Interim Results
February 10 2003 - 6:48AM
UK Regulatory
London Asia Capital plc
Interim Statement for the six months ended 30th November 2002
London Asia Capital plc
Chairman's Statement
I am pleased to announce that the Company has returned to profit in the six
months to 30th November 2002. We are continuing to reduce running costs and the
period has seen the disposal of our holdings in several companies. Despite the
very difficult funding environment Idiom Holdings Ltd, an Irish based SMS
messaging services business in which your Company has a significant stake and a
seat on the Board, has recently obtained second round funding and the valuation
at which we hold the investment in our accounts has been adjusted accordingly.
The future of the Company lies in the opportunities available in Greater China
as a result of the rapid economic changes there arising from the continuing
shift to a market economy, and its recent entry to WTO. China is the fastest
growing major economy in the world, and there is increasing recognition of the
opportunities there, both in terms of its low cost manufacturing capabilities
and the size of the potential market there as the population becomes
increasingly wealthy and consumer orientated. We have made three investments in
China in the period which have substantially improved the asset base of the
Company. The profits and cash flow generated from these businesses will assist
the development of the Company going forward. We have received unaudited
numbers from our Chinese financial software business, Beijing Success Ltd, in
which we acquired a 24.8% stake in November 2002, which indicate that it has
beaten its budgeted profit for the year ended 31st December 2002 of �750,000.
We have an option to increase our stake in Beijing Success to 51%.
We announced in November 2002 that we were seeking to appoint a new Chairman. I
am delighted to announce that Jack Wigglesworth has agreed to join the Company
as Chairman. Jack has had a distinguished career in the City working for a
variety of organisations, including ABN Amro, Phillips & Drew and J.P Morgan,
and was formerly Chairman of the London International Financial Futures and
Options Exchange (LIFFE). Jack is currently Deputy Chairman of UK listed
investment bank Durlacher Corporation plc, Chairman of Hackney Council's
Education Action Zone and on the Board of several private companies. Jack's
many years of experience in the City will be of great value to the Company
going forward as we seek to expand our business.
Despite the current difficult economic climate and uncertainty, we feel
confident that our focus on one of the few growth areas in the world will
return value to shareholders.
Simon Littlewood
Chairman
10 February 2003
London Asia Capital plc
Unaudited profit and loss account
For the six months ended 30 November 2002
Six months Six months Year ended
ended ended
31 May 2002
30 November 30 November
2002 2001
(Unaudited) (Unaudited) (Audited)
�'000 �'000 �'000
(Loss) / profit on sale of (12) (16) 18
investments
Other operating income - 61 47
Administrative expenses (113) (241) (441)
Operating (loss) / profit (125) (196) (376)
Interest receivable 1 1 3
Interest payable 12 - (25)
Amounts written back to/(off) 212 (1,323) (3,178)
investments
Profit/(loss) on ordinary 76 (1,518) (3,576)
activities before taxation
Taxation - - -
Retained profit/(loss) for the 76 (1,518) (3,576)
financial period
Basic and diluted earnings/ 0.47p (18.77)p (32.4)p
(loss) per ordinary share
All amounts are derived from continuing operations.
There were no recognised gains or losses not dealt through profit and loss
account.
London Asia Capital plc
Unaudited balance sheet
As at 30 November 2002
30 November 31 May
2002 2002
(Unaudited) (Audited)
�'000 �'000 �'000 �'000
Fixed assets
Tangible assets - -
Fixed asset investments 345 -
Investments 449 267
Current assets
Debtors 78 48
Investments 295 434
Cash at bank and in hand 18 72
391 554
Creditors: amounts falling (231) (184)
due within one year
Net current assets / 160 370
(liabilities)
954 637
Creditors: amounts falling (110) (170)
due after more than one year
Total assets less 844 467
liabilities
Capital and reserves
Called up share capital 1,002 701
Share premium account 5,758 5,758
Profit and loss account (5,916) (5,992)
Equity shareholders' funds 844 467
Comparative figures have not been shown for 30 November 2001,
due to the significant write offs subsequent to that date
Reconciliation of movements in shareholders' funds
30 November 30 November 31 May 2002
2002 2001
(Unaudited) (Unaudited) (Audited)
�'000 �'000 �'000
Profit/(loss) for the period 76 (1,518) (3,576)
Issue of ordinary share 301 301 301
capital
Net increase/(decrease) in 377 (1,217) (3,275)
shareholders' funds
Opening shareholders' funds 467 3,742 3,742
Closing shareholders' funds 844 2,525 467
London Asia Capital plc
Unaudited cash flow statement
For the six months ended 30 November 2002
Six months Six months Year ended
ended ended
31 May 2002
30 November 30 November
2002 2001
(Unaudited) (Unaudited) (Audited)
�'000 �'000 �'000 �'000 �'000 �'000
Net cash movement from (90) (128) (375)
operating activities
Returns on investment
Interest received 1 1 3
Interest Paid (12) - (25)
Net cash movement from (11) 1 (22)
returns on investments
Taxation
Taxation paid - (57) (57)
Capital expenditure
Purchase of investments (44) - -
Sale of investments 201 203 289
Net cash movement from 157 203 289
capital expenditure
Acquisitions and disposals
Payments to acquire (345) - -
investments in associates
Net cash movement before (289) 19 (165)
management of liquid
resources and financing
Financing
Proceeds from ordinary share 301 301 301
capital
Repayment of Bank Loan (60) - (60)
Net cash inflow from 241 301 241
financing
Movement in cash 48 320 76
London Asia Capital plc
Notes to the interim results
1. Basis of preparation
The results for the six months ended 30 November 2002 are unaudited and have
not been reviewed by the Auditors. They have been prepared on accounting bases
and policies that are consistent with those used in the preparation of the
financial statements of the company for the year ended 31 May 2002.
The financial statements contained in this report do not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985. The
results for the year ended 31 May 2002 were reported on by the auditors and
received an unqualified audit report. Full accounts for the year ended 31 May
2002 have been delivered to the Registrar of Companies.
2. Significant accounting policies
Investments
Investments are included in the financial statements at cost, less provisions
for permanent diminution in value. Income from investments is recognised on the
basis of receipt.
Unlisted investments have been disclosed as a separate classification on the
company's balance sheet. In the directors' opinion, this presentation is
necessary in order to present a true and fair view, since the company's holding
of unlisted investments cannot be considered either as current assets
specifically held for resale or as fixed assets to be held for the long term.
The nature of the company's activities is such that the unlisted investments,
whilst held potentially for the long term, are nonetheless available for
disposal, depending on market conditions and commercial judgements of the
directors.
The afore-mentioned presentation of unlisted investments was previously applied
to all investments held by the company. However, the company has now
re-classified its listed and quoted investments as current asset investments,
as the company's intention is to realise these investments within the
foreseeable future.
3. Earnings per share
The calculation of the basic earnings per share is based on the profit after
tax of �76,000 on 16,058,639 ordinary shares being the weighted average number
of ordinary shares in issue during the year.
There is no dilutive effect of options and warrants due to the fair price of
the shares during the period being less than the exercisable price of these
options and warrants.
4. Dividend
The directors do not recommend the payment of an interim dividend.
5. Matters required under Schedule 2(f) of the AIM Rules in respect of
appointment of director
Full name of proposed director: Jack Wigglesworth
Age: 61
Names of current and past directorships in the past five years:
Current Past
Capital Value Brokers Limited LIFFE (Holdings) plc
Gresham College Trust Securities Institute
Cablenet International Limited LIFFE Administration and Management
Limited
Financial Services National LIFFE Trustees Limited
Training Organisation
Deacons Heights Residents' The Futures and Options Association
Association (1-8) Limited
LitComp Plc London Commodity Exchange (1986)
Limited
Majorband Limited ABN AMRO Futures Limited
Durlacher Corporation plc Stace Barr Angerstein plc
SBA Underwriting Limited
Clivia Limited
Mavicom Limited
There are no matters to be disclosed under Schedule 2(f) (iii) - (viii)
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