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ASTO Assetco Plc

32.50
0.00 (0.00%)
Last Updated: 08:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Assetco Plc LSE:ASTO London Ordinary Share GB00BQ2K3557 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 32.50 32.00 33.00 32.50 32.50 32.50 93,400 08:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Offices-holdng Companies,nec 8.18M -8.44M -1.0018 -0.32 2.74M

AssetCo PLC Half-year Report - six months ended 31 March 2020 (4578P)

10/06/2020 7:00am

UK Regulatory


Assetco (LSE:ASTO)
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From Mar 2019 to Mar 2024

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TIDMASTO

RNS Number : 4578P

AssetCo PLC

10 June 2020

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.

 
 10 June 2020   Immediate Release 
 

AssetCo plc

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

("AssetCo" or the "Company")

2020 Half-year Report

for the six months ended 31 March 2020

Chairman's statement

Our focus has continued to be on regaining and developing new business in the Middle East and realising the cash in receivables and bonds from the previous contract and completing the action for negligence against Grant Thornton. The results for the six months to 31 March 2020 are a loss of GBP0.7m, reflecting the costs of operating in Abu Dhabi, dealing with business development, and the costs associated with the Court of Appeal hearing during January 2020.

We have made good progress collecting the outstanding receivables and bonds but the pursuit of new business and gaining new revenues has been slowed considerably by the CV19 lockdowns. This has resulted in a strong liquidity with cash balances of GBP29.6m, of which GBP26.1m is available and GBP3.5m cash held in respect of bonds, of which GBP1.2m has been received after the end of the half year, with the remainder expected to be released over the course of the year. Whilst reasonably good progress had been made in pursuing opportunities in the Middle East, the effects of the CV19 pandemic has resulted in delays to the Board's expectations for new business generation and revenues. The Board considers that the Company's strong financial position may also be suitably deployed in investing in other revenue-producing opportunities that may arise from the current economic recession.

Capital Reorganisation and Reduction

We are continuing our presence in the Middle East and awaiting the Court of Appeal's decision in respect of the claim against Grant Thornton. However, the Board considers that a large proportion of the cash balances are surplus to these requirements, and although future investments may arise, it may also be appropriate to return surplus cash to shareholders.

Whilst no formal Board decision has been made on the use of these funds, we are currently in the position of having net assets of GBP28.4m, cash balances of GBP26m but negative distributable reserves of GBP62m. The Board would like to take the opportunity to create distributable reserves to provide the flexibility to be able to make future distributions to shareholders. A Circular will be posted to shareholders today seeking shareholder approval for a Capital Reduction which, if approved, will then be subject to the necessary Court approvals which we expect to be heard during August 2020.

Negligence Claim against Grant Thornton

As previously reported, in January 2019, AssetCo Plc was awarded damages of GBP22.4m plus interest of approximately GBP6.5m plus 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 these funds is now dependent on the decision of the Court of Appeal which was heard in January 2020. We were expecting to hear the result of this appeal at some stage before or in the early part of the summer but have received no indication of when exactly this decision may be.

Outlook

We shall keep shareholders informed of any developments regarding the Capital Reorganisation, the result of the Court of Appeal, and on the further development of the business in UAE.

Tudor Davies

Chairman

 
               AssetCo plc 
             Income statement 
  for the six months ended 31 March 2020 
 
 
                                             Six months ended       Year ended 
                                     Note   31 March   31 March   30 September 
                                                2020       2019           2019 
                                             GBP'000    GBP'000        GBP'000 
                                           ---------  ---------  ------------- 
 
 Revenue                                           -      5,210          5,345 
 Cost of sales                                     -    (4,165)        (4,237) 
                                           ---------  ---------  ------------- 
 Gross profit                                      -      1,045          1,108 
 Administrative expenses                       (714)      (660)        (1,810) 
                                           ---------  ---------  ------------- 
 Operating (loss)/profit                       (714)        385          (702) 
 Finance income                                   11          2              9 
 Finance costs                                  (39)       (25)           (70) 
 (Loss)/profit before taxation                 (742)        362          (763) 
 Income tax expense                                -          -              - 
                                           ---------  ---------  ------------- 
 (Loss)/profit for the period                  (742)        362          (763) 
                                           ---------  ---------  ------------- 
 
 
 (Loss)/earnings per share (EPS):     3 
 Basic - pence                                (6.08)       2.96         (6,25) 
 Diluted - pence                              (6.08)       2.96         (6.25) 
 
 
 
                AssetCo plc 
     Statement of comprehensive income 
   for the six months ended 31 March 2020 
 
 
                                          Six months ended       Year ended 
                                         31 March   31 March   30 September 
                                             2020       2019           2019 
                                          GBP'000    GBP'000        GBP'000 
                                        ---------  ---------  ------------- 
 
 Recognised (loss)/profit for the 
  period                                    (742)        362          (763) 
 
 Other comprehensive (expense) / 
  income: 
 Exchange differences on translating 
  foreign operations                        (743)      (146)            648 
 Other comprehensive (expense) / 
  income net of tax                         (743)      (146)            648 
                                        ---------  ---------  ------------- 
 
 Total comprehensive (expense) / 
  income for the period                   (1,485)        216          (115) 
                                        ---------  ---------  ------------- 
 
 
           AssetCo plc 
  Statement of financial position 
        as at 31 March 2020 
 
 
                                             At 31 March       At 30 September 
                                             2020       2019              2019 
                                  Note    GBP'000    GBP'000           GBP'000 
                                        ---------  ---------  ---------------- 
 Assets 
 Non-current assets 
 Property, plant and equipment                  -         16                 - 
 Total non-current assets                       -         16                 - 
                                        ---------  ---------  ---------------- 
 
 Current assets 
 Trade and other receivables       4          116     10,692            11,222 
 Cash and cash equivalents         5       26,075     18,257            17,101 
 Cash held in respect of bonds              3,464      3,290             3,487 
                                        ---------  ---------  ---------------- 
 Total current assets                      29,655     32,239            31,810 
                                        ---------  ---------  ---------------- 
 
 Total assets                              29,655     32,255            31,810 
                                        ---------  ---------  ---------------- 
 
 Share capital                             25,474     25,474            25,474 
 Share premium                             64,941     64,941            64,941 
 Profit and loss account                 (62,045)   (60,229)          (60,560) 
                                        ---------  ---------  ---------------- 
 Total equity                              28,370     30,186            29,855 
 
 Liabilities 
 Current liabilities 
 Trade and other payables          6        1,285      2,069             1,955 
                                        ---------  ---------  ---------------- 
 Total current liabilities                  1,285      2,069             1,955 
                                        ---------  ---------  ---------------- 
 Total liabilities                          1,285      2,069             1,955 
                                        ---------  ---------  ---------------- 
 Total equity and liabilities              29,655     32,255            31,810 
                                        ---------  ---------  ---------------- 
 
 
               AssetCo plc 
      Statement of changes in equity 
  for the six months ended 31 March 2020 
 
 
                                            Share   Share premium      Profit and     Total 
                                          Capital                    loss reserve    equity 
                                          GBP'000         GBP'000         GBP'000   GBP'000 
                                        ---------  --------------  --------------  -------- 
 
 Balance at 1 October 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 at 31 March 2019                  25,474          64,941        (60,229)    30,186 
                                        ---------  --------------  --------------  -------- 
 
 (Loss) for the period                          -               -         (1,125)   (1,125) 
 Other comprehensive expense: 
 Exchange differences on translation            -               -             794       794 
 Total comprehensive income for 
  the period                                    -               -           (331)     (331) 
                                        ---------  --------------  --------------  -------- 
 
 Balance at 30 September 2019              25,474          64,941        (60,560)    29,855 
                                        ---------  --------------  --------------  -------- 
 
 (Loss) for the period                          -               -           (742)     (742) 
 Other comprehensive income: 
  Exchange differences on translation           -               -           (743)     (743) 
                                        ---------  --------------  --------------  -------- 
 Total comprehensive income for 
  the period                                    -               -         (1,485)   (1,485) 
                                        ---------  --------------  --------------  -------- 
 
 Balance as at 31 March 2020               25,474          64,941        (62,045)    28,370 
                                        ---------  --------------  --------------  -------- 
 
 
               AssetCo plc 
         Statement of cash flows 
  for the six months ended 31 March 2020 
 
 
                                                     Six months ended       Year ended 
                                                    31 March   31 March   30 September 
                                                        2020       2019           2019 
                                             Note    GBP'000    GBP'000        GBP'000 
 
 Cash flows from operating activities 
 Cash generated from/(used by) operations     7        9,653      2,630          1,709 
 Cash deposited in respect of performance 
  bonds                                                    -    (1,150)        (2,470) 
 Cash released in respect of performance 
  bonds                                                    -          -          1,123 
 Finance costs                                          (39)       (25)           (70) 
 Net cash generated from/(used by) 
  operating activities                                 9,614      1,455            292 
                                                   ---------  ---------  ------------- 
 
 Cash flows from investing activities 
 Finance income                                           11          2              9 
 Net cash generated from investing 
  activities                                              11          3              9 
                                                   ---------  ---------  ------------- 
 
 Net change in cash and cash equivalents               9,625      1,457            301 
 Cash and cash equivalents at the 
  beginning of the period                             17,101     16,800         16,800 
 Exchange differences on translation                   (651)          -              - 
 Cash and cash equivalents at the 
  end of the period                                   26,075     18,257         17,101 
                                                   ---------  ---------  ------------- 
 
 
               AssetCo plc 
    Notes to the Financial Statements 
  for the six months ended 31 March 2020 
 
 
 
 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 2020 and, 
       except as set out below, are unchanged from those disclosed in 
       the Annual Report and Financial Statements for the year ended 
       30 September 2019. 
       IFRS 16 'Leases' was adopted by the company with effect from 1 
       October 2019 but it has had no significant effect on either the 
       company's balance sheet position or income statement. The company 
       has adopted IFRS 16 using the modified retrospective transition 
       approach, which does not require the restatement of comparative 
       figures. Adoption of IFRS 16 has not resulted in right of use 
       assets and lease liabilities being recognised on the balance sheet. 
       The financial information for the six months ended 31 March 2020 
       and the six months ended 31 March 2019 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 2019 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.    (Loss)/earnings per share 
       Basic (loss)/earnings per share is calculated by dividing the 
        (loss)/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 
                                                    2020         2019           2019 
                                             -----------  -----------  ------------- 
                                                 GBP'000      GBP'000        GBP'000 
  (Loss)/profit for the year                       (742)          362          (763) 
                                             -----------  -----------  ------------- 
  Weighted average number of ordinary 
   shares in issue                            12,211,163   12,211,163     12,211,163 
  Basic (loss)/earnings per share 
   (EPS) - pence                                  (6.08)         2.96         (6.25) 
 
  There are no dilutive potential ordinary shares and, therefore, 
   the calculation of diluted (loss)/earnings per share is the same 
   as for basic (loss)/earnings per share. 
 
 
 4.    Trade and other receivables 
                                         31 March   31 March   30 September 
                                             2020       2019           2019 
                                          GBP'000    GBP'000        GBP'000 
                                        ---------  ---------  ------------- 
  Trade receivables                             -          -         11,054 
  Other receivables                            68        119             83 
  Prepayments and accrued income               48     10,573             85 
                                        ---------  ---------  ------------- 
                                              116     10,692         11,222 
                                        ---------  ---------  ------------- 
 
 
 5.    Cash and cash equivalents 
                                    31 March   31 March   30 September 
                                        2020       2019           2019 
                                     GBP'000    GBP'000        GBP'000 
                                   ---------  ---------  ------------- 
  Cash at bank and in hand            26,075     18,257         17,101 
                                   ---------  ---------  ------------- 
  Cash and cash equivalents           26,075     18,257         17,101 
                                   ---------  ---------  ------------- 
 
  UK sterling                         25,375      3,957         15,894 
  UAE Dirhams                            700     14,300          1,207 
                                   ---------  ---------  ------------- 
                                      26,075     18,257         17,101 
                                   ---------  ---------  ------------- 
 

In addition to the above UAE Dirhams amounting to GBP3,464,000 (31 March 2019: GBP3,290,000 and 30 September 2019: GBP3,487,000) 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 
                                                 2020       2019           2019 
                                              GBP'000    GBP'000        GBP'000 
                                            ---------  ---------  ------------- 
  Trade payables                                   34        225            166 
  Other payables                                   34        149             87 
  Other taxation and social security                3          3              3 
  Accruals and deferred income                  1,214      1,692          1,699 
                                            ---------  ---------  ------------- 
                                                1,285      2,069          1,955 
                                            ---------  ---------  ------------- 
 
 
 7.    Reconciliation of profit before taxation to net cash (used by) 
        / generated from operations 
                                            Six months ended      Year ended 
                                                31 March        30 September 
                                               2020      2019           2019 
                                            GBP'000   GBP'000        GBP'000 
                                          ---------  --------  ------------- 
 
  (Loss)/profit for the period 
   before taxation                            (742)       362          (763) 
  Depreciation                                    -        10             26 
  Finance costs                                  39        25             70 
  Finance income                               (11)       (2)            (9) 
  Decrease in receivables                    11,031     5,305          5,670 
  (Decrease) in payables                      (664)   (3,070)        (3,285) 
  Cash generated from/(used by) 
   operations                                 9,653     2,630          1,709 
                                          ---------  --------  ------------- 
 
 
 8.    Contingent liabilities 
                                            Approximate maximum potential liability 
                                                  31 March               30 September 
                                                 2020          2019              2019 
                                              GBP'000       GBP'000           GBP'000 
                                         ------------  ------------  ---------------- 
  Warranty bond related to a UAE 
   based contract, expected to 
   be released in full in 2020 
   (31 March 2019: Performance 
   bond related to the same UAE 
   based contract)                              1,270         1,200             1,270 
                                         ------------  ------------  ---------------- 
 
  Performance bond related to 
   a UAE based contract, expected 
   to be released in full during 
   2020                                         1,100         1,050             1,100 
 
  Performance bond related to 
   a UAE based contract, expected 
   to be released in full during 
   2020                                         1,100         1,050             1,100 
 
 
 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 
  Corporate Broking: Simon Johnson 
  Tel: +44 (0) 20 7614 5900 
 Tooley Street 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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