REG - Adams PLC - Half-year Report <Origin Href="QuoteRef">ADAA.L</Origin>

AdamsAnnouncement

29/11/2016 07:17

RNS Number : 3517Q
Adams PLC
29 November 2016
Adams PLC
("Adams" or the "Company")
Interim Results for the Six Months ended 30 September 2016
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 2016.
Chairman's statement
Adams generated a gross investment return of 127,000 in the six months ended 30 September 2016, which resulted in profit after tax of 24,000 after deduction of overheads and other costs. This compares to an investment return of 24,000 in the half year to 30 September 2015 and with a corresponding loss after tax of 95,000. 
During the six months ended 30 September 2016, the Company spent 110,000 on a new quoted investment which was subsequently exchanged for shares and loan notes in a private company under the terms of a recommended acquisition offer. In addition, the Company generated cash proceeds of 65,000 from the partial realisation of an existing investment.
Adams currently holds 5 investments of which are 4 are quoted and 1 is unquoted, and for which the total investment carrying value at 30 September 2016 was 1,037,000 (31 March 2016: 871,000 represented by 4 quoted holdings). 
The Company held cash balances of 96,000 at 30 September 2016, compared to cash balances of 258,000 at the previous 31 March 2016 year end. Net assets attributable to holders of Adams at 30 September 2016 were 1,124,000 versus 1,100,000 at 31 March 2016. 
Business model
Adams is an investment company focused on targeting businesses in the technology and life sciences sectors which present opportunities for value creation, but will also consider investments in other sectors where appropriate.
Investments
The 4 listed investments currently held by the Company comprise GVC Holdings Plc, Oxford Pharmascience Group Plc, Imagination Technologies Group Plc and Communisis Plc. In addition, the Company holds shares and loan notes in unquoted Sherwood Holdings Limited, which completed the acquisition of Source Bioscience Plc as its principal asset in September 2016.
GVC Holdings Plc is a global online gaming and sports betting company with a solid on-line platform technology from which it operates some of the leading brands in the gaming sector including bwin, sporting bet, partypoker and foxy bingo.
Oxford Pharmascience Group Plc is a drug development company that re-develops approved drugs to make them better, safer and easier to take and it has a current focus to develop improved formulations of non-steroidal anti-inflammatory drugs (NSAIDs) and statins for global markets.
Imagination Technologies Group Plc is a global technology leader whose products include the key multimedia, communications and general purpose processors needed to power all mobile, consumer, automotive, enterprise and embedded electronics.
Communisis Plc is a leading provider of outsourced digital asset management and personalised customer communication services.
Source Bioscience Plc is an international provider of state of the art laboratory services and products and has an expertise in clinical diagnostics, genomics, proteomics, drug discovery & development research and analytical testing services.
Outlook
Financial markets were in recovery mode during the six-month reporting period to 30 September 2016, following the sharp falls in the early part of the year consequent to disappointing manufacturing data from China which also adversely impacted oil and commodity prices. The potential for volatility in capital markets remains given the continued economic uncertainty in the Eurozone post the Brexit vote and given that Donald Trump's victory in the US presidential elections will have implications for the whole global economy.
The Board will, therefore, continue to maintain a highly selective investment approach in these uncertain and challenging markets.
Michael Bretherton
Chairman
29 November 2016
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014
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 6 MONTH PERIOD TO 30 SEPTEMBER 2016


6 months ended
30 Sep 2016
Year ended 31 Mar 2016
6 months ended
30 Sep 2015

Note
(Unaudited)
(Audited)
(Unaudited)


'000
'000
'000










Gain on investments
5
121
30
24
Dividend income
5
6
-
-
Gross investment return

127
30
24





Expenses









Net foreign exchange loss

(15)
(45)
(3)
Administrative expenses 

(88)
(219)
(116)





Operating profit/(loss)

24
(234)
(95)





Profit/(loss) on ordinary activities before taxation 

24
(234)
(95)





Tax on profit/(loss) on ordinary activities 

-
-
-





Profit/(loss) for the period 

24
(234)
(95)





Total comprehensive income/(loss) for the period
24
(234)
(95)










Earnings/(loss) per ordinary share




Basic and diluted
10
0.06c
(0.72)c
(0.40)c
There are no other items of comprehensive income/(loss).
STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2016



As at 
30 Sep 2016
As at 
31 Mar 2016
As at 
30 Sep 2015



(Unaudited)
(Audited)
(Unaudited)

Note 

'000
'000
'000
Assets 





Non-current assets 





Investments
6

1,037
871
247






Current assets 





Trade and other receivables 
7

8
3
5
Cash and cash equivalents 


96
258
1,012



104
261
1,017






Total assets


1,141
1,132
1,264






Liabilities





Current liabilities





Trade and other payables 
8

(17)
(32)
(25)
Total liabilities


(17)
(32)
(25)






Net current assets


87
229
992






Net assets


1,124
1,100
1,239






Equity 





Called up share capital 
9

413
413
413
Share premium 
9

1,116
1,116
1,116
Retained earnings deficit


(405)
(429)
(290)
Total shareholder equity


1,124
1,100
1,239






STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTH PERIOD TO 30 SEPTEMBER 2016


Share 
Capital 
Share
Premium
Retained
Earnings Deficit
Total 




'000
'000
'000
'000






At 1 April 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






Total comprehensive loss for period

-
-
(139)
(139)






At 31 March 2016

413
1,116
(429)
1,100






Total comprehensive gain for period

-
-
24
24






At 30 September 2016

413
1,116
(405)
1,124
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 earnings deficit represents the cumulative losses of the Company attributable to equity shareholders. 
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 SEPTEMBER 2016

6 months 
ended 
30 Sep 2016
Year 
ended 
31 Mar 2016
6 months ended 
30 Sep 2015

(Unaudited)
(Audited)
(Unaudited)

'000
'000
'000




Profit/(loss) for the period
24
(234)
(95)
Unrealised (gain)/loss on revaluation of investments
(107)
32
(4)
Realised gain on disposal of investments
(14)
(62)
(20)
(Increase)/decrease in trade and other receivables
(5)
7
5
(Decrease) in trade and other payables
(15)
(60)
(67)




Net cash outflows from operating activities 
(117)
(317)
(181)




Cash flows from investing activities



Proceeds from sales of investments
65
357
193
Purchase of investments
(110)
(1,024)
(242)




Net cash used in investing activities 
(45)
(667)
(49)




Cash flows from financing activities







Issue of ordinary share capital
-
182
182
Issue of premium share capital
-
902
902




Net cash generated from financing activities
-
1,084
1,084




Net (decrease)/increase in cash and cash equivalents 
(162)
100
854




Cash and cash equivalents at beginning of period 
258
158
158




Cash and cash equivalents at end of period 
96
258
1,012




NOTES TO THE STATEMENT OF FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD TO 30 SEPTEMBER 2016
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. 
2 Basis of preparation 
The interim financial statements of Adams Plc are unaudited condensed financial statements for the six months ended 30 September 2016. These include unaudited comparatives for the six months ended 30 September 2015 together with audited comparatives for the year ended 31 March 2016.
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 2016. 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 EU 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 2016 which received an unqualified audit opinion. A copy of these financial statements are available on the website at www.adamsplc.co.uk
5 Gross investment return
The principal sources of revenue for the Company in the period to 30 September 2016 were as follows:

6 months ended 30 Sep 2016
Year ended 31 Mar 2016 
6 months ended 30 Sep 2015 

'000
'000
'000




Unrealised gain/(loss) on investments
107
(32)
4
Realised gain on investments
14
62
20
Total gain on investments
121
30
24
Dividend income
6
-
-
Gross investment return
127
30
24
6 Investments
An analysis of movements in the value of the Company's investments is as follows: 

Quoted Equity Shares
Unquoted Equity Shares
Unquoted Loan Notes
Total

'000
'000
'000
'000
Fair value at 31 March 2015
174
-
-
174
Additions at cost
242
-
-
242
Disposals
(173)
-
-
(173)
Unrealised gain on the revaluation of investments
4
-
-
4
Fair value at 30 September 2015
247
-
-
247
Additions at cost
782
-
-
782
Disposals
(122)
-
-
(122)
Unrealised loss on the revaluation of investments
(36)
-
-
(36)
Fair value at 31 March 2016
871
-
-
871
Additions at cost
110
-
-
110
Disposals
(51)
-
-
(51)
Transfer exchange*
(103)
6
97
-
Unrealised gain on the revaluation of investments
107
-
-
107
Fair value at 30 September 2016
934
6
97
1,037
 
*A quoted investment was exchanged for shares and loan notes in a private company under the terms of a recommended acquisition offer. The unquoted loan notes carry an interest coupon of 10 per cent per annum payable annually in December. The loan notes are repayable in full at their principal amount on 31 December 2023.
7 Trade and other receivables

As at 
30 Sep 2016
As at 
31 Mar 2016
As at 
30 Sep 2015

'000
'000
'000




Prepayments and accrued income
8
3
5

8
3
5



8 Trade and other payables

As at 
30 Sep 2016
As at 
31 Mar 2016
As at
30 Sep 2015

'000
'000
'000




Trade payables
12
14
12
Accruals
5
18
13

17
32
25
Accruals principally comprise amounts outstanding for ongoing expenses. The carrying amount of trade payables approximates to their fair value.
9 Share capital and share premium
Ordinary shares of 0.01 
Number of shares issued and fully paid up
Share 
capital 
'000
Share
premium
'000




At 1 April 2015
23,094,798
231
214




Issue of shares
6,928,406
69
81




At 30 September 2015, 31 March 2016 and 30 September 2016
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 Euro cents) each.
The authorised Ordinary Share capital of the Company at 30 September 2016 is 350,000,000 Ordinary Shares of 0.01 each (31 March 2016 and 30 September 2015: 350,000,000 Ordinary Shares of 0.01 each).
10 Earnings / (loss) per share
The basic earnings / (loss) per share is calculated by dividing the profit / (loss) after tax attributable to equity shareholders by the weighted average number of ordinary shares in issue during the period:

6 months 
ended 
30 Sep 2016
Year 
ended 
31 Mar 2016
6 months 
ended 
30 Sep 2015




Profit/(loss) after tax attributable to equity holders of the Company ('000)
24
(234)
(95)




Weighted average number of ordinary shares
41,276,616
32,559,306
23,889,632




Basic and diluted earnings/(loss) per share
0.06c
(0.72)c
(0.40)c
There were no potentially dilutive shares in issue as at 30 September 2016, 31 March 2016 and 30 September 2015.

This information is provided by RNS
The company news service from the London Stock Exchange
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