By
Adalta Real Plc
("Adalta Real" or the "Company")
Unaudited Interim Results
Chairman's Statement for the six month period ended 30 September 2013
I am pleased to present the Unaudited Interim Financial Statements of your
Company for the six months period ended 30 September 2013 ("the Period").
These Interim Financial Statements are presented on an unconsolidated basis,
ie. as a single entity, this being the form which the Company expects to apply
to the audited Annual Financial Statements for the year ended 31 March 2014.
Financials
In the six months ended 30 September 2013, total revenue amounted to £118,696
compared with only £71,468 in the same period last year and comprehensive
income before tax was a loss of only
£45,888, which compares well with a loss of £195,965 in the equivalent period
of 2012.
The balance of shareholders' funds at 30 September 2013 was £121,294, which
represents an appreciable reduction on the same period last year ie. 30
September 2012 (£277,448). Notwithstanding, the overall results are much better
than the same period last year.
The Board's intentions are to continue in the positive manner of the
improvements over the same period last year and look forward to further
improvements in the second half of the full year to 31 March 2014.
Activities
In spite of the serious effect of the previous period of acute recession in the
commercial property development world and the similar effect on the Agency and
Consultancy business in the six months period ended 30 September 2013 a
reasonable number of commercial property agency and consultancy instructions
have been received.
In addition, a growing number of commercial property development opportunities
are in the process of being progressed, of which some are substantial, and
therefore long term in conjunction with other companies within Joint Venture
agreements, as well as our own property development ventures.
The Company continues to enjoy the benefit of formal Agency and Consultancy
Contracts with the major national retail company with which it has been working
since 2009 and throughout 2013. However, although this source of revenue has
suffered due to changes in policy by that company and other factors related to
the general slowing down of commercial property activity following the
recession, these have been matters entirely beyond the Company's control.
Local Agency instructions continue to be difficult to complete, due
predominantly to the sorry state of the small retail & office sectors almost
everywhere except London and the Home Counties, particularly those retail
occupiers in the High Streets and Town Centres of most towns in the UK and it
must be said that there is still little hope of any real improvement for some
time to come. That said, your Company is continuing to achieve revenue from
local agency instructions and intends to continue for the time being in order
to be involved in the hoped for improvement of this sector.
As with last year, the Company has continued to benefit from the sterling
efforts of its dedicated and now larger team, who remain committed to the
Company during this improved, but still turbulent time.
Remainder of the Year and Future Prospects
The Board has continued the concentration of its efforts on the expansion of
the commercial property agency and consultancy instructions, which are
currently increasing and will continue to produce a healthy revenue stream.
The Company is now processing a considerably increased number of commercial
property development opportunities compared with the same period a year ago,
all of which are within the declared strategy of the Company, which is to
concentrate upon commercial property development projects comprising food
related opportunities, including Drive Thru developments, convenience retail
units, retail parks which contain a wide variety of retail companies and where
found, individual commercial property development opportunities, but in all
cases with only tenants rated with satisfactory covenants.
Future prospects include the substantial expansion of our agency and
consultancy services to include more focus on convenience stores. This part of
our strategy is to be strengthened due to the strong emphasis national food
retailers are placing upon this particular form of retailing, whereby many have
been acquiring and continue to acquire these units at a substantial rate due to
success in terms of their return on capital and also their popularity from a
customer perspective.
The Board also have plans to take advantage of the strong residential
development land sales & acquisitions market by the appointment of an
experienced part time consultant who will be responsible (aided by our existing
agency and consultancy) for sourcing suitable sites and introducing them to the
major housing developers in the UK. The first successful achievement has been
concluded satisfactorily and it is anticipated that the future in this area
will be bright.
It is now apparent that the dreadful severity of the longest ever UK recession,
only recently improved beyond most forecasts, is regarded as being over and
that economic success will now prevail.
Notwithstanding the recent improvement in the property world generally, I am
particularly satisfied with the performance of our enhanced operational team
over the Period and since, and I look forward to the continuation of our recent
successes into the long term future.
Kevin M Gilmore FRICS
Executive Chairman
31st December 2013
Statement of Comprehensive Income for the six months ended 30 September 2013
Unaudited Unaudited
6 months 6 months
to 30 to 30
September September
2013 2012
£'000 £'000
REVENUE 118.7 71.5
Cost of sales (84.9) (122.9)
GROSS PROFIT/(LOSS) 33.8 (51.4)
Administrative expenses (79.7) (144.6)
LOSS FROM OPERATIONS BEFORE
ONE-OFF ITEMS (45.9) (196.0)
One off items - -
LOSS FROM OPERATIONS (45.9) (196.0)
Finance income - -
LOSS BEFORE TAXATION (45.9) (196.0)
Taxation - -
LOSS AFTER TAXATION (45.9) (196.0)
TOTAL COMPREHENSIVE INCOME (45.9) (196.0)
FOR THE PERIOD ATTRIBUTABLE
TO SHAREHOLDERS
Basic earnings per share (0.22p) (0.95p)
(Note 4)
Diluted earnings per share (0.22p) (0.95p)
(Note 4)
Statement of Financial Position as at 30 September 2013
Unaudited Unaudited
30 30
September September
2013 2012
£'000 £'000
ASSETS
NON CURRENT ASSETS
Property, plant and 21.6 27.3
equipment
Investment in subsidiary
undertakings - -
Deferred tax assets 30.9 30.9
52.5 52.5
CURRENT ASSETS
Inventories 7.6 8.5
Trade and other receivables 158.2 163.9
Cash and cash equivalents 14.4 80.9
TOTAL CURRENT ASSETS 180.2 253.3
TOTAL ASSETS 232.7 311.5
EQUITY AND LIABILITIES
CURRENT LIABILITIES
Borrowings 56.0 -
Trade and other payables 55.4 34.1
TOTAL CURRENT LIABILITIES 111.4 34.1
SHAREHOLDERS' EQUITY
Called up share capital 1,030.7 1,030.7
Share premium account 1,558.1 1,558.1
Retained deficit (2,467.5) (2,311.4)
TOTAL SHAREHOLDERS' EQUITY 121.3 277.4
TOTAL EQUITY AND 232.7 311.5
LIABILITIES
Notes to the Unaudited Accounts for the six months ended 30 September 2013
1. GENERAL INFORMATION
Adalta Real Plc is a public limited company (`Adalta Real' or the `Company')
incorporated and domiciled in the United Kingdom under the UK Companies Acts
(Registration number 04075473), whose shares are publicly traded on the ISDX
Growth Market. The Company's registered office address is Church Court,
Stourbridge Road, Halesowen, West Midlands, B63 3TT, United Kingdom.
The Company's principal activities during the period were commercial property
agency, property development consultancy, investment consultancy and in-house
commercial property development. Notably, "property agency" now includes agency
in connection with residential land acquisitions and/or sales and the
acquisition and sales of and/or investment in existing commercial and/or
industrial property, together with potential corporate acquisitions, the latter
mainly in the property sector.
2. BASIS OF ACCOUNTING
The financial information has been prepared on the historical cost basis. The
accounting policies set out below have been applied consistently to all periods
presented in this six month report.
3. BASIS OF PREPARATION
These condensed interim financial statements are for the six months ended 30
September
2013. The Company has not adopted the reporting requirements of International
Accounting
Standard (IAS) 34 'Interim Financial Reporting'. The statements do not include
all of the information required for full annual financial statements and should
be read in conjunction with the financial statements of the Company for the
year ended 31 March 2013.
The statements have been prepared applying the accounting policies and
presentation that were applied in the preparation of the 2013 financial
statements.
These interim financial statements for the six months ended 30 September 2013
have neither been audited nor reviewed by the Company's auditors. The financial
information for the year ended 31 March 2013 set out in this interim report
does not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. The statutory financial statements for the year ended 31
March 2013 have been reported on by the company's auditors and delivered to the
Registrar of Companies. The report of the auditors was unqualified and did not
contain a statement under section 498(2) or 498(5) of the Companies Act 2006.
4. EARNINGS PER SHARE
The calculation of basic earnings per share is the loss of £45,888 (2012: £
195,965) divided by 20,613,292 shares (2012: 20,613,292 shares), being the
weighted average number of ordinary shares in issue during the period.
Diluted earnings per share is calculated using the weighted average number of
shares adjusted to assume conversion of all ordinary share options at 30
September 2013 that had an exercise price below the estimated average fair
price for the six months ended 30 September 2013.
Since the exercise price of the 1,376,000 (2012: 1,376,000) share options is
above the estimated average fair price for the period, the diluted earnings per
share is equivalent to the basic earnings per share.
The Directors do not propose to pay a dividend for the period.
5. INVESTMENT IN SUBSIDIARY UNDERTAKINGS
The investment in subsidiary undertakings at 30 September 2013 represents the
following:
a) 100% of the issued share capital of Storegap Commercial Limited, a company
registered in England and Wales. Storegap Commercial Limited remained dormant
from the date of acquisition to 30 September 2013.
b) 100% of the issued share capital of Pario Property Developments Limited, a
company registered in England and Wales. Pario Property Developments Limited
remained dormant from the date of acquisition to 30 September 2013.
The Company has not prepared consolidated statements because, in the view of
the directors, the results, assets, equity and liabilities of the Company's two
subsidiaries were immaterial in the context of these statements.
6. BORROWINGS
Borrowings represents an interest-free unsecured loan from Mr & Mrs K M
Gilmore. Mr K M Gilmore is a director and significant shareholder of the company.
7. APPROVAL OF THE INTERIM HALF YEAR REPORT
These unaudited Interim Report and Financial Statements for the six months
period to 30 September 2013 were approved by the Board of Directors on 30th December 2013.
8. WEBSITE
The half year Unaudited Report and Financial Statements are available on the
website: www.adaltareal.com
The Directors of the issuer accept responsibility for this announcement.
--END--
Enquiries:
Adalta Real PLC,
Kevin Gilmore +44 (0) 1295 670 123
Peterhouse Corporate Finance
Eran Zucker and Fungai Ndoro +44 (0) 20 7469 0932
Bishopsgate Communications
Nick Rome/Sam Allen
adalta@bishopsgatecommunications.com +44 (0) 207 562 3353ADALTA REAL PLC - Unaudited Interim Results
Share
© PRNewswire - 2014
