FOR IMMEDIATE RELEASE: 23 JULY 2007
EQUABLE PROPERTIES PLC
REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD 23 DECEMBER 2005 TO 31 MARCH 2007
Company number 5662476
DIRECTORS, ADVISERS AND OFFICERS
DIRECTORS
Nicholas Jeffrey LLB
Desmond Lawrence Bloom
Ivan William Minter
Robert Thomas Dursley
Stott
SECRETARY
Ivan William Minter
REGISTERED OFFICE
2 Bloomsbury Street
London WC1B 3ST
AUDITORS
Baker Tilly UK Audit LLP
Chartered Accountants
2 Bloomsbury Street
London WC1B 3ST
SOLICITORS
Nabarro
Lacon House
Theobald's Road
London WC1A 2AW
CHAIRMAN'S STATEMENT
I am pleased to present the first financial results of Equable Properties
covering the period from incorporation on 23 December 2005 to 31 March 2007,
during which the shares of the Company were admitted to AIM on 30 March 2007.
Financial Results
The profit for the period was �446,949 on turnover of �2,096. It should be
noted that these accounts relate to a period prior to the commencement of
operational business and the acquisition of any property assets, save for the
final two days of the accounting period when the Company acquired its first
property assets. To that extent these results should not be treated as general
indicator for the business moving forward.
Business and Operations
Equable Properties has stated its intention to build a broadly based and mainly
commercial property investment company, initially focused on the UK market of
retail, offices, industrial, hotels and pubs. The Company is led by Desmond
Bloom who has successfully traded commercial property for 30 years and has
gained an extensive network of contacts both domestically and internationally.
To this end, Equable Properties completed its first acquisition, simultaneously
to the admission to AIM on 30 March 2007, of a portfolio of ten pubs in England
and Wales.
Outlook
A number of possible property acquisitions are being evaluated in the UK at
present that will likely lead to an increased level of corporate activity both
in the current financial year and beyond. I am optimistic that Equable will be
reporting progress in these areas soon.
In addition to expanding Equable's core portfolio in the UK, the Company
intends, in the future, to explore opportunities internationally and, in
particular, within the developing economies of Eastern Europe.
Nicholas Jeffrey
Chairman
23 July 2007
DIRECTORS' REPORT
The Directors submit their report and the financial statements of Equable
Properties Plc for the period from incorporation on 23 December 2005 to 31
March 2007.
PRINCIPAL ACTIVITY
The principal activity of the Company during the year was that of property
investment. The Company was incorporated in England and Wales on 23 December
2005 and commenced trading in August 2006.
REVIEW OF BUSINESS
The profit for the year after taxation was �446,949. The directors do not
recommend the payment of a dividend. A more detailed review is in the
Chairman's Statement on page 2.
PRINCIPAL RISKS AND UNCERTAINTIES
The company's main assets are its investment property holdings and the
company's performance is dependent on these assets. Factors including changes
to tenancy profiles, or levels, across the portfolio, have an impact on the
value of the assets, and the properties' financial performances are also
affected by market conditions for property as an asset class, which are in turn
are also dependent on a variety of external factors. In adverse conditions a
reduction in property values could occur, which could be amplified by the
effect of the company's borrowings.
Analysis of performance by reference to key performance indicators.
The most important measure of the group's performance is its increase in net
asset value. In 2007 net assets were �1,840,958.
FUTURE DEVELOPMENTS
The directors consider that the programme of investment undertaken since the
AIM listing will continue and will result in an increase in the Company's
profits during the year ending 31 March 2008. Further details are provided in
the Chairman's Statement on page 2.
DIRECTORS
The following directors were appointed and have held office during the period:
Nicholas Jeffrey LLB (appointed 27/03/2006)
Desmond Lawrence Bloom (appointed 23/12/2005)
Ivan William Minter (appointed 23/12/2005)
Robert Thomas Dursley Stott (appointed 27/03/2006)
Instant Companies Limited were appointed on 23/12/2005 and resigned on 31/12/
2005:
DIRECTORS' INTERESTS IN SHARES
Directors' interests in the shares of the Company, including family interests,
were as follows:
31.03.07
Nicholas Jeffrey 1,000,000
Desmond Lawrence Bloom 8,892,857
Ivan William Minter 1,250,000
Robert Thomas Dursley Stott 1,000,000
DIRECTORS' REPORT (CONTINUED)
The directors hold options over the Company's ordinary shares as follows:
31.03.07 Exercise Date from Expiry
price which date
exercisable
Desmond Lawrence Bloom 8,000,000 3p 30/03/2007 29/03/
2012
Ivan William Minter 2,000,000 3p 30/03/2007 29/03/
2012
CREDITOR PAYMENT POLICY
The Company's payment policy for the forthcoming year is to agree terms of
payment with all suppliers before business is transacted, to ensure suppliers
are aware of the agreed terms and to settle accounts in accordance with those
terms. The Company does not currently have a history of credit terms for the
period ended 31 March 2007.
CHARITABLE AND POLITICAL DONATIONS
No such donations were made in the period.
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
The Directors who were in office on the date of approval of these financial
statements have confirmed that, as far as they are aware, there is no relevant
audit information of which the auditors are unaware. Each of the
Directors have confirmed that they have taken all the steps that they ought to
have taken as Directors in order to make themselves aware of any relevant audit
information and to establish that it has been communicated to the auditor.
SUBSTANTIAL SHAREHOLDINGS
Desmond Bloom held 8,892,855 ordinary shares of 1p (6.85%), Igor Franchuk held
42,857,143 ordinary shares of 1p (33%), and The Bervies Limited held 12,000,000
ordinary shares of 1p (9.24%). Pershing Keen Nominees Limited held 21,428,570
ordinary shares of 1p (16.5%) and Glenn Maud held 19,642,857 ordinary shares of
1p (15.13%). No other person has reported an interest of more than 3% in the
ordinary shares.
AUDITORS
The Directors, having been notified of the cessation of the partnership known
as Baker Tilly, resolved that Baker Tilly UK Audit LLP be appointed successor
auditor with effect from 1 April 2007, in accordance with the provisions of the
Companies Act 1989, s26(5). Baker Tilly UK Audit LLP has indicated its
willingness to continue in office.
By order of the board
Ivan William Minter
Secretary
23 July 2007
DIRECTORS' RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL STATEMENTS
The Directors are responsible for preparing the Annual Report and the financial
statements in accordance with applicable law and regulations.
UK Company law requires the directors to prepare financial statements for each
financial year. The Directors have elected to prepare financial statements in
accordance with International Financial Reporting Standards ("IFRS") as adopted
by the EU.
The financial statements are required by law and IFRS adopted by the EU to
present fairly the financial position and performance of the company; the
Companies Act 1985 provides in relation to such financial statements that
references in the relevant part of the Act to financial statements giving a
true and fair view are references to their achieving a fair presentation.
Directors are also required to:
a. select suitable accounting policies and then apply them consistently; and
b. make judgements and estimates that are reasonable and prudent; and
c. state whether they have been prepared in accordance with IFRSs adopted by
the EU; and
d. prepare the accounts on a going concern basis, unless it is inappropriate
to presume the company will continue in business.
The directors are responsible for keeping proper accounting records which
disclose within reasonable accuracy at any time the financial position of the
company, for safeguarding the assets, for taking reasonable steps for the
prevention and detection of fraud and other irregularities and for the
preparation of a directors' report which complies with the requirements of the
Companies Act 1985.
.
INDEPENDENT AUDITORS REPORT
We have audited the financial statements on pages 7 to 19.
This report is made solely to the company's members, as a body, in accordance
with section 235 of the Companies Act 1985. Our audit work has been undertaken
so that we might state to the company's members those matters we are required
to state to them in an auditor's report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company's members as a body, for our
audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The Directors' responsibilities for preparing the Annual Report and the
financial statements in accordance with applicable law and International
Financial Reporting Standards as adopted by the European Union are set out in
the Statement of Directors' Responsibilities.
Our responsibility is to audit the financial statements in accordance with
relevant legal and regulatory requirements and International Standards on
Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true
and fair view and are properly prepared in accordance with the Companies Act
1985. We also report to you whether in our opinion the information given in the
Directors' Report is consistent with the financial statements. The information
given in the Directors' Report includes that specific information presented in
the Chairman's Statement that is cross referenced from the Review of Business
section of the Directors' Report.
In addition, we report to you if, in our opinion, the company has not kept
proper accounting records, if we have not received all the information and
explanations we require for our audit, or if information specified by law
regarding directors' remuneration and other transactions is not disclosed.
We read other information contained in the Annual Report, and consider whether
it is consistent with the audited financial statements. This other information
comprises only the Directors' Report and the Chairman's Statement. We consider
the implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the financial statements. Our
responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing
(UK and Ireland) issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts and
disclosures in the financial statements. It also includes an assessment of the
significant estimates and judgements made by the directors in the preparation
of the financial statements, and of whether the accounting policies are
appropriate to the company's circumstances, consistently applied and adequately
disclosed.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the financial statements.
Opinion
In our opinion
* the financial statements give a true and fair view, in accordance with
International Financial Reporting Standards as adopted by the European
Union, of the state of the company's affairs at 31 March 2007 and of its
profit for the period then ended and have been properly prepared in
accordance with the Companies Act 1985; and
* the information given in the Directors' Report is consistent with the
financial statements.
BAKER TILLY UK AUDIT LLP
Registered Auditor
Chartered Accountants
2 Bloomsbury Street
London WC1B 3ST
23 July 2007
INCOME STATEMENT
For the period 23 December 2005 (Date of Incorporation) to 31 March 2007
2007
Continuing Operations Notes �
Gross rental income 3 2,096
Net property and related income 2,096
Administrative expenses 4 (15,002)
Share option charge 14 (22,400)
Net operating lossbeforefinancing costs (35,306)
Fair value adjustment 10 691,357
Investment income 6 532
Financial costs 7 (2,227)
Profit before taxation 654,356
Taxation 8 (207,407)
Profit forperiodafter taxationfrom 446,949
continuing activities
Earnings per share (pence) from continuing operations
Basic 9 10.16
Diluted 9 9.95
BALANCE SHEET AS AT 31 MARCH 2007
Notes
2007
�
ASSETS
Non-current assets
Investment properties 10 5,700,000
Current assets
Other receivables 11 1,585,401
Cash and cash equivalents 11 41
1,585,442
TOTAL ASSETS 7,285,442
LIABILITIES
Current liabilities
Bank loan 12 (76,000)
Other payables 13 (796,778)
(872,778)
Non-current liabilities
Bank loan 12 (3,864,299)
Other loans 12 (500,000)
Deferred tax liabilities 8 (207,407)
(4,571,706)
Net assets 1,840,958
CAPITAL AND RESERVES
Share capital 14 1,298,500
Share premium account 15 39,359
Profit and loss account 503,099
SHAREHOLDERS' FUNDS 1,840,958
The financial statements were approved and authorised for issue by the board on
23 July 2007 and signed on its behalf by:
Desmond Bloom
DIRECTOR
Ivan Minter
DIRECTOR
COMPANY STATEMENT OF CHANGES IN EQUITY
For the period 23 December 2005 (Date of Incorporation) to 31 March 2007
Share Share Retained Total
Capital Premium Earnings
�
23 December 2005 - - - -
Profit for the period - - 446,949 446,949
Total recognised income and expense - - 446,949 446,949
for the period
Share option charge - - 56,150 56,150
Equity issued during period 1,298,500 - - 1,298,500
Share premium - 39,359 - 39,359
Total shareholders' equity carried 1,298,500 39,359 503,099 1,840,958
forward
STATEMENT OF CASH FLOWS
For the period 23 December 2005 (Date of Incorporation) to 31 March 2007
Notes
2007
�
Net cash from operating activities 16 (351,229)
Investing Activities
Interest received 6 532
Purchase of investment properties 10 (5,008,643)
Net cash used in investing (5,008,111)
activities
Financing Activities
Proceeds of issue of new share 1,371,608
capital
New bank loans raised 3,990,000
Interest paid 7 (2,227)
Net cash raised from financing 5,359,381
activities
Net increase in cash and cash 41
equivalents
Represented by:
Cash and cash equivalents at 31 41
March 2007
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
For the period 23 December 2005 (Date of Incorporation) to 31 March 2007
1. General Information
Equable Properties Plc is a company incorporated and domiciled in England and
Wales under the Companies Act 1985. It was formerly registered as a private
company on 23 December 2005, and was re-registered as a public limited company
on 26 March 2007.
The address of the registered office is given on page 1. The nature of the
company's operations and its principal activities are set out in note 3.
At the date of authorisation of these financial statements the following
Standards and Interpretations which have not been applied in these financial
statements were in issue but not yet effective:
IFRS 6 Exploration for and Evaluation of Mineral Resources
IFRS 7 Financial instruments: Disclosures; and the related amendment
to IAS 1 on capital disclosures
IFRIC 4 Determining whether an Arrangement contains a Lease
IFRIC 5 Rights to Interest Arising from Decommissioning, Restoration
and Environmental Rehabilitation Funds
IFRIC 7 Applying the Restatement Approach under IAS 29 Financial
Reporting in Hyperinflationary Economies
IFRIC 8 Scope of IFRS 2 Share-based Payment
IFRIC 9 Reassessment of Embedded Derivatives
IFRIC 10 Interim Financial Reporting and Impairment
IFRIC 11 Group and Treasury Share Transactions
IFRIC 12 Service Concession Arrangements
IFRIC 13 Customer Loyalty
IFRIC 14 The Limited on Defined Benefit Assets
The Directors anticipate that the adoption of these Standards and
Interpretations in future periods will have no material impact on the financial
statements of the Company when the relevant standards and interpretations come
into effect.
2. Significant Accounting Policies
Statement of Compliance
These are the company's first financial statements and cover the period 23
December 2005 (date of incorporation) to 31 March 2007.
The financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the EU.
Basis of Preparation
The financial statements are presented in pounds sterling and are prepared on
the historical cost basis as modified by the revaluation of investment
properties. The preparation of financial statements in conformity with IFRS
requires management to make judgement, estimates and assumptions that affect
the application of policies and the reported amounts of assets and liabilities,
income and expenses. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from these
estimates. The estimates and underlying assumptions are reviewed on an on going
basis. Revisions to accounting estimates are recognised in the period in which
the estimate is revised if the revision affects only that period or in the
period of the revision and future periods if the revision affects both current
and future periods.
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
For the period 23 December 2005 (Date of Incorporation) to 31 March 2007
Significant Accounting Policies (continued)
Investment Property
Investment properties are properties held for long-term rental yields.
Investment properties are carried in the balance sheet at fair value,
representing open market value determined annually by independent valuers.
Gains or losses arising from changes in fair value of investment property are
included in the income statement for the period in which they arise.
Rental Income
Rental income from investment property leased out under operating leases is
recognised in the Income Statement on a straight-line basis over the term of
the lease. Lease incentives granted are recognised as an integral part of total
rental income.
Income and Expense Recognition
Rental income, bank interest and expenses are accounted for on an accruals
basis. All expenses are recognised in the income statement with the exception
of transaction costs incurred on the acquisition of investment property.
Taxation
The tax expense represents the sum of the tax currently payable and deferred
tax.
The tax currently payable is based on taxable profit for the year. Taxable
profit differs from net profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The
group's liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method. Deferred
tax liabilities are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary
differences can be utilised. Such assets and liabilities are not recognised if
the temporary difference arises from goodwill or from the initial recognition
(other than in a business combination) of other assets and liabilities in a
transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.
Borrowings
Borrowings other than bank overdrafts are recognised initially at fair value
less attributable transaction costs. Subsequent to initial recognition,
borrowings are stated at amortised cost with any difference between the amount
initially recognised and redemption value being recognised in the income
statement over the period of the borrowings, using the effective interest
method.
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
For the period 23 December 2005 (Date of Incorporation) to 31 March 2007
Significant Accounting Policies (continued)
Net Financing Costs
Net financing costs comprise interest payable on borrowings calculated using
the effective interest rate method net of interest capitalised.
Interest income is recognised in the Income Statement as it accrues, taking
into account the effective yield on the asset.
Financial Instruments
Financial assets and financial liabilities are recognised on the Company's
balance sheet when the Company becomes a party to the contractual provisions of
the investment.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash at bank.
Equity Instruments
Equity instruments issued by the Company are recorded at par value. Proceeds
received in excess of par value are recorded in the share premium account, net
of direct issue costs.
Share-based Payments
The Company has applied the requirements of IFRS 2 Share-based Payment. For all
grants of share options, the fair value as at the date of grant is calculated
using the option price model and the corresponding expense is recognised over
the vesting period. The share based payments expense is recognised as a staff
cost and the associated credit entry is made to reserves.
3. Gross Rental Income
The company only has one business segment, that of property investment and has
only one geographical segment. Consequently no segmental information has been
presented.
�
Gross rental income 2,096
4. Administrative expenses
The following has been included in arriving at
operating profit
�
Auditor's fees 15,000
Bank charges 2
15,002
Amounts payable to Baker Tilly UK Audit LLP in the period for both audit and
non audit services are disclosed below:
�
Fees payable to the auditor for the audit of the 15,000
company's annual accounts
Other Services 100,000
115,000
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
For the period 23 December 2005 (Date of Incorporation) to 31 March 2007
5. Employees and Directors
There were no employees of the Company other than the directors who served in
their professional capacities. No directors received any remuneration in the
period. The share option charge relating to directors was �22,400. All
directors are deemed to be key management personnel.
6. Investment Income
�
Interest received 532
7. Financing Costs
�
Interest paid on bank loan 2,227
8. Taxation
�
Current tax -
Deferred tax 207,407
207,407
Corporation tax is calculated at 30% of the estimated assessable profit for the
year.
The charge for the year can be reconciled to the profit per the income
statement as follows:
Profit before tax:
Continuing operations 654,356
Tax at the UK corporation tax rate of 30% 196,307
Expenses not deductible for tax purposes 6,720
Other differences 4,380
Tax expense and effective tax rate for the year 207,407
Deferred tax liabilities
Revaluation
of
investment
property
�
At 23 December 2005 -
Charge to income statement 207,407
31 March 2007 207,407
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
For the period 23 December 2005 (Date of Incorporation) to 31 March 2007
9. Earnings per Share
The basic and diluted earnings per share is based on the profit for the period
after taxation of �446,949.
The weighted average number of ordinary shares outstanding during the period
used in the basic earnings per share was 4,397,084.
Diluted earnings per share is based on a diluted number of ordinary shares of
4,491,191, as calculated below:
Weighted average number of ordinary shares for the purposes 4,397,084
of basic eps
Dilutive effect of share options 94,107
Weighted average number of ordinary share for the purposes of 4,491,191
diluted eps
10. Investment Property
�
Cost at 23 December 2005 -
Additions in the period 5,008,643
Increase in fair value during the 691,357
year
At 31 March 2007 5,700,000
The fair value of the Company's investment property at 31 March 2007 has been
arrived at on the basis of a valuation carried out on 31 March 2007 by Knight
Frank LLP, independent valuers not connected with the Company. The valuation,
which conforms to International Valuation Standards, was arrived at by
reference to market evidence of transaction prices for similar properties.
The Company has pledged all of its investment property to secure banking
facilities granted to the Company.
11. Other Financial Assets
Receivables
�
Unpaid share subscriptions 1,554,900
VAT refund 27,916
Other debtors 2,585
1,585,401
The directors consider that the carrying amount of other receivables
approximates their fair value.
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
For the period 23 December 2005 (Date of Incorporation) to 31 March 2007
Other Financial Assets Continued
Cash and cash equivalents
�
Cash at bank 41
The carrying amount of this asset approximates its fair value.
Credit risk
The Company's principal financial assets are bank balances, other receivables
and investment property.
The main risks arising from the Company's financial instruments are market
price, interest, credit and gearing risks.
Market Price Risk
The Board of Directors meets regularly to consider the asset allocation of the
portfolio in order to maximise the investment return for the company while
minimising the risk associated with particular industry sectors whilst
continuing to follow the investment objective. There is, however, no assurance
that this objective will be achieved as the value of investment property may
fall as well as rise and investors may not recoup the original amount invested.
The difference at any one time between the cost of subscribing for shares or
redeeming shares may differ. As a result of this, any investments in the
company should be viewed as a medium to long-term investment.
Interest Risk
The Company has interest rate risk on its outstanding finance loans. Any change
to interest rates may result in the loan interest payable either increasing or
decreasing. Details of loans in place are outlined in note 12.
12. Financial liabilities - Loans
Current
�
Secured bank loan 76,000
Non-current
�
Secured bank loan 3,914,000
Unamortised arrangement costs (49,701)
Other loan 500,000
4,364,299
Total 4,440,299
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
For the period 23 December 2005 (Date of Incorporation) to 31 March 2007
Financial liabilities - Loans Continued
The borrowings are repayable as follows:
On demand or within one year 76,000
More than 1 year but not more than 2 years 576,000
More than 2 years but not more than 5 years 228,000
In 5 years or more 3,610,000
Unamortised arrangement costs (49,701)
4,440,299
The Company has a loan of �3,990,000 with HSBC. This loan is due to be repaid
on 29 March 2022. �3,990,000 had been drawn down under this facility at 31
March 2007. The loan is secured by a debenture comprising fixed and floating
charges over all the assets and undertakings of Equable Properties Plc
including all present and future freehold and leasehold property, book and
other debts, chattels and goodwill and uncalled capital, both present and
future and incorporating an assignment of the rental guarantees given by The
Bervies Limited in favour of Equable Properties Plc.
Repayments of �19,000 plus interest are due quarterly and commenced on 2 July
2007. Interest on the loan is charged at 1.54% per annum over HSBC's Sterling
Base Rate. This loan is due for repayment on 29 March 2022.
In addition the Company has owes �500,000 to The Bervies Limited, being the
balance owed on the property acquisition. �250,000 is due on 30 June 2008 and �
250,000 is due on 8 October 2008. Interest on the loan is charged at 2% per
annum over Yorkshire Bank's Base Rate.
The directors consider that the carrying amount of borrowings approximates to
their fair value.
13. Other Financial Liabilities
Payables
�
Accruals and deferred income 796,778
The directors consider that the carrying amount of payables approximates to
their fair value.
14. Share Capital
Authorised �
500,000,000 ordinary shares of �0.01 5,000,000
each
Issued and fully paid �
18,785,700 ordinary shares of �0.01 each 187,857
Issued and not fully paid
111,064,300 ordinary shares of �0.01 1,110,643
each
Total issued
129,850,000 ordinary shares of �0.01 1,298,500
each
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
For the period 23 December 2005 (Date of Incorporation) to 31 March 2007
Share Capital Continued
The Company has one class of ordinary shares which carry no right to fixed
income.
On incorporation 1 ordinary share of 1p was issued at par for cash. On 20
January 2006 999,999 ordinary shares of 1p each were issued at par for cash. On
26 March 2006 4,000,000 ordinary shares of 1p each were issued at par for cash.
On 30 March 2007 111,064,300 ordinary shares of 1p each were issued at a
premium of 0.4p; 1,785,700 ordinary shares of 1p each were issued at a premium
of 0.4p as payment for services provided in relation to the purchase of the pub
portfolio; and 12,000,000 ordinary shares of 1p each were issued at a premium
of 0.4p as consideration for the purchase of the pub portfolio.
The company has granted share options to certain executives and professional
advisers. Details of the share options outstanding during the period are as
follows:
Grant Date Number Outstanding Expiry date Exercise
as at 31 price
March 2007
26/03/2007 10,000,000 10,000,000 25/03/2012 3p
30/03/2007 3,571,428 3,571,428 29/03/2012 1.6p
Share based payments
The share based payment charge is based on the fair value of the share options.
Details of these share options are disclosed in the director's report. The fair
value of the share options has been calculated using the Black-Scholes option
-pricing model. The inputs into the model are as set out below:
Expected volatility 40%
Expected life 5 years
Risk free rate 5.15%
Expected dividends nil
The expected volatility was determined by analysing the daily share price from
AIM companies within the same industry using a 3 year average.
The expected useful life used in the model is based on management's best
estimates based on non-transferability, exercise restrictions and behavioural
considerations.
The group's share option charge for the year in respect of share options is �
22,400.
15. Share Premium Account
�
Balance at 23 December 2005 -
Premium arising on issue of equity 499,400
shares
Expenses of issue of equity shares (460,041)
Balance at 31 March 2007 39,359
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
For the period 23 December 2005 (Date of Incorporation) to 31 March 2007
Reconciliation of Operating Profit to Net Cash Outflow from Operating A
ctivities Continued
16. Reconciliation of Operating Profit to Net Cash Outflow from Operating A
ctivities
�
Operating loss from continuing (35,306)
operations
Increase in receivables (1,635,101)
Increase in payables 1,296,778
Share option charge 22,400
Net cash from operating (351,229)
activities
Gearing Risk
The use of borrowing means that a change in the value of the investment
portfolio of the Company can be expected to result in a disproportionate
movement in the net asset value of the Company. Whilst this will have a
positive impact on performance in a rising market, it would be unfavourable
when the market moves downwards.
17. Related Party Transactions
During the period Baron Bloom, the son of director and shareholder Desmond
Bloom was granted 1,785,714 ordinary 1p shares in respect of services provided
to the company.
18. Comparatives
As these are the company's first financial statements there are no comparative
figures to report.
ENQUIRIES:
Desmond Bloom, Chief Executive
Ivan Minter, Finance Director
Equable Properties Plc
Tel. 07793 125625
Ben Simons
Hansard Group
Tel. 020 7245 1100
Robert Lo / Natasha Reed
Nabarro Wells & Co. Ltd
Tel. 020 7710 7400
END
Equable Prop (LSE:EQU)
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부터 5월(5) 2024 으로 6월(6) 2024
Equable Prop (LSE:EQU)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024
