TIDMRGO
RNS Number : 7341D
RiverFort Global Opportunities PLC
28 June 2019
For immediate release 28 June 2019
RiverFort Global Opportunities plc ("RiverFort Global" or the
"Company")
Final results for the year to 31 December 2018
RiverFort Global Opportunities plc, the investment company
listed on AIM, is pleased to announce its audited final results for
the year ended 31 December 2018 (extracts from which are set out
below) and that the financial statements will shortly be posted to
shareholders and made available on the website
www.riverfortglobalopportunities.com
Highlights for 2018
-- Successful transition of Company and adoption of expanded investing policy
-- RiverFort Global Capital Limited appointed as investment adviser
-- Over GBP6 million in new equity raised to deploy in new investment opportunities
-- Significant improvement in operating results compared to 2017
-- Over GBP500,000 of investment income generated from RiverFort-arranged investments
-- Around GBP3 million held in debt and equity-linked debt
investments at the period end, with GBP5.5 million deployed to
date.
-- Substantial cash balance available for further investment.
-- Company's name changed to RiverFort Global Opportunities plc.
For more information please contact:
RiverFort Global Opportunities
plc +44 20 3984 9191
Phillip Haydn-Slater,
Non-Executive Chairman
-----------------
Nominated Adviser +44 20 7628 3396
-----------------
Beaumont Cornish
-----------------
Roland Cornish/Felicity
Geidt
-----------------
Joint Broker +44 20 7186 9950
-----------------
Shard Capital Partners
LLP
-----------------
Damon Heath/ Erik Woolgar
-----------------
Joint Broker +44 20 7562 3351
-----------------
Peterhouse Corporate
Finance
-----------------
Lucy Williams
-----------------
INTRODUCTION
During the year ended 31 December 2018, the Company has
continued to operate as an investment company.
FINANCIAL
For the year to 31 December 2018, the Company made a loss from
continuing operations of GBP731,192 (2017: loss of GBP1,135,685).
The net asset value of the Company as at 31 December 2018 was
GBP7,254,727 (2017: GBP2,448,769).
The Company's investment portfolio at 31 December 2018 is
divided into the following categories:
Category Cost or valuation
(GBP)
Debt and equity-linked debt investments 2,996,917
------------------
Equity investments 546,380
------------------
Other 250.418
------------------
Cash resources 3,597,734
------------------
Total 7,391,449
------------------
REVIEW OF THE YEAR
2018 has been an extremely busy year for the Company. During the
year, the Board announced that the Company had entered into an
arrangement with RiverFort Global Capital Ltd ("RiverFort"), the
specialist provider of capital to junior companies whereby the
Company would have the opportunity to invest in transactions
arranged by RiverFort alongside other co-investors. This
arrangement was subsequently approved by shareholders in a general
meeting on 8 June 2018.
The purpose of this arrangement was to provide greater access to
investment opportunities, lower the volatility and risk associated
with pure equity investment and drive the development of cash
income and returns for the Company. It also enabled investors to
gain access to the RiverFort investment strategy via a publicly
listed vehicle.
Against this background, during the course of the year, the
Company raised almost GBP6 million in new funds from a range of new
investors, both private and institutional, in order to have the
capital available to deploy in the opportunities arranged by
RiverFort. By the end of the year, the Company held around GBP3
million in RiverFort-arranged investments. At the same time, the
Company's equity portfolio has been reduced in order to lower the
risk profile of the Company's investment portfolio.
As a result of these new investments, along with a focus on a
reduction of costs, the Company's results for the year have
significantly improved compared to the previous year.
Income breakdown 2018 2017
GBP000 GBP000
------- --------
Investment income 513 12
------- --------
Net loss from financial instruments
at FVTPL (929) (812)
------- --------
Total income (416) (800)
------- --------
Administration costs 279 336
------- --------
Other gains and losses (35)
------- --------
Operating profit (731) (1,136)
------- --------
Investment income derives principally from the fees and interest
income in relation to the RiverFort-arranged investments. The net
loss from financial instruments at FVTP represents the impact of
valuing the investment portfolio at fair value as described under
the new IFRS 9 accounting policy. The principal contributor to this
loss during 2018 was the unrealised loss recorded on the investment
in Plutus PowerGen plc, held within the Company's existing equity
portfolio. This company's share price decreased by almost 80%
during 2018 and, as at the year end, the Company's holding was
valued at GBP213,440.
In overall terms, these results clearly validate the Company's
focus on building its debt and equity-linked debt portfolio and
entering into the investment adviser agreement with RiverFort.
Furthermore, these results have been achieved against the
background of the Company's available investment funds only being
partially invested over this period and with a reduced cost base
again for only part of the period.
The Company's Board has also been strengthened with the addition
of Andrew Nesbitt, a qualified mining engineer, with over 20 years
of experience in the natural resources sector and I joined the
Board effective 1 January 2019. Towards the end of the year, the
Company changed its name to RiverFort Global Opportunities plc and
expanded its investing policy to include healthcare and
technology.
More details of the company's investing activities and
investment portfolio are set out in the Strategic Report.
OUTLOOK AND STRATEGY
Going forward the Company is continuing to actively invest its
capital in new opportunities and, to date, has now invested around
GBP5.5 million in RiverFort-arranged investments. There continues
to be strong demand for funding from junior listed companies which
can deliver attractive investment returns. The Company still has a
substantial cash balance to deploy as a result of the return of
principal from its investments, the generation of investment income
and its fund-raising activities. It is therefore particularly well
placed to continue to build on the results for 2018 and grow its
portfolio significantly and rapidly by making investments that can
generate income and capital growth whilst offering downside
protection. We firmly believe that 2019 will be another positive
year for the Company.
Philip Haydn-Slater
Chairman
27 June 2019
REVIEW OF THE BUSINESS AND FUTURE DEVELOPMENTS
Introduction
The Company is an investment company listed on AIM. It is
principally focused on investing in junior listed companies. During
the year, the Board announced that the Company had entered into an
arrangement with RiverFort Global Capital Ltd ("RiverFort"), the
specialist provider of capital to junior companies whereby the
Company would have the opportunity to invest in transactions
arranged by RiverFort alongside other co-investors. Returns are
principally generated through a combination of fees, interest and
other equity linked or performance-based instruments. These
transactions generally take the form of debt or equity-linked debt
investments and will enable the Company to de-risk its overall
investment portfolio and to generate regular cash income.
Debt and equity linked portfolio
During the year, the Company has been focused on building up
this portfolio and as at the year end the value of these
investments amounted to GBP2,996,917. This portfolio principally
comprised investments in the following companies:
Company
Jubilee Metals Group AIM listed
plc
------------
Amur Minerals plc AIM listed
------------
EQTEC PLC AIM listed
------------
Lions Bay Capital TSXV listed
Inc
------------
Linkwood Holdings Private
Limited
------------
Artemis Resources ASX listed
Limited
------------
Oil and gas company AIM listed
------------
Mining company AIM listed
------------
Mining company AIM listed
------------
Technology company AIM listed
------------
Healthcare company AIM listed
------------
These investments principally generate income in the form of
fees and interest. Investments are either made directly or by way
of participation certificates in RiverFort Global Opportunities PCC
Limited, a Gibraltar based fund advised by RiverFort. These
certificates are reference linked financial instruments that
provide similar economic benefits to the holder as if they were
co-investing directly in the underlying investment. Whilst there is
no direct security into the underlying investment, the holder will
benefit from the enforcement of any such security.
Often as part of the Company's investment, the investee company
will issue warrants. The value of the warrants attributable to the
Company's investments are calculate using the Black-Scholes option
pricing model and the resulting figure discounted by 75% to reflect
the level of expected return associated with such holdings given
their highly volatile nature.
Equity portfolio
During the year, the Company has reduced the size of its equity
portfolio in order to reduce the overall risk profile of its
investment portfolio. The Company has continued to do this into
2019. At the year end, the Company's equity portfolio comprised the
following:
Company Description Current value
of investment
GBP000
A power company listed
on AIM focused on the
development, construction
and operation of flexible
electricity and gas
Plutus PowerGen power generation in
plc the UK 214
---------------------------- ---------------
Pires Investments An investment company
plc listed on AIM 175
---------------------------- ---------------
Various small holdings
principally in listed
Other companies 157
---------------------------- ---------------
Total 546
---------------
Since the year end, the majority of the holdings in the Other
category above have been sold. Also, in February 2019, Pires
Investments plc raised some additional funds by way of a share
placing at a price of 2.4 pence per share. The Company invested in
this fund raising in order to maintain its shareholding at 24.3%.
The current share price of this company is 2.3 pence compared to
the company's net asset position of 3.5 pence per share as
disclosed by the company at the end of April 2019.
STATEMENT OF COMPREHENSIVE INCOME FOR THE
YEARED 31 DECEMBER 2018 2018 2017
Note GBP GBP
--------------------------------------------- ---- --------- -----------
CONTINUING OPERATIONS:
Net loss from financial instruments at FVTPL 4 (929,412) (811,467)
Investment income 5 512,743 11,934
--------------------------------------------- ---- --------- -----------
TOTAL INCOME (416,669) (799,533)
Administrative expenses 7 (278,707) (336,152)
Other gains and losses 6 (35,816) -
LOSS BEFORE TAXATION (731,192) (1,135,685)
Taxation 11 - -
--------------------------------------------- ---- --------- -----------
LOSS FOR THE YEAR AND TOTAL COMPREHENSIVE
INCOME (731,192) (1,135,685)
--------------------------------------------- ---- --------- -----------
EARNINGS PER SHARE 12
Basic and fully diluted loss per share (0.018p) (0.112p)
--------------------------------------------- ---- --------- -----------
STATEMENT OF FINANCIAL POSITION FOR
THE YEARED 31 DECEMBER 2018 2018 2017
Note GBP GBP
-------------------------------------- ---- ----------- -----------
NON-CURRENT ASSETS
Financial asset investments 13 1,540,456 2,252,373
-------------------------------------- ---- ----------- -----------
1,540,456 2,252,373
-------------------------------------- ---- ----------- -----------
CURRENT ASSETS
Financial asset investments 13 2,253,259 -
Trade and other receivables 14 206,107 37,863
Cash and cash equivalents 15 3,597,734 211,795
-------------------------------------- ---- ----------- -----------
6,057,100 249,658
-------------------------------------- ---- ----------- -----------
TOTAL ASSETS 7,597,556 2,502,031
-------------------------------------- ---- ----------- -----------
CURRENT LIABILITIES
Trade and other payables 16 307,013 53,262
Other financial liabilities 17 35,816 -
342,829 53,262
-------------------------------------- ---- ----------- -----------
NET ASSETS 7,254,727 2,448,769
-------------------------------------- ---- ----------- -----------
EQUITY
Share capital 18 10,042,273 4,269,546
Share premium account 18 3,191,257 3,191,257
Capital redemption reserve 19 27,000 27,000
Share option reserve 19 - 73,150
Retained losses (6,005,803) (5,112,184)
-------------------------------------- ---- ----------- -----------
TOTAL EQUITY 7,254,727 2,448,769
-------------------------------------- ---- ----------- -----------
STATEMENT OF CHANGES IN
EQUITY FOR THE YEARED Share Other Retained Total
31 DECEMBER 2018 capital Share premium reserves losses equity
GBP GBP GBP GBP GBP
------------------------------- ----------- ---------------- ---------- ------------ ------------
BALANCE AT 1 JANUARY 2017 4,269,546 3,191,257 100,150 (3,976,499) 3,584,454
Loss for the year and
total comprehensive expense - - - (1,135,685) (1,135,685)
BALANCE AT 31 DECEMBER
2017 4,269,546 3,191,257 100,150 (5,112,184) 2,448,769
Loss for the year and
total comprehensive expense - - - (731,192) (731,192)
------------------------------- ----------- ---------------- ---------- ------------ ------------
Share option reserve transfer
following cancellation
of options - - (73,150) 73,150 -
Share issues 5,772,727 77,273 - - 5,850,000
Share issue expenses - (77,273) - (235,577) (312,850)
------------------------------- ----------- ---------------- ---------- ------------ ------------
Transactions with owners 5,772,727 - - (235,577) 5,537,150
------------------------------- ----------- ---------------- ---------- ------------ ------------
BALANCE AT 31 DECEMBER
2018 10,042,273 3,191,257 27,000 (6,005,803) 7,254,727
------------------------------- ----------- ---------------- ---------- ------------ ------------
STATEMENT OF CASHFLOWS FOR THE YEARED 31 DECEMBER 2018 2018 2017
Note GBP GBP
-------------------------------------------------------- --------------- ------------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax (731,192) (1,135,685)
Investment income 5 (512,743) (11,934)
Net losses on investments 4 929,412 811,467
Unrealised loss on foreign currency
contract 17 35,816 -
OPERATING CASH FLOWS BEFORE MOVEMENTS
IN WORKING CAPITAL (278,707) (336,152)
Decrease/(Increase) in trade and
other receivables 14 14,963 (8,721)
Increase in trade and other payables 16 10,805 10,892
NET CASH USED BY OPERATING ACTIVITIES (252,939) (333,981)
-------------------------------------------------------- --------------- ------------- ------------
INVESTING ACTIVITIES
Purchase of investments 13 (3,204,994) (321,167)
Disposal of investments 13 783,975 206,844
Debt instrument repayments 13 193,211 -
Investment income received 329,536 11,934
-------------------------------------------------------- --------------- ------------- ------------
NET CASH USED IN INVESTING ACTIVITIES (1,898,272) (102,389)
-------------------------------------------------------- --------------- ------------- ------------
FINANCING ACTIVITIES
Share issues 18 5,850,000 -
Share issue costs 18 (312,850)
-------------------------------------------------------- --------------- ------------- ------------
NET CASH FROM FINANCING ACTIVITIES 5,537,150 -
NET INCREASE/(DECREASE) IN CASH
AND CASH EQUIVALENTS 3,385,939 (436,370)
Cash and cash equivalents at the
beginning of the year 211,795 648,165
CASH AND CASH EQUIVALENTS AT THE OF THE YEAR 15 3,597,734 211,795
-------------------------------------------------------- --------------- ------------- ------------
1 GENERAL INFORMATION
RiverFort Global Opportunities plc is a public limited company
incorporated in the United Kingdom. The shares of the Company
are listed on the Alternative Investment Market (AIM). The
address of its registered office is Suite 12a, 55 Park Lane,
London, W1K 1NA. The Company's principal activities are described
in the Directors' Report.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation
of these financial statements are set out below. These policies
have been consistently applied throughout all periods presented
in the financial statements.
As in prior periods, the Company's financial statements have
been prepared in accordance with International Financial
Reporting Standards (IFRS) and IFIRC interpretations (IFRS
IC) as adopted by the European Union and the Companies Act
2006 applicable to companies reporting under IFRS. The financial
statements have been prepared under the historical cost convention,
as modified by financial assets and financial liabilities
(including derivative instruments) at fair value. The measurement
basis is more fully described in the accounting policies
below.
The financial statements are presented in pounds sterling
(GBP) which is the functional currency of the Company. The
comparative figures are for the year ended 31 December 2017.
GOING CONCERN
The Company's assets comprise mainly cash, debt securities
and quoted securities. As at 20 June 2019, the Company had
cash resources of GBP2,036,000 and has prepared cash forecasts
to June 2020 that show that the company has sufficient cash
resources for the foreseeable future; accordingly, the directors
believe that as at the date of this report it is appropriate
to continue to adopt the going concern basis in preparing
the financial statements.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of financial statements in conformity with
IFRS requires the use of estimates and assumptions that affect
the reported amounts of assets and liabilities at the date
of the financial statements and the reported amounts of revenues
and expenses during the reporting year. These estimates and
assumptions are based upon management's knowledge and experience
of the amounts, events or actions. Actual results may differ
from such estimates.
Estimates and judgements are continually evaluated and are
based on historical experience and other factors, including
expectations of future events that are believed to be reasonable
under the circumstances.
In certain circumstances, where fair value cannot be readily
established, the Company is required to make judgements over
carrying value impairment, and evaluate the size of any impairment
required.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company holds investments that have been designated as
held for trading on initial recognition. Where practicable
the Company determines the fair value of these financial
instruments that are not quoted (Level 3), using the most
recent bid price at which a transaction has been carried
out. These techniques are significantly affected by certain
key assumptions, such as market liquidity. Other valuation
methodologies such as discounted cash flow analysis assess
estimates of future cash flows and it is important to recognise
that in that regard, the derived fair value estimates cannot
always be substantiated by comparison with independent markets
and, in many cases, may not be capable of being realised
immediately.
The Company also holds unquoted share warrants as level 3
investments. The fair values of these warrants have been
obtained using the Black Scholes valuation model, and applying
a 75% discount to allow for the warrants being untraded derivatives
and with the underlying securities being traded on junior
markets. This model makes certain assumptions relating to
the volatility of the underlying Company's share price which
are applied in the calculation of the fair value of the warrants.
The volatility is measured based on the volatility of the
share price of the underlying share over the 12 months prior
to the issue of the warrants.
CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES
New standards, amendments and interpretations adopted by
the Company
The company has applied the following standards and amendments
for the first time for its annual reporting period commencing
1 January 2018:
-- IFRS 9 Financial Instruments;
-- IFRS 15 Revenue from contracts with customers;
-- Annual improvements 2014-2016 cycle;
IMPACT OF ADOPTION OF IFRS 9
The classification and measurement requirements of IFRS 9
have been adopted with effect from the date of initial application
on 1 January 2018. However, the Company has chosen to take
advantage of the option not to restate comparatives. Therefore,
the 2017 figures are presented and measured under IAS 39.
The following table shows the original measurement categories
in accordance with IAS 39 and the new measurement categories
under IFRS 9 for the Company's financial assets and financial
liabilities as at 1 January 2018:
1 January IAS 39 IAS 39 IFRS 9 IFRS 9
2018 classification measurement classification measurement
GBP GBP
Financial
assets
Cash and
cash Loans and Amortised
equivalents receivables 211,795 cost 211,795
Financial
assets
at fair Held for
value trading
through at fair value Fair value
profit through profit through profit
or loss or loss 2,252,373 or loss 2,252,373
Financial
liabilities
Other financial Amortised
Payables liabilities 22,067 cost 22,067
REVENUE RECOGNITION
INVESTMENT INCOME
Dividend income from financial assets at fair value through
profit or loss is recognised in the statement of comprehensive
income on an ex-dividend basis.
Interest on fixed interest debt securities, designated at
fair value through profit or loss, is recognised using the
effective interest rate method. Other structured finance
fees are recognised on the date of the relevant agreement.
Bank deposit interest is recognised on an accruals basis.
FOREIGN CURRENCY TRANSLATION
In preparing the financial statements of the Company transactions
in currencies other than the Company's functional currency
(foreign currencies) are recognised at the rates of exchange
prevailing on the dates of the transactions. At each reporting
date, monetary assets and liabilities that are denominated
in foreign currencies are retranslated at the rates prevailing
at that date. Non--monetary items carried at fair value that
are denominated in foreign currencies are translated at the
rates prevailing at the date when the fair value was determined.
Exchange differences are recognised in profit or loss in
the period in which they arise.
CURRENT AND DEFERRED TAX
Tax is recognised in the income statement, except to the
extent that it relates to items recognised directly in equity.
In this case the tax is also recognised directly in other
comprehensive income or directly in equity, respectively.
The current income tax charge is calculated on the basis
of the tax laws enacted or substantively enacted at the end
of the reporting period in the countries where the Company
operates and generates taxable income. Management periodically
evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject
to interpretation. It establishes provisions where appropriate
on the basis of amounts expected to be paid to the tax authorities.
Deferred income taxes are calculated using the liability
method on temporary differences. Deferred tax is generally
provided on the difference between the carrying amounts of
assets and liabilities and their tax bases. However, deferred
tax is not provided on the initial recognition of an asset
or liability unless the related transaction is a business
combination or affects tax or accounting profit. Temporary
differences include those associated with shares in subsidiaries
and joint ventures and are only not recognised if the Company
controls the reversal of the difference and it is not expected
for the foreseeable future. In addition, tax losses available
to be carried forward as well as other income tax credits
to the Company are assessed for recognition as deferred tax
assets.
Deferred tax liabilities are provided in full, with no discounting.
Deferred tax assets are recognised to the extent that it
is probable that the underlying deductible temporary differences
will be able to be offset against future taxable income.
Current and deferred tax assets and liabilities are calculated
at tax rates that are expected to apply to their respective
period of realisation, provided they are enacted or substantively
enacted at the statement of financial position date. Changes
in deferred tax assets or liabilities are recognised as a
component of tax expense in the income statement, except
where they relate to items that are charged or credited to
equity in which case the related deferred tax is also charged
or credited directly to equity.
SEGMENTAL REPORTING
The accounting policy for identifying segments is now based
on internal management reporting information that is regularly
reviewed by the chief operating decision maker, which is
identified as the Board of Directors.
In identifying its operating segments, management generally
follows the Company's service lines which represent the main
products and services provided by the Company. The Directors
believe that the Company's continuing investment operations
comprise one segment.
FINANCIAL ASSETS
The Company's financial assets comprise investments, cash
and cash equivalents and loans and receivables, and are recognised
in the Company's statement of financial position when the
Company becomes a party to the contractual provisions of
the instrument.
CLASSIFICATION OF FINANCIAL ASSETS
The Company holds financial assets including equities and
debt securities. On 1 January 2018, the Company adopted IFRS
9 Financial Instruments (IFRS 9). IFRS 9 replaces the classification
and measurement models previously contained in IAS 39 Financial
Instruments: Recognition and Measurement. The classification
and measurement of financial assets at 31 December 2018 is
in accordance with IFRS 9 and the classification and measurement
of financial assets at 31 December 2017 is in accordance
with IAS 39 as the Group has not restated comparative information.
On the initial recognition, the Company classifies financial
assets as measured at amortised cost or FVTPL. A financial
asset is measured at amortised cost if it meets both of the
following conditions and is not designated as at FVTPL:
* It is held within a business model whose objective is
to hold assets to collect contractual cash flows; and
* its contractual terms give rise on specific dates to
cash flows that are Solely Payments of Principal and
Interest (SPPI).
All other financial assets of the Company are measured at
FVTPL.
BUSINESS MODEL ASSESSMENT
In making an assessment of the objective of the business
model in which a financial asset is held, the Company considers
all of the relevant information on how the business is managed,
including:
* the documented investment strategy and the execution
of this strategy in practice. This includes whether
the investment strategy focuses on earning
contractual interest income, maintaining a particular
interest rate profile, matching the duration of the
financial assets to the duration of any related
liabilities or expected cash outflows or realised
cash flows through the sale of the assets;
* how the performance of the portfolio is evaluated and
reported to the Company's management;
* the risks that affect the performance of the business
model (and the financial assets held within that
business model) and how those risks are managed;
* how the investment advisor is compensated e.g.
whether compensation is based on the fair value of
the assets managed or the contractual cashflows
collected
IFRS 9 subsection B4.1.1-B4.1.2 stipulates that the objective
of the entity's business model is not based on management's
intentions with respect to an individual instrument, but
rather determined at a higher level of aggregation. The assessment
needs to reflect the way that an entity manages its business.
The company has determined that it has two business models.
* Held-to-collect business model: this includes cash
and cash equivalents, balances due from brokers and
other receivables. These financial assets are held to
collect contractual cash flows.
* Other Business model: the includes structured finance
products, equity investments, investments in unlisted
private equities and derivatives. These financial
assets are managed and their performance is evaluated,
on a fair value basis with frequent sales taking
place in respect to equity holdings.
VALUATION OF FINANCIAL ASSET INVESTMENTS
Investment transactions are accounted for on a trade date
basis. Assets are de-recognised at the trade date of the
disposal. Assets are sold at their fair value, which comprises
the proceeds of sale less any transaction cost. The fair
value of the financial instruments in the balance sheet is
based on the quoted bid price at the balance sheet date,
with no deduction for any estimated future selling cost.
The valuations in respect of unquoted investments (Level
2 and Level 3 financial assets) are explained in note 13.
Changes in the fair value of investments held at fair value
through profit or loss and gains and losses on disposal are
recognised in the consolidated statement of comprehensive
income as "Net gains/(losses) on investments". Investments
are initially measured at fair value plus incidental acquisition
costs. Subsequently, they are measured at fair value. This
is either the bid price or the last traded price, depending
on the convention of the exchange on which the investment
is quoted.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash on hand and demand
deposits, together with other short-term, highly liquid
investments that are readily convertible into known amounts
of cash and which are subject to an insignificant risk
of changes in value. They are initially recognised at
fair value and subsequently at amortised cost using the
effective interest rate method.
OTHER RECEIVABLES
Other receivables from third parties are initially recognised
at fair value and subsequently carried at amortised cost
using the effective interest rate method.
IMPAIRMENT OF FINANCIAL ASSETS
Financial assets, other than those at FVTPL, are assessed
for indicators of impairment at each balance sheet date.
Financial assets are impaired where there is objective
evidence that, as a result of one or more events that
occurred after the initial recognition of the financial
asset, the estimated future cash flows of the investment
have been impacted.
A provision for impairment is made when there is objective
evidence that, as a result of one or more events that
occurred after the initial recognition of the financial
asset, the estimated future cash flows have been affected.
Impaired debts are derecognised when they are assessed
as uncollectible.
FINANCIAL LIABILITIES
The Company's financial liabilities comprise trade payables.
Financial liabilities are obligations to pay cash or other
financial assets and are recognised when the Company becomes
a party to the contractual provisions of the instruments.
TRADE PAYABLES
Trade payables are initially measured at fair value and
are subsequently measured at amortised cost, using the
effective interest rate method.
EARNINGS PER SHARE
Earnings per share are calculated by dividing the profit
or loss for the year after tax by the weighted average
number of shares in issue, and is measured in pence per
share.
EQUITY
Equity comprises the following:
* "Share capital" represents the nominal value of
equity shares.
* "Share premium" represents the excess over nominal
value of the fair value of consideration received for
equity shares, net of expenses of the share issue.
* "Capital redemption reserve" represents the nominal
value of shares repurchased or redeemed by the
Company.
* "Option reserve" represents the cumulative cost of
share based payments.
* "Retained losses" represents retained losses.
3 SEGMENTAL INFORMATION
The Company is organised around business class and the
results are reported to the Chief Operating Decision Maker
according to this class. There is one continuing class
of business, being the investment in junior listed and
unlisted companies.
Given that there is only one continuing class of business,
operating within the UK no further segmental information
has been provided.
4 NET LOSS ON INVESTMENTS
2018 2017
GBP GBP
---------------------------- -------------------------------------- -----------------
Net realised (losses)/gains
on disposal
of investments (19,764) 92,473
Net movement in fair value
of investments (964,582) (903,940)
Net foreign exchange gain on
investments 54,934 -
Net (loss) on investments (929,412) (811,467)
---------------------------- -------------------------------------- -----------------
5 INVESTMENT INCOME
2018 2017
GBP GBP
---------------------- -------------------------------------- -----------------
Structured finance
fees 394,869 -
Deposit interest
receivable - 1,871
Other interest
receivable 117,874 10,063
512,743 11,934
---------------------- -------------------------------------- -----------------
6 OTHER GAINS AND LOSSES
2018 2017
GBP GBP
------------------------------------------------ ---------------------- ------------------------
Unrealised loss on foreign currency contract (35,816) -
(35,816) -
------------------------------------------------------------------- ---------------------- ------------------------
7 LOSS FOR THE YEAR
2018 2017
GBP GBP
------------------------------------------------ ---------------------- ------------------------
Profit for the year has been arrived at
after charging:
Wages and salaries 87,612 131,329
Office rent 8,740 27,792
Stock Exchange fees 22,158 11,399
Share registrars' fees 5,101 3,451
Nominated advisor fees 27,400 33,830
Corporate broking fees 24,000 24,000
Audit and tax compliance 27,304 14,100
Other legal and professional fees 49,258 51,935
Other administrative expenses 36,433 38,316
Net foreign exchange translation difference (9,299) -
------------------------------------------------------------------- ---------------------- ------------------------
Total administrative expenses as per the
statement of comprehensive income 278,707 336,152
------------------------------------------------------------------- ---------------------- ------------------------
AUDITOR'S REMUNERATION
During the year the Company obtained the following services
from the Company's auditor:
2018 2017
GBP GBP
------------------------------------------------ ---------------------- ------------------------
Fees payable to the Company's auditor
for the audit of the parent company and
the Company financial statements 24,000 12,000
Fees payable to the Company's auditor
and its associates for other services:
Other services relating to taxation 3,304 2,100
------------------------------------------------------------------- ---------------------- ------------------------
27,304 14,100
------------------------------------------------------------------- ---------------------- ------------------------
8 DIRECTORS' EMOLUMENTS
2018 2017
GBP GBP
------------------------------------------------ ---------------------- ------------------------
Aggregate emoluments 81,667 120,000
Social security costs 5,945 11,329
87,612 131,329
------------------------------------------------------------------- ---------------------- ------------------------
Total Total
Name of director Salaries Benefits 2018 2017
GBP GBP GBP GBP
-------------------- ------------ ------------ ---------------------- ------------------------
N Lee 57,334 - 57,334 84,000
A van Dyke 24,333 - 24,333 36,000
A Nesbitt - - - -
81,667 - 81,667 120,000
--------------------------------------- ------------ ------------ ---------------------- ------------------------
9 EMPLOYEE INFORMATION
2018 2017
GBP GBP
------------------------------------------------ ---------------------- ----------------------
Wages and salaries 81,667 120,000
Social security costs 5,945 11,329
87,612 131,329
------------------------------------------------------------------- ---------------------- ----------------------
Average number of persons employed:
2018 2017
Number Number
------------------------------------------------ ---------------------- ----------------------
Office and management 2 2
------------------------------------------------------------------- ---------------------- ----------------------
COMPENSATION OF KEY MANAGEMENT PERSONNEL
There are no key management personnel other than the Directors
of the Company.
10 SHARE BASED PAYMENTS
EQUITY-SETTLED SHARE OPTION SCHEME
The Company operates share-based payment arrangements to
remunerate directors and key employees in the form of a
share option scheme. Equity-settled share-based payments
are measured at fair value (excluding the effect of non-market
based vesting conditions) at the date of grant. The fair
value determined at the grant date of the equity-settled
share-based payments is expensed on a straight-line basis
over the vesting period, based on the Company's estimate
of shares that will eventually vest and adjusted for the
effect of non-market based vesting conditions.
On 26 October 2011, Nicholas Lee was granted options to
subscribe for 28,000,000 new ordinary shares in the Company
at an exercise price of 0.32p per share. The options are
exercisable for a period of ten years from the date of grant,
with one third becoming exercisable on the first, second
and third anniversaries of the date of grant respectively.
On 13 March 2012, Nicholas Lee was granted options to subscribe
for 14,000,000 new ordinary shares in the Company at an
exercise price of 0.48p per share. The options are exercisable
for a period of ten years from the date of grant, with one
third becoming exercisable on the first, second and third
anniversaries of the date of grant respectively. The fair
value of these options was determined using the Black-Scholes
option pricing model and was GBP0.22p per option.
All remaining options were cancelled during the year. The
deemed benefit of the options using the Black-Scholes model
was fully expensed in previous years so there has been no
charge to the profit and loss account in respect of their
cancellation in the current year.
The significant inputs to the model in respect of the options
granted in 2014, 2012 and 2011 were as follows:
2014 2012 2011
Grant date share
price 0.26p 0.48p 0.32p
Exercise share price 0.26p 0.48p 0.32p
No. of share options 20,000,000 14,000,000 28,000,000
Risk free rate 2.5% 3% 3%
Expected volatility 50% 40% 40%
Option life 10 years 10 years 10 years
Calculated fair value
per share 0.14p 0.22p 0.15p
The total share-based payment expense recognised in the
income statement for the year ended 31 December 2018 in
respect of the share options granted was GBPNil (2017: GBPNil).
Number Number
of Granted Exercised of Exercise Vesting Expiry
options in the in the options price Date date
at year year Cancelled at
1 Jan in the 31 Dec
2018 year 2018
---------- -------- ------------ ---------- ---------- --------- ------------ ---------------
9,333,334 - - 9,333,334 - 0.32p 26.10.2012 26.10.2021
4,666,667 - - 4,666,667 - 0.48p 13.03.2013 13.03.2022
9,333,333 - - 9,333,333 - 0.32p 26.10.2013 26.10.2021
4,666,667 - - 4,666,667 - 0.48p 13.03.2014 13.03.2022
9,333,333 - - 9,333,333 - 0.32p 26.10.2014 26.10.2021
4,666,667 - - 4,666,666 - 0.48p 13.03.2015 13.03.2022
42,000,000 - - 42,000,000 - 0.37p
---------- -------- ------------ ---------- ---------- --------- ------------ ---------------
11 INCOME TAX EXPENSE
2018 2017
GBP GBP
----------------------------------------------- ---------- -------------
Current tax - continuing operations - -
----------------------------------------------- ---------- -------------
The tax on the Company's profit before tax differs from
the theoretical amount that would arise using the weighted
average rate applicable to profits of the Consolidated entities
as follows:
2018 2017
GBP GBP
----------------------------------------------- ---------- -------------
Profit/(loss) before tax from continuing
operations (731,192) (1,135,685)
------------------------------------------------------------------- ---------- -------------
Profit/(loss) before tax multiplied by
rate of corporation tax in the UK of 19%
(2017: 19.25%) (138,926) (218,619)
Expenses not deductible for tax purposes 1,182 2,728
Offset against tax losses brought forward - -
Unrelieved tax losses carried forward 137,744 215,891
Total tax - -
------------------------------------------------------------------- ---------- -------------
Unrelieved tax losses of approximately GBP5,210,000 (2017:
GBP4,485,000) remain available to offset against future
taxable trading profits. No deferred tax asset has been
recognised in respect of the losses as recoverability is
uncertain.
12 EARNINGS PER SHARE
The basic earnings per share is based on the loss for the
year divided by the weighted average number of shares in
issue during the year. The weighted average number of ordinary
shares for the year assumes that all shares have been included
in the computation based on the weighted average number
of days since issue.
2018 2017
GBP GBP
------------------------------------------------ ------------- -------------
loss attributable to equity holders of
the Company:
loss from continuing operations (731,192) (1,135,685)
-------------------------------------------------------------------- ------------- -------------
loss for the year attributable to equity
holders of the Company (731,192) (1,135,685)
-------------------------------------------------------------------- ------------- -------------
Weighted average number of ordinary shares
in issue for basic and fully diluted earnings* 4,152,597,991 1,016,607,956
EARNINGS/(LOSS) PER SHARE
BASIC AND FULLY DILUTED:
- Basic (loss)/earnings per share from
continuing and total operations (0.018p) (0.112p)
- Fully diluted (loss)/earnings per share
from continuing and total operations (0.018p) (0.112p)
-------------------------------------------------------------------- ------------- -------------
*No adjustment to earnings per share for fully diluted earnings
has been made as the exercise of options would be anti-dilutive.
13 FINANCIAL ASSETS
All financial assets are designated at fair value through
profit and loss ("FVTPL")
2018 2017
GBP GBP
----------------------------------------------------- --------- ---------
At 1 January - fair value 2,252,373 2,949,517
Acquisition of equity investments - 321,167
Equity investment disposal proceeds (983,975) (206,844)
Net (loss)/gain on disposal of investments (19,764) 92,473
Movement in fair value of investments (651,836) (903,940)
------------------------------------------------------------------------- --------- ---------
596,798 2,252,373
Acquisition of debt securities designated
at FVTPL 3,647,940 -
Debt security repayments (193,211) -
Movement in fair value of debt securities (312,746) -
Net foreign exchange gain on debt securities 54,934 -
At 31 December - fair value 3,793,715 2,252,373
------------------------------------------------------------------------- --------- ---------
Current Non-current
2018 2017 2018 2017
GBP GBP GBP GBP
----------------------------------- ---------- ---- --------- ---------
Categorised as:
Level 1 - Quoted investments - - 507,880 1,811,625
Level 2 - Unquoted investments 2,253,259 - 943,658 263,513
Level 3 - Unquoted investments - - 88,918 177,235
------------------------------------------------------- ---------- ---- --------- ---------
2,253,259 - 1,540,456 2,252,373
------------------------------------------------------- ---------- ---- --------- ---------
The table of investments sets out the fair value measurements
using the IFRS 7 fair value hierarchy. Categorisation within
the hierarchy has been determined on the basis of the lowest
level of input that is significant to the fair value measurement
of the relevant asset as follows:
Level 1 - valued using quoted prices in active markets for
identical assets.
Level 2 - valued by reference to valuation techniques using
observable inputs other than quoted prices included within
Level 1.
Level 3 - valued by reference to valuation techniques using
inputs that are not based on observable market data.
The valuation techniques used by the company are explained
in the accounting policy note, "Investments held for trading".
LEVEL 2 FINANCIAL ASSETS
Level 2 financial assets comprise debt securities valued
by reference to their principal value, less appropriate
allowance where there is a doubt as to whether the principal
amount will be fully repaid in accordance with the contractual
terms of the obligation.
LEVEL 3 FINANCIAL ASSETS
Reconciliation of Level 3 fair value measurement of financial
assets
2018 2017
GBP GBP
--------------------------------------------- ----------- ----------
Brought forward 177,235 392,149
Disposal proceeds (200,000) -
Loss on disposals (100,000) -
Fair value of share warrants 50,418 -
Movement in fair value 161,265 (214,914)
--------------------------------------------- ----------- ----------
Carried forward 88,918 177,235
--------------------------------------------- ----------- ----------
The Company's level 3 investments comprise shares in Eridge
Capital Limited ("Eridge") and a number of unquoted share
warrants. The shares in Eridge have been valued in line
with the approximate net asset value of Eridge. The share
warrants have been valued using the Black-Scholes valuation
model, discounted by 75% to allow for there being no trading
market for the warrant instruments and the underlying shares
are quoted on the London Stock Exchange's secondary Alternative
Investment Market.
In line with the investment strategy adopted by the Company,
Nicholas Lee is on the boards of the following investee
companies:
% holding
2018 2017
--------------------------------------------- ----------- ----------
Pires Investments plc 24.6% 24.8%
Eridge Capital Limited (resigned 30 June
2018) 7.7% 7.7%
--------------------------------------------- ----------- ----------
14 TRADE AND OTHER RECEIVABLES
2018 2017
GBP GBP
------------------------------- ------- ------
Other receivables 17,528 20,816
Prepayments and accrued income 188,579 17,047
--------------------------------------------------- ------- ------
206,107 37,863
--------------------------------------------------- ------- ------
The Directors consider that the carrying amount of other
receivables is approximately equal to their fair value.
15 CASH AND CASH EQUIVALENTS
2018 2017
GBP GBP
-------------------------- --------- -------
Cash and cash equivalents 3,597,734 211,795
---------------------------------------------- --------- -------
The Directors consider the carrying amount of cash and cash
equivalents approximates to their fair value.
TRADE AND OTHER PAYABLES
16
2018 2017
GBP GBP
----------------- ------- ------
Trade payables 21,989 22,067
Other payables 242,946 -
Accrued expenses 42,078 31,195
--------------------------------------- ------- ------
307,013 53,262
--------------------------------------- ------- ------
The Directors consider that the carrying amount of trade and
other payables approximates to their fair value.
OTHER FINANCIAL LIABILITIES
17
2018 2017
GBP GBP
----------------------------------------- ------ ----
Liability in respect of foreign exchange
contract 35,816 -
35,816 -
--------------------------------------------------------------- ------ ----
On 1 November 2018 the Company entered into a forward contract
for the sale and purchase of USD 2,900,000 for settlement on 31
January 2019. At 31 December 2018 the potential liability on the
contract was GBP35,816.
18 SHARE CAPITAL
Number of shares Share capital Share
Deferred Ordinary Deferred Ordinary premium
GBP GBP GBP
-------------------- ------------ ------------- ----------- ---------- ---------
ISSUED AND FULLY
PAID:
At 1 January 2017:
Deferred shares
of 9.9p each 32,857,956 3,252,938
Ordinary shares
of 0.1p each 1,016,607,956 1,016,608 3,191,257
---------------------------------------- ------------ ------------- ----------- ---------- ---------
At 1 January and
31 December 2017 32,857,956 1,016,607,956 3,252,938 1,016,608 3,191,257
Issue of shares
(see note below) 5,772,727,270 5,772,727 -
---------------------------------------- ------------ ------------- ----------- ---------- ---------
At 31 December 2018 32,857,956 6,789,335,226 3,252,938 6,789,335 3,191,257
---------------------------------------- ------------ ------------- ----------- ---------- ---------
The deferred shares have restricted rights such that they have
no economic value.
Share issues in year
On 18 January 2018, 772,727,270 new ordinary shares of 0.1p were
issued for cash at 0.11p each as a result of a placing, raising
GBP850,000 before expenses which totalled GBP85,000.
On 26 June 2018, 4,500,000,000 new ordinary shares of 0.1p were
issued for cash at 0.1p each as a result of a placing, raising
GBP4,500,000 before expenses which totalled GBP199,850.
On 31 October 2018, 500,000,000 new ordinary shares of 0.1p were
issued for cash at 0.1p each as a result of a placing, raising
GBP500,000 before expenses of GBP28,000.
19 OTHER RESERVES
Capital Share
redemption option Total
reserve reserve Other reserves
GBP GBP GBP
------------------------------------- ------------ --------- ----------------
Balance at 1 January 2017 and
31 December 2017 27,000 73,150 100,150
Transfer to Profit and Loss account
on cancellation of options - (73,150) (73,150)
--------------------------------------------------------- ------------ --------- ----------------
Balance at 31 December 2018 27,000 - 27,000
--------------------------------------------------------- ------------ --------- ----------------
20 RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company is exposed to a variety of financial risks which
result from both its operating and investing activities.
The Company's risk management is coordinated by the Board
of Directors and focuses on actively securing the Company's
short to medium term cash flows by minimising the exposure
to financial markets.
The main risks the Company is exposed to through its financial
instruments are credit risk, foreign currency risk, liquidity
risk, market price risk and operational risk.
CAPITAL RISK MANAGEMENT
The Company's objectives when managing capital are:
* to safeguard the Company's ability to continue as a
going concern, so that it continues to provide
returns and benefits for shareholders;
* to support the Company's growth; and
* to provide capital for the purpose of strengthening
the Company's risk management capability.
The Company actively and regularly reviews and manages its
capital structure to ensure an optimal capital structure
and equity holder returns, taking into consideration the
future capital requirements of the Company and capital efficiency,
prevailing and projected profitability, projected operating
cash flows, projected capital expenditures and projected
strategic investment opportunities. Management regards total
equity as capital and reserves, for capital management purposes.
The Company is not subject to externally imposed capital
requirements.
CREDIT RISK
The Company's financial instruments that are subject to
credit risk are cash and cash equivalents and loans and
receivables. The credit risk for cash and cash equivalents
is considered negligible since the counterparties are reputable
financial institutions. The credit risk for loans and receivables
is mainly in respect of short term loans, made on market
terms, which are monitored regularly by the Board.
The Company's maximum exposure to credit risk is GBP3,615,262
(2017: GBP232,611) comprising cash and cash equivalents
and loans and receivables.
The ageing profile of trade and other receivables was:
2018 2017
Total book Total book
value value
GBP GBP
-------------------------------------------- --------------- --------------
Current 17,528 20,816
Overdue for less than one year - -
17,528 20,816
---------------------------------------------------------------- --------------- --------------
LIQUIDITY RISK
Liquidity risk arises from the possibility that the Company
might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities.
The Company manages this risk through maintaining a positive
cash balance and controlling expenses and commitments. The
Directors are confident that adequate resources exist to
finance current operations.
FOREIGN CURRENCY RISK
The Company invests in financial instruments and enters
into transactions that are denominated in currencies other
than its functional currency, primarily in US dollars (USD).
Consequently, the Company is exposed to the risk that the
exchange rate of its currency relative to other foreign
currencies may change in manner that has an adverse effect
on the fair value of the future cashflows of the Company's
financial assets denominated in currencies other than the
GBP.
The Company's policy is to use derivatives to manage its
exposure to foreign currency risk. The instruments used
are foreign currency forward contracts. The Company does
not apply hedge accounting.
The carrying amounts of the Company's foreign currency denominated
monetary assets and monetary liabilities at the reporting
date are as follows:
Liabilities Assets
-------------------------- ------------------------
31 Dec 31 Dec 31 Dec 31 Dec
2018 2017 2018 2017
GBP GBP GBP GBP
----------------------- --------------- --------- ------------- ---------
US Dollars *2,272,730 - 3,301,087 -
----------------------- --------------- --------- ------------- ---------
2,272,730 - 3,301,087 -
----------------------- --------------- --------- ------------- ---------
*This amount is in respect of a forward contract to be settled
on 31 January 2019.
The following table details the Company's sensitivity to
a 5 per cent increase and decrease in GBP against the US
Dollar. 5 per cent is the sensitivity rate used when reporting
foreign currency risk internally to key management personnel
and represents management's assessment of the reasonably
possible change in the GBP/USD rate. The sensitivity analysis
includes only outstanding foreign currency denominated monetary
items and adjusts their translation at the year-end for
a 5 per cent change in the GBP/USD rate. A positive number
below indicates an increase in profit and other equity where
GBP weakens 5 per cent against the relevant currency. For
a 5 per cent strengthening of GBP against the relevant currency,
there would be a comparable impact on the profit and other
equity, and the balances below would be negative.
US Dollars
------------------------
31 Dec 31 Dec
2018 2017
GBP GBP
----------------------- --------------- --------- ------------- ---------
Profit and loss 51,418 -
----------------------- --------------- --------- ------------- ---------
51,418 -
----------------------- --------------- --------- ------------- ---------
INTEREST RATE RISK
Interest rate risk is the risk that the fair value of future
cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The risk is mitigated
by the Company only entering into fixed rate interest agreements,
therefore detailed analysis of interest rate risk is not
disclosed.
MARKET PRICE RISK
The Company's exposure to market price risk mainly arises
from potential movements in the fair value of its investments.
The Company manages this price risk within its long-term
investment strategy to manage a diversified exposure to
the market. If each of the Company's equity investments
were to experience a rise or fall of 10% in their fair value,
this would result in the Company's net asset value and statement
of comprehensive income increasing or decreasing by GBP80,000
(2017: GBP225,000).
Exposure to market price risk also arises in respect of
the Company's investments in debt securities which are mainly
denominated in US Dollars.
The Company's strategy for the management of market risk
is driven by the Company's investment objective, which is
focused on deploying its capital in investments that provide
both income and downside protection. It is expected that
the Company will deliver returns to shareholders through
a combination of capital growth and dividend income.
The Company's market risk is managed on a continuous basis
by the Investment Advisor in accordance with the policies
and procedures in place. The Company's market positions
are monitored on a quarterly basis by the board of directors.
OPERATIONAL RISK
Operational Risk is the risk of direct or indirect loss
arising from a wide variety of causes associated with the
processes, technology and infrastructure supporting the
Company's activities with financial instruments, either
internally within the Company or externally at the Company's
service providers such as cash custodians/brokers, and from
external factors other than credit, market and liquidity
risks such as those arising from legal and regulatory requirements
and generally accepted standards of investment management
behaviour.
The Company's objective is to manage operational risk so
as to balance the limiting of financial losses and damage
to its reputation with achieving its investment objective
of generating returns to shareholders.
The primary responsibility for the development and implementation
of controls over the operational risk rests with the board
of directors. This responsibility is supported by the development
of overall standards for the management of operational risk,
which encompasses the controls and processes over the investment,
finance and financial reporting functions internally and
the establishment of service levels with various service
providers, in the following areas:
* Appropriate segregation of duties between various
functions, roles and responsibilities;
* Reconciliation and monitoring of transactions
* Compliance with regulatory and other legal
requirements;
The directors' assessment of the adequacy of the controls
and processes at the service providers with respect to operational
risk is carried out via ad hoc discussions with the service
providers. Substantially all the of the assets of the Company
are held by Barclays Bank UK, Shard Capital Brokers, Monex
Europe. The bankruptcy or insolvency of the Company's cash
custodian/brokers may cause the Company's rights with respect
to the securities or cash and cash equivalents held by cash
custodian/ broker to be limited. The board of directors'
monitors capital adequacy and reviews other publicly available
information of its cash custodian/broker on a quarterly
basis.
21 FINANCIAL INSTRUMENTS
The Company uses financial instruments, other than derivatives,
comprising cash to provide funding for the Company's operations.
CATEGORIES OF FINANCIAL INSTRUMENTS
The IFRS 9 categories of financial asset included in the
statement of financial position and the headings in which
they are included are as follows:
2018 2017
GBP GBP
------------------------------------------------- --------- ---------
FINANCIAL ASSETS:
Cash and cash equivalents 3,597,734 211,795
Financial assets at amortised cost 17,528 20,816
Financial assets at fair value through profit
or loss 3,793,715 2,252,373
--------------------------------------------------------------------- --------- ---------
FINANCIAL LIABILITIES AT AMORTISED COST:
The IFRS 9 categories of financial liabilities included
in the statement of financial position and the headings
in which they are included are as follows:
2018 2017
GBP GBP
------------------------------------------------- --------- ---------
Trade and other payables 264,935 22,067
Liability under foreign currency exchange
contract 35,816 -
--------------------------------------------------------------------- --------- ---------
22 RELATED PARTY TRANSACTIONS
The compensation payable to Key Management personnel comprised
GBP81,667 (2017: GBP120,000) paid by the Company to the
Directors in respect of services to the Company. Full details
of the compensation for each Director are provided in Note
7.
Nicholas Lee's directorships of companies in which Riverfort
Global Opportunities plc has an investment are detailed
in Note 13.
23 Contingent LIABILITIES AND CAPITAL COMMITMENTS
There were no contingent liabilities or capital commitments
at 31 December 2018 or 31 December 2017.
24 POST YEAR END EVENTS
There were no material post year-end events.
25 ULTIMATE CONTROLLING PARTY
The Directors do not consider there to be a single ultimate
controlling party.
Note to the announcement:
In accordance with section 435 of the Companies Act 2006,
the directors advise that the financial information set
out in this announcement does not constitute the Group's
statutory financial statements for the year ended 31 December
2018 or 2017, but is derived from these financial statements.
The financial statements for the year ended 31 December
2017 have been delivered to the Registrar of Companies.
The financial statements for the year ended 31 December
2018 have been prepared in accordance with International
Financial Reporting Standards as adopted by the European
Union and will be forwarded to the Registrar of Companies
following the Company's Annual General Meeting. The Auditors
have reported on these financial statements; their reports
were unqualified and did not contain statements under Section
498(2) or (3) of the Companies Act 2006.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR SEDFWWFUSEEM
(END) Dow Jones Newswires
June 28, 2019 02:00 ET (06:00 GMT)
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