
2013. The fair value of the Company's investment in Magticom remains
unchanged.
Results for the period
The Consolidated Income Statement shows a loss before tax of GBP0.214m
(2013 - Loss GBP0.191m).
Other income of GBP0.118m (2013 - GBP0.121m) comprises GBP0.058m (2013 -
GBP0.058m) fees paid by ASH in relation to the monitoring of our
investment and GBP0.06m (2013 - GBP0.063m) from Yola Investments SARL in
relation to monitoring fees of our investment in Magticom.
Administrative expenses of GBP0.337m (2013 - GBP0.312m) include
GBP0.125m (2013 - GBP0.125m) payable for office services. Your Board
continues to look to minimise administrative expenses where possible.
Net asset value ("NAV") per share is GBP3.63 (2013 - GBP3.51) and the
Company had net cash balances of GBP6.808m (31 July 2013 - GBP0.886m, 31
January 2014 - GBP7.088m) at the period end.
Investment in Algeco Scotsman Holdings ("ASH")
EBITDA for ASH was EUR390m for the year to December 2013 (year to
December 2012 - EUR372m). The Directors of the Company valued the
shareholding using peer group EBITDA multiples (discounted to reflect
the lack of marketability of the shareholding) and adjusted for debt
(including the US $400m payment in kind loan announced in 2013) in line
with International Private Equity Valuation Guidelines. In adopting
these principles, the Board reduced the total carrying value of its 2.8%
equity holding to EUR24.250m equating to GBP19.905m (2013 - EUR27.740m
equating to GBP23.765m) in the Company's statutory accounts for the year
to 31(st) January 2014. The restatement of this figure to GBP19.224m as
at 31 July 2014 is due to foreign exchange movements.
Investment in Yola Investments Sarl ("Yola")
The Company holds an indirect investment of 7% in Magticom, the largest
mobile telephone operator in The Republic of Georgia via its 33%
shareholding in Yola Investments Sarl. Yola owns 43% of Metromedia
International Group ("MIG") which in turn owns 46% of Magticom.
Trading at Magticom continues to be difficult in a challenging economic
and competitive environment. As announced in the Company's full year
results to 31(st) January 2014, Magticom's EBITDA for the year to
December 2013 fell from US $87m to US $74m.
On 30 June 2014, MIG, LLC and ITC Cellular, LLC (MIG LLC's wholly owned
subsidiary) (collectively, the "Debtors") each filed a voluntary
petition for relief under Chapter 11 of the United States Bankruptcy
Code in the United States Bankruptcy Court for the District of Delaware.
The cases are pending before the Honorable Kevin Gross and are jointly
administered under Case No. 14-11605.
The Board believes that the 46% shareholding that MIG holds in Magticom
is worth less than the value of the loan notes to third parties,
outstanding in MIG, as the value of the outstanding loan notes of c.US
$252m is higher than a likely exit value based on a multiple of EBITDA.
Consequently, the Board continue to show the carrying value of its
shareholding in Yola in the Financial Statements at GBPNil.
Strategy going forward
CMI continues to actively monitor its investments in Yola and ASH
through regular meetings with the management teams of ASH and Magticom,
receipt of monthly financial reports, and attendance at board meetings.
Your Board takes the view that the market capitalisation of CMI should
move broadly in line with the value of the underlying investments in ASH
and Yola. The market price at which CMI shares trade represents a
significant discount to NAV at the balance sheet date. Your Board
believes that part of the reason for this is both the illiquidity of the
shares and the current illiquidity of the investments that it holds.
Dividends
The Board is not recommending payment of a dividend for the period under
review (2013 - GBPNil).
Giles Davies
Chairman
29 October 2014
Consolidated Income Statement
for the six month period ended 31 July 2014
Unaudited Unaudited Audited
Six months Six months Twelve months
Ended Ended Ended
31 July 2014 31 July 2013 31 January 2014
GBP'000 GBP'000 GBP'000
Fair value gain on investments - - 3,486
Other income 118 121 244
118 121 3,730
Administrative expenses (337) (312) (744)
Operating (loss)/profit (219) (191) 2,986
Finance income 5 - -
(Loss)/profit before tax (214) (191) 2,986
Taxation 1 - (9)
(Loss)/profit for the period (213) (191) 2,977
Basic (loss)/profit per 2 GBP(0.03) GBP(0.03) GBP0.42
share
Fully diluted (loss)/profit per GBP(0.03) GBP(0.03) GBP0.41
share
Consolidated Statement of Changes in Equity
As at 31 July 2014
Foreign
Currency
Share Share Premium Merger Translation Retained Total
Capital Account Reserve Reserve Earnings Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at 31 January 2013 7,162 40,305 1,693 37,736 (62,120) 24,776
Total comprehensive income/(expense) for
the period - - - 512 (191) 321
Share options charge - - - - 12 12
Balance as at 31 July 2013 7,162 40,305 1,693 38,248 (62,299) 25,109
Total comprehensive expense for the
period - - - (1,375) 3,168 1,793
Share options charge - - - - 2 2
Balance as at 31 January 2014 7,162 40,305 1,693 36,873 (59,129) 26,904
Total comprehensive expense for the
period - - - (681) (213) (894)
Balance as at 31 July 2014 7,162 40,305 1,693 36,192 (59,342) 26,010
Consolidated Balance Sheet
As at 31 July 2014
Unaudited Unaudited Audited
Six
Six months months Twelve months
Ended Ended Ended
31 July 2014 31 July 2013 31 January
2014
GBP'000 GBP'000 GBP'000
ASSETS
Non Current assets
Investments 19,224 24,278 19,905
19,224 24,278 19,905
Current assets
Trade and other receivables 262 258 127
Cash and cash equivalents 6,808 886 7,088
Total Current Assets 7,070 1,144 7,215
Total Assets 26,294 25,422 27,120
LIABILITIES
Current Liabilities
Trade and other payables (255) (275) (181)
Corporation tax payables (29) (38) (35)
Total Current Liabilities (284) (313) (216)
TOTAL NET ASSETS 26,010 25,109 26,904
EQUITY
Share capital 7,162 7,162 7,162
Share premium accounts 40,305 40,305 40,305
Merger reserve 1,693 1,693 1,693
Foreign currency translation
reserve 36,192 38,248 36,873
Retained earnings (59,342) (62,299) (59,129)
TOTAL EQUITY 26,010 25,109 26,904
Consolidated Cash Flow Statement
For the six months ended 31 July 2014
Unaudited Unaudited Audited
Six months Six months Twelve months
Ended Ended Ended
31 July 2014 31 July 2013 31 January 2014
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
(Loss)/profit for the period (213) (191) 2,977
Adjustments for:
Fair value gain on investment - - (3,486)
Finance income (5) - -
Foreign exchange losses/(gains) 45 (15) 23
Equity settled share based payment expense - 12 14
Income tax (credit)/expense (1) - 9
(174) (194) (463)
Cash flows from operating activities before changes
in working capital and provisions
Increase in trade and other receivables (135) (71) (101)
Decrease in trade and other payables 68 26 60
(67) (45) (41)
Cash outflow from operations (241) (239) (504)
Income taxes paid - - -
Net cash flows from operating activities (241) (239) (504)
Investing activities Share
capital redemption by ASH - - 6,351
Interest received - - -
Net cash generated from investing activities - - 6,351
Share capital issued net of expenses - - -
Net cash from financing activities - - -
Net (decrease)/increase in cash and cash
equivalents (241) (239) 5,847
Cash and cash equivalents at beginning of the
period 7,088 1,111 1,111
Exchange (losses)/gains on cash and cash
equivalents (39) 14 130
Cash and cash equivalents at end of the period 6,808 886 7,088
Notes
1 Basis of Preparation
These financial statements have been prepared in accordance with
International Financial Reporting Standards, International Accounting
Standards and Interpretations (collectively IFRS) issued by the
International Accounting Standards Board (IASB) as adopted by European
Union ("adopted IFRSs"), and are in accordance with IFRS as issued by
the IASB and with those parts of the Companies Act 2006 applicable to
companies preparing their financial statements in accordance with IFRS.
The principal accounting policies used in preparing the interim results
are those the Group expects to apply in its financial statements for the
year ended 31 January 2015 and are unchanged from those disclosed in the
Group's Report and Financial Statements for the year ended 31 January
2014.
The financial information for the six months ended 31 July 2014 and 31
July 2013 is unreviewed and unaudited and does not constitute the
Group's statutory financial statements for those periods. The
comparative financial information for the full year ended 31 January
2014 has however been derived from the audited statutory financial
statements for that period. A copy of those statutory financial
statements has been delivered to the Registrar of Companies. The
Auditors' reports on those accounts were unqualified, did not include
reference to any matters to which the Auditors drew attention by way of
emphasis without qualifying their report and did not contain a statement
under section 498(2) or 498(3) of the Companies Act 2006.
2 Earnings per ordinary share
The basic and diluted loss per share of GBP0.03 (2013 - GBP0.03 per
share) is calculated by reference to the loss after taxation of
GBP213,000 (2013 - Loss GBP191,000) and the weighted average number of
ordinary shares in issue during the year of 7,162,133 (2013 -
7,162,133).
Unaudited Six Unaudited Six
months ended months ended Audited Twelve
31 July 2014 31 July 2013 months ended 31 January 2014
Basic number of
shares 7,162,133 7,162,133 7,162,133
3 Interim Report
Copies of the interim report are available from the Company Secretary,
Capital Management & Investment PLC, 54 Baker Street, London W1U 7BU. A
copy will also shortly be placed on the Company's website
www.cmi-plc.co.uk.
Contact:
Tim Woodcock, Capital Management and Investment plc 020 7725 0800
Jonny Franklin-Adams / Alex Wright, N+1 Singer 020 7496 3000
This announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Capital Management & Investment Plc via Globenewswire
HUG#1866681
http://www.cmi-plc.co.uk/
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