Final Results

RNS Number : 8842B

Adams PLC

22 June 2016

 

22 June 2016

Adams Plc

("Adams" or the "Company")

Annual Report and Financial Statements 2016

AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2016

Adams Plc ("Adams" or the "Company) announces its audited financial results for the year ended 31 March 2016.

Highlights:

-       Net assets at 31 March 2016 of €1.10 million (2015: €0.25 million).      

-       Loss after tax of €0.23 million (2015: €0.03 million.

-       Investments at 31 March 2016 valued at €0.87 million represented by 4 AIM quoted holdings (2015: €0.17 million represented by 2 quoted holdings).

-       Spend on new investments at a cost of €1.02 million (2015: €0.07 million). 

-       Profitable realisations resulting in proceeds of €0.36 million (2015: €0.08 million).

-       Share placing successfully completed resulting in 18,181,818 new ordinary shares being issued and funds of €1.08 million being raised.

Michael Bretherton, Chairman, said:

"The Board remains committed to delivering additional value for our shareholders and will continue to maintain a rigorous and highly selective investment approach with a view to exploiting opportunities as they emerge".

The Company's Annual Report 2016 will shortly be posted to shareholders and a copy will be made available on the Company's website at www.adamsplc.co.uk under the Investor Relations / Company & Shareholder Documents section. The Annual Report 2016 contains on page 25, a Notice of the Annual General Meeting to be held at 11.00 a.m. on Friday 2 September 2016 at IOMA House, Hope Street, Douglas, Isle of Man, IM1 1AP.

Enquiries:

Adams plc             Michael Bretherton                                                                                              Tel: [phone]

Nomad                  Cairn Financial Advisers LLP. Sandy Jamieson, James Caithie               Tel: [phone]

Broker                    Peterhouse Corporate Finance Limited. Heena Karani                              Tel: [phone] 

Chairman's Statement

Adams Plc ("the Company") is an investing company focusing on the technology and life sciences sectors.

Adverse conditions in financial markets during the second half of the year had a negative impact on the carrying values of the quoted investment holdings of the Company which generated a positive gross investment return of only €30,000 in the year ended 31 March 2016 versus €172,000 in the year to 31 March 2015. As a result, and after allowing for administrative expenses of €219,000 and exchange translation losses of €45,000, Adams incurred a loss after tax for the year of €234,000 compared to a loss of €25,000 in the previous year.

I was appointed to the Board as a non-executive director in May of this year and subsequently took over the role of Chairman from Nicholas Nelson on his retirement at the Annual General Meeting of the Company on 11 September 2015. I thank Nicholas for all his work in completing the restructuring process of Adams in to an investing company. The Company also announced the appointment of Dr Andrew Mitchell as a non-executive director on 6 August 2015.

One of my first priorities on joining the Board was to seek to strengthen the Company's balance sheet by raising additional funds to be used to make investments in accordance with the Company's investing policy and for general working capital purposes. This was achieved by way of a placing of 18,181,818 new ordinary shares of €0.01 each with new and existing investors at a placing price of 4.4p (5.962 €cents) per ordinary share to raise £800,000 (€1,084,000) for the Company before expenses. The new shares were admitted to trading on AIM on 23 September 2015. 

During the year to 31 March 2016, the Company invested €1,024,000 in five AIM listed technology businesses. One of these new investments was subsequently sold, and the Company also disposed of the two investments that it held at the 31 March 2015 financial year end, all for a total cash sale consideration of €357,000.

Adams currently holds four investments all of which are quoted on AIM, and for which the carrying value at 31 March 2016 was €871,000 (31 March 2015: €174,000 represented by the two quoted holdings that have since been sold).

At 31 March 2016, the Company had net assets of €1,100,000 inclusive of cash balances of €258,000 compared with net assets of €250,000 at 31 March 2015 inclusive of cash balances of €158,000. The increase in net assets is attributable to the receipt of €1,084,000 of share issue proceeds less the loss of €234,000 in the period.

Investments

The four AIM listed investments currently held by the Company comprise GVC Holdings PLC, Oxford Pharmascience Group Plc, Imagination Technologies Group Plc and Communisis Plc.

GVC is in a global online gaming and sports betting company with a solid on-line platform technology from which it operates some of the leading brands in the gaming sector including bwin, sporting bet, partypoker and Foxy Bingo.  Oxford Pharmascience is a drug development company that re-develops approved drugs to make them better, safer and easier to take and it has a current focus to develop improved formulations of non-steroidal anti-inflammatory drugs (NSAIDs) and statins for global markets. Imagination is a global technology leader whose products include the key multimedia, communications and general purpose processors needed to power all mobile, consumer, automotive, automotive, enterprise and embedded electronics. Communisis is a leading processor technology company that creates unique, patented semiconductor IP for multimedia and communication applications.

Outlook

The potential for volatility in capital markets remains, given the continued worries over the slowdown in China's economy, together with persistent geopolitical risks in Ukraine and the Middle East and the need for further structural reforms to restore European public finances to a sustainable path. In addition, there is uncertainty over the UK referendum on its EU membership and also an expectation that a US interest rate rise is probable later this year.

The Board remains committed to delivering additional value for our shareholders and will continue to maintain a rigorous and highly selective investment approach with a view to exploiting opportunities as they emerge. We will also retain the management disciplines and shareholder alignment under which Adams now operates, whilst running a low cost base.

Michael Bretherton

Chairman

22 June 2016

Statement of Comprehensive Income for the year ended 31 March 2016

				Year ended 31 Mar 2016			Year ended 31 Mar 2015
				€'000			€'000
Gain on investments					30			172
Gross investment return					30			172
Expenses
Net foreign exchange (loss)/gain					(45)			15
Administrative expenses					(219)			(212)
Operating loss					(234)			(25)
Loss on ordinary activities before taxation					(234)			(25)
Tax on gain/(loss) on ordinary activities					-			-
Loss for the year					(234)			(25)
Total comprehensive loss for the year					(234)			(25)
Basic and diluted loss per share					(0.7)c			(0.1)c

Since there is no other comprehensive loss or gain, the loss for the year is the same as the total comprehensive loss for the year attributable to the owners of the Company.

Statement of Changes in Equity as at 31 March 2016

		Share Capital	Share Premium	Accumulated (Losses)	Total
		€'000	€'000	€'000	€'000
At 1 April 2014		162	133	(170)	125
Changes in equity
Issue of shares		69	81	-	150
Total comprehensive (loss)		-	-	(25)	(25)
At 31 March 2015		231	214	(195)	250
Changes in equity
Issue of shares		182	902	-	1,084
Total comprehensive (loss)		-	-	(234)	(234)
At 31 March 2016		413	1,116	(429)	1,100

Statement of Financial Position at 31 March 2016

			As at 31 March 2016			As at 31 March 2015
			€'000			€'000
Assets
Non-current assets
Investments				871			174
Current assets
Trade and other receivables				3			10
Cash and cash equivalents				258			158
Current assets				261			168
Total assets				1,132			342
Liabilities
Current liabilities
Trade and other payables				(32)			(92)
Total liabilities				(32)			(92)
Net current assets				229			76
Net assets				1,100			250
Equity
Called up share capital				413			231
Share premium				1,116			214
Accumulated deficit				(429)			(195)
Total shareholder equity				1,100			250

Statement of Cash Flows for the year ended 31 March 2016

		Year ended			Year ended
		31 March 2016			31 March 2015
		€'000			€'000
Loss for the year			(234)			(25)
Unrealised loss/(gain) on revaluation of investments			162			(128)
Realised (gain) on disposal of investments			(192)			(44)
Decrease/(increase) in trade and other receivables			7			(3)
(Decrease)/increase in trade and other payables			(60)			79
Net cash outflow from operating activities			(317)			(121)
Cash flows from investing activities
Purchase of investments			(1,024)			(67)
Proceeds from sales of investments			357			79
Net cash (used)/generated in investing activities			(667)			12
Cash flows from financing activities
Issue of ordinary share capital			182			69
Issue of premium share capital			902			81
Net cash generated from financing activities			1,084			150
Net increase in cash and cash equivalents			100			41
Cash and cash equivalents at beginning of year			158			117
Cash and cash equivalents at end of year			258			158

 

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