Interim Results
May 31 2005 - 5:24AM
UK Regulatory
RNS Number:9174M
Emerging UK Investments Plc
31 May 2005
FOR IMMEDIATE RELEASE
31 May 2005
Emerging UK Investments PLC
("EUKI" or "the Company")
Chairman's Statement
Interim Financial Results for the period ended 28 February 2005
I am pleased with the progress of the Company since being admitted to trading on
AIM in December 2004. There have been a number of positive developments with the
existing portfolio. In February 2005 Skin Health Spa plc, now the parent of
Longlife Health Limited, commenced trading on Ofex at a premium to its book
value. EUKI is currently, in line with its investment strategy, actively looking
to dispose of this holding.
Further, in January shares in Valley Schools Ltd's holding company Valley
Schools Group plc were sold by a third party utilising the 535x facility which
valued the company at #3.5m compared to a valuation in the books of EUKI of
#1.9m. The book value of Valley Schools Ltd is currently #225,000, this implied
uplift in value has therefore added significantly to the value of EUKI's stake
in this company.
No uplift in the value of these investments has been recognised in these interim
financial results.
Unfortunately, Warmways Healthcare Holdings plc has recently announced very
disappointing results for the year ended 31 December 2004. I believe that
Warmways will need to secure additional funding and that this will dilute the
Company's shareholding in Warmways. In view of the current financial position of
Warmways a decision has been taken to write down the value of our investment in
that company by half, a total write down of #112,000.
Over the next twelve months there are a number of the existing portfolio which
we hope should be admitted to trading on various junior markets. In particular
there is good progress at Drug Treatment plc.
Looking ahead to the acquisition of additional new investments, EUKI is in
advanced negotiations with a number of companies in which we may take an equity
stake.
The Directors have considered the valuation of the current portfolio and
consider that, other than in respect of Warmways, there has not been any
permanent diminution in value that requires adjustment.
Please also make note of the change of our Registered Office and Business
Address to :
4 Sovereign Court, Gresham Street, Birmingham B1 3JR
I look forward to keeping you informed of future developments as we go forward.
Renwick Haddow
Chairman
For Further information contact:
Renwick Haddow, Chairman 07966 130182
Andy Moore, Director 07836 722840
Emerging UK Investments Plc
Roland Cornish or Noelle Greenaway 020 7628 3396
Beaumont Cornish Limited
Nominated Advisor
UNAUDITED INTERIM FINANCIAL INFORMATION OF EMERGING UK INVESTMENTS PLC FOR THE
PERIOD ENDED 28 FEBRUARY 2005
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Period
ended 28
February
2005
(unaudited)
#'000
Administrative expenses (90)
---------
Operating loss (90)
---------
Provision for permanent diminution in value of fixed asset
investment (112)
---------
Loss on ordinary activities before taxation (202)
Taxation -
---------
Retained loss for the period (202)
=========
All results derive from continuing operations of the Company.
There are no recognised gains or losses other than the loss for the period.
CONSOLIDATED BALANCE SHEET
As at 28
February
2005
(unaudited)
Notes #'000
Fixed assets
Fixed asset investments 1,037
Current assets
Debtors 2 6
Cash at bank and in hand 80
---------
Creditors: amounts falling due within one year 3 86
(1)
---------
Net current assets 85
---------
Total assets less current liabilities 1,122
---------
Net assets 1,122
=========
Capital and reserves
Called up share capital 4 89
Share premium 5 163
Other reserve 5 1,072
Profit and loss account 5 (202)
---------
Equity shareholders' funds 6 1,122
=========
CONSOLIDATED CASH FLOW STATEMENT
Period
ended 28
February
2005
(unaudited)
Notes #'000
Net cash (outflow) from operating activities 7 (95)
---------
Cash (outflow) before financing (95)
Financing
Issue of ordinary share capital 175
---------
Net cash inflow from financing 175
---------
Increase in cash in the period 80
=========
Reconciliation of net cash flow to movement in net debt
Increase in cash in the period 80
Opening net funds -
---------
Closing net funds 80
=========
NOTES TO THE INTERIM FINANCIAL INFORMATION
1. Accounting policies
The interim financial information has been prepared on the historical cost basis
and in accordance with applicable accounting standards. The interim financial
results are unaudited.
Basis of consolidation
The interim financial information consolidates the financial statements of the
Company and its subsidiary undertaking, Emerging Investments UK Limited. The
acquisition of Emerging Investments UK Limited by the Company has been accounted
for using the principles of merger accounting.
Fixed asset investments
Fixed asset investments are stated at the lower of cost and valuation. Valuation
is assessed by the directors in accordance with the Valuation Guidelines
published by the British Venture Capital Association on the following basis:
(i) Investments in private companies are valued according to their stage of
development. Early stage investments, being those in immature companies
including seed, start-up and early stage situations, are valued at cost less any
provision considered necessary, until no longer viewed as being early stage or
unless a significant arm's length transaction involving an independent third
party occurs at a materially different valuation. Investments in more mature
companies having a maintainable earnings trend and from which an exit can
reasonably be foreseen are periodically revalued by reference to an assessment
of open market value.
(ii) Quoted investments are valued using the quoted market price, discounted if
the shareholding is significant in relation to the issued share capital of a
small quoted company.
A review of permanent diminution in value is undertaken by reference to the
activities and additional funding and investment opportunities of investee
companies after the balance sheet date.
2. Debtors
As at 28
February
2005
#'000
Prepayments 6
========
3. Creditors: amounts falling due within one year
As at 28
February
2005
#'000
Accruals 1
========
4. Share capital
As at 28
February
2005
#'000
Authorised:
15,000,000 ordinary shares of 1p each 150
=========
Issued and fully paid:
8,860,000 ordinary shares of 1p each 89
=========
5. Reserves
Profit Share Other
and loss premium reserve Total
#'000 #'000 #'000 #'000
As at 27 May 2004 - - - -
Loss for the period (202) - - (202)
Issue of equity shares - 168 - 168
Expenses of equity issue of shares - (5) - (5)
Issue of equity shares to acquire
subsidiary - - (76) (76)
Share premium in subsidiary acquired - - 1,148 1,148
-------- -------- -------- --------
As at 28 February 2005 (202) 163 1,072 1,033
======== ======== ======== ========
6. Reconciliation of movement in shareholders' funds
Period
ended 28
February
2005
#'000
Loss for the period (202)
Issue of equity shares 1,324
--------
Closing shareholders' funds 1,122
========
7. Reconciliation of operating loss to operating cash flows
Period
ended 28
February
2005
#'000
Operating loss (90)
(Increase) in debtors (6)
Increase in creditors 1
--------
Net cash (outflow) from operating activities (95)
========
8.
The unaudited interim financial information, which is the responsibility of the
directors and was approved by them on 31 May 2005 does not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985.
Copies of this Interim statement are available from the Company at its
registered office:
4 Sovereign Court, Gresham Street, Birmingham B1 3JR for a period of one month,
free of charge.
Emerging UK Investments PLC
Independent review report to Emerging UK Investments PLC
Introduction
We have been instructed by the company to review the financial information for
the period from incorporation on 27 May 2004 to 28 February 2005 which comprises
a consolidated profit and loss account, consolidated balance sheet, consolidated
cash flow statement and associated notes numbered 1 to 8. We have read the other
information contained in the interim report and considered whether it contains
any apparent misstatements or material inconsistencies with the financial
information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report and for ensuring that the
accounting policies and presentation applied to the interim figures are
consistent with those applied in preparing the preceding annual accounts except
where any changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of management and applying analytical
procedures to the financial information and underlying financial data and based
thereon, assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with United Kingdom Auditing Standards and therefore provides a lower
level of assurance than an audit. Accordingly, we do not express an audit
opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the period ended 28
February 2005.
Spofforths
Chartered Accountants
31 May 2005
30 Worthing Road
Horsham
West Sussex
RH12 1SL
This information is provided by RNS
The company news service from the London Stock Exchange
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