Half Yearly Report

RNS Number : 5180K
Pires Investments PLC
31 July 2013
 



 

Pires Investments PLC

("Pires" or the "Company")

 

Unaudited interim results for the six months to 30 April 2013

 

Chairman's Statement

 

Pires Investments plc, the investing company focussing on the resources and energy sectors, announces its interim results for the six months ended 30 April 2013.

 

 

During the period under review, Pires has continued to consider investment and reverse takeover opportunities in line with its stated investment policy and has made a number of investments in quoted and unquoted securities to implement this policy as required by Rule 15 of the AIM Rules. The Group balance sheet, which shows investments of £446,395, reflects this.

 

Since the year end, the Company has realised this portfolio in part and in view of the recent Stock Market performance of the sectors in which it has invested the Directors are keeping the Company's remaining investments under regular review.

 

On 30 July 2013, the Company announced a placing of £500,000 through the issue of new ordinary shares at par. This represents a significant premium both to the present share price and to net asset value and reflects the confidence of new investors that Pires will deliver value to shareholders in the long run through the implementation of its investing policy.

 

The Board has now reached the conclusion, in view of the present market sentiment towards the resource sector, that this should no longer be the sole focus of the Company although there remain, the Directors believe, some good resource opportunities.  The Board is now seeing a broader range of potentially attractive opportunities, some of which are now under active review.  The Board believes that it will be beneficial to invest in a series of such opportunities either at or shortly prior to their coming to market.

 

The Board will seek shareholder approval for an amended investing policy at a general meeting to be convened in the near future. The Board believes that it can then move forward fairly rapidly in evaluating and hopefully completing on a material transaction and so build shareholder value.

 

Peter Redmond

Chairman

 

 

Enquiries:

 

Pires Investments plc

Peter Redmond, Director

 

Tel: +44 (0) 20 7766 0082

 

Nominated Adviser

Cairn Financial Advisers LLP

Liam Murray / Avi Robinson

 

Tel: +44 (0) 20 7148 7900

 

Broker

Peterhouse Corporate Finance

Jon Levinson / Lucy Williams

Tel: +44 (0) 20 7469 0935

Tel: +44 (0) 20 7469 0936

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the six months ended 30 April 2013



Unaudited


Unaudited


Audited



6 months


6 months


Year



ended


ended


Ended



30-Apr


30-Apr


31-Oct



2013


2012


2012








Continuing activities


£


£


£







Revenue


-


-


-

Administrative expenses


(197,377)


(184,860)


(382,600)

Exceptional credit resulting from CVA


-


1,536,191


1,526,949








Operating (loss)/profit from continuing activities


(197,377)


1,351,331


1,144,349








Finance income


2,343


-


835

Finance costs


-


(50,653)


(50,789)








(Loss)/profit before taxation from continuing activities


(195,034)


1,300,678


1,094,395

Tax


-


-


-








(Loss)/profit for the period from continuing activities

(195,034)


1,300,678


1,094,395








Loss from discontinued activities


-


(254,537)


(312,919)








(Loss)/profit for the period attributable to equity holders of the Company


 

(195,034)


 

1,046,141


 

781,476








Basic (loss)/earnings per share

3






Equity holders







From continuing activities


(0.01)p


0.85p


0.11p

From continuing and discontinued activities


(0.01)p


0.68p


0.08p








Diluted (loss)/earnings per share

3






Equity holders







From continuing activities


N/A


0.83p


0.11p

From continuing and discontinued activities


N/A


0.67p


0.08p















 



 UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 April 2013



Unaudited


Unaudited


Audited



As at


As at


As at



30-Apr


30-Apr


31-Oct



2013


2012


2012



£


£


£


Notes






NON-CURRENT ASSETS







Property, plant and equipment


-


167,300


-

Investments


446,395


-


-

TOTAL NON CURRENT ASSETS


446,395


167,300


-








CURRENT ASSETS







Trade and other receivables


100,289


33,375


86,794

Cash and cash equivalents


590,165


1,582,188


1,241,015

TOTAL CURRENT ASSETS


690,454


1,615,563


1,327,809

TOTAL ASSETS 


1,136,849


1,782,863


1,327,809








EQUITY 







Called up share capital


11,353,192


11,287,103


11,287,103

Share premium account


2,949,340


2,932,818


2,932,818

Equity share capital to be issued (including premium)


-


-


82,611

Retained earnings


(13,517,843)


(13,077,356)


(13,322,809)

Capital redemption reserve


164,667


164,667


164,667

TOTAL EQUITY

4

949,356


1,307,232


1,144,390








LIABILITIES














CURRENT LIABILITIES







Borrowings


-


167,300


-

Trade and other payables 


187,493


308,331


183,419

TOTAL CURRENT LIABILITIES


187,493


475,631


183,419








TOTAL LIABILITIES


187,493


475,631


183,419








TOTAL EQUITY AND LIABILITIES


1,136,849


1,782,863


1,327,809

 



UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

For the six months ended 30 April 2013

 



Unaudited


Unaudited


Audited



6 months

ended


6 months

ended


Year ended

ended



30-Apr


30-Apr


31-Oct



2013


2012


2012



£


£


£


Notes

















Cash flows from operating activities

5

(153,640)


46,823


(295,049)








Cash flows from investing activities







Payments to acquire investments


(835,211)


-


-

Proceeds of disposal of fixed assets


-


21,667


21,667

Proceeds of sale of investments


335,736


-


-

Finance income received


2,265


-


835








Net cash (used in)/from investing activities


(497,210)


21,667


22,502

Cash flows from financing activities







Net repayments on loans and overdrafts


-


(51,698)


(51,698)

Cash from subscriptions for new shares


-


1,700,000


1,700,000

Expenses of share issue


-


(85,000)


(85,000)

Finance costs paid


-


(50,653)


(50,789)








Net cash from financing activities


-


1,512,649


1,512,513








Net increase/(decrease) in cash and cash equivalents during the period


(650,850)


1,581,139


1,239,966

Cash and cash equivalents at beginning of the period







1,241,015


1,049


1,049








Cash and cash equivalents at end of the period


590,165


1,582,188


1,241,015








 



Notes to the Unaudited Interim Report

 

1. GENERAL INFORMATION

 

Pires Investments PLC (the "Company") is a company domiciled in England whose registered office address is c/o Morrison & Foerster, CityPoint, One Ropemaker Street, London EC2Y 9AW. The condensed consolidated interim financial statements of the Company for the six months ended 30 April 2013 is that of the Company and its subsidiary (together referred to as the "Group"). 

 

The condensed consolidated interim financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.

 

The financial information for the year ended 31 October 2012 has been extracted from the statutory accounts for that period which were prepared in accordance with International Financial Reporting Standards ("IFRS"). The auditors' report on the statutory accounts was unqualified. A copy of those financial statements has been filed with the Registrar of Companies.

 

The financial information for the six months ended 30 April 2012 and 2013 was also prepared in accordance with IFRS.

 

The condensed consolidated interim financial statements do not include all of the information required for full annual financial statements. 

 

The condensed interim financial statements were authorised for issue on 30 July 2013.

 

2. BASIS OF ACCOUNTING

 

The consolidated financial statements are unaudited and have been prepared on the historical cost basis in accordance with International Financial Reporting Standards as adopted by the EU ("IFRS") using the same accounting policies and methods of computation as were used in the annual financial statements for the year ended 31 October 2012. As permitted, the interim report has been prepared in accordance with the AIM rules for Companies and is not compliant in all respects with IAS 34 Interim Financial Statements. The condensed consolidated interim financial statements do not include all the information required for full annual financial statements and hence cannot be construed as in full compliance with IFRS.

 



 

3. LOSS PER SHARE

 

The calculation of the basic loss per share is based on the following data:

 


Unaudited

Unaudited

Audited


6 months

6 months

Year


ended

ended

ended


30-Apr

30-Apr

31-Oct


2013

2012

2012


£

£

£

(Loss)/profit on continuing activities after tax

(195,034)

1,300,678

1,094,395

(Loss)/profit on continuing and discontinued activities after tax

(195,034)

1,046,141

781,476

 

Basic




Basic loss/(earnings) per share have been computed based on the following data:



Number of shares


Weighted average number of ordinary shares for the period

1,821,690,338

153,922,503

954,477,964

Basic (loss)/earnings per share from continuing activities  (p)

(0.01)

0.85

0.11

Basic (loss)/earnings per share from continuing and discontinued activities  (p)

 

(0.01)

 

0.68

 

0.08

 

Diluted




The dilution which might potentially arise from the exercise of warrants outstanding entitling the holders to subscribe new ordinary shares representing 6% of the issued ordinary share capital of the Company from time to time has been considered for the relevant periods and diluted earnings per share have been computed where the effect is not anti-dilutive using the following data:



Number of shares


Weighted average number of ordinary shares for the period

 

N/A

156,490,201

966,300,516

Diluted (loss)/earnings per share from continuing activities  (p)

N/A

0.83

0.11

Diluted (loss)/earnings per share from continuing and discontinued activities  (p)

 

N/A

 

0.67

 

0.08

 

 

There are also 2,021,791 warrants exercisable at 119p per share on 1 December 2013 that could potentially reduce future earnings per share but which are anti-dilutive for each of the above periods.

 

In addition, there were 91,428 shares that could have been issued upon exercise of outstanding share options which lapsed during the year ended 31 October 2012 and which would have been anti-dilutive.

 

 

 



 

4. STATEMENT OF CHANGES IN EQUITY

 


Share Capital


Share Premium


Shares to be issued


Capital Redemption Reserve


Retained Earnings


Total


£


£


£


£


£


£

At 1 November 2011

9,587, 103


3,017,818


-


164,667


(14,123,497)


(1,353,909)

Profit for the 6 months ended 30 April 2012

-


-


-


-


1,046,141


1,046,141

Issue of shares

1,700,000


(85,000)


-


-


-


1,615,000

At 30 April 2012

11,287,103


2,932,818


-


164,667


(13,077,356)


1,307,232

Loss for the 6 months ended 31 October 2012

-


-


-


-


(264,665)


(264,665)

Shares to be issued

-


-


82,611


-


-


82,611

Cost of share based payments

-


-


-


-


19,212


19,212

At 31 October 2012

11,287,103


2,932,818


82,611


164,667


(13,322,809)


1,144,390

Loss for the 6 months ended 30 April 2013

-


-


-


-


(195,034)


(195,034)

Issue of shares

66,089


16,522


(82,611)






-

At 30 April 2013

11,353,192


2,949,340


-


164,667


(13,517,843)


949,356

 

 

 

5. NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT

 


Unaudited


Unaudited


Audited


6 months


6 months


Year


ended


ended


ended


30-Apr


30-Apr


31-Oct


2013


2012


2012


£


£


£

Cash flow from operations






(Loss)/profit

(195,034)


1,046,141


781,476

Depreciation

-


6,706


6,706

Realised and unrealised loss on investments

53,081


-


-

Loss on disposal of fixed assets

-


6,714


6,714

Loss on disposal of discontinued activities

-


283,755


283,755

Extraordinary credit from CVA

-


(1,536,191)


(1,526,949)

Share based payments

-


-


19,212

Finance income

(2,265)


-


(835)

Finance costs

-


50,789


50,789

Decrease/(increase) in inventories

-


10,597


10,597

Decrease/(increase) in receivables

(11,268)


(17,552)


(70,971)

Increase/(decrease) in payables

1,846


195,864


144,457

Cash flow from operations

(153,640)


46,823


(295,049)

 

6.  DISTRIBUTION OF INTERIM REPORT

 

Copies of the Interim Report for the six months ended 30 April 2013 can be obtained from the Registered Office during normal business hours and are available on the Company's website, www.piresinvestments.com.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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