Final Results

RNS Number : 2989J

Highway Capital PLC

28 June 2011

 



HIGHWAY CAPITAL PLC

AUDITED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2011

Chairman's statement

Results for 12 months ended 28 February 2011 show a loss before tax of £92,933 (2010: £84,925 loss).

The company had cash in the bank and in hand of £228,847 at the balance sheet date.  The board does not consider it appropriate to declare a dividend.

Your board has continued to seek opportunities to increase shareholders' value, unfortunately, none has proved suitable.  We are at present in discussion with a possible target and we will keep you informed of any progress.  Until a transaction is completed we will continue to identify opportunities.

On 27 May 2011 the company announced a new major shareholder, Mr Ronald Bruce Rowan.  The board believes that Mr Rowan's experience and track record will be of considerable benefit to the company.

A. H. Drummon

Chairman

Directors' responsibility statement

Company law requires the directors to prepare accounts for each financial year which give a true and fair view of the state of affairs of the company and of the profit or loss for that period.  In preparing those accounts, the directors are required to:

-  select suitable accounting policies and then apply them consistently;

-  make judgements and estimates that are reasonable and prudent;

-  follow applicable accounting standards, subject to any material departures disclosed and explained in the accounts; and

-  prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 2006.  They are responsible for the system of internal control, and for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.  The directors are also responsible for ensuring that all information relevant to the audit has been made available to the auditors.

Under applicable law and regulations, the directors are also responsible for preparing a directors' report, directors' remuneration report and corporate governance statement that comply with that law and those regulations.

The directors confirm that, to the best of their knowledge and belief:

-  the accounts in this document, prepared in accordance with applicable UK law and accounting standards, give a true and fair view of the assets, liabilities, financial position and loss of the company; and

- the business review and management report in the directors' report includes a fair review of the development and performance of the business and the position of the company, together with a description of the principal risks and uncertainties that it faces.

Profit and loss account

Year ended 28 February 2011

                                                                                                Notes                                  2011                                                      2010

Management fees                                                                                                                -                                                               -

Other income                                                                                                                                -                                                            75

Administrative expenses                                                                                                 (93,371 )                                                  (85,838 )

Operating loss                                                                     2                                      (93,371 )                                                  (85,763 )

Interest receivable                                                                                                                   438                                                          838

Loss on ordinary activities

before taxation                                                                                                           (92,933 )                                                  (84,925 )

Tax credit on loss on ordinary activities                               5                                                 -                                                               -

Loss for the financial year                                                                                   (92,933 )                                                  (84,925 )

Basic and diluted loss per share                               7                                          (1.17 )p                                                   (1.07 )p

Basic and diluted loss per share

from continuing operations                                          7                                          (1.17 )p                                                   (1.07 )p

Continuing operations

There are no acquired or discontinued operations in the above two financial periods.

Total recognised gains and losses

The company has no recognised gains or losses other than the profit or loss for the above two financial periods.

Reconciliation of equity shareholders' funds

                                                                                                                                            2011                                                      2010

Loss attributable to ordinary shareholders                                                                  (92,933 )                                                  (84,925 )

Dividends                                                                                                                                      -                                                               -

Net decrease in shareholders' funds                                                       (92,933 )                                                  (84,925 )

Shareholders' funds at 1 March 2010                                                                           303,556                                                   388,481

Shareholder's funds at 28 February 2011                                                £210,623                                                 £303,556

Balance sheet

at 28 February 2011

                                                                                         Notes                                          2011                                                       2010  

Fixed assets

Investments                                                                       8                                                         -                                                               -

                                                                                                                                                        -                                                               -

Current assets

Debtors                                                                              10                                                3,631                                                       2,935

Cash at bank and in hand                                                                                               228,847                                                   322,072

                                                                                                                                            232,478                                                   325,007

Creditors: amounts falling due

within one year                                            11                                  (21,855 )                                     (21,451 )

Net current assets                                                                                                   210,623                                                   303,556

Net assets                                                                                                                  £210,623                                                 £303,556

Capital and reserves                                                                                                                                                                          

Share capital                                                                     14                                            158,913                                                   158,913

Share premium                                                                  16                                            295,437                                                   295,437

Profit and loss account                                                   16                                           (243,727 )                                                (150,794 )

Total equity shareholders' funds                                                                  £210,623                                                 £303,556

Cash flow statement

Year ended 28 February 2011

                                                                                                Notes                                  2011                                                          2010

Net cash outflow from

operating activities                                                         20(a)                                 (93,663 )                                                  (86,190 )

Returns on investments and

servicing of finance

Interest received                                                                                      438                                                          838

                                                                                                         _______                                                _______

Net cash inflow from returns on

investments and servicing of finance                                                                   438                                                          838

Taxation

Corporation tax                                                                                                                             -                                                               -

Equity dividends paid                                                                                                         -                                                               -

                                                                                                                                         _______                                                _______

Decrease in cash                                                              20(b)                              £(93,225 )                                               £(85,352 )

                                                                                                                                           ======                                                  ======

Notes to the accounts

Year ended 28 February 2011

1.     Accounting policies

Basis of accounting

The accounts have been prepared under the historical cost convention and in accordance with applicable accounting standards.

Highway Capital plc does not prepare consolidated accounts and the directors have therefore continued to prepare its accounts in accordance with UK rather than international accounting standards, as permitted under EC Regulation 1606/2002.

Consolidation

At 28 February 2011, Highway Capital plc was a stand-alone company and is therefore not required to prepare consolidated accounts.

Depreciation

Depreciation is provided on all fixed assets at rates calculated to write off the cost of each asset on a straight line basis over its expected useful life.

Stocks and work-in-progress

Stocks and work-in-progress are stated at the lower of cost and net realisable value.

Deferred taxation

Deferred tax is provided in full at appropriate rates in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes, if those timing differences are not permanent and have originated but not reversed by the balance sheet date.  The deferred tax balance has not been discounted.

Finance leases and hire purchase commitments

Assets obtained under finance leases and hire purchase contracts are capitalised in the balance sheet and depreciated over their useful economic lives.

The interest element is charged to profit and loss account on a straight line basis over the period of the finance leases or hire purchase contracts.

Rentals paid under operating leases are charged to income on a straight line basis over the lease period.

Foreign currencies

Profit and loss account transactions denominated in foreign currencies are translated into sterling and recorded at the rate of exchange ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date.

All differences are taken to the profit and loss account.

Turnover

Turnover represents management fees receivable.

2.     Operating loss

This is stated after charging:-

                                                                                                                                                                   2011                       2010

                                                                                                                                                                       £                              £

        Directors' remuneration - Salaries and fees                                                                                  33,000                     28,000

        Auditors' remuneration  - Audit services                                                                                        8,700                       8,500

                                               - Other services                                                                                           14,350                     13,895

                                                                                                                                                                        =======                =======

3.     Employees

        The average number of employees during the year was made up as follows:-

                                                                                                                                                                   2011                       2010

                Directors                                                                                                                                                       3                              3

                Other                                                                                                                                                              -                               -

                                                                                                                                                                         ^{__________                        _________}

                                                                                                                                                                                       3                              3

                                                                                                                                                                         =======                =======

Employee costs including directors during the year amounted to:-

        Salaries and fees                                                                                                                                 33,000                     28,000

                                                                                                                                                                 ^{__________                         _________}

                                                                                                                                                                    £33,000                   £28,000

                                                                                                                                                                 =======                =======

4.     Directors' remuneration

Information relating to directors' emoluments is included in the directors' remuneration report on pages 6 and 7.

                                                                                                                                                                   2011                       2010

5.     Taxation

        Based on the loss for the year:-

        U.K. corporation tax at 21% (2010: 21%)                                                                                                          -                               -

        Under/(over) provision in previous years                                                                                                       -                               -

                                                                                                                                                                            ^{________                           ________}

                                                                                                                                                                                      £-                            £-

                                                                                                                                                                           ======                  ======

Factors affecting the tax charge/(credit) for the year

Loss on ordinary activities before taxation                                                                                        £(92,933 )               £(84,925 )

                                                                                                                                                                   ======                  ======

Loss on ordinary activities before taxation m ultiplied by the small

company rate of UK corporation tax of 21% (2010: 21%)                                                                 £(19,516 )               £(17,834 )

                                                                                                                                                                            ^{_________                         __________}

Effects of:

Current period tax losses not utilised                                                                                                     19,516                     17,810

Disallowed expenditure/(income)                                                                                                                      -                            24

Adjustments to tax charge in respect of previous periods                                                                           -                               -

                                                                                                                                                                            ^{__________                        __________}

                                                                                                                                                                            £19,516                   £17,834

                                                                                                                                                                            ^{__________                         __________}

        Current tax charge/(credit)                                                                                                                            £-                            £-

                                                                                                                                                                           ======                  ======

The company has estimated losses of £803,000 (2010: £710,000) that may be available for carry forward against future profits, and estimated capital losses of £1,460,000 (2010: £1,460,000) that may be available for carry forward against future chargeable gains.  No deferred tax asset has been recognised in the accounts in respect of these unrelieved losses.

                                                                                                                                                                   2011                       2010

6.    Dividends

        Interim paid nil per share (2010: nil)                                                                                                                  -                               -

                                                                                                                                                                           ______                _______

                                                                                                                                                                              £        -                    £        -

                                                                                                                                                                              =====                  ======

7.     Loss per share

        The loss per ordinary share calculation has been based on the loss attributable to ordinary shareholders of £92,933 (2010: loss £84,925), divided by 7,945,638 (2010: 7,945,638), being the weighted average number of ordinary shares in issue during the year.  The basic and the diluted loss per ordinary share are the same.

        There are no discontinued operations in either period and, therefore, the basic and the diluted loss per ordinary share from continuing operations are the same as the basic and the diluted loss per ordinary share.

8.     Investments

        The company currently has no investments.

9.     Capital commitments

At 28 February 2011 the company had no capital commitments.

                                                                                                                                     2011                                                       2010

10.  Debtors                                                                                                  

        Other debtors                                                                                                        1,085                                                          767

        Prepayments                                                                                                         2,546                                                       2,168

                                                                                                                                    ^{________                                                                            ________}

                                                                                                                                      £3,631                                                     £2,935

                                                                                                                                   ======                                                  ======

                                                                                                                                     2011                                                       2010

11.    Creditors: amounts falling due within one year

        Trade creditors                                                                                                     1,480                                                       1,900

        Accruals                                                                                                              20,375                                                     19,551

                                                                                                                                    ^{________                                                                            ________}

                                                                                                                                    £21,855                                                   £21,451

                                                                                                                                   ======                                                  ======

12.    Borrowings

          The company had no bank loans or overdrafts existing at the beginning or end of the year.

13.    Deferred taxation

The estimated deferred tax asset not recognised in the accounts, based on a 26% rate of tax, amounts to £588,000 (2010: based on a 28% rate of tax £608,000).  Of this amount, £379,000 may be recoverable by the company against future chargeable gains, and £209,000 may be recoverable against future profits.

14.    Share capital

                                                                                                         Number                 Nominal                 Number                 Nominal 

                                                                                                of Shares                 Value                  of Shares                  Value

                                                                                                   2011                       2011                       2010                       2010

Authorised -

        Ordinary shares of 2p each                                      50,000,000             £1,000,000              50,000,000              £1,000,000

                                                                                              ========              =======             ========                =======

Allotted, called-up and fully paid -                                

        Ordinary Shares of 2p each                                       7,945,638                £158,913                 7,945,638                £158,913

                                                                                              ========              =======             ========                =======

15.  Related party transactions

        Howard Drummon, non-executive Chairman, is a consultant to, and until 11 June 2008 was a director of, Keith, Bayley, Rogers & Co Limited, the financial adviser and stockbroker to the company.  In the year ended 28 February 2011, Keith, Bayley, Rogers & Co Limited received retainer fees of £10,000 (2010: £10,000) and website set up and maintenance fees of £1,667 (2010: £nil).

16.  Reconciliation of movements on reserves

                                                                                                                                           Share                                                     Profit

                                                                                                                                        Premium                                               and Loss

                                                                                                                                         Account                                                 Account

        At 1 March 2010                                                                                               295,437                                                  (150,794 )

        Retained loss for the year                                                                                           -                                                    (92,933 )

                                                                                                                                         ^{__________                                                                       ___________}

        At 28 February 2011                                                                                      £295,437                                               £(243,727 )

                                                                                                                                 =======                                                =======

17.  Other financial commitments

At 28 February 2011 the company had no commitments for the year ending 28 February 2012 under non-cancellable operating leases.

18.  Financial instruments

The Company's financial instruments comprise cash, trade debtors and trade creditors that arise directly from its operations. The Company's policy has been, and continues to be, that no speculative trading in financial derivatives shall be undertaken.

19.  Financial assets

The cash is held in bank current and premium accounts and on treasury deposit, which receive varying rates of interest that is recognised on a receivable basis.  All financial assets and liabilities are denominated in Sterling.

Fair value of financial assets and liabilities

The fair value of financial assets and liabilities, calculated by discounting expected future cash flows at prevailing interest rates, is not materially different from their book value, and is as follows:

                                                                                                                                           2011                                                       2010

Financial assets

Receivables                                                                                                                   3,631                                                       2,935

Cash at bank                                                                                                             228,847                                                   322,072

                                                                                                                                         ^{__________                                                                        __________}

                                                                                                                                  £232,478                                                 £325,007

                                                                                                                                 =======                                                =======

Financial liabilities

Payables: current liabilities                                                                                     £21,855                                                   £21,451

                                                                                                                                 =======                                                =======

Hedging

The Company makes no use of forward currency contracts, other financial derivatives or hedging.

Interest rate risk

The Company does not have an interest rate policy in isolation but regularly reviews the interest rates being received on deposits.

Liquidity risk

The principal policy of the Company in managing liquidity risk is to align the anticipated timing of expenditure with the availability of its cash balances.

20.  Group cash flow statement

                                                                                                                                                                     2011                       2010

(a)   Net cash outflow from operating activities

                Operating loss                                                                                                                                   (93,371 )                  (85,763 )

                (Increase)/decrease in debtors                                                                                                            (696 )                        161

                Increase/(decrease) in creditors                                                                                                            404                         (588 )

                                                                                                                                                                            ^{_________                         __________}

                Net cash outflow from operating activities                                                                                £(93,663 )               £(86,190 )

                                                                                                                                                                           ======                  ======

                                                                                                                                         1 March                                              28 February

(b)   Analysis of net funds/(debt)                                                                                       2010              Cash flow                       2011

        Net cash: cash at bank and in hand                                                              322,072                    (93,225 )                 228,847

                                                                                                                                   ^{________                 ___________              __________}

        Net funds/(debt)                                                                                            £322,072                 £(93,225 )               £228,847

                                                                                                                                   ======                =======                =======

                                                                                                                                                                     2011                       2010

(c)   Reconciliation of net cash flow to movement

        in net funds/(debt)

                Decrease in cash in the year                                                                                                           (93,225 )                  (85,352 )

                                                                                                                                                                       ^{____________                   _________}

                Movement in net funds/(debt) in the year                                                                                    (93,225 )                  (85,352 )

                Opening net funds/(debt)                                                                                                               322,072                    407,424

                                                                                                                                                                       ^{____________                           __________}

                Closing net funds/(debt)                                                                                                              £228,847                  £322,072

                                                                                                                                                                       ========                  ======

28 June 2011

 

END

 

 

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