Interim Report for the six months ended 31 December 2017

21 March 2018

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).

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Introduction

Concha is pleased to present the Company's unaudited half-year financial results for the six months ended 31 December 2017.

On 12 February 2018, we provided an update regarding the recent publication of the judgement relating to the case between certain creditors and the joint administrators of Ve Interactive Limited ("Ve").  We have now had time to fully digest the contents of that document and most particularly the findings and rationale supporting the decision to remove the joint administrators from their position in office. Given the deficiencies of the joint administrators, your Board, with certain other shareholders and creditors, are now considering how best to leverage the judge's conclusions to compensate for the loss of value we have suffered. Given the complexities of the case and the number of interested parties whose opinions will need to be canvassed, it is expected that this process of evaluation will take several months to conclude. Further updates will however be made as and when it is appropriate.

In September 2017, Concha advanced £175,000 by way of a secured convertible loan to The Buyerpool Limited t/a UcaDO, a peer to peer residential sales and lettings platform.  As a "free to use" platform for buyer, seller, landlord and tenant, the management of UcaDO has sought to further develop relationships with new housebuilders, landlords and trusted service providers in the six months since this initial advance.  Discussions with a number of the largest property development companies in the UK are at an advanced stage and, if successful, are expected to provide UcaDO with direct access to a nationwide inventory of new properties. In conjunction with initiatives to secure both breadth and depth of property inventory, the management team has also contracted with a broad array of specialist service providers, each representing a product and/or service in support of real estate transactions. To further strengthen its management capabilities, Chris Philips, current chairman of the property developer London Newcastle, has agreed to join the board of UcaDO in advance of its platform launch later this year. We anticipate that the UcaDO board will be further strengthened by the appointment of non-executive directors with appropriate compliance, IT and sector experience.

We are encouraged by the reaction to the UcaDO offering from both property developers and service providers. Having developed an intuitive peer to peer property listing experience, allowing buyers to connect directly with sellers, rich in property inventory and endorsed by some of the largest residential transaction support providers, we are excited by the rate at which the business is developing and the opportunities for releasing shareholder value this maturity provides.

Having been reclassified as a Rule 15 cash shell in October last year, your Board has sought to explore all opportunities to best preserve its listing on AIM. Given the Board's preference to identify a target for a reverse takeover, we have identified and met with a number of potential candidates well suited to operating within the public markets. Discussions continue to progress, but there can be no guarantee that these discussions will conclude successfully. The London Stock Exchange is expected to suspend trading in the Company's ordinary shares on AIM, pursuant to Rule 15 of the AIM Rules, at 7.30 am on 4 April 2018.  In the event that no reverse takeover is completed in the six months after that date, the London Stock Exchange will cancel the admission of the Company's ordinary shares to trading on AIM.  We will of course update our shareholders as and when it is appropriate.

 

Unaudited Interim Results

The reclassification of Concha as an AIM Rule 15 cash shell post its investment in UcaDO, necessitated Concha to abandon its strategy as an investing company and migrate to that of a Rule 15 cash shell focusing its efforts on identifying a suitable target for a reverse takeover. These interim results reflect the activities of identifying and securing Concha's investment in UcaDO and supporting that investment with a view to securing near term liquidity for its investor base. We will continue to work towards securing liquidity events for both our investments in UcaDO and our minority 30% holding in Works as part of the process of preparing Concha for a reverse takeover. These results reflect a loss of £0.23m for the six-month period ended 31 December 2017 (2016: Loss £0.28m before exceptional items of £2.71m) and incorporate not only the costs associated with the activities outlined above but also those incurred in connection with the continued evaluation and appraisal of all matters and initiatives relating to our investment in Ve. 

Your Board will continue its process of review and will update the market further as and when it is appropriate.  

 

Enquiries:

18 Buckingham Gate, London, SW1E 6LB

Concha plc
Chris Akers, Chairman
chris.akers@srgplc.com
   
SPARK Advisory Partners Limited (Nominated Adviser)
Andrew Emmott
Mark Brady
+44 (0) 203 368 3550
   
Buchanan
Richard Oldworth
+44 (0)20 7466 5000

 

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