9th Oct 2007 07:01
Chariot (UK) PLC09 October 2007 Embargoed for release at 7 a.m. 9 October 2007 Chariot (UK) plc ("Chariot" or the "Company") Audited results for the year ended 30 April 2007 Chairman's statement Chariot was launched in October 2005 as a new venture to market and retailweekly lotteries on behalf of a diverse range of Charity Partners. The Companysubsequently launched "monday- the charities lottery" on 20 April 2006 and thefirst draw took place on 8 May 2006. Initial sales were, however, disappointingwith receipts from ticket sales for the first five draws falling significantlybelow the Board's expectations. The Company responded by implementing a revisedbusiness plan for the Company which focused on a reorganisation of the businessand a reduction in operating costs and, on 6 July 2006, the Company raised £2.65million (before expenses) at 5p per share which included subscriptions totalling£500,000 from existing directors of Chariot. Unfortunately sales levels continued to decline month on month following thelaunch of the game, in spite of strategic initiatives undertaken by the Company.Whilst continuing to reduce costs and simplify operations in order to breakeven, the Company undertook an exercise to find a strategic partner or investorto acquire the Company, to make further investment into the Company or topurchase some or all of the Company's assets. Despite a substantial effort bythe Company and its advisers, it was not possible to secure a transaction thatwould either allow the operations to continue or realise significant value forshareholders. On 19 January 2007, the Company agreed the sale of the 'monday' lottery game andits other principal operating assets, including the entire player database, toNetPlay TV plc for a total cash consideration of £140,500. NetPlay TV plc arecontinuing to operate the game allowing Chariot's charity partners and playerbase to continue to benefit from the game. The effect of the sale of the game was to divest Chariot of all of its tradingbusiness and activities and, with effect from 31 January 2007, Chariot has beentreated as an investing company pursuant to Rule 15 of the AIM Rules. Chariot isrequired, in accordance with its investment strategy, to make a suitableinvestment or acquisition which constitutes a reverse takeover by 31 January2008. As at 30 April 2007, the Company has positive net assets of approximately£0.63 million (including £0.83 million of cash resources) which will assist theCompany in implementing its investment strategy. If an acquisition orinvestment, which would constitute a reverse takeover, is not completed by 31January 2008, dealings in the shares of the Company would be suspended. In thesecircumstances the Company anticipate giving shareholders the opportunity toconsider the future of the Company at a duly convened extraordinary generalmeeting. The audited results for the twelve months ended 30 April 2007 showed that theCompany generated turnover of £1.132 million and incurred a loss of £9.398million. These results include the period up until the disposal of the Company'strading operations. As outlined above the Company does not at present conductany business and is a cash shell. The cash resources as at 30 April 2007 standat £0.832 million and it is intended that these resources will be applied inpursuance of the investing strategy of the Company. The Board also announces that with effect from today Philip Evans, Non-ExecutiveDirector, has resigned from the Board of Chariot. The Board of the Company wouldlike to thank Philip for all of his hard work since he joined Chariot in October2003 shortly after its inception. Philip was Charities Director of the Companyfrom August 2005 through to January and responsible for representing Chariot tothe Company's Charity Partners. The Company's stated investment strategy is to acquire a company or companieswhose business is in the broader leisure or consumer sectors. Such a businesswill not necessarily be a lottery operation. The attributes which Chariot arelooking for in a prospective investment or acquisition include an experiencedmanagement team with a strong track record, an ability to generate revenuestreams and strong growth prospects with the ability to generate shareholdervalue. As outlined in the announcement of the interim results on 31 January 2007,Chariot has reviewed potential investment and acquisition opportunities withinthe leisure and consumer sectors in line with its investment strategy. Chariothas not yet carried out any detailed due diligence or entered into any firmcommitment in connection with any acquisitions or investments. However Chariotis continuing discussions with a number of parties with a view to creatingshareholder value for the Company and is working together with FBI MediaInvestments Limited, the Company's largest shareholder, in evaluating potentialinvestment and acquisition opportunities. At the time when a suitable investmentor acquisition reaches a sufficiently advanced stage, Chariot will, in line withthe requirements of reverse takeovers under the AIM Rules, make the acquisitionconditional on consent of its shareholders. Peter Jones Chairman 9 October 2007 CHARIOT (UK) PLCPROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 30 APRIL 2007 2007 2006 Notes £'000 £'000 TurnoverDiscontinued operations 1,132 - Administrative expenses (9,763) (7,983) Operating loss 2Discontinued operations (8,631) (7,983) Exceptional item - loss on disposal of fixedassets (844) - Loss on ordinary activities before interest (9,475) (7,983) Other interest receivable and similar income 77 126Interest payable and similar charges - (1) Loss on ordinary activities before taxation (9,398) (7,858) Tax on loss on ordinary activities - - Loss for the year (9,398) (7,858) (Loss)/earnings per share - basic and dilutedContinuing and discontinued operations 3 (15.3)p (103.9)p Continuing operations 3 0.13p 1.67p There are no recognised gains and losses other than those passing through theprofit and loss account. CHARIOT (UK) PLCBALANCE SHEETAS AT 30 APRIL 2007 2007 2006 Notes £'000 £'000 £'000 £'000 Fixed assetsIntangible assets - 223Tangible assets - 901 - 1,124Current assetsDebtors 110 3,402Cash at bank and in hand 832 2,788 942 6,190Creditors: amounts fallingdue (310) (1,860)within one year Net current assets 632 4,330 Net assets and total assets lesscurrent liabilities 632 5,454 Capital and reservesShare capital 710 160Share premium account 10,615 8,583Special reserve 2,186 2,186Profit and loss account (12,879) (5,475) Shareholders' funds 632 5,454 CHARIOT (UK) PLCCASH FLOW STATEMENTFOR THE YEAR ENDED 30 APRIL 2007 2007 2006 £'000 £'000 £'000 £'000 Net cash outflow from (4,626) (9,144)operating activities Returns on investmentsand servicing of financeInterest received 77 126Interest paid - (1) Net cash inflow fromreturns on investments 77 125and servicing of finance Capital expenditurePayments to acquire - (250)intangible assetsPayments to acquire (181) (928)tangible assetsReceipts from sale of 155 -fixed assets Net cash outflow for (26) (1,178)capital expenditure Net cash outflow beforemanagement of liquid (4,575) (10,197)resources and financing Management of liquid resourcesTransfers from/(to) bank 1,391 (1,788)deposits 1,391 (1,788) FinancingIssue of ordinary share 2,650 14,024capitalExpenses of share issue (68) (936)Repayment of other short - (106)term loans Net cash outflow from 2,582 12,982financing (Decrease)/increase in (602) 997cash in the year Abridged notes to the results statement 1. Basis of preparation (a) The financial information for the years ended 30 April 2007 and 30 April2006 does not constitute the Company's statutory financial statements but isextracted from the audited accounts for those years. The auditors have reportedon those accounts; their reports were unqualified and did not contain statementsunder Section 237 (2) or (3) of the Companies Act 1985. The audited accounts forthe year ended 30 April 2006 did however include reference to uncertainty overgoing concern which the auditors drew attention to by way of emphasis withoutqualifying their report. (b) The audited accounts for the year ended 30 April 2006 have been deliveredto the Registrar of Companies. The Annual Report and Financial Statements forthe year ended 30 April 2007 will be delivered to the Registrar of Companiesfollowing the Company's Annual General Meeting. (c) The financial information for the year ended 30 April 2007 has beenprepared on the basis of the accounting policies set out in the auditedfinancial statements for the year ended 30 April 2006, with the addition of theturnover policy as outlined below: Turnover Turnover represents the commission receivable in relation to the Company's roleas an on-line retailer of society lottery tickets 2. Operating loss 2007 2006 £'000 £'000 Operating loss is stated after charging: Amortisation of intangible assets 63 27 Depreciation of tangible assets 243 29 Operating lease rentals - Plant and machinery 5 2 - Land and buildings - 71 Auditors' remuneration - audit work 15 36 Remuneration of current auditors for non-audit work - - 17 VAT advice Remuneration of previous auditors for non-audit work - - 47 accounting and taxation advice and after crediting: Profit on foreign exchange transactions (7) - In the year ended 30 April 2006, fees of £68,000 were paid to the currentauditors in connection with the IPO, which were charged to the share premium reserve. 3. Loss per share Loss per share 2007 2006 £'000 £'000NumeratorLoss used for calculation of basic and diluted lossper share: Continuing and discontinued operations (9,398) (7,858) Continuing operations 77 126 DenominatorWeighted average number of shares used inbasic and diluted loss per sharecalculation 61,471,099 7,561,473 None of the potentially ordinary shares are considered to be dilutive.Potentially dilutive shares comprise those that would arise from the exercise ofoutstanding share options. 4. Reconciliation of operating loss to net cash outflow from operatingactivities Reconciliation of operating loss to net cash outflow from operating activities 2007 2006 £'000 £'000 Operating loss (8,631) (7,983) Depreciation of tangible assets 243 29 Amortisation of intangible assets 63 27 Share based payment 1,994 833 Decrease/(increase) in debtors 3,292 (3,392) (Decrease)/increase in creditors within one year (1,587) 1,342 Net cash outflow from operating activities (4,626) (9,144) 5. Reconciliation of net cash flow to movement in net funds Reconciliation of net cash flow to movement in net funds 2007 2006 £'000 £'000 (Decrease)/increase in cash in the year (602) 997 Cash (outflow)/inflow from (increase)/decrease in (1,391) 1,788 liquid resources Cash outflow from decrease in debt - 106 Movement in net funds in the year (1,993) 2,891 Opening net funds/(debt) 2,788 (103) Closing net funds 795 2,788 6. Circulation to shareholders Copies of the Company's Annual Report will be sent to shareholders shortly withfurther copies available from the Company's nominated adviser and broker, Noble& Company Limited, 120 Old Broad Street, London, EC2N 1AR. Enquiries: Peter Jones, Chariot (UK) plc Tel: 0207 763 2200 Nick Naylor, Noble & Company Limited Tel: 0207 763 2200 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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