Half Yearly Report

Adams

27/11/2015 07:00

RNS Number : 1368H

Adams PLC

27 November 2015

Adams PLC

("Adams" or the "Company")

Interim Results for the Six Months ended 30 September 2015

Adams Plc (AIM: ADA), an investing company focusing on the technology and life sciences sectors, is pleased to announce its unaudited interim results for the six months ended 30 September 2015.

Chairman's Statement

I was appointed to the Board as a non-executive director in May of this year and subsequently took over the role of Chairman from Nicholas Nelson on his retirement at the Annual General Meeting of the Company on 11 September 2015. I thank Nicholas for all his work in completing the restructuring process of Adams (formerly Carpathian Plc) in to an investing company. The Company also announced the appointment of Dr Andrew Mitchell as a non-executive director on 6 August 2015.

One of my first priorities on joining the Board was to seek to strengthen the Company's balance sheet by raising additional funds to be used to make investments in accordance with the Company's investing policy and for general working capital purposes. This was achieved by way of a placing of 18,181,818 new ordinary shares of 0.01 each with new and existing investors at a placing price of 4.4p (5.962 cents) per ordinary share to raise 800,000 (1,084,000) for the Company before expenses. The new shares were admitted to trading on AIM on 23 September 2015.

The Company is an investing company focusing on the technology and life sciences sectors and incurred a loss after tax for the six months ended 30 September 2015 of 95,000 compared to a loss of 72,000 in the previous 2014 half year. The reported loss mainly reflects administration expenses of 116,000 less gains amounting to 24,000 on portfolio investments in the six month period.

During the six months to 30 September 2015, the Company invested 242,000 in two AIM listed technology businesses. One is a global online gaming and sports betting company and the other is a leading processor technology company that creates unique, patented semiconductor IP for multimedia and communication applications.

The Company also disposed of the two investments that it held at the 31 March 2015 year end for a total cash sale consideration of 193,000.

As at 30 September 2015, the two new investments had a carrying value of 247,000 (31 March 2015: 174,000 represented by the two quoted holdings that have since been sold).

Subsequent to the 30 September 2015 period end, the Company invested 121,000 in a leading AIM listed provider of outsourced digital asset management and personalised customer communication services.

At 30 September 2015, the Company had net assets of 1,239,000 inclusive of cash balances of 1,012,000 compared with net assets of 250,000 at 31 March 2015 inclusive of cash balances of 158,000. The increase in net assets is attributable to the receipt of 1,084,000 of share issue proceeds less the loss of 95,000 in the period.

Outlook

Equity markets had a difficult six months to the end of September 2015 reflecting a significant slowdown in China's economy, together a myriad of other challenges including the ongoing European debt crisis, conflicts in the Ukraine and the Middle East, uncertainty over the UK referendum on its EU membership and also an expectation that a US interest rate rise is probable later this year.

It remains the Board's intention to acquire additional investments in the technology and biotechnology sectors. However, given the uncertain and challenging markets, the Board will continue to maintain a highly selective investment approach. I am confident that this will enable us to build considerable value for shareholders going forward.

Michael Bretherton

Chairman

27 November 2015

Enquiries:

Adams plc
Mike Bretherton
Tel: +44 1534 719 760
Nomad
Cairn Financial Advisers LLP
Sandy Jamieson, James Caithie
Tel: +44 207 148 7900
Broker
Peterhouse Corporate Finance Limited
Heena Karani
Tel: +44 207 469 3393


STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015

6 months ended
30 September 2015
Year ended 31 March 2015
6 months ended
30 September 2014
Note
(Unaudited)
(Audited)
(Unaudited)
'000
'000
'000
Net change in fair value of investments at fair value through profit or loss
6
24
172
1
Total income
24
172
1
Expenses
Net foreign exchange (loss) /gain
(3)
14
6
Administrative expenses
(116)
(211)
(79)
Operating loss
(95)
(25)
(72)
Loss on ordinary activities before taxation
(95)
(25)
(72)
Tax on loss on ordinary activities
-
-
-
Loss for the period
(95)
(25)
(72)
Basic and diluted loss per share ( cents)
10
(0.4)
(0.1)
(0.4)

Since there is no other comprehensive loss, the loss for the period is the same as the total comprehensive loss for the period attributable to the owners of the Company.

STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2015

As at
30 September 2015
As at
31 March 2015
As at
30 September 2014
(Unaudited)
(Audited)
(Unaudited)
Note
'000
'000
'000
Assets
Non-current assets
Investments
5
247
174
61
Current assets
Trade and other receivables
7
5
10
6
Cash and cash equivalents
5
1,012
158
154
1,017
168
160
Total assets
1,264
342
221
Equity and Liabilities
Called up share capital
9
413
231
231
Share premium
1,116
214
214
Retained earnings
(290)
(195)
(242)
Total equity
1,239
250
203
Current liabilities
Trade and other payables
8
25
92
18
Total current liabilities
25
92
18
Total liabilities
25
92
18
Total equity and liabilities
1,264
342
221

The interim report on was approved and authorised for issue by the Board of Directors on 27 November 2015 and signed on its behalf by:

Michael Bretherton

Chairman

STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015

Share
Share
Retained
Capital
Premium
Losses
Total
'000
'000
'000
'000
At 1 April 2014
162
133
(170)
125
Issue of shares
69
81
-
150
Total comprehensive loss for the period
-
-
(72)
(72)
At 30 September 2014
231
214
(242)
203
Total comprehensive gain for period
-
-
47
47
At 31 March 2015
231
214
(195)
250
Issue of shares
182
902
-
1,084
Total comprehensive loss for period
-
-
(95)
(95)
At 30 September 2015
413
1,116
(290)
1,239

Share capital is the amount subscribed for shares at nominal value.

Share premium represents the excess of the amount subscribed for share capital over the nominal value of these shares net of share issue expenses.

Retained losses represent the cumulative losses of the Company attributable to equity shareholders.

STATEMENT OF CASH FLOWS

FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015

6 months ended
30 September 2015
Year ended
31 March 2015
6 months ended
30 September 2014
(Unaudited)
(Audited)
(Unaudited)
'000
'000
'000
Loss for the period
(95)
(25)
(72)
Adjustment for:
Exclude net changes in fair value of investments
(24)
(172)
(1)
Decrease /(increase) in trade and other receivables
5
(3)
1
(Decrease)/increase in trade and other payables
(67)
79
5
Net cash outflows from operating activities
(181)
(121)
(67)
Cash flows from investing activities
Proceeds from sales of investments
193
79
7
Payments to acquire investments
(242)
(67)
(53)
Net cash (used)/generated in investing activities
(49)
12
(46)
Cash flows from financing activities
Issue of ordinary share capital
182
69
69
Issue of premium share capital
902
81
81
Net cash from financing
1,084
150
150
Net increase in cash and cash equivalents
854
41
37
Cash and cash equivalents at beginning of period
158
117
117
Cash and cash equivalents at end of period
1,012
158
154


NOTES TO THE STATEMENT OF FINANCIAL STATEMENTS

FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015

1 General information

Adams PLC is a company incorporated in the Isle of Man and is listed on the AIM market of the London Stock Exchange. The principal activities of the Company are described in the Chairman's Statement.

2 Basis of preparation

The interim financial statements of Adams Plc are unaudited condensed financial statements for the six months ended 30 September 2015. These include unaudited comparatives for the six months ended 30 September 2014 together with audited comparatives for the year ended 31 March 2015.

These interim condensed consolidated financial statements have been prepared on the basis of the accounting policies expected to apply for the financial year to 31 March 2016 which are based on the recognition and measurement principles of International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). The financial statements have been prepared under the historical cost convention. The Company's presentation and functional currency is Euros.

The interim financial statements do not include all of the information required for full annual financial statements and do not comply with all the disclosures in IAS 34 'Interim Financial Reporting', and should be read in conjunction with the Company's annual financial statements to 31 March 2015. Accordingly, whilst the interim statements have been prepared in accordance with IFRS, they cannot be construed as being in full compliance with IFRS.

The preparation of financial statements in conformity with IFRS as adopted by the European Union requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies.

3 Going concern

Information on the business environment, financial position and the factors underpinning the Company's future prospects and portfolio are included in the Chairman's Statement. The Directors confirm that they are satisfied that the Company has adequate resources to continue in business for the medium term based on the current liquid resources available. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

4 Significant accounting policies

The accounting policies adopted are consistent with those followed in the preparation of the annual financial statements of Adams Plc for the year ended 31 March 2015 which received an unqualified audit opinion. A copy of these financial statements are available on the website at www.adamsplc.co.uk

5 Financial assets at fair value through profit and loss

As at
30 September 2015
As at
31 March 2015
As at
30 September 2014
'000
'000
'000
Equity investments
247
174
61
Cash at bank
1,012
158
154
1,259
332
215

6 Net change in fair value of investments at fair value through profit or loss

As at
30 September 2015
As at
31 March 2015
As at
30 September 2014
'000
'000
'000
Movement in unrealised (losses)/gains on investments
(126)
128
1
Realised gain on investments
150
44
-
24
172
1

7 Trade and other receivables

As at
30 September 2015
As at
31 March 2015
As at
30 September 2014
'000
'000
'000
Prepayments
5
10
6
5
10
6


8 Trade and other payables

As at
30 September 2015
As at
31 March 2015
As at
30 September 2014
'000
'000
'000
Trade payables
12
6
16
Accruals
13
86
2
25
92
18

Accruals principally comprise amounts outstanding for ongoing expenses. The carrying amount of trade payables approximates to its fair value.

9 Share capital and share premium

Number of
shares issued
and fully paid up
Share
capital
'000
Share
premium
'000
Ordinary shares of 0.01
At 1 April 2014
16,166,392
162
133
Issue of shares
6,928,406
69
81
At 30 September 2014
23,094,798
231
214
Issue of shares
-
-
-
At 31 March 2015
23,094,798
231
214
Issue of shares
18,181,818
182
902
At 30 September 2015
41,276,616
413
1,116

On 23 September 2015 the Company issued 18,181,818 new ordinary shares of 0.01 each by way of a placing at 4.4p (5.962 cents) each.

During September 2014, warrant holders exercised warrants and subscribed for 6,928,406 Ordinary Shares of 0.01 each in the Company at an exercise price of 2.165 cents per share. Following these exercises, there are no further warrants outstanding.

The authorised Ordinary Share capital of the Company at 30 September 2015 is 350,000,000 Ordinary Shares of 0.01 each (31 March 2015 and 30 September 2014: 350,000,000 Ordinary Shares of 0.01 each).

10 Loss per share

The basic loss per share is calculated by dividing the loss attributable to equity shareholders by the weighted average number of ordinary shares in issue during the period:

Period ended
30 September 2015
Year ended
31 March 2015
Period ended
30 September 2014
Loss after tax attributable to equity holders of the Company ('000)
(95)
(25)
(72)
Weighted average number of ordinary shares
23,889,632
20,456,223
17,321,370
Basic and diluted loss per share
(0.4)c
(0.1)c
(0.4)c

There were no potentially dilutive shares in issue as at 30 September 2015, 31 March 2015 and 30 September 2014.

This information is provided by RNS

The company news service from the London Stock Exchange

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