Lombard Capital PLC
Final results for the year ended 31 March 2016
I was appointed to the Board of the Company on 15th January 2016, just two and a half months before the financial year end.
I do not propose to dwell on the time before my appointment other than to say that I have instigated a programme of selling non-core assets when the opportunity arises.
I am tasked with revitalising the Company and I have engaged in raising additional finance to support future developments within the financial services sector. To date £45,000 has been raised through the issue of Convertible Unsecured Loan Notes. The holders of the Loan Notes have made written applications to convert all of their Loan Notes into Ordinary Shares and their requests are being processed. Warrant holders have given undertakings to exercise their Warrants to the extent that there will be £75,000 raised by the issue of Ordinary Shares during September 2016. The Board have agreed the sale of an investment asset that will raise a further £23,310 and have discussed the approval of the sale of a second investment asset and await a formal offer.
The Company is currently considering the issuance of a reinsurance based bond to provide bondholders with stable income and limited risk to capital. The Company expects to make an announcement in the near future.
I look forward to the future with enthusiasm and thank all my colleagues and our professionals for their support and advice.
I also thank you all as shareholders for your continuing support.
Lombard Capital PLC
The directors of Lombard Capital Plc accept responsibility for this announcement.
For further information please contact:
Tel: 07718 883813
ISDX Corporate Adviser:
Alfred Henry Corporate Finance Limited
Nick Michaels: 020 7251 3762
The financial information set out below does not constitute the Group’s statutory accounts for the year ended 31 March 2016 but is derived from those accounts.
The financial information has been extracted from the statutory accounts of Lombard Capital Plc and is presented using the same accounting policies, which have not yet been filed with the Registrar of companies, but on which the auditors, Jeffreys Henry LLP, gave an unqualified report on 30 August 2016.
The Annual Report of Lombard Capital Plc for year ended 31 March 2016 is available upon request from the Company’s registered office at 19 Goldington Road, Bedford, England, MK40 3JY.
for the year ended 31 March 2016
|Impairment of investments||(47,388)||-|
|Operating loss and loss before taxation||(167,282)||(80,133)|
|Loss for the year, attributable to owners of the Company||(167,282)||(80,133)|
|Loss per share attributable to owners of the Company during the year||Pence||pence|
|Basic and diluted|
|Total and continuing operations||(8.3)||(4.2)|
Statement of Financial Position
as at 31 March 2016
|Available for sale investments||135,810||235,000|
|Trade and other receivables||7,800||220|
|Cash and cash equivalents||2,668||57,036|
|Total current assets||10,468||57,256|
|Share option reserve||26,320||-|
|Investment revaluation reserve||100,184||151,986|
|Equity attributable to owners of the Company and total equity||97,812||278,326|
|Trade and other payables||48,466||13,930|
|Total equity and liabilities||146,278||292,256|
Statement of Cashflows
for the year ended 31 March 2016
|(Loss)/Profit before tax||(167,282)||(80,133)|
|Impairment of investments – reclassification from reserves||45,698||-|
|Impairment of investments – recognised in the year||1,690||-|
|Share based payment||26,320|
|(Increase)/decrease in trade and other receivables||(7,580)||(220)|
|(Decrease)/increase in trade and other payables||34,536||(15,032)|
|Net cash flow from operating activities||(66,652)||(95,596)|
|Net cash flow from investing activities||34||211|
|Proceeds from issue of shares||12,250||-|
|Net cash flow from financing activities||12,250||-|
|Net (decrease)/increase in cash and cash equivalents||(54,368)||(95,385)|
|Cash and cash equivalents at start of year||57,036||152,421|
|Cash and cash equivalents at the end of the year/period||2,668||57,036|
|Cash and cash equivalents comprise:|
|Cash and cash in bank||2,668||57,036|
|Cash and cash equivalents at end of year/period||2,668||57,036|
Notes to the Financial Statements
for the year ended 31 March 2016
1 General information
Lombard Capital Plc is a limited company incorporated and domiciled in the United Kingdom. The registered office is 19 Goldington Road, Bedford, MK40 3JY.
2 Principal accounting policies
The principal Accounting Policies applied in the preparation of these Financial Statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.
Basis of preparation
The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS), and IFRIC interpretations as adopted in the European Union and as applied in accordance with the provisions of the Companies Act 2006, and under the historical cost convention.
The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumption and estimates are significant to the Financial Statements, are disclosed later in these accounting policies.
The financial statements are presented in sterling (£).
During the period the Company made a loss of £167,282. The cash balance at the year end was £2,668 and no revenue has been generated since the year end, so at the time of signing of these accounts there are insufficient funds for the next 12 months and beyond.
The Chairman’s statement has explained the current fundraising activities, therefore, the directors have formed the opinion that with the eradication of debt and the inflow of funds from the conversion of warrants and the sale of investment assets that the Company will secure adequate funds for the working capital requirements of for the Company in the foreseeable future. Further, this will ensure that adequate arrangements will be in place to enable the settlement of their financial commitments as and when they fall due.
For this reason, the Directors continue to adopt the going concern basis in preparing the financial statements. Whilst there are inherent uncertainties in relation to future events, and therefore no certainty over the outcome of the matters described, the Directors consider that, based on financial projections and dependent on the success of their efforts to complete these activities, the Company will be a going concern for the next 12 months.
Changes in accounting policy
At the date of authorisation of these financial statements the following standards and interpretations were in issue but not yet effective and therefore have not been applied in these financial statements:
IFRS 5 Non current assets held for sale and discontinued operations
IFRS 7 Financial instruments
IFRS 9 Financial instruments
IFRS 10 (amended) Consolidated Financial Statements
IFRS 11 (amended) Joint Arrangements
IFRS 12 (amended) Disclosure of Interests in Other Entities
IFRS 14 Regulatory deferral accounts
IFRS 15 Revenue from Contracts with Customers
IAS 1 (amended) Presentation of Items of Other Comprehensive Income
IAS 16 & 41 (amended) Property, Plant and Equipment
IAS 19 Employee benefits
IAS 27 (amended) Separate Financial Statements
IAS 28 (amended) Investments in Associates and Joint Ventures
IAS16 & 38 (amended) Intangible assets
IAS 34 Interim financial reporting
In addition, there are certain requirements of Improvements to IFRSs which are not yet effective.
The Directors anticipate that the adoption of these standards and interpretations in future periods will have no material impact on the financial statements of the Company.
Key estimates and assumptions
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.
The only estimates and assumptions that may cause material adjustment to the carrying value of assets and liabilities relate to the valuation of unquoted investments. These are valued in accordance with the techniques set out in the accounting policy for ‘Available for sale investments’ on page 11.
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax is the tax currently payable based on taxable profit for the period. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interest in joint ventures, except where the group is able to control the reversal of the temporary difference and it I probable that the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that the temporary difference will not reverse in the foreseeable future.
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 balance sheet date. Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the profit or loss income statement, except where they relate to items that are recognised in other comprehensive income in which case the related deferred tax is also charged or credited directly to equity.
A segment is a distinguishable component of the Company’s activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Company’s chief operating decision maker to make decisions about the allocation of resources and assessment of performance and about which discrete financial information is available.
As the chief operating decision maker reviews financial information for and makes decisions about the Company’s investment activities as a while, the directors have identified a single operating segment, that of investing in or acquiring assets, business or companies in the soft commodities sector.
The Company’s financial assets comprise investments held for trading, associated undertakings, cash and cash equivalents and loans and receivables.
Available for sale Investments
Investments are initially measured at fair value plus incidental acquisition costs. Subsequently they are measured at fair value in accordance with IAS 39. In respect of quoted investments, this is either the bid price at the period end date of the last traded price or the last traded price, depending on the convention of the exchange on which the investment is quote, with no deduction for any estimated future selling cost. Unquoted investments are valued by the directors using primary valuation techniques such as recent transactions, last price and net asset value.
Investments are recognised as available-for-sale financial assets. Gains and losses on measurement are recognised in other comprehensive income except for impairment losses and foreign exchange gains and losses on monetary items denominated in a foreign currency, which are recognised directly in profit or loss. Where the investment is disposed of or is determined to be impaired the cumulative gain or loss previously recognised in other comprehensive income is reclassified to profit or loss.
The Company assesses at each period end date whether there is any objective evidence that a financial assets or group of financial assets classified as available-for-sale has been impaired. An impairment loss is recognised if there is objective evidence that an event or events since initial recognition of the asset have adversely affected the amount or timing of future cash flows from the asset. A significant or prolonged decline in the fair value of a security below its cost shall be considered in determining whether the asset is impaired.
When a decline in the fair value of a financial asset held as available-for-sale has been previously recognised in other comprehensive income and there is objective evidence that the asset is impaired, the cumulative loss is removed from other comprehensive income and recognised in profit or loss. The loss is measured as the difference between the cost of the financial asset and its current fair value less any previous impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and current and deposit balances deposits at banks, 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.
An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received net of direct issue costs.
The share premium account represents premiums received on the initial issuing of the share capital. Any transaction costs associated with the issuing of shares are deducted from share premium, net of any related income tax benefits.
The investment revaluation reserve represents the difference between the purchase costs of the available-for-sale investments less any impairment charge and the market value of those investments at the accounting date.
Retained earnings include all current and prior period results as disclosed in the statement of comprehensive income.
Financial liabilities are recognised in the Company’s balance sheet when the Company becomes a party to the contractual provisions of the instrument. All interest related charges are recognised as an expense in finance cost in the income statement using the effective interest rate method.
The Company’s financial liabilities comprise trade and other payables.
Trade payables are recognised initially at their fair value and subsequently measured at amortised cost less settlement payments.
3 Earnings per share
The basic and diluted earnings per share is calculated by dividing the loss attributable to owners of the Company by the weighted average number of ordinary shares in issue during the year.
|Loss for the purposes of basic and fully diluted loss per share||(167,282)||(80,133)|
|Number of shares|
|Weighted average number of shares for calculating basic and fully diluted earnings per share||
|Earnings per share|
|Basic and fully diluted loss per share||(8.3)||(4.2)|
During the year the company granted 700,000 share options.
After the year end the company issued up to £100,000 warrants.