Final Results
29 September 2003 - 7:05PM
UK Regulatory
RNS Number:2629Q
Legendary Investments PLC
29 September 2003
FOR IMMEDIATE RELEASE
LEGENDARY INVESTMENTS PLC (LEG)
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2003
Highlights
* Operating costs reduced by #134,000
* Value of the investment portfolio fell, but by less than the main market
indices
* Since 31 March, the value of the portfolio has increased.
Shami Ahmed, Chief Executive of Legendary Investments commented:
"The past year has been turbulent with an uncertain political and economic
environment. It was a year of consolidation for Legendary Investments.
Selected disposals have been made and continue to be made as the markets
improve. In addition, operating costs have been reduced. The Company is
being positioned to take advantage of the improving economic environment and
rising markets. We look forward to the coming year."
For further information please contact:
Zafar Karim Legendary Investments 020 7887 1338
Sarah Wharry Seymour Pierce 020 7107 8000
Chief EXECUTIVE's STATEMENT
Review of Activities
Last year difficult market conditions affected your Company's performance. This
year, conditions did not improve. The year to 31 March 2003 was more turbulent
than the previous year. Global political uncertainties culminated in March
leading to the action in Iraq by the US and UK forces. These uncertainties
adversely impacted the economic environment and markets worldwide. The UK
markets were particularly affected. Between the beginning of April 2002 and the
end of March 2003, the main UK market indices fell by over 30%.
Despite the adverse environment, your Company continued to review investments,
both off-market and on market, with a view to positioning the Company to focus
on niche investments where the investee companies might benefit from your
Company's hands on investment process in which the investee companies are
assisted in certain areas such as product development and marketing.
Several investments were reviewed during the year, though only a few were made
due to a more cautionary approach being taken in light of the economic
environment. Certain disposals of investments were also made.
Your Company continues to adopt a prudent approach to valuing its portfolio.
Investments are held at cost, less provisions, or where the investment is
quoted, at the year end mid-market value. Application of this prudent approach
led to #1.3m of writedowns, or 30% of the portfolio. This compares with the
movement of the main market indices which fell by over 30%.
Since the 31 March 2003, the markets have recovered somewhat, as has the value
of your Company's listed investments.
On an operational level, efforts were made to reduce costs. Operating costs were
reduced by #134,000. These reductions included a reduction of aggregate
directors' emoluments from #105,000 to #57,000. Your Company continues to review
costs to see where further efficiencies may be made.
Overall, your Company made a net loss of #2.2m compared with a net loss of #1.9
m last year.
The performance of your Company in the year under review has been disappointing.
In the context of the wider political, economic and market environment, however,
your Company has performed adequately. Writedowns as a percentage of your
Company's portfolio have been lower than the falls in the main market indices.
Since the end of the year, the value of listed investments in your Company's
portfolio has increased. In addition, your Company's management has taken steps
to reduce operating costs including substantially reducing directors'
emoluments.
Outlook
Your Company is an investment company that invests in both private and public
companies. Since its inception, markets have tumbled, and the economic and
political environment has deteriorated. While not wishing to be hostage to
fortune, recent market performance and indicators point towards the market
having bottomed and now being on the road to recovery. Your Company's management
is confident of being able to take advantage of any rally and consequently
intends to pursue a more aggressive investment approach in the coming year.
A new Non-Executive Director, Zafar Karim, has been appointed to your Company's
Board. Zafar has been known to me for some time. He has over a decade of
experience in investment banking with leading City and Wall Street institutions.
His knowledge and skills deepen and broaden the expertise available to your
Company.
Smit Berry resigned his directorship of your Company. We wish him every success
in his future endeavours.
Shami Ahmed
Chief Executive
26 September 2003
Registered Office:
4th Floor, Wembley Point
1 Harrow Road
Wembley
Middx HA9 6DE
PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2003
2003 2002
#'000 #'000
Administrative expenses (385) (519)
Net losses on investments (1,826) (1,430)
------- -------
Operating loss (2,211) (1,949)
Income from fixed asset investments - 24
Interest receivable 12 21
Interest payable (2) (3)
------- -------
Loss on ordinary activities before taxation (2,201) (1,907)
Taxation - -
------- -------
Retained loss for the financial period (2,201) (1,907)
------- -------
Loss per share
- basic (0.4p) (0.4)p
- fully diluted (0.4p) (0.4)p
------- -------
A separate statement of recognised gains and losses has not been prepared as the
Company has no recognised gains or losses in the current or prior period other
than the losses for the periods.
A separate note of historical cost profits and losses has not been prepared as
the practice of marking to market is not considered to be a departure from the
historical cost convention. Accordingly, the figures presented above are
prepared on the historical cost basis.
BALANCE SHEET
As at 31 March 2003
2003 2002
#'000 #'000 #'000 #'000
FIXED ASSETS
Tangible assets 3 6
Fixed asset investments 2,489 5,791
------ ------
2,492 5,797
CURRENT ASSETS
Debtors 32 32
Current asset investments 376 289
Cash at bank and in hand - 315
------ ------
408 636
CREDITORS: amounts falling due within
one year (769) (2,101)
------ -------
Net current LIABILITIES (361) (1,465)
------ ------
TOTAL ASSETS LESS CURRENT 2,131 4,332
LIABILITIES
Capital and reserves
Called up share capital 532 532
Share premium account 7,881 7,881
Profit and loss account - deficit (6,282) (4,081)
----- -----
Equity Shareholders' funds 2,131 4,332
----- -----
CASHFLOW STATEMENT
For the year ended 31 March 2003
#'000 2003 #'000 2002
#'000 #'000
Net cash outflow from operating
activities (1,016) (108)
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Income from fixed asset investments - 24
Interest received 13 6
Interest paid (2) (3)
------ ------
10 27
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Payments to acquire tangible assets - (2)
Payments to acquire fixed asset
investments (938) (6,711)
Payments to acquire current asset
investments (9,598) (9,896)
Receipts from fixed assets
investments 1,044 6,924
Receipts from current asset
investments 9,947 9,824
Net cash INFLOW from investing 455 139
activities
----- -----
Net cash outflow before financing (551) 58
FINANCING
Issue of ordinary share capital - -
----- -----
Increase in cash (551) 58
----- -----
1. BASIS OF PREPARATION
The results incorporated in the preliminary announcement have been
prepared on the basis of accounting policies consistent with previous
years.
The preliminary announcement was approved by the Board of directors on
26 September 2003. The figures for the year ended 31 March 2003 do not
constitute full accounts within the meaning of Section 240 of the
companies Act 1985
The figures for the year ended 31 March 2002 have been extracted from
the accounts for 2002, which have been delivered to the registrar of
companies. The auditors have reported on those accounts their reports
were unqualified and did not contain statements under section 237 (2) of
(3) of the Companies Act 1985
The Annual Report and Accounts for the year ended 31 March 2003 will be
sent to shareholders in September 2003.
2003 2002
2 LOSS PER ORDINARY SHARE #'000 #'000
Attributable loss (#'000) (2,200) (1,917)
Average number of ordinary shares in issue ('000) 532,067 532,067
Average number of ordinary shares in issue
and over which options have been granted ('000) 532,067 540,582
Basic loss per share (pence) 0.4p 0.4p
----- -----
Fully diluted loss per share (pence) 0.4p 0.4p
----- -----
The fully diluted loss per share takes account of outstanding share
options and warrants, to the extent that they are dilutative.
3 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' 2003 2002
FUNDS #'000 #'000
Opening shareholders' funds 4,332 6,239
Loss for the financial period (2,201) (1,907)
----- -----
Closing shareholders' funds 2,131 4,332
----- -----
4 RECONCILIATION OF OPERATING LOSS TO NET CASH 2003 2002
OUTFLOW FROM OPERATING ACTIVITIES #'000 #'000
Operating loss (2,211) (1,949)
Depreciation of tangible fixed assets 3 4
Net increase in provision for unrealised losses on 1,209 254
investments
Decrease/(increase) in debtors 1 257
(Decrease)/increase in creditors (18) 1,326
----- -----
Net cash outflow from operating activities (1,016) (108)
----- -----
5 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET
DEBT
#'000
Decrease in cash in the period (551)
Net cash at 31 March 2002 315
-----
Net debt at 31 March 2003 (236)
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This information is provided by RNS
The company news service from the London Stock Exchange
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