Final Results and Annual Report

RNS Number : 5034R

Levrett PLC

22 September 2017

 

22 September 2017                                                                           

Levrett Plc

("Levrett" or "the Company")

Final Results

for the period ended 31 March 2017

Levrett, a Company formed to acquire a target company with realisable or developed commercial technologies in the pharmaceutical and biotechnology sector, announces its final results for the period ended 31 March 2017 and posting of Annual Report.

Enquiries:

Levrett Plc John Lidgey, Chairman	[phone]
Whitman Howard Limited (Broker and Corporate Advisor) Nick Lovering	[phone]
Gable Communications Limited John Bick	[phone] e: [e-mail]

CHAIRMAN'S STATEMENT

FOR THE YEAR ENDED 31 MARCH 2017

Levrett announced on 15 September 2017 the conclusion of this process and that it has entered into a conditional agreement to acquire the entire issued share capital of Nuformix Limited ("Nuformix") for a total consideration of £12,000,000 to be settled through the issuance of new ordinary shares in the Company at a price of 4 pence per share (the "Acquisition"), subject to Shareholders' approval and Re-admission.

In addition, the Company announced a Placing, under which it has issued 57,500,000 Placing Shares at 4p per share, raising £2.3 million, conditional, inter alia, upon Re-Admission.

Details of Proposed Acquisition of Nuformix Limited, the Placing of New Ordinary Shares, Approval of a Waiver of obligation under Rule 9 of the City Code on Takeovers and Mergers and Notice of General Meeting have been published in the Prospectus which has been sent to shareholders.

The Prospectus has been approved by the UK Listing Authority and is available for inspection at the Financial Conduct Authority's National Storage Mechanism which can be accessed from www.morningstar.co.uk/uk/NSM. The Prospectus is also available on the Company's website http://www.levrett.com/investors.

A copy of the Company's Annual Report is being posted to shareholders and has been filed with the National Storage Mechanism which can be accessed from www.morningstar.co.uk/uk/NSM and is also available on the Company's website http://www.levrett.com/investors.

Francis Lidgey

Chairman

21 September 2017

 INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF LEVRETT PLC

We have audited the financial statements of Levrett plc for the year ended 31 March 2017 which comprise the Statement of Comprehensive Income, the Statement of Changes in Equity, the Statement of Financial Position, the Statement of Cash flows and the related notes. The financial reporting framework that has been applied in their preparation of the company financial statements is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinion we have formed.

Respective responsibilities of directors and auditors

As explained more fully in the Directors' Responsibilities Statement set out on pages 7 and 8, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at www.frc.org.uk/auditscopeukprivate.

Opinion on financial statements

In our opinion:

·      The financial statements give a true and fair view of the state of the Company's affairs as at 31 March 2017 and of the Company's loss for the year then ended,

·      The financial statements have been properly prepared in accordance with IFRS as adopted by the European Union, and

·      The financial statements have been prepared in accordance with the requirements of the Companies Act 2006

Emphasis of matter

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 2 to the financial statements concerning the Company's ability to continue as a going concern having reviewed working capital projections. The position indicates the existence of material uncertainty which may cast significant doubt about the Company's ability to continue as a going concern due to its reliance on future fundraising. The financial statements do not include any adjustments that would result if the company was unable to continue as a going concern.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements and the Strategic Report and Directors' Report has been prepared in accordance with applicable legal requirements. In light of our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic and the Directors' Report. In our opinion the part of the Directors' Remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006.

INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF LEVRETT PLC

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

·      adequate accounting records have not been kept by the Company, or returns adequate for our audit have not been received from branches not visited by us; or

·      the Company financial statements are not in agreement with the accounting records and returns; or

·      certain disclosures of directors' remuneration specified by law are not made; or

·      we have not received all the information and explanations we require for our audit.

Ian Cliffe

Senior Statutory Auditor                                                                                                                26 Red Lion Square

for and on behalf of haysmacintyre                                                                                                London

Statutory Auditors                                                                                                                            WCIR 4AG

21 September 2017                                                                                                                         

LEVRETT PLC

INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2017

		From incorporation  to 31 March
		2017	2016
	Note	£	£
Continuing operations:
Administrative expenses		(685,057)	(350,420)
		-------------------	-------------------
LOSS FOR THE PERIOD BEFORE TAXATION		(685,057)	(350,420)
Taxation	7	-	-
LOSS FOR THE PERIOD AND TOTAL COMPREHENSIVE		-------------------	-------------------
LOSS FOR THE PERIOD		(685,057)	(350,420)
		=========	=========
LOSS PER SHARE - basic and diluted from continuing operations	13	(0.72)p	(0.58) p

The accompanying accounting policies and notes are an integral part of these financial statements.

LEVRETT PLC

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2017

2017

	Share	Share	Share option	Retained	Total
	Capital	Premium	Reserve	Losses	Equity
	£	£	£	£	£
Balance at 1 April 2016	95,750	737,440	19,570	(350,420)	502,340
Loss for the period and total	-	-	-	(685,057)	(685,057)
comprehensive loss
Shares issues	-	-	-	-	-
Share premium (net of expenses)		-	-	-	-
Grant of share options	-	-	3,125	-	3,125
	-----------------	-----------------	-----------------	-----------------	-----------------
Balance at 31 March 2017	95,750	737,440	22,695	(1,035,477)	(179,592)
	========	========	========	========	========

2016	Share	Share	Share option	Retained	Total
	Capital	Premium	Reserve	Losses	Equity
	£	£	£	£	£
Loss for the year and total				(350,420)	(350,420)
comprehensive loss for the year
Share issue	95,750				95,750
Share issue costs		737,440			737,440
Grant of share options			19,570		19,570
	-----------------	-----------------	-----------------	-----------------	-----------------
Balance at 31 March 2016	95,750	737,440	19,570	(350,420)	502,340
	========	========	========	========	========

The accompanying accounting policies and notes are an integral part of these financial statements.

LEVRETT PLC

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2017

			2017	2016
		Note	£	£
CURRENT ASSETS
Trade and other receivables		8	13,727	42,578
Cash and cash equivalents		9	5,895	502,213
			-------------------	-------------------
TOTAL ASSETS			19,622	544,791
			=========	=========
CURRENT LIABILITIES
Trade and other payables		10	199,214	42,451
			-------------------	-------------------
NET (LIABILITIES)/ASSETS			(179,592)	502,340
			=========	=========
EQUITY
Share capital		11	95,750	95,750
Share premium account		11	737,440	737,440
Share option reserve			22,695	19,570
Retained losses			(1,035,477)	(350,420)
			--------------------	--------------------
TOTAL EQUITY			(179,592)	502,340
			==========	==========

These financial statements were approved by the Board of Directors on 21 September 2017 and were signed on its behalf by:

Pascal Hughes

Director

Company number: 09632100

The accompanying accounting policies and notes are an integral part of these financial statements.

LEVRETT PLC                                                                                                                   

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2017

	Note	2017	2016
CASH FLOWS FROM OPERATING ACTIVITIES		£	£
Loss after taxation		(685,057)	(350,420)
Adjustments for:
Issue of warrants Decrease/(increase) in trade and other receivables		3,125  28,851	- (42,578)
Increase in trade and other payables		156,763	42,451
NET CASH OUTFLOW FROM OPERATING ACTIVITIES		------------------	------------------
		(496,318)	(350,547)
		------------------	------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Issue of shares (net of costs)		-	852,760
		------------------	------------------
NET CASH INFLOW FROM FINANCING ACTIVITIES		-	852,760
		========	========
NET (DECREASE)/INCREASE IN CASH AND CASH		(496,318)	502,213
EQUIVALENTS
Cash and cash equivalents brought forward		502,213	-
		------------------	------------------
CASH AND CASH EQUIVALENTS CARRIED FORWARD	9	5,895	502,213
		========	========

The accompanying accounting policies and notes are an integral part of these financial statements.

LEVRETT PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2017

1.         GENERAL INFORMATION

             Levrett plc is a public limited company incorporated in the United Kingdom. The Company's principal activities are described in the Directors' Report.

2.         ACCOUNTING POLICIES

             The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.  The financial statements have been prepared using the measurement bases specified by IFRS for each type of asset, liability, income and expense.  The measurement bases are more fully described in the accounting policies below.

             The financial statements are presented in pounds sterling (£) which is the functional currency of the company.

             An overview of standards, amendments and interpretations to IFRSs issued but not yet effective, and which have not been adopted early by the Company are presented below under 'Statement of Compliance'.

Going Concern

The directors have prepared cash flow forecasts through to 31 May 2019 which assumes no significant investment activity is undertaken unless sufficient funding is in place.  The expenses of the Company's continuing operations are minimal and the cash flow forecasts demonstrate that the Company is able to meet these liabilities as they fall due.  On this basis, the Directors have a reasonable expectation that the Company has adequate resources to continue operating for the foreseeable future.  For this reason, they continue to adopt the going concern basis in preparing the Company's financial statements.

Critical Accounting Estimates and Judgements

The preparation of financial statement in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting year.  These estimates and assumptions are based upon management's knowledge and experience of the amounts, events or actions.  Actual results may differ from such estimates.

The estimates and assumptions that may cause material adjustment to the carrying value of assets and liabilities relate to:

Share based payments

The calculation of the fair value of equity-settled share based awards and the resulting charge to the statement of comprehensive income requires assumptions to be made regarding future events and market conditions.  These assumptions include the future volatility of the Company's share price.  These assumptions are then applied to a recognised valuation model in order to calculate the fair value of the awards.

LEVRETT PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2017

2.         ACCOUNTING POLICIES (continued)

Statement of compliance

The financial statements comply with IFRS as adopted by the European Union.  At the date of authorisation of these financial statements the following Standards and Interpretations affecting the Company, which have not been applied in these financial statements, were in issue, but not yet effective.  The company does not plan to adopt these standards early.

·      Amendments to IFRS 2 Share Based Payment (effective for accounting periods beginning on or after 1 January 2018)

·      Amendments to IFRS 12 Disclosure of Interests in Other Entities (effective for accounting periods beginning on or after 1 January 2017)

·      IFRS 15 Clarification of Revenue from Contracts with Customers (effective for accounting periods beginning on or after 1 January 2018)

·      IFRS 16 Leases (effective for accounting periods beginning on or after 1 January 2019)

·      Amendments to IAS 7 Statement of Cash Flows (effective for accounting periods beginning on or after 1 January 2017)

·      Amendments to IAS 12 Income Taxes (effective for accounting periods beginning on or after 1 January 2017)

Share based payments

All share based payments are accounted for in accordance with IFRS 2 - "Share-based payments".  The Company issued equity-settled share based payments in the form of share options to certain directors and employees.  Equity settled share based payments are measured at fair value at the date of grant.  The fair value determined at the grant date of equity-settled share based payments is expensed on a straight line basis over the vesting period, based on the Company's estimate of shares that will eventually vest.

Fair value is estimated using the Black-Scholes valuation model.  The expected life used in the model has been adjusted, on the basis of management's best estimate for the effects of non-transferability, exercise restrictions and behavioural considerations.  At each balance sheet date, the Company revises its estimate of the number of equity instruments expected to vest as a result of the effect of non-market based vesting conditions.  The impact of the revision of the original estimates, if any, is recognised in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to retained earnings.

Taxation

Current taxation is the taxation currently payable on taxable profit for the year.

Deferred income taxes are calculated using the liability method on temporary differences.  Deferred tax is generally provided on the difference between the carrying amounts of assets and liabilities and their tax bases.  However, deferred tax is not provided on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit.  Temporary differences include those associated with shares in subsidiaries and joint ventures and are only not recognised if the Company controls the reversal of the difference and it is not expected for the foreseeable future.  In addition, tax losses available to be carried forward as well as other income tax credits to the Company are assessed for recognition as deferred tax assets.

Deferred tax liabilities are provided in full, with no discounting.  Deferred tax assets are recognised to the extent that it is probable that the underlying deductible temporary differences will be able to be offset against future taxable income.  Current and deferred tax assets and liabilities are calculated at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the statement of financial position date.  Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statements, except where they relate to items that are charged or credited to equity in which case the related deferred tax is also charged or credited directly to equity.

LEVRETT PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2017

2.         ACCOUNTING POLICIES (continued)

Financial assets

The Company's financial assets comprise cash and cash equivalents and trade and other receivables.

Trade and other receivables

Trade and other receivables are recognised and carried at original invoice value less an allowance for any uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when identified.

Cash and Cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

             Financial liabilities

             The Company's financial liabilities comprise trade payables.  Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Company becomes a party to the contractual provisions of the instruments.

             Trade payables

             Trade payables are initially measured at fair value and are subsequently measured at amortised cost, using the effective interest rate method.

             Equity

             Equity comprises the following:

·      "Share capital" represents the nominal value of equity shares.

·      "Share premium" represents the excess over nominal value of the fair value of consideration received for equity shares, net of expenses of the share issue.

·      "Share option reserve" represents the fair value of options issued

·      "Retained losses" represents retained losses.

3.         SEGMENTAL INFORMATION

The Company is organised around business class and the results are reported to the Chief Operating Decision Maker according to this class.  There is one continuing class of business, being the investment in the pharmaceutical sector.

             Given that there is only one continuing class of business, operating within the UK no further segmental information has been provided.

4.	EXPENSES BY NATURE	2017	2016
		£	£
	Operating rentals	48,000	34,000
	Wages and salaries	24,000	36,000
	Social security costs	2,566	3,673
	The average number of persons employed by the Company during the period was l. (2016: 1)

LEVRETT PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2017

5.	AUDITOR'S REMUNERATION	2017		2016
		£		£
	During the year the Company obtained the following services from the Company's auditor:
	Fees payable to the Company's auditors for the audit of the Company's	10,300		10,000
	annual accounts
	Fees payable to the Company's auditors for other services:
	Other services pursuant to legislation	1,000		1,000
	Tax services	2,000		2,000
		-----------------		-----------------
		13,300		13,000
		========		========

6.	DIRECTORS' REMUNERATION
	The company has one employee and the key management of the Company are the Directors.  The amounts paid to the Directors, is as follows:
			2017	2016
	Director		£	£
	Pascal Hughes		24,000	18,000
	John Lidgey		24,000	8,000
	Anthony Reeves		24,000	8,000
			------------------	------------------
			72,000	34,000
			=========	=========

LEVRETT PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2017

7.	TAXATION		2017	2016
			£	£
	Current tax on income for the period		-	-
			------------------	------------------

The tax on the Company's loss before tax differs from the theoretical amount that would arise using the weighted average rate applicable to profits of the consolidated entities as follows:

		2017	2016
		£	£
	Factors affecting the tax charge
	Loss before tax	(685,057)	(350,420)
		------------------	------------------
	Profit/(loss) before tax multiplied by rate of corporation tax in the UK
	of 20%	(137,011)	(70,084)
	Deferred tax not recognised	137,011	70,084
		------------------	------------------
	Total tax	-	-
		=========	=========

No deferred tax asset has been recognised as Directors cannot be certain that future profits will be sufficient for this asset to be realised.  As at 31 March 2017 the Company has tax losses carried forward of approximately £1,006,053      

Factors affecting future tax charges  

UK corporation tax rates are falling from the current rate of 20% to 19% for the financial year beginning 1 April 2017 and to 17% for the financial year beginning 1 April 2020.          

8.	TRADE AND OTHER RECEIVABLES	2017	2016
		£	£
	VAT Debtor	13,727	42,578
		=========	=========

The fair value of trade and other receivables is considered by the Directors not to be materially different to carrying amounts.

9.	CASH AND CASH EQUIVALENTS	2017		2016
		£		£
	Cash at bank	5,895		502,213
		=========		=========

The Directors consider that the carrying amount of cash and cash equivalent represents their fair value.

LEVRETT PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2017

10.	TRADE AND OTHER PAYABLES	2017	2016
		£	£
	Trade payables	163,414	36,342
	Accrued charges	35,800	6,109
		------------------	------------------
		199,914	42,451
		=========	=========

The fair value of trade and other payables is considered by the Directors not to be materially different to carrying amounts.

11.	ISSUED SHARE CAPITAL	Number of	Nominal	Share
		Shares	Value	premium
	Issued and fully paid	No.	£	£
	At 31 March 2016 and 31 March 2017:
	Ordinary shares of 0.001p each
	Issued on incorporation	50,000,000	50,000	-
	Issued on 17 December 2015	45,750,000	45,750	757,010
		------------------	-------------------	------------------
		95,750,000	95,750	757,010
		=========	=========	========

Fully paid ordinary shares, which have a par value of 0.001p, carry one vote per share and rank equally in respect of dividends.

Reserve	Description and Purpose
Share premium	Amount subscribed for share capital in excess of nominal value.
Retained Losses	Cumulative net gains and losses recognised in the consolidated income statement.
Share option reserve	Value of warrants and options issued

12.       SHARE OPTIONS AND WARRANTS         

             EQUITY-SETTLED SHARE OPTION SCHEME

             The company operates share-based payment arrangements to remunerate directors and key employees in the form of a share option scheme.  Equity-settled share-based payments are measured at fair value (excluding the effect of non-market based vesting conditions) at the date of grant.  The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Company's estimate of shares that will eventually vest and adjusted for the effect of non-market based vesting conditions.

             The fair value of warrants was determined using the Black-Scholes option pricing model and was 0.0125p (2016: 0.020438p) per option.

             The significant inputs to the model in respect of the warrants granted in the period ending 31 March 2016 and year ended 31 March 2017 were as follows:

		2017	2016
	Grant date share price	4p	4p
	Exercise share price	4p	2p

LEVRETT PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2017

12.          SHARE OPTIONS AND WARRANTS (continued)

	No. of share options	250,000	957,500
	Risk free rate	0.5%	0.5%
	Expected volatility	50%	30%
	Expected option life	2 years	2 years

The total share-based payment expense recognised against share premium for the year ended 31 March 2017 in respect of warrants granted was £3,125.

The following table sets out the details of the warrants granted:

			Number of		Number of
			options at		options at
			1 April	Issued	31 March	Exercise	Expiry
	Warrant holder		2016	in the year	2017	price	date
	EGR Broking Limited		957,500	-	957,500	2p	07/12/17
	Rampart Management Limited		12,000,000	-	12,000,000	4p	07/12/18
	Ambeson Limited		11,000,000	-	11,000,000	4p	07/12/18
	James Bligh		10,000,000	-	10,000,000	4p	07/12/18
	Pascal Hughes		5,000,000	-	5,000,000	4p	07/12/18
	OBB Trading Limited		3,000,000	-	3,000,000	4p	07/12/18
	Dielle Regan		2,500,000	-	2,500,000	4p	07/12/18
	Robert Regan		2,500,000	-	2,500,000	4p	07/12/18
	Jack Dibble		1,400,000	-	1,400,000	4p	07/12/18
	Fulcrum Management Services		1,000,000	-	1,000,000	4p	07/12/18
	Anthony Reeves		1,000,000	-	1,000,000	4p	07/12/18
	GB Trust Co Limited		600,000	-	600,000	4p	07/12/18
	Whitman Howard		-	250,000	250,000	4p	31/08/19
			--------------------	--------------------	--------------------
			50,957,500	250,000	51,207,500
			==========	==========	==========

As a result of the placing on the 7 December 2015, the company has created and issued a total of 50,000,000 warrants to the original founder shareholders. These warrants may be exercised at any time on or before 7 December 2018 and shall entitle the warrant holder to subscribe for one Ordinary share for each warrant at 4p.

The share options outstanding at the year end has a weighted average exercise price of £0.04 (2016: £0.04), and a weighted average remaining contractual life of 479 days (2016: 844 days) The weighted average exercise price of share options issue in the year was £0.04 (2016: £0.04)

13.       LOSS PER SHARE

The calculation of loss per ordinary share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year. 

		Loss	Weighted Average number of shares	Per shares amount pence
		£
	Basic and diluted earnings per share 2016	(350,420)	60,090,214	(0.58) p
	Basic and diluted earnings per share 2017	(685,057)	95,750,000	(0.72) p

LEVRETT PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2017

13.       LOSS PER SHARE (continued)

Post year end on 18 April 2017, the company announced that it had entered into a convertible loan note agreement for £200,000 with a private investor. The loan can be converted into new ordinary shares at 4p per share. If conversion into ordinary shares of the company occurs, the lender will be granted a one for one warrant to subscribe for new ordinary shares at 4p per share, exercisable for a three-year period from conversion and therefore is possibly dilutive on earnings per share in future.

14.       FINANCIAL INSTRUMENTS

             CAPITAL MANAGEMENT

                The Company's objectives when managing capital are:

·       to safeguard the Company's ability to continue as a going concern, so that it continues to provide returns and benefits for shareholders;

·       to support the Company's growth; and

·       to provide capital for the purpose of strengthening the Company's risk management capability.

The Company actively and regularly reviews and manages its capital structure to ensure an optimal capital structure and equity holder returns, taking into consideration the future capital requirements of the Company and capital efficiency, prevailing and projected profitability, projected operating cash flows, projected capital expenditures and projected strategic investment opportunities.  Management regards total equity as capital and reserves, for capital management purposes.

                CREDIT RISK

The main credit risk relates to liquid funds held at banks.  The credit risk in respect of these bank balances is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.

                LIQUIDITY RISK

                The Company seeks to manage financial risk, to ensure sufficient liquidity is available to meet foreseeable needs.

                An analysis of trade and other payables is given in note 10.  These payables are payable within a year.

                CATEGORIES OF FINANCIAL INSTRUMENTS

The IAS 39 categories of financial asset included in the statement of financial position and the headings in which they are included are as follows:

		2017	2016
		£	£
	Financial assets:
	Cash and bank balances	5,895	502,213
	Loans and receivables	13,727	42,578
	Financial liabilities at amortised cost:
	Trade and other payables	(199,214)	(42,451)
		=========	=========

LEVRETT PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2017

15.       RELATED PARTY TRANSACTIONS

During the year the Company was invoiced £24,000 for management services by Pascal Hughes, a director, £24,000 for management services by John Lidgey, a director, and £24,000 for management services by Anthony Reeves, a director.

16.       ULTIMATE CONTROLLING PARTY

             The Directors do not consider there to be a single ultimate controlling party.

17.      POST BALANCE SHEET EVENT

             The Company announced on 16 September 2016 that it was in advanced discussions relating to the possible acquisition of Nuformix Limited.

             Levrett announced on 15 September 2017 the conclusion of this process and that it has entered into a conditional agreement to acquire the entire issued share capital of Nuformix Limited ("Nuformix") for a total consideration of £12,000,000, to be settled through the issuance of new ordinary shares in the Company at a price of 4 pence per share (the "Acquisition"), subject to Shareholder approval and Re-admission.

             In addition, the company announced a Placing, under which it has issued 57,500,000 Placing Shares at 4p per share, raising £2.3 million, conditional, inter alia, upon Re-Admission.

 

END

 

 

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