Interim Report for the period ending 31 December 2011

28 March 2012

Concha Plc (formerly Hot Tuna (International) PLC) (AIM: CHA), previously a surf wear and fashion brand, announces its interim results for the six months ending 31 December 2011.

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Highlights

  • The Group disposed of certain intellectual property and assets of its former business called "Hot Tuna" post period end to Brands Holdings Limited for a cash consideration of £950,000;
  • The accounting profit realised on the asset disposal was circa £310,000;
  • Certain Board changes including appointment of M Barney Battles as Non-Executive Chairman;
  • Change of name to Concha plc to better reflect strategy going forward;
  • Placing of 900 million shares to raise £270,000 before expenses;
  • Short term loan facility of up to £750,000 entered into with Churchill Media Limited; and
  • Board actively pursuing strategic acquisition opportunities.

Commenting on the Interim Results, Chairman M Barney Battles said:

"These Results reaffirm the Board’s decision in November 2011 to swiftly put up for sale the assets and intellectual property of the former business "Hot Tuna". The tendering process generated  interest from a range of trade buyers and the eventual sale delivered a significant boost to cash reserves and a substantial profit on disposal in January 2012. We are delighted with the final sales price for our former business that was negotiated and delivered by the new Board.

We remain committed to acquiring a business that maximises long term shareholder value and we are actively pursuing a range of possible acquisition targets."

Interim Review

The 6 months ending 31 December 2011 was a challenging and disruptive period for the Company. The previous executive management team’s strategy focused on the re-launch of the brand which was driven forward in the first 4 months with the roll out of the ecommerce sites and the on-going negotiation of a distribution arrangement for the Company’s home market of Australia.  In September 2011 Mr Marcus Yeoman was appointed as Non-executive Director who, concerned with progress being made with the re-launch, immediately requested that the board assist him with a review of the current business strategy which led to the eventual appointment of Mr M Barney Battles as consultant to maximise the value of the company’s assets. It soon became clear from this review that the strategy that the then executive management team were pursuing was not working and the board therefore instructed M Barney Battles to commence with the sale of the company’s assets.

The process began in December and culminated in the successful disposal of the brand and assets at a General Meeting of Shareholders on 6 February 2012. Following the disposal approval, Shareholders also approved the change of Company’s business to investing, the approval of Mr M Barney Battles to Non-executive Director and change of Company name to Concha Plc.

Subsequent to the successful disposal, the Directors excluding Mr Yeoman and Mr Battles stepped down from the board. Both Mr Yeoman and Mr Battles have significant experience working with companies listed on the AIM market and it was agreed that they would best represent the interests of the corporate shell and its shareholders going forward.

The appointment of Mr Battles, along with change of business strategy to investing and change of name to Concha Plc was enacted on 7 February 2012.

Outlook

As part of the sale process, the board indicated that they intended for the corporate shell to seek a strategic acquisition in the media and technology industry and while no business has yet been identified, Mr Yeoman and Mr Battles remain committed to identifying suitable targets.

In the interim, the board is continuing to finalise the previous business’s trading obligations with the intention of attaining a clean listed shell as quickly as possible.

Concha Plc
80-83 Long Lane
London
EC1A 9ET

 

Enquiries:

Concha plc
M Barney Battles, Non-Executive Chairman
Tel: 020 7692 0589
   
Seymour Pearce (Nominated Adviser and Broker)
Mark Percy / Catherine Leftley (Corporate Finance)
Tel: 020 7107 8000

 

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