Mountcashel PLC - Interim Results
31 July 1997 - 9:51PM
UK Regulatory
RNS No 1558r
MOUNTCASHEL PLC
31st July 1997
INTERIM REPORT
Six Months to 30 June 1997
Chairman's Statement
Once again it is my pleasure to present the Group's interim report for what has
been a mixed six months.
Throughout the period the Group's investment strategy has been maintained and we
have continued to undertake indepth research into existing and potential
investee companies. This has sometimes proved successful and other times not so
successful.
The Group has recorded a loss for the six months of #85,500 and a decline in the
realised net asset value, from 96.4p to 95.3 p per share. Taking into account
the unrealised profits in the portfolio at 30 June 1997, of #2,455,000, would
increase the net asset position from 107.2 p at 31 December 1996, to 127.7 p per
share. I would like, however, to qualify this by noting that, in the period
since 30 June 1997, this unrealised element has declined by approximately
#1,200,000, or 15.9 p per share.
As stated, by my brother Oliver, in his Investment Review in the 1996 Annual
Report, we ended 1996 with eleven "Key Investments", some of which had performed
well, others not. This mixed performance has continued into 1997.
Wiggins Group plc has continued to perform well, reflecting a growing level of
interest in their innovative approach to the property market and recent
corporate activity.
Innovative Technologies Group plc has also performed strongly due to a
recognition of the potential value of its intelligent woundcare products and its
gradual transition from being a R&D based company towards being a market led
international woundcare products manufacturing business.
Xenova Group plc and Rackwood Mineral Holdings plc are new additions to our "Key
investments". Xenova is an emerging biopharmaceutical business, which
specialises in the discovery and development of new small molecule drugs,
originally derived from fungi, bacteria and plants.
Rackwood Mineral Holdings plc is a coal mining and marketing company with
interests in England, Scotland, Wales, France and the USA.
These two holdings have taken the place of Inspirations, which after comments in
the 1996 Annual Report had been sold together with a part of our holding in
Cantab Pharmaceuticals. This was realised following strong performance, to
provide funding for the Xenova acquisition.
We add to the list of poor performers Fairway Group and Utility Cable. Both
encountered some trading difficulties and problems with bad debts from which
their share prices have yet to recover.
Our two unquoted investments are continuing to make satisfactory progress and
are moving forward towards their respective floatation timetables.
We will continue the process of constantly reviewing the portfolio, making our
selections without regard for general stock market conditions, but with emphasis
on the fundamentals of investee companies.
In summary, performance for the six months has been satisfactory, but as always
must be viewed with an element of caution. The risks associated with investing
in relatively small businesses, with underperforming equity valuations are not
to be underestimated.
Thomas Vaughan
Chairman
31 July 1997
MOUNTCASHEL PLC
Consolidated Profit and Loss Account
Unaudited Unaudited Audited
Six months Six months Year to
to 30 June to 30 June 31 December
1997 1996 1996
#'000 #'000 #'000
(Loss)/Profit on Sale of
Investments (34.3) 828.3 950.5
Investment income 51.2 50.4 82.0
Other income - 4.7 7.9
_____ _____ _____
Total income 16.9 883.4 1,040.4
Management expenses (86.4) (99.8) (179.3)
(Loss)/Profit on ordinary
activities (69.5) 783.6 861.1
before interest
Interest receivable - 18.8 20.0
Interest payable (16.0) (2.0) (19.6)
(Loss)/Profit
before taxation (85.5) 800.4 861.5
Taxation credit - - 1.9
_____ ____ _____
(Loss)/Profit
after taxation (85.5) 800.4 863.4
(Loss)/Earnings per
ordinary share - pence (1.13) 10.57 11.40
MOUNTCASHEL PLC
Consolidated Balance Sheet
Unaudited Unaudited Audited
30 June 30 June 31 December
1997 1996 1996
#'000 #'000 #'000
Fixed Assets
Tangible assets 3.2 4.3 3.2
Investments 7,962.2 6,897.3 7,756.4
______ ______ ______
7,965.4 6,901.6 7,759.6
Current Assets
Debtors 355.5 937.8 77.9
Bank balances and cash - 75.1 -
355.5 1,012.9 77.9
Creditors due within
one year (1,106.9) (678.0) (538.0)
Net Current
(liabilities)/assets (751.4) 334.9 (460.1)
Net Assets 7,214.0 7,236.5 7,299.5
Capital and reserves
Called up share capital 3,785.5 11,149.4 3,785.5
Share premium 757.8 12,838.8 757.8
Merger reserve - 1,003.6 -
Other reserves 2,743.5 907.3 2,743.5
Profit and loss account (72.8)(18,662.6) 12.7
Shareholders' funds 7,214.0 7,236.5 7,299.5
Net assets per share - pence 95.3 95.6 96.4
MOUNTCASHEL PLC
Consolidated Cash Flow Statement
Unaudited Unaudited Audited
Six months Six months Year to
to 30 June to 30 June 31 DEC
1997 1996 1996
#'000 #'000 #'000
Net cash outflow from operating
activities (119.9) 0.5 (149.5)
Returns on investment and
servicing of finance
Interest received - 18.7 20.0
Interest paid (16.0) (2.0) (17.1)
Income from fixed
asset investments 41.0 33.3 60.5
Other income - 4.7 -
25.0 54.7 63.4
Taxation
UK Corporation tax repaid - - 2.5
- - 2.5
Capital expenditure and financial
investment
Purchase of tangible
fixed assets (1.9) (1.5) (2.5)
Purchase of fixed
asset investments (986.5) (6,204.0) (8,527.6)
Sales of fixed asset
investments 971.7 1,812.3 4,322.4
(16.7) (4,393.2) (4,207.7)
Cash outflow before management of
liquid resources and
financing (111.6) (4,338.0) (4,291.3)
Financing
Issue of shares - 4,080.0 4,080.0
Expenses of share issue - (200.0) (200.0)
- 3,880.0 3,880.0
Decrease in cash
in the period (111.6) (458.0) (411.3)
MOUNTCASHEL PLC
Notes to the Accounts
1. Basis of preparation
The unaudited financial statements for the six months
ended 30 June 1997 do not constitute statutory accounts.
The profit and loss account, balance sheet and cash
flow statement have been prepared on a basis consistent
with the statutory financial statements for the year ended
31 December 1996.
Results for the year ended 31 December, 1996 have
been extracted from the statutory accounts which were
reported on by the auditors, without qualification or
statement under Section 237 (2) or (3) of the Companies Act
1985 and have been delivered to the Registrar of Companies.
2. Taxation
There is no corporation tax charge due to the
availability of losses within the Group.
3. (Loss)/Earnings per share
The loss per share has been calculated on the
consolidated loss on ordinary activities after
taxation of #85,500, and on the weighted average number of
ordinary shares in issue of 7,570,700.
4. Investments
Listed Unlisted Total
#'000 #'000 #'000
Cost
At 1 January 1997 6,167.4 1,589.0 7,756.4
Additions 1,204.0 265.0 1,469.0
Disposals (1,263.2) - (1,263.2)
______ _______ ______
At 30 June 1997 6,108.2 1,854.0 7,962.2
______ ______ ______
Aggregate market value at 8,729.5 1,687.8 10,417.3
30 June 1997 ______ _______ _____
Further details of the Key investments are shown on
page 7 of this interim report.
5. Other information
The interim report was approved by the Directors on
31 July, 1997.
A copy of the interim report will be posted to
shareholders and made available to the public at the
Company's Registered office, 223a Kensington High
Street, London W8 6SG.
MOUNTCASHEL PLC
Key Investments
No. of Class Percentage Cost Market
Shares of of issued at value
held ordinary ordinary 30.6.97 at
Shares share #000 30.6.97
capital #000
Company name
British Biotech 470,000 5p 0.01 795 1,088
plc
Cantab 80,000 5p 0.51 270 696
Pharmaceuticals
plc
ERA Group plc 4,945,000 5p 3.93 444 260
Fairway Group 781,800 5p 2.00 723 387
plc
Innovative 500,000 10p 1.35 467 1,550
Technologies
Group plc
OMI 3,025,000 5p 4.07 508 756
International
plc
Rackwood
Mineral 1,000,000 10p 2.36 507 475
Holdings plc
Redstone Network 961,921 0.025p 8.59 589 589
Services Ltd.*
Utility Cable 2,550,000 1p 1.77 448 261
plc
Wiggins Group 15,365,000 1p 2.94 794 1,728
plc
Xaar Limited* 208,333 #1 5.23 1,000 1,000
Xenova Group plc 242,500 10p 1.05 594 788
* Denotes unquoted investments
Notes:
1. A 'Key investment' is defined as being any holding
which accounts for 5 per cent, or more, by reference to
cost or market value, of the total portfolio at the
end of the period.
2. Unquoted investments are valued at cost, or net
realisable value if, in the opinion of the Directors,
this is below cost.
3. All of the investments noted above are in
undertakings which are registered in England and Wales.
END
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