Adams PLC Final Results (8842B)

TIDMADA

RNS Number : 8842B

Adams PLC

22 June 2016

22 June 2016

Adams Plc

("Adams" or the "Company")

Annual Report and Financial Statements 2016

AUDITED RESULTS FOR THE YEARED 31 MARCH 2016

Adams Plc ("Adams" or the "Company) announces its audited financial results for the year ended 31 March 2016.

Highlights:

   -       Net assets at 31 March 2016 of EUR1.10 million (2015: EUR0.25 million). 
   -       Loss after tax of EUR0.23 million (2015: EUR0.03 million. 

- Investments at 31 March 2016 valued at EUR0.87 million represented by 4 AIM quoted holdings (2015: EUR0.17 million represented by 2 quoted holdings).

   -       Spend on new investments at a cost of EUR1.02 million (2015: EUR0.07 million). 
   -       Profitable realisations resulting in proceeds of EUR0.36 million (2015: EUR0.08 million). 

- Share placing successfully completed resulting in 18,181,818 new ordinary shares being issued and funds of EUR1.08 million being raised.

Michael Bretherton, Chairman, said:

"The Board remains committed to delivering additional value for our shareholders and will continue to maintain a rigorous and highly selective investment approach with a view to exploiting opportunities as they emerge".

The Company's Annual Report 2016 will shortly be posted to shareholders and a copy will be made available on the Company's website at www.adamsplc.co.uk under the Investor Relations / Company & Shareholder Documents section. The Annual Report 2016 contains on page 25, a Notice of the Annual General Meeting to be held at 11.00 a.m. on Friday 2 September 2016 at IOMA House, Hope Street, Douglas, Isle of Man, IM1 1AP.

Enquiries:

Adams plc Michael Bretherton Tel: [phone]

Nomad Cairn Financial Advisers LLP. Sandy Jamieson, James Caithie Tel: [phone]

Broker Peterhouse Corporate Finance Limited. Heena Karani Tel: [phone]

Chairman's Statement

Adams Plc ("the Company") is an investing company focusing on the technology and life sciences sectors.

Adverse conditions in financial markets during the second half of the year had a negative impact on the carrying values of the quoted investment holdings of the Company which generated a positive gross investment return of only EUR30,000 in the year ended 31 March 2016 versus EUR172,000 in the year to 31 March 2015. As a result, and after allowing for administrative expenses of EUR219,000 and exchange translation losses of EUR45,000, Adams incurred a loss after tax for the year of EUR234,000 compared to a loss of EUR25,000 in the previous year.

I was appointed to the Board as a non-executive director in May of this year and subsequently took over the role of Chairman from Nicholas Nelson on his retirement at the Annual General Meeting of the Company on 11 September 2015. I thank Nicholas for all his work in completing the restructuring process of Adams in to an investing company. The Company also announced the appointment of Dr Andrew Mitchell as a non-executive director on 6 August 2015.

One of my first priorities on joining the Board was to seek to strengthen the Company's balance sheet by raising additional funds to be used to make investments in accordance with the Company's investing policy and for general working capital purposes. This was achieved by way of a placing of 18,181,818 new ordinary shares of EUR0.01 each with new and existing investors at a placing price of 4.4p (5.962 EURcents) per ordinary share to raise GBP800,000 (EUR1,084,000) for the Company before expenses. The new shares were admitted to trading on AIM on 23 September 2015.

During the year to 31 March 2016, the Company invested EUR1,024,000 in five AIM listed technology businesses. One of these new investments was subsequently sold, and the Company also disposed of the two investments that it held at the 31 March 2015 financial year end, all for a total cash sale consideration of EUR357,000.

Adams currently holds four investments all of which are quoted on AIM, and for which the carrying value at 31 March 2016 was EUR871,000 (31 March 2015: EUR174,000 represented by the two quoted holdings that have since been sold).

At 31 March 2016, the Company had net assets of EUR1,100,000 inclusive of cash balances of EUR258,000 compared with net assets of EUR250,000 at 31 March 2015 inclusive of cash balances of EUR158,000. The increase in net assets is attributable to the receipt of EUR1,084,000 of share issue proceeds less the loss of EUR234,000 in the period.

Investments

The four AIM listed investments currently held by the Company comprise GVC Holdings PLC, Oxford Pharmascience Group Plc, Imagination Technologies Group Plc and Communisis Plc.

GVC is in a global online gaming and sports betting company with a solid on-line platform technology from which it operates some of the leading brands in the gaming sector including bwin, sporting bet, partypoker and Foxy Bingo. Oxford Pharmascience is a drug development company that re-develops approved drugs to make them better, safer and easier to take and it has a current focus to develop improved formulations of non-steroidal anti-inflammatory drugs (NSAIDs) and statins for global markets. Imagination is a global technology leader whose products include the key multimedia, communications and general purpose processors needed to power all mobile, consumer, automotive, automotive, enterprise and embedded electronics. Communisis is a leading processor technology company that creates unique, patented semiconductor IP for multimedia and communication applications.

Outlook

The potential for volatility in capital markets remains, given the continued worries over the slowdown in China's economy, together with persistent geopolitical risks in Ukraine and the Middle East and the need for further structural reforms to restore European public finances to a sustainable path. In addition, there is uncertainty over the UK referendum on its EU membership and also an expectation that a US interest rate rise is probable later this year.

The Board remains committed to delivering additional value for our shareholders and will continue to maintain a rigorous and highly selective investment approach with a view to exploiting opportunities as they emerge. We will also retain the management disciplines and shareholder alignment under which Adams now operates, whilst running a low cost base.

Michael Bretherton

Chairman

22 June 2016

Statement of Comprehensive Income for the year ended 31 March 2016

 
 
                                                     Year ended     Year ended 
                                                    31 Mar 2016    31 Mar 2015 
                                                        EUR'000        EUR'000 
 
 Gain on investments                                         30            172 
------------------------------------------------  -------------  ------------- 
 Gross investment return                                     30            172 
------------------------------------------------  -------------  ------------- 
 
 Expenses 
 
 Net foreign exchange (loss)/gain                          (45)             15 
 Administrative expenses                                  (219)          (212) 
------------------------------------------------  -------------  ------------- 
 Operating loss                                           (234)           (25) 
------------------------------------------------  -------------  ------------- 
 
 Loss on ordinary activities before taxation              (234)           (25) 
------------------------------------------------  -------------  ------------- 
 
 Tax on gain/(loss) on ordinary activities                    -              - 
 
 Loss for the year                                        (234)           (25) 
------------------------------------------------  -------------  ------------- 
 
 Total comprehensive loss for the year                    (234)           (25) 
------------------------------------------------  -------------  ------------- 
 
 Basic and diluted loss per share                        (0.7)c         (0.1)c 
 

Since there is no other comprehensive loss or gain, the loss for the year is the same as the total comprehensive loss for the year attributable to the owners of the Company.

Statement of Changes in Equity as at 31 March 2016

 
                                   Share      Share   Accumulated 
                                 Capital    Premium      (Losses)     Total 
                                 EUR'000    EUR'000       EUR'000   EUR'000 
 
 At 1 April 2014                     162        133         (170)       125 
 Changes in equity 
 Issue of shares                      69         81             -       150 
 Total comprehensive (loss)            -          -          (25)      (25) 
-----------------------------  ---------  ---------  ------------  -------- 
 At 31 March 2015                    231        214         (195)       250 
-----------------------------  ---------  ---------  ------------  -------- 
 
 Changes in equity 
 Issue of shares                     182        902             -     1,084 
 Total comprehensive (loss)            -          -         (234)     (234) 
-----------------------------  ---------  ---------  ------------  -------- 
 At 31 March 2016                    413      1,116         (429)     1,100 
-----------------------------  ---------  ---------  ------------  -------- 
 

Statement of Financial Position at 31 March 2016

 
                                           As at            As at 
                                   31 March 2016    31 March 2015 
                                         EUR'000          EUR'000 
 
 Assets 
 Non-current assets 
 Investments                                 871              174 
-------------------------------  ---------------  --------------- 
 
 Current assets 
 Trade and other receivables                   3               10 
 Cash and cash equivalents                   258              158 
-------------------------------  ---------------  --------------- 
 Current assets                              261              168 
-------------------------------  ---------------  --------------- 
 
 Total assets                              1,132              342 
-------------------------------  ---------------  --------------- 
 
 Liabilities 
 Current liabilities 
 Trade and other payables                   (32)             (92) 
-------------------------------  ---------------  --------------- 
 Total liabilities                          (32)             (92) 
-------------------------------  ---------------  --------------- 
 
 Net current assets                          229               76 
 
 Net assets                                1,100              250 
-------------------------------  ---------------  --------------- 
 
 Equity 
 Called up share capital                     413              231 
 Share premium                             1,116              214 
 Accumulated deficit                       (429)            (195) 
 Total shareholder equity                  1,100              250 
-------------------------------  ---------------  --------------- 
 
 

Statement of Cash Flows for the year ended 31 March 2016

 
                                                Year ended      Year ended 
                                                  31 March 
                                                      2016   31 March 2015 
                                                   EUR'000         EUR'000 
 
 Loss for the year                                   (234)            (25) 
 Unrealised loss/(gain) on revaluation 
  of investments                                       162           (128) 
 Realised (gain) on disposal of investments          (192)            (44) 
 Decrease/(increase) in trade and other 
  receivables                                            7             (3) 
 (Decrease)/increase in trade and other 
  payables                                            (60)              79 
 
 Net cash outflow from operating activities          (317)           (121) 
---------------------------------------------  -----------  -------------- 
 
 Cash flows from investing activities 
 Purchase of investments                           (1,024)            (67) 
 Proceeds from sales of investments                    357              79 
 
 Net cash (used)/generated in investing 
  activities                                         (667)              12 
---------------------------------------------  -----------  -------------- 
 
 Cash flows from financing activities 
 Issue of ordinary share capital                       182              69 
 Issue of premium share capital                        902              81 
 
 Net cash generated from financing 
  activities                                         1,084             150 
---------------------------------------------  -----------  -------------- 
 
 Net increase in cash and cash equivalents             100              41 
 Cash and cash equivalents at beginning 
  of year                                              158             117 
 Cash and cash equivalents at end of 
  year                                                 258             158 
---------------------------------------------  -----------  -------------- 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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June 22, 2016 02:00 ET (06:00 GMT)