Interim Results
17 Dezembro 2003 - 5:00AM
UK Regulatory
RNS Number:3410T
Sky Capital Holdings Limited
17 December 2003
Embargoed 0700hrs 17 December 2003
SKY CAPITAL HOLDINGS LIMITED ( "SKY CAPITAL" or the "COMPANY")
INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
CHAIRMAN'S STATEMENT
Sky Capital Holdings, Ltd., has enjoyed its first full six months of trading
both in New York and London through its subsidiaries Sky Capital LLC ("LLC") and
Sky Capital UK Ltd ("UK") respectively. This trading has resulted in significant
growth in revenues for the six-month period ending 30 September 2003. Both gross
and net commission revenue for the six months have increased to $14.5 million
and $ 4.2 million from $ 85,000 and $ 70,000 for the comparable period for the
prior year. Net gains from proprietary trading have also increased to $1.67
million from $ 24,000 for the comparable period for the prior year.
The Company has incurred an operating loss of approximately $ 4.2 million for
the six months ended September 2003, compared with a loss of approximately $ 2.6
million for six months ended September 2002.
During the six months ended 30 September 2003, Sky Capital Holdings incurred $
11.5 million in Stock based compensation and acquisition costs (a non-cash item)
relating to the employment of stock brokers of the Thornwater Company and stock
issued to the Thornwater Company to release these employees from their contracts
of employment. The Stock based compensation expense was $ 364,000 in the
corresponding period of the prior year. The Loss on ordinary activities for 2003
totaled some $ 15.8 million compared with $ 2.9 million for the prior year.
General and Administrative expense for the period totaled $ 10.5 million, and
increase of $ 8 million from the prior year, reflecting the Company's investment
in infrastructure to support future growth, both in the United States and United
Kingdom. General and Administrative expense also includes significant legal and
other professional fees resulting from the Company's successful appeal of the
denial by the NASD of its application to expand in the United States.
The Directors believe that the business of LLC is now well established and are
pleased with the progress made to date in UK. In the case of the later, there is
a clear indication that there has been increased levels of activity in the
market and the broader outlook is positive. Nevertheless the Company is closely
monitoring its cost base in the light of the very rapid expansion which has been
achieved to date.
The Board is confident that further opportunities exist for continued expansion
and to support this anticipated growth Sky Capital has initiated an offer for
subscription of Series B Convertible Preferred shares. I am pleased to announce
that as of 15 December 2003, subscriptions for in excess of 8.5 million shares,
or more than $ 27.3 million, have been received.
Condensed Profit and Loss Account (unaudited)
For the period ended 30 September 2003
6 months ended 6 months ended 12 months ended 31 March
30 September 2003 30 September 2002 2003
$'000 $'000 $'000
Commissions, 4,230 70 4,199
net
Net gain on 1,667 24 1,260
marketable
securities
------------ ------------ -----------
Total 5,897 94 5,459
Revenues
General and (10,500) (2,649) (12,691)
administrative
expenses
------------ ------------ -----------
Operating (4,603) (2,555) (7,232)
profit -
continuing
operations
Stock based (11,447) (364) (725)
compensation/
acquisition
costs
Interest (19) - (22)
payable and
other similar
charges
------------ ------------ -----------
Loss on (16,069) (2,919) (7,979)
ordinary
activities
before
taxation
Tax on - - -
ordinary
activities
------------ ------------ -----------
Loss on (16,069) (2,919) (7,979)
ordinary
activities
after
taxation
Accumulated (7,979) (350) -
deficit
brought
forward
------------ ------------ -----------
(24,048) (3,269) (7,979)
Dividends (204) - -
paid
------------ ------------ -----------
Accumulated (24,252) (3,269) (7,979)
deficit ============ ============ ===========
carried
forward
USD USD USD
Loss per
Share
Basic 0.65 0.22 0.51
============ ============ ===========
Condensed Balance Sheet (unaudited)
As at 30 September 2003
30 September 2003 30 September 2002 31 March
2003
$'000 $'000 $'000
Fixed Assets
Intangible assets 1,748 - 1,748
Tangible assets 1,985 941 1,639
----------- ---------- ---------
3,733 941 3,387
----------- ---------- ---------
Current Assets
Debtors 3,118 1,101 1,171
Prepaid expenses and other 2,053 876 1,370
assets
Cash at bank and in hand 2,125 2,233 1,254
----------- ---------- ---------
7,296 4,210 3,795
Creditors
Amounts falling due within (3,744) (257) (1,633)
one year ----------- ---------- ---------
Net current assets 3,552 3,953 2,162
----------- ---------- ---------
Total assets less current 7,285 4,894 5,549
liabilities =========== ========== =========
Share capital and
reserves
Common stock 1 17 2
Preferred stock 1 - -
Additional 45,551 9,821 14,723
paid-in-capital
Accumulated deficit (24,252) (3,269) (7,979)
Unearned stock based (14,016) (1,675) (1,197)
expense ----------- ---------- ---------
Equity Shareholders' 7,285 4,894 5,549
funds =========== ========== =========
Condensed Cash Flow Statement (unaudited)
For the period ended 30 September 2003
6 months ended 6 months ended
30 September 30 September 12 months ended
2003 2002 31 March 2003
$'000 $'000 $'000
Net loss (16,069) (3,269) (7,979)
Cash inflow/ 2,899 (314) 704
(outflow)
from
operating
activities
Cash inflow/ (1,367) (1,372) (1,888)
(outflow)
from
investing
activities
Cash inflow/ 15,511 7,183 10,309
(outflow)
from
financing
activities
----------- ----------- -----------
Net increase 974 2,228 1,146
/(decrease)
in cash
Beginning 1,151 5 5
cash
----------- ----------- -----------
Cash and 2,125 2,233 1,151
cash =========== =========== ===========
equivalents
at end of
period
Notes to the Interim Results
1. Basis of Preparation
The results for the six months ended 30th September 2003 are
unaudited and have not been reviewed by any independent auditors. They have been
prepared on accounting bases and policies that are consistent with those used in
the preparation of the financial statements of the company for the period ended
31st March 2003, applied on a consistent basis and in conformity with United
States generally accepted accounting principles.
The financial statements contained in this report do not constitute statutory
accounts within the meaning of Section 248 of the Companies (Northern Ireland)
Order 1986 (as amended by Article 12 of the Companies (Northern Ireland) Order
1990). The results for the period ended 31st March 2003 were reported on by the
auditors and received an unqualified audit opinion. Full accounts for the period
ended 31st March 2003 have been delivered to the Registrar of Companies.
2. Dividends
A dividend of $204,000 was declared on Series A Preferred Stock on
30 September 2003 and paid on 1 October 2003.
3. Earnings per Share
The earnings per share for the six months ended 30th September 2003 has been
calculated on the basis of the profit after taxation on a fully diluted basis.
The calculation of earnings per share is based on the loss on ordinary
activities. Earnings per share have been calculated based on 24,114,487 shares
outstanding.
For further information please contact,
Ross Mandell, CEO
Sky Capital Holdings Limited
Tel. +212 709 1900
Adam Reynolds / Ben Simons
Hansard Communications
Tel. +44 (0)20 7245 1100
This information is provided by RNS
The company news service from the London Stock Exchange
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