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Unaudited Results for six month to 29 February 2012

  Download PDF - Monday 14th May 2012 at 12:29

ALPHA PROSPECTS PLC
("Alpha" or the "Company")

UNAUDITED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 29 FEBRUARY 2012
ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS

RESTATED ANNUAL FINANCIAL STATMENTS

CHAIRMAN'S STATEMENT FOR SIX MONTH PERIOD ENDED 29 FEBRUARY 2012

I am pleased to present the unaudited financial results for Alpha Prospects plc for the six month period ending 29th February 2012.

Due to a significant reduction in administrative expenses, the loss for the period has been reduced to GBP GBP18,960 (2011: GBP62,432).

In January the Company announced the acquisition of 375 common stock of Coleridge Resources Inc. ("Coleridge") representing 25% of the issued share capital of Coleridge. The Coleridge stock was issued for a consideration of GBP 980,000 fully satisfied by the issue of 49,000,000 ordinary shares of the Company. The deal was completed on the 2nd April 2012.

In February, the Company announced that it had established Alpha Prospects Australia Pty Ltd (APA) and has entered into an agreement with Empire Energy Corporation ("Empire") for Empire to spend $2 million on drilling and a seismic survey to prove up resources and reserves located in the Mt Lloyd vicinity in Tasmania. Subject to licenses, located within the Mt Lloyd vicinity, being granted and Empire deploying $2million USD, Empire will be entitled to a 75% interest in the shares of APA. Following these conditions being fulfilled, in consideration of the above, Alpha will issue 49,000,000 new Alpha shares to Empire representing 21% of the enlarged capital of Alpha. APA intends to implement an exploration program with particular focus upon coal and coal bed methane.

The Company intends to seek further investment opportunities by acquiring minority stakes in listed and unlisted companies across a variety of sectors.

Steven Freudmann
Chairman
May 2012

INCOME STATEMENT
FOR THE PERIOD ENDED 29 FEBRUARY 2012

 
6 Months to
29 Feb 2011
6 Months to
28 Feb 2011
Year to
31 Aug 2011
 
(Unaudited)
(Unaudited)
(Audited)
 
GBP
GBP
GBP
Continuing operations
Revenue
-
-
-
Cost of sales
-
-
-
 
-
-
-
Administrative expenses
(18,266)
(62,435)
(71,449)
Administrative expenses - exceptional item
(125,346)
Loss on disposal of assets
(694)
-
(14,897)
Operating Loss
(18,960)
(62,435)
(211,346)
Finance income
-
3
4
Finance expense
-
-
-
Net finance expense
3
4
Loss before income tax
(18,960)
(62,432)
(211,342)
Income tax expense
-
-
-
Loss for the period from continuing operations
(18,960)
(62,432)
(211,342)
Earnings per share
Basic earnings per share - continuing and total operations
(0.01)p
(0.05)p
(0.37)p
Diluted earnings per share - continuing and total operations
(0.01)p
(0.05)p
(0.37)p

 

STATEMENT COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 29 FEBRUARY 2012

 
6 Months to
29 Feb 2012
6 Months to
28 Feb 2011
Year to
31 Aug 2011
 
(Unaudited)
(Unaudited)
(Audited)
 
GBP
GBP
GBP
Loss for the period
(18,960)
(62,432)
(211,342)
Other comprehensive income:
Changes in fair value of available-for-sale financial assets
-
-
(261,295)
Other comprehensive income, net of tax
-
-
(261,295)
Total comprehensive income
(18,960)
(62,432)
(472,637)

 

STATEMENT OF FINANCIAL POSITION
AS AT 29 FEBRUARY 2012

 
6 Months to
29 Feb 2012
6 Months to
28 Feb 2011
Year to
31 Aug 2011
 
(Unaudited)
(Unaudited)
(Audited)
 
GBP
GBP
GBP
Assets
Non-current assets
Property, plant & equipment
-
809
694
Available-for-sale financial assets
384,603
586,851
339,604
 
384,603
587,660
340,298
Current assets
Trade and other receivables
142,863
261,122
143,245
Cash and cash equivalents
33,432
27,264
6,580
 
176,295
288,386
149,825
Total assets
560,898
876,046
490,123
Equity
Capital and reserves attributable to equity holders of the Company
Ordinary shares
673,800
673,800
673,800
Share premium account
974,509
974,509
974,509
Retained earnings
(1,222,070)
(792,905)
(1,203,110)
Total equity
426,239
855,404
445,199
Liabilities
Current liabilities
Trade and other payables
134,659
20,642
44,924
 
134,659
20,642
44,924
Total liabilities
134,659
20,642
44,924
Total equity and liabilities
560,898
876,076
490,123

 

BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union, IFRIC interpretations and the Companies Act 2006 as applicable to companies reporting under IFRS. These accounts have been prepared under the historical cost convention, as modified by the revaluation of land and buildings and certain financial instruments.

ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS

The financial statements for the Company have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union for the first time for this year.

The results, assets and liabilities of the Company for the year ended 31 August 2011 together with the opening position of the Company at 1 September 2010, the date of transition to IFRS, have been restated in accordance with IFRS. The statutory financial statements for the year ended 31 August 2011 were prepared under United Kingdom Generally Accepted Accounting Practice and were reported on by the Company's auditors and delivered to the Registrar of Companies. The audit report on the financial statements was not qualified and did not contain a statement under s498(2) or s498(3) of the Companies Act 2006.

IFRS 1 `First time adoption of IFRS' permits companies to take advantage of certain exemptions from full retrospective adoption. The Company has not needed to adjust any balances for the income statement for the year ended 31 August 2011 and the statement of financial position as at 31 August 2011 under IFRS.

RESTATED AUDITED ANNUAL FINANCIAL STATEMENTS

Due to an error in the transmission of audited figures on the announcement released by the Company on 20 January 2012, the figures stated on that announcement were inconsistent with the audited results included in the Company's Annual Report. The audited figures to 31 August 2011 restated in this announcement, have been extracted from the Full Audited Accounts approved by Shareholders and filed at Companies' House on 7 February 2012. The full Annual Report can also be found here.

The Company is pleased to present the restated Final Results for the twelve month period to 31 August 2011 in accordance with IFRS:

CHAIRMAN'S STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2011

The chairman presents his statement for the period.

The Directors of the issuer accept responsibility for this announcement.

I am pleased to present the financial results for Alpha Prospects Plc for the 12 month period ending 31 August 2011.

The loss for the 12 month period is GBP472,637 (2010 - GBP386,261). This is mainly due to write downs in value of the company's investment share portfolio and outstanding loans. During the year shareholders' funds decreased from GBP493,438 to GBP445,199.

During the year the Board has continued to look for investment opportunities and we expect to announce further share stakes during 2012. In this regard Alpha will be looking to raise further funds during the coming year.

The Directors do not propose to pay a dividend for the period ended 31 August 2011.

In last year's statement I said the Company planned during 2011 to strengthen its board and in this regard we were delighted to have appointed Tim Baldwin to the Board in September this year. Tim is currently the Chairman of both AIM listed TXO Plc and Ram Active Media Plc. Tim has extensive knowledge of the oil and gas and mining sectors. He is also Chairman of Hill Street Investments Plc, which currently owns a 25.19% in the Company.

During the year Rob Painting stepped down from the Board and I would like to take this opportunity of thanking him for his help and guidance during the last three years.

On behalf of the Board I would like to take this opportunity of thanking the Company's professional advisors for their support and assistance throughout the year.

Steven Freudmann
Chairman

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2011

   
IFRS
UK GAAP
UK GAAP
   
2011
2011
2011
  Note
GBP
GBP
Turnover  
-
-
(200)
Administrative expenses  
(71,449)
(457,744)
(386,067)
Administrative expenses - exceptional item  
(125,000)
   
(196,449)
Operating loss  
(457,744)
(386,267)
Loss on disposal of investments  
(14,897)
(14,897)
-
Operating loss  
(211,346)
Finance income  
4
4
6
Finance expense  
-
-
-
Net finance expense  
4
Loss before income tax  
(211,342)
(472,637)
(386,261)
Income tax expense  
-
-
-
Loss for the year  
(211,342)
(472,637)
(376,261)
Other comprehensive income:  
Changes in fair value of available for sale financial assets  
(261,295)
Other comprehensive income, net of tax  
(261,295)
Total comprehensive income  
(472,637)

 

All amounts relate to continuing operations.

There were no recognised gains and losses for 2011 or 2010 other than those included in the profit and loss account.

EARNINGS PER SHARE

Basic EPS (pence) (0.37) (0.37) (0.37)
Diluted EPS (pence) (0.37) (0.37) (0.37)

 

BALANCE SHEET
AS AT 31 AUGUST 2011

 
IFRS
UK GAAP
UK GAAP
 
2011
2011
2010
 
GBP
GBP
GBP
GBP
GBP
Assets
Non-current assets
Property, plant & equipment
694
694
925
Available-for-sale financial assets
339,604
339,604
202,398
 
340,298
340,298
203,323
Current assets
Trade and other receivables
143,245
Debtors: amount falling due after more than one year
126,200
251,200
Debtors: amount falling due within one year
17,045
3,523
Cash and cash equivalents
6,580
6,580
49,235
 
149,825
149,825
303,958
Creditors: amounts falling due within one year
(44,924)
(13,843)
Net Current assets
104,901
290,115
Total assets less current liabilities
445,199
493,438
Total assets
490,123
Equity
Capital and reserves attributable to equity holders of the Company
Ordinary shares
673,800
673,800
532,334
Share premium account
974,509
974,509
691,577
Retained earnings
(1,203,110)
(1,203,110)
(730,473)
Total equity
445,199
455,199
493,438
Liabilities
Current liabilities
Trade and other payables
44,924
 
44,924
Total liabilities
44,924
Total equity and liabilities
490,123

 

The financial statements were approved and authorised for issue by the board and were signed on its behalf

Christopher Kenneth Foster Steven Freudmann
Director Director

 

EMPHASIS OF MATTER

Without qualifying our opinion we draw attention to Note 10 to the financial statements. In 2008 the Company made an investment, by way of an interest bearing loan of GBP250,000 to Alpha Consolidations Limited ("ACL"). Repayment of the loan is due on 31 October 2014. The terms of the agreement provide for interest to be rolled up and paid at the end of the term. In addition, the terms of the agreement also allow that if ACL is sold then the loan will become repayable in full by the purchaser. Alpha Prospects plc owns 20% of ACL and holds options over 100% of the remaining shares in ACL.

Repayment of the loan is dependent upon the generation of sufficient profits after tax by ACL by the repayment date. The directors believe that ACL's current activity should, in the medium term, produce sufficient profitability to allow for repayment of the loan to Alpha Prospects plc. However, as repayment of the loan is contingent upon the successful completion of purchase and sale contracts by third parties, significant uncertainty exists as to its recoverability. Under the circumstances, a provision of GBP125,000 has been made for the impairment of this loan in the financial statements.

Recoverability of the loan is not considered determinative as regards the Company's ability to continue as a going concern but due to the materiality of the loan, we draw attention to it.

In addition, the company holds an investment in Hill Street Investments PLC ("HSIP") with a carrying value at the Balance Sheet date of GBP281,409. HSIP's principal activity is investing in both listed and private companies. HSIP's largest single investment comprises shares in a listed company, Pathfinder Minerals Plc ("Pathfinder"), which shares have been suspended. For the reasons explained in Note 9 the board believe that the HSIP investment in Pathfinder neither was, at 31 August 2011, nor has now been, permanently impaired. Moreover the board is of the view that in the event that the investment in Pathfinder did become permanently impaired it would not permanently impair the value of the company's investment in HSIP.

Recoverability of the carrying value of the HSIP investment is not considered determinative as regards the company's ability to continue as a going concern but due to the materiality of the value of HSIP's investment in Pathfinder and the direct link to the value of Alpha Prospect plc's investment in HSIP, we draw attention to the matter.

The Directors of the Issuer accept responsibility for the contents of this announcement.

Enquiries:

ALPHA PROSPECTS PLC Christopher Foster +44 207 518 4300
RIVINGTON STREET CORPORATE FINANCE Fungai Ndoro/ Eran Zucker +44 207 562 3373