Interim Report for the period ended 31 December 2013

31 March 2014

Concha PLC announces its interim results for the six months ended 31 December 2013.

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Aside from costs associated with the operation of a publicly quoted company, operating overheads for the six months were £203,000 and included professional fees associated with the administration of Moshen Limited ("Moshen") and the pursuance of the recovery of amounts advanced to Churchill Media Limited ("CML") following its failure to make repayment under the terms of the loan on 30 September 2013.

In August 2013, the company completed the placing of 182,499,999 ordinary shares raising £638,750 from a combination of new and existing shareholders. This funding was used to complete the acquisition of a 30% equity holding in The Works, The Complete Design Facility Limited, ("Works"). Works is a specialist media design agency focusing on the sports sector, dealing with branding, motion, and events. The stake was bought for cash consideration of £400,000. In October 2013, following the appointment of Administrators to Moshen Limited, a business in which the company held a 40% interest, the Board, together with the management at Works formed a new digital agency which will progress opportunities and will trade under the name of "Works Digital".

In December 2013 the Company placed a further 50,000,000 ordinary shares, with the proceeds of £100,000, being used to fund the company's working capital requirements. At the time of the placing the company issued a put and call option over a further 50,000,000 ordinary shares exercisable on or before the 14 February 2014. On 7 February 2014, the Board received notification of an intention to exercise the option whereby further funds of £100,000 were secured. 

Outlook

Concha's principal investment in Works continues to perform well, now supplemented by Works Digital and the additional digital service offerings it is able to offer to both existing and prospective clients alike. The Board continues to progress its action against its former legal advisors in respect of the failure to register a valid security interest in loan amounts advanced to the former Moshen business and expects to conclude this process before the end of the current financial year. The Board also continues to seek a resolution with respect to the CML loan and will provide a further update when appropriate.

Concha's strategy remains to identify and invest in growth companies in the technology, media and communications sectors. The Board has identified a number of potential acquisition opportunities in these sectors, which it believes offer good opportunities to generate shareholder value. Whilst there can be no guarantee that one or more acquisition opportunities can be concluded successfully, the Board remains confident of creating shareholder value through Concha and looks forward to providing further updates in due course.

 

Concha PLC

18 Buckingham Gate, London, SW1E 6LB

Enquiries:

Concha plc
Chris Akers, Chairman
chris.akers@srgplc.com
   
Strand Hanson Limited (Nominated Adviser)
James Harris
Andrew Emmott
Ritchie Balmer
020 7409 3495

 

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