TIDMMDS 
 
RNS Number : 4754J 
Midas Capital PLC 
31 March 2010 
 

 
 
News Release 
31 March 2010 
 
Midas Capital announces preliminary results for the year to 31 December 2009 
 
Midas Capital plc, the AIM quoted company Fund Management company, announces its 
preliminary results for the year ended 31 December 2009. 
 
Salient points 
 
· ?Group refocused on Fund Management during 2009 and early 2010 with disposals 
of Intelli Corporate Finance in October 2009, iimia Wealth Management in January 
2010, and exchanged on the disposal of its international Fund Management 
subsidiaries on 30 March 2010. 
 
·     Loss from continuing operations before tax of GBP2.2 million (2008 GBP56.7 
million) 
 
·   Adjusted profit on continuing operations of GBP5.3 million (2008 GBP6.4 
million) includes other operating income but is before tax, net finance costs 
exceptional items, share based payments and amortisation 
 
·     Diluted Adjusted earnings per share on continuing operations of 6.36p 
(2008: 6.10p) 
 
·     Non cash impairment charge of GBP9.4 million (2008 GBP55.6 million) 
 
·     Shareholders' funds of GBP33.8 million (2008 GBP39.4 million) 
 
 
Operational Highlights 
 
·     Funds under Management & Advice for continuing businesses GBP1.5 billion 
(2008 - GBP1.4 billion) 
 
 
Colin Rutherford, Chairman and Chief Executive Officer, Midas Capital plc, says: 
 
"The past year has seen the Group pursue its strategy of selling non core 
activities  to focus on its multi-asset Fund Management offering.  The disposals 
of Intelli, iimia Wealth Management and international Fund Management 
subsidiaries will allow the Group to concentrate on organic growth, further 
reductions in gearing and protecting and building Shareholder value. 
 
"The market in 2010 looks set to pose challenges however, I believe that our 
business is now well placed with our mix of products, experience and young 
talent to build our position as a major player in the multi-asset Fund 
Management sector." 
 
 
 
 
For further information, please contact: 
 
Colin Rutherford, Chairman & Chief Executive, Midas Capital           07768 053 
054 
Roland Cross, Director, Broadgate Mainland 
020 7726 6111 
James Steel, Director, Arbuthnot Securities 
 020 7012 2000 
 
Web:  midascapital.co.uk 
Chairman's statement 
 
 
Progress 
 
The year ended 31 December 2009 witnessed remarkable UK equity market 
resilience, albeit on lower volumes, amid prevailing global political and 
economic uncertainty.  Upper quartile performance returned to our main funds in 
Liverpool whilst a more conservative asset allocation in Reading attracted 
significant inflows particularly into Special Situations. 
 
In parallel our central team executed the next phase of our strategy with 
conviction and our Group now consists of two trading locations, Liverpool and 
Reading, focused on growing our multi-asset Fund Management activities. The 
Group is now shorn of non-core Corporate Advisory, Wealth Management and 
exchanged on the disposal of International Fund Management with effect from 30 
March 2010. 
 
Statutory results and trading performance 
 
The continuing Group made an underlying adjusted profit before tax, net finance 
costs, amortisation, impairment, share based payments and exceptional items of 
GBP5.3 million (2008 GBP6.4 million) on revenue of GBP17.5 million (2008 GBP19.3 
million). 
 
The Group's Funds under Management for ongoing activities (FUM) amounted to 
GBP1.5 billion (2008 GBP1.4 billion) net of the transfer of GBP638 million of 
mixed discretionary and advisory business following the disposal of Wealth 
Management and GBP62 million of assets managed by the International Fund 
Management division.  The Group has continued to mitigate costs and we 
anticipate further savings in the year ahead. 
 
Whilst our internal earnings forecast is based upon our view of an improved 
outlook in the carrying value of our Fund Management business year on year, in 
line with current industry average growth rates, we have decided to make a 
further measured non cash impairment charge of GBP9.4 million (2008:GBP55.6 
million).  After this additional impairment charge, the Group made a loss on 
continuing activities before taxation of GBP2.2 million (2008: loss GBP56.7 
million), and an overall loss after taxation and the results of discontinued 
activities of GBP7.0 million (2008: loss GBP55.9 million). 
 
Corporate activity and proposed capital reconstruction 
 
As reported previously, we have sold our Corporate Advisory, Wealth Management 
and latterly exchanged on the disposal of our International Fund Management 
activities.  The Corporate Advisory disposal allowed us to retire GBP2.4 million 
of Preference Capital.  We aim to utilise the net proceeds of our other two 
disposals post year end and any related surplus working capital in the Group to 
retire a significant part of our remaining Preference Share capital.  To assist 
retiring the remaining balance ahead of the July 2016 redemption date, and to 
restore our ability to pay dividends in due course, we shall be pursuing a 
capital reconstruction in the near term. 
 
Personnel 
 
The January awards under the Management Incentive Plan (MIP), approved by 
Shareholders at the General Meeting in June 2009, have been well received both 
internally and externally.  We have also overhauled our remuneration structure 
to provide fair reward for the key value drivers in our Fund Management and 
Distribution activities.  We are committed to developing our younger talent pool 
and we anticipate additions to our team as we broaden our product range and 
selling activities. 
 
Future prospects 
 
The uncertain economic outlook continues to present significant trading 
challenges, however we are now benefitting from net creations and are turning 
our attention to our next phase of organic growth.  Our value proposition being 
clear, we also aim to further reduce our gearing whilst protecting and building 
Shareholder value.  We may also be opportunistic as we grow, but not at the 
expense of our focus. 
 
I would like to thank everyone in our team, our Board, Advisors and of course 
Bankers for their continued support.  We have made excellent progress during the 
last twelve months and entered the new financial year in a much stronger 
position. 
 
 
 
 
Colin Rutherford 
Chairman and Chief Executive Officer 
30 March 2010 
 
 
 
Consolidated income statement for the year ended 31 December 2009 
 
 
+---------------------------------------------+----+----------+-------------+ 
|                                             |    |          | (restated)* | 
|                                             |    |     2009 |        2008 | 
|                                             |    |  GBP'000 |     GBP'000 | 
+---------------------------------------------+----+----------+-------------+ 
|                                             |    |          |             | 
+---------------------------------------------+----+----------+-------------+ 
| Revenue                                     |    |   17,544 |      19,292 | 
+---------------------------------------------+----+----------+-------------+ 
|                                             |    |          |             | 
+---------------------------------------------+----+----------+-------------+ 
| Administrative expenses                     |    |          |             | 
+---------------------------------------------+----+----------+-------------+ 
| Other operating expenses                    |    | (12,237) |    (12,896) | 
+---------------------------------------------+----+----------+-------------+ 
| Share based payments                        |    |     (70) |       (284) | 
+---------------------------------------------+----+----------+-------------+ 
| Amortisation                                |    |  (2,968) |     (3,060) | 
| Impairment                                  |    |  (9,411) |    (55,609) | 
+---------------------------------------------+----+----------+-------------+ 
| Exceptional operating expense               |    |        - |     (1,285) | 
+---------------------------------------------+----+----------+-------------+ 
|                                             |    |          |             | 
+---------------------------------------------+----+----------+-------------+ 
| Total administrative expenses               |    | (24,686) |    (73,134) | 
+---------------------------------------------+----+----------+-------------+ 
|                                             |    |          |             | 
+---------------------------------------------+----+----------+-------------+ 
| Operating loss from continuing operations   |    |  (7,142) |    (53,842) | 
+---------------------------------------------+----+----------+-------------+ 
|                                             |    |          |             | 
+---------------------------------------------+----+----------+-------------+ 
| Exceptional gain on restructuring           |    |    7,196 |           - | 
+---------------------------------------------+----+----------+-------------+ 
| Finance revenue                             |    |        5 |         221 | 
+---------------------------------------------+----+----------+-------------+ 
| Finance costs                               |    |  (2,306) |     (3,055) | 
+---------------------------------------------+----+----------+-------------+ 
|                                             |    |          |             | 
+---------------------------------------------+----+----------+-------------+ 
| Loss for the year from continuing           |    |  (2,247) |    (56,676) | 
| operations before taxation                  |    |          |             | 
+---------------------------------------------+----+----------+-------------+ 
| Taxation                                    |    |      216 |       1,167 | 
+---------------------------------------------+----+----------+-------------+ 
|                                             |    |          |             | 
+---------------------------------------------+----+----------+-------------+ 
| Loss for the year from continuing           |    |  (2,031) |    (55,509) | 
| operations                                  |    |          |             | 
+---------------------------------------------+----+----------+-------------+ 
|                                             |    |          |             | 
+---------------------------------------------+----+----------+-------------+ 
| Discontinued operations                     |    |          |             | 
+---------------------------------------------+----+----------+-------------+ 
| Loss for the year from discontinued         |    |  (4,983) |       (354) | 
| operations                                  |    |          |             | 
+---------------------------------------------+----+----------+-------------+ 
|                                             |    |          |             | 
+---------------------------------------------+----+----------+-------------+ 
| Loss for the year attributable to equity    |    |  (7,014) |    (55,863) | 
| holders of the parent                       |    |          |             | 
+---------------------------------------------+----+----------+-------------+ 
 
 
+----------------------------------------------+--+---------+----------+ 
|                                              |  |   pence |    pence | 
+----------------------------------------------+--+---------+----------+ 
| Earnings per share                           |  |         |          | 
+----------------------------------------------+--+---------+----------+ 
|                                              |  |         |          | 
+----------------------------------------------+--+---------+----------+ 
| -       basic                                |  | (11.07) | (109.57) | 
+----------------------------------------------+--+---------+----------+ 
| -       diluted                              |  |         |          | 
+----------------------------------------------+--+---------+----------+ 
|                                              |  | (11.07) | (109.33) | 
|                                              |  |         |          | 
+----------------------------------------------+--+---------+----------+ 
| Earnings per share from continuing           |  |         |          | 
| operations                                   |  |         |          | 
+----------------------------------------------+--+---------+----------+ 
|                                              |  |         |          | 
+----------------------------------------------+--+---------+----------+ 
| -       basic                                |  |  (3.20) | (108.87) | 
+----------------------------------------------+--+---------+----------+ 
| -       diluted                              |  |         |          | 
+----------------------------------------------+--+---------+----------+ 
|                                              |  |  (3.20) | (108.64) | 
|                                              |  |         |          | 
+----------------------------------------------+--+---------+----------+ 
 
*Certain numbers shown here do not correspond to the 2008  financial statements 
and reflect restatements made as detailed in Notes to the financial statements. 
 
Consolidated Balance sheet as at 31 December 2009 
 
+----------------------------------------+----------+---------+---------+ 
|                                        |          |    2009 |    2008 | 
|                                        |          | GBP'000 | GBP'000 | 
+----------------------------------------+----------+---------+---------+ 
| Non-current assets                     |          |         |         | 
+----------------------------------------+----------+---------+---------+ 
| Goodwill                               |          |  34,544 |  50,819 | 
+----------------------------------------+----------+---------+---------+ 
| Intangible assets                      |          |  21,946 |  25,239 | 
+----------------------------------------+----------+---------+---------+ 
| Property and equipment                 |          |     119 |     911 | 
+----------------------------------------+----------+---------+---------+ 
| Financial assets                       |          |       - |     408 | 
+----------------------------------------+----------+---------+---------+ 
| Deferred tax assets                    |          |      48 |      85 | 
+----------------------------------------+----------+---------+---------+ 
|                                        |          |  56,657 |  77,462 | 
+----------------------------------------+----------+---------+---------+ 
| Current assets                         |          |         |         | 
+----------------------------------------+----------+---------+---------+ 
| Trade and other receivables            |          |   2,165 |   3,130 | 
+----------------------------------------+----------+---------+---------+ 
| Income tax receivables                 |          |     485 |   1,240 | 
+----------------------------------------+----------+---------+---------+ 
| Cash and cash equivalents              |          |   2,448 |   9,379 | 
+----------------------------------------+----------+---------+---------+ 
|                                        |          |   5,098 |  13,749 | 
+----------------------------------------+----------+---------+---------+ 
| Assets classified as held for sale     |          |   7,892 |       - | 
+----------------------------------------+----------+---------+---------+ 
| Total Assets                           |          |  69,647 |  91,211 | 
+----------------------------------------+----------+---------+---------+ 
| Current liabilities                    |          |         |         | 
+----------------------------------------+----------+---------+---------+ 
| Trade and other payables               |          |   1,438 |   2,651 | 
+----------------------------------------+----------+---------+---------+ 
| Financial liabilities                  |          |   1,153 |  38,657 | 
+----------------------------------------+----------+---------+---------+ 
| Income tax payable                     |          |   1,098 |   2,001 | 
+----------------------------------------+----------+---------+---------+ 
| Provisions                             |          |     409 |     560 | 
+----------------------------------------+----------+---------+---------+ 
|                                        |          |   4,098 |  43,869 | 
+----------------------------------------+----------+---------+---------+ 
| Non-current liabilities                |          |         |         | 
+----------------------------------------+----------+---------+---------+ 
| Financial liabilities                  |          |  23,761 |     931 | 
+----------------------------------------+----------+---------+---------+ 
| Deferred tax liabilities               |          |   6,147 |   7,052 | 
+----------------------------------------+----------+---------+---------+ 
| Provisions                             |          |     583 |       - | 
+----------------------------------------+----------+---------+---------+ 
|                                        |          |  30,491 |   7,983 | 
+----------------------------------------+----------+---------+---------+ 
| Liabilities associated with the assets |          |   1,235 |       - | 
| classified as held for sale            |          |         |         | 
+----------------------------------------+----------+---------+---------+ 
| Total liabilities                      |          |  35,824 |  51,852 | 
+----------------------------------------+----------+---------+---------+ 
| Net assets                             |          |  33,823 |  39,359 | 
+----------------------------------------+----------+---------+---------+ 
|                                        |          |         |         | 
+----------------------------------------+----------+---------+---------+ 
| Equity                                 |          |         |         | 
+----------------------------------------+----------+---------+---------+ 
| Share capital                          |          |   5,746 |   5,733 | 
+----------------------------------------+----------+---------+---------+ 
| Share premium                          |          |  18,902 |  10,434 | 
+----------------------------------------+----------+---------+---------+ 
| Treasury shares                        |          |    (32) |    (83) | 
+----------------------------------------+----------+---------+---------+ 
| Merger reserve                         |          |       - |  12,503 | 
+----------------------------------------+----------+---------+---------+ 
| Warrant reserve                        |          |     176 |       - | 
| Capital redemption reserve             |          |   2,438 |       - | 
+----------------------------------------+----------+---------+---------+ 
| Retained earnings                      |          |   6,593 |  10,772 | 
+----------------------------------------+----------+---------+---------+ 
| Total equity                           |          |  33,823 |  39,359 | 
+----------------------------------------+----------+---------+---------+ 
 
 
 
 
Consolidated Cash Flow Statement for the year ended 31 December 2009 
 
                                  2009               2008 
 
                                  GBP'000              GBP'000 
Operating activities 
Loss for the year 
                        (7,014)          (55,863) 
 
 
                                                               ----------- 
                    ----------- 
Adjustments to reconcile operating profit to net cash flow 
  from operating activities: 
Tax on discontinued operations 
                   (324)               (351) 
Tax on continuing operations 
                     (216)            (1,167) 
Net finance cost 
                          2,291              2,643 
Depreciation 
                               195                304 
Amortisation and impairment of intangible assets 
          16,015            58,854 
Share based payments expense 
                 (34)                  492 
(Increase)/decrease in trade and other receivables 
             (471)              1,428 
Decrease in trade and other payables 
              (1,519)              (383) 
Impairment of land and buildings 
                      160                     - 
Movement in provisions 
                         432                 560 
Profit on disposal of subsidiaries before impairment 
             (767)                     - 
Exceptional gain on restructuring 
                 (7,196)                     - 
Movements in investments at fair value through profit or loss 
           173                 267 
 
 
                                                                  ----------- 
                      ----------- 
Cash generated from operations 
                  1,725              6,784 
Income tax paid 
                          (955)                (51) 
 
 
                                                                 ----------- 
                       ----------- 
Net cash flow from operating activities 
                770              6,733 
 
 
                                                                  ----------- 
                       ----------- 
Investing activities 
Interest received 
                                25                436 
Purchase of property and equipment 
                  (29)              (124) 
Purchase of intangible assets 
                        (5)                (17) 
Proceeds from disposal of investments 
                   58                     - 
Purchase of subsidiaries, net of cash and costs of acquisition 
              -          (58,664) 
Proceeds from sale of subsidiaries 
                  2,296                     - 
 
 
                                                                  ----------- 
                       ----------- 
Net cash flow from investing activities 
              2,345          (58,369) 
 
 
                                                                 ----------- 
                     ----------- 
Financing activities 
Proceeds from share issue (less issue costs) 
                   -              9,737 
Interest paid 
                           (2,499)            (1,795) 
Dividends paid to equity shareholders of the parent 
                   -              (455) 
New borrowings 
                               -            40,000 
Payments to acquire new borrowings 
                     -              (835) 
Cost of debt Restructuring 
                    (1,285)                     - 
Repayment of borrowings 
                  (4,188)            (2,049) 
Settlement of loans and receivables 
                    (23)                     - 
 
 
                                                                 ----------- 
                       ----------- 
Net cash flow from financing activities 
            (7,995)            44,603 
 
 
                                                                  ----------- 
                       ----------- 
Decrease in cash and cash equivalents 
          (4,880)            (7,033) 
 
Cash and cash equivalents at the beginning of the year 
         9,379            16,412 
 
 
                                                                  ----------- 
                       ----------- 
Cash and cash equivalents at the year end 
          4,499              9,379 
=--------------------- 
 
 
 
 
Notes 
 
1. The financial information set out above does not constitute the Group's 
statutory accounts for the year ended 31 December 2009. 
 
2. The statutory accounts for 2009 contain an unqualified audit report and will 
be delivered to the Registrar of Companies following the Company's Annual 
General Meeting which will be held at the offices of Travers Smith LLP, 10 Snow 
Hill, London EC1A 2AL on Tuesday 18 May 2010 at 10.30 hours. 
 
The statutory accounts for the period to 31 December 2008 contained an 
unqualified audit report and have been delivered to the Registrar of Companies. 
 
The registered office address is 23 Cathedral Yard, Exeter EX1 1HB. 
 
3. Copies of the Annual Report and accounts will be published on the group's 
website and posted to shareholders in April 2010 and will be available to the 
public at the registered office at the same time. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 FR JMMTTMBJJTAM 
 

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