TIDMSCN
RNS Number : 5852G
Sacoven PLC
08 August 2016
8 August 2016
Sacoven plc (the "Company")
Annual report and audited financial statements
The Company announces its annual results for the year ended 31
March 2016 (the "Period").
Chairman's Statement
For The Year Ended 31 March 2016
To Our Shareholders:
The financial year ending 31 March 2016 reflected the third full
year of operation of Sacoven plc, which was incorporated on 16
March 2012 in Jersey, Channel Islands.
During this start-up phase of operation, we incurred further
costs during the year of GBP 474,997 (2015: GBP 741,737), and
registered an annual net loss of GBP 466,000 (2015: GBP
730,890).
During the year the close working relationship with Vasari
Global Limited, the Company to whom we have outsourced our mergers
and acquisitions initiatives, has developed and a number of
investment opportunities have been analysed in some detail and
discussed with the board.
On 12 September 2014, a secondary listing on the AltX of the JSE
was obtained.
The Board would like to take this opportunity to thank the
shareholders for their continued support.
Mark Haynes Daniell
Chairman
Directors' report for the year ended 31 march 2016
The Directors present their annual report and audited financial
statements for the year ended 31 March 2016.
Incorporation
Sacoven plc ("the Company") is a public limited company
incorporated on 16 March 2012 in Jersey, Channel Islands. The
Company was converted to a public company from a private company
and adopted new memorandum and articles of association on 17 May
2012. The Company was listed on the AIM market of the London Stock
Exchange on 8 June 2012 and has obtained a secondary listing on the
AltX of the JSE Limited with effect from 12 September 2014.
Principal Activities
The Company is a holding company formed to acquire a company,
business or group of businesses or asset(s) in either the natural
resources or the consumer goods sectors where the investment
adviser and the investment team have significant knowledge,
expertise and an extensive network of relationships. The Company
raised gross proceeds of GBP6 million on admission and, as
appropriate, will look to raise further funds from new and existing
shareholders once an acquisition target has been identified and the
terms of the acquisition agreed. Any acquisition will be deemed a
reverse takeover under the AIM rules for companies and will
therefore require shareholder approval in a general meeting prior
to completion of the acquisition. In terms of the JSE Listing
Requirements, any acquisition will require approval by a majority
of disinterested Directors and the majority of shareholders in a
general meeting.
The Company is advised by Vasari Global Limited, the investment
adviser, utilising the investment team whom the Directors believe
have extensive experience and knowledge of investments in both the
natural resources and the consumer goods sectors. The Board is
responsible for the Company's objectives and business strategy and
its overall supervision. The Company has outsourced most of its
operating functions, including the identification and assessment of
acquisition opportunities and the structuring and execution of the
acquisition, to the investment adviser. The investment adviser may,
in turn, delegate some of those outsourced operating functions to
various consultants or third party advisers. The investment team
are directors and/or employees of the investment adviser through
which they will provide their services.
The Company intends to focus on those opportunities where it
believes the investment team has specific insights and can add
long-term value. In addition, the Company believes it will be well
placed to compete for any potential acquisition given the
knowledge, experience and reputation of the investment team and its
ability to structure deals innovatively and efficiently for any
transaction. As at the date of this report, the investment adviser
has not made a decision to recommend any particular acquisition.
The Directors are cognisant of the JSE listing requirement for the
Company to make an acquisition by 12 September 2016, failing which,
the Company will be de-listed from the JSE.
Going Concern Basis
The Directors have concluded that at the time of approving the
financial statements of the Company, there is a reasonable
expectation that the Company has adequate resources to continue in
operational existence for the foreseeable future.
Results
The results for the year are set out in the statement of
comprehensive income on page 8.
Dividends
The Directors do not propose any dividends in respect of the
reporting year.
Directors
The Directors of the Company who served throughout the year and
subsequently were:
Ian Christopher Crosby
Mark Haynes Daniell - Chairman
Niall Iain McCallum
Samuel Imerman (resigned on 15 July 2016)
Hymie Reuvin Levin (resigned on 15 July 2016)
Secretary
The Secretary of the Company who served throughout the year and
subsequently was:
Stonehage Fleming Corporate Services Limited (Appointed 10
December 2015)
Regal Trustees Limited (Resigned 10 December 2015)
Statement of Directors' Responsibilities
The Companies (Jersey) Law 1991 obliges the Directors to require
the Company to prepare the financial statements in accordance with
applicable law and regulations.
The Company is required to prepare financial statements for each
financial year. The financial statements have been prepared in
accordance with AIM Rules and JSE Listing Requirements for
Companies and in accordance with International Financial Reporting
Standards ("IFRS") as issued by the IASB. The financial statements
are required to give a true and fair view of the state of affairs
of the Company and of the results of the Company for that year. In
relation to these financial statements, the Directors are required
to:
-- select suitable accounting policies and then apply them consistently;
-- make judgements and estimates that are reasonable and prudent;
-- state whether applicable accounting standards have been
followed subject to any material departures disclosed and explained
in the financial statements; and
-- require the financial statements to be prepared on the going
concern basis, unless it is inappropriate to presume that the
Company will continue in business.
The Directors are also responsible for requiring the Company to
keep proper accounting records which disclose with reasonable
accuracy at any time the financial position of the Company and
enable them to endeavour to ensure that the financial statements
comply with the Companies (Jersey) Law 1991. They are also
responsible for endeavouring to safeguard the assets of the Company
and hence for taking reasonable steps for the prevention and
detection of fraud, error and non-compliance with law and
regulations.
The Directors confirm that they have complied with the above
requirements in relation to the preparation of the financial
statements.
Independent Auditors
Grant Thornton Limited have been reappointed as auditors.
Niall McCallum Ian Crosby
Director Director
Date: 8(th) August 2016
Statement Of Financial Position
As At 31 March 2016
Notes 31/03/2016 31/03/2015
GBP GBP
Assets
Current assets
Prepayments and other
receivables 5 19,944 20,570
Cash and cash equivalents 2,534,325 3,007,823
Total assets 2,554,269 3,028,393
------------ ------------
Liabilities and equity
Current liabilities
Other payables and accrued
expenses 6 39,306 47,430
Total liabilities 39,306 47,430
------------ ------------
Equity & reserves
Share capital 7 6,002 6,002
Share premium 8 4,910,690 4,910,690
Founder option 9 6,000 6,000
Retained loss (2,407,729) (1,941,729)
Total equity 2,514,963 2,980,963
Total liabilities and
equity 2,554,269 3,028,393
------------ ------------
Statement Of Comprehensive Income
For The Year Ended 31 March 2016
01/04/2015 01/04/2014
to to
31/03/2016 31/03/2015
Notes GBP GBP
Income - -
----------- -----------
Expenses
Investment advisory fees 10 262,500 450,000
Directors' fees 10 75,000 75,000
Administration fees 10 35,000 50,000
Insurance 7,924 7,898
Insurance adjustment
prior year - (7,535)
Nominated adviser and
broker fees 51,647 50,994
Registrar fees 10,340 8,937
Stock exchange fees 2,168 7,445
JSE stock exchange listing - 72,948
Legal and professional
fees 15,610 12,932
Travel expenses 2,052 1,142
Audit fees 11,000 10,000
GST fees 200 200
Annual return fees 150 150
Webhosting 240 240
Bank charges 11,092 1,386
Foreign exchange 74 -
474,997 741,737
----------- -----------
Operating loss (474,997) (741,737)
Other income
Bank interest income 8,997 10,847
Loss before tax (466,000) (730,890)
Tax on ordinary activities 3 - -
----------- -----------
Total comprehensive loss
for the year (466,000) (730,890)
----------- -----------
Basic loss per share 17 (0.078) (0.122)
----------- -----------
Statement Of Changes In Equity
For The Year Ended 31 March 2016
Notes Share Share Founder Retained Total
capital premium option loss
GBP GBP GBP GBP GBP
As at 1 April
2015 6,002 4,910,690 6,000 (1,941,729) 2,980,963
Total comprehensive
loss
for the year - - - (466,000) (466,000)
-------- ---------- -------- ------------ ----------
At 31 March
2016 6,002 4,910,690 6,000 (2,407,729) 2,514,963
-------- ---------- -------- ------------ ----------
For The Year Ended 31 March 2015
Notes Share Share Founder Retained Total
capital premium option loss
GBP GBP GBP GBP GBP
As at 1 April
2014 6,002 4,910,690 6,000 (1,210,839) 3,711,853
Total comprehensive
loss
for the year - - - (730,890) (730,890)
-------- ---------- -------- ------------ ----------
At 31 March
2015 6,002 4,910,690 6,000 (1,941,729) 2,980,963
-------- ---------- -------- ------------ ----------
Statement Of Cash flows
For The Year Ended 31 March 2016
01/04/2015 01/04/2014
to to
31/03/2016 31/03/2015
Notes GBP GBP
Cash flows from operating
activities
Operating loss (474,997) (741,737)
Adjustments for changes
in:
Prepayments and receivables (626) (5,556)
Other payables and accrued
expenses (8,124) 11,305
----------- -----------
Net cash outflow from
operating activities (482,495) (735,988)
----------- -----------
Cash flows from investing
activities
Bank interest received 8,997 10,847
----------- -----------
Net cash received from
investing activities 8.997 10,847
----------- -----------
Net change in cash and
cash equivalents (473,498) (725,141)
Opening cash and cash
equivalents 3,007,823 3,732,964
----------- -----------
Cash and cash equivalents
at the end of the year 2,534,325 3,007,823
----------- -----------
Notes To The Financial Statements
For The Year Ended 31 March 2015
1. General Information
Sacoven plc ("the Company") is a public limited company
incorporated on 16 March 2012 in Jersey, Channel Islands. The
Company was re-registered as a public company from a private
company and adopted new memorandum and articles of association on
17 May 2012. The Company was listed on the AIM market of the London
Stock Exchange on 8 June 2012, and has obtained a secondary listing
on the AltX of the JSE on 12 September 2014.
2. Principal accounting policies
2.1 Basis of preparation
The financial statements of the Company have been prepared in
accordance with the AIM Rules and JSE Listing Requirements for
Companies and in accordance with International Financial Reporting
Standards ("IFRS") as issued by the International Accounting
Standards Board ("IASB") and interpretations issued by the
International Financial Reporting Interpretations Committee on a
historical cost basis.
2.2 Summary of significant accounting policies
The preparation of financial statements in conformity with IFRS
requires management to make estimates and assumptions that affect
the amounts reported in the financial statements and accompanying
notes. The Directors believe that the estimates utilised in
preparing the financial statements are reasonable and prudent, and
that such estimates and assumptions are immaterial in nature and
have no significant impact on the results reported in the financial
statements. The financial statements have been prepared on the
going concern basis.
The principal accounting policies applied in the preparation of
these financial statements are set out below. These policies have
been consistently applied to all of the years presented, unless
otherwise stated.
New and revised standards that are effective for annual periods
beginning on or after 1 January 2015
In 2015, the Company adopted new standards, amendments and
interpretations to existing standards that are mandatory for the
Company's accounting period beginning on 1 April 2015. The adoption
of these revisions to the requirements of IFRSs did not result in
any changes to the Company's accounting policies.
Annual Improvements 2010-2012 Cycle
The improvements are effective for accounting periods beginning
on or after 1 July 2014. The Company has applied these improvements
for the first time in these financial statements. They include:
IAS 24 Related Party Disclosures
The amendment is applied retrospectively and clarifies that a
management entity (an entity that provides key management personnel
services) is a related party subject to the related party
disclosures. In addition, an entity that uses a management entity
is required to disclose the expenses incurred for management
services. This amendment is not relevant for the Company as it does
not receive any management services from other entities.
Standards, amendments and interpretations to existing standards
that are not yet effective and have not been adopted early by the
Company.
At the date of authorisation of these financial statements,
certain new standards, amendments and interpretations to existing
standards have been published by the IASB but are not yet
effective, and have not been adopted early by the Company.
Management anticipates that all of the relevant pronouncements
will be adopted in the Company's accounting policies for the first
period beginning after the effective date of the pronouncement.
Information on new standards, amendments and interpretations that
are expected to be relevant to the Company's financial statements
is provided below. Certain other new standards and interpretations
have been issued but are not expected to have a material impact on
the Company's financial statement.
IFRS 9 Financial Instruments (2014)
The IASB recently released IFRS 9 'Financial Instruments'
(2014), representing the completion of its project to replace IAS
39 'Financial Instruments: Recognition and Measurement'. The new
standard introduces extensive changes to IAS 39's guidance on the
classification and measurement of financial assets and introduces a
new 'expected credit loss' model for the impairment of financial
assets. IFRS 9 also provides new guidance on the application of
hedge accounting.
Management has started to assess the impact of IFRS 9 but is not
yet in a position to provide quantified information. At this stage
the main areas of expected impact are as follows:
-- the classification and measurement of the Company's financial
assets will need to be considered based on the new criteria that
considers the assets' contractual cash flows and the business model
in which they are managed;
-- an expected credit loss-based impairment will need to be
recognised on the Company's trade receivables (and investments in
debt-type assets currently classified as available for sale and
held to maturity, unless classified as at fair value through profit
or loss) in accordance with the new criteria;
-- it will no longer be possible to measure equity investments
at cost less impairment and all such investments will instead be
measured at fair value. Changes in fair value will be presented in
profit or loss unless the Company makes an irrevocable designation
to present them in other comprehensive income.
IFRS 9 is effective for annual reporting periods beginning on or
after 1 January 2018.
Annual Improvements 2012-2014 Cycle
These improvements are effective for annual periods beginning on
or after 1 January 2016. They include:
IFRS 7 Financial Instruments: Disclosures
Applicability of the amendments to IFRS 7 to condensed interim
financial statements
The amendment clarifies that the offsetting disclosure
requirements do not apply to condensed interim financial
statements, unless such disclosures provide a significant update to
the information reported in the most recent annual report. This
amendment must be applied retrospectively.
IAS 34 Interim Financial Reporting
The amendment clarifies that the required interim disclosures
must either be in the interim financial statements or incorporated
by cross-reference between the interim financial statements and
wherever they are included within the interim financial report
(e.g., in the management commentary or risk report). The other
information within the interim financial report must be available
to users on the same terms as the interim financial statements and
at the same time. This amendment must be applied retrospectively.
These amendments are not expected to have any impact on the
Company.
IAS 1 Disclosure Initiative
The amendments to IAS 1 Presentation of Financial Statements
clarify, rather than significantly change, existing IAS 1
requirements. The amendments clarify:
-- The materiality requirements in IAS 1
-- That specific line items in the statement of comprehensive
income and the statement of financial position may be
disaggregated
-- That entities have flexibility as to the order in which they
present the notes to financial statements
-- That the share of other comprehensive income of associates
and joint ventures accounted for using the equity method must be
presented in aggregate as a single line item, and classified
between those items that will or will not be subsequently
reclassified to profit or loss
-- Furthermore, the amendments clarify the requirements that
apply when additional subtotals are presented in the statement of
financial position and the statement of comprehensive income. These
amendments are effective for annual periods beginning on or after 1
January 2016, with early adoption permitted. These amendments are
not expected to have any impact on the Company.
(i) Financial instruments
Classification
The Company classifies its financial assets and financial
liabilities in accordance with IAS 39, Financial Instruments:
Recognition and Measurement.
Receivables
Receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market.
Other financial liabilities
Financial liabilities that are not held at fair value through
profit or loss include other short term operating expenses payable.
In the opinion of the Directors, the carrying amounts of other
financial liabilities not measured at fair value through profit or
loss are approximate to their fair value.
Recognition
The Company recognises a financial asset or financial liability
when, and only when, it becomes a party to a contractual
agreement.
Initial and subsequent measurement
Receivables and other financial liabilities are initially
recognised at fair value and subsequently at amortised cost using
the effective interest rate method.
De-recognition
A financial asset or part of a financial asset is de-recognised
where:
- The rights to receive cash flows from the asset have expired;
- Substantially all risks and rewards of the asset have been transferred.
The Company derecognises a financial liability when the
obligation under the liability is discharged, cancelled or
expired.
(ii) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand
deposits, and other short term highly liquid investments that are
readily convertible to a known amount of cash and are subject to
insignificant risk of changes in value.
(iii) Going concern basis
The Directors have concluded that at the time of approving the
financial statements of the Company there is a reasonable
expectation that the Company has adequate resources to continue in
operational existence for the foreseeable future.
(iv) Income
Income consists of bank interest income accounted for on an
accruals basis.
(v) Expenses
Expenses are accounted for on an accruals basis.
(vi) Foreign currencies
Functional and presentation currency
The functional currency of the Company is pounds sterling, the
currency of the primary economic environment in which the Company
operates and this is also the presentational currency of the
Company.
Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the date of the
transactions or an average rate as an approximation. Foreign
currency monetary assets and liabilities are translated into the
functional currency at the closing exchange rate at the end of the
reporting year.
Gains and losses
Any foreign exchange gains and losses on financial assets and
financial liabilities are included in the Statement of
Comprehensive Income in the year in which they arise.
(vii) Related parties
Related parties are entities which have the ability, directly or
indirectly, to control the other party or exercise significant
influence over the other party in making financial and operating
decisions. The related parties of the Company are disclosed in note
10.
3. Taxation
The Company is classified under Article 123C of the Income Tax
(Jersey) Law 1961, as amended, as a Jersey resident company which
is neither a 'utility company' nor a 'financial services company'
and as such is charged Jersey income tax at the rate of 0%.
A Jersey goods and services tax ("GST") applies at a standard
rate of 5% on the majority of goods and services supplied in Jersey
for local use or benefit. The Company has obtained International
Services Entity status under the Goods and Services Tax (Jersey)
Law 2007. In connection with its International Services Entity
status the Company pays an annual fee to the Comptroller of Income
Tax in Jersey, which is currently fixed at GBP200. As an
International Services Entity the Company is not required to charge
GST and in most situations will not be subject to a GST charge on
goods and services provided to it.
4. Segmental reporting
The Directors are of the opinion that the Company is engaged in
a single segment of business, as such no segmental reporting
information has been presented.
5. Prepayment and other receivables
31/03/2016 31/03/2015
GBP GBP
Prepayments 19,942 20,568
Other debtors 2 2
----------- -----------
19,944 20,570
----------- -----------
6. Other payables and accrued expenses
31/03/2016 31/03/2015
GBP GBP
Directors fees 18,750 18,750
Administration fees 8,750 8,750
Registrar fees 634 625
Audit fees 10,000 10,000
Stock exchange fees 200 434
Legal and professional 21 21
JSE stock exchange listing 451 8,850
----------- -----------
39,306 47,430
----------- -----------
7. Share capital
31/03/2016 31/03/2015
Units Units
Authorised share capital
Non-redeemable ordinary
shares of GBP1 each 2 2
Unclassified shares of GBP0.001
each 59,999,998,000 59,999,998,000
--------------- ---------------
GBP GBP
Issued and fully paid up
share capital
2 non-redeemable ordinary
shares of GBP1 each 2 2
6,000,001 unclassified shares
of GBP0.001 each 6,000 6,000
--------------- ---------------
6,002 6,002
--------------- ---------------
On 15 May 2012 the 2 ordinary shares of GBP1 each in the issued
share capital of the Company were redesignated as non-redeemable
ordinary shares of GBP1 each having the rights and being subject to
the restrictions set out in the articles of association (the
"Articles") adopted by the Company on 17 May 2012.
Each of the 998 ordinary shares of GBP1 each in the unissued
(but authorised) share capital of the Company was subdivided into
1,000 ordinary shares of GBP0.001 each and then all such ordinary
shares of GBP0.001 each were redesignated as unclassified shares of
GBP0.001 each that may from time to time (and in accordance with
the Articles be issued as, or redesignated or converted into,
shares (whether or not redeemable from time to time) and, in each
case having the rights and being subject to the restrictions
specified in the Articles adopted by the Company on 17 May
2012.
The authorised share capital of the Company was increased from
GBP1,000 divided into 2 non-redeemable ordinary shares of GBP1 each
and 998,000 unclassified shares of GBP0.001 each to GBP60,000,000
divided into 2 non-redeemable ordinary shares of GBP1 each and
59,999,998,000 unclassified shares of GBP0.001 each by the creation
of an additional 59,999,000,000 unclassified shares of GBP0.001
each that may from time to time (and in accordance with the
Articles be issued as, or redesignated or converted into, shares
(whether or not redeemable from time to time) and, in each case
having the rights and being subject to the restrictions specified
in the Articles.
Brunswood International Holdings Limited the "Founder" owns 100%
of the non-redeemable ordinary shares and 50% of the ordinary
shares in issue. The Founder has no ultimate controlling party and
therefore the Company has none either.
8. Share premium
31/03/2016 31/03/2015
GBP GBP
6,000,001 unclassified shares
issued at a premium of GBP0.999 5,994,001 5,994,001
Less: transaction cost (1,083,311) (1,083,311)
------------ ------------
4,910,690 4,910,690
------------ ------------
9. Founder option
31/03/2015 31/03/2015
GBP GBP
Founder option 6,000 6,000
----------- -----------
Brunswood International Holdings Limited the "Founder" has
purchased an option for GBP6,000 ("the Founder Option"). The
Founder Option gives the Founder the right, from admission up to
completion of any acquisition, to subscribe for a further 6,000,000
shares at GBP0.999 per share.
10. Related party disclosures
The Company has a number of related parties, the transactions
with the related parties are detailed below:
Administration fees
Fees are payable to Stonehage Fleming Corporate Services Limited
(appointed 10 December 2015) for administration services; Ian
Crosby and Niall McCallum are directors of Stonehage Fleming
Corporate Services Limited and of the Company. The amount payable
by the Company for the year was GBP 35,000 (2015: GBP 50,000) for
administration and GBP 25,000 (2015: GBP 25,000) for directors'
fees, of which GBP 15,000 (2015: GBP 15,000) remained unpaid at the
year end.
Directors fees are only for services relating to their
directorship and are not direct salary payments to the
individuals.
Directors
In addition to the amounts payable to Stonehage Fleming
Corporate Services Limited, Samuel Imerman and Hymie Levin were
paid directors fees of GBP 12,500 each (2015: GBP 12,500 each) and
Mark Haynes Daniell was paid directors fees of GBP 25,000 (2015:
GBP 25,000). At the year end GBP 12,500 remained unpaid (2015: GBP
12,500).
Shareholdings
The Founder and the Investment Adviser are related parties
through common beneficial ownership of certain members of the
Imerman family (the "Family Trusts").
The Founder holds 3,000,001 shares (2015: 3,000,001 shares) in
the Company.
Samuel Imerman is the settlor and a protector of the Family
Trusts and Hymie Levin is a protector of the Family Trusts.
Separately, Ian Crosby and Niall McCallum are employees of
Stonehage Fleming Trust Holdings (Jersey) Limited, a member of the
Stonehage Fleming group of companies who act as trustees of the
Family Trusts. Ian Crosby and Niall McCallum do not, however, have
any connection with the role that Stonehage Fleming carry out as
trustees of the Family Trusts and, as such, the other directors of
the Company are satisfied that they are "independent" directors of
the Company.
In accordance with the investment advisor agreement, the
Investment Advisor is entitled to receive fees of GBP 450,000 per
annum payable quarterly in arrears, during the year the Investment
Advisor agreed to put the fees on hold until a transaction
occurred. During the year, the Investment Advisor was paid GBP
262,500 (2015: GBP 450,000) in respect of the quarterly retainer
fee, at the year end, GBP nil (2015: GBP nil) remained
outstanding.
11. Commitments and contingencies
The Company has issued 100 warrants to the Founder (the "Founder
Warrant"). The Founder Warrants entitle the Founder in respect of
every one warrant held to subscribe for such number of shares as
shall equal 0.1 per cent of the share capital of the Company on a
fully diluted basis following completion of an acquisition until
the last business day of the month following the month in which an
acquisition was completed for an amount equal to the par value of
those shares issued.
The Company has issued an option to the Founder as disclosed in
note 9.
12. Ultimate controlling party
No single party is considered to be the ultimate controlling
party.
13. Financial risk management
Overview
The Company has exposure to a number of business risks. The
Board of Directors has overall responsibility for the Company's
risk management arrangements. The Company may be exposed to market
risk, credit risk and liquidity risk.
This note presents information on the Company's exposure to each
of the above risks, the Company's objectives, policies and
processes for measuring and managing risk and the management of the
Company's capital.
a) Market risk
Market risk is the risk that the fair value or future cash flows
of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: price
risk, interest rate risk and currency risk.
(i) Price risk
Price risk is the risk that the market prices move unfavourably
and that the fair value of future cash flows that are based on the
market will fluctuate due to changes in the market prices. The
Company is not currently exposed to price risk.
(ii) 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.
Cash flow interest rate risk arises on cash balances held. The
Directors have determined that a fluctuation in interest rate of 50
basis points is reasonably possible. An increase in 50 basis points
in interest rates as at the reporting date would have increased the
profit for the period by GBP 15,039 (2014: GBP 18,665), a decrease
of 50 basis points would have an equal but opposite effect. The
analysis assumes that all other variables remain constant.
(iii) Currency risk
Currency risk is the risk that currency exchange rates move
unfavourably and the assets that the Company owns in currencies
other than its functional currency decrease in value due to
exchange rate movements.
The Company's functional and presentational currency is pounds
sterling, the Company currently holds liabilities in currencies
other than pounds sterling and is therefore exposed to currency
risk.
The Fund's net currency exposure at 31 March 2016 was:
Currency Assets Liabilities Net Exposure
GBP GBP GBP
--------------- ------- ------------ -------------
South African
Rand 1,370 (651) 719
--------------- ------- ------------ -------------
The Fund's net currency exposure at 31 March 2015 was:
Currency Assets Liabilities Net Exposure
GBP GBP GBP
--------------- -------- ------------ -------------
South African
Rand - (9,283) (9,283)
--------------- -------- ------------ -------------
b) Credit Risk
Credit risk is the risk that a counterparty of a financial
instrument will fail to discharge an obligation or commitment that
it has entered into with the Company.
Credit risk arises mainly from cash deposits, cash equivalents
and is accrued income. The Company only deposits cash with major
banks with high quality credit standing, this ensured through
monitoring credit worthiness of the bank using data available from
Standard and Poor's. The current credit ratings of the banks used
by the Company are BAA2 and BA1. The Company reviews its cash
positions and ensures it limits exposure to any one
counterparty.
All banks, custodians and brokers with which the Company will be
doing business may encounter financial difficulties that impair the
operational capabilities or capital position of the Company.
The carrying amount of financial assets represents the Company's
maximum exposure to credit risk. The maximum exposure of each class
of financial asset are as follows:
31/03/2016 31/03/2015
GBP GBP
Other receivables 2 2
Cash and cash equivalents 2,534,325 3,007,823
----------- -----------
2,534,327 3,007,825
----------- -----------
c) Liquidity risk
Liquidity risk is the risk that the Company fails to maintain
adequate levels of financial resources to enable it to meet its
financial obligations as they fall due. Liquidity risk arises
because of the possibility that the Company could be required to
pay its liabilities earlier than expected or because of any
inability to realise assets in order to meet obligations as they
fall due or is only able to realise assets by suffering financial
loss.
The Company's liquidity risk derives from the need to have
sufficient funds available to cover future commitments. The Company
manages liquidity risk through an ongoing review of future cash
requirements. Cash flow forecasts are compared to cash
available.
The carrying amount of financial liabilities represents the
Company's maximum exposure to liquidity risk. The maximum exposure
of each class of financial liability are as follows:
Maturity analysis Less 1 to More
as at 31 March 2016: than 12 than
1 month months 12 months Total
Creditors: Amounts
falling due within GBP GBP GBP
one year GBP
-------------------------- --------- ------- ---------- -------
Audit fees payable - 10,500 - 10,500
Trade and other payables - 28,806 - 28,806
-------------------------- --------- ------- ---------- -------
- 39,306 - 39,306
------------------------------------ ------- ---------- -------
Maturity analysis Less 1 to More
as at 31 March 2015: than 12 than
1 month months 12 months Total
Creditors: Amounts
falling due within GBP GBP GBP
one year GBP
-------------------------- --------- --------- ---------- ---------
Audit fees payable - 10,000 - 10,000
Trade and other payables - 37,430 - 37,430
-------------------------- --------- --------- ---------- ---------
- 47,430 - 47,430
------------------------------------ --------- ---------- ---------
14. Capital risk management
The share capital and share premium is considered to be the
capital of the Company. The Company must maintain sufficient
financial resources, in the opinion of the Directors to meet its
commitments. The Directors monitor the capital of the Company to
ensure that the Company continues as a going concern whilst
ensuring optimal return for the shareholders.
15. Employees
The Company had no employees during the year.
16. Events after the reporting period
There were no significant events to report since the balance
sheet date.
17. Basic earnings / (loss) per share
Basic earnings / (loss) per share is calculated by dividing the
net profit attributable to shareholders by the weighted average
number of ordinary shares outstanding during the year
31/03/2015 31/03/2014
GBP GBP
Net loss attributable to
shareholders (466,000) (730,890)
Weighted average number
of shares in issue 6,000,001 6,000,001
Basic loss per share (0.078) (0.122)
Should the Founder Option have exercised a further 6,000,000
shares would be in issue diluting the loss per shares, the basic
loss per share would have been GBP (0.0388) (2015: GBP
(0.0609).
The headline and diluted headline loss per share are the same as
the loss per share and diluted loss per share.
Enquires:
For further information, please visit the Company's website
www.sacoven.com or contact:
Sacoven PLC Niall McCallum
+44 (0)1534 823000
Liberum Capital Limited Clayton Bush
Nominated Adviser, Financial Christopher Britton
Adviser and Corporate Broker +44 (0)20 3100 2000
KPMG Service Proprietary Limited No contact details
JSE Sponsor
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR LLFLETTITIIR
(END) Dow Jones Newswires
August 08, 2016 11:30 ET (15:30 GMT)
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