Alpha Strategic Regulatory News Announcement
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Alpha Strategic PLC - Interim Results
RNS Number:6953V
Alpha Strategic PLC
15 December 2005
15 December 2005
Alpha Strategic PLC
('Alpha Strategic' or the 'Company')
Interim Results for the period ended 30th September 2005
Chairman's Statement
I am pleased to present the first results for Alpha Strategic covering the
period from incorporation to 30th September
2005.
The Company was admitted to AIM on 11th August 2005 through an initial placing
of 2,950,000 ordinary shares of 1p each
at a placing price of £1 per share.
In the AIM admission document, the directors stated that our objective was to
acquire stakes in, and/or enter into
joint ventures with, hedge fund management firms primarily using the Company's
ordinary shares as consideration. We
intend to build a portfolio of holdings in hedge fund management firms to
provide an income stream with strong growth
and which should perform in most market conditions. The Company is actively
looking for suitable investments.
Since admission we have held talks with a number of potential partners which
have been positive and we are actively
seeking to move these negotiations further. No firm commitments have been made
by either side. We have been pleased by
the response of the hedge fund industry to our operational model and approach,
and remain confident of reaching our
objective.
In financial terms the flotation was executed in a satisfactory fashion with
costs being held below expectations. Since
that date we have sought to maximise earnings from our cash by investing in a
sterling currency fund, and minimise
administrative costs, and I am pleased to report that we are well below our
budgeted spending plans. The loss for the
short period to 30th September 2005 of £106,000 is therefore lower than
anticipated.
There are two further developments which should be brought to your attention.
First, during the period, Nicola Meaden was appointed to the Board as a
non-executive director on 4th October 2005.
Nicola brings a wealth of experience and contacts after many years in the hedge
fund industry and she has already
proven extremely helpful to our plans.
Second, in the working capital forecasts prepared as part of the admission
process, we had forecast premises costs of
£116,000. Following a review of the market, and negotiations on suitable office
space we became dissatisfied at the
comparative expense and long term commitment required. Following consultation
with the non-executive directors however,
I have reached an agreement with the company to occupy premises owned by me on
licence, and have included an element of
secretarial and administrative support services within the licence for a total
cost of £40,000 per annum. The licence
is terminable by one months notice by either party. This represents a
significant saving for shareholders without any
long term obligation, and on the basis that this is considered to be a 'related
party' transaction under the AIM Rules,
all the directors, with the exception of me, having consulted with Strand
Partners Limited consider that the terms of
the transaction are fair and reasonable insofar as its shareholders are
concerned.
The Board is pleased with progress to date and looks forward to the future with
confidence.
Colin Barrow, Chairman.
15th December 2005
Profit and Loss Account Notes Period from
Incorporation
to 30th
September 2005
For the period ended 30th September 2005 (Unaudited)
£'000
Administrative
expenses (112)
-------
Operating Loss (112)
Interest receivable
and similar income 6
-------
Loss on ordinary
activities before
and after tax 4 (106)
=====
Loss per share
(pence) 2 (3.5)p
Balance Sheet Notes 30th September
2005
As at 30th September 2005 (Unaudited)
£'000
Current assets
Debtors 57
Cash 166
Investments 3 2,500
-------
2,723
Creditors: Amounts
falling due within
one year (100)
-------
Net current assets 2,623
-------
Total assets less
current liabilities
and net assets 2,623
=====
Capital and Reserves
Called up share
capital 4 80
Share Premium
Account 4 2,649
Profit and Loss
Account 4 (106)
-------
Equity Shareholders
Funds 2,623
=====
Reconciliation of movement in equity shareholders Period from
funds Incorporation
to 30th
September 2005
(Unaudited)
£'000
Loss for the
financial period (106)
Issue of ordinary
shares 2,950
Issue of A shares 50
Share issue
expenses (271)
-------
2,623
Equity shareholders funds at the start of the period Nil
-------
Equity shareholders
funds at the end of
the period 2,623
=====
Cash Flow statement for the period ended 30th September Notes Period from
2005 Incorporation
to 30th
September 2005
(Unaudited)
£'000
Net cash outflow
from operating
activities 5 (69)
Net cash inflow
from returns on
investment and
servicing of
finance 6
Management of liquid resources
Purchase of
investments (2,500)
-------
Net cash outflow
before financing (2,563)
Financing
Issue of A shares 50
Issue of ordinary
shares 2,950
Share issue costs (271)
-------
2,729
-------
Increase in cash 166
=====
Reconciliation of net cash flow to movement in net cash Period from
Incorporation
to 30th
September 2005
(Unaudited)
£'000
Increase in cash 166
-------
Change in net cash from
cash flows 166
Opening net cash Nil
-------
Closing net cash 166
=====
Notes to the interim results
for the period ended 30th September 2005
1. Basis of preparation
The interim results were approved by the directors on 14th December 2005. The
interim results have been prepared in accordance with UK accounting standards
and in accordance with the Companies Act 1985. However the interim results are
unaudited and do not constitute statutory accounts within the meaning of section
240 of the Companies Act 1985.
2. Loss per share
The loss per share is calculated on the loss on ordinary activities after tax of
£106,000 and using the weighted average number of ordinary shares in issue
during the period of 3,000,000.
3. Investments
During the period the Company has used the £2,500,000 of the cash raised during
the flotation to purchase shares in a sterling currency fund in order to
maximize earnings. At 30th September the value of this holding has risen to
£2,510,799.
4. Share capital and reserves
Ordinary Shares A Shares Share premium Profit & loss
account
£'000 £'000 £'000 £'000
On incorporation - - - -
Allotments
during the
period 30 50 2,920
Share issue
expenses (271)
Retained loss
for the period (106)
------- ------- ------- -------
At 30th
September 30 50 2,649 (106)
===== ===== ===== =====
5. Reconciliation of operating loss to cash flows
Period from
Incorporation
to 30th
September 2005
(Unaudited)
£'000
Operating loss (112)
Movement in debtors (57)
Movement in creditors 100
-------
Net cash outflow from
operating activities (69)
====
6. Related party transactions
During the period, the company has accounted for costs of £10,000 for use of
services and occupation of premises owned by Colin Barrow, a director of the
Company.
During the period the company has paid £492 to County Asset Finance Limited, a
company controlled by Kit Malthouse, a director of the Company. This represents
a recharge of costs incurred in use of County Asset Finance's Companies House
account, and was recharged at cost.
7. Copies of the results
Copies of the interim results will be sent to shareholders in due course and can
be obtained by contacting the company secretary at London House, 8 Barton
Street, London SW1P 3NE.
End
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