1st Nov 2019 18:22
(Alliance News) - Rockpool Acquisitions PLC on Friday said it swung to a profit in its most recent financial year as a result of higher finance income, lower expenses, and revenue.
Indeed, the company posted GBP55,000 of revenue for its financial year ended March 31 versus nothing the year before. Moreover, finance income rose to GBP99,134 from GBP29,833.
This, along with a substantial cut in administrative expenses to USD80,265 from GBP323,934, resulted in a GBP73,869 pretax profit compared to a GBP294,101 loss the year prior.
Rockpool credited its performance to consultancy fees charged and loan interest accrued.
Rockpool is seeking to make an acquisition in Northern Ireland. In November 2017, it announced a loan agreement with energy firm Greenview Gas Ltd, intended to finance two business acquisitions. The deal included the right to an option for the entirety of Greenview's share capital under specific conditions.
In January 2019, Rockpool announced Greenview had integrated the two acquisitions made and acquired Central Heating Service Ltd for GBP650,000 in cash - funded from a loan with Exworks Capital Fund I LP.
According to Rockpool, Central Heating Service has underperformed since its acquisition and was "well below expectations". Rockpool has opted to suspend working on its acquisition of Greenview and would need reassurance that Greenview has "sufficient working capital to meet the needs of the enlarged group" if it were to resume acquisition talks.
On October 21, Rockpool agreed heads of terms with a US investor over a GBP1.6 million subscription, of which GBP750,000 would be loaned to Greenview for working capital purposes. Rockpool's board would also change, with Neil Adair stepping down as non-executive director and two new board members joining.
The new board might not opt to acquire Greenview and could instead convert the loan into a 40% Greenview stake. Other acquisitions would also be considered.
"The board remains hopeful that it can complete a transaction, whether with the shareholders of Greenview or otherwise, that will be beneficial to all shareholders," said Non-Executive Chair Richard Beresford.
Shares in Rockpool are currently suspended.
By Anna Farley; [email protected]
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