27th Jun 2014 08:38
Armstrong Ventures Plc
("Armstrong Ventures" or the "Company"
Final Results for the year ended 31 December 2013
Armstrong Ventures is pleased to announce its final results for the year ended 31 December 2013.
During the year under review the Company operated as an Investing Company reviewing investment opportunities in line with the Company's strategy and as such did not have any operating business. The Company recorded a loss of £262,406 and a loss per share of 0.01p. This compares to a corresponding loss last year of £120,997 and a loss per share of 0.02p. The Company is operating on a very tight cost base during this phase of its development but our administration costs are significantly higher than the previous year mainly due to the unavoidable litigation that the Company had to institute to recover a large cash deposit made on a potential transaction. We have also provided in full for £52,973 against our receivable on the cash deposit as the recovery of these monies despite legal efforts are uncertain at present. In addition we have an investment in Ipoint plc, an unquoted company whose shares are illiquid and difficult to trade; a full provision of £49,900 has been made against this investment. The Company has sufficient funds to carry on its activities. As at 26 June 2014 the cash balance stood at £326,125.
Small Investing Companies with limited balance sheet strength have in recent times found it harder to complete acquisitions. As I reported at the interim stage, the general market conditions for small AIM listed companies are very difficult and attracting investment for these types of proposition is challenging. There have not been many successful fund raisings in this space during 2013. We have looked at a number of possible acquisitions for Armstrong but none were suitable to be tabled for the consideration of the shareholders. A greater proportion of the possible transactions that we looked at required funds to be raised as part of the acquisition and the confidence levels on the fund raise were simply not there. Since the end of our financial year the market conditions in our investment sector have continued to be challenging and we do not see any improvement in the near term horizon. The Directors are continuing to look for suitable investment opportunities but there can be no guarantee that this will be achieved in the short term mainly due to the very difficult funding environment that we are faced with.
We reported late last year that unfortunately we were forced to take legal action to recover a large cash deposit that we had made against a potential transaction for Armstrong. The courts found in our favour and we were able to retrieve £450,000 in cash out of a total deposit of £500,000. We are still pursuing the outstanding balance of £50,000 plus the interest. The court also ruled that the debtor had to pay our legal costs but as yet despite our best efforts we have not received these monies that are due to the Company and we continue to work closely with our lawyers to try to recover these outstanding amounts.
INVESTING POLICY
As stated on our website, the Company's investing policy is:
"The Company's Investing Policy will be to invest principally, but not exclusively in the resources and energy sectors. The Company will initially focus on projects located in Asia but will also consider investments in other geographical regions. The Company may be either an active investor and acquire control of a single company or it may acquire non-controlling shareholdings. Once a target has been identified, additional funds may need to be raised by the Company to complete a transaction.
The proposed investments to be made by the Company may be in either quoted or unquoted securities; made by direct acquisition; may be in companies, partnerships, joint ventures; or direct interests in projects and can be at any stage of development. The Company's equity interest in a proposed investment may range from a minority position to 100 per cent. Ownership"
OUTLOOK
The Board continues to seek ways, by acquisition, to enhance shareholder value. Our focus is now opportunities that are supportable by the inevitable requirement of cash funding.
Haresh Kanabar
Chairman
INCOME STATEMENTAND STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2013
2013 | 2012 | ||
Note | £ | £ | |
Continuing operations: | |||
Administrative expenses | (159,533) | (121,491) | |
OPERATING LOSS | (159,533) | (121,491) | |
Other gains and losses | 4 | (102,873) | (2,479) |
Finance income | 5 | - | 2,973 |
LOSS FOR THE YEAR BEFORE TAXATION | (262,406) | (120,997) | |
Tax on loss on ordinary activities | 8 | - | - |
NET LOSS AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR | (262,406) | (120,997) | |
LOSS PER SHARE - basic and diluted from continuing operations | 9 | (0.012)p | (0.016)p |
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2013
Share capital | Share premium |
Merger Reserve |
Retained losses |
Total equity | |
£ | £ | £ | £ | ||
BALANCE AT 1 JANUARY 2012 | 623,301 | 3,729,817 | 6,797,313 | (11,108,724) | 41,707 |
Transfer following disposal of subsidiary undertakings | - | - | (6,797,313) | 6,797,313 | - |
Issues of shares net of expenses | 195,059 | 532,441 | - | - | 727,500 |
Total comprehensive loss for the year | - | - | - | (120,997) | (120,997) |
BALANCE AT 31 DECEMBER 2012 | 818,360 | 4,262,258 | - | (4,432,408) | 648,210 |
Loss for the year and total comprehensive loss for the year | - | - | - | (262,406) | (262,406) |
BALANCE AT 31 December 2013 | 818,360 | 4,262,258 | - | (4,694,814) | 385,804 |
STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 DECEMBER 2013
2013 | 2012 | ||
Note | £ | £ | |
NON-CURRENT ASSETS | |||
Available for sale investments | 10 | - | 49,900 |
- | 49,900 | ||
CURRENT ASSETS | |||
Trade and other receivables | 11 | 2,369 | 128,579 |
Cash and cash equivalents | 12 | 413,349 | 500,951 |
415,718 | 629,530 | ||
TOTAL ASSETS | 415,718 | 679,430 | |
CURRENT LIABILITIES | |||
Trade and other payables | 13 | 29,914 | 31,220 |
29,914 | 31,220 | ||
NET ASSETS | 385,804 | 648,210 | |
EQUITY | |||
Share capital | 14 | 818,360 | 818,360 |
Share premium account | 14 | 4,262,258 | 4,262,258 |
Retained earnings | (4,694,814) | (4,432,408) | |
TOTAL EQUITY | 385,804 | 648,210 |
STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2013
Notes | 2013 | 2012 | |
£ | £ | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Loss before taxation | (262,406) | (120,997) | |
Adjustments for: | |||
Provision against loans and receivables | 52,973 | ||
Impairment of investment | 49,900 | ||
Loss on disposal of trading investments | - | 2,479 | |
Operating cashflow before working capital changes | (159,533) | (118,518) | |
Decrease/(increase) in trade and other receivables | 73,237 | (10,912) | |
(Decrease)/increase in trade and other payables | (1,306) | 19,723 | |
Net cash outflow from operating activities | (87,602) | (109,707) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investments purchased | - | (160,000) | |
Proceeds from investment disposals | - | 157,521 | |
Net cash outflow from investing activities | - | (2,479) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from issue of shares | - | 611,548 | |
Net cash inflow from financing activities | - | 611,548 | |
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS | (87,602) | 499,362 | |
Cash and cash equivalents brought forward | 500,951 | 1,589 | |
CASH AND CASH EQUIVALENTS CARRIED FORWARD | 11 | 413,349 | 500,951 |
NOTES TO THE FINANCIAL STATEMENTS
1. Basis of preparation
The financial information contained in this document does not constitute statutory financial statements within the meaning of section 434 of the Companies Act 2006. The figures for the year ended 31 December 2013 have been extracted from the audited statutory financial statements. The financial statements for the year ended 31 December 2012 received an unqualified auditors' report
2. Earnings per share
The basic earnings per share is based on the profit/(loss) for the year divided by the weighted average number of shares in issue during the year. The weighted average number of ordinary shares for the year ended 31 December 2013 assumes that all shares have been included in the computation based on the weighted average number of days since issue. | ||
2013 | 2012 | |
£ | £ | |
Loss attributable to equity holders of the Company: | ||
Continuing and total operations | (262,406) | (120,997) |
No of shares | No of shares | |
Weighted average number of ordinary shares in issue for basic and fully diluted earnings | 2,101,105,791 | 758,560,901 |
Pence per share | Pence per share | |
LOSS PER SHARE | ||
BASIC AND DILUTED: | ||
- Continuing and total operations | (0.012)p | (0.016)p |
3. Post year-end events
There have been no material events since the reporting date.
4. Distribution of Annual Report
A copy of the Annual Report and Financial Statements, together with a notice of the Annual General Meeting, are being sent to all shareholders shortly. Further copies will be available from the Company's registered address at Suite 9 Citibase Imperial House, St Nicholas Circle, Leicester, Leicestershire, LE1 4LF and from the Company's website, www.armstrongventures.com.
Related Shares:
EVRH.L