Unaudited interim results

RNS Number : 4483P

Duke Royalty Limited

17 November 2016

 

17 November 2016

Duke Royalty Limited

("Duke Royalty" or the "Company")

Unaudited interim results.

17 November 2016 - Duke Royalty Limited ("Duke Royalty" or the "Company"), a public diversified royalty company (AIM: DUKE), today announces its interim financial results for the period ending 30 September 2016:

An extract from the interim report appears below and the full version can be viewed on the Company's website at www.dukeroyalty.com

For further information:

Duke Royalty Limited	Neil Johnson Charlie Cannon-Brookes [phone]
Peel Hunt LLP (Nominated Adviser)	Edward Knight
	[phone]

About Duke Royalty

Headquartered in Guernsey, Duke Royalty Limited is a team of experienced financial executives dedicated to providing  royalty financing solutions to a diversified number of well-managed businesses in Europe and abroad.  Duke Royalty intends to reinvent the royalty financing model for European public markets by lowering costs through an efficient structure and entering into exclusive alliances that leverage deal flow and expertise. A $50 billion sector in North America, Duke Royalty plans to bring royalty investing to the  European market by leveraging the management team's North American experience and success with royalty investing. These investments are intended to provide robust, stable, and long-term returns for Duke Royalty's  shareholders. 

Duke Royalty is listed on the AIM market under the ticker DUKE.  For more information, visit www.dukeroyalty.com.

Chairman's Report

During the period under review, the Company reported a loss after taxation of GBP 603,783, which reflected the continued development and progress of the Company's late stage royalty pipeline.

In the Company's full year report released to the market on 25 July 2016, I referenced the fact that the Company was evaluating a number of late stage royalty opportunities and that the Company was considering its options to raise additional capital, either in the form of equity or debt, to execute its investing policy and acquire a portfolio of long term, stable, and diversified royalty streams.

By way of an update, I can confirm that Company is currently in active and advanced negotiations with a variety of potential funders with a view to successfully concluding its targeted initial funding round.  Successful conclusion of these negotiations would provide the Company with the financial means and capability to conclude its inaugural royalty transactions.   Shareholders should be aware that, subsequent to the sale of the legacy mining investments inherited from the previous management team, the Company has until 30th March 2017 to conclude a transaction in line with its investing policy in accordance with AIM Rule 15 or its ordinary shares may be suspended from trading on AIM.  While there is no certainty that the required funds can be raised to implement its investing policy, given the late stage nature of the funding negotiations the Company remains confident that it will be able to conclude a transaction within this timeframe.

I look forward to being able to update shareholders of positive progress in due course.

Nigel Birrell

Chairman

Consolidated Statement of Comprehensive Income

For the period ended 30 September 2016

		Period ended 30 September 2016 Unaudited				Period ended 30 September 2015 Unaudited
	Notes		£			£
Income
Net capital loss on financial assets as fair value through profit or loss	3		-			(978,308)
Foreign currency gain			2			-
Investment income	3		-			-
Net investment gain	3		2			(978,308)
Expenses
Support services fees	10		(188,103)			(356,708)
Directors' fees	10		(109,000)			(78,715)
Legal and professional fees			(124,628)			(55,635)
Consultancy fees			(38,125)			(52,165)
Restructuring costs			(15,071)			(42,425)
Other expenses	4		(23,222)			(37,434)
Administration fees			(28,500)			(17,722)
Audit fees			(15,500)			(17,600)
Travel & entertainment	10		(73,700)			(14,666)
Registrar fees			(5,941)			(13,434)
Broker fees			-			(10,894)
Nomad fees			(15,083)			(10,000)
Foreign currency loss			-			(3,030)
Investment advisory fees			(38,406)			-
Total expenses			(675,279)			(710,428)
Operating loss			(675,277)			(1,688,736)
Finance income			72,496			9
Finance costs	8		(1,002)			(80,612)
Total comprehensive expense for the period			(603,783)			(1,769,339)
Basic and diluted deficit per share (pence)			(7.66)			(30.03)

All activities derive from continuing operations. 

All income is attributable to the holders of the Ordinary Shares of the Company.

Consolidated Statement of Changes in Equity

For the period ended 30 September 2016

		Shares Issued	Warrants Issued	Share Option Reserve	Retained Earnings	Total Equity
	Notes	£	£	£	£	£
At 1 April 2016		27,064,815	72,454	124,412	(25,191,366)	2,070,315
Total comprehensive expense for the period		-	-	-	(603,783)	(603,783)
Transactions with owners
Shares issued	7	-	-	-	-	-
Warrants cancelled	7	-	(72,454)	-	-	(72,454)
Total transactions with owners		-	(72,454)	-	-	(72,454)
At 30 September 2016		27,064,815	-	124,412	(25,795,149)	1,394,078
At 1 April 2015		24,208,640	72,454	-	(21,144,750)	3,136,344
Total comprehensive expense for the year		-	-	-	(1,769,339)	(1,769,339)
Transactions with owners
Shares issued	7	2,706,175	-	-	-	2,706,175
Warrants cancelled	7	-	(72,454)	-	-	(72,454)
Total transactions with owners		2,706,175	(72,454)	-	-	2,633,722
At 30 September 2015		26,914,815	-	-	(22,914,089)	4,000,726

Consolidated Statement of Financial Position

As at 30 September 2016

		30 September 2016 Unaudited		31 March 2016 Audited
	Notes	£		£
ASSETS
Non-Current Assets
Investments at fair value through profit or loss	3	-		-
Total non-current assets		-		-
Current Assets
Trade and other receivables	8	42,870		519,737
Cash and cash equivalents		1,382,211		1,625,749
Total current assets		1,425,081		2,145,486
Total Assets		1,425,081		2,145,486

EQUITY AND LIABILITIES
Equity
Shares issued	7	27,064,815		27,064,815
Warrants issued	7	-		72,454
Share option reserve	7	124,412		-
Retained losses	7	(25,795,149)		(25,191,366)
Total Equity		1,394,078		2,070,315
Current Liabilities
Trade and other payables	9	31,003		75,171
Total current liabilities		31,003		75,171
Total equity and liabilities		1,425,081		2,145,486

Net asset value per Ordinary Share (excluding
shares held in Treasury)		0.18		0.27

Consolidated Statement of Cash Flows

For the period ended 30 September 2016

		Period ended 30 September 2016		Period ended 30 September 2015
	Notes	£		£
Cash flows from operating activities
Proceeds from sale of investments	3	516,535		764,326
Interest and investment income		42		9
Operating expenses paid		(760,115)		(450,950)
Net cash inflow/(outflow) from operating activities		(243,538)		313,385
Cash flows from financing activities
Proceeds from issue of shares	7	-		2,256,175
Payment of redemption of shares	7	-		-
Repayment of loan		-		(1,500,000)
Loan facility issue costs		-		(341,199)
Escrow payments under loan agreement		-		257,080
Net cash inflow from financing activities		--		672,056
Net change in cash and cash equivalents		(243,538)		985,441
Cash and cash equivalents at beginning of period		1,625,749		517,597
Cash and cash equivalents at end of period		1,382,211		1,503,038

Notes to the Consolidated Financial Statements

For the period ended 30 September 2016

1.     GENERAL INFORMATION

Duke Royalty Limited ("Duke Royalty" or the "Company") is a closed-ended investment company with limited liability formed under the Companies (Guernsey) Law, 2008. The Company was incorporated in Guernsey on 22 February 2012 and its shares were admitted to trading on the London Stock Exchange's AIM on 9 July 2012. The Company's registered office is shown on page 18.

Following a change in investment policy in June 2015, the Company's investment objective is to invest in a diversified portfolio of royalty finance and related opportunities.

The Company's shares are traded on AIM, a market operated by the London Stock Exchange.

2.     SIGNIFICANT ACCOUNTING POLICIES

a)    Basis of preparation

The Unaudited Condensed Financial Statements ("Interim Statements") have been prepared in accordance with International Accounting Standard ("IAS") 34: Interim Financial Reporting. The Interim Statements do not include all the information and disclosures required in annual financial statements, and should be read in conjunction with the Company's Annual Report and Consolidated Financial Statements for the year ended 31 March 2016 (2016 "Annual Report"), which were prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and applicable Guernsey law.

b)    New and amended standards and interpretations

The same accounting policies, presentation and methods of computation are followed in these Interim Statements as were followed in the preparation of the 2016 Annual Report.

At the date of authorisation of these Interim Statements, the following standards and interpretations, which will become relevant to the Company but have not been applied in these Consolidated Financial Statements, were in issue but not yet effective:

IFRS 9, "Financial Instruments - Classification and Measurement" (for accounting periods currently no sooner than 1 January 2018, though no effective date has been set by the ISAB).

IFRS 7, Financial Instruments Disclosures - Amendments regarding initial application of IFRS 9* - effective for periods commencing on or after 1 January 2015.

*still to be endorsed by the EU.

IFRS 15, Revenue from contracts with customers - effective for periods commencing on or after 1 January 2017.

c)    Financial instruments

Financial assets and financial liabilities are recognised in the Statement of Financial Position when the Company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are only offset and the net amount reported in the Statement of Financial Position and Statement of Comprehensive Income when there is a currently enforceable legal right to offset the recognised amounts and the Company intends to settle on a net basis or realise the asset and liability simultaneously.

Financial assets

The classification of financial assets at initial recognition depends on the purpose for which the financial asset was acquired and its characteristics. All financial assets are initially recognised at fair value. All purchases of financial assets are recorded at trade date, being the date on which the Company became party to the contractual requirements of the financial assets. The Company has not classified any of its financial assets as Held to Maturity or as Available for Sale. The Company's financial assets comprise receivables and investments held at fair value through profit or loss.

Loans and receivables

These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They principally comprise other receivables and cash and cash equivalents. They are initially recognised at fair value on acquisition, and subsequently carried at amortised cost using the effective interest rate method less provisions for impairment. The effect of discounting on these financial instruments is not considered to be material.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments with an original maturity of three months or less that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

Financial assets at fair value

Classification

The Company classifies its investments as "financial assets at fair value". These financial assets are designated by the Company at fair value through profit or loss at inception.

Recognition

Purchases and sales of investments are recognised on the trade date, the date on which the Company commits to purchase or sell the investment.

Measurement

Financial assets at fair value are initially recognised at cost, being the fair value of consideration given. Subsequent to initial recognition, all financial assets at fair value through profit or loss are measured at fair value. Gains and losses arising from changes in the fair value of the 'financial assets at fair value' category are presented in the Statement of Comprehensive Income in the period in which they arise.

Fair value estimation

Marketable (Listed) Securities - where an active market exists for the securities, the value is stated at the bid price on the last trading day in the period. Marketability discounts are not applied unless there is some contractual, governmental or other legally enforceable restriction preventing realisation at the reporting date.

Unlisted Investments - are carried at such fair value as the Directors consider appropriate given the performance of each investee company and after considering the financial position of the entity, latest news and developments.

Fair value hierarchy

IFRS 13 requires disclosure of fair value measurements by level of the following fair value hierarchy.

Level 1 - inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities that the entity can readily observe.

Level 2 - inputs are inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly.

Level 3 - inputs that are not based on observable market date (unobservable inputs).

Derecognition of financial assets

A financial asset (in whole or in part) is derecognised either (i) when the Company has transferred substantially all the risks and rewards of ownership; or (ii) when it has neither transferred nor retained substantially all the risks and rewards and when it no longer has control over the assets or a portion of the asset; or (iii) when the contractual right to receive cash flow has expired. Any gain or loss on derecognition is taken to the Statement of Comprehensive Income as appropriate.

Financial liabilities

The classification of financial liabilities at initial recognition depends on the purpose for which the financial liability was issued and its characteristics.

All financial liabilities are initially recognised at fair value. All purchases of financial liabilities are recorded on trade date, being the date on which the Company becomes party to the contractual requirements of the financial liability. Unless otherwise indicated the carrying amounts of the Company's financial liabilities approximate to their fair values.

The Company's financial liabilities consist of any financial liability measured at amortised cost.

Financial liabilities measured at amortised cost

These include loans and borrowings, payables and other short-term monetary liabilities, which are initially recognised at fair value and subsequently carried at amortised cost using the effective interest rate method.

Derecognition of financial liabilities

A financial liability (in whole or in part) is derecognised when the Company has extinguished its contractual obligations, it expires or is cancelled. Any gain or loss on derecognition is taken to the Consolidated Statement of Comprehensive Income.

Capital

Financial instruments issued by the Company are treated as equity if the holder has only a residual interest in the assets of the Company after the deduction of all liabilities. The Company's Ordinary Shares and Warrants are classified as equity instruments.

The Company considers its capital to comprise its Ordinary Share Capital, Warrants and retained earnings.

Equity instruments

Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction from proceeds.

Where the Company purchases its own share capital, the consideration paid, which includes any directly attributable costs, is recognised as a deduction from equity shareholders' funds through the Company's reserves. If such shares are subsequently sold or re-issued to the market, any consideration received, net of any directly attributable incremental transactions costs, is recognised as an increase in equity shareholders' funds through the Share Capital account.

d)    Income

Interest income is recognised on a time apportioned basis using the effective interest method. Investment income is recognised on an accrual basis in the Consolidated Statement of Comprehensive Income.

e)    Expenses

Expenses are accounted for on an accrual basis.

f)     Share based payments

The Company operates an equity settled Share Option Plan for its directors and key advisers. As the shares issued vest immediately the Company recognises the full expense within the Statement of Comprehensive Income with the corresponding amount recognised in a share option reserve.

The Company also settles a portion of expenses by way of share based payments, these expenses are settled based on the fair value of the service received as an expense with the corresponding amount increasing equity.

3.     INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

For the period ended 30 September 2016 - Unaudited	Level 1	Level 2	Level 3	Total
	£	£	£	£
Opening Cost	-	-	-	-
Additions at cost	-	-	-	-
Disposals proceeds	-	-	-	-
Net realised loss on disposal of investments	-	-	-	-
Closing portfolio cost	-	-	-	-
Net accumulated unrealised loss on investments	-	-	-	-
Closing valuation	-	-	-	-
Net unrealised gain on investments	-	-	-	-
Net realised loss on disposal of investments	-	-	-	-
Net capital gain on fair value of financial assets designated at fair value through profit or loss	-	-	-	-
Investment income	-	-	-	-
Total gains on financial assets at fair value through profit or loss	-	-	-	-
For the year ended 31 March 2016 - Audited	Level 1	Level 2	Level 3	Total
	£	£	£	£
Opening Cost	17,631,398	82,119	3,094,348	20,807,865
Transfer to level 3	(1,470,445)	-	1,470,445	-
Cost change	161,355	-	-	161,335
Disposals proceeds	(1,599,574)	(82,119)	-	-
Net realised loss on disposal of investments	(14,722,734)	-	-	(14,722,734)
Closing portfolio cost	-	-	4,564,793	4,564,793
Net accumulated unrealised loss on investments	-	-	(4,564,793)	(4,564,793)
Closing valuation	-	-	-	-
Net unrealised gain/(loss) on investments	13,877,198	2,267	(1,558,771)	12,320,694
Net realised loss on disposal of investments	(14,722,734)	-	-	(14,722,734)
Net capital loss on fair value of financial assets designated at fair value through profit or loss	(845,536)	2,267	(1,558,771)	(2,402,040)
Investment income	-	-	-	-
Total gain/(losses) on financial assets at fair value through profit or loss	(845,536)	2,267	(1,558,771)	(2,402,040)

Fair Value Hierarchy

Financial assets designated at fair value through profit or loss ("financial assets"), are analysed by using a fair value hierarchy that reflects the significance of inputs. The fair value hierarchy has the following levels:

Level 1 - inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities that the entity can readily observe.

Level 2 - inputs are inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly.

Level 3 - inputs that are not based on observable market data (unobservable inputs).

Valuation techniques used in the determination of fair values, including the key inputs used, are as follows:

Fair value hierarchy level           Valuation techniques

Level 1                                           Fair value is the quoted price.

Level 2                                                           The debenture was valued based on a precedent transaction in the year on the same investment for the same debenture. The fair value was deemed to be the price received of the precedent transaction and accordingly was included within Level 2.     

Level 3                                           The  fair  value  of  investments  in  the two unlisted  entities  is  derived  by  applying  a discount rate, as deemed  appropriate by the  Board, to  in one case the latest unaudited NAV and in the other case to the latest traded price prior to suspension.

The  significant  unobservable  input  used  in  arriving  at  the  fair  value  is  the discount  rate  applied  by  the  Board.  The discount rate used is the best estimate   of   the   measure   of   the   impact   of   the   illiquid   nature   of   the investments together with the certain issues each investment is facing.

For financial instruments that are recognised at fair value on a recurring basis, the Board determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.   The amount of £516,535 represents cash received from unsettled trades relating to the previous accounting period.

During the year to 31 March 2016 there was a transfer from Level 1 to Level 3. The investment was previously listed with quoted prices on an active market. At the year end the investments did not have an active market and were therefore valued by the Board using the Company's valuation policy for unquoted investments. This change caused the Company to reclassify the investments from Level 1 to Level 3. There have been no transfers during the period ended 30 September 2016.

4.     OTHER EXPENSES

	Period ended 30 September 2016 Unaudited		Period ended 30 September 2015 Unaudited
	£		£
Marketing costs	6,307		19,332
Sundry expenses	5,105		5,871
Insurance premiums	5,310		5,028
Listing fees	6,500		4,322
Custodian fees	-		2,881
	23,222		37,434

5.     TAXATION

The Company has been granted exemption from Guernsey taxation and is charged an annual exemption fee of £1,200.

6.     DIVIDENDS

No dividend was declared or paid in respect of the period ended 30 September 2016 (period ended 30 September 2015: £nil).

7.     SHARES ISSUED

	Number of Warrants	Number of subscription shares	Number of ordinary Shares in issue	£
Authorised
Unlimited number of shares of no par value	-	-	-	-
Allotted, called up and fully paid:
As at 1 April 2016	363,196	-	7,877,459	27,137,269
Warrants cancelled	(363,196)	-	-	(72,454)
As at 30 September 2016	-	-	7,877,459	27,064,815

No shares were issued during the period ended 30 September 2016.

The share option scheme was established to incentivise directors, staff and certain key advisers and consultants to deliver long-term value creation for shareholders. Options will be awarded at the sole discretion of the Board of the Company which also agreed not to grant options such that the total number of unexercised options represents more than 10 per cent of the Company's Ordinary Shares in issue from time to time. The Board also expects that the exercise price will be at a premium to the mid-market share price at the date of granting the options. Total number of options awarded to Directors, Consultants and advisors amount to 760,000, further information can be found in note 10. The options vest with immediate effect, have an exercise price of 75 pence and expire five years after the date of issuance. 

8.     TRADE AND OTHER RECEIVABLES

	30 September 2016		31 March  2016
	£		£
Prepayments and accrued income	42,870		3,202
Unsettled trades	-		516,535
	42,870		519,737

9.     TRADE AND OTHER PAYABLES

	30 September 2016		31 March  2016
	£		£
Other creditors	13,503		-
Audit fees	12,500		25,000
Directors fees	-		31,171
Investment advisory fees	5,000		10,000
Administration fees	-		9,000
	31,003		75,171

10.  RELATED PARTIES

Directors were entitled to the following remuneration during the period;

	Charge for period to 30/09/2016		Charge for period to 30/09/2015		Outstanding at period end 30/09/2016					Outstanding at year end 31/03/2016
	£		£		£					£
Neil Johnson	50,000		30,746			-					8,755
Charles Cannon-Brookes	35,000		20,377			-			5,833
Nigel Birrell	12,000		6,921			-			6,000
James Ryan	12,000		6,921			-			6,000
Mark Le Tissier	-		-			-			-
Robert King - resigned 3 March 2016	-		13,750			-			4,583
	109,000		78,715			-			31,171

Total payments of £109,000 regarding Company Directors fees were made during the period to Messrs Johnson, Cannon-Brookes, Birrell and Ryan.

Directors were also reimbursed for £61,347 (30 September 2015: £14,666) for expenses incurred on business on behalf of the Company.

Mark Le Tissier, a Director of Trident Trust (Guernsey) Limited waived his entitlement to a fee for his directorship.

The Investment Committee assists the Company in analysing and recommending potential royalty transactions. Along with Neil Johnson the Investment Committee is made up of David Campbell, Andrew Carragher, Andrew Chadwick-Jones, Justin Cochrane, and Jim Webster. During the period £20,000 (30 September 2015: £nil) was paid to the committee members, of which £5,000 was outstanding at the end of the period. Only the two independent members (A Carragher and J Webster) earn a fee for their role on the Investment Committee. Those fees were paid as follows:

	Entitlement per annum		Charge for period to 30/09/2016		Charge for period to 30/09/2015		Outstanding at year end 30/09/2016			Outstanding at year end 31/03/2016
			£		£		£			£
A Carragher	£20,000		10,000		-			5,000		-
J Webster	£20,000		10,000		-			-		-
			20,000		-			5,000		-

The related parties' interests in the share capital of the Company are as follows:

Name	Holding at 30 September 2015	Additional shareholdings in period	Holding at 30 September 2016	Percentage of enlarged share capital
Abinvest Corporation	500,000	-	500,000	6.34%
N Johnson	400,000	-	400,000	5.08%
N Birrell	400,000	-	400,000	5.08%
J Ryan	400,000	-	400,000	5.08%
Richard Lockwood	383,550	-	383,550	4.87%
J Cochrane	315,000	-	315,000	4.00%
Arlington Group Asset  Management Limited	250,000	45,000	295,000	3.28%
Charles Cannon-Brookes	158,517	-	158,517	2.01%
Andrew Carragher	150,000	-	150,000	1.90%
David Campbell	106,000	-	106,000	1.35%
Andrew Chadwick-Jones	106,000	-	106,000	1.35%

Charles Cannon-Brookes is a Director and shareholder of Arlington Group Asset Management Limited which owns 295,000 Ordinary Shares and is therefore interested in 453,517 Ordinary Shares representing 5.76 per cent of the total voting rights.

Neil Johnson is a Director of Abinvest Corporation and Abingdon Capital Corporation. Abinvest Corporation is a wholly owned subsidiary of Abingdon Capital Corporation. He owns 500,000 Ordinary Shares through Abinvest Corporation and 10,000 Ordinary Shares through RBK&C Trust and therefore has an overall interest in the Ordinary Shares of the Company of 910,000 Ordinary Shares representing 11.55 per cent of the total voting rights.

Justin Cochrane, a current member of the Company's Healthcare Investment Committee,  joined Abingdon Capital Corporation ("Abingdon") as Executive Vice President, Corporate Development on a full time basis. On 23 October 2015, the Board approved the issue of 250,000 new Ordinary Shares of 60 pence each in the Company to Mr Cochrane as a signing bonus, further cementing his alignment with shareholders. Mr Cochrane overall interest in the Ordinary Shares of the Company is 315,000 Ordinary Shares representing 4.00 per cent of the total voting rights.

As detailed in note 7 the Company has adopted a new share option scheme ("the Scheme") to incentivise Directors, staff and certain key advisers and consultants to deliver long-term value creation for shareholders. Awards have been approved for the following individuals, as follows:

Name	Position	Number of options awarded
Nigel Birrell	Director	85,000
Charles Cannon-Brookes	Director	85,000
Neil Johnson	Director	85,000
James Ryan	Director	85,000
Directors total		340,000
Consultants and advisors		420,000
Total		760,000

The options have an exercise price of 75 pence and expire five years after the date of issuance.

Support Service Agreements with Abingdon Capital Corporation ("Abingdon") and Arlington Group Asset Management Limited ("Arlington") were signed on 16 June 2015. The services to be provided by both Abingdon and Arlington include global deal origination, vertical partner relationships and on-going investment management, including preparation of investment reports, performance data and compliance with the Company's investing policy.

Abingdon is entitled to an annual service fee of £280,000 per annum and Arlington is entitled to an annual service fee of £95,000 per annum. In addition to the Service Fee, Abingdon shall have the right from time to time to be issued and allotted up to 1,500,000 ordinary shares of no par value in the capital of the Company following the conditions noted in section 8 of the Support Service Agreement.

The Directors are not aware of any ultimate controlling party.

11.  CONTINGENT LIABILITIES

At 30 September 2016 there were no contingent liabilities (2015: £nil).

 

END

 

 

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