RNS Number:3621N
Clerkenwell Ventures PLC
06 December 2006
Clerkenwell Ventures PLC - Unaudited Preliminary Results
Unaudited Preliminary Results
for the year ended 30 September 2006
Clerkenwell Ventures PLC (Clerkenwell Ventures or the Company) announces its
preliminary results for the year ended 30 September 2006.
Highlights :
• Net cash as at 30 September 2006 of £4.3 million (2005: £4.3 million)
• Profit before taxation for the year ended 30 September 2006 of £51,000
(2005: £77,000)
David Page, Chairman, commented:
We continue to evaluate interesting investment opportunities in businesses with
high growth potential.
Enquiries
Clerkenwell Ventures PLC
David Page, Non-executive Chairman Telephone: 07836 346934
Seymour Pierce Limited
Richard Feigen Telephone: 020 7107 8000
Gainsborough Communications
Julian Walker Telephone: 020 7190 1705
Clerkenwell Ventures PLC
Unaudited Preliminary Results
for the period ended 30 September 2006
Chairman's Statement
It gives me great pleasure to report the results of Clerkenwell Ventures for the
year to 30 September 2006.
Acquisition strategy
The Company's acquisition strategy, as described in the Company's AIM admission
document dated 25 October 2004, is guided by the following criteria:
•The businesses should have the potential for rapid growth and/or above
average cashflow;
•Strong operational management, capable of forming the executive board of
the Company; and
•A proven business model and attractive returns on capital invested.
The Directors, with their experience and contacts in the corporate finance and
leisure sectors, have identified and investigated a number of businesses which
could be reversed into the Company.
Results
Profit before taxation for the year ended 30 September 2006 was £51,000 (2005:
£77,000). As at 30 September 2006, Clerkenwell Ventures' net cash balances
amounted to £4.3 million (2005: £4.3 million).
Dividends
As described in the Company's AIM admission document dated 25 October 2004, it
is the Board's policy that prior to making the first acquisition, no dividends
will be paid. Following the first acquisition, subject to the availability of
distributable reserves, dividends will be paid to shareholders when the
Directors believe it is appropriate and prudent to do so. However, the main
focus of the Company will be in delivering capital growth for shareholders.
Outlook
We continue to evaluate interesting investment opportunities in businesses with
high growth potential and will update the market when appropriate.
David Page
Non-executive Chairman
6 December 2006
Clerkenwell Ventures PLC
Unaudited Profit and Loss Account
for the year ended 30 September 2006
Notes Year ended Period from
30 September 13 May 2004 to
2006 30 September
£'000 2005
£'000
Administrative expenses (148) (105)
Operating loss (148) (105)
Interest receivable 199 182
Profit on ordinary activities before
taxation 51 77
Taxation on profit on ordinary 2 (17) (16)
activities
Profit for the year 34 61
Earnings per share
Basic 3 0.05p 0.13p
Diluted 3 0.05p 0.12p
All the Company's activities derive from continuing operations.
No separate Statement of Total Recognised Gains and Losses has been presented as
all such gains and losses have been dealt with in the profit and loss account.
Clerkenwell Ventures PLC
Unaudited Balance Sheet
as at 30 September 2006
Notes 2006 2005
£'000 £'000
Current assets
Debtors 18 9
Cash at bank and in hand 4,345 4,320
4,363 4,329
Creditors: amounts falling due within one year (80) (80)
Net current assets 4,283 4,249
Net assets 4,283 4,249
Capital and reserves
Called-up share capital 689 689
Share premium 3,499 3,499
Profit and loss account 95 61
Equity shareholders' funds 4 4,283 4,249
Clerkenwell Ventures PLC
Unaudited Cash Flow Statement
for the period ended 30 September 2006
Notes Year ended Period from
30 13 May 2004 to
September 30 September
2006 2005
£'000 £'000
Net cash out flow from operating 5a (145) (46)
activities
Returns on investments and servicing of
finance 192 178
Taxation (22) -
Cash inflow before management of liquid
resources and financing 25 132
Management of liquid resources 5b (188) (4,156)
Financing 5c - 4,188
(Decrease)/increase in cash in the year (163) 164
Reconciliation of net cash flow to movement in net funds
Notes Year ended Period from
30 13 May 2004 to
September 30 September
2006 2005
£'000 £'000
(Decrease)/increase in cash in the year (163) 164
Cash flow from increase in liquid 188 4,156
resources
Movement in net funds in the year 25 4,320
Net funds at the beginning of the year 4,320 -
Net funds at end of the year 5d 4,345 4,320
Clerkenwell Ventures PLC
Notes to the Unaudited Preliminary Results
for the period ended 30 September 2006
1. Basis of preparation
The preliminary results have been prepared under the historical cost convention
and in accordance with applicable United Kingdom accounting standards.
2. Taxation
Year ended Period from
30 September 13 May 2004
2006 to 30 September
£'000 2005
£'000
Based on the result for the year:
UK corporation tax at 19% (2005: 19%) 11 16
Under provision in earlier years 6 -
Total current tax 17 16
Deferred taxation:
Origination and reversal of timing - -
differences
Taxation payable 17 16
3. Earnings per share
Basic earnings per ordinary share is based on the profit for the period of
£34,000 (2005: £61,000) and on 68,911,145 (2005: 47,815,224) ordinary shares of
1p each being the weighted average number of ordinary shares in issue during the
period.
Diluted earnings per share is based on the profit for the period of £34,000
(2005: £61,000) and on 70,504,065 (2005: 50,227,106) shares of 1p each being the
weighted average number of shares in issue during the period after allowing for
the dilutive effect of the conversion into ordinary shares of options
outstanding during the period.
4. Reconciliation of movements in equity shareholders' funds
2006 2005
£'000 £'000
Ordinary shares issued (net of flotation expenses) - 4,188
Profit for the financial period 34 61
Net addition to shareholders' funds 34 4,249
Opening shareholders' funds 4,249 -
Closing shareholders' funds 4,283 4,249
5. Notes to the cash flow statement
a.Reconciliation of operating loss to net cash outflow from operating activities
Year Period
ended from
30 September 13 May 2004
2006 to 30
September
£'000 2005
£'000
Reconciliation of operating loss to net cash outflow
from operating activities
Operating loss (148) (105)
Increase in debtors (2) (5)
Increase in creditors 5 64
Net cash outflow from operating activities (145) (46)
b. Management of liquid resources
Year ended Period from
30 September 13 May 2004
2006 to 30 September
£'000 2005
£'000
Increase in short term deposits (188) (4,156)
Net cash outflow from management of liquid
resources (188) (4,156)
c. Financing
Year ended Period from
30 September 13 May 2004
2006 to 30 September
£'000 2005
£'000
Gross proceeds of ordinary shares issued - 4,373
Issue costs - (185)
Net cash inflow from financing - 4,188
d. Analysis of net funds
At Cash flow At
1 October £'000 30 September
2005 2006
£'000 £'000
Cash in hand, at bank 164 (163) 1
Short term deposit 4,156 188 4,344
Total net funds 4,320 25 4,345
Cash at bank and in hand of £4,345,000 on the company's balance sheet includes
short term deposits of £4,344,000 which are not classified as cash under FRS1
for the purposes of the cash flow statement.
6. Report and accounts
The financial information set out in this preliminary announcement, which was
approved by the Board on 6 December 2006, is unaudited and does not constitute
the Company's statutory accounts for the year ended 30 September 2006, but is
derived from those accounts.
The statutory accounts for the year ended 30 September 2006 will be prepared
following accounting policies consistent with those set out in the statutory
accounts for the period ended 30 September 2005.
The statutory accounts for the year ended 30 September 2006 will be finalised on
the basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the Company's annual general meeting.
7. Further copies
The statutory accounts for the period will be posted to shareholders in due
course and further copies will be available, free of charge, for a period of one
month following posting to shareholders from the registered office of the
Company or the Company's Nominated Adviser and Broker, Seymour Pierce Limited,
Bucklersbury House, 3 Queen Victoria Street, London, EC4N 8EL, Telephone: 020
7107 8000.