TIDMCHA
RNS Number : 8594R
Concha plc
14 December 2016
14 December 2016
Concha PLC
("Concha" or the "Company")
Final Results for the Year Ended 30 June 2016
Concha (AIM: CHA), the AIM quoted investment company focussed on
investing in media, communications and technology companies,
announces its audited results for the year ended 30 June 2016.
A copy of the report and accounts for the year ended 30 June
2016 will be posted to shareholders today and are available on the
Company's website: www.concha-plc.com .
Enquiries:
Concha PLC
Chris Akers, Executive Chairman chris.akers@srgplc.com
SPARK Advisory Partners Limited (Nominated Advisor)
Sean Wyndham-Quin / Mark Brady Tel: 0203 368 3550
Buchanan (Financial PR)
Richard Oldworth Tel: 0207 466 5000
CHAIRMAN'S STATEMENT
Introduction
It was a disappointment to both the Board and shareholders
alike, that following a prolonged and intense period of review and
evaluation your Board took the difficult but correct decision to
terminate discussions with the target investee company at the end
of December 2015. In the immediate period following this
conclusion, your Board gave significant consideration as to how it
should best fulfil its investment strategy and restore value to its
shareholder base. The reported loss of GBP0.98m for the year (2015:
Loss GBP0.63m) includes a charge in respect of share based payments
of GBP0.27m (2015: GBP0.08m) together with costs of GBP0.12m
associated with pursuing the discussions with the target investee
company to its conclusion which included fees associated with an
extensive due diligence exercise and costs associated with the
tenure of a new senior executive who was appointed to further
supplement the Board's corporate finance resource.
These statements provide an update as to the conclusion of that
review, the key investment initiatives your Board has taken during
the year under review and how Concha intends to continue to execute
on its investment strategy going forward.
Ve Interactive Limited
Following a careful review of the events leading up to December
2015, the Board felt it appropriate to seek to identify more mature
investment opportunities, ideally those which had demonstrated a
strong track record of sales growth, margin performance, geographic
reach and on a trajectory towards a public offering within a
two-year window from the time of investment.
In March 2016, your Board formed Concha Investments Limited
("CIL"), a wholly owned subsidiary company established for the
specific purpose of evaluating and where appropriate consummating
investment opportunities. CIL is registered in Malta, a
jurisdiction which although highly regulated will ensure the Group
is able to preserve both flexibility whilst at the same time
mitigate any value leakage at the time of any subsequent disposal.
Also during March 2016, CIL acquired a minority stake in Ve
Interactive Limited ("Ve"), a global technology company formed in
2009 which drives website traffic and reduces abandonment at each
stage of the customer journey on a web-site. Ve won the annual
Sunday Times Hiscox Tech Track 100 in 2015. At the time of the
investment, Ve serviced over 10,000 clients worldwide and tracked
more than GBP100m worth of transactions per minute via its
comprehensive data-set of proprietary apps and software which
improve clients' prospects for customer acquisition, conversion and
retention. Having reported a three-year compound annual sales
growth of over 300% between 2012 and 2014, an established global
reach (c.850 employees in 36 offices and 26 countries worldwide)
and aspirations for either a trade sale or IPO, it provided an
exciting investment opportunity.
Over the course of the last six months since our investment, we
have established an ever-closer dialogue with the executive
management team at Ve, providing opinion and where appropriate
introductions to global investment banking institutions in
preparation for the next phase of Ve's development. At Ve's AGM in
October 2016, further steps were taken to embrace the corporate
governance requirements expected of a global business and this
process has recently culminated in the appointment of Stuart
Chambers as Ve's Non-Executive Chairman with effect from 1 January
2017.
Stuart is among the UK's most prominent boardroom figures having
held executive roles at companies including Shell, Mars and
Pilkington and non-executive roles on 7 plc boards including ARM
Holdings plc which designs computer chips for customers such as
Apple, where he oversaw its recent sale to Softbank in August 2016
for $32 billion. As a current member of the UK Takeover Panel, this
appointment represents a further strengthening of the Ve Board as
it embarks upon its new phase of growth and engages with a more
strategic investor base.
With a strong board, proven technology and an established core
business providing a continued path to growth, your Board believes
that Ve is well positioned to execute on its strategic objectives.
Clearly, however, as a minority shareholder our influence over Ve
is limited.
The Works
Concha continues to hold a 30% interest in The Works, The
Complete Design Facility Limited ("Works"), a specialist design
media company operating principally in the sports sector. Given the
sports centric nature of its client base, Works was impacted by the
numerous allegations of corruption within many high profile
international sporting federations, organisations which Works has
serviced for many years. The ensuing investigations and consequent
changes to both personnel and internal procedures at these sporting
federations has inevitably extended the sales cycle, particularly
the tender process which has become the subject of much greater
rigour and as such deferred certain projects which had been
targeted for this year.
In addition to this environment of uncertainty, 2016 was also an
IOC Summer Olympic year where traditionally international sporting
federations suspend the release of new design initiatives until
after the Games have concluded. Despite these challenging market
conditions, Works has managed to further develop its strategic
partnership in the Middle East where local presence has helped to
forge new relationships with many government ministries including
the Qatari World Cup Committee. As a result, we believe Works is
well positioned to exploit not only the opportunities associated
with the forthcoming World Cup in Qatar in 2022 but also a number
of other showcase sporting events held within the EMEA region.
As the sporting landscape continues to change, we will continue
to monitor the activities of Works closely and are confident that
its position as a preferred partner will lead to a number of
successes in 2017.
Future
With a strong and cohesive Board now in place, I feel we have a
wealth of global commercial and corporate experience to not only
support the investments which Concha has made to date but in the
particular case of Ve, to ensure that at the time the objectives of
Ve are realised, preserve the resultant value created for the
benefit of shareholders. The Board continue to review and evaluate
a number of opportunities and at the appropriate time will
consummate further additions to its investment portfolio.
I would like to close by thanking our shareholders and advisers
who have contributed to giving the Company such a positive
future.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 30 JUNE 2016
Note 2016 2015
GBP000's GBP000's
Revenue 1 15 15
----------------- -------------
GROSS PROFIT 15 15
Administrative expenses (1,006) (755)
----------------- -------------
LOSS FROM OPERATIONS BEFORE
EXCEPTIONAL ITEM 2 (991) (740)
Exceptional item 3 - 108
----------------- ------------
LOSS FROM OPERATIONS (991) (632)
Investment income 5 7 4
----------------- ------------
LOSS BEFORE TAX (984) (628)
Tax 6 - -
---------------- -------------
RETAINED LOSS AFTER TAX FOR THE
YEAR (984) (628)
======== ======
RETAINED LOSS ATTRIBUTABLE
TO
Owners of the company (984) (628)
------------- ------------
LOSS FOR THE YEAR (984) (628)
====== ======
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE
TO:
Owners of the company (984) (628)
------------- --------------
TOTAL COMPREHENSIVE LOSS FOR
THE YEAR (984) (628)
====== =======
Loss per share
Basic 8 (0.00062) (0.00044)
====== =======
STATEMENT OF FINANCIAL POSITION
AT 30 JUNE 2016
2016 2015
Notes GBP000's GBP000's
ASSETS
Non-current assets
Investments 9 514 500
--------------- -------------
514 500
--------------- -------------
CURRENT ASSETS
Trade and other receivables 10 4,509 254
Cash and cash equivalents 1,255 5,547
--------------- -------------
5,764 5,801
--------------- -------------
TOTAL ASSETS 6,278 6,301
====== ======
EQUITY AND LIABILTIES
EQUITY
Share capital 12 1,623 1,478
Deferred share capital 12 1,795 1,795
Share premium reserve 21,563 21,043
Share based payment
reserve 583 314
Retained loss (19,367) (18,383)
--------------- ---------------
TOTAL EQUITY 6,197 6,247
--------------- ---------------
CURRENT LIABILITIES
Trade and other payables 11 81 54
--------------- ---------------
TOTAL EQUITY AND
LIABILITIES 6,278 6,301
====== ======
STATEMENT OF CHANGES IN EQUITY
FOR THE YEARS ENDED 30 JUNE 2015 AND 2016
Deferred Share Share
based
Share Share Premium Payment Retained
Capital Capital Account Reserve Loss Total
GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's
Balance at
1 July 2014 1,323 1,795 16,831 232 (17,755) 2,426
Loss for the
year - - - - (628) (628)
---------- ------------- --------- ------------ -------------- ------------
Total comprehensive
loss for 2015 - - - - (628) (628)
Share capital
issued 155 - 4,212 - - 4,367
Share based
payments - - - 82 - 82
---------- ------------- ------------- ------------ -------------- ------------
Balance at
30 June 2015 1,478 1,795 21,043 314 (18,383) 6,247
===== ====== ====== ====== ======= ======
Deferred Share Share based
Share Share Premium Payment Retained
Capital Capital Account Reserve Loss Total
GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's
Balance at
1 July 2015 1,478 1,795 21,043 314 (18,383) 6,247
Loss for the
year - - - - (984) (984)
---------- ---------- ------------- ------------ -------------- ------------
Total comprehensive
loss for 2016 - - - - (984) (984)
Share capital
issued 145 - 520 - - 665
Share based
payments - - - 269 - 269
---------- ---------- ------------- ------------ -------------- ------------
Balance at
30 June 2016 1,623 1,795 21,563 583 (19,367) 6,197
===== ===== ====== ====== ======= ======
CASH FLOW STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
2016 2015
GBP000's GBP000's
Loss for the year (984) (628)
Share based payments 269 82
Investment income (7) (4)
----------------- -----------------
Operating cash flows before
movements in
working capital (722) (550)
Increase in receivables (115) (91)
Increase in payables 27 17
----------------- -----------------
(810) (74)
Investment income 7 4
----------------- -----------------
Net cash flow from operating
activities (803) (620)
----------------- -----------------
Cash flow from investing
activities
Purchase of investments (4,154) -
----------------- -----------------
Net cash outflow from (4,154) -
investing activities
----------------- -----------------
Cash flow from financing
activities
Net proceeds from issue
of share capital 665 4,363
------------------ ------------------
Net cash inflow from financing
activities 665 4,363
------------------ ------------------
Net cash (outflow) / inflow
for the year (4,292) 3,743
------------------ ------------------
Cash and cash equivalents
at start of year 5,547 1,804
------------------ ------------------
Cash and cash equivalents
at the end of the year 1,255 5,547
======== ========
NOTES
The notes to the financial statements are available in the PDF
download.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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