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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Vsa Capital Grp | LSE:VSA | London | Ordinary Share | GB00B646RP91 | ORD 0.2P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.875 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMVSA
RNS Number : 9714S
VSA Capital Group PLC
07 December 2012
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012
VSA Capital Group plc
("VSA CAPITAL GROUP" or "THE COMPANY") (AIM: VSA)
7 December 2012
VSA Capital Group, the AIM listed natural resources focused corporate finance and broking firm, announces its interim results for the six month period ended 30 September 2012.
HIGHLIGHTS
-- Revenues for the six months ended 30 September 2012: GBP440,489 (H1 2011: GBP435,068).
-- Continued growth in clients at VSA Capital Limited. At 30 November 2012: 27 retained clients (November 2011: 18 clients).
-- Operating loss: GBP811,905 (H1 2011: GBP598,812 loss).
-- Net assets at 30 September 2012: GBP1,735,075 (H1 2011: GBP502,690).
-- Cash balance at 30 September 2012: GBP1,019,097 (H1 2011: GBP414,150) with a further GBP562,000 receivable in January 2013 in respect of a transaction completed in the prior period.
-- Commenced secondary trading after obtaining Variation of Permission from the FSA.
-- Staffing levels increased and new office facilities taken on to position the business to exploit anticipated opportunities.
-- Continuing market interest in VSA Capital's corporate finance, broking and investor relations services.
Commenting on today's results, Andrew Monk, Chief Executive of VSA Capital Group, said:
"VSA Capital Group has continued to experience difficult market conditions in this period. Nevertheless, progress has been made in establishing the infrastructure and the staff levels and expertise required to take the company forward to deliver a highly regarded natural resources focussed investment bank. The Board looks forward to delivering positive results for shareholders."
ENQUIRIES: - VSA Capital Group Plc Tel: 020-3005 5000 Andrew Monk, Chief Executive www.vsacapital.com Jonathan Berger, Finance Director NOMAD & JOINT BROKER Shore Capital Tel: 020-7468 7950 Bidhi Bhoma or Toby Gibbs www.shorecap.co.uk
JOINT BROKER
Peter House Corporate Finance Tel: 020-7562 3357
Jon Levinson www.pcorpfin.com
PUBLIC RELATIONS
Blythe Weigh Communications Tel: 020-7138 3204
Tim Blythe www.blytheweigh.com
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 (NYSE/OTCBB).
CHIEF EXECUTIVE OFFICER'S STATEMENT
Last year at our interim stage, I stated that the market was experiencing some of the worst conditions of the last 30 years. Sadly, this state of affairs continues. This remains a challenge but one I believe VSA can use to its advantage over the long term. To this end, the board has invested in its staff and facilities to increase the capability of the company to service its clients and position itself to take advantage of any opportunities or upturn in the market.
At the interim stage last year, we reported a loss of GBP0.6m and stated that we were engaged in a transaction that would have a significant impact on the Company. This transaction did occur and the company was subsequently able to report a turnover of GBP3.49m and operating profit of GBP0.62m for the year ended 31 March 2012. This year we may see the pattern repeating. We are reporting a loss of GBP0.8m after six months, but we are engaged in a number of transactions which, although none as significant as the deal we completed last year, when combined could deliver a more favourable result over the next six month period. Nevertheless, there is no certainty that these transactions will be brought to a successful conclusion, particularly under current market conditions. Despite the tough trading conditions, the Company has made progress and now has a much stronger balance sheet with net assets of GBP1.74m at 30 September 2012 (30 September 2011: GBP0.5m). We have grown the number of corporate clients we act for and continue to acquire good quality clients.
We were effectively a start-up business 2 years ago and have grown the business in a highly competitive market in poor trading conditions. The results should be viewed in this context.
We achieved our Variation of Permissions from the FSA to enable us to commence secondary trading at the start of September and are now acting as brokers in stocks for institutions on a global basis.
We also completed numerous road shows across London, Europe, China, the Middle East, Hong Kong and Singapore, the quantity and quality of which distinguish us from other domestic brokers.
It remains our ambition to attain Nominated Adviser status. We expect it will take longer than originally anticipated to obtain all the necessary qualifying transactions, given that there are so few transactions taking place in the current market.
Anglo African Agriculture plc, the African Agriculture shell that VSA created, was listed on ISDX (formerly PLUS Markets) and opened at a substantial premium indicating that there is a good appetite for such ventures. The Company intends to grow its proprietary activities.
Current trading appears to be picking up, albeit at a slow rate. There appears to still be reluctance amongst institutional investors to invest and, although we have good deal flow, completing transactions is not easy and we have seen slippage in timetables. We are engaged on some significant transactions and so we remain confident about the future. VSA Capital Group has a clear and consistent strategy. Our aim is to become the leading independent UK based resource focussed investment bank and continue to see our brand being recognised in the markets that we operate in. We have created a differentiated model at VSA Capital Group that, with time, should deliver positive returns regardless of market conditions.
Andrew Monk
Chief Executive Officer - VSA Capital Group plc
FINANCE DIRECTOR'S STATEMENT
Turnover and Profitability
Despite the uncertain state of the economy during the period, turnover during the first half of the current financial year was comparable with the same period last year - GBP440,489 (H1 2011: GBP435,068). We hope that the deals in the pipeline, where a considerable amount of work has been undertaken in the first six months, will deliver a more favourable outcome in the second half of the financial year.
Cost Base
The cost base has increased as the company positions itself to establish the required staff levels and expertise. With the move to our new offices, infrastructure costs have also increased. Nevertheless, the cost base relative to other businesses in this sector is relatively low and the business is now positioned to expand its revenues, while its cost base should only be subject to marginal increases.
Share Issue
As announced on 18 April 2012 the GBP300,000 convertible loan note outstanding was redeemed during the period with the issue of 6 million ordinary shares.
Cash flow
Notwithstanding the expenditure incurred in undertaking the current growth phase at VSA Capital Limited, the Company had accrued a healthy cash balance at 30 September 2012 totalling GBP1,019,000 (30 September 2011: GBP414,000), an increase of GBP605,000. A further GBP562,000 is receivable in January 2013 in respect of a transaction completed in the previous financial year.
The decrease in working capital has released funds to finance the company for the first 6 months along with the investment in the new office facilities, fittings and fixtures.
The Company continues to make regular monthly repayments of GBP10,000, plus quarterly interest payments, to the vendor of Softline Ltd under the terms of the vendor loan agreement, entered into on 14 February 2011, the outstanding balance of which totals GBP410,000 at 30 September 2012 (30 September 2011: GBP530,000).
Jonathan Berger
Finance Director - VSA Capital Group plc
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VSA CAPITAL GROUP PLC
CONSOLIDATED INCOME STATEMENT
6 months 12 months 6 months
ended ended ended
30-Sep-12 31-Mar-12 30-Sep-11
(Unaudited) (Audited) (Unaudited)
GBP GBP GBP
Revenue 440,489 3,494,665 435,068
Cost of Sales (6,490) (53,039) (27,170)
GROSS PROFIT 433,999 3,441,626 407,898
Investment income 16,713 70,484 296
Administrative expenses (1,244,746) (2,724,651) (968,878)
Finance Income 438 1,159
Finance costs (18,309) (172,885) (38,128)
------------ ------------ ------------
PROFIT / (LOSS) FOR THE PERIOD (811,905) 615,733 (598,812)
------------ ------------ ------------
Basic profit / (loss) per share (p) (1.63) 1.66 (1.78)
Diluted profit / (loss) per share (p) (1.51) 1.35 (1.41)
STATEMENT OF CHANGES IN EQUITY
For the period to 30 September 2012
6 months 12 months 6 months
ended ended ended
30-Sep-12 31-Mar-12 30-Sep-11
(Unaudited) (Audited) (Unaudited)
GBP GBP GBP
Loss of the financial period (811,905) 615,733 (598,812)
Issue of share capital 312,024 804,100 274,000
Increase / (decrease) in equity for equity-settled
share-based payments (1,000) 48,579 59,958
------------ ------------ ------------
Net increase/(decrease) in shareholders'
equity (500,881) 1,468,412 (264,854)
Equity at the start of the period 2,235,956 767,544 767,544
Equity at the end of the period 1,735,075 2,235,956 502,690
------------ ------------ ------------
VSA CAPITAL GROUP PLC
CONSOLIDATED BALANCE SHEET
30-Sep-12 31-Mar-12 30-Sep-11
(Unaudited) (Audited) (Unaudited)
GBP GBP GBP
ASSETS
Non-current assets
Property, plant and equipment 544,949 343,272 533,436
Trade and other receivables - - 73,310
------------ ------------ ------------
544,949 343,272 606,746
------------ ------------ ------------
Current assets
Investments 68,605 16,976 19,707
Trade and other receivables 1,009,039 1,948,882 580,513
Cash and cash equivalents 1,019,097 1,649,057 414,150
------------ ------------ ------------
Total current assets 2,096,741 3,614,915 1,014,370
------------ ------------ ------------
Total assets 2,641,690 3,958,187 1,621,116
------------ ------------ ------------
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Share capital 576,018 562,642 544,972
Share premium 1,142,236 843,587 5,913,437
Share based payments reserve 104,089 105,089 116,468
Retained earnings -87,268 724,638 (6,072,187)
------------ ------------ ------------
1,735,075 2,235,956 502,690
------------ ------------ ------------
Non-current liabilities
Long-term borrowings 290,000 650,000 710,000
------------ ------------ ------------
Total non-current liabilities 290,000 650,000 710,000
------------ ------------ ------------
Current liabilities
Trade and other payables 496,615 952,231 288,426
Current portion of long-term borrowings 120,000 120,000 120,000
------------ ------------ ------------
Total current liabilities 616,615 1,072,231 408,426
------------ ------------ ------------
Total liabilities 906,615 1,722,231 1,118,426
------------ ------------ ------------
Total equity and liabilities 2,641,690 3,958,187 1,621,116
------------ ------------ ------------
VSA CAPITAL GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT Six months 12 months Six months
ended ended ended
30-Sep-12 31-Mar-12 30-Sep-11
(Unaudited) (Audited) (Unaudited)
GBP GBP GBP
Cash flows from operating activities
Operating loss (794,034) 787,459 (560,979)
Adjustments for:
Depreciation of property, plant and equipment 18,513 49,931 149,966
Impairment of property, plant and equipment - 300,000 -
Share based payment expense (1,000) 48,579 59,957
Changes in working capital:
Current asset investments (51,629) 14,821 12,089
Trade and other receivables 939,843 (705,951) 589,109
Trade and other payables (455,616) 521,443 (142,362)
Net cash flows used in operating activities (343,923) (1,016,282) 107,780
------------ ------------ ------------
Cash flows from investing activities
Interest received 438 1,159 296
Purchases of property, plant and equipment (220,190) (13,503) (3,702)
------------ ------------ ------------
Net cash raised from/(used in) investing activities (219,752) (12,344) (3,406)
------------ ------------ ------------
Cash flows from financing activities
Interest paid (18,309) (172,885) (38,128)
Proceeds from issue of ordinary shares 312,024 804,100 274,000
Decrease in borrowings (360,000) (120,000) (60,000)
------------ ------------ ------------
Net cash raised from/(used in) financing activities (66,285) 511,215 175,872
------------ ------------ ------------
Net increase in cash and cash equivalents (629,960) 1,515,153 280,246
Cash and cash equivalents at beginning of period 1,649,057 133,904 133,904
------------ ------------ ------------
Cash and cash equivalents at end of period 1,019,097 1,649,057 414,150
------------ ------------ ------------
NOTES TO THE UNAUDITED INTERIM REPORT
1. Basis of preparation
This announcement was approved by the Board of directors on 6 December 2012.
The Interim Report has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and in accordance with International Accounting Standards (IAS) 34 - 'Interim Financial Reporting'.
The preparation of the interim financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of certain assets, liabilities, revenues and expenses together with disclosure of contingent assets and liabilities. Estimates and underlying assumptions are reviewed on an ongoing basis and there have been no significant changes in this six month period.
These condensed interim financial statements for the six months ended 30 September 2012 and the comparative figures for the six months ended 30 September 2011 are unaudited and have not been reviewed by the Auditors. The summary financial statements for the year ended 31 March 2012 represent an abbreviated version of the Group's full accounts for that year, on which the Auditors issued an unqualified audit report and which have been filed with the Registrar of Companies.
2. Going Concern
The Directors have a reasonable expectation that the Group and Company have adequate resources to continue in operational existence for the foreseeable future, a period of not less than twelve months from the date of this report. For this reason, the Directors continue to adopt the going concern basis in preparing the condensed interim financial statements.
3. Convertible Loan Note
On 18 April 2012, the Company redeemed the GBP300,000 nominal of Convertible Loan Notes of GBP1.00 each, which accrued interest at a rate of 9% per annum and which were issued by the Company in connection with the purchase of VSA Capital Limited. The proceeds were immediately re-invested into VSA Capital Group plc via a placing of 6,000,000 new ordinary shares of 0.2p each in the capital of the Company at 5 pence per new Ordinary Share, effectively converting the debt into equity. Taken together, these transactions generated a cash flow benefit to the Company, will save on potential future interest payments at 9% per annum and will strengthen its balance sheet.
4. Risks and Uncertainties
A detailed explanation of the potential risks and uncertainties which could have a material impact on the Group's performance can be found on pages 28 and 29 of the annual report which is available at www.vsacapital.com.
5. Segmental Reporting
The loss for the 6 month period of GBP811,905 (2011 - GBP598,812) can be allocated as shown below.
Segment Profit & Loss
For the period to 30 September
2012
Financial Plc
Services Unallocated Total
GBP GBP GBP
Rendering of services 386,519 - 386,519
Other income 53,970 16,713 70,683
Interest 438 - 438
Total revenue 440,927 16,713 457,640
Cost of sales 6,490 - 6,490
Administrative expenses 1,169,797 56,437 1,226,234
Depreciation 12,649 5,864 18,513
Finance costs - 18,308 18,308
Share-based payments charge - - -
Loss for the period (748,009) (63,896) (811,905)
---------- ------------ ----------
All sales were to third party customers. Although the Company operates in global markets its businesses are based solely within the UK and the Directors do not believe that a geographical breakdown of the Company's activities would provide a meaningful analysis of its performance.
Segment Assets Financial Plc
As at 30 September 2012 Services Unallocated Total
GBP GBP GBP
Assets
Non-Current 218,663 326,286 544,949
Current 1,104,176 992,565 2,096,741
---------- ------------ ----------
Total Assets 1,322,839 1,318,851 2,641,690
---------- ------------ ----------
Liabilities
Non-Current - 290,000 290,000
Current 412,998 203,617 616,615
---------- ------------ ----------
412,998 493,617 906,615
---------- ------------ ----------
Net Assets/Liabilities 909,841 825,234 1,735,075
---------- ------------ ----------
6. Taxation
Due to the Company's losses, no taxation charge has arisen for the period.
7. Dividend
The Directors have not declared an interim dividend.
8. Earnings per ordinary share
The calculation of basic earnings per ordinary share is based on the result for the period and the weighted average number of shares in issue during the period.
6 months 12 months 6 months
ended ended ended
30-Sep-12 31-Mar-12 30-Sep-11
(Unaudited) (Audited) (Unaudited)
Weighted average number of ordinary
shares in issue 49,705,837 37,031,403 33,718,039
Dilutive potential ordinary shares:
Employee share options 3,686,000 4,869,365 5,069,365
Contractual termination payment
to Director - 500,000 500,000
Convertible Loan Note - 2,727,273 2,727,273
Warrants attached to Convertible
Loan Note 250,000 250,000 250,000
Warrants attached to GBP5m Equity
Financing Facility 250,000 250,000 250,000
Profit / (Loss) after tax (GBP) (811,905) 615,733 (598,810)
Basic earnings per share - pence
per share (p) (1.63) 1.66 (1.78)
Diluted earnings per share - pence
per share (p) (1.51) 1.35 (1.41)
9. Availability of Accounts
Copies of this statement are available to shareholders and members of the public, free of charge, from the Company's principal place of business at New Liverpool House,15-17 Eldon Street, London EC2M 7LD. Alternatively a downloadable version is available from the following web address: www.vsacapital.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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