Company name Boundary Capital PLC
Headline Final Results


RNS Number : 7270U
Boundary Capital PLC
30 June 2009
 



Boundary Capital plc audited financial results 

for the year ended 31 December 2008


Boundary Capital plc ("Boundary Capital", the "Group" or the "Company"), an Irish based investment holding companytoday announces its audited results for the year ended 31 December 2008.


Company Highlights


Financial Highlights



 

 

    

31 December 2007 NAV

€0.91 per share



Movement in the year


Unquoted investments

(€0.76)

Quoted investments

(€0.11)

Sterling FX

(€0.09)

Administration costs

(€0.07)



31 December 2008 NAV

 (€0.12) per share

        


Net Asset Value 


The NAV per share at 31 December 2008 was minus €0.12 compared to €0.91 at 31 December 2007. 



Chairman's Review


I report to shareholders that the past year has been a particularly challenging one for Boundary Capital, with globaand local financial market and economic turmoil creating difficult environment for the completion of transactions.

 

The performance of our investment portfolio has been negatively impacted by the current economic environment. The majority of our investments are trading well in their respective sectors but, like most businesses, they are also being badly affected by the economic factors currently in the market place.   


Company Results


The audited financial results for the year ended to 31 December 2008 and from the period of incorporation to 31 December 2007 are summarised in the table below. 



  year Ended 

31 Dec. 2008

€000's

Increase /

(Decrease)

per Share


€ cent

Period from Incorporation 

To 31 Dec. 2007


€000's

Increase / 

(Decrease)

per Share


€ cent

Net Unrealised (loss) on Investments

(50,682)

(0.95)

(1,699)

(0.03)

Net Realised gain on Investments

271

0.01

-

-

Loss Before Tax

(54,717)

(1.03)

(2,663)

(0.05)






Investments Fair Value

31,662


82,886


Cash Balance at Bank

587


1,809


(Debt)

(37,724)


(35,465)


Net (Liability)/Asset Value

(6,009)


48,486



During the year ended 31 December 2008 a loss of €54.4 million was incurred compared to a loss of €2.7 million for the period from incorporation (26th April 2007) to 31 December 2007. The revaluation of investments denominated in sterling (Club Company and ODC) resulted in an unrealised loss of €5.2 million due to Sterling / Euro movements in the year while the share repurchase by Club Co resulted in a realised gain of €0.3 million


The MTM revaluation of our quoted investments (Veris plc, Siteserv plc) as at 31 December 2008 resulted in an unrealised loss of 6.1 million. Whave revalued our investments in Arnotts, CJ Fallon and ODC at year end resulting in an unrealised loss on the unquoted investments of 34.9 millionThe loan to RQB Limited has been written down by €4.5 million to a nil carrying value. Administration, interest costs and interest receivable, management fee and share based payments charge amounted to 4.0 million in the year. The payment of the last 6 months of the management fee has been deferred. 


For the six month period ended 31 December 2008 the Company recorded a loss of €50.3 million. The unrealised loss was predominately due to MTM revaluation of the portfolios quoted investments 5.3 million and the negative Sterling/Euro movement €3.4 million of unquoted investments, the downward revaluation of Arnotts, CJ Fallon and ODC 34.9 million and the write down of the RQB loan of €4.5 million for the six months ended 31 December 2008Administration, interest costs and interest receivable, management fee and share based payments charge amounted to 2.2 million in the period. 


The net asset value of Boundary Capital was a deficit of 6.0 million as at 31 December 2008. The assets are represented by quoted investments of 2.2 million, unquoted investments €27.0 million, property investment of 2.5 million and a deferred tax asset of €0.3 million. The Company had a net debt position of 37.7 million at 31 December 2008. 


The summary consolidated financial results for the year ended 31 December 2008 are attached to the announcement. This comprises of Boundary Capital financial results and Panther Group Acquisitions Limited financial results for the year ended 31 December 2008. The basis of preparation of the financial results is outlined in note 1 of the announcement. The auditors have included an emphasis of matter relating to going concern in their audit report as a result of the bank facility renegotiations not being concluded as at the date of this announcement. The auditors opinion is not qualified in this regard. The full text of the audit report is contained in the annual report which is being posted to shareholders and will be available on our website (www.boundarycapital.ie). 


Investments


The Group has eight investments (including Synchrony) in the portfolio as at 31 December 2008The value of the portfolio has decreased in the year ended 31 December 2008 due to the unrealised downward revaluation of unquoted investments, unrealised losses arising on translation of sterling investments in Club Company and ODC and the MTM of the quoted investments. We are of the opinion that 2009 will be a challenging year.




€ Millions

€ Cents Per Share



OMV at 1 Jan 08

Dist. / Coup


MTM

FX



Reval.

OMV at 31 Dec 08

Mvt. In 12 Mth. Period

OMV at 1 Jan 08

Dist.

/ Coup


MTM

FX



Reval.

OMV at 31 Dec. 08

Mvt. In 12 Mth. Period



% Mvt.















Quoted

8.3

-

(6.1)

-

2.2

(6.1)

15

-

(11)

-

4

(11)

(73%)

Unquoted

74.6

-

(5.0)

(40.1)

29.5

(45.1)

140

-

(9)

(76)

55

(85)

(61%)















Invest-ments

82.9

-

(11.1)

(40.1)

31.7

(51.2)

155

0

(20)

(76)

59

(96)

(62%)


Debt


(35.5)


(2.2)


-


-


(37.7)

 

(2.2)


(66)


(5)


-


-


(71)


(5)


NWC*

1.1

(1.1)

-

-

0.0

(1.1)

2

(2)

-

-

-

(2)


NAV

48.5

(3.3)

(11.1)

(40.1)

(6.0)

(54.5)

91

(7)

(20)

(76)

(12)

(103)



*Net Working Capital (Incl. Cash)


Outlook


We expect 2009 to be a year of consolidation with opportunities to make further investments being limited due to lack of fundingWe hope to finalise discussions on the debt facility with our bankers but there remains risk and uncertainty in this regard, (see Note 1 "Accounting policies and basis of preparation" below for further information). The Company may try and reduce its debt position through a share placement or a disposal of an investment or investments in the portfolio. 


Niall Mc Fadden

Chairman

30 June 2009



For further information please contact:


Boundary Capital plc






Declan Cassidy

Tel:

+ 353 1 240 0500




Q4PR



Gerry O'Sullivan Q4PR

Tel:

+ 353 1 475 1444


Davy Corporate Finance



Des Carville, Director

Tel:

+ 353 1 679 6363


COMPANY INCOME STATEMENT





Year ended 

31-Dec-08

€000's


Period from

26-Apr-07 to 

31-Dec-07

€000's




Realised gains on sale of investments

271

-

Unrealised losses on revaluation of investments

(50,682)

(1,699)

Investment Income

-

144


(50,411)

(1,555)




Investment managers fee

(1,432)

(370)

Other expenses

(242)

(609)


Net portfolio return

(52,085)

(2,534)




Interest income

60

262

Interest expense

(2,692)

(391)




Loss before taxation for the year/period

(54,717)

(2,663)




Income tax

280

(3)




Loss after taxation attributable to ordinary shareholders

(54,437)

(2,666)




Total recognised income and expense for the year/period

(54,437)

(2,666)





COMPANY BALANCE SHEET



As at 31 December

2008

€000's


As at 31 December

2007

€000's

ASSETS



Non-current Assets



Investments designated as FVTPL*

29,202

80,426

Investment property

2,460

2,460

Deferred tax assets

318

39




Total non-current assets

31,980

82,925




Current assets



Trade and other receivables

33

44

Tax receivable

46

-

Cash and cash equivalents

587

1,809




Total current assets

666

1,853




TOTAL ASSETS

32,646

84,778




EQUITY



Equity share capital

13,347

13,347

Share premium account

37,657

37,657

Share based payment reserve

90

148

Retained earnings

(57,103)

(2,666)

EQUITY

(6,009)

48,486




LIABILITIES



Current liabilities



Trade and other payables

931

827

Interest bearing loans and borrowings

37,724

35,465




Total current liabilities

38,655

36,292




TOTAL LIABILITIES

38,655

36,292




TOTAL EQUITY AND LIABILITIES

32,646

84,778




NET (LIABILITY)/ASSET VALUE PER ORDINARY SHARE


(12) cent


91 cents


    * Fair Value Through Profit or Loss 


 COMPANY CASH FLOW STATEMENT




Year ended

31-Dec-08

€000's


Period from 

26-Apr-07 to

31-Dec-07

€000's

Cash flows from operating activities



Loss before taxation

(54,717)

(2,663)

Realised gains on sale of investments

(271)

-

Unrealised losses on revaluation of investments

50,682

1,699

Share based payment (income)/expense

(58)

148

Investment income

-

(144)

Interest received

(60)

(262)

Interest expense

2,692

391

Working capital movement

497

815




Cash generated from operations

(1,235)

(16)




Income taxes paid

(47)

(64)




Net cash from operating activities

(1,282)

(80)




Investing activities



Interest received

71

251

Interest paid

(3,083)

-




Net cash (used)/earned in investment activities

(3,012)

251




Acquisitions



Sale/(acquisitions) of investments

813

(57,981)




Financing activities



Issue of shares

-

26,927

Cost of issuing shares

-

(2,383)

Net bank loan advance

2,259

35,075




Net cash from financing activities

2,259

59,619




Net (decrease)/increase in cash and cash equivalents

(1,222)

1,809

Cash and cash equivalents at beginning of the year/period

1,809

-




Cash and cash equivalents at end of the year/period

587

1,809






CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2008




Year ended

31-Dec-08

€000's 


Period from

26-Apr-07 to

31-Dec-07

€000's 




Revenue

31,389

7,289




Cost of sales

(7,376)

(1,179)

Gross Profit

24,013

6,110




Operating expenses

(25,050)

(6,791)

Operating loss

(1,037)

(681)




Net realised gain on investments

271

-

Net unrealised losses on the revaluation of investments

(44,592)

(4,374)

Investment Income

-

144

Portfolio return before interest

(45,358)

(4,911)




Interest income

181

326

Interest expense

(5,916)

(1,665)




Loss before taxation

(51,093)

(6,250)




Income tax

325

58




Loss after taxation attributable to ordinary shareholders

(50,768)

(6,192)


Attributable to:

Equity holders of the company



(49,913)



(5,913)

Minority interest

(855)

(279)

Loss after taxation

(50,768)

(6,192)




Earnings per share - basic (cents)

(93)

(12)

Diluted earnings per share (cents)

(93)

(12)




Consolidated statement of recognised income and expense






Loss for the financial year/period

(50,768)

(6,192)

Currency translation reserve movement

(2,538)

(932)




Total recognised income and expense for the year/period

(53,306)

(7,124)




Attributable to:



Equity holders of the company

(52,451)

(6,845)

Minority interest

(855)

(279)




Total recognised income and expense for the year/period

(53,306)

(7,124)






CONSOLIDATED BALANCE SHEET


31-Dec-08

€000's

31-Dec-07

€000's

ASSETS



Non-current assets



Intangible assets

51,755

63,337

Property, plant and equipment

1,706

1,190

Investments designated as FVTPL*

Quoted Equity Investments

Unquoted Equity Investments

Investment Property

Loans and receivables


2,140

17,772

2,460

-


8,248

52,343

2,460

4,455

Deferred tax assets

838

1,918

Total non-current assets

76,671

133,951




Current Assets



Inventories

953

799

Trade and other receivables

3,993

4,491

Current tax receivable

870

22

Cash and cash equivalents

3,367

8,079

Total current assets

9,183

13,391

TOTAL ASSETS

85,854

147,342




EQUITY



Equity share capital

13,347

13,347

Share premium account

37,657

37,657

Share based payment reserve

90

148

Foreign currency translation reserve

(3,470)

(932)

Retained earnings

(55,941)

(5,913)

Equity attributable to equity holders of the parent

(8,317)

44,307

Minority interest

1,012

4,806

Total equity

(7,305)

49,113




LIABILITIES



Non-current liabilities



Interest-bearing loans and borrowings

37,534

43,726

Trade and other payables

51

-

Deferred tax liabilities

6,996

8,411

Deferred consideration

709

-

Other provisions and charges

956

306

Total non-current liabilities

46,246

52,443




Current Liabilities



Interest-bearing loans and borrowings

40,320

38,029

Trade and other payables

6,068

7,626

Current tax liabilities

-

131

Deferred consideration

525

-

Total current liabilities

46,913

45,786

TOTAL LIABILITIES

93,159

98,229

TOTAL EQUITY AND LIABILITIES

85,854

147,342




*Fair Value Through Profit or loss





CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2008



Year ended

31-Dec-08

€000's

Period From

26-Apr-07 to

31-Dec-07

€000's

Cash flows from operating activities



Loss before tax

(51,093)

(6,250)




Realised gains on investments

(271)

-

Unrealised losses on revaluation of investments 

44,592

4,374

Depreciation of property, plant & equipment

447

145

Amortisation of intangible assets

2,615

745

Share based payment (income)/expense

(58)

148

Investment Income

-

(144)

Interest received

(181)

(326)

Interest expense

5,916

1,665

Net movement on provisions

720

(80)

Working capital movement

1,310

2,725




Cash generated from operations

3,997

3,002




Income taxes paid

(972)

(411)



Net cash from operating activities

3,025

2,591




Investing activities



Interest received

174

315

Interest paid

(6,474)

(1,274)

Purchase of property, plant and equipment

(497)

(117)




Net cash used in investing activities

(6,797)

(1,076)




Acquisitions



Acquisition of undertakings and subsidiaries

(1,485)

3,393

Sale/(acquisition) of investments

813

(46,761)



(672)


(43,368)

Net cash used in acquisition activities


Financing activities



Issue of shares

-

24,544

Net bank loan advance

3,693

35,075

Bank loan repayments

(3,961)

(9,597)




Net cash (used in)/from financing activities

(268)

50,022




Net (decrease)/increase in cash and cash equivalents

(4,712)

8,169




Cash & cash equivalents at beginning of year/period

8,079

0

Translation adjustment

-

(90)




Cash & cash equivalents at end of year/period

3,367

8,079



Notes



1.    Accounting Policies and Basis of Preparation


The financial information included in this document has been prepared on a consistent basis and using the same accounting policies as those used in the preparation of the audited financial statements contained in the 2008 annual report.


The financial information has been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU. 


The Group's consolidated financial statements have been prepared on the going concern basis, which assumes that the Group will continue to be able to meet its liabilities as they fall due for the foreseeable future. However, as a result of the current difficult credit markets, to date the Group has been unable to extend the debt facility loaned by Anglo Irish Bank plc to Boundary Capital plc which is due to mature on 30 June 2009. The Group currently does not have sufficient financial headroom available under its existing facilities in order to meet this maturity and service its debt obligations.


The Directors have given careful and detailed consideration to this issue and while they are hopeful of a positive outcome to the current negotiation, the timing and materiality of the issue is such as to indicate the existence of a material uncertainty which may cast significant doubt on the Group's and Company's ability to continue as a going concern. If this is the case, the Group and Company may be unable to continue to realise assets and discharge liabilities in the normal course of business.


Consequently, having made due enquiries and considering the material uncertainty described above and the timing of its resolution which is outside the control of the Board, the Directors have decided to continue to adopt the going concern basis in preparing the financial statements and these financial statements do not include any adjustments that would result from the absence of the support of Anglo Irish Bank plc in extending or renewing the debt facilities of the Group.  

            

2.    Earnings per Share 

 




Year ended

31-Dec-08

Audited

€000's 

26-Apr-07 to

31-Dec-07

Audited

€000's 


Loss attributable to ordinary shareholders



(49,913)


(5,913)





Weighted and diluted average number of ordinary shares


53,387,204

50,111,220





Basic and diluted loss per ordinary share (cents)


(93)

(12)


Basic earnings per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period, excluding ordinary share options.


For diluted earnings per share, the weighted average number of ordinary shares outstanding is adjusted to assume conversion of all potential dilutive options over ordinary shares once the adjustment does not reduce a loss per share.

            

3.    Statement of changes in Equity


(a)    Company 













Equity share capital


€000's

Share Premium



€000's

Retained Earnings



€000's

Share Based Payment Reserves

€000's

Total Equity



€000's

At 1 January 2008


13,347

37,657

(2,666)

148

48,486

Loss for the year


-

-

(54,437)

-

(54,437)

Total income and expense in the year


13,347

37,657

(57,103)

148

(5,951)

Share based payments


-

-

-

(58)

(58)















At 31 December 2008


13,347

37,657

(57,103)

90

(6,009)


Company













Equity share capital


€000's

Share Premium



€000's

Retained Earnings



€000's

Share Based Payment Reserves

€000's

Total Equity



€000's

At 26 April 2007


-

-

-

-

-

Loss for the period


-

-

(2,666)

-

(2,666)

Total income and expense in the period


-

-

(2,666)

-

(2,666)

Issue of share capital


13,347

40,040

-

-

53,387

Costs associated with listing 







On AIM and IEX


-

(2,383)

-

-

(2,383)

Share based payments


-

-

-

148

148















At 31 December 2007


13,347

37,657

(2,666)

148

48,486









(b)    Group




Equity Share Capital €'000



Share Premium

€'000

Foreign Currency Translation Reserve €'000



Retained Earnings €'000

Share Based Payment Reserve €'000


Equity interest of parent €'000



Minority interests €'000




Total €'000










At 1 January 2008

13,347

37,657

(932)

(5,913)

148

44,307

4,806

49,113

Loss for the year

-

-

-

(49,913)

-

(49,913)

(855)

(50,768)


______

______

______

______

______

______

______

______

Total income and expense for the year


13,347


37,657


(932)


(55,826)



148


(5,606)


3,951


(1,655)

Share based payment 

-

-

-

-

(58)

(58)

-

(58)

Foreign currency translation


-


-


(2,538)


(115)


-


(2,653)


(1,519)


(4,172)

Share re-organisation of Panther Group


-


-


-


-


-


-


(1,420)


(1,420)


______

______

______

______

______

______

______

______

At 31 December 2008

13,347

37,657

(3,470)

(55,941)

  90

(8,317)

  1,012

  (7,305)





















3. Statement of changes in Equity (continued)


Group


Equity Share Capital €'000



Share Premium

€'000

Foreign Currency Translation Reserve €'000



Retained Earnings €'000

Share Based Payment Reserve €'000


Equity interest of parent €'000



Minority interests €'000




Total €'000










At 26 April 2007

-

-

-

-

-

-

-

-

Loss for the period

-

-

-

(5,913)

-

(5,913)

(279)

(6,192)


______

______

______

______

______

______

______

______

Total income and expense for the period


-


-


-


(5,913)


-


(5,913)


(279)


(6,192)










Issue of share capital

13,347

40,040

-

-

-

53,387

-

53,387

Costs associated with listing on AIM and IEX


-


(2,383)


-


-


-


(2,383)


-


(2,383)

Share based payments 

-

-

-

-

148

148

-

148

Foreign currency translation


-


-


(932)


-


-


(932)


(454)


(1,386)

Acquisition

-

-

-

-

-

-

5,539

5,539


______

______

______

______

______

______

______

______

At 31 December 2007

13,347

37,657

  (932)

(5,913)

  148

44,307

  4,806

49,113













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