TIDMBASK

RNS Number : 8421E

Baskerville Capital PLC

03 March 2020

BASKERVILLE CAPITAL PLC

("Baskerville" or "the Company")

Interim Report for the period ended 31 December 2019

Baskerville (BASK) announces its unaudited interim financial results for the six months ended 31 December 2019.

   --    Loss of GBP 83,790 
   --    Cash balances of over GBP1.4m at period end 

Post period end, on 27 January 2020, Baskerville announced the completion of the acquisition of a 7.83% shareholding in Oberon Investments Limited ('Oberon') for GBP850,640 in cash ('Investment'), together with a commitment to subscribe for a further GBP350,945 worth of Oberon shares by no later than 30 April 2020.

Oberon is the holding company of MD Barnard & Co Limited (trading as Oberon Investments), an FCA regulated fund manager. The Investment has been made by Baskerville to assist Oberon in funding and accelerating its acquisition strategy.

In addition to the Investment, Baskerville and Oberon have entered into non-legally binding heads of agreement providing for the acquisition by Baskerville of the entire issued share capital of Oberon not already owned by it ('Proposed Acquisition'). The purchase price of the Proposed Acquisition will be satisfied by the allotment and issue to the sellers of Oberon of new ordinary shares in Baskerville.

The Proposed Acquisition is subject to legal, financial and other due diligence and entry into a legally binding agreement. As no binding agreement has been reached, the Company cannot guarantee that the Proposed Acquisition will complete.

As Baskerville is a cash shell, the Investment is deemed to be a reverse takeover under the Listing Rules. As a result, the Company's shares were suspended on 27 January 2020, pending the publication of a prospectus.

Rodger Sargent, Chairman of Baskerville said: "Oberon has made tremendous progress in the last two years. We are delighted to become part of their success, with this initial investment and agreement to acquire Oberon.

"We believe Oberon can consolidate the booming yet disparate and fragmented UK small fund manager market. Becoming a quoted entity through this reverse acquisition will give Oberon access to the capital markets, accelerating its ambitions of becoming one of the UK's pre-eminent small fund managers.

"We will update as soon as possible with developments of the Proposed Acquisition and re-listing, which we aim to complete in Q2 2020."

For information please contact:

 
 Baskerville Capital                                    www.baskcap.com 
  plc 
 Rodger Sargent                                         via Walbrook PR 
 
 Walbrook PR Ltd       Tel: 020 7933 8780 or baskerville@walbrookpr.com 
 Paul McManus / Nick 
  Rome 
 
 

BASKERVILLE CAPITAL PLC

INTERIM REPORT

FOR THE PERIODED 31 DECEMBER 2019

CHAIRMAN'S STATEMENT

Introduction

I am pleased to present the unaudited interim results for the period ended 31 December 2019. During this interim period, Baskerville recorded a loss of GBP83,790, being the running costs of the Company. Cash assets at period end were over GBP1.4 million with no debts.

Outlook

Post period end, on 27 January 2020 Baskerville announced the completion of the acquisition of a 7.83% shareholding in Oberon Investments Limited ("Oberon") for GBP850,640 in cash ("Investment"), together with a commitment to subscribe for a further GBP350,945 worth of Oberon shares by no later than 30 April 2020.

Oberon is the holding company of MD Barnard & Co Limited (trading as Oberon Investments), an FCA regulated fund manager. The Investment has been made by Baskerville to assist Oberon in funding and accelerating its acquisition strategy.

In addition to the Investment, Baskerville and Oberon have entered into non-legally binding heads of agreement providing for the acquisition by Baskerville of the entire issued share capital of Oberon not already owned by it ('Proposed Acquisition'). The purchase price of the Proposed Acquisition will be satisfied by the allotment and issue to the sellers of Oberon of new ordinary shares in Baskerville.

The Proposed Acquisition is subject to legal, financial and other due diligence and entry into a legally binding agreement. As no binding agreement has been reached, the Company cannot guarantee that the Proposed Acquisition will complete.

On completion of the Proposed Acquisition, it is the Company's intention to seek admission to trading on the NEX Exchange Growth Market ('NEX') although the Company reserves the option to apply for re-admission to the Standard segment of the Main Market or to AIM.

As Baskerville is a cash shell, the Investment is deemed to be a reverse takeover under the Listing Rules. As a result, the Company's shares were suspended on 27 January 2020, pending the publication of a prospectus.

The Company is working to complete the Proposed Acquisition and re-listing as soon as possible.

Rodger Sargent

Chairman

3 March 2020

BASKERVILLE CAPITAL PLC

INTERIM STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIODED 31 DECEMBER 2019

 
                                            Unaudited period       Unaudited period 
                                              to 31 December         to 31 December 
                                                   2019                   2018 
 
                                Notes              GBP                    GBP 
 
Revenue                                2                      -                      - 
                                            -------------------    ------------------- 
Gross profit                                                                         - 
 
General & administrative 
 expenses                                              (85,953)               (57,178) 
                                            -------------------    ------------------- 
Loss from operations before 
 interest                                              (85,953)               (57,178) 
 
Interest income                                           2,163                  4,032 
                                           --------------------   -------------------- 
Loss before tax                                        (83,790)               (53,146) 
 
Tax                                                           -                      - 
                                          ---------------------  --------------------- 
Retained Loss after tax 
 for the period                                        (83,790)               (53,146) 
                                                  =============          ============= 
 
Retained loss attributable 
 to: 
Owners of the company                                  (83,790)               (53,146) 
                                            -------------------    ------------------- 
Loss for period                                        (83,790)               (53,146) 
                                                  =============          ============= 
Total comprehensive loss 
 attributable to: 
Owners of the company                                  (83,790)               (53,146) 
                                          ---------------------  --------------------- 
Total comprehensive loss 
 for the period                                        (83,790)               (53,146) 
                                                  =============          ============= 
 
Loss per share 
Basic and diluted (pence)         3                      (0.18)                 (0.11) 
                                                  =============          ============= 
 
 

BASKERVILLE CAPITAL PLC

INTERIM STATEMENT OF FINANCIAL POSITION

FOR THE PERIODED 31 DECEMBER 2019

 
                                         Unaudited as              Unaudited as at 
                                         at 31 December            31 December 2018 
                                              2019 
 
 
                            Notes                       GBP                          GBP 
ASSETS 
 
Current assets 
Cash and cash equivalents                         1,420,484                    1,538,260 
                                    -----------------------      ----------------------- 
TOTAL CURRENT ASSETS                              1,420,484                    1,538,260 
 
  CURRENT LIABILITIES 
Trade and other payables                           (13,314)                        (194) 
                                   ------------------------     ------------------------ 
TOTAL NET ASSETS                                  1,407,170                    1,538,066 
                                               ============                 ============ 
Share capital                 4                     239,000                      239,000 
Share premium reserve                             1,467,894                    1,467,894 
Share option reserves                                53,252                       53,252 
Retained loss                                     (352,976)                    (222,080) 
                                   ------------------------     ------------------------ 
TOTAL EQUITY                                      1,407,170                    1,538,066 
                                               ============                 ============ 
 
 
 
 

BASKERVILLE CAPITAL PLC

INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31 DECEMBER 2019

 
  For the period ended from 1 July to 31 
   December 2019 
                                      Share    Share 
                          Share     premium   Option     Retained       Total 
                        capital     account  Reserve         loss      equity 
                            GBP         GBP      GBP          GBP         GBP 
 
 As at 1 July 2019      239,000   1,467,894   53,252    (269,186)   1,490,960 
 
 Loss for the period          -           -        -     (83,790)    (83,790) 
 
 Balance at 31 
  December 2019         239,000   1,467,894   53,252   ( 352,976)   1,407,170 
                       ========  ==========  =======  ===========  ========== 
 
 
  For the period ended from 1 July to 31 
   December 2018 
                                      Share    Share 
                          Share     premium   Option    Retained       Total 
                        capital     account  Reserve        loss      equity 
                            GBP         GBP      GBP         GBP         GBP 
 
 As at 1 July 2019      239,000   1,467,894   53,252   (168,934)   1,591,212 
 
 Loss for the period          -           -             (53,146)    (53,146) 
 
 Balance at 31 
  December 2019         239,000   1,467,894   53,252   (222,080)   1,538,066 
                       ========  ==========  =======  ==========  ========== 
 

BASKERVILLE CAPITAL PLC

INTERIM STATEMENT OF CASH FLOW

FOR THE PERIOD ENDED 31 DECEMBER 2019

 
                                                 Unaudited period           Unaudited period 
                                                   to 31 December             to 31 December 
                                                        2019                       2018 
                                                        GBP                        GBP 
Cash flow from operating activities 
Loss for the period                                           (83,790)                   (53,146) 
                                             -------------------------  ------------------------- 
Operating cash flows before movements 
 in working capital                                           (83,790)                   (53,146) 
Interest income                                                (2,163)                    (4,032) 
Increase/(Decrease) in payables                                     76                   (39,428) 
Decrease in receivables                                         14,532                     14,618 
                                                 ---------------------      --------------------- 
Net cash outflow from operating activities                    (71,345)                   (81,988) 
 
Cash flow from investing activities 
Interest income                                                  2,163                      4,032 
                                              ------------------------   ------------------------ 
Net cash flow from investing activities                          2,163                      4,032 
                                              ------------------------   ------------------------ 
 
Net cash outflow for the period                               (69,182)                   (77,956) 
                                                ----------------------     ---------------------- 
 
Cash and cash equivalents at start of 
 period                                                      1,489,666                  1,616,216 
                                               -----------------------    ----------------------- 
Cash and cash equivalents at end of 
 period                                                      1,420,484                  1,538,260 
                                                          ============               ============ 
 
 
 

BASKERVILLE CAPITAL PLC

NOTES TO THE UNAUDITED INTERIM REPORT

FOR THE PERIOD ENDED 31 DECEMBER 2019

   1.    BASIS OF PREPARATION 

The interim financial statements have been prepared on a going concern basis and in accordance with the recognition and measurement principles of International Financial Reporting Standards adopted for use in the European Union ("IFRS"). The interim financial statements for the period ended 31 December 2019 have not been audited and do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. This Interim Financial Report was approved by the Board of Directors on 2(nd) March 2020.

Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ('IAS') 34 - Interim Financial Reporting as adopted by the European Union. Accordingly, the interim financial statements do not include all of the information or disclosures required in the annual financial statements.

   2.         ACCOUNTING POLICIES 

The interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The interim financial statements have been prepared using the measurement bases specified by IFRS for each type of asset, liability, income and expense. The measurement bases are more fully described in the accounting policies below.

Going Concern

The directors have assessed the Company's position as at 31 December 2019 and consider it appropriate to prepare the financial statements on a going concern basis. There are cash reserves of over GBP1.4m which the directors consider sufficient to ensure that the Company will be able to continue to meet its commitments as they fall due for at least twelve months from the date of approval of this interim financial report.

Expenses

All expenses are accounted for on an accruals basis and are presented through the Statement of Comprehensive Income.

Taxation

Current taxation is the taxation currently payable on taxable profit for the period.

Trade and other receivables

Trade and other receivables are recognised and carried at original invoice value less an allowance for any uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when identified.

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.

Trade payables

Trade payables are initially measured at fair value and are subsequently measured at amortised cost, using the effective interest rate method.

Financial instruments

The Company's financial assets comprise cash and cash equivalents.

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.

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.

"Retained losses" represents cumulative net gains and losses recognised in the Statement of Comprehensive Income

   3.    TURNOVER AND SEGMENTAL ANALYSIS 

All of the Company's activity and income and expenses in the period ended 31 December 2019 were incurred in the United Kingdom, and relate to Baskerville's ongoing investment activities.

   4.   LOSS PER SHARE 

The calculation of the basic and diluted earnings per share is based on the following data:

 
                                                         2019         2018 
   Earnings                                               GBP          GBP 
 Earnings for the purpose of basic earnings per 
  share                                              (83,790)     (53,146) 
                                                  -----------  ----------- 
 
 Number of shares 
                                                  -----------  ----------- 
 Weighted average number of ordinary shares in 
  issue                                            47,800,000   47,800,000 
                                                  -----------  ----------- 
 

The denominator for the purpose of calculating the basic earnings per share has been adjusted to reflect all capital raisings.

 
 5.    SHARE CAPITAL                          Number of   Nominal value     Premium (net 
                                                                          of transaction 
                                                                                  costs) 
                                                 shares             GBP              GBP 
       a) Issued and Fully Paid: 
 
      As at 31 December 2018 and 
       2019                                  47,800,000         239,000     GBP1,467,494 
                                         ==============    ============     ============ 
 

The nominal value of the shares is GBP0.005.

The Company has 13,500,000 warrants in issue to the initial shareholders and the directors exercisable at either 2.5 pence or 7.5 pence per share which expire on 2 2 September 2021.

   6.    AVAILABILITY OF INTERIM RESULTS 

Copies of the Interim Results for the period to 31 December 2019 are available from the Company's registered address and will be available on the Company's website, later today.

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

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March 03, 2020 04:37 ET (09:37 GMT)