Trading Update and Related Matters (8622A)

TIDMVSA

RNS Number : 8622A

VSA Capital Group PLC

05 April 2012

AIM: VSA

VSA Capital Group plc

("VSA Capital Group" or "the Group")

Trading Update and Related Matters

5 April 2012

Trading update

VSA Capital Group announces a trading update for the year ended 31 March 2012.

As announced on 16 January 2012, the Directors are pleased to confirm that net profit for the year ended 31 March 2012 is expected to be in excess of GBP500,000. The Board believes this is a good result for the first full year of trading by the Group's principal operating subsidiary, VSA Capital Limited ("VSA"). The balance sheet of the Group has been substantially improved during the course of the year and cash balances at the year-end are expected to exceed GBP1.5 million with gross assets exceeding GBP3.5 million.

During the year, VSA has invested selectively in people to build its capabilities and it expects to continue this investment in the year ahead as it positions itself to become a leading independent resources focused investment bank in London. It expects to start secondary trading this summer and hopes to obtain NOMAD status before the end of 2012.

The Directors are also pleased to announce that the Group is currently floating its first "cash shell", Anglo African Agriculture Plc, on PLUS-SX, which will have a mandate to invest in projects focussed on African agriculture. This will be a fledgling business but the Directors believe one with great growth potential and its creation follows their strategy of giving the Group more proprietary capability. The Group will make an initial investment of GBP50,000 into this new company.

Option Allotment

The Board has today granted options to a Director and staff over 4,966,000 ordinary shares in the Group at an exercise price of 9 pence per share. Included in this amount are options over 236,000 ordinary shares granted to Andrew Monk, CEO.

Following the allotment, Andrew Monk's aggregate interests in the capital of the Group will comprise:

 
             Shares       % of         Options exercisable        Warrants exercisable 
                          total                at:                         at: 
                          share 
                         capital 
---------  ----------  ---------  ----------------------------  ----------------------- 
                                     9p        10p       15p        8p          10p 
---------  ----------  ---------  --------  --------  --------  ----------  ----------- 
  Monk, 
  Andrew    5,400,000    12.36%    236,000   850,000   400,000    62,500      250,000 
---------  ----------  ---------  --------  --------  --------  ----------  ----------- 
 

In addition, options over 1,850,000 ordinary shares previously granted to certain key members of staff more than 12 months ago at an exercise price of 15 pence per share were cancelled. The effective re-pricing of certain options is not expected to be a recurring event.

Loan Notes

The Board is in discussions with the holders of the Loan Notes (one of whom is Andrew Monk), which were issued in connection with the purchase of VSA Capital Limited by the Group, with a view to redeeming these Loan Notes early on the basis that this amount would be immediately re-invested into VSA Capital Group via a placing of new ordinary shares, effectively converting the debt into equity ("Proposed Redemption").

These actions would generate a cash flow benefit to the Group, save on potential future interest payments at 9% per annum and would strengthen its balance sheet. If effected the Proposed Redemption would constitute a related party transaction under the AIM Rules for Companies. An announcement will be made in due course should these discussions reach a successful conclusion.

Board change

The Board announces that Peter Joy, the Group's Finance Director, has tendered his resignation from the board and will be leaving the group within the next six months in order to pursue other interests.

Peter joined VSA Capital Group in February 2010 when the Group was a loss making software business and leaves following its transformation into a profitable and growing Natural Resources Investment Bank.

The Board has already started its search to find a suitable new replacement as Group Finance Director and Peter will be assisting with this process.

For further information, please contact:

VSA Capital Group plc

   Andrew Monk, CEO                                                        020 3005 5000 

Blythe Weigh Communications

   Tim Blythe                                                                          020 7138 3204 

Shore Capital and Corporate Limited

   Bidhi Bhoma or Toby Gibbs                                         020 7408 4090 

Rivington Street Corporate Finance

   Jon Levinson                                                                      020 7562 3357 

NOTES TO EDITORS

VSA Capital Group plc is an international investment banking and institutional broking group headquartered in London. Via its subsidiary, VSA Capital Limited, the group provides corporate finance, broking, research, sales and capital raising capabilities to companies in the natural resources sectors; Oil & Gas, Mining, Agriculture and Timber.

VSA Capital Limited is authorised and regulated by the FSA and advises companies listed in London (AIM and the Main Market), Canada (TSX) Australia (ASX) and the USA (OTCBB) with assets on every continent. The firm currently has 20 retained corporate clients with an aggregate market value of over $1bn.

This information is provided by RNS

The company news service from the London Stock Exchange

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