EARLY EQUITY PLC: Audited Final Results
Early Equity Plc
("Early Equity" or the "Company")
Audited Final Results On 31 January 2013, the Company released its `Unaudited Final Results' for the year ended 31 August 2012, which were prepared in accordance with United Kingdom Generally Accepted Accounting Practice ("UKGAAP"). At that time, the Company also announced that its audited results for the year ended 31 August 2012 would be prepared in accordance with International Financial Reporting Standards ("IFRS"). The Board is now pleased to present the audited results for Early Equity Plc for the year ended 31 August 2012 prepared in accordance with IFRS. The final results for the year ended 31 August 2011 presented below, have been restated in accordance with IFRS and the unaudited results for the year ended 31 August 2012, announced under UKGAAP on 31 January 2013, have been included in this statement to highlight the principle differences. Highlights * Total comprehensive loss of (£15,808) (2011-restated: loss of (£63,992)). * Loss on sale of investment of £59,047 as a result of sales of shares in Alpha Prospects Plc and Perform Marketing Limited. * Investment portfolio stated at market value, less impairment provisions: £ 286,078 (2011-restated: £500,093). * Value of the investments 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 £277,937 down 36% year on year (2011-restated: £435,229). * All outstanding loans were repaid and the Company is now largely free of debt.
The Company reports an operating loss for the year of (£140,582) (2011-restated: (£68,312)). A loss on sale of investment of £59,047 was incurred 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, Lim Hui Jie and I joined the Board; Robert Painting and Jonathan Hall have stepped down from the Board.
The Board believes that life on the ISDX Growth Market 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.
Subsequent to the reporting period, 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 to seek further realisations 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 28 February 2013
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2012
IFRS (Restated) UKGAAP 2012 2011 2012 GBP GBP GBP
TURNOVER 6,000 17,000 6,000
OTHER INCOME 13,894 - 13,894
ADMINISTRATIVE EXPENSES (83,665) (33,579) (83,712)
OTHER OPERATING EXPENSES (75,506) (49,301) (75,506)
FINANCE COSTS (1,305) (2,632) (1,260)
( LOSS) BEFORE TAX (140,582) (68,312) 204
INCOME TAX - -
(LOSS) FOR THE YEAR (140,582) (68,312) 204
OTHER COMPREHENSIVE INCOME
Reclassification of fair value gain on 124,774 4,320 --------- disposal
of available-for-sale financial assets
OTHER COMPREHENSIVE INCOME FOR THE YEAR 124,774 4,320 ---------
TOTAL COMPREHENSIVE LOSS FOR THE YEAR (£15,808) (£63,992) 204
BASIC AND DILUTED LOSS PER SHARE (PENCE) (0.04) (0.16) 0.00
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2012
IFRS (Restated) UKGAAP 2012 2011 2012 GBP GBP GBP
Available-for-sale financial assets 286,078 500,093 202,743
Trade and other receivables 14,736 7,098 14,736
Cash and cash equivalents - 3,000
14,736 10,098 14,736
Trade and other receivables (22,877) 75,062 (22,980)
NET CURRENT LIABILITIES (8,141) (64,864) (8,244)
NET ASSETS £277,937 £435,229 £194,499
Share capital 222,170 197,170 222,170
Share premium 206,090 206,090 206,090
Fair value reserve 98,198 264,682 -------
Accumulated losses (248,521) (232,713) (233,761)
SHAREHOLDERS' FUNDS £277,937 £435,229 £194,499
This financial information has been extracted from the audited financial statements of the Company for the year ended 31 August 2012. The financial statements are prepared in accordance with the International Financial Reporting Standards. The audited accounts for the year ended 31 August 2012 were approved and signed on 28 February 2013.
The Directors do not recommend the payment of a dividend for the period.
A copy of the Company's financial statements will be posted to shareholders and will be delivered to the Registrar of Companies. A copy of the full financial statements will be published on the Company's website: www.earlyequity.co.uk
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
-0- Mar/01/2013 16:03 GMT