Final Results for the year ended 30 June 2015

22 December 2015

Concha (AIM: CHA), the AIM quoted investment company focused on investing in media, communications and technology companies, announces its audited final results for the year ended 30 June 2015.

A copy of the report and accounts for the year ended 30 June 2015 will be posted to shareholders today.

 

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Enquiries:

Concha plc
Chris Akers, Executive Chairman
chris.akers@srgplc.com
   

PARK Advisory Partners Limited (Nominated Advisor)
Sean Wyndham-Quin / Mark Brady

Tel: 0203 368 3550
   
Buchanan (Financial PR)
Mark Edwards
Tel: 0207 466 5000

CHAIRMAN’S STATEMENT

Introduction

As many of you are aware, whilst the Board is disappointed that it has not added to its investment portfolio during the year, it has been able to further strengthen its balance sheet via the issue of 100 million new shares for a cash consideration of £4 million. The Board has also concluded a settlement in connection with Concha’s former legal advisors in respect of the losses suffered as a result of their failure to register a valid security interest in the assets of one of the Company’s former investee companies.  The consequence of these events is that the Company is well placed to make new investments in line with its investment strategy.

Terminated investment talks

As announced on 17 December 2015, the Board had taken the decision to terminate lengthy negotiations with a specific global opportunity within its investment scope.  Whilst the Board appreciates the significant time that has elapsed since it first announced that it had engaged in discussions with the identified target, your directors were keen to monitor its development before formalising any commitment. Having given much consideration to the complexity of the proposed transaction and to the current status of its offering, the Board felt it in the best interests of shareholders to withdraw from such discussions. Whist the time and effort spent on this identified opportunity has been considerable the Company has not expended significant cash resources during the process and as such its cash resources have been preserved. 

The Works

The Company’s 30% stake in The Works, The Complete Design Facility Limited (“Works”) continues to represent the Company’s only investee company.  During the course of the last twelve months that business has sought to extend its reach via the formation of a number of strategic partnerships with established media agencies most notably in the US, Brazil and the Middle East. By leveraging Works’ offerings via an already established digital agency network, Works will be able to quickly establish a presence in these new and exciting markets. Whilst the business has invested in its strategy of developing a more extensive geographic reach, it has once again delivered strong double-digit percentage EBITDA growth in the year to 30 September 2015.

Equity Fund Raising

In order to further strengthen its balance sheet, the Company raised £4 million in October 2014 by way of a subscription for 100 million new shares at 4.0p per share and also a further £0.5 million via the exercise of warrants during the course of the year. These subscriptions contributed to the Company’s net cash position at financial year end of £5.5 million.

Board Changes

In March 2014, the board identified a strategic opportunity to expand its portfolio of investments within the mobile, internet, sports, social media, digital and technology space. During this period it has sought to strengthen its board via the appointment of new directors who bring the appropriate commercial and corporate experience required to support its strategic development. In September 2014, Peter Read was appointed to the Board, an individual who over the course of the last twelve months has made a significant contribution to the leadership and direction of negotiations with potential investee companies. In June of this year, Gordon Watson, Concha’s Asian based non-executive director stepped down from Concha’s Board to join a target investee company.  We believe that these changes, coupled with the recent employment of a senior corporate finance executive provide Concha with appropriate skills for its future growth.

Future

With an experienced and capable team now in place and greater financial resources at its disposal, your Board is committed to ensuring the enhancement of long-term shareholder value via a robust investment process and the progression of opportunities identified over the course of recent months.

I would again like to close by thanking our shareholders and advisers who have supported the Company during the past financial year.

 

 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2015

 
    Note 2015 2014
      £000’s £000’s
         
Revenue   1 15 14
      ----------------- -------------
GROSS PROFIT     15 14
         
General and administrative expenses     (755) (947)
      ----------------- -------------
LOSS FROM OPERATIONS BEFORE        
EXCEPTIONAL ITEMS   2 (740) (933)
         
Exceptional items   3 108 (255)
      ----------------- ------------
LOSS FROM OPERATIONS     (632) (1,188)
         
Investment income   5 4 -
         
      ----------------- ------------
LOSS BEFORE TAX     (628) (1,188)
         
Tax 6 - -
      ---------------- -------------
RETAINED LOSS AFTER TAX FOR THE YEAR   (628) (1,188)
    ======== ======
       
RETAINED LOSS ATTRIBUTABLE TO        
Owners of the company     (628) (1,188)
    ------------- ------------
LOSS FOR THE YEAR  

(628)

(1,188)

    ====== ======
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO:        
Owners of the company     (628) (1,188)
    ------------- --------------
TOTAL COMPREHENSIVE LOSS FOR THE YEAR  

(628)

(1,188)

    ====== =======
 

 

Loss per share

       
Basic and diluted   8 - -
      ====== =======     

STATEMENT OF FINANCIAL POSITION
AT 30 JUNE 2015

    2015 2014
  Notes £000’s £000’s
ASSETS      
       
Non-current assets      
Investments 9 500 500
    --------------- -------------
    500 500
    --------------- -------------
       
CURRENT ASSETS      
Trade and other receivables 10 254 159
Cash and cash equivalents   5,547 1,804
    --------------- -------------
    5,801 1,963
    --------------- -------------
       
TOTAL ASSETS   6,301 2,463
    ====== ======
EQUITY AND LIABILTIES      
       
EQUITY      
Share capital 12 1,478 1,323
Deferred share capital 12 1,795 1,795
Share premium reserve   21,043 16,831
Warrant reserve   314 232
Retained loss   (18,383) (17,755)
    --------------- ---------------
TOTAL EQUITY   6,247 2,426
    --------------- ---------------
       
CURRENT LIABILITIES      
Trade and other payables 11 54 37
    --------------- ---------------
TOTAL EQUITY AND LIABILITIES   6,301 2,463
    ====== ======
       

 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEARS ENDED 30 JUNE 2014 AND 2015

    Deferred Share      
  Share Share Premium Warrant Retained  
  Capital Capital Account Reserve Loss Total
  £000’s £000’s £000’s £000’s £000’s £000’s
 

 
           
Balance at 1 July 2013 595 1,795 14,413 131 (16,786) 148
Loss for the year - - - - (1,188) (1,188)
  ---------- ------------- --------- ------------ -------------- ------------
Total comprehensive loss for 2014  

-

 

-

 

-

 

-

 

(1,188)

 

(1,188)

             
Share capital issued 728 - 2,418 - - 3,146
Warrants–charge for year - - - 320 - 320
              - exercised - - - (219) 219 -
  ---------- ------------- --------- ------------ -------------- ------------
Balance at 30 June 2014 1,323 1,795 16,831 232 (17,755) 2,426
  ===== ====== ===== ====== ======= ======

 

    Deferred Share      
  Share Share Premium Warrant Retained  
  Capital Capital Account Reserve Loss Total
  £000’s £000’s £000’s £000’s £000’s £000’s
 

 
           
Balance at 1 July 2014 1,323 1,795 16,831 232 (17,755) 2,426
Loss for the year - - - - (628) (628)
  ---------- ---------- ------------- ------------ -------------- ------------
Total comprehensive loss for 2015  

-

 

-

 

-

 

-

 

(628)

 

(628)

Share capital issued 155 - 4,212 - - 4,367
Warrants - charge for year - - - 82 - 82
  ---------- ---------- ------------- ------------ -------------- ------------
Balance at 30 June 2015 1,478 1,795 21,043 314 (18,383) 6,247
  ===== ===== ====== ====== ======= ======

 

CASH FLOW STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015

  2015 2014
  £000’s £000’s
     
Loss for the year (628) (1,188)
Loss on disposal of investments - (6)
Share based payments 82 320
Exceptional items - 236
  ----------------- -----------------
Operating cash flows before movements in    
working capital (546) (632)
     
Increase in receivables (95) (41)
Increase/(decrease) in payables 17 (24)
  ----------------- -----------------
  (78) (65)
     
Investment income 4 -
  ----------------- -----------------
Net cash flow from operating activities (620) (697)
  ----------------- -----------------
Cash flow from investing activities    
Purchase of investments - (487)
  ----------------- -----------------
Net cash flow from investing activities - (487)
  ----------------- -----------------
Cash flow from financing activities    
Net proceeds from issue of share capital 4,363 3,146
Loans advanced - (242)
  ------------------ ------------------
Net cash inflow from financing activities 4,363 2,904
  ------------------ ------------------
Net cash inflow for the year 3,743 1,720
  ------------------ ------------------
     
Cash and cash equivalents at start of year 1,804 84
  ------------------ ------------------
Cash and cash equivalents at the end of the year 5,547 1,804
  ======== ========
     
     
     

 

Notes

The notes to the consolidated financial statements are available in the PDF download

 

 

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