Alpha Strategic PLC Final Results (1256N)

TIDMAPS

RNS Number : 1256N

Alpha Strategic PLC

03 September 2013

Alpha Strategic PLC ("Alpha Strategic" or "the Company")

3 September 2013

Results for the year ended 31 March 2013

Alpha Strategic, the specialist investment group, announces its audited results for the year ended 31 March 2013.

Highlights

   --      Revenue GBP493,000 (2012: GBP611,000) 
   --      Operating loss GBP2,161,000 (2012: loss GBP225,000) 
   --      Adjusted underlying operating loss GBP472,000 (2012: loss GBP225,000) 

-- The adjusted underlying operating loss is before costs of GBP1,689,000 comprising GBP1,439,000 impairment charges arising in respect of goodwill and GBP250,000 in respect of changes in management

   --      Net loss GBP2,153,000 (2012: loss GBP220,000) 

-- Net assets GBP3.1 million (2012: GBP5.2 million) - reflecting the impact of the impairment of goodwill

   --      Cash and debtor balances GBP2.8 million (2012: GBP3.5 million) 

______________________________________________________________

Chairman's statement

The Board were delighted to welcome Alistair McKay as Chief Executive on 1 October 2012. He brings a wealth of experience in the financial services industry. Alistair has since been building and broadening the in-house investment team in order to strengthen our position within a demanding marketplace, whilst still retaining our disciplined approach to focusing on the established end of the fund management industry. Furthermore, Alpha Strategic has broadened its search in the US fund management industry and recruited a highly experienced, US based consultant focusing on North America. We are encouraged by the in-roads we have made and the deal pipeline we are now executing.

Through these initiatives I am pleased to report significant progress towards our aim of creating a diversified portfolio of income streams from established fund management businesses.

Financial Highlights

Alpha Strategic incurred a net loss of GBP2,153,000 (2012: loss GBP220,000) for the year ended 31 March 2013 which included a goodwill impairment charge of GBP1,439,000 (2012: nil) for IKOS Asset Management ("IKOS"). As announced on 17 July 2013, the Company mutually agreed with IKOS to terminate the Principal Advisory Services Agreement, following the expiry of the minimum revenue period on 31 March 2013. Also included in the loss for the year are one-off costs of GBP250,000 for the management changes that took place in this financial year.

Whilst global equity indices continued to rise in 2012, in general managed futures strategies lost money for a second consecutive year. This was no different for Winton's Global Futures Fund ("GFF"), albeit the fund fared better as measured against leading industry benchmarks. As a result of the challenging environment, the income received from GFF was significantly reduced.

The Company remains debt free and as at year end held cash balances of GBP2,388,000 (2012: GBP3,309,000). The Company continues to be mindful of overheads and operates a prudent approach to cash management.

Management

As previously reported, Dr Nicola Meaden Grenham resigned as Chief Executive in July 2012 and was appointed a Non-Executive Director of the Company following her resignation. Alistair was appointed Chief Executive on 1 October 2012. Alistair has over 20 years' experience in the financial services industry. He held a number of senior investment banking roles, including head of the Investment Management Advisory Group, at both Morgan Stanley and Credit Suisse. During his time at Morgan Stanley and Credit Suisse, Alistair was involved in many significant M&A and IPO transactions in the asset management industry and has extensive expertise in minority investing.

Outlook

Although our marketplace remains intensely competitive, Northill Capital's backing and support, as majority shareholder, allows us to be well placed to capitalise on opportunities where the business is the right fit, at the right price and in a timely manner. We have a strong pipeline with considerably greater potential than ever before. We have signed 31 non-disclosure agreements since October 2012 and made indicative financial proposals to 19 independent fund management firms and are in advanced discussions with 4 of these. The discussions may or may not lead to an agreed transaction. The Board is committed to helping the Company deliver its strategy and I look forward to updating our shareholders of our progress at the appropriate time.

Colin Barrow

Chairman

Enquiries:

   Alpha Strategic PLC                      [phone] 

Colin Barrow

Alistair McKay

Kit Malthouse

   Westhouse Securities Limited         [phone] 

Tom Griffiths

   Maitland                                     [phone] 

Neil Bennett

Seda Ambartsumian

 
                                    Statement of comprehensive income 
                                     For the year ended 31 March 2013 
                                      Notes        2013          2012 
                                                 GBP000        GBP000 
 
 Revenue                                            493           611 
 
 
 Other administrative 
  expenses                                        (965)         (836) 
 Expenses relating to                             (250)             - 
  the resignation of the 
  former Chief Executive 
 Impairment of goodwill                         (1,439)             - 
-----------------------------------  ------  ----------      -------- 
 
 
 Total administrative 
  expenses                                      (2,654)         (836) 
 
 
 
 
 Operating loss                                 (2,161)         (225) 
 
 Finance income 
  Interest receivable and 
  similar income                        6             8             5 
 
 
 Loss before tax                                (2,153)         (220) 
 
 Taxation                               8             -             - 
 
 
 Loss and total comprehensive 
  income for the year attributable 
  to shareholders                               (2,153)         (220) 
 
 
 Basic and diluted loss 
  per share                             9        (23.3)   p     (2.5)   p 
 
 
                             Statement of financial position 
                                         as at 31 March 2013 
 
                                             2013       2012 
                                           GBP000     GBP000 
 
 Assets 
 Non-current assets 
 Goodwill                                     414      1,853 
 Plant and equipment                            6          7 
 
 
                                              420      1,860 
 
 
 Current assets 
 Trade and other receivables                  400        168 
 Cash and cash equivalents                  2,388      3,309 
 
 
                                            2,788      3,477 
 
 
 
 Total assets                               3,208      5,337 
 
 
 
 Equity and liabilities 
 Capital and reserves attributable to 
  the equity holders of the parent 
 Share capital                                127        142 
 Share premium                              4,948      4,948 
 Merger reserve                             1,341      1,341 
 Capital redemption reserve                    15          - 
 Accumulated deficit                      (3,340)    (1,187) 
 
 
                                            3,091      5,244 
 
 
 Current liabilities 
 Trade and other payables                     117         93 
 
 
                                              117         93 
 
 
 
 Total equity and liabilities               3,208      5,337 
 
 
 
 

Statement of changes in equity

for the year ended 31 March 2013

 
 
                                                          Attributable to equity holders of the Company 
                                                   Share                  Capital 
                                     Share       Capital      Share    redemption     Merger   Accumulated     Total 
                                   Capital    'A' shares    premium       reserve    reserve       deficit    equity 
                                    GBP000        GBP000     GBP000        GBP000     GBP000        GBP000    GBP000 
 
 At 1 April 2011                        45            50      2,649             -      1,341         (967)     3,118 
 Loss and total comprehensive 
  income for the year 
  attributable to 
  shareholders                           -             -          -             -          -         (220)     (220) 
 Shares issued in 
  the year                              47             -      2,446             -          -             -     2,493 
 Share issue expenses                    -             -      (147)             -          -             -     (147) 
 
 
 At 1 April 2012                        92            50      4,948             -      1,341       (1,187)     5,244 
 Purchase of own 
  shares                                 -          (15)          -            15          -             -         - 
 Loss and total comprehensive 
  income for the year 
  attributable to 
  shareholders                           -             -          -             -          -       (2,153)   (2,153) 
 
 
 At 31 March 2013                       92            35      4,948            15      1,341       (3,340)     3,091 
 
 

Share capital is the amount subscribed for ordinary shares at nominal value. Share Capital 'A' shares is the amount subscribed for 'A' ordinary shares at nominal value.

Share premium represents the excess of the amount subscribed for share capital over the nominal value of these shares net of share issue expenses.

The capital redemption reserve comprises the nominal value of share capital purchased back by or returned to the Company and subsequently cancelled. The reserve forms part of the company's capital equity.

The merger reserve comprises the excess of the amount subscribed for share capital over the nominal value of ordinary shares issued in respect of the acquisition of subsidiaries in accordance with the merger relief provisions of the Companies Act 1985 and the Companies Act 2006.

Accumulated deficit represents cumulative losses of the Company attributable to equity holders.

 
 
 Statement of cash flows 
  for the year ended 31 March 2013 
 
                                               2013      2012 
                                             GBP000    GBP000 
 
 Cash flow from operating activities 
 Loss before taxation                       (2,153)     (220) 
 
 Finance income                                 (8)       (5) 
 Depreciation                                     4         5 
 Impairment of goodwill                       1,439         - 
 
 
 Cash flow from operating activities 
  before changes in working capital           (718)     (220) 
 
 (Increase)/decrease in trade and other 
  receivables                                 (232)       219 
 Increase/(decrease) in trade and other 
  payables                                       24     (118) 
 
 
 Net cash flow from operations                (926)     (119) 
 
 
 Investing activities 
 Purchases of plant and equipment               (3)       (3) 
 Interest received                                8         5 
 
 
 Net cash flow from investing activities          5         2 
 
 
 Financing activities 
 Issue of ordinary shares                         -     2,493 
 Share issue expenses                             -     (147) 
 
 
 Net cash flow from financing activities          -     2,346 
 
 
 Net (decrease)/increase in cash and 
  cash equivalents in the year                (921)     2,229 
 Cash and cash equivalents at beginning 
  of the year                                 3,309     1,080 
 
 
 Cash and cash equivalents at end of 
  the year                                    2,388     3,309 
 
 
 Cash and cash equivalents comprise: 
 
 Cash                                         2,388     3,309 
 
 
 Cash and cash equivalents at end of 
  the year                                    2,388     3,309 
 
 
 
   1          Basis of preparation 

Whilst the financial information included in this announcement has been prepared in accordance with International Financial Reporting Standards (IFRS), this announcement does not contain sufficient information to comply with IFRS. The 2013 Annual Report and Accounts will be published in September 2013 and a copy will be posted on the Group's website (www.alphastrategic.com).

The financial information set out in the announcement does not constitute the Company's statutory accounts for the year ended 31 March 2013 or the year ended 31 March 2012. The statutory accounts for the year ended 31 March 2013 and 31 March 2012 have been reported on by the Independent Auditors. The Independent Auditors' Report on the Annual Report and Financial Statements for 31 March 2013 and 31 March 2012 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

Statutory accounts for the year ended 31 March 2012 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 March 2013, prepared under IFRS, will be delivered to the Registrar in due course.

The 2013 accounts have been prepared on a basis consistent with the accounting policies set out in the 2012 accounts.

   2          Loss per share 

The calculation of the basic loss per share is based upon the loss after tax attributable to ordinary shareholders of GBP2,153,000 (2012: loss GBP220,000) and a weighted average number of shares in issue for the year of 9,225,758 (2012: 8,800,362).

The diluted loss per share in 2013 and 2012 is the same as the basic loss per share as the losses in these years have an anti-dilutive effect.

   3          Dividend 

The directors do not recommend the payment of a dividend for the year.

   4          Copies of the financial statements 

Copies of the 2013 Annual Report, together with the Notice of Annual General Meeting, to be held on 26 September 2013, will shortly be available on the Company's website, www.alphastrategic.com, or can be obtained by contacting the Company Secretary at 15-17 Grosvenor Gardens, London SW1W OBD.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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