Share Name Share Symbol Market Type Share ISIN Share Description
Assetco Plc LSE:ASTO London Ordinary Share GB00B42VYZ16 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 345.00 320.00 370.00 345.00 345.00 345.00 0.00 00:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 22.9 1.4 11.6 29.7 4

AssetCo PLC Half-year Report- six months ended 31 March 2019

20/06/2019 7:00am

UK Regulatory (RNS & others)


TIDMASTO

RNS Number : 8181C

AssetCo PLC

20 June 2019

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

 
 Thursday, 20 June 2019   Immediate Release 
 

AssetCo plc

Providers of management and resources to the fire and emergency services in the Middle East

("AssetCo" or the "Company")

2019 Half-year Report

for the six months ended 31 March 2019

Chairman's statement

These results show a Profit after taxation for the six months ended 31 March 2019 of GBP0.4m (2018: GBP0.5m) on Revenue of GBP5.2m (2018: GBP11.2m) with the net assets at 31 March 2019 totalling GBP30.2m. The reduced revenue results from the cessation of our Fire Services to the Abu Dhabi government which, as already announced, ended on 17 December 2018.

The liquidity position remains strong with Cash and cash equivalents of GBP18.3m, and this position is expected to improve as, although we have ongoing costs in relation to our remaining staff in Abu Dhabi and legal costs associated with the Grant Thornton appeal, we have Cash held in respect of Bonds of GBP3.3m, Trade and other Receivables of GBP10.7m, and Trade and other payables of just GBP2.1m.

On cessation of the Fire Services contract, our headcount in Abu Dhabi was immediately reduced from 242 by the transfer of 229 employees to the new operations and since then we have successively reduced the headcount to five. The remaining staff are senior fire service and administration staff who are currently involved in tendering for new business in the UAE, providing consultancy and dealing with the outstanding bonds and receivables.

We are encouraged by the opportunities that have arisen and have been involved in work proposals across several sectors; however, at this stage it is too early to assess the timing and potential from these sources.

Claim against Grant Thornton

The claim for negligence against AssetCo's former auditors, Grant Thornton, culminated in a trial in June 2018, for which a Judgment in AssetCo's favour was handed down. Since then permission to appeal was refused by the Trial Judge, but as announced on 31 May 2019, Grant Thornton have now successfully applied to the Court of Appeal for permission to appeal and the appeal will be heard by the Court of Appeal towards the end of January 2020.

AssetCo were awarded damages of GBP22.4m plus interest of approximately GBP6.5m and GBP5m on account of costs. On 29 March 2019, Grant Thornton paid GBP34.3m into Court on which interest is accruing at the rate of 8% per annum and the release of which is dependent upon the outcome of the appeal listed towards the end of January 2020.

Outlook

We shall keep shareholders informed of any developments regarding Grant Thornton's appeal and on the further development and opportunities we have with our business in UAE.

Tudor Davies

Chairman

20 June 2019

 
               AssetCo plc 
             Income statement 
  for the six months ended 31 March 2019 
 
 
                                      Six months ended       Year ended 
                              Note   31 March   31 March   30 September 
                                         2019       2018           2018 
                                      GBP'000    GBP'000        GBP'000 
                                    ---------  ---------  ------------- 
 
 Revenue                                5,210     11,151         22,888 
 Cost of sales                        (4,165)    (8,215)       (16,645) 
                                    ---------  ---------  ------------- 
 Gross profit                           1,045      2,936          6,243 
 Administrative expenses                (660)    (2,440)        (4,746) 
                                    ---------  ---------  ------------- 
 Operating profit                         385        496          1,497 
 Finance income                             2          3              5 
 Finance costs                           (25)       (35)           (83) 
 Profit before taxation                   362        464          1,419 
 Income tax expense                         -          -              - 
                                    ---------  ---------  ------------- 
 Profit for the period                    362        464          1,419 
                                    ---------  ---------  ------------- 
 
 
 Earnings per share (EPS):     3 
 Basic - pence                           2.96       3.80          11.62 
 Diluted - pence                         2.96       3.80          11.62 
 
 
 
                AssetCo plc 
     Statement of comprehensive income 
   for the six months ended 31 March 2019 
 
 
                                          Six months ended       Year ended 
                                         31 March   31 March   30 September 
                                             2019       2018           2018 
                                          GBP'000    GBP'000        GBP'000 
                                        ---------  ---------  ------------- 
 
 Recognised profit for the period             362        464          1,419 
 
 Other comprehensive (expense) / 
  income: 
 Exchange differences on translating 
  foreign operations                        (146)      (767)            760 
 Other comprehensive (expense) / 
  income net of tax                         (146)      (767)            760 
                                        ---------  ---------  ------------- 
 
 Total comprehensive (expense) / 
  income for the period                       216      (303)          2,179 
                                        ---------  ---------  ------------- 
 
 
           AssetCo plc 
  Statement of financial position 
        as at 31 March 2019 
 
 
                                              At 31 March       At 30 September 
                                              2019       2018              2018 
                                   Note    GBP'000    GBP'000           GBP'000 
                                         ---------  ---------  ---------------- 
 Assets 
 Non-current assets 
 Property, plant and equipment                  16          -                26 
 Cash held in respect of a bond                  -          -             1,199 
                                         ---------  ---------  ---------------- 
 Total non-current assets                       16          -             1,225 
                                         ---------  ---------  ---------------- 
 
 Current assets 
 Inventories                                     -          -                 - 
 Trade and other receivables        4       10,692     12,438            15,997 
 Cash and cash equivalents          5       18,257     19,554            16,800 
 Cash held in respect of bonds               3,290        320               941 
                                         ---------  ---------  ---------------- 
 Total current assets                       32,239     32,312            33,738 
                                         ---------  ---------  ---------------- 
 
 Total assets                               32,255     32,312            34,963 
                                         ---------  ---------  ---------------- 
 
 Shareholders' equity 
 Share capital                              25,474     25,474            25,474 
 Share premium                              64,941     64,941            64,941 
 Profit and loss account                  (60,229)   (62,927)          (60,445) 
                                         ---------  ---------  ---------------- 
 Total equity                               30,186     27,488            29,970 
 
 Liabilities 
 Current liabilities 
 Trade and other payables           6        2,069      4,824             4,993 
                                         ---------  ---------  ---------------- 
 Total current liabilities                   2,069      4,824             4,993 
                                         ---------  ---------  ---------------- 
 Total liabilities                           2,069      4,824             4,993 
                                         ---------  ---------  ---------------- 
 Total equity and liabilities               32,255     32,312            34,963 
                                         ---------  ---------  ---------------- 
 
 
               AssetCo plc 
      Statement of changes in equity 
  for the six months ended 31 March 2019 
 
 
                                            Share   Share premium      Profit and     Total 
                                          Capital                    loss reserve    equity 
                                          GBP'000         GBP'000         GBP'000   GBP'000 
                                        ---------  --------------  --------------  -------- 
 
 Balance at 30 September 2017              25,474          64,941        (62,624)    27,791 
 Profit for the period                          -               -             464       464 
 Other comprehensive income: 
 Exchange differences on translation            -               -           (767)     (767) 
 Total comprehensive income for 
  the period                                    -               -           (303)     (303) 
                                        ---------  --------------  --------------  -------- 
 
 Balance at 31 March 2018                  25,474          64,941        (62,927)    27,488 
                                        ---------  --------------  --------------  -------- 
 
 Profit for the period                          -               -             955       955 
 Other comprehensive expense: 
 Exchange differences on translation            -               -           1,527     1,527 
 Total comprehensive income for 
  the period                                    -               -           2,482     2,482 
                                        ---------  --------------  --------------  -------- 
 
 Balance at 30 September 2018              25,474          64,941        (60,445)    29,970 
                                        ---------  --------------  --------------  -------- 
 
 Profit for the period                          -               -             362       362 
 Other comprehensive income: 
  Exchange differences on translation           -               -           (146)     (146) 
                                        ---------  --------------  --------------  -------- 
 Total comprehensive income for 
  the period                                    -               -             216       216 
                                        ---------  --------------  --------------  -------- 
 
 Balance as at 31 March 2019               25,474          64,941        (60,229)    30,186 
                                        ---------  --------------  --------------  -------- 
 
 
               AssetCo plc 
         Statement of cash flows 
  for the six months ended 31 March 2019 
 
 
                                                     Six months ended       Year ended 
                                                    31 March   31 March   30 September 
                                                        2019       2018           2018 
                                             Note    GBP'000    GBP'000        GBP'000 
 
 Cash flows from operating activities 
 Cash generated from/(used by) operations     7        2,630    (1,602)        (3,453) 
 Cash deposited in respect of performance 
  bonds                                              (1,150)       (97)        (3,631) 
 Cash released in respect of performance 
  bonds                                                    -        102          2,028 
 Finance costs                                          (25)       (35)           (83) 
 Net cash generated from/(used by) 
  operating activities                                 1,455    (1,632)        (5,139) 
                                                   ---------  ---------  ------------- 
 
 Cash flows from investing activities 
 Finance income                                            2          3              5 
 Purchases of property, plant and 
  equipment                                                -          -           (26) 
 Net cash generated from investing 
  activities                                               2          3           (21) 
                                                   ---------  ---------  ------------- 
 
 Net change in cash and cash equivalents               1,457    (1,629)        (5,160) 
 Cash and cash equivalents at the 
  beginning of the period                             16,800     21,530         21,530 
 Exchange differences on translation                       -      (347)            430 
 Cash and cash equivalents at the 
  end of the period                                   18,257     19,554         16,800 
                                                   ---------  ---------  ------------- 
 
 
               AssetCo plc 
    Notes to the Financial Statements 
  for the six months ended 31 March 2019 
 
 
 1.   Legal status and activities 
      AssetCo plc (the "Company") is principally involved in the provision 
       of management and resources to the fire and rescue emergency services 
       in international markets. It currently trades through a branch 
       in the United Arab Emirates ("UAE") and its strategy is to develop 
       this business. As announced on 16 October 2018, the Company received, 
       on 15 October 2018, notice of termination of its contract in the 
       UAE. The contract terminated on 17 December 2018. Since termination, 
       the company has been tendering for new business, providing consultancy 
       and dealing with the outstanding bonds and receivables. 
 
       AssetCo plc is a public limited liability company incorporated 
       and domiciled in England and Wales. The address of its registered 
       office is Singleton Court Business Park, Wonastow Road, Monmouth, 
       Monmouthshire NP25 5JA. The Company operates from one site in 
       UAE. As at period end, the Company had no subsidiaries. 
 
       AssetCo plc shares are listed on the Alternative Investment Market 
       ("AIM") of the London Stock Exchange (AiM: symbol ASTO.L). 
 
 
 2.   Basis of preparation 
      The financial information in the Half-year Report has been prepared 
       using the recognition and measurement principles of International 
       Accounting Standards, International Financial Reporting Standards 
       and Interpretations adopted for use in the European Union (collectively 
       Adopted IFRSs). The principal accounting policies used in preparing 
       the Half-year Report are those the Group expects to apply in its 
       financial statements for the year ending 30 September 2019 and, 
       except as set out below, are unchanged from those disclosed in 
       the Annual Report and Financial Statements for the year ended 
       30 September 2018. 
       IFRS 9 'Financial Instruments' (effective 1 January 2018) introduces 
       a new model for the classification and measurement of financial 
       assets, a new expected credit loss model for the impairment of 
       financial assets held at amortised cost, and new requirements 
       for hedge accounting. There are also a number of new disclosure 
       requirements. The adoption of IFRS 9 has not had a material impact 
       on the company's results or financial position, but is expected 
       to result in further disclosures in the Report and Accounts for 
       the year ended 30 September 2019. 
       IFRS 15 'Revenue from Contracts with Customers (effective 1 January 
       2018) introduces a new five step model for the recognition of 
       revenue, which is based on the satisfaction of performance obligations. 
       The core principle is that an entity will recognise revenue to 
       depict the transfer of promised goods or services to customers 
       in an amount that reflects the consideration to which the entity 
       expects to be entitled in exchange for those goods and services. 
       The adoption of IFRS 15 has not had a material impact on the company's 
       results or financial position, but is expected to result in further 
       disclosures in the Report and Accounts for the year ended 30 September 
       2019. 
       The financial information for the six months ended 31 March 2019 
       and the six months ended 31 March 2018 is unaudited and does not 
       constitute the Company's statutory financial statements for those 
       periods. The comparative financial information for the full year 
       ended 30 September 2018 has, however, been derived from the audited 
       statutory financial statements for that period. A copy of those 
       statutory financial statements has been delivered to the Registrar 
       of Companies. 
       While the financial figures included in this Half-year Report 
       have been computed in accordance with IFRSs applicable to interim 
       periods, this Half-year Report does not contain sufficient information 
       to constitute an interim financial report as that term is defined 
       in IAS 34. 
       The financial statements have been presented in sterling to the 
       nearest thousand pounds (GBP'000) except where otherwise indicated. 
 
 
 3.    Earnings per share 
       Basic earnings per share is calculated by dividing the profit attributable 
        to ordinary equity holders of the Company by the weighted average 
        number of ordinary shares outstanding during the period. 
                                                     Six months ended         Year ended 
                                                    31 March     31 March   30 September 
                                                        2019         2018           2018 
                                                ------------  -----------  ------------- 
                                                     GBP'000      GBP'000 
  Profit for the year                                    362          464          1,419 
                                                ------------  -----------  ------------- 
  Weighted average number of ordinary 
   shares in issue                                12,211,163   12,211,163     12,211,163 
  Basic earnings per share (EPS) 
   - pence                                              2.96         3.80          11.62 
 
  There are no dilutive potential ordinary shares and, therefore, 
   the calculation of diluted earnings per share is the same as for 
   basic earnings per share. 
 
 
 4.    Trade and other receivables 
                                         31 March   31 March   30 September 
                                             2019       2018           2018 
                                          GBP'000    GBP'000        GBP'000 
                                        ---------  ---------  ------------- 
       Trade receivables                        -        103              - 
  Other receivables                           119        325            166 
  Prepayments and accrued income           10,573     12,010         15,831 
                                        ---------  ---------  ------------- 
                                           10,692     12,438         15,997 
                                        ---------  ---------  ------------- 
 
 
 5.    Cash and cash equivalents 
                                        31 March        30 September 
                                       2019      2018           2018 
                                    GBP'000   GBP'000        GBP'000 
                                   --------  --------  ------------- 
  Cash at bank and in hand           18,257    19,554         16,800 
                                   --------  --------  ------------- 
  Cash and cash equivalents          18,257    19,554         16,800 
                                   --------  --------  ------------- 
 
  UK sterling                         3,957     4,534          5,120 
  UAE Dirhams                        14,300    15,020         11,680 
                                   --------  --------  ------------- 
                                     18,257    19,554         16,800 
                                   --------  --------  ------------- 
 

In addition to the above UAE Dirhams amounting to GBP3,290,000 (31 March 2018: GBP320,000 and 30 September 2018: GBP2,140,000) were held on deposit as security in respect of outstanding performance bonds - see note 8 Contingent liabilities.

 
 6.    Trade and other payables 
                                             31 March   31 March   30 September 
                                                 2019       2018           2018 
                                              GBP'000    GBP'000        GBP'000 
                                            ---------  ---------  ------------- 
  Trade payables                                  225        690          1,003 
  Other payables                                  149      1,439          1,618 
  Other taxation and social security                3          2              3 
  Accruals and deferred income                  1,692      2,693          2,369 
                                            ---------  ---------  ------------- 
                                                2,069      4,824          4,993 
                                            ---------  ---------  ------------- 
 
 
 7.    Reconciliation of profit before taxation to net cash (used by) 
        / generated from operations 
                                              Six months ended      Year ended 
                                                  31 March        30 September 
                                                 2019      2018           2018 
                                              GBP'000   GBP'000        GBP'000 
                                            ---------  --------  ------------- 
 
  Profit for the period before 
   taxation                                       362       464          1,419 
       Depreciation                                10         -              - 
  Finance costs                                    25        35             83 
  Finance income                                  (2)       (3)            (5) 
  Decrease/(increase) in receivables            5,305   (2,327)        (5,085) 
  (Decrease)/increase in payables             (3,070)       229            135 
  Cash generated from/(used by) 
   operations                                   2,630   (1,602)        (3,453) 
                                            ---------  --------  ------------- 
 
 
 8.    Contingent liabilities 
                                            Approximate maximum potential liability 
                                                  31 March               30 September 
                                                 2019         2018               2018 
                                         ------------  -----------  ----------------- 
  Warranty bond related to a UAE 
   based contract, expected to 
   be released in full in 2020 
   (31 March 2018: Performance 
   bond related to the same UAE 
   based contract)                              1,200        2,225              1,200 
                                         ------------  -----------  ----------------- 
 
       Performance bond related to 
        a UAE based contract, released              -          100                  - 
        in full during 2018 
 
  Performance bond related to 
   a UAE based contract, expected 
   to be released in full during 
   2019                                         1,050            -              1,050 
 
  Performance bond related to 
   a UAE based contract, expected               1,050            -                  - 
   to be released in full during 
   2019 
 
 
 9.   Electronic communications 
      The Company is not proposing to bulk print and distribute hard 
       copies of this Half-year Report unless specifically requested 
       by individual shareholders; it can be downloaded from the Company's 
       website at www.assetco.com . 
       News updates, regulatory news, & financial statements can be viewed 
       and downloaded from the Company's website, www.assetco.com. Copies 
       can also be requested, in writing to, The Company Secretary, AssetCo 
       plc, Singleton Court Business Park, Wonastow Road, Monmouth, Monmouthshire 
       NP25 5JA. 
 
 
 Enquiries: 
  AssetCo plc 
  Tudor Davies, Chairman 
  Tel: +44 (0) 7785 703523 
  or +44 (0) 20 7614 5900 
 Arden Partners plc 
  Nominated adviser and broker 
  John Llewellyn-Lloyd/Ciaran Walsh 
  Equity Sales: John Peat 
  Tel: +44 (0) 20 7614 5900 
 TooleyStreet Communications 
  IR and media relations 
  Fiona Tooley 
  Mobile: +44 (0) 7785 703523 
  Email: fiona@tooleystreet.com 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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