Lombard Capital PLC - Final Results PR Newswire

Lombard Capital PLC

Final results for the year ended 31 March 2018

Chairman’s Statement

Dear Shareholders

During the year under review your Board has been working towards producing secure bond investments where the instrument is fully secured by re-insurance or by tangible assets. The work continues to progress and your Board expects to be able to make an announcement in the second or third quarter of the new financial year.

Post year end your directors have re-opened the 7.5% 2020 Unsecured Loan Note and to the date of these accounts, a total sum of £320,000 has been received and further subscriptions are anticipated before the closing date of 30 September 2018.

I look forward to the future with enthusiasm and thank all my colleagues and our professionals for their support and advice.

I also thank you all as shareholders for your continuing support. 

David Grierson
Chairman
Lombard Capital PLC

22 August 2018

The directors of Lombard Capital Plc accept responsibility for this announcement.


For further information please contact:

Brent Fitzpatrick
Tel:  07718 883813

NEX Corporate Adviser:
Alfred Henry Corporate Finance Limited
Nick Michaels:  020 7251 3762


Statutory Information

The financial information set out below does not constitute the Group’s statutory accounts for the year ended 31 March 2018 but is derived from those accounts.

The financial information has been extracted from the statutory accounts of Lombard Capital Plc and is presented using the same accounting policies, which have not yet been filed with the Registrar of companies, but on which the auditors, Jeffreys Henry LLP, gave an unqualified report on 22 August 2018. The audit report included the following modification:-

“Material uncertainty related to going concern

We draw attention to note 2 in the financial statements, which explains that the company is dependant upon ongoing fundraising  and forecast revenue streams to commercialise and develop its core businesses.  These events or conditions along with other matters as set forth in note 2, indicate that a material uncertainty exists that may cast doubt on the Company’s ability to continue as a going concern.  Our opinion is not modified in respect of this matter."

The Annual Report of Lombard Capital Plc for year ended 31 March 2018 is available upon request from the Company’s registered office at 19 Goldington Road, Bedford, England, MK40 3JY.


?Income Statement
for the year ended 31 March 2018


                                                                2018      2017

                                                                 GBP       GBP

                                                     Notes

Continuing operations:


Operating expenses                                         (340,268) (190,440)

Impairment of investments                                   (44,390)         -

Operating loss and loss before taxation                    (384,658) (190,440)

Taxation expense                                                   -         -

Loss for the year, attributable to owners of the           (384,658) (190,440)
Company

Loss per share attributable to owners of the Company           pence     pence
during the year

Basic and diluted

Total and continuing operations                          3    (11.1)     (7.1)



.

Statement of Financial Position
as at 31 March 2018


                                                              2018        2017

                                                 Notes         GBP         GBP

Non-current assets

Available for sale investments                             112,500     112,500

Current assets

Trade and other receivables                                      -       7,800

Cash and cash equivalents                                    2,154         622

Total current assets                                         2,154       8,422

Total assets                                               114,654     120,922

Equity

Share capital                                              194,116     193,223

Share premium                                              954,574     866,103

Share option reserve                                        80,300      13,160

Investment revaluation reserve                             100,184     100,184

Retained earnings                                      (1,563,469) (1,178,811)

Equity attributable to owners of the Company and         (234,295)     (6,141)
total equity

Current liabilities

Trade and other payables                                   348,949     127,063

Total equity and liabilities                             (114,654)     120,922




Statement of Cashflows
for the year ended 31 March 2018


                                                                  2018      2017
                                                       Notes       GBP       GBP

Operating activities

Loss before tax                                              (384,658) (190,440)

Share based payment                                             67,140         -

(Increase)/decrease in trade and other receivables               7,800         -

Increase/(decrease) in trade and other payables                221,886    78,597

Net cash flow from operating activities                       (87,832) (111,843)

Investing activities

Proceeds from sale of available-for-sale assets                      -    23,310

Net cash flow from investing activities                              -    23,310

Financing activities

Proceeds from issue of shares                                   89,364    86,487

Net cash flow from financing activities                         89,364    86,487

Net increase / (decrease) in cash and cash equivalents           1,532   (2,046)

Cash and cash equivalents at start of year                         622     2,668

Cash and cash equivalents at the end of the                      2,154       622
year/period

Cash and cash equivalents comprise:

Cash and cash in bank                                            2,154       622

Cash and cash equivalents at end of year/period                  2,154       622




Notes to the Financial Statements
for the year ended 31 March 2018

1 General information

Lombard Capital Plc is a limited company incorporated and domiciled in the United Kingdom.  The registered office is 19 Goldington Road, Bedford, MK40 3JY.

The principal Accounting Policies applied in the preparation of these Financial Statements are set out below.  These policies have been consistently applied to all the periods presented, unless otherwise stated.

2 Accounting policies

Basis of preparation

The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS), and IFRIC interpretations as adopted in the European Union and as applied in accordance with the provisions of the Companies Act 2006, and under the historical cost convention.

The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates.  It also requires management to exercise its judgement in the process of applying the Company’s accounting policies.  The areas involving a higher degree of judgement or complexity, or areas where assumption and estimates are significant to the Financial Statements, are disclosed later in these accounting policies.

The financial statements are presented in sterling (£).

Going concern

During the period, the Company made a loss of £384,658 and at the year-end had current liabilities of £348,949.  The cash balance at the year-end was £2,154, post year end the Company has generated £320,000 by the issue of loan notes, so at the time of signing of these accounts there are sufficient funds for the next 12 months and beyond.

The Chairman’s statement has explained the current fundraising activities, therefore, the directors have formed the opinion that with the revenue streams from bond issuances, the eradication of debt and the inflow of funds from the conversion of warrants, the Company will secure adequate funds for the working capital requirements of the Company in the foreseeable future.  Further, this will ensure that adequate arrangements will be in place to enable the settlement of their financial commitments as and when they fall due.

For this reason, the directors continue to adopt the going concern basis in preparing the financial statements. Whilst there are inherent uncertainties in relation to future events, and therefore no certainty over the outcome of the matters described, the directors consider that, based on financial projections and dependent on the success of their efforts to complete these activities, the Company will be a going concern for the next 12 months.

Changes in accounting policy

During the financial year, the Company has adopted the following new and amended IFRS and IFRIC interpretations that are mandatory for current financial year:


Amendments to IAS 7                  Disclosure Initiative

Amendments to IAS 12                 Recognition of Deferred Tax Assets for
                                     Unrealised Losses

Annual Improvements to IFRS standard Amendments to IFRS 12 Disclosure of
2014- 2016                           Interest in Other Entities



The impact of adopting the above amendments had no material impact on the financial statements of the Company.

The following standards, amendments and interpretations applicable to the Company are in issue but are not yet effective and have not been early adopted in these financial statements. They may result in consequential changes to the accounting policies and other note disclosures. We do not expect the impact of such changes on the financial statements to be material. These are outlined in the table below:

IFRS 5                                                     Non-current assets held for sale and discontinued operations

IFRS 7                                                     Financial instruments

IFRS 9                                                     Financial instruments

IFRS 10   (amended)                              Consolidated Financial Statements

IFRS 11   (amended)                              Joint Arrangements

IFRS 12   (amended)                              Disclosure of Interests in Other Entities

IFRS 14                                                   Regulatory deferral accounts

IFRS 15                                                   Revenue from Contracts with Customers

IFRS 16                                                   Leases

IFRS 17                                                   Insurance Contracts

IAS 1 (amended)                                    Presentation of Items of Other Comprehensive Income

IAS 16 & 41 (amended)                          Property, Plant and Equipment

IAS 19                                                     Employee benefits

Key estimates and assumptions

The Company makes estimates and assumptions concerning the future.  The resulting accounting estimates will, by definition, seldom equal the related actual results.

The only estimates and assumptions that may cause material adjustment to the carrying value of assets and liabilities relate to the valuation of unquoted investments.  These are valued in accordance with the techniques set out in the accounting policy for ‘Available for sale investments’ on page 15.

Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax is the tax currently payable based on taxable profit for the period.  Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.  The Company’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 the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interest in joint ventures, except where the group is able to control the reversal of the temporary difference and it I probable that the temporary difference will not reverse in the foreseeable future.

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 the temporary difference will not reverse in the foreseeable future.

Current and deferred tax assets and liabilities are calculated at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the balance sheet date.  Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the profit or loss income statement, except where they relate to items that are recognised in other comprehensive income in which case the related deferred tax is also charged or credited directly to equity.

Segmental reporting

A segment is a distinguishable component of the Company’s activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Company’s chief operating decision maker to make decisions about the allocation of resources and assessment of performance and about which discrete financial information is available.

As the chief operating decision maker reviews financial information for and makes decisions about the Company’s investment activities as a while, the directors have identified a single operating segment, that of developing secure bond investment.

Financial assets

The Company’s financial assets comprise investments held for trading, associated undertakings, cash and cash equivalents and loans and receivables.

Available for sale Investments

Investments are initially measured at fair value plus incidental acquisition costs. Subsequently they are measured at fair value in accordance with IAS 39.  In respect of quoted investments, this is either the bid price at the period end date of the last traded price or the last traded price, depending on the convention of the exchange on which the investment is quote, with no deduction for any estimated future selling cost.  Unquoted investments are valued by the directors using primary valuation techniques such as recent transactions, last price and net asset value.

Investments are recognised as available-for-sale financial assets.  Gains and losses on measurement are recognised in other comprehensive income except for impairment losses and foreign exchange gains and losses on monetary items denominated in a foreign currency, which are recognised directly in profit or loss.  Where the investment is disposed of or is determined to be impaired the cumulative gain or loss previously recognised in other comprehensive income is reclassified to profit or loss.

The Company assesses at each period end date whether there is any objective evidence that a financial assets or group of financial assets classified as available-for-sale has been impaired.  An impairment loss is recognised if there is objective evidence that an event or events since initial recognition of the asset have adversely affected the amount or timing of future cash flows from the asset.  A significant or prolonged decline in the fair value of a security below its cost shall be considered in determining whether the asset is impaired.

When a decline in the fair value of a financial asset held as available-for-sale has been previously recognised in other comprehensive income and there is objective evidence that the asset is impaired, the cumulative loss is removed from other comprehensive income and recognised in profit or loss.  The loss is measured as the difference between the cost of the financial asset and its current fair value less any previous impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand and current and deposit balances deposits at banks, together with other short-term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. 

Equity

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.  Equity instruments issued by the Company are recorded at the proceeds received net of direct issue costs.

The share premium account represents premiums received on the initial issuing of the share capital.  Any transaction costs associated with the issuing of shares are deducted from share premium, net of any related income tax benefits.

The investment revaluation reserve represents the difference between the purchase costs of the available-for-sale investments less any impairment charge and the market value of those investments at the accounting date.

Retained earnings include all current and prior period results as disclosed in the statement of comprehensive income.

Financial liabilities

Financial liabilities are recognised in the Company’s balance sheet when the Company becomes a party to the contractual provisions of the instrument.  All interest related charges are recognised as an expense in finance cost in the income statement using the effective interest rate method.  The Company’s financial liabilities comprise trade and other payables.

Trade payables are

3 Earnings per share

The basic and diluted earnings per share is calculated by dividing the loss attributable to owners of the Company by the weighted average number of ordinary shares in issue during the year.


                                                                 2018      2017
                                                                  GBP       GBP

Earnings

Loss for the purposes of basic and fully diluted loss per   (384,658) (190,440)
share

Number of shares

Weighted average number of shares for calculating basic and
fully diluted                                               3,455,865 2,682,971
earnings per share

                                                                 2018      2017

                                                                Pence     pence

Earnings per share

Basic and fully diluted loss per share                         (11.1)     (7.1)



In 2017 the Company issued up to £100,000 warrants, during the year the Company received notice from the holders of 75,000 warrants to convert them into 75,000 ordinary shares for a consideration of £7,500.