("Welney" or the "Company")
Audited Final Results
Chairman's Statement
The Board is pleased to present the results of
The recent year has been particularly challenging for the Company and circumstances have forced the Directors to review the Company's previous investments and strategic focus as a matter of some urgency. As a result of that review, the Directors are planning to dispose of the Company's initial investments in the recycling sector and have raised additional funds to allow the Company to continue with its strategy of investing in the recycling industry, although focused now on the recycling of rubber and plastics.
The background to today's announcement is as follows:
On
In
In this context, also in
However, it became clear to the Directors towards the end of 2014 that the operation of the baling machine was not going to be commercially viable for the Company. At around the same time, the Directors became aware that the funds required to develop ARL's recycling business could not be raised. In addition, the contract that ARL was expected to fulfil with a major airline was never started.
In light of this and the poor operational performance at B&B, on
The Directors have spent considerable time attempting to resolve the Company's problems with a view to stabilising the Company and providing a platform which could provide an opportunity for future growth in the recycling industry.
The Directors are now pleased to report that Semsa International FZC ("Semsa") has subscribed for £100,000 of 6% Convertible Unsecured Loan Notes 2016 (the "Loan Notes") of the Company. Subject to the approval of the Company's shareholders at a general meeting that will be convened as soon as possible, the Loan Notes will be convertible into a total of 100,000,000 ordinary shares in the Company, representing 6.08% per cent of the Company's issued share capital as enlarged by conversion. For every ordinary share converted, Semsa will be entitled to one warrant to subscribe for ordinary shares in the Company at a price of 0.5p per share.
The proceeds from the subscription for the Loan Notes will enable the Company to discharge its liabilities and provide the working capital required for it to continue to seek opportunities in the recycling and waste management sector.
As mentioned above, the Directors now plan to focus the Company's business on the recycling of rubber and plastics, with an initial focus on the recycling of tyres. To this end, the Company is in advance discussions regarding the disposal of ARL and B&B. The Directors expect to update shareholders on developments in this area shortly.
Chairman
PROFIT AND LOSS ACCOUNT for the year ended
| 2014 £ | 2013 £ *(Restated) | ||||||
| Administrative expenses | (75,278) | (85,085) | |||||
| (Loss)/gain on disposal of investments | (218,669) | 150,000 | |||||
| Impairment of investments | (1,025,575) | (123,000) | |||||
| Provision for amounts due from subsidiary | - | (196,986) | |||||
| Operating loss | (1,319,522) | (255,071) | |||||
| Reversal of interest charge | 11,179 | - | |||||
| Interest payable and similar charges | - | (27,991) | |||||
| Loss on ordinary activities before taxation | (1,308,343) | (283,062) | |||||
| Tax on loss on ordinary activities | - | - | |||||
| Loss for the year | (1,308,343) | (283,062) | |||||
| Earnings per share | |||||||
| Basic and diluted loss per share | (0.108)p | (0.032)p | |||||
| *The financial statements for the year ended The profit and loss account has been prepared on the basis that all operations are continuing operations. There are no recognised gains and losses other than those passing through the profit and loss account. |
BALANCE SHEET as at
| . | 2014 | 2013 | ||||||||
| £ | £ | |||||||||
| Fixed assets | ||||||||||
| Investment in subsidiaries | - | 315,000 | ||||||||
| Other investments | 2,675 | 162,000 | ||||||||
| 2,675 | 477,000 | |||||||||
| Current assets | ||||||||||
| Debtors | 5,850 | 5,850 | ||||||||
| Cash at bank and in hand | 173 | 33 | ||||||||
| 6,023 | 5,883 | |||||||||
| Creditors: Amounts falling due within one year | (57,042) | (147,955) | ||||||||
| Net current liabilities | (51,019) | (142,072) | ||||||||
| Creditors greater than one year: | ||||||||||
| Convertible loan notes | - | (200,040) | ||||||||
| Net assets/(liabilities) | (48,344) | 134,888 | ||||||||
| Capital and reserves | ||||||||||
| Called up share capital | 1,545,511 | 911,011 | ||||||||
| Share premium | 1,562,336 | 1,010,586 | ||||||||
| Loan note holders reserve | - | 61,139 | ||||||||
| Share option reserve | 132,240 | 132,240 | ||||||||
| Profit and loss account | (3,288,431) | (1,980,088) | ||||||||
| Shareholders' funds/(deficit) | (48,344) | 134,888 | ||||||||
The financial statements were approved by the Board of Directors on
Emphasis of matter - Going concern
In forming their modified opinion on the financial statements, the auditors,
The financial information contained in this announcement been extracted from the Company's Annual Report for the year ended
The directors of the Company accept responsibility for the contents of this announcement.
--ENDS--
Enquiries:
Tel: +353 (0)861734543
Peterhouse Corporate Finance Limited
Tel: 020 7469 0930
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: