EARLY EQUITY PLC: Unaudited Final Results
Early Equity Plc
("Early Equity" or "the Company")
Unaudited Final Results I am pleased to present the results for Early Equity Plc for the year ended 31 August 2012. Highlights * Pre tax profit of £204 (2011 : loss of £65,244) after recognising profit of £65,282 on sale of investments. * Profit on sale of investment £65,282 realised by sales of shares in Alpha Prospects Plc and Perform Marketing Limited. * Investment portfolio stated at cost, less impairment provisions - £202,743 (2011 : £234,159).
* Value of the investment in Tangibal Group Plc quoted on Frankfurt Börse and
Alpha Prospects Plc quoted on ISDX continue to stand at premium to cost. * Net assets of £194,499 up 15% year on year (2011 : £169,295). * All outstanding loans were repaid and the Company is now largely free of debt.
The operating loss for the year of £77,712 (2011 : £16,525) was broadly in line with expectations and essentially reflects the costs of maintaining a public listing. A profit on sale of investments of £65,282 (2011 : £2,730) was realised following the sales of shares in Alpha Prospects Plc (`Alpha') and Perform Marketing Limited. Our remaining investment in Alpha remains non-core and we continue to seek to realise this asset at an advantageous price.
In February 2012, the Company reached an agreement with the previous directors of the Company, Robert Painting and Jonathan Hall, to settle all outstanding loans from Mr. Painting and Harbinger Capital Plc. Subsequently in March 2012, the Company used funds from sales of investments to strengthen its balance sheet by settling all outstanding debts within the Company, leaving it debt free.
During the period, Gregory Collier, Hui Jie Lim and I joined the Board; Robert Painting and Jonathan Hall have stepped down from the Board.
The Board believes that life on ISDX Markets, for small investment companies such as ours, will continue to be difficult for the foreseeable future. The nature of the Company's investments is such that whilst high returns are possible, liquidity in these investments is very low and realisation of profit and cash through sales remains difficult. Operating expenses will continue to be kept at a minimum until more regular cash flows can be generated.
Following the year end, in October 2012, the Company undertook a share capital reorganisation and an Open Offer to raise approximately £200,000 (gross of expenses). The net proceeds of the Open Offer will be used for working capital purposes and to evaluate prospective investments under the Company's revised investment strategy, which is to invest in early stage, small to medium enterprises around the world.
The Directors have identified potential investments in technology and distribution of consumer products which we are currently evaluating. The Board intends on seeking further realisation of the Company's existing portfolio and to create value for shareholders through making investments which have a significant potential uplift. We believe that the Company will be in a position to create further shareholder value in the near future.
Finally, on behalf of the Board, I would like to take this opportunity of thanking the Company's professional advisers for their support and assistance throughout the year.
Christopher Neo - Executive Director 31 January 2013
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2012
2012 2011 GBP GBP
TURNOVER 6,000 17,000
Admin expenses (83,712) (33,525)
OPERATING LOSS (77,712) (16,525)
Interest payable and similar charges (1,260) (2,486)
Profit on sale of investments 65,282 2,730
Amounts written back on loans 13,894 -
Amounts provided against loans not recoverable - (9,375)
Amounts written off investments - (39,588)
PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE TAXATION 204 (65,244)
Taxation - -
PROFIT/(LOSS) FOR THE YEAR 204 (65,244)
Profit/(Loss) per share expressed in pence per share:
Basic/ Diluted 0.00 (0.17)
The profit and loss account has been prepared on the basis that all operations are continuing operations. The Company has no recognised gains or losses other than those passing through the profit and loss account. 2012 2011
BALANCE SHEET AS AT 31AUGUST 2012 GBP GBP
Investments 202,743 234,259
Debtors 14,736 7,098
Cash - 3,000
CREDITORS: amounts falling due in one year (22,980) (75,062)
NET CURRENT LIABILITIES (8,244) (64,964)
NET ASSETS 194,499 169,295
CAPITAL AND RESERVES
Called Up Share Capital 222,170 197,170
Share Premium Account 206,090 206,090
Profit and loss account (233,761) (233,965)
SHAREHOLDERS FUNDS 194,499 169,295
The unaudited Final Results are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Due to the adoption of International Financial Reporting Standards (IFRS) for the financial statements for the year ended 31 August 2012, The Company anticipates that the audited Annual Results will be completed and published by 28 February 2013. A copy of the Company's audited financial statements will be posted to shareholders as soon as completed together with a notice of Annual General Meeting. The Company also intends on releasing the restated audited financial statements on the Regulated Information Service.
The Directors do not propose to pay a dividend for the reported period.
The Directors of the Company accept responsibility for the announcement.
Early Equity Plc Tel: +44 (0)78 3018 2501 Greg Collier
Peterhouse Corporate Finance Ltd Tel: +44 (0)20 7469 0934 Fungai Ndoro and Eran Zucker
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