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ADC Zeros 2010 plc (ADC2)


Friday 03 August, 2007

ADC Zeros 2010 plc

Final Results

ADC Zeros 2010 plc
03 August 2007



For the year ended 31 May 2007

The year to May 31, 2007 has been challenging, given the loss of the parent
company's largest investment, Transrent Holdings. This loss precipitated a
review of all available options, which was carried out in consultation with the
major shareholders. This review was completed in June and proposals were
subsequently sent to Shareholders with a view to changing the investment
objective and policy of the parent company, implementing capital reductions, the
return of capital to Shareholders through a combination of a capital return
scheme and buy back programme, amendments to the articles of association of ADC
Zeros 2010 PLC and ADC Zeros 2012 PLC and proposed changes to the management fee
arrangements. I am pleased to advise that at an Extraordinary General Meeting ('
EGM') held on 3 August 2007, these proposals were approved.

Throughout the period, satisfactory cover has been maintained and your Board
remains confident that the investment objective of achieving a final entitlement
of 135.6 pence per ZDP share will be fulfilled.

                                                                                         31 May 2007
Total assets less current liabilities (Group)                                                  31.03
Less prior ranking liabilities:
ZDP 2010 shares                                                                               (9.87)
ZDP 2012 shares                                                                               (9.87)
Cover                                                                                          11.29

John Milligan


 3 August 2007

Income Statement (unaudited)

                                                         Year ended    Period from 19 May 2005
                                                        31 May 2007             to 31 May 2006
                                                              £'000                      £'000
Interest income                                                  14                         21
Total revenue                                                    14                         21
Loan interest                                                   602                        522
Gains/(losses) on held-at-fair-value investments                  -                          -
                                                                616                        543
Management fees                                                   -                          -
Other operating expenses                                          -                          -
Profit before finance costs and tax                             616                        543
Finance costs
Zero dividend preference shares                               (602)                      (522)
Profit before taxation                                           14                         21
Taxation                                                       (46)                        (4)
Profit/(loss) for the year                                     (32)                         17
Earnings per Ordinary share - basic (pence)                  (64.0)                       34.0

All profits are attributable to the equity holders of ADC Zeros 2010 PLC.

 Balance Sheet (unaudited)

                                                                  At               At

                                                         31 May 2007      31 May 2006
                                                               £'000            £'000

Non-current assets
Held-at-fair-value investments                                     -              175

Current assets
Cash and cash equivalents                                        260               52
Trade and other receivables                                    9,874            9,291
                                                              10,134            9,343

Current liabilities
Other payables                                                 (225)            (179)
Net current assets                                             9,909            9,164
Total assets less current liabilities                          9,909            9,339

Non-current liabilities
Zero dividend preference shares                              (9,874)          (9,272)
Total net assets                                                  35               67

Called up Ordinary share capital                                  50               50
Revenue reserve                                                 (15)               17
Total shareholders' funds                                         35               67

Equity shareholders' funds                                        35               67

Net asset value per Ordinary share - basic (pence)             70.00           134.00

Cash Flow Statement (unaudited)

                                                                   Year ended     Period from  19 May 2005
                                                                  31 May 2007               to 31 May 2006
                                                                        £'000                        £'000
Operating activities
Profit before tax                                                          14                           21
ZDP shares finance cost                                                   602                          522
Sales of investments held-at-fair-value through profit and                175                            -
Increase in other receivables                                           (583)                        (541)
Net cash inflow from operating activities                                 208                            2

Financing activities
Equity shares issued                                                        -                           50
Zero dividend preference shares issued                                      -                        2,147
Payment to parent company                                                   -                      (2,147)
Net cash inflow from financing activities                                   -                           50

Net increase in cash and cash equivalents                                 208                           52
Cash and cash equivalents at start of period                               52                            -
Cash and cash equivalents at end of period                                260                           52

Notes to the Financial Statements (unaudited)

1.      Principal activities

The principal activity of the Company is that of an investment company within
the meaning of Section 266 of the Companies Act 1985.

2.      Accounting policies

The financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS). The Company financial statements have been
prepared in accordance with IFRS as adopted by the European Union and as applied
in accordance with the provisions of the Companies Act 1985. The principal
accounting policies adopted by the Company are set out below.

The announcement is prepared on the basis of the accounting policies as stated
in the previous year's financial statements.

Whilst the financial information included in this preliminary announcement has
been computed in accordance with International Financial Reporting Standards
(IFRSs), this announcement does not itself contain sufficient information to
comply with IFRSs. The Company expects to publish full financial statements that
comply with IFRSs.

(a)     Basis of accounting

The accounting policies which follow set out those policies which apply in
preparing the financial statements for the year ended 31 May 2007.

The financial statements are prepared under the historical cost convention,
except for the measurement at fair value of investments.

The financial statements are presented in Sterling, which is the currency of the
primary environment in which it operates. All values are rounded to the nearest
thousand pounds (£'000) except when otherwise indicated.

(b)     Valuation of Investments

Investments are held at cost through the Income Statement.

For financial assets acquired, the cost is the fair value of the consideration.
Subsequent to initial recognition, all listed investments are measured at their
quoted bid prices without deduction for the estimated future selling costs.

Unlisted investments are valued by the Directors at fair value having regard to
the International Private Equity and Venture Capital Valuation Guidelines. They
are valued at cost unless subsequent financings or other circumstances indicate
a different valuation is appropriate. When a valuation is undertaken
consideration is given to the most recent information available, including the
latest trading figures, performance against forecast, management's view of
prospects and the price of any transactions in the security.

Realisable value in the short term could differ materially from the amount which
investments are included in the accounts.

(c)     Movements in fair value

Changes in the fair value of all held-at-fair-value assets are taken to the
Income Statement.

On disposal, realised gains and losses are also recognised in the Income

(d)     Income

Dividends receivable on equity shares are brought into account on the
ex-dividend date. Dividends receivable on equity shares where no ex-dividend
date is quoted are brought into account when the Company's right to receive the
payment is established. Fixed returns on non-equity shares are recognised on a
time apportioned basis so as to reflect the effective yield on shares. Other
returns on non-equity shares are recognised when the right to the return is

The fixed return on a debt security is recognised on a time apportioned basis so
as to reflect the effective yield on the debt security. Where the Company has
elected to receive its dividends in the form of additional shares rather than in
cash, then the amount of cash dividend is recognised as income. Any excess in
value of the shares received over the amounts of the cash is recognised in
capital reserves.

(e)     Expenses and interest payable

All expenses are accounted for on an accruals basis. Remuneration of the
Company's auditors is borne by the Company's parent.

(f)      Taxation

The charge for taxation is based on the taxable profits for the period. Deferred
taxation is accounted for using the balance sheet liability method. Deferred tax
liabilities are recognised for all taxable temporary differences. Deferred tax
assets are recognised to the extent it is probable that taxable profits will be
available against which is deductible temporary differences can be utilised.

(g)     Dividends payable

Dividends are recognised from the date on which they are declared ex-dividend.

(h)     Cash and cash equivalents

Cash comprises cash in hand and demand deposits. Cash equivalents are
short-term, highly liquid investments that are readily convertible to known
amounts of cash and that are subject to insignificant risk of changes in value.

(i)       Foreign currency translation

Transactions involving foreign currencies are converted at the rate ruling at
the date of the transaction.

Foreign currency monetary assets and liabilities are translated into Sterling at
the rate ruling on the balance sheet date. Foreign exchange differences arising
on translation are recognised in the Income Statement.

(j)      Zero dividend preference shares

Zero dividend preference shares are treated as a liability of the Company,
calculated on the effective yield basis.

3.  Earnings per Ordinary share and net asset value per share

                                                                      31 May 2007      31 May 2006
Net revenue attributable to Ordinary shareholders                       £(32,000)          £17,000
Equity shareholders funds                                                 £35,000          £67,000
Zeros dividend preference shares                                       £9,874,000       £9,272,000
The number of Ordinary shares in issue at the

end of the period on which the earnings and net asset value
were calculated was:
                                                                           50,000           50,000
The number of Zero dividend preference shares in issue at the
end of the period on which net asset value was calculated was:
                                                                        8,750,000        8,750,000
Revenue earnings per Ordinary share                                      (64.00)p           34.00p
Net asset value per Ordinary share                                         70.00p          134.00p
Net asset value per Zero dividend preference share                        112.85p          105.97p

4.   Annual Report

The financial information set out above does not constitute the Group's
statutory accounts for the years ended 31 May 2007 or 2006. The financial
information for 2006 is derived from the statutory accounts, which have been
delivered to the registrar of Companies. The auditors have reported on the 2006
accounts; their report was unqualified and did not contain a statement under
section 237(2) or (3) of the Companies Act 1985. The statutory accounts for 2007
will be finalised on the basis of the financial information presented by the
Directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the Annual General Meeting. Copies of the
Annual Report will be posted to shareholders in due course and further copies
will be available from the Company's Registered Office, 10 Queen's Terrace,
Aberdeen AB10 1YG.

Aberdeen Asset Management PLC
3 August 2007

                      This information is provided by RNS
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