30th Sep 2009 07:00
News release
30 September 2009
Interim results for the six months ended 30 June 2009
Midas Capital plc, the AIM quoted company encompassing fund management and wealth management, announces its interim results for the six months ended 30 June 2009.
FINANCIAL HIGHLIGHTS
|
First half |
First half |
|||
|
2009 |
2008 |
Movement |
||
|
Unaudited 30 June 2009 |
Unaudited 30 June 2008 |
|||
|
Revenue |
£000 |
12,560 |
14,994 |
(16)% |
|
Adjusted (loss)/profit * |
£000 |
(98) |
1,827 |
(105)% |
|
Adjusted earnings per share |
p |
(0.01) |
3.81 |
(100)% |
|
Funds Under Management & Advice |
||||
|
-Fund management |
£million |
1,439 |
2,078 |
(31)% |
|
-Wealth management |
£million |
551 |
601 |
(8)% |
|
1,990 |
2,679 |
(26)% |
* Adjusted Profit includes operating income but is before tax, exceptional items, share based payment charge, fair value of bank loan costs, amortisation and impairment.
For further information, please contact:
Colin Rutherford, Chairman, Midas Capital plc 07768 053054
Roland Cross, Director, Broadgate 020 7726 6111
James Steel, Arbuthnot Securities Limited 020 7012 2000
Web: www.midascapitalplc.com
Chairman's statement
The six month period ended 30 June 2009 continued to witness a deepening of the economic crisis, however markets exhibited resilience which returned an uplift in the performance of our core asset management activities. As reported to you in June, our Liverpool and Reading businesses suffered a mixture of redemptions and creations respectively, however performance within our Midas funds returned to upper quartile whilst Miton maintained its profile with our team accorded various peer recognitions.
Results
Against a background of our well reported Group restructuring, unsurprisingly revenues fell to £12.6 million (2008: £15 million) and adjusted loss £(0.1) million (2008: Profit £1.8 million). Adjusted EPS (diluted) was (0.01)p (2008: 3.81p). The Group aims to restore dividends in due course, but only when the Preference capital is fully retired.
Restructuring and disposal
We reported fully in June on the restructuring of our Group and are pleased to announce further progress. We have concluded an agreement to dispose of our Corporate Advisory activities and whilst this has resulted in some further goodwill impairment, the resultant cash proceeds will be applied to retire part of the Group's Preference capital.
Funds Under Management
FUM totalled £1.5 billion at the end of August having bottomed out in the period at £1.3 billion. Pleasingly, Liverpool and Reading combined are experiencing positive inflows currently.
Wealth Management division
WMD acquitted itself creditably in the period increasing its discretionary and advisory funds by a further £0.1 billion to £0.6 billion.
Future Prospects
Since the period end the market has risen a further 23%. Our product range is diversified and to an extent hedged against the next market shift and product performance will inevitably vary in practice.
Your board is wholly committed to finalising the Group's restructuring plan and will focus increasingly on our multi-asset management offering as we look towards 2010. We are grateful for the continued support and commitment of Bank of Scotland, our advisers and, of course, our employees.
Colin Rutherford
Executive Chairman
29 September 2009
CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2009
|
Unaudited Six months to 30 June 2009 £'000 |
Unaudited Six months to 30 June 2008 £'000 |
Audited Year to 31 December 2008 £'000 |
||||
|
Revenue |
12,560 |
14,994 |
30,984 |
|||
|
Administrative expenses |
||||||
|
Operating expenses |
(11,681) |
(12,160) |
(25,022) |
|||
|
IFRS 2 share based payments |
(334) |
(230) |
(492) |
|||
|
Amortisation and impairment |
(5,038) |
(1,358) |
(58,854) |
|||
|
Exceptional operating expense |
(49) |
(586) |
(1,298) |
|||
|
Total administrative expenses |
(17,102) |
(14,334) |
(85,666) |
|||
|
Other operating income/(expense) |
167 |
(147) |
(56) |
|||
|
Operating (loss)/profit |
(4,375) |
513 |
(54,738) |
|||
|
Exceptional gain on restructuring |
8,418 |
- |
- |
|||
|
Finance revenue |
21 |
275 |
436 |
|||
|
Finance costs |
(1,266) |
(1,206) |
(3,079) |
|||
|
Profit/(loss) for the period before taxation |
2,798 |
(418) |
(57,381) |
|||
|
Taxation |
669 |
124 |
1,518 |
|||
|
Profit/(loss) for the period attributable to equity holders of the parent |
3,467 |
(294) |
(55,863) |
|||
|
pence |
pence |
pence |
||||
|
Earnings Per Share |
||||||
|
- basic |
6.05 |
(0.66) |
(109.57) |
|||
|
- diluted |
6.05 |
(0.65) |
(109.33) |
|||
|
Adjusted Earnings Per Share |
||||||
|
- basic |
(0.01) |
3.81 |
4.06 |
|||
|
- diluted |
(0.01) |
3.79 |
4.05 |
|||
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENS
FOR THE PERIOD ENDED 30 JUNE 2009
|
Unaudited 30 June 2009 £'000 |
Unaudited 30 June 2008 £'000 |
Audited 31 December 2008 £'000 |
|
|
Tax on items taken directly to or transferred from equity |
- |
(4) |
(102) |
|
Net expense recognised directly in equity |
- |
(4) |
(102) |
|
Profit/(Loss) for the period |
3,467 |
(294) |
(55,863) |
|
Total recognised income and expense for the period attributable to equity holders of the parent |
3,467 |
(298) |
(55,965) |
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2009
|
Unaudited 30 June 2009 £'000 |
Unaudited 30 June 2008 £'000 |
Audited 31 December 2008 £'000 |
||||
|
Non - current assets |
||||||
|
Goodwill |
47,352 |
101,529 |
50,819 |
|||
|
Intangible assets |
23,672 |
32,222 |
25,239 |
|||
|
Property and equipment |
813 |
1,002 |
911 |
|||
|
Financial assets |
525 |
317 |
408 |
|||
|
Deferred tax assets |
- |
296 |
85 |
|||
|
72,362 |
135,366 |
77,462 |
||||
|
Current assets |
||||||
|
Trade and other receivables |
2,732 |
4,152 |
3,130 |
|||
|
Income tax receivables |
1,274 |
- |
1,240 |
|||
|
Cash and cash equivalents |
5,373 |
9,951 |
9,379 |
|||
|
9,379 |
14,103 |
13,749 |
||||
|
Current liabilities |
||||||
|
Trade and other payables |
3,141 |
2,956 |
2,656 |
|||
|
Financial liabilities |
3 |
4,901 |
38,657 |
|||
|
Income tax payable |
1,401 |
1,440 |
2,001 |
|||
|
Provisions |
160 |
- |
560 |
|||
|
4,705 |
9,297 |
43,869 |
||||
|
Net current assets/(liabilities) |
4,674 |
4,806 |
(30,120) |
|||
|
Total assets less current liabilities |
77,036 |
140,172 |
47,342 |
|||
|
Non - current liabilities |
||||||
|
Financial liabilities |
25,727 |
36,635 |
931 |
|||
|
Deferred tax liabilities |
6,640 |
8,988 |
7,052 |
|||
|
32,367 |
45,623 |
7,983 |
||||
|
Net assets |
44,669 |
94,549 |
39,359 |
|||
|
Equity |
||||||
|
Share capital |
5,746 |
5,733 |
5,733 |
|||
|
Share premium |
11,705 |
10,429 |
10,434 |
|||
|
Treasury shares |
(34) |
(294) |
(83) |
|||
|
Merger reserve |
9,036 |
66,684 |
12,503 |
|||
|
Warrant reserve |
176 |
- |
- |
|||
|
Retained earnings |
18,040 |
11,997 |
10,772 |
|||
|
Total equity |
44,669 |
94,549 |
39,359 |
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2009
|
Unaudited Six months to 30 June 2009 £'000 |
Unaudited Six months to 30 June 2008 £'000 |
Audited Year to 31 December 2008 £'000 |
|
|
Operating activities |
|||
|
Profit/(Loss) for the period |
3,467 |
(294) |
(55,863) |
|
Adjustments to reconcile operating profit to net cash flow from operating activities |
|||
|
Tax on continuing operations |
(669) |
(124) |
(1,518) |
|
Net finance cost |
1,245 |
931 |
2,643 |
|
Depreciation |
121 |
150 |
304 |
|
Amortisation and impairment of intangible assets |
5,038 |
1,358 |
58,854 |
|
Share based payments expense |
334 |
230 |
492 |
|
Decrease in trade & other receivables |
397 |
405 |
1,428 |
|
Decrease in trade and other payables |
(63) |
(193) |
(383) |
|
Movement in provisions |
(400) |
- |
560 |
|
Profit on disposal of investments at fair value through profit or loss |
(27) |
- |
- |
|
Exceptional gain on restructuring |
(8,418) |
- |
- |
|
Movements in investments at fair value through profit or loss |
(140) |
147 |
267 |
|
Cash generated from operations |
885 |
2,610 |
6,784 |
|
Income tax paid |
(292) |
(406) |
(51) |
|
Net cash flows from operating activities |
593 |
2,204 |
6,733 |
|
Investing activities |
|||
|
Interest received |
21 |
275 |
436 |
|
Purchase of property and equipment |
(23) |
(61) |
(124) |
|
Purchase of intangible assets |
(4) |
(11) |
(17) |
|
Settlement of loans and receivables |
(24) |
- |
- |
|
Proceeds from disposal of investments |
101 |
- |
- |
|
Purchase of subsidiaries, net of cash and costs of acquisition |
- |
(58,060) |
(58,664) |
|
Net cash flow from investing activities |
71 |
(57,857) |
(58,369) |
|
Financing activities |
|||
|
Proceeds from share issue (less issue costs) |
- |
10,505 |
9,737 |
|
Interest paid |
(2,174) |
(13) |
(1,795) |
|
Dividends paid to equity shareholders of the parent |
- |
(455) |
(455) |
|
New borrowings |
- |
40,000 |
40,000 |
|
Payments to acquire new borrowings |
(746) |
(835) |
(835) |
|
Repayment of borrowings |
(1,750) |
(10) |
(2,049) |
|
Net cash flows from financing activities |
(4,670) |
49,192 |
44,603 |
|
Decrease in cash and cash equivalents |
(4,006) |
(6,461) |
(7,033) |
|
Cash and cash equivalents at the beginning of the period |
9,379 |
16,412 |
16,412 |
|
Cash and cash equivalents at the period end |
5,373 |
9,951 |
9,379 |
NOTES
Basis of preparation
These interim condensed and consolidated financial statements do not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006. They have been prepared on the basis of the accounting policies as set out in the Group's Annual Report for the year ended 31 December 2008, which have been published on the Midas Group website (www.midascapitalplc.com). The accounting policies are drawn up in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union as they apply to the financial statements of the Group for the period ended 30 June 2009.
These unaudited financial statements were approved and authorised for issue by a duly appointed and authorised committee of the Board of Directors on 29 September 2009.
The full year accounts to 31 December 2008 have been filed with the Registrar of Companies. The auditors have reported on those accounts; their report was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The figures for the six months ended 30 June 2008 and 2009 have not been audited.
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