Half Yearly Report

RNS Number : 9522C

Kennedy Ventures PLC

24 March 2014

 

KENNEDY VENTURES PLC

Interim statement for the 6 months ended 31 December 2013

Chairman's Statement

As shareholders will recall, I commented in my Chairman's Statement in relation to the accounts for the year ended 30 June 2013, the Company needed to be refinanced in order to give it the resources needed to act effectively and attract a worthwhile transaction. The limited scale of the rescue refinancing and the costs incurred then and subsequently in clearing away the problems of the past left it frankly sub-scale as an AIM investing company and it was to a large extent dependent on a term loan for its financial viability, matters which we now have under active review.

During the half-year now under review, Kennedy's costs were materially reduced compared to those incurred in the previous two half-year periods but remained too high for a company of its size. Costs in the current trading period should be materially lower.

Peter Redmond

Chairman

21 March 2014

FOR FURTHER INFORMATION, PLEASE CONTACT:

Kennedy Ventures plc
Peter Redmond, Chairman	[phone]
Cenkos Securities plc
Alan Stewart        Derrick Lee	[phone]
Peterhouse Corporate Finance
John Levinson	[phone]

KENNEDY VENTURES PLC
UNAUDITED INCOME STATEMENT
for the period ended 31 December 2013
		Six months ended		Six months ended		Year ended
	Note	31 December 2013		31 December 2012		30 June 2013
		£'000		£'000		£'000
Continuing Operations Loss on disposal of investments		-		-		(6)
Administrative expenses		(60)		(102)		(133)
OPERATING LOSS		(60)		(102)		(139)
Financial income		-		-		-
LOSS BEFORE TAX		(60)		(102)		(139)
Income tax	3	-		-		-
LOSS FOR THE FINANCIAL PERIOD		(60)		(102)		(139)
Basic loss per ordinary share	4	(0.22)p		(0.38)p		( 0.51)p
Diluted loss per ordinary share	4	(0.22)p		(0.37)p		( 0.51)p
KENNEDY VENTURES PLC
UNAUDITED STATEMENT OF CHANGES IN EQUITY
for the period ended 31 December 2013
		Six months ended		Six months ended		Year ended
		31 December 2013		31 December 2012		30 June 2013
		£'000		£'000		£'000
At beginning of period		99		238		238
Loss for the financial period		(60)		(102)		(139)
AT END OF PERIOD		39		136		99
Equity comprises share capital, share premium, capital redemption reserve and retained profit.

KENNEDY VENTURES PLC
UNAUDITED BALANCE SHEET
as at 31 December 2013
	Note	31 December 2013		31 December 2012		30 June 2013
		£'000		£'000		£'000
NON CURRENT ASSETS
Available for sale Investments		55		55		77
CURRENT ASSETS
Trade and other receivables		9		32		25
Cash and cash equivalents		203		134		206
		212		166		231
TOTAL ASSETS		267		221		308
CURRENT LIABILITIES
Trade and other payables		(78)		(85)		(59)
		(78)		(85)		(59)
NON CURRENT LIABILITIES
Secured loan notes	5	(150)		-		(150)
TOTAL LIABILITIES		(228)		(85)		(209)
NET ASSETS		39		136		99
EQUITY
Share capital	8	271		271		271
Share premium account		7,571		7,571		7,571
Capital redemption reserve		2,077		2,077		2,077
Retained earnings		(9,880)		(9,783)		(9,820)
TOTAL EQUITY		39		136		99

KENNEDY VENTURES PLC
UNAUDITED CASH FLOW STATEMENT
for the period ended 31 December 2013
		Six months ended		Six months ended		Year  ended
	Note	31 December 2013		31 December 2012		30 June 2013
		£'000		£'000		£'000
CASH FLOW FROM OPERATING ACTIVITIES
Net cash used in operating activities	6	(25)		(225)		(297)
NET CASH USED IN OPERATING ACTIVITIES		(25)		(225)		(297)
INVESTING ACTIVITIES
Purchase of available for sale investments		-		(55)		(175)
Proceeds from disposal of available for sale investments		22				114
NET CASH FROM / (USED IN) INVESTING ACTIVITIES		22		(55)		(61)
FINANCING ACTIVITIES
Net proceeds from loan note issue		-		-		150
NET CASH FROM FINANCING ACTIVITIES		-		-		150
NET DECREASE  IN CASH		(3)		(280)		(208)
CASH AT THE BEGINNING OF PERIOD		206		414		414
CASH AT THE END OF THE PERIOD		203		134		206

KENNEDY VENTURES PLC
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
for the period ended 31 December 2013
1	GENERAL INFORMATION AND ACCOUNTING POLICIES
	These interim consolidated financial statements are for the six months ended 31 December 2013. The interim financial report, which has not been audited or reviewed, has been prepared in accordance with International Financial Reporting Standards (IFRS) adopted for use in the European Union.
	The information for the period ended 30 June 2013 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors reported on those accounts: their report  was unqualified but contained the following words representing an emphasis of matter: "Emphasis of Matter - Going Concern 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. The conditions explained in note 2 to the financial statements indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Company were unable to continue as a going concern."
	The annual financial statements are prepared in accordance with applicable IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting", as adopted by the European Union.
	The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest audited financial statements.
	Going concern
	The Directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
2	BUSINESS, GEOGRAPHICAL AND SEGMENTAL REPORTING
	The Group's operations were only in the United Kingdom and relate solely to the Company's operations as an investing company seeking investments in businesses including those with the potential to be provided with management services by the Company.
3	TAX
	Corporation tax charge for the six month period has been estimated at £nil (six months ended 31 December 2012 and year ended 30 June 2013: £nil). No deferred tax asset has been recognised in relation to the losses in the period.

KENNEDY VENTURES PLC
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
For the period ended 31 December 2013
4	EARNINGS PER ORDINARY SHARE
	The calculation of basic and diluted loss per share is based on the following data:
					Six months ended		Six months ended		Year ended
					31 December 2013		31 December 2012		30 June 2013
					£'000		£'000		£'000
	Loss for the financial period				(60)		(102)		(139)
	Number of shares
	Weighted average number of ordinary shares for the purposes of basic earnings per share				27,098,000		27,098,000		27,098,000
	Potentially dilutive ordinary shares				-		420,645		290,067
	Weighted average number of shares for the purposes of diluted earnings per share				27,098,000		27,518,645		27,388,067
	Basic (loss) per ordinary share (pence)				(0.22)		(0.38)		(0.51)
	Diluted (loss) per ordinary share (pence)				(0.22)		(0.37)		(0.51)
5	BORROWINGS
					Six months ended		Six months ended		Year ended
					31 December 2013		31 December 2012		30 June 2013
					£'000		£'000		£'000
	Secured loan notes				150		-		150
	On 10th May 2013 the Company issued £150,000 secured loan notes repayable on 31 October 2014, on which there is a facility fee at the rate of £2,000 per quarter, payable on redemption.

KENNEDY VENTURES PLC
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
For the period ended 31 December 2013
6	NOTES TO THE CASH FLOW STATEMENT
					Six months ended		Six months ended		Year ended
					31 December 2013		31 December 2012		30 June 2013
					£'000		£'000		£'000
	Operating loss				(60)		(102)		(139)
	Loss on disposal of investments				-		-		6
	Operating cash flows before movement in working capital				(60)		(102)		(133)
	Decrease in receivables				16		2		9
	(Decrease) / increase in payables				19		(125)		(173)
	Net cash flow from operating activities				(25)		(225)		(297)
7	DIVIDEND
	No dividend is proposed in respect of the period to 31 December 2013 (period to 31 December 2012 and year to 31 December 2012: £nil).
8	SHARE CAPITAL
					31 December 2013		30 December 2012		30 June 2013
					£'000		£'000		£'000
	Issued and fully paid
	27,098,000 ordinary shares of 1p each (31 December 2012 and 30 June 2013: 27,098,000 ordinary shares of 1p each)				271		271		271
	Note
	Following the change in the Company's Articles of Association approved by members in May 2012, the Company no longer has an authorised share capital.
	On 25 May 2012 and in association with the CVA and Placing, the Company granted a warrant to subscribe shares representing 3% of the Company's issued ordinary share capital from time to time exercisable at 2 pence per share at any time up to 20 March 2015.  Subsequently, it has been agreed with the holders that the warrant will be in respect of  a fixed number of shares, being 1,142,940  ordinary shares
9	RELATED PARTY TRANSACTIONS
	Apart from the remuneration of the Directors, who are key management personnel of the Group, there have been no other material transactions with the Board.

 

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